How to calculate cash price
08-03-09, 04:55 PM
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How to calculate cash price
Hi Folks,
I'm new to the auto leasing scene and need some guidance.
There's a national ad for a 2009 GS350 AWD with a 36 month/10K lease cost of $599/month and a $2999 cap cost reduction (taxes, etc. not included).
The Lexus dealers tell me that the residual is 46% and interest rate is 0.9%.
Working back from the standard lease cost formula, I get a net cost of $41526.
However, when I request a cash selling price, they give me quotes ranging from $46500 to $48300.
Should I be able to buy the car for $41526 + tax, or is the true cost something higher? How can I tell what the right cash selling price should be?
Any help is much appreciated.
I'm new to the auto leasing scene and need some guidance.
There's a national ad for a 2009 GS350 AWD with a 36 month/10K lease cost of $599/month and a $2999 cap cost reduction (taxes, etc. not included).
The Lexus dealers tell me that the residual is 46% and interest rate is 0.9%.
Working back from the standard lease cost formula, I get a net cost of $41526.
However, when I request a cash selling price, they give me quotes ranging from $46500 to $48300.
Should I be able to buy the car for $41526 + tax, or is the true cost something higher? How can I tell what the right cash selling price should be?
Any help is much appreciated.
08-04-09, 03:03 PM
#2
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Follow Link for an answer to your question
http://www.leaseguide.com/calc.htm
You should be able to play with the numbers to find out the selling price. Of course, if you ask for the "Cap Cost" used in the lease calculation they have to tell you. I lease all the time and I never ask them about payments or anything other than "Cap Cost". When leasing a car, the Cap Cost is the Only thing you can negotiate. Everything else is dictated by the leasing company so the better you negotiate the Cap Cost, the lower the payments will be.
You should be able to play with the numbers to find out the selling price. Of course, if you ask for the "Cap Cost" used in the lease calculation they have to tell you. I lease all the time and I never ask them about payments or anything other than "Cap Cost". When leasing a car, the Cap Cost is the Only thing you can negotiate. Everything else is dictated by the leasing company so the better you negotiate the Cap Cost, the lower the payments will be.
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