Help me negotiate a lease

stussy5555

stussy5555

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Dec 12, 2007
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I am trying to negotiate a lease for a Jaguar XF SuperCharged, thanks to a previous thread I started asking for ideas on hot cars under $100K.

So anyway, I currently have a 2008 Toyota Tundra Double Cab XSP, 12,000 miles on it, its trade in value to a dealership on KBB is $26-28K, and I owe $30K. With that information, here is what Jaguar is offering me first crack:

Our book is showing the Tundra between 20,000-25,000, I put it in at $25,000 and number came to $1240 and at $28,000 it is $1150

XF details:
MSRP $64,475
LEV% 37%
Expected Mileage 12,000
Mileage rate .18
Lease End Value $23855.75
Lease Term 39 months
Initial cap Cost $54,475
Lease Factor .000265
Base Monthly $1164
Total Monthly $1240
Due at Start $1407.02

I really have no idea how to negotiate this thing, what are the important factors to consider? Is the initial cap cost of $54,475 a good deal? I have spoke to others who have leased XF Supercharged and they are paying anywhere from $850/mo to $1150/mo. with no money down.

I dont think the deal above is good one but its hard to go back to them and negotiate without understanding what to negotiate.

Thanks for any help.
 


I've never really negotiated a lease so I can't help you there, but is the expected mileage you listed correct, 12,000? Doesn't seem like very much for just over 3 years.
 
few things:

1) you severely limit your options when trading a vehicle, if they can't make the margin they want on the car they'll simply devalue your trade. HOWEVER- also factor in at present market conditions dealers do not want inventory sitting on their lots, especially for a different brand. That is- a Jag dealer isn't going to sell your tundra- so trade in blue book goes out the window in favor of what they're going for at auction. You can go to some car forums and look for recent MANHEIM aunction pricing on your exact tundra to find out what this climate is like- but candidly w/ the incentives Toyota and others have out on Trucks, and given that most people who buy trucks finance them (contractors, those using it for work, etc) often new will be a better value just due to super low financing rates and thus the secondary market and of course your Tundra's value also falls.

2) Don't put anything down on the lease.

3) Jaguar XF Lease Questions - CarSpace Automotive Forums - take a look here at what others are paying currently.
 
dangerdog said:
I've never really negotiated a lease so I can't help you there, but is the expected mileage you listed correct, 12,000? Doesn't seem like very much for just over 3 years.
Click to expand...

unless he's getting absolutely fucked that's 12k per year.

Standard lease mileages are 10/12/15k for a car like this, dipping to 5000/7500 as you get into higher end. (Porsche, Ferrari, Lambo, etc where they're expecting it's a 2nd (3rd/4th/etc) car).
 
Sonny Forelli said:
unless he's getting absolutely fucked that's 12k per year.

Standard lease mileages are 10/12/15k for a car like this, dipping to 5000/7500 as you get into higher end. (Porsche, Ferrari, Lambo, etc where they're expecting it's a 2nd (3rd/4th/etc) car).
Click to expand...

My bad, that would make more sense :)
 
I was always told if you have to put money down for a lease, then walk away. But if you must lease a Jag, that is all you should do, since they are crap english products.
 
First thing I would do is go to a nearby Carmax and get a free appraisal. They give you a 7 day offer on your car. Now you know at bare minimum what your car is worth.

If you have good credit you should ask for no down payment (make sure you purchase gap insurance btw), also plan out how much you really drive per year. Leases are like cell phone plans, the second you are over your minutes/miles they will rape your candy ass. That said you also don't want to overdo it as its factored into the pricing.

Last, make sure you don't seem too excited about the car. Mention its main competiton, like well BMW offered me this and that etc for the M5. Even if your heart is sold on this car don't let them know. We're in a recession right now, car sales are down across the board, you should take advantage of the leverage right now and use it.
 
papajohn56 said:
yeah seriously leasing is the biggest waste of money on the planet, next to renting an apartment if you have the cash for a down payment. if you can't afford the nice car, don't buy it.
Click to expand...

I disagree. Leasing is VERY convenient if you want to drive a new car every 3 years. Yes, you never own the car.. but when you buy you own shit until you make your last payment. And then you are stuck with a car that you need to sell and take a HUGE depreciation hit.

My advice is to lease a slightly used car.. say 2k to 5k miles on. The depreciation hit would have been absorbed by the previous owner.

I dont know about jaguars but with all my leased BMWs EVERYTHING is included... even oil changes. Nothing to worry about for the life of the lease.
 
just saw the price of the Jag you want 64k???

do you really like it that MUCH? there are a ton of better cars in my opinion for that price.
 
fvaldes said:
I disagree. Leasing is VERY convenient if you want to drive a new car every 3 years. Yes, you never own the car.. but when you buy you own shit until you make your last payment. And then you are stuck with a car that you need to sell and take a HUGE depreciation hit.

My advice is to lease a slightly used car.. say 2k to 5k miles on. The depreciation hit would have been absorbed by the previous owner.

I dont know about jaguars but with all my leased BMWs EVERYTHING is included... even oil changes. Nothing to worry about for the life of the lease.
Click to expand...

all you get out of a lease is usage. if you own the car you can sell it or trade it and get a huge chunk off of the cost of the next car, rather than paying a lease and never owning it. and what's the point in getting a new car every 3 years?
 
fvaldes said:
there are a ton of better cars in my opinion for that price.
Click to expand...

I agree. Get a Beemer, a Lexus, or better yet, wait until the new E-class becomes available in the US. They'll be properly made with decent engineering. The only thing that's better about the Jag is the relatively sensational interior.
 
papajohn56 said:
all you get out of a lease is usage. if you own the car you can sell it or trade it and get a huge chunk off of the cost of the next car, rather than paying a lease and never owning it. and what's the point in getting a new car every 3 years?
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that is not exactly true an..

with a lease your monthly payments are lower than when you buy because as you said, you are paying to use it. With a good lease you can pay about 33% less monthly than when you buy the car so at the end you still have money saved.. about the same as if you bought the car and at the end had sold it for something.


The point is having a new car every 3 years is.... none actually... just doing what you love. If you love cars like i do there is no point needed. You only live once and if you are into something... why not do it?


at the end..money wise... buying a car or leasing a car will both lose you money. Depreciation is a bitch
 
there is ONE main point of leases- and it hasn't yet been mentioned.

The TAX differences especially if you're writing the car off and want a new car every 2-3 years.
 
stussy5555 said:
I am trying to negotiate a lease for a Jaguar XF SuperCharged, thanks to a previous thread I started asking for ideas on hot cars under $100K.

So anyway, I currently have a 2008 Toyota Tundra Double Cab XSP, 12,000 miles on it, its trade in value to a dealership on KBB is $26-28K, and I owe $30K. With that information, here is what Jaguar is offering me first crack:

Our book is showing the Tundra between 20,000-25,000, I put it in at $25,000 and number came to $1240 and at $28,000 it is $1150

XF details:
MSRP $64,475
LEV% 37%
Expected Mileage 12,000
Mileage rate .18
Lease End Value $23855.75
Lease Term 39 months
Initial cap Cost $54,475
Lease Factor .000265
Base Monthly $1164
Total Monthly $1240
Due at Start $1407.02

I really have no idea how to negotiate this thing, what are the important factors to consider? Is the initial cap cost of $54,475 a good deal? I have spoke to others who have leased XF Supercharged and they are paying anywhere from $850/mo to $1150/mo. with no money down.

I dont think the deal above is good one but its hard to go back to them and negotiate without understanding what to negotiate.

Thanks for any help.
Click to expand...

Lease factor is also known as a Money factor in a lease. Google it, that is basically your interest rate. Take the number they give you and multiply * 2400 to get the APR in your case I think you have an extra 0 in your number up there (it should be .00265?). Assuming .00265 you're looking at a 6.36% APR (not bad on a lease).

Here's the tips I have.

- Leases rock. You drive the car for 3 years, then trade it in. If you buy it you end up with a worthless (depreciating) asset at the end of your loan that probably needs $5k in repairs/maintenance because its got 100k miles on it by the time you're done paying for it. With a lease you pay for and get to use the best years of the life of the car.

- Negotiate price first. Pretend like you're buying it, get the best damn deal you can. Financing shouldn't play into your final negotiated price. With the way the market is right now I wouldn't pay more than $500 over invoice price.

- Negotiate your money factor ... yes its negotiable. If your credit is good try and get them down to around 6% (.0025 money factor)

- Don't do 39 months, do 36 months. The reason being that you will have to pay for the registration & taxes for the 3rd year while you only use it for 3 months.

- Treat the lease like you would treat some hot bitch you're trying to fuck. Pamper it, they're going to look at everything when you go to trade in. They are more lenient with damage if you're trading on another new Jag but if you just want to walk away, expect them to find $700-$1500 worth of "damage" or "excess wear" which you will have to come out of pocket for.

- Watch your mileage, if you do go over your 12k a year to lets say ... 15k a year it will cost you $540 a year. Find out how much more it costs to get a 15k mile lease ... it may be cheaper. In your case if its less than $45/mo (which is what it would cost you at 0.18/mile) it's worth it.

- I love the XF man, I was drooling over one in the grocery store parking lot today. I almost got one but look at that depreciation hit!!! Went from $64k to $24k in 3 years. Ouch town, population you bro.

Cheshire
 
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