As I understand it, it's of what you actually paid, not of MSRP. This has the effect of substantially lessening (not negating) the impact of negotiating MSRP down. In the 52% example from the original post, you will only reap 52% of the benefit of the lower MSRP (e.g. knock $2000 off MSRP and you actually only save $1040 under the lease vs. $2000 under purchase).

When negotiating a lease, you cannot usually beat the residual/interest combo that Saab offers (thank you GM) so you are left with
1) MSRP (limited impact due to declining residual)
2) Other items - dealer freebie's.

Yes, you can play with down payment but in my mind that's of little real effect (but might be important to you when structuring your finances) because Saab's interest rates are usually so low.

So, knock the MSRP down as much as you can and then you might want to consider forcing some dealer add-on's as part of the deal.

Examples:
* If you live in a snowy environment, a free set of Gislaved's and wheels would be awfully nice and worth a retail of ~$1100. Even if they won't give them free, what about agreeing to sell at invoice (~$700-800) or below?
* Mudflaps, spoiler, CD Changer, mats, etc. Same rules as above apply here.

With the dealer add-on's, you'll get 100% of the value. In any case, once you've more or less got a deal, you should be able to get all your dealer stuff at invoice. A dealer will not throw away a sale just because they aren't going to make any money selling you snow tires! I wish I'd thought of that when I'd leased... Next time...

Bryce

• 9-5 SE Wagon Lease (Very Poor Residual Value), Steven, Fri, 12 Jan 2001 23:37:07
  • redsidual..., Pete , Sat, 13 Jan 2001 12:19:02
    • Re: redsidual..., BILL McD, Sun, 14 Jan 2001 00:10:13
  • they quoted 58% to me in Oct 2000 on 2.3lpt wagon n/m, Pete , Sat, 13 Jan 2001 12:07:20
    • 9-5 SE Dropped from 56% to 52% this month n/m, Steven, Sat, 13 Jan 2001 12:10:23
  • Re: 9-5 SE Wagon Lease (Very Poor Residual Value), Steen, Sat, 13 Jan 2001 11:33:20
    • Re: 9-5 SE Wagon Lease (Very Poor Residual Value), Steven, Sat, 13 Jan 2001 12:06:44
      • Shoot, maybe Audi's have come down in price?, Steen, Sat, 13 Jan 2001 12:27:01
      • Re: 9-5 SE Wagon Lease (Very Poor Residual Value), Steen, Sat, 13 Jan 2001 12:21:10
        • Re: 9-5 SE Wagon Lease (Very Poor Residual Value), Steven, Sat, 13 Jan 2001 14:23:57
        • I just saw a A6 w/2.8..., Pete , Sat, 13 Jan 2001 12:32:15
  • Re: 9-5 SE Wagon Lease (Very Poor Residual Value), Bryce, Sat, 13 Jan 2001 01:11:58
    • Saab is offering 0.9% financing here in Canada....., Paul , Sat, 13 Jan 2001 20:28:40
  • Re: 9-5 SE Wagon Lease (Very Poor Residual Value), Rafe, Fri, 12 Jan 2001 23:50:14
    • Residual of what??? and other ideas..., Bryce, Sat, 13 Jan 2001 01:29:40 <-- Viewing This Message
      • Residual is always % off MSRP, jd, Sat, 13 Jan 2001 13:20:10
        • I stand corrected..., Bryce, Sun, 14 Jan 2001 08:51:08

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