Locate an Auto Repair Shop in Divide, Montana

Divide, MT Car Consumer Discussions

I'll give it a go

by michaell on Mon Nov 17 13:41:22 PST 2008

If you are excel literate, you can create your own spreadsheet (I'll expect the experts to proof my work and make any corrections if necessary) Here are the cell labels and their contents: MSRP - Sticker price of the car, in dollars (cell A1, B1) Cap Cost - Selling price of the car, in dollars (cell A2, B2) Residual percentage - residual percentage at end of least (cell A3, B3) Residual value - cell B1 * cell B3 (cell, A4, B4) Term (months) - how long is the lease for? Answer in months - 24, 36, etc. (cell A5, B5) Money Factor - money factor, as a decimal value (.0002) (cell A6, B6) Pct Rate - cell B6 * 2400 (cell A7, B7) Depreciation Amt / Month - cell B2 minus cell B4, divided by cell B5 (cell A8, B8) Interest Amt / Month - cell B2 minus cell B4, multiplied by cell B6 (cell A9, B9) Pre tax Payment - cell B8 plus cell B9 (cell A10, B10) Tax Rate - entered as a percentage (7.5%) (cell A11, B11) Tax Amount - cell B10 multiplied by cell B11 (cell A12, B12) Full Monthly Pmt - cell B10 plus cell B12 (cell A13, B13) Cell B13 would be the full monthly payment, with tax (note - for states like Illinois and Texas, the above formula won't work, as the tax is applied to the whole vehicle, not just the depreciated amount) Edit away!

Re: Thoughts on this deal? [jetta_girl]

by cascadejim on Thu Nov 13 22:11:49 PST 2008

Ok, well the final price you are quoting is MSRP. When negotiating on a lease you should always start by negotiating on the price of the car as if it was a purchase. So let's say invoice is $21559, but with your options perhaps the invoice price is near $22,500. If you change the sale price nearer to invoice and run the calculations the lease price/mth drops to $340/mth. Here are the calculations below, you kind of go through the whole math process from top to bottom to find the end monthly price. MSRP - $23,769 Residual value - 60% = 14,261 Money Factor = .00273 Capatilized Cost (final sale price) = $22,500 (let's assume you negotiate to near invoice at $22,500) Cost over life of lease (final sale price - residual value) = $8239 Divided by 39 months = $211.25/month Lease cost (APR/Money factor) this is MSRP plus residual value multiplied by money factor = $101.03/month Brings lease cost to $312.28/month Factor in taxes of 9.25% ($312.28 * 1.0925) Total price $340.38/mth Hope this helps.

Re: Wow [sixfive]

by dallasdude1 on Thu Nov 13 18:38:45 PST 2008

There are also companies that are going to improve in a down cycle.. Right now your cllients are earning less than inflation. How long long are they putting up with that? Also my grandmother earns the same 8% yield on her stock whether it goes down or not. IF she were your client she'd be in the street with that 2% To put it in simple terms. Your $100 investment is worth $50 now. 8% of $100 was $8 and 8% of $50 is $4. Cook the books all you want but thats a loser. I can only agree that this is a great time to buy a home and or car. Buffet seems to think that cash is king also, and has managed to get himself great terms from these capital hungry industries. Your assumption is that the original principal will be back at some future date. It ignores the preservation of capital as a goal. Then remember the rule of 72, divide the rate of return into 72 and you more or less get the years it takes to double your money. IF she were your client she'd be in the street with that 2% You fail to factor in the 4 years in a row I weighted the energy services, energy, natural resources, and natural gas. Each year was worth 40% or more. Diversification is for the ignorant. So granny would be better off heeding the advice of someone knowledgeable in money management. True I did miss out on the real estate boom, other than my residences, which I sold and awaited for the opportune moment. I rented for three years. My feelings were that most of the baby boomer's had homes by this day in time. I saw no logic in the mania and or reason for a housing boom. Other than the normal run of the mill creation of new households, there was no economic reasoning whatsoever for the housing bubble. Oops, I almost forgot, I missed out on gold too. Again, I'm not too keen on uneducated guessing. Only on reasonable and sane rationalizing. it's not ethical to time the market I disagree and consider the market nothing but a betting pool. Much like Vegas. I'm seeing many correlations to Japan in this present down cycle. If anything I've seem many more unethical things in the Wall Street rumor mill which require SEC enforcement of present regulations.

Re: Accord vs a Camry [bvdj84]

by imidazol97 on Thu Nov 13 08:37:56 PST 2008

>I really just can't past the fact the GM car depreciates so fast Explaining reality of money on that for those who aren't going to trade every two years is like explaining how the economic financial mess got started; no one wants to really place the facts where they lie. Take the price of the actual car, after discounts, as you drive it off the lot. Divide your likely sale value after a few years by that. For the GM, I can get a good discount, and I can leave the dealer without being ripped off by mandatory (in their head) doc fees, prep fees, polish fees, waterproof fees, etc. At the two local other brand dealers, there are ADMs on the car with stuff added on for hundreds (besides the packs added on by the area wholesale license holder), and anything they can add on. Take your value of the car and divide by the out-the-door price. I don't see a difference that would make me buy something I didn't like quite as much and pay the extra fees added on. In this area they want you to thank them for letting you look around the showroom or dealer lot at one dealership. I buy and hold a car for 10 years typically.

Re: $55 oil equals less than $2 gas [lemmer]

by andre1969 on Wed Nov 12 08:05:19 PST 2008

Based on that, I don't know how some people figure this is the worst recession since the Great Depression. Well personally, this time around has hit me harder than the recession in late 2001/early 2002 did. I probably saw my retirement/investments take a hit of about 1/3. Yet the value of my condo went up. I was also in no danger of losing my job. The one factor that probably hurt me the most financially was that on Columbus Day 2001, I officially decided that I would never, EVER deliver another pizza, for as long as I live! I didn't pick the best time to go down to one job, but I managed to survive. This time around? Well, at one point, October 17 I think it was, my retirement portfolio had lost almost half, compared to its peak barely a year before. I wouldn't be surprised if the value of my house has dropped by at least 25% off its peak. My house would probably also be a hard sell these days, because most of its value is in the land. A developer could buy it, raze the buildings, and divide it up, but developers are having a hard time doing that these days. I have no intention of selling anytime soon, and I still have plenty of equity in the place, but it still wouldn't be easy to unload if I had to. I'm still in no danger of losing my job, so I'm okay there. Also, groceries and gasoline are a lot more expensive than they were, say, 7 years ago. I remember gas prices getting back down to about $1.00 per gallon around this time in 2001. So even with today's relatively cheap gas, it's double what it was 7 years ago. I dunno how much groceries have gone up on average, but I remember milk being $2.25-2.50 per gallon not that long ago (probably longer ago than I think though), where nowadays I usually pay $4-4.50. Another thing that's roughly doubled in that time is electricity, at least around here. So far this year, I've been averaging about 16.3 cents per kilowatt-hour. Back then, it was around 9 cents. Now the recession before that, back in the early 90's, I was still in college, so relatively insulated from that one. And house prices did drop around here during that one. I paid $84K for my condo in 1994. In 1990 it would have easily fetched $100K. It wouldn't be until around 2001 that it would be back up to $100K. And I know some areas got hit hard that time around, especially California. I had a friend who lived in Garden Grove, who paid around $100K for a condo when prices were still high. Once he finally mailed the keys to the mortgage company, and was laid off, I think it was worth around $10K! :surprise: The crisis before that, 1979-83, I was just a little kid, so I was too young to know what was going on. I do remember Mom griping about paying $1.10 per gallon for gas though, and finally getting fed up and trading her '75 LeMans with its 350 V-8 for a relatively efficient 1980 Malibu with a 229-V-6. That recession was sort of funny though (not in a ha-ha sort of way). By the spring of 1982, Chevy was actually selling V-8 Caprices at sticker price, sometimes even with ADMU stickers. Meanwhile they were having to throw incentives at some of their more fuel-efficient cars, like the 4-cyl Celebrity, to get anyone to pay attention to it. Also, in that recession, house prices were still creeping upward. And in those days, more people had pensions, rather than relying on 401k's and personal savings and such. So I think there was a little more overall stability than there is today. So the reason that people are comparing this to the Great Depression is because it's more similar to that in the way that people are getting wiped out financially. In past recessions you might get laid off, and as a result have to burn through your savings, and then start missing mortgage payments so you'd lose your house. But this time around, many people are losing their savings, home, AND job, all at once. The GDP may not be hurting too much (yet), but many people certainly are!

Re: [demarcom]

by Car_man on Mon Nov 10 17:20:33 PST 2008

Hi demarcom. I believe that Lincoln extended its lease program on the MKS through November 18th. Ford Credit's current base lease rate and residual value for a 36 month lease of a 2009 Lincoln MKS 2WD with 15,000 miles per year are 1.5% and 51%, respectively. As you can see, Ford Credit publishes lease rates instead of money factors for the vehicles that it leases. You can convert its lease rates into approximate money factor equivalents by dividing them by 2400. Car_man Host Prices Paid: Buying & Leasing Experiences Forum