# How good are the leases on the GTO?



## iupui1299 (Dec 9, 2004)

I have heard from reading a few threads that the leases on the GTO's are really good. What type of paymnet should one expect on a 24 month lease? I get teh GMS discount and the 5500 rebate. Thanks!


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## sboylan (Nov 14, 2004)

My lease situation...

48 months

$2100 due - $1000 GM Earnings = $1100 Due

Final Monthly Price: $285, including tax.

Insurance: $475 per 6 months. - I can't wait until I am 23, it drops $75 per 6 months.


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## SDMF Jon (Nov 29, 2004)

I used THIS SITE to fake my way though calculating a lease. I've never done a lease before, so I don't know much about them; someone please correct me if I'm wrong.

I started with the car's "advertised" price of $27,200, and used the current $5500 rebate to come up with the sale price of $22,700. I said the sticker price was $33K, and my down payment would be $7000, which is what the dealership offered for my trade in. I also wagged an interest rate 0f 5.5% for 36 months. I have no idea how close that is, I just guessed.

It came out with the payment being only $26/month. How is that right? Can someone please help me figure this out?


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## SDMF Jon (Nov 29, 2004)

As you may recall from my other thread, I test drove a GTO yesterday, and also had some words with the Internet Sales Manager. Well, I talked to him again this morning and he just faxed me over some lease terms. I don't know too much about leases, other than many people recommend that you lease cars because they depreciate so much.

Anyway, here's all the figures he sent me. I don't know what all of them mean, but maybe some of y'all can help me out. Basically, he gave me the car at the GMS price ($32,729), minus the current $5500 facotry rebate, and $7000 for my trade. Bottom line: $146/month for 36 months.....

GRS CAP COST = 32729
SALES TAX = 385
LAH PREMIUM = 0
CAP REDUCTION = 12500
----------------------
NET CAP COST = 20614

ADJ RESIDUAL = 17747.05
TOT TERM DEP = 2866.95
MONTHLY DEP = 79.64
MO LEASE CHG = 57.09
----------------------
BASE PAYMENT = 136.73

============================

MONTHLY TAX = 9.57
MO PROP TAX = 0
-----------------------
TOT MO PYMT = 146.30

TOT OF PYMTS = 5266.8

EST FEES/TERM = 72
TOT TAXES = 1983.40

==========================

1ST PAYMENT = 146.30
CAP RED = 12500
SEC DEPOSIT = 150
-----------------------
TOT INIT PMT = 12796.30

TERM = 36

So, is this a good deal? Can I get a slightly better deal? Any suggestions, please?


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## djdub (Oct 23, 2004)

So you're going to get a GTO for $146/month and you wanna know if its a good deal?

Well, I traded in a car that was only 9 months old and it had $7000 in negative equity. I put $0 down and did a Smartbuy for 48 months at 12,000 miles per year. I pay, are you ready for this...




$503/month

And with the negative equity, this is a fantastic deal, believe it or not.

So to answer your question, you're gonna pay $146/month and I pay $503/month for the same vehicle, so yes it's a good deal.


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## SDMF Jon (Nov 29, 2004)

LOL! Yes, true, when you put it that way!  But I have to consider increased insurance and gas costs, too. Right now, I pay NOTHING a month for my Cavalier, and it gets over 30 mpg on 87 octane gas. I switch over to the GTO, and I'm already adding a monthly payment, plus now more fill-ups, with 93 octane to boot......so there are other considerations....


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## iupui1299 (Dec 9, 2004)

Does the car require 93 octane?


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## iupui1299 (Dec 9, 2004)

I think we are going up to the dealer after work today. It may be for nothing because I am not sure if I can get a 24 month lease for around 250 a month considering I have to tack on 2100 for early lease termination. However, i do remember there being a lease special a coupel months back for 229 a month and that was without the 5500 rebate. I think they had the 3500 back then. We shall see.....worse case scenario is I get to at least test drive a GTO.


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## SDMF Jon (Nov 29, 2004)

iupui1299 said:


> Does the car require 93 octane?


I think it requires a minimum of 91 octane, but the only 3 levels offered here in GA (I think) are 87, 89, and then it jumps to 93.

HOWEVER,.......

I did read in a thread here that several owners were running 89 octane w/o any problems. I know modern car computers will adjust accordingly for the octane level. It jsut means reduced performance.


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## SDMF Jon (Nov 29, 2004)

And I just got off the phone with my insurance (USAA, the best inthe world!!), and keeping all my deductibles the same, etc., etc., my 6-month premium would only go up approximately $57. That's much less than I suspected it would be.....


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## iupui1299 (Dec 9, 2004)

Thanks for the reply. My SRT-4 takes premium only. It may be hard to sell the wife on the GTO if that HAS to take premium as well.


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## SDMF Jon (Nov 29, 2004)

Yeah, sellin' the wife is always difficult.  The dealership man did say I could take it home for a night if I wanted. Maybe I should take him up on that....


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## Tom (Nov 1, 2004)

Here is the deal I am signing tonight on a silver manual

Sticker 33190
Sales price 31400
Less:
Rebate -5500
Coupon - 500
GM Card -2000 My 900 was raised to 2,000 if i close by jan 3

Net 23,400

Now the cool part, residual on a smart buy (no leases in NY) is about 18,500. My tax rate is 8.75% so I have to pay $1,600 tax on the residual.

Bottom line $285.27 a month with nothing but the GM card funny money down.

I know $25,400 doesnt qualify me for the lowest price, but I think 23,400 just might.


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## SDMF Jon (Nov 29, 2004)

Tom, you're a CPA right (didn't I see that in another thread?)? What do you think of the term I was quoted?


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## Tom (Nov 1, 2004)

Joh,
Your problem is the trade. I am geting the car for 31400 which is about 600 over invoice, but am getting the coupon and the rebate which brings it down to 25400.

The GMS price I got was 31,200 which would have cost me the 500 coupon and my gm card earnings.

if he lowers the selling price he will lower your trade. you know the deal. thats why i am taking the risk and selling my 93 Z28 6spd with 41k miles privately.


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## SDMF Jon (Nov 29, 2004)

Actually, I just researched my trade online and they are low-balling me by about a grand. I think I'll pick up the car for an overnight test, and ask them to reconsider how much they're giving me on my trade. I want $8000 for it instead of $7000.


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## SDMF Jon (Nov 29, 2004)

Tom said:


> The GMS price I got was 31,200 which would have cost me the 500 coupon and my gm card earnings.


So can I use that figure as leverage when I negotiate? He's telling me their GMS pricing is 32729, which seems a bit high.


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## iupui1299 (Dec 9, 2004)

I thought GMS pricing on the GTO was 29, 8XX?


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## iupui1299 (Dec 9, 2004)

I may still go and talk to the dealer but I don't know if it's going to work. My wife wants to pay only about 250 a month. If the GMS is 29,865 and I add on my lease termination penalty it will be 31965 (approx). Then I take off the rebate and I get 26465. I doubt that I can get a 24 month lease for 250 with that price. What are these coupons people are talking about?


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## Tom (Nov 1, 2004)

I think the 29865 is invoice on a GMS. When I went through the web to the site, the new window sticker was 31,188.79. that leaves 1335 in profit for the dealer.

The dealer i am working with is charging me $600 over invoice according to the other dealer that says he is selling it for 500 under cost. 

1100 is a lot of money, but driving four hours and getting a color I like less (black instead of silver) cuts the savings down to about 500.

If i got it for the 29,865 I loose 2000 in gm card funny money and his 500 coupon.

coupons are something the dealer has.


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## iupui1299 (Dec 9, 2004)

Well, I am going to go and talk to them and see what can be done. I am hoping they want to move these off the lot and will give me all they can in order to do so. Maybe that's just wishful thinking .


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## sboylan (Nov 14, 2004)

If you lease a car, you only pay for what you are using correct? So if the car is "sold" at say $26,000 and the residual is say $16,000 the bottom line figure is $10,000 over 48 months (my lease option). So would I divide $10,000 over 48 months plus my tax? To get $220? Please note these figures are arbitrary as I don't have the paperwork in front of me.


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## SDMF Jon (Nov 29, 2004)

I don't know much at all about leases, and I've VERY confused. I don't want to be left with nothing at the end of the lease. Am I correct in assuming you can use the residual value to apply to a new lease at the end of the old one? Or am I way off?


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## Baron Samedi (Oct 22, 2004)

If you can afford the higher payment, keep the trade out of the lease. All you're doing with the $7000 (or hopefully $8000) is paying yourself back $7000 over the course of the lease (194.44/month). You're MUCH better off with $7000 in your pocket or in an interest bearing account or spending it on something else.

Ask him what interest rate (or money factor) he used to calculate the lease. I think you're in for a surprise. If he gives you a money factor, multiply it by 24 to get the interest rate (eg. money factor of .0024583 equates to an interest rate of 5.9%)

*MAKE SURE TO ASK HOW MANY MILES A YEAR HE'S ALLOWING IN THE LEASE! * (unless you specified or he told you differently, I bet it's 10,000 miles/year).

Here's how a lease is calculated:

1. Gross Cap Cost (the selling price of the car)
less Cap Reduction (your trade and the rebate)to come up with
Net Cap Cost
less the Residual Value
equals total depreciation over the term of the lease.
Divide that by the term (36 months in this case) to determine the first portion of the payment; the average monthly depreciation.

2. Add the Net Cap Cost from above to
The Residual Value and multiply that by the money factor (.0024583 in the example above - or the interest rate divided by 24 - eg .059 divided by 24)
The result is the second portion of the payment; the monthly lease charge.

3. Add the monthly lease charge and the average monthly depreciation to get your total payment.

To this you have to add your state taxes. Here in PA, there's 6% sales tax and 3% lease tax for a total of 9% ON THE PAYMENT. Obviously, different states tax at different rates, but also different states calculate the tax on the lease differently (some calc. on the total of Cap cost and Residual - others do something completely different) Bottom line, ask the salesman to show you on paper how the lease is calculated rather than just showing you figures he pulled off his PC.

I tried to work the payment backwards into the interest rate with the numbers you supplied, but I don't think I did it properly.

Anyway, find out the rate and miles per year and think about not putting the $7k into the lease (you're only spending your own money to lower the payment on something you won't end up owning anyway). PM me if you have any questions and I'll try to answer.

Good luck!

:cheers


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## sboylan (Nov 14, 2004)

SDMF Jon said:


> I don't want to be left with nothing at the end of the lease.



Unfortunately, in leasing this is exactly what happens.


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## SDMF Jon (Nov 29, 2004)

Baron Samedi said:


> If you can afford the higher payment, keep the trade out of the lease. All you're doing with the $7000 (or hopefully $8000) is paying yourself back $7000 over the course of the lease (194.44/month). You're MUCH better off with $7000 in your pocket or in an interest bearing account or spending it on something else.


  That's the problem, I can't afford a higher payment. The only reason I'm considering any of this is because this offered lease payment is low enough for me to afford.

It's sounding more and more like I should just pass.


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## sboylan (Nov 14, 2004)

If you want a GTO and can get one in the 200's go for it. 

Just remember, it's only money; I just planted 2 new money trees out back last month, I am hoping by spring that the 1's on there now mature to 20's and 50's. The problem is the wife keeps pruning it before I get home and spending it at Pier1.


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## Baron Samedi (Oct 22, 2004)

OK. I've figured out what you can do (I'm living vicariously). Tell the dealer to sell you the car for invoice (close enough to $30,790 - right now he's given you a $461 discount on a leftover piece of inventory - not very generous). The dealer will still make the holdback. Put down $3500 of your trade equity. Use the $5500 as additional cap cost reduction, lease the car for 36 months if you must (48 might yield a lower payment then you could use less of your trade equity) and your payment is $199.09 per month.

How about that? PM me if you want details.


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## iupui1299 (Dec 9, 2004)

Well, didnt get one. Delaer came up with 399 a month for a 24 month lease. That was with GMS and 5500 off and the 2100 early termination penalty. He said they coudl come down a bit but not to 250 liek I wanted. Oh well, guess it wasn't meant to be.


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## SDMF Jon (Nov 29, 2004)

I'm not getting the one I overnight test drove either. Although I think the car has more pluses than minuses, there are little things that irk me, which I know would bother me more and more in the long run. On top of that, I'm just not comfortable with a lease at this point in my life. Too many risks, too many uncertainties in the future.

Like you said, I guess it wasn't meant to be. Which is really, really odd, because usually the wife HATES any car I like, but once she drove the GTO, she said, "Oh yeah, you can get that." LOL, I couldn't believe it!   

But, cooler heads prevailed.


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