Re: 9-5 SE Wagon Lease (Very Poor Residual Value) - Saab 9-5 Bulletin Board - Saabnet.com
The banner above is an advertisment - if it asks you to download software, please ignore.
Site News -
4/9 Saab Owners' Convention Day Pass Raffle |
3/26 M Car Covers (by State of Nine)
[General |
Members |
C900 |
9000 |
NG900 & OG93 |
93 |
95 |
NG95 |
99 |
Sonett |
Vintage Models |
Clubs |
Other Cars |
FAQs |
Gifts |
Member Photo Galleries |
Member Directory |
Classifieds |
Manuals |
*Buddy Registry |
*Mileage Registry |
Polls |
What's New |
Raffle |
Photo of the Month |
Sponsors]
[Main 95 Bulletin Board | BBFAQ |
Prev by Date | Next by Date | Post Followup ]
Member Login / Signup - Members see fewer ads. - Latest Member Gallery Photos
Re: 9-5 SE Wagon Lease (Very Poor Residual Value)
Posted by Bryce [Email] (more from Bryce) on Sat, 13 Jan 2001 01:11:58
In Reply to: 9-5 SE Wagon Lease (Very Poor Residual Value), Steven, Fri, 12 Jan 2001 23:37:07
Members do not see ads below this line. - Help Keep This Site Online - Signup
IMO it's Name, Name, Name... Volvo and Audi are far more recognizable names...
But, what really does the the residual have to do with anything other than your buyout??? For all other puposes, it is just one input into your deciding factors of 1) amount down and 2) payment amount.
Try asking Volvo and Audi for 2.88% on their loans/leases!
In my opinion, the ideal lease is a factory subsidized lease with a low residual and low interest rate. Here's why:
1) If the residual is lower than the market in 39 months and you like the car, you have the option to buy it at that price. e.g. If the residual is 18980 (.52 * 36500) but the market price is $20000, you essentially saved $1000 on the deal!
2) If the residual is dead on or near, you neither lost nor gained on the deal but were able to take advantage of a great interest rate. Take it or leave it, your choice...
3) If the residual is higher than the market in 39 months, you can walk away knowing the lease saved you a bunch of money that you would have lost on the sale. Alternatively, if you want to keep the car, you should be able to approach your dealer and offer slightly less than market price for the car. This will save the dealer the cost of taking the car in, cleaning it up, advertising it, etc... Again, you got a good deal here and a great interest rate.
So, assuming that 52% and 2.88% interest had the same payment as 60% and 8% interest, I'd consider the 52% superior any day.
I know that's an odd way of thinking about it but frankly, interest is just an input factor and residual only matters when it comes time to buy the car back, should you so desire.
By the way, I have a 00 9-5 Aero on a 36 month/36000 mile lease at ~2.4% interest and 58% residual (I think...). Anyway, the numbers are something like that.
Don't let the residual scare you out of a lease. On the other hand, were you planning a purchase and a sale in 2-5 years, that would scare me...
Bryce
Posts in this Thread:
- 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
- they quoted 58% to me in Oct 2000 on 2.3lpt wagon n/m, Pete , Sat, 13 Jan 2001 12:07:20
- 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), Bryce, Sat, 13 Jan 2001 01:11:58 <-- Viewing This Message
- Re: 9-5 SE Wagon Lease (Very Poor Residual Value), Rafe, Fri, 12 Jan 2001 23:50:14
Members do not see ads below this line. - Help Keep This Site Online - Signup
Post a Followup
No Site Registration is Required to Post - Site Membership is optional (Member Features List), but helps to keep the site online
for all Saabers. If the site helps you, please consider helping the site by becoming a member.
StateOfNine.com
|
SaabClub.com
|
Jak Stoll Performance
|
M Car Covers
|
Ad Available
|
Random Saabnet.com Member Gallery Photos (Click Image)
This is a moderated bulletin board - Posting is a privilege, not a right.
Unsolicited commercial postings are not allowed (no spam). Please, no For Sale or Wanted postings, SERIOUSLY.
Classifieds are to be listed in The Saab Network Classifieds pages.
This is a problem solving forum for over 250,000 Saab owners, so expect to see
problems discussed here even though our cars are generally very reliable. This is not an anything goes
type of forum. Saabnet.com has been a moderated forum since 1988. For usage guidelines, see the
Saabnet.com Mission and Purpose Page. Please remember that you are
not anonymous. Site Contact | Site Donations | Other Sites by SP -
Poverty2Prosperity.org | Run Club Menlo Park | ScreenBot
Site Members do not see red text instructions, bottom of the page anchor ads, or box ads.
Click here to see all
the Site Membership Benefits!