Best lease deal so far?
- Thread starter marcus321
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what kind of deal are you referring to?
On year end tax savings, he's referring to the fact that currently (for YE 2017 tax returns) you can deduct state sales taxes paid from your federal gross income, or a tax deduction. The new Trump plan has eliminated the deduction for state sales taxes beginning in 2018, although given it back in other areas.
On a lease you are still paying taxes monthly, but on a prorated share of the part of the principal that you are financing - meaning only a portion of the taxes you'd pay if you bought the whole car.
I wonder what predicaments owners will be in 3 years from now? If you love your car, and they are no longer made and you have a residual buyout of $118k and your car is worth $90k What will you do????? I basically paid cash, so I figured if it depreciates too much, hold it till you die...... and enjoy it. Or be buried in it??
On a lease you are still paying taxes monthly, but on a prorated share of the part of the principal that you are financing - meaning only a portion of the taxes you'd pay if you bought the whole car.
I wonder what predicaments owners will be in 3 years from now? If you love your car, and they are no longer made and you have a residual buyout of $118k and your car is worth $90k What will you do????? I basically paid cash, so I figured if it depreciates too much, hold it till you die...... and enjoy it. Or be buried in it??
When we first read this thought you said car is worth $118k and your residual buyout is $90k
But if reversed like you said, are you allowed to renegotiate with the dealer or do you have to pay the $118k?
In my experience, I have not had success dealing with the lease company trying to buy a car for less than the stated residual value. I leased my daughter a Subaru years ago, and she loved the car and wanted to keep it, but the residual was $15K and the car was worth $12K, so made no sense to buy it. I tried to buy it for less but the leasing company had no interest. They took the car back and probably sold it for $8500 at a wholesale auction....... Remember, the leasing company "owns" the car, which in this case is likely to be Acura Financial. It has also been my experience that the residual values are usually spot on in 3 years, so, like I said, it will be interesting to see where it all ends up.
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unfortunately with acura, its a take it or leave it price.
I got lucky many years ago..leased a 06 mdx from a factory dealer..and come lease term found out that loan was sold to a bank/finance company near albany...long story short I was able to reduce buy-out by 2k....so miracles do happen, and leases are traded/sold like so much debt...
Every car manufacturer is different when it comes to renegotiating lease buyouts below residual.
I've had great success with BMW. Like most leasing companies - BMW does not renegotiate residual buyout prices. It is take it or leave it.
However, at least with BMWs, they do let dealers buy your lease car for wholesale auction prices. So what I do is email a bunch of local dealers and ask them what they would be willing to sell my car for(after they buy it from BMW financial). Dealers will try to make anywhere from 50 bucks to 2-3K. Trick is to spam a bunch of dealers and negotiate.
I've purchased my last two BMWs off lease for 6k-7K under residual.
M3 convertible residual was 50K - purchased for 43K. 535 residual was 40K, purchased for 33.8K.
Just wanted to make you guys still looking for cars aware, Acura has reduced the residual values 2%. This means at 5k miles a year the updated residual value for a lease is 54%.
Good Luck to those still looking!
Good Luck to those still looking!
I knew that this will happen... next will be no more 30K rebate allocations for those that took the chance and gamble now will paid bit more... Thank you for info glad I pulled the trigger !!!:smile:
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it happens every 3 months
We found a $163k pretty base car, what is a fair price for the car? Dealer will only move on the $30k incentive.
The price tag sounds similar to what mine is with only tech pkg, XM, and parking sensors. Assuming it is a new car, you should be able to push and get another $6k off in dealer discounts if the dealer is willing -- putting it in the high 12xk range.
Hello all. I will be looking at an NSX next week, for which I will be trading an R8. Does it make sense to trade a car in if I decide to lease? Is it like making a down payment where if the car gets stolen or totaled, that money is lost? If that is the case I would buy the NSX.
Thanks in advance,
Spiro
Thanks in advance,
Spiro
Yes trading in the R8 would be like making a down payment. However there are many different scenarios and depending on what you want it may be a good idea or a bad idea. Do you own the car outright or is it financed? If fincanced are you upside down on the car, breakeven, or do you have equity on a trade in value?
If you are trading in on the lease and you own the car outright one thing to consider is that there is a maximum amount you can out as a down payment on a lease. Typically that amount is around 20% of MSRP. Where this becomes tricky is since the $30,000 from Acura is considered a down payment or cap reduction, on a $180,000 MSRP car you can only put down an additional $6k. The rest of the amount of the trade in would be a check cut back to you. You also must consider that, depending on the value of your car, this can reduce or even eliminate any sales tax you might pay on the lease.
Acura does also have a one pay lease option which allows you to pay the entire lease up front in one big payment. This saves you money as you will not be paying any interest because there is almost no risk to the lender. At the 0.0018 money factor currently on leases that’s roughly a 4.3% interest rate. Which means the one pay lease can be a very cheap option. The obvious downside here is that it can be seen as higher risk than standard leasing as standard leasing has built in GAP insurance. Since you don’t owe anything on the lease the insurance company will simply pay fair market value and we all know how awful that number usually is.
Purchasing would always be an option and if you do own your car outright and not owe anything on it that I would say typically this is the safer route and one more people would elect to go with.
In the end it all depends on your specific scenario and what you are looking for. Do you want the lowest possible payments now? Do you want a nice fat check back to you to go invest, remodel the kitchen, or put into some other car? I’d be happy to discuss more with you over the phone sometime as it may be easier to go into more detail and talk about your specific situation and answer any questions you may have. If so just email me [email protected]
Best of luck in your search! You will love this car transitioning from the R8!
Wow! Lots of info...thank you David. I do have a loan on the R8 but figure to have close to $50K equity. The thought of a check coming back is interesting. The car I am looking at is 200K so I guess I would get $40K back or be close to paying the entire lease.
I have to crunch some numbers to see where I would be with both scenarios after 3 years if I traded the car in or sold it.
I may email you to check my numbers if that's OK.
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Lots of great info thank you David! I do have a loan on my R8 but have about $50K in equity. The NSX I am looking at is $200K,so $10K would go toward the down payment. The idea of getting a check for $40K is interesting. I will have to crunch some numbers to see where I would be after 3 years if l had bought the car and then sold or traded it at that time vs. what I would have paid with a lease.
l may email you to check my figures if that is OK.
l may email you to check my figures if that is OK.
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I will be going to check out/negotiate on an NSX in the next few days. Have the money factor and residual changed significantly? On a 36 month/5,000 mile lease are we still looking at .0018 MF and 54% residual?
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edit, these are for 2018.
56% for 5k.
54% is for 10k
56% for 5k.
54% is for 10k
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Keep in mind, the $5K down include 1st pyt, reg/ lic fees and taxes on lease. All of the $5k is a write off as well as 2 add pyts for tax year 2016...JM2C...I could be wrong...:tongue:
Did the residuals just go back up again? I thought dshinke21 just mentioned a few post above that the residuals had just dropped 2 percentage points this month (54% for 5k).
