Re: Off Topic: Can this lease be FAIR?

[Umbopo@aol.com]

In a message dated 98-02-09 13:54:40 EST, you write:

<< 
 The dealer wants me to put $2,000 down and pay $428/Month
 on a FOUR year lease. How can this be! He said that the
 interest rates have gone up but wouldn't tell me how much.
 He says that the dealer can buy Jetta GLSs at auction for
 around 11K( with all my options? ).
  >>

Don't fall for it Greg. Sounds like alot to me. 428 per month  + 2000 down
adds up to about 22,500 over the 4 years and no equity to offset that expense.
I bought a new GLX in 1995 with leather and  my total payments (i.e. paying
off my loan and interest + taxes on the purchase) during the 4 yr period  will
add up to 24,400.The car will be paid off but still worth ~11,000 My total
payments (i.e. paying off my loan and interest + taxes on the purchase) during
the 4 yr period  will add up to ~24,400. In other words during those four
years i will have paid about 13,400  for the use of my car , 3350 per year,
279 per month. Performing the same calculation for your car you will end up
paying on average 469 a month or about 190 dollars more. Obviously this is
just a rough /average calculation and  market conditions vary but I still
think it's waaaay to much.

BTW  I can see he's bsing you. He has to tell you the interest rates he's
using to calculate the lease. How does he come up with the number then?
Interest rates are very low at the moment. you should be able to get a car
loan rate in the low to middle  eights, probably lower if you by chance are in
a credit union.


Good luck'
Jose