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Discussion Starter #1 (Edited)
Hello all,

Just have a question about buying a lease after the term. Not sure how great/terrible of a deal I got but I placed an order for a 16 scat pack right when the order banks opened in 2015 car arrived with my name on it and with all the excitement it was pretty much signing and drove off. Love the car to the point that I might consider buying it out. This would be first lease that I even thought about going this route as all previous cars just leased with a comfortable monthly payment, returned the car after 3 years and that's that.
I am just trying to figure out if the numbers are worth it and where this extra money that is adding up is coming from.
Any help would be appreciated

1000 out of pocket for first payment/fees

adjusted cap - 40549.33
residual val. - 28546.40
depreciation - 12002.93
rent charge - 6442.39
MF - .00254
payments with tax - 548.24

purchase at lease end - 28546.40

Now if the car is 40549.33 - 19736.64 ( total mo. payments) = 20,812.69 + 7% (FL tax) = $22,269.58 where is the other 6k coming from?
 

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If you look at your breakdown, I think you will see your answer... "Rent Charge".

Your lease payment equated to financing the depreciation, the rent charge imposed by the dealer, as well as a small amount of interest.
 

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Hello all,

Just have a question about buying a lease after the term. Not sure how great/terrible of a deal I got but I placed an order for a 16 scat pack right when the order banks opened in 2015 car arrived with my name on it and with all the excitement it was pretty much signing and drove off. Love the car to the point that I might consider buying it out. This would be first lease that I even thought about going this route as all previous cars just leased with a comfortable monthly payment, returned the car after 3 years and that's that.
I am just trying to figure out if the numbers are worth it and where this extra money that is adding up is coming from.
Any help would be appreciated

1000 out of pocket for first payment/fees

adjusted cap - 40549.33
residual val. - 28546.40
depreciation - 12002.93
rent charge - 6442.39
MF - .00254
payments with tax - 548.24

purchase at lease end - 28546.40

Now if the car is 40549.33 - 19736.64 ( total mo. payments) = 20,812.69 + 7% (FL tax) = $22,269.58 where is the other 6k coming from?
Many people hate leasing. I do think it's a great alternative, and it's not always about the numbers. I use a much simpler approach to "calculations" and I'm not going to debate it.

Yes, bottom line is you pay more in a lease if you were to buy it. But it is worth it to find out if the car has any issues, or issues you don't like, or maybe needs or taste change. Nothing wrong with that, if you are willing to pay for it. The way I see it, it's no different then how people sell their late model car for another one.

To answer your question, this is how I will break it down using your example. You will normally pay $2K more to buy out a lease vs, buying the car from the start. They got to make $$ and are no dummy so it's structured that way. So how about the $4K? Right now you should get $4K off on a Challenger. Especially if it's a 2016, if not a bit more.

I would negotiate the lease deal, incase you do want to buy. Use the same calculation and take $4K off the top. And know that you will pay more vs traditional financing.

P.S. If are are buying a 2017 Honda Accord EX 4 cylinder CVT in silver, I would tell you to fight for the last $200. But this is different. If it's the car you want, get it. You will love it.

I know I paid more for my PCP because it was ordered. I "had to" pay a bit more for their tint, fabric protection, etc. But I ordered my car exactly the way I wanted it. In the end, that's what it is about. Yes, money is money. But you are getting an awesome $40K Challenger. Enjoy it.
 

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There ia absolutely nothing good about leasing a car unless it is a business write off. The dealer always wins big on a lease. You pay to borrow a car for a couple of years, and the dealer gets the car back to sell again and you pay for them to fix it up after your done with it. Win Win Dealer and your left with No car and No equity for a trade.
 

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The real question is if you can find a used 2016 Scat Pack for $28,500 and I suspect you can't that is in very good condition. If you can't then it is a very good deal.
 

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Many people hate leasing. I do think it's a great alternative, and it's not always about the numbers. I use a much simpler approach to "calculations" and I'm not going to debate it.

Yes, bottom line is you pay more in a lease if you were to buy it. But it is worth it to find out if the car has any issues, or issues you don't like, or maybe needs or taste change. Nothing wrong with that, if you are willing to pay for it. The way I see it, it's no different then how people sell their late model car for another one.

To answer your question, this is how I will break it down using your example. You will normally pay $2K more to buy out a lease vs, buying the car from the start. They got to make $$ and are no dummy so it's structured that way. So how about the $4K? Right now you should get $4K off on a Challenger. Especially if it's a 2016, if not a bit more.

I would negotiate the lease deal, incase you do want to buy. Use the same calculation and take $4K off the top. And know that you will pay more vs traditional financing.

P.S. If are are buying a 2017 Honda Accord EX 4 cylinder CVT in silver, I would tell you to fight for the last $200. But this is different. If it's the car you want, get it. You will love it.

I know I paid more for my PCP because it was ordered. I "had to" pay a bit more for their tint, fabric protection, etc. But I ordered my car exactly the way I wanted it. In the end, that's what it is about. Yes, money is money. But you are getting an awesome $40K Challenger. Enjoy it.
Huh, come again? You paid more for an ordered car, why? Pure profit for the dealer as it's only in the lot for a day or two after delivery. I've always received a larger discount on an ordered car. Stock vehicles can sit for months while being floor planned.
Tint and fabric protection on an ordered car, I've never had them do anything to any of my ordered cars to mark up the price.
Unless you own a business and get a real value of leasing it's always a win for the dealer and a big loser for the user. I own two separate businesses and have company vehicles but still prefer to own and not lease. Why have to worry if you drive over a given mileage or have a ding or dent or a smudge inside? You may do as you wish and make the numbers seem to work for you but at the end of the lease you own nothing and have nothing to show for all of your hard earned money.
 

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Discussion Starter #8
The real question is if you can find a used 2016 Scat Pack for $28,500 and I suspect you can't that is in very good condition. If you can't then it is a very good deal.
Currently def not. But I still have a year left on the lease. I am just trying to see if it is even worth thinking about buying it or not. Mainly because I know everything about the car history and only drive about 300mi a month = super low miles. work commute is only about 10mi round trip.
 

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Discussion Starter #9
Thanks for the replies.

So for the sake of argument lets say the car is worth less than the pay off. Can that be negotiated?
 

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I've never seen a "rent charge" on a lease before.
I think that's like a "junk fee" when you're financing a house.....something you don't want to pay.
 

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Thanks for the replies.

So for the sake of argument lets say the car is worth less than the pay off. Can that be negotiated?
Yes the "residual" (what they say the car is worth at the end of the lease) CAN be negotiated, and you should!
 

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The residual value is just an educated guess what the car will be worth when the lease expires. There are many factors that can influence the actual value 2 or 3 years in the future. As a starting point with your negotiation, look up the value on Kelly Blue Book. It may actually be less than the estimated residual value.
 

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Huh, come again? You paid more for an ordered car, why? Pure profit for the dealer as it's only in the lot for a day or two after delivery. I've always received a larger discount on an ordered car. Stock vehicles can sit for months while being floor planned.
You are correct. In my case, it was the only dealership in my city that is willing to work with me to order it. The others looked at me like I was crazy to even suggest that. Or that PCP was even available. And I'm talking about the managers too.

I did get some discount. I think like $1,500 because of Costco, and I don't recall the published incentive at the time. I could take another Challenger on the lot and maybe get $4,600 off MSRP. But that's not what I want.

There was no 2nd choice option. PCP to the exact spec.

The point of my reply is not to say I got a great deal, I didn't. It was for the OP that if this car is exactly what you want, and can afford it, go for it. Is not all that tragic to pay a bit more. I know that statement can get interpreted wrong. But I hope some of you will get the point.
 

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Too often they only want to sell what's on the lot so they get their money, NOW.
Anything done now is after the fact so just go forward and enjoy.
 

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If you lease from Chrysler there is NO negotiation on the purchase price at end of lease...



If you total the purchase price and what you paid in monthly payment including anything down..if your total of that is close to MSRP or less you did ok.....imo assuming reasonable miles like 12k or so...
 

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Leasing will never be a GOOD deal, if you intend to purchase at the end. If it makes it any more palatable, think of it as being stuck in a (very) high interest loan for the first 3 years. Now that you have some equity built up, you can re-negotiate for a normal rate loan for the remainder.

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