Leasing Options...For Gen V?!?

[Jog]

Just asking....Will there be any leasing options for the Gen V? Maybe the guys from Tomball or Woodhouse can chime in to answer this question. I'm asking on the behalf of myself and all the other broke Viper Lovers of America; who don't foresee the Gen V in the near future, but if they got an attractive deal on a lease option.,,.They just may take the plunge...,Also just wondering how many other guys out there would be interested in leasing the new snake. Maybe I'll get lucky and they'll come out with a special 1 year leasing plan just for me!....

 

[BlknBlu]

THey have in the past.

Bruce

 

[ViperSmith]

I doubt you'd see much of an advantage leasing over financing either way. The residuals for most cars in this class aren't that great (I mean the M5 is 48% after 3 years).

I am sure there will be lease offers, as I am sure there are plenty looking to use their cars for business use. (Leasing being one option)

 

[Kratos]

That would be awesome if they had a leasing option. I hope it comes a float.

 

[Jog]

If they currently don't have any leasing options available....Maybe if enough people show an interest; it just may be something they'd want to consider....

 

[v10enomous]

I was looking at the Pen Fed Payment saver which appears to be a quazi custom lease or balloon loan where you own the cars...

https://www.penfed.org/Payment-Saver-Auto-Loan/

Viper is not in the system so i did a ZR1 and used $70K as the loan amount with $30k down. Ignore the MSRP.

Make
CHEVROLET
Year
2013
Model
CORVETTE
Body
2dr Cpe ZR1
Mileage
4
MSRP Value
$123,690
Residual Value
$40,825
APR
1.74%
Monthly Payment
$567
Final Payment
$41,392
Calculations are based on the loan amount.

 

[ViperSmith]

With your example, you'd have to put $50k down to get from $120 to the $70k loan amount. You are paying the difference of the loan amount and the "final payment"

From what I understand

I could be wrong. I just drank a bottle of wine.

 

[v10enomous]

With your example, you'd have to put $50k down to get from $120 to the $70k loan amount. You are paying the difference of the loan amount and the "final payment"

From what I understand

I could be wrong. I just drank a bottle of wine.

Here it is with a 2013 ZR1 for a purchase price of $120K with $50k down... Yes you either pay the residual/final payment after 60mos or they will refinance it for you. It seems that the year, miles and purchase price change the outcome even on the same loan amount. I saw this and was curious if anyone had gone though Pen Fed.


Make
CHEVROLET
Year
2013
Model
CORVETTE
Body
2dr Cpe ZR1
Mileage
7
MSRP Value
$123,690
Residual Value
$54,700
APR
1.74%
Monthly Payment
$515
Final Payment
$55,215
Calculations are based on the loan amount.

 

[robiferretti]

I've used Manhattan Leasing for specialty cars in the past had a 3 year $70,000 98 supra lease.

www.manhattanleasing.com was the site.

 

[Smog Dog]

I could be wrong. I just drank a bottle of wine.

I use that same excuse all the time! Except sometimes it's a martini.....

Bill

 

[v10viperbox]

You can lease anything you want. Numbers are not going to be subsidized but if you really think you can write it off on your taxes or you want to defer sales tax a bit then it can make some sense.

 

[Jog]

With your example, you'd have to put $50k down to get from $120 to the $70k loan amount. You are paying the difference of the loan amount and the "final payment"

From what I understand

I could be wrong. I just drank a bottle of wine.

Here it is with a 2013 ZR1 for a purchase price of $120K with $50k down... Yes you either pay the residual/final payment after 60mos or they will refinance it for you. It seems that the year, miles and purchase price change the outcome even on the same loan amount. I saw this and was curious if anyone had gone though Pen Fed.


Make
CHEVROLET
Year
2013
Model
CORVETTE
Body
2dr Cpe ZR1
Mileage
7
MSRP Value
$123,690
Residual Value
$54,700
APR
1.74%
Monthly Payment
$515
Final Payment
$55,215
Calculations are based on the loan amount.

I'm no leasing specialist (it's all mumbo jumbo to me )...But if this is the case then I might as well finance the car.. This *****!!....

A friend of mine just leased a 2013 Mercedes Benz ML 350; full value of his vehicle is 64k, he put down $2500 down payment for his lease and his payments are $805 a month for 36 months..So the math adds up!.....How it was explained to me by the leasing agent: They calculate the value of the vehicle for the length of the lease; this equals the Residual Value. The residual value of his vehicle was calculated to around 25k...The Residual Value is what the dealers use to calculate your monthly payment and this also is your finance amount.

Using this example; say the full value on the new Viper would be 120k, then the value of this vehicle for 36 months ( Residual Value )..let's just say 80k..then the 80k should be the loan amount to be financed for the 36 month lease...correct?!?...Or is it a different process for super exotic cars?...Either that or maybe I forgot to carry over the 1...dunno?!?

 

[Lawrenzo]

I asked Bill Pemberton about this and he checked with his finance guy. As of about 3 weeks ago, nothing was available yet. That could, and would most likely change though as there is no real financial reason for Ally not to offer a lease on them.

 

[Jog]

I'm assuming as soon as the leasing options become available, then Bill will let us know. If I were a gambling man, I wouldn't bet on hearing anything on this till at least January of 2013.....Just curious...Are there any leasing specialists out there?!?...If so..Then what are your predictions for leasing options?

 

[ViperSmith]

I doubt you'll see any crazy lease incentives, as others have said. I'd expect typical lease offers for this class of vehicle.

You should be fine getting financing assuming your credit is speculator and income is what it should be.

Though, I don't see the PenFed offer appealing to many, if you are concerned about low payments, dropping $50k for a down payment is probably a pain point

 

[v10enomous]

A lease is just financing the estimated depreciation. The Pen Fed option seems to make more financial sense but the risk involved with the estimate falls on the buyer where in a typical lease the risk lies with the bank.

I'm no leasing specialist (it's all mumbo jumbo to me )...But if this is the case then I might as well finance the car.. This *****!!....

A friend of mine just leased a 2013 Mercedes Benz ML 350; full value of his vehicle is 64k, he put down $2500 down payment for his lease and his payments are $805 a month for 36 months..So the math adds up!.....How it was explained to me by the leasing agent: They calculate the value of the vehicle for the length of the lease; this equals the Residual Value. The residual value if his vehicle was calculated to around 25k...The Residual Value is what the dealers use to calculate your monthly payment and this also is your finance amount.

Using this example; say the full value on the new Viper would be 120k, then the value of this vehicle for 36 months ( Residual Value )..let's just say 80k..then the 80k should be the loan amount to be financed for the 36 month lease...correct?!?...Or is it a different process for super exotic cars?...Either that or maybe I forgot to carry over the 1...dunno?!?

 

[redtanrt10]

Jog, I'm sure that Chrysler will be offering a viper lease on the '13's. Their current finance provider is Ally (formerly GMAC). Their agreement with Ally expires next year, I think in April. They'll either renew w/Ally or sign up with Santandier Bank or Chase. Regardless of who their partner is Chrysler will be offering leases. Viper leases may lag as their not the volume model, they need to get products like Jeep up first.

Here's how leasing works;

You pay the depreciation and you pay a "rent" fee or service fee which is basically an interest rate charge.

As an example, the lender thinks that in 3 years a viper will be worth 60% of the original MSRP, and the interest rate they are charging is 2.4%

If MSRP is $120K, then the residual is $72K, and the depreciation is $48K, Divide the $48K buy the 36 month term and the monthly depreciation is $1,300.

The "rent" fee is more complicated to illustrate, but your paying interest on a $120K note that over time reduces to $72K, easy way to describe is that if you start at $120K and at the end the balance is $72K then over the life of the lease your average balance is $96K ($120K + $72K / 2).

So if the rent fee (interest rate) is 2.4%, that fee would be $192.00 per month in this example.

36 month no money down payment in this example would be $1,300 plus $192 = $1,492.00. In addition all lenders have an acquisition fee of $595-$995 and sales tax varies by state.

If you want to pay a downpayment, it will reduce both the depreciation and the interest charge as described above.

Good luck, Mike

 

[Bill Pemberton Woodhouse]

There have been leases thru Chrysler in the past, the only issue has been that they are seldom aggressive with any new vehicle, so one has to totally view the economics of the program. Of late ( 2008-thru 2010 models ) it wasn't that beneficial payment wise, and of course it is a bit harder to write off as a company car( ha,ha ). With interest rates so low it is a situation one will have to address as they begin to appear on the market.

 

[Jog]

Jog, I'm sure that Chrysler will be offering a viper lease on the '13's. Their current finance provider is Ally (formerly GMAC). Their agreement with Ally expires next year, I think in April. They'll either renew w/Ally or sign up with Santandier Bank or Chase. Regardless of who their partner is Chrysler will be offering leases. Viper leases may lag as their not the volume model, they need to get products like Jeep up first.

Here's how leasing works;

You pay the depreciation and you pay a "rent" fee or service fee which is basically an interest rate charge.

As an example, the lender thinks that in 3 years a viper will be worth 60% of the original MSRP, and the interest rate they are charging is 2.4%

If MSRP is $120K, then the residual is $72K, and the depreciation is $48K, Divide the $48K buy the 36 month term and the monthly depreciation is $1,300.

The "rent" fee is more complicated to illustrate, but your paying interest on a $120K note that over time reduces to $72K, easy way to describe is that if you start at $120K and at the end the balance is $72K then over the life of the lease your average balance is $96K ($120K + $72K / 2).

So if the rent fee (interest rate) is 2.4%, that fee would be $192.00 per month in this example.

36 month no money down payment in this example would be $1,300 plus $192 = $1,492.00. In addition all lenders have an acquisition fee of $595-$995 and sales tax varies by state.

If you want to pay a downpayment, it will reduce both the depreciation and the interest charge as described above.

Good luck, Mike

Wow!..Thanx!...I actually understood everything you said; it makes a lot of sense.

 

[v10enomous]

Here is another way to look at the Pen Fed Balloon loan with the example below. Your purchase price is $120k, you trade-in a $50k car, you make 60 payments of $515 totaling $30,900. So you drive a brand new Gen V for 5 years and your total investment is $80,900. Now you buy the car for the $55,215 residual and if you can sell it for $80k then you pocket $25k. So for a total of $56k or the equivalent of $933 a month you owned a new Gen V for 5 years with a $515 a month payment.

Here it is with a 2013 ZR1 for a purchase price of $120K with $50k down... Yes you either pay the residual/final payment after 60mos or they will refinance it for you. It seems that the year, miles and purchase price change the outcome even on the same loan amount. I saw this and was curious if anyone had gone though Pen Fed.


Make
CHEVROLET
Year
2013
Model
CORVETTE
Body
2dr Cpe ZR1
Mileage
7
MSRP Value
$123,690
Residual Value
$54,700
APR
1.74%
Monthly Payment
$515
Final Payment
$55,215
Calculations are based on the loan amount.

 

[bluesrt]

now if that aint playin games with yourself, i dont no what is......lol

 

[Kratos]

Jog, I'm sure that Chrysler will be offering a viper lease on the '13's. Their current finance provider is Ally (formerly GMAC). Their agreement with Ally expires next year, I think in April. They'll either renew w/Ally or sign up with Santandier Bank or Chase. Regardless of who their partner is Chrysler will be offering leases. Viper leases may lag as their not the volume model, they need to get products like Jeep up first.

Here's how leasing works;

You pay the depreciation and you pay a "rent" fee or service fee which is basically an interest rate charge.

As an example, the lender thinks that in 3 years a viper will be worth 60% of the original MSRP, and the interest rate they are charging is 2.4%

If MSRP is $120K, then the residual is $72K, and the depreciation is $48K, Divide the $48K buy the 36 month term and the monthly depreciation is $1,300.

The "rent" fee is more complicated to illustrate, but your paying interest on a $120K note that over time reduces to $72K, easy way to describe is that if you start at $120K and at the end the balance is $72K then over the life of the lease your average balance is $96K ($120K + $72K / 2).

So if the rent fee (interest rate) is 2.4%, that fee would be $192.00 per month in this example.

36 month no money down payment in this example would be $1,300 plus $192 = $1,492.00. In addition all lenders have an acquisition fee of $595-$995 and sales tax varies by state.

If you want to pay a downpayment, it will reduce both the depreciation and the interest charge as described above.

Good luck, Mike

I've been trying for 20 years to understand how a lease works, and you have nailed it for me in one post. Now finally......I get it!!!!! EXCELLENT POST!

 

[redtanrt10]

Jog/Kratos, Glad I could help, I've been in the industry for 30 years working for captives finance companies such as Chrysler and Hyundai as well as a couple of major banks. I've always found that the leasing is mot very clear even by bright people, it's really pretty simple and just another way to finance.

 

[Malu59RT]

I've always felt that putting the least amount down, and minimizing your out of pocket expenses, was the smartest way to buy a Viper. Knowing that many owners total out their new Vipers, and only being 25 when I got my 2008, I decided a lease was for me. A leasing company handled everything, and the total amount of the car came out to $90,000, my lease rate was over $1400/month. I believe I paid just the first month's payment, and a couple of hundred in fees, and had a Viper. I was allowed 12,000 miles per year, and honestly just drove the piss out of it enjoying it for as long as I could. Now back to the point of minimizing down payment, if I bought the car and totaled it the first month, I would only be out the ~$1400 of my payment. Leases come with gap coverage, and so if the value of the car was less than what I owed, I just walked away, and gap coverage picked up the rest. For those that put down a large down payment, you would be out of pocket for the difference (unless you have stated value, etc.). I figured even after making payments for a year or two, that I was still ahead of buying the car if something happened, especially when the economy tanked and prices on the 08's dropped.

Maybe it isn't as simple as what I've explained, but that's how I understood it. If I was to purchase another car, the balloon payment route seems to be appealing to me, as the vehicle won't be leased, but I would buy GAP coverage, so if the unspeakable happens, I wouldn't be that bad off. Minimum out of pocket up front, and deal with the balloon payment when it comes time. Just me thinking out loud.

 

[SlateEd]

Only other factor to consider in a "best case scenario" the residual value could be set a little higher on the new Viper based on the expectation that they won't be driven many miles and will be more pampered. A lease at 8000 miles per year for 3 years might get considerably higher than 60% residual, in which case you'd be paying a smaller depreciation over the term...
Again, wishful thinking, but not totally out of the realm of possibility. From 2007-10 I had a Honda lease that declared a 62% residual after 3 years at 15k miles per year...

 

[viperbilliam]

It comes down to the money factor or interest rate. With cost of money so cheap these days we should see good leases, especially if the manufacturer wants to sell more cars. I generally find three year lease payments comparable to 6 or 7 yr finance payments. I think you're better off with the latter if you're going to keep the car but if you want to get out to try something new and not hassle with selling the car yourself, a good lease is the way to go. Don't try to get out of a lease early though because the numbers won't look good!

 

[Lawrenzo]

Don't try to get out of a lease early though because the numbers won't look good!

Not true. The advantage of leasing is that you don't pay the whole sales tax bill up front. That means a lower payoff if you decide to sell. Just don't expect to pay an ADM and then get out within just a year. That being said, you will have to wholesale the car at that point, so you need a good buyer(of which there are a few good Viper buyers out there). There is something to be said for not having to deal with retail(sometimes joyriding) buyers on a 640hp beast!