Leasing Info for future owners

[Jughead]

Just an FYI. I am leasing my Z. So I sent my info over to NMAC on the 25th of March, knowing that if it came in after April 1st, I would still be able to use March's rates and residuals if they got worse. OR if they got better, I would use that one. What a difference. Residual went from 86% to 80%.
So, If any of you are going to lease, and delivery date is getting close to the end of the month, have your dealer send in the application to at least give you the protection of being able to use the current month (application date) or next month's if they get better.

 

[Houston.RZ34]

I drive waaaaaaaaaaaaaaaaaaaaaay too much for a lease, good lookin' out on the info however!

 

[Jughead]

Technically...the more you drive, the better leasing "can" become. As long as you pick your mileage plan upfront. But it also becomes preference at that point. But, since this isn't my DD, so the choice was an easy one with such a high residual.

 

[Donalex]

The residual is usually tied to the contracted date.

In this time of high rates, you can lease at (typically) a lower rate - called the "money factor". You'll enjoy a lower payment than buying.

If you want to buy, put the difference between the buy or lease payments in a savings account. Let that accumulate for the lease term.

At the end of your term, use the savings as a partial payoff, then finance the rest at a (presumably) lower rate.

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The money factor is expressed as a decimal - .00234 for instance and you can convert it by multiplying that by 2400. Or, use one of the many converters online.

Be sure you are informed of the money factor (interest rate) AND Cap (capitalization) cost (total cost after cash/equity deduction and additions of finance products (warranty, etc) & optional parts and accessories. Some leases include GAP insurance at no cost, too.

Your insurance must be 100/300/100 minimum.

 

[Jughead]

You can use the submitted date of the application, or the current date. I contracted on 4/4 waiting to see if the numbers got worse or better. NMAC will allow you to use the date of submittal is desired. Had I not submitted my deal in March, I would have lost out.
Yes, the money factor is kind of stupid high, but the residual made up for it. .00365. Yikes!
Leases do not include GAP as the leasee will not need it, no matter how upside they were if they went into a lease, since they are not "the owner" of the car. The payoff is only responsible for the the lessor (owner). NMAC will kick any lease contract with GAP on it. Will a dealer "sell" the customer GAP, and include it in the price so it isn't seen? Unfortunately, yes. And obviously, since I am the dealer, I didn't mark up my money factor.
I did residualize my spoiler. Cost was $650 and NMAC allowed for $400 of it to be included. So that was a bonus.
Insurance is what it is. Most people carry that anyways. Especially homeowners.

 

[Houston.RZ34]

I put 23,xxx miles on my 370Z the 1 year I had it, I drive tf out of my cars.

Commutes
Therapy Drives
Racing
Road Trips
Pilgrimages to Tail of the Dragon and other windy roads lol

 

[Jughead]

Tail of the Dragon is fun! I've done in Jeeping out there. May have to take trip back out there.

 

[Donalex]

Leases do not include GAP as the leasee will not need it, no matter how upside they were if they went into a lease, since they are not "the owner" of the car. The payoff is only responsible for the the lessor (owner).

Ah, from NMAC's website:
Lease vehicles do not have GAP Insurance, however, NMAC does provide a GAP Waiver at no additional cost.

Other lease companies may not have the same thing. At one time, my Credit Union had leases and the dealers sold a Gap policy, captives had it included, non-captives didn't.

When you say "payoff", you mean on a trade or owner selling to another person?

 

[Jughead]

Right. GAP is not sold or added to the contract. It is not necessary as NMAC takes care of it themselves, except for late payments and deductibles, of course. As per the back of the contract. There is no form to sign for it, albeit the insurance or waiver version of GAP. Which is why I tell customers it isn't necessary.
Payoff - referring to the payoff of the leased vehicle. Every leased or financed vehicle has a payoff.