[Author Prev][Author Next][Thread Prev][Thread Next][Author Index][Thread Index]

*To*: quattro@coimbra.ans.net*Subject*: Leasing*From*: Wendell_Gurley@notes.toyota.com*Date*: Mon, 7 Apr 1997 12:25:11 -0700*cc*: GY3WSX@VM.SC.EDU*Sender*: owner-quattro@coimbra.ans.net

Wendell Gurley 04/07/97 12:25 PM Daniel Hussey inquired about calculating how much an A4 lease would be. Here is some helpful lease info, as the answer to the question is: it can cost anything you want it to be based on a few factors. Working in the car business, here is what you should watch: 1) Selling price of the car: negotiate this first and separately, and chisel this figure as low as you can 2) Determine the Residual Value and Term: compare Audi/VW Credit to your credit union, bank etc. figure should be as high as possible. For example, after 24 months, if the $25,000 car your buying will be worth $15,750, the residual value is 63%. 3) Determine the Rate Factor: this figure is the equivalent of an APR rate for normal financing. It will be a factor such as .00245, and is the cost for borrowing money. You want this figure as low as possible. To convert the figure to APR for comparisons, multiply the number by 2400. For example, .00245 x 2400 is 5.88% APR. 4) Use the calculation method below and you can run your own "what ifs" without needing a financial lease calculator: Selling Price: $25,000 get your best price (less trade-in) 0 (maximize your trade-in) (less downpayment) 0 (determine how much up front cost/downpayment you want) ----------- Balance to finance: $25,000 (Less residual value) (15,750) (This is the 63% residual value after 24 months) _______ $ 9,250 Divide by # months you are leasing: 24 ______ Basic lease payment: $385.42, but now you must add cost of financing and taxes Don't be confused here, for this portion you add the selling price to the residual value! Selling Price: $25,000 Plus Residual value: 15,750 ------------- Total: $ 40,750 Multiply by the service factor (in this case .00245) = $99.84 Add the Basic Lease Payment ($385.42) and the Cost of Financing ($99.84): $485.25 Now, just multiply this total by your state's sales tax, say 6%: $485.25 x .06 = $29.12 Add: Basic Lease Payment $385.42 Cost of Financing 99.84 Sales Tax 29.12 ----------- Total Lease Payment: $514.38 This formula will work for any sales price, lease term and finance rate. Just remember to plug in the right figures and when comparing one deal to another, make sure factors are comparable. For instance, dealers and manufacturers quote low rates by increasing the down payment, extending the term, etc. Remember, when financing through a dealer, they usually mark up the financing a few points before the quote the rate to you! Shop your credit union and save big money.

- Prev by Author:
**Intro comments** - Next by Author:
**ads** - Prev by thread:
**More or less answering my own question concerning 0W-30 weight oil** - Next by thread:
**Solved Coupe GT Stop** - Index(es):