Leasing an FR-S

[JD121]

Hey, a general manager where I have my deposit at informed me today to expect a lease on a base FR-S to be around $450 a month based on a standard lease of 2500 down for 36 months like most other leases.

Does anyone know of this is going to happen if I want to lease the frs rather than buy the car?

I was hoping to pay 300 or less to lease the FR-S based on 36 month and 2500 due at signing.

Anyone here currently leasing the frs or know any info on leases in the US?

[MrFRsLa]

I smell make up!

[JD121]

Yeah I told him there was no way. His argument was that since the cars are limited quantity, the lease is high. He said, "that's why FJ cruiser leases are much higher than say a Camry worth about the same price because there are many more camrys than FJ produced."

[WingsofWar]

DO NOT LEASE UNLESS IT APPLIES TO YOU!

For the most part Leasing is only good for specific individuals in certain situations.

If you don't know anything about leasing i suggest you do some research before you get destroyed financially from a lease.

If you buy the car, it was always be the ultimately cheapest route. Especially if you have plans to want to own the vehicle. If you have good credit, go through a credit union or a similar loan office that gives you a good interest rate.. buy the car and set up a comfortable monthly rate for you.

[belavia]

I am leasing in Canada for about $440, with $0 down, over 3 years. This is after 13% sales tax and dealer fees.

[JD121]

I don't wish I own the FR-S, currently leasing a camry and that lease is up in July. So I'm planning to lease the FR-S for a resonate monthly payment.

[Jay Grey]

Originally Posted by justaquestion

That's a complete ripoff. You can lease 40k BMW's for that much each month with 3k down. You have almost payed off the entire car at the end of that lease.

Originally Posted by JD121

Hey, a general manager where I have my deposit at informed me today to expect a lease on a base FR-S to be around $450 a month based on a standard lease of 2500 down for 36 months like most other leases.

Does anyone know of this is going to happen if I want to lease the frs rather than buy the car?

I was hoping to pay 300 or less to lease the FR-S based on 36 month and 2500 due at signing.

Anyone here currently leasing the frs or know any info on leases in the US?

That is definitely a complete rip off... Whoever leases an FR-S for that much is a complete retard. Your best option is to finance a vehicle if you can. If you dont feel like keeping the vehicle after 3 years, trade it in for another. 3k down at an msrp around 25k + taxes & tags can bring you around 24-25 again / by 60 months can bring your payments around 404 (rough estimate). Way cheaper than the lease... Plus you have collateral towards your next vehicle, just keep in good shape.

[frs23]

Originally Posted by JD121

Hey, a general manager where I have my deposit at informed me today to expect a lease on a base FR-S to be around $450 a month based on a standard lease of 2500 down for 36 months like most other leases.

Does anyone know of this is going to happen if I want to lease the frs rather than buy the car?

I was hoping to pay 300 or less to lease the FR-S based on 36 month and 2500 due at signing.

Anyone here currently leasing the frs or know any info on leases in the US?

450 x 36 + 2500 = $18700 and no car at the end of the deal.. one word: wow!

Even at 300 per month it works out to $13300

Someone has money to give away

[315FR-S]

i feel like dealers are playing on the hype and are going to screw some people over. i really hope they won't be this cars downfall

[ruskymx]

You should ask the guy what color your second FRS is going to be for that lease price!

The residual value on a FRS manual trans is $16,698 (12,000 miles per year) and MSRP is $24,930. Your payments are based on the difference, plus tax, tags, interest, etc.

Your monthly depreciation is ($24,930 + $650 acq fee - $16,698) / 36 mos = $246.72 depreciation

The finance charges are based on the cap cost (sale price, less any trade or cap cost reduction which is down payment in excess of first payment and tags). This example, I'm assuming $0 down, just responsible for start ups (1st payment & tags) due at signing.

The math:

$24,930 + $16,698 + $650 acquisition fee = $42,278

$42,278 * .00200 (Tier 1+ money factor for lease) = $84.56 (monthly "Interest")

This amount is the monthly "interest" to borrow the money to lease the car through Toyota Financial Services. It is based on your credit score. Here's a chart of what TFS's money factors are depending on your score.

Zone 1+ Fico 720+ -----0.00200 up to 60 months
Zone 1 Fico 719-690 ----0.00210 up to 60 months
Zone 2 Fico 689-670 ----0.00255 up to 60 months
Zone 3 Fico 669-650 ----0.00345 up to 60 months
Zone 4 Fico 649-630 ----0.00410 up to 60 months
Zone 5 Fico 629-610 ----0.00490 up to 60 months
Zone 6 Fico 609-580 ----0.00550 up to 60 months
Zone 7 Fico 579-520 ----0.00670 up to 60 months

Now, add the monthly depreciation and the monthly "interest" and you will have the base monthly payment before taxes.

$246.72 + $84.56 = $331.28

The taxes will vary by state/counties, etc, but since I'm in Pennsylvania, I'm going to use my home state for the example.

$331.28 * 9% (6% sales tax + 3% usage tax) = $29.82 tax on payment.

Now add all three amounts together. Depreciation + Interest + Tax = Lease payment

$246.72 + $84.56 + $29.82 = $361.10 lease payment

This payment is just with your 1st payment and tags due at signing, which at my dealership in PA would be $361.10 + $217.05 = $578.15.

For each additional $1,000 down payment, you should subtract roughly $30 per month from the payment for a quick estimate. This method will get you close....I'd say +/- $2-3 per month and if that variance is going to stop you from buying this car, then you probably shouldn't be buying it in the fist place...lol

So for the OP that was putting $2500 down, I would estimate that your payments should be around $300 +/-, depending on the tax rate of course.

The guys's comment about FJ leases being high is in part true. They lease like crap, but it's not because of production. It's because the residual is based off of the BASE MSRP of the vehicle, not the total MSRP of it. So the packages and options are not residualized so you are paying for them in each of your lease payments and none of the value of the packages are added to the residual at the end. THAT is the reason why the lease sucks on an FJ. I wanted to lease an Army green FJ last year, but didn't want a $550 lease pmt on one, so I passed.

This should shed even more light into leasing. I should add this to my Lease 101 post. On the way to do that now.

Ruskymx

[PBM317]

ruskymx, why are you adding the residual to the base price for the interest?? That doesn't seem right at all.. I think you meant to subtract the residual from the base price.

[ruskymx]

As goofy as it seems, that is how the interest is calculated on a lease. See this link for another example.

http://www.leaseguide.com/lease08.htm

You are also charged sales tax on your down payment if you put more than the minimum down. I'm not sure if that's how it is in every state, but it works that way for PA. The reason behind it is that any additional down payment is considered a capitalized cost reduction (cap cost = sale price) so it reduces the amount that your depreciation payment is based on so therefore needs to be charged sales tax. One more reason to not put a large amount down on a lease because you will pay tax on it upfront instead of being spread out over all of your payments.

I double checked my math with a lease calculator on my iPhone from the app store and I was within $1 per month of the payment. See the attached image.

The selling price is $24,930 + $650 acq fee. The residual is off by $5.10 and won't have a major effect on the payment.

Ruskymx

[ruskymx]

I adjusted the residual so it's within $0.12 and look at the payment...$0.01 off my manual calculations. (need the pat myself on the back smiley)

Ruskymx

[Nevermore]

I don't know how relevant this will be because mine is somewhat of a special case, but the lease I'm going to get will end up being about $313.00 a month and I was told it's 30k miles a year, four years, insurance included.