Tips on Buying Cars: lease, money factor, luck steve


Question
QUESTION: what is your opinion of my lease deal.   I am trading in an 07 suburban  I owe
18000 on it and am getting 26000 as a trade in so + 8000.  I am thinking of
leasing a 2011 suburban for 39 months money factor that translates to 1.008
%, MSRP-46210, vehicle price 44196, Gross cap cost 44891, cap cost
reduction 10900, adjusted cap cost 33991, residual 20794,  mile limit-
15000, lease rent charge 47.16.    I am thinking that this is a pretty fair deal.  
do you agree?

ANSWER: Shane,
let us simplify this first. What are you doing with the 8k positive equity and what will the monthly payment be...Thanks in advance.

Steve

---------- FOLLOW-UP ----------

QUESTION: sorry i forgot that critical info.    basically the 8000 is part of the 10900 cap cost
reduction and the monthly payment is 403 /mo for 39 mo.  

Answer
hi,
bad deal, any deal you give a down payment is not really good, but renting a car for 39 months and giving $8000 down is terrible. if you divide the 39 months by the 8k, it is approx $200, add that the the 403 a mont and it is now $603, in 39 months you have to give the car back and you are left with nothing, my opinion if you buy a 1 year old Suburban, you can find it for 7k to 11k less, put down the 8k, you will have payments of approx 500-550, but you will own the car in 5 years. This is what i would do, let me know if you have any other questions, and good luck!!

Steve