2016 LR4 prices paid for lease

[jwest]

Also, never put down cash at closing as your insurance would only pay off the lease in the unfortunate case of an accident, not the cap cost causing you to lose the down payment.

I don't least vehicles but how would someone NOT put down cash when most deals I see require some amount ? Is there a different way to pay it or write the contract that retains full msrp for insurance purposes?

 

[Ksyrahsirah]

I just bought a 2015 brand spanking new LR4 HSE Lux and they too said due to demand there's no wiggle room in the price, but we managed to talk them down to taking 5% off the price. We brought with us some consumer report graphs suggesting what the rest of the country is paying. I'm in the Chicago market. The car I got was literally just delivered to the lot that morning, I bought it before they could even get the transportation wrapping off the inside and outside.

Hope this helps!

 

[ttforcefed]

im pay 959 a month for 39 months so I was totally asleep when I leased the car. im basically paying 42K for a 62k which makes no sense - I shld have bought the car.

 

[alexcorral]

You can still buy it when your lease is done

 

[ttforcefed]

yeh but it doesn't make sense to
39 * 959 = 37.4
4.5K at signing and my buyback is 32k. so that wld mean I paid 74K for a 62k car. Had I paid cash it wld have cost me 62k * 1.08 for taxes = 67K.

 

[alexcorral]

yup... you were asleep

 

[ttforcefed]

that's being far too kind!

 

[jwest]

yeh but it doesn't make sense to
39 * 959 = 37.4
4.5K at signing and my buyback is 32k. so that wld mean I paid 74K for a 62k car. Had I paid cash it wld have cost me 62k * 1.08 for taxes = 67K.

What state are you in where vehicle sales tax is 1.08% ? I'll bet you pay the tax in another way though.

In NC it's 3% on vehicles, 6.75% on standard sales tax but each year during registration renewal, the "property tax" is about 1% again, each year, based on book value so your first registration would be normal fees plus about $620, next year, almost $600, next year, 5 something. It ads up.

you say if you had "paid cash"...well, I don't think you would have done a bad lease deal had you also been in the position to pay "cash". Therefor, an auto loan would cost at least 3% or so, plus any taxes not up front.

Pay cash, sure, then your cash is ******* only "earning" the 3% you could have saved over 5 years.

I can make a lot more than 3% on an invested $62k in 5 years! Cash is not always the "cheapest" plan when interest rates are so low.

Of course a lease is almost never a good plan if there's a chance you want to keep the vehicle past the 3 year range.

 

[alexcorral]

What state are you in where vehicle sales tax is 1.08% ? I'll bet you pay the tax in another way though.

In NC it's 3% on vehicles, 6.75% on standard sales tax but each year during registration renewal, the "property tax" is about 1% again, each year, based on book value so your first registration would be normal fees plus about $620, next year, almost $600, next year, 5 something. It ads up.

you say if you had "paid cash"...well, I don't think you would have done a bad lease deal had you also been in the position to pay "cash". Therefor, an auto loan would cost at least 3% or so, plus any taxes not up front.

Pay cash, sure, then your cash is ******* only "earning" the 3% you could have saved over 5 years.

I can make a lot more than 3% on an invested $62k in 5 years! Cash is not always the "cheapest" plan when interest rates are so low.

Of course a lease is almost never a good plan if there's a chance you want to keep the vehicle past the 3 year range.

Sales tax is 8%. He multiplied by 1.08 to add 8% to the sale amount.

He is comparing his cash outlay of $74K through the course of 3 years (with $32K at the end to buy back the LR4) to the upfront cost of $67K had he paid cash.

He would pay $7K more over 3 years, which is his grief, but that's the cost of keeping your money and using someone else's. If you think you can do better than that on your own (invest $62K, withdraw $1K a month for 3 years to cover lease payment and make $7K in profits) go for it, you'll save money.

Paying cash is almost always cheaper (i got 0% APR on a 2015 F150). What you need to figure out is what you would do with that money if you didn't give it to the dealer and if you can come out ahead or not.

 

[alexcorral]

BTW Rycknf355, don't dismiss the buyback option yet. It's not about total paid for the LR4 it comes down to value of the LR4 at lease end: if it's worth more than $32K on resale, go for it. You have already paid the cost of the cash you "borrowed". If it's not worth more than $32K, let it go and get a new one. This time try to get a better deal