Welcome back to yet another fun-filled and exciting month of leasing! I too have began researching on what my next lease will be even though it’s still a bit early in the game for me. It can’t be helped I guess. This year has been fairly kind to lessees with a decent number of good leases throughout the year, so I couldn’t help myself from keeping my eyes out for something to replace my G. Anyway, lets get down to business!
Lease Calculator 3.0 is LIVE!
As I mentioned last month, I have been working on a new version of the lease calculator in order to enhance your research experience. Here’s a rundown of what I changed:
Fee Itemization removed, Added “Fees to Roll In”
I didn’t think there was a point to having these fees listed separately (its not like the dealer does that anyway), so to simplify things, all you need to do is decide whether you want to pay them up front or roll them into your lease. However, you still need to have your dealer itemize your fees to be on the safe side.
Cap Reduction removed
Cap reduction is generally a bad idea when it comes to leasing, so no point having that anymore. When faced with the decision to put money down in order to lower your payments, opt for Multiple Security Deposits instead (if the bank allows it).
Added “Miles per Year”
This field will be used to adjust your Deal Rating. Deals that have low payments and more miles are better than those that have similar payments but less miles. More on this later.
Added “Discount off MSRP” , Added Money Factor to APR conversion
These are just visuals for those who want to know how much of a discount they are getting and how much interest they are paying. This information should provide most people with a good way of determining whether buying is better than leasing.
Deal Rating system reworked
The deal rating system has been reworked due to the fact that it only took into consideration your base monthly payments vs the MSRP of the vehicle. For most intents and purposes, that’s not a bad system for 36-month terms. But what happens when you go with the longer or unconventional terms such as 27, 39 or 42? Or what if you are leasing at 10k instead of 15k miles per year? This new rating system attempts to address those issues by separating the payments, term and mileage allowance and giving extra consideration to the latter two factors. The payments accounts for approximately 70% of the rating while the term and mileage take 5% and 20%, respectively. So what qualifies as a good deal? Anything that’s rated 90 or higher, with the more exceptional deals exceeding 100. Anything below 90, use your judgement.