Lease payment

[baby_hummer]

I just returned from the dealership, and they quoted me a lease payment of $610/month for 48 months, $640/month for 36 months with 12K miles.

I ordered the Lux package with tubular assist steps. Total price came to $35K with another $2K for tax.

Needless to say, I was a little surprised, considering the payment is comparable to an H2. But apparently, because it's a hot new vehicle, GMAC is not offering any special incentives or financing. Ouch.

[baby_hummer]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">At 36 payments you are paying $23,040. Using your $37,000 total cost, your residual is only $13,960 or 38%????? </div></BLOCKQUOTE>

While the rate I was quoted today might have been too high, you can't use this equation: $37K - (Payment x 36 months) = Residual.

The dealership is loaning you money, so there is an interest rate (borrowing cost) included in the payment quote. For 36 months, the residual is probably closer to 50% or $18.5K (let's hope), so you'd be paying $4540 in interest over the term.

However, in every scenario I've done thus far, buying seems to be the better option.

[MisterE]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Leasing information I got from reliable source:
A 36 month lease with 12k miles per year you are at $449.26/mos with $1177.96 due at signing.

Does this sound right?

This is how I figured out my rough payment:As I figured it out:
MSRP 33715.00 GMS 29745.08 with 3 year lease 12K miles 53% residual value

so GMS 29,745.08 - Residual 17,868 (MSRP*53%) = 11,877.08 Lease Amount
11,077.08 + 1,784.70 (taxes on GMS price) = 13,661.78 Lease Amount (estimated)
13,661.78 / 36 Months = $379.49 per month


Now I know that there will be interest and some other fees but 80.00 per month plus 1,200 out of pocket.

Any thoughts would be a helpful! </div></BLOCKQUOTE>

Thanks to all your comments have been helpful. However even if I factor in 4% on the amount (higher then what my credit union offers) I still come out at 403.00 per month. Ok, I know we are not apples to apples since this isn't a loan but I'm still 46.26 per month less then what I was quoted. 36 payments * 42.26 = 1521.36+1200 out of pocket = 2721.26 I can't really account for.

[lexpro]

The money factor is being marked up by the dealership....ask them for the money factory they are using to determine your lease...