Jaguar Lease question

A friend of mine is looking at leasing a 2007 Jaguar XJ8-L (not my first pick but each to their own)! Anyhow, he wanted to find out if the lease offer they are giving him is a fair deal. I have never leased a car so I thought I would ask here to see if any of you have some insite. Here are the details:

MSRP - $72,650
Actual price - $67,100
Add cap costs - $1,094
Rebate - $3,550
$ Down - $5,000
Adjusted cap - $59,644
title fees - $174
captax rt/amt - 6%
monthly sales Tax - 7%
total monthly pmynt - $911

15k yearly miles
lease end value - $39,200
LEV% -54%
Money factor .0001


Please let me know what you think!

 

What is the length of the lease? To determine if it is a good deal will require knowing the length. Looks like about 24 months. The money factor is excellent, next to nothing. The lease will guarantee he does not get burned on depreciation. Generally you want to put as little down out of pocket on a lease as possible. He needs to pay the inception fees, tax, title and license. Keep as much money as he can in his pocket as he will get none of it back at the end of the lease.

Tell him to remember that if he wants to purchase it at the end of the lease he will have to pay sales tax on the residual value. He pays sales tax on the sales price at the beginning and sales tax again at repurchase time. Not a good idea to keep a leased vehicle after the lease ends......

 

Thanks James... it is for a 2 year lease. He is putting it through his wife's business. From what I had read, the money factor seemed low. I will pass along your comments.

 

You should post this on edmunds.com. They have moderators that comment on lease deals specifically.

Go to the Jag forums there.

 

I will check there too... thanks!

 

American leases are so cheap compared to the UK. Looks amazing value from here.

Do Americans get fleeced with a company car tax as well? (We do)

 

http://cgi.ebay.com/ebaymotors/Jaguar-XJR-SUPER-V8-CER-03-XJ-SUPER-V8-CERT-TO-100K_W0QQitemZ220121876533QQihZ012QQcategoryZ31848QQrdZ1QQcmdZViewItem

The smart money is buying the ones off leases or low mile private cars of certain years. Whatever Jaguar you would lease won't compare to that car in both power and comfort for the same money. 2003's are a great year and the car above is more upsacale with something to show for it after 24mo.

I can't say I've ever wanted to lease a Jag before. I suppose there are worse ways to blow 25 grand.

Sunny

 

I would buy a used one too... I suggested it to him but he wants a brand new one and wants the full warranty because his wife will be driving it daily. Thanks for the comments though guys!

 

I think that James hit the nail on the head. If your friend is dead set on leasing I would NOT put 5 grand down on the lease. If he really wants the car the and the 900 payment is right on then swallowing the additional 200 or so in increased payment (24/$5K) is probably the way to go. With the money factor at .001 he should not even be considering putting any money down on these things. Down payment money is never protected in a lease, if the car is stolen or totaled this money is not refunded back to the customer, they bear all the risk.

You should let your friend know that Ford X plan may save him even more money. X plan is the discount that Ford offeres to friends and neighbors of Ford employees. I have never looked at a Jaguar, but I do know that the local Volvo dealership was going to give me X plan by just asking for it on a new S80.

 

I have heard that another way to keep the payment lower without putting up such a large payment is to offer up multiple security deposits (I think seven may be the max). This allows the lessee to lower their monthly payment, and recapture some of the up-front money at the end of the lease.

Not sure about any more of the details - can anyone else chime in on this one?

 

The car I linked is Select Edition qualified, 6yr/100k miles with no deductable covered until 2009. All you would need to do is change the transmission fluid and stay off the loud pedal for decent mileage (25-26mpg highway). The warranty would add a thousand or two to the price.

I understand you were just looking for lease advice which I have none to give. I'm glad I'm not alone in thinking he's a crazy mofo for wanting a new one!

 

WOWIE!! Those things depreciate fast. Sheesh, it's like a buck a mile off of MSRP. Lease new or buy used.

 

Rusnak Jaguar had a deal a while back for $700 something a month. I drove it, didn't like it. Passed.