Does anyone have current leasing information?

My dealer quoted me 67% residual on the base coupe (which looks good), but what seems like a high MF 0.00246 (= 5.9% APR) and nothing off MSRP for a 2016.

Does anyone have current Money Factor rates from Chase for Jaguar?

 

It doesn't seem too far off of what they were doing for 2015's as of March. MF for base cars will be higher due to the fact they don't need to subsidize them.

Those numbers seem like a 24 month lease?

 

no 36 month lease, which is why I surprised by the residual.

 

Wow that is a really good residual. You might want to check out PenFed CU payment saver loan. Same principal as a lease but with without the mileage restriction ... Its a good option sometimes when manufacturer MF is high.

 

Lots of missing info to do a full analysis:

MSRP:
Down Payment:
Term: 36 mos.
Monthly payment (can be derived from the MF, maybe):
Residual value: .67 * MSRP

Your MF seems awfully low unless you have a huge down payment.

 

MF has nothing to do with cap cost reduction (down payment) on a lease. The MF is actually high - it was 0.00155 (3.72%) on 2015s for 36 months. You multiply MF by 2400 to get the equivalent interest rate.

I just pulled up the PenFed info and it looks like they're using the same 67% residual but at a 1.74% rate @ 36 months.

 

The MF will be quoted differently based on the lenders's perceived risk. Higher down payment, lower risk. Just like interest rates vary based on down payment. Without all of the info that I noted above, you can't run a 36 month cash flow to determine the effective Internal Rate of Return.

 

Sorry ... but you're just wrong.

Manufacturer finance arms set the residuals and money factor based on term & model. There is an adjustment for credit score for the MF and an adjustment for mileage for the residual ... that's it.

I'm looking at a 2 month old Jaguar rate sheet and there is no difference for MF based on cost cap reduction. I've also have a Porsche and Range Rover rate sheets as well; again, no difference on MF based on down payment. Also just from personal experience of leasing with Audi and BMW ... they don't charge different money factors based on cost cap reduction. Most leases are done with no cost cap reduction - it doesn't make sense to put money down on a lease, if the car is totaled when you drive off the lot, that money is just lost. The most you should ever do would be to cover your inception cost - Acquisition fee, 1st payment, and TTL.

Now, some shady dealers will try to mark up the MF to pocket some additional money on a deal and spin some BS for you, but there is no adjustment to MF for cost cap reductions.

A lease is very easy to calculate. There is 3 parts - Depreciation, Interest, and Tax.

First Calculate the Net Capitalized Cost:
Net Cap Cost = Negotiated Purchase Price + Fees - Incentives - Cap Cost Reductions (down payment)

Then calculate the Residual Value:
Residual Value = MSRP * Residual Percentage

Now you can calculate your payment by:

Depreciation Payment = (Net Cap Cost - Residual Value) / Term
Interest Payment = (Residual Value + Net Cap Cost) * MF
Base Lease Payment = Depreciation Payment + Interest Payment
Total Lease Payment = Base Lease Payment * (1 + tax rate)

 

I don't know about the money factor on the F type, but I've been looking at a new XJ recently and the money factor on those right now converts to an APR which is very close to 0%. It's about as close to free money as I've seen from Jaguar.

 

yeah money factors vary on model and even desgination and has nothing to do with MSRP of the car.

I'm not surprised the MF on some models is really low. Even MF's between F tpye R, S and Base could be different.

The car I'm interested in is a Base 2016 F-Type. My credit is excellent.

 

Shuan, PenFed Auto saver seems very intriguing. I'm hearing about it for the first time today. Whats even more intriguing is the fact that I have some equity built if I use it since I doubt I'd keep the Jag for more than 2-3 years (my turn over rate on cars is high )

I'll read up more about it, but do you know how it works? Do I have to do all the paperwork with PenFed before I go to the dealer and show them some PenFed papers? Also is there any special requirements to join that CU?

 

I've never used it personally, but I did join when I was looking at 911s as their rate was much better than PFS. I have had a few friends that used it or an equivalent payment saver loan at different credit unions.

The good:

It basically works as a lease, but you own the car instead of the finance company and there are no mileage restrictions and no wear and tear charges. At the end of the term, you have a balloon payment that's due. You either sell the car and pocket any extra equity, refinance and buy it (which they will do for you) or trade it in.

There is a payment calculator on their website to help calculate the payments.

The bad:

Some CU's will just take the car back, just like a lease, with a disposal fee of a few hundred dollars. I'm not 100% sure if PenFed does this (edit) The CU's are all using the same funding source for these programs and most say they will take the car back - you want to ask PenFed directly if they do (/edit)

You pay full sales tax just like as if you're buying the car. You really need have a solid exit strategy especially when the residual is set that high.

Pen Fed Says:

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

Benefits
The vehicle is yours, this is not a lease
No prepayment penalties
No wear and tear clause
Sell, trade, or refinance** at the end of your loan term


Here is one CU that does take the car back:
https://www.edgefcu.org/auto-saver.html

Plenty of end of loan term options:
- Refinance remaining balance & keep the vehicle at loan maturity or anytime during the loan term
- Sell it at maturity or anytime during loan term
- Trade it at maturity or anytime during loan term
- Return the vehicle at loan maturity in lieu of making final balloon payment


You have to be a member of the military or make a $15 donation to one of their selected charities ... so anybody can join. You basically tell them the car you're buying, fill out all of the loan paperwork and they will send you a check.

Another alternative is to look at the S models. It might be a higher price, but the MF's were lower for 2015s (i think this will hold true with 2016s as well); however, the residual will not be quite as good. But you might be able to get more car for roughly the same amount of money through JLR.

 

Hmm, if they take the car back then I don't see the point in it yet. The balloon payment at end might negate any MF savings offered, but I'll read up more about it today.

 

Whats the MF on the rate sheet this month for a base? I want to know how much the dealer is adding in there to his quote right now.

 

You don't build up any equity in a depreciating asset. The only way you can ever do that is by paying it down faster than it depreciates, which on the F Type is rather rapidly. You're just paying off depreciation. If you're not going to keep the car for the longer term, chances are you're better off leasing it. If you plan the car to be a keeper, or at least for more than 3 years or so, you're probably better off purchasing it.

 

Also, I saw the lease term sheet on the XJ and can confirm that the MF was impacted only by score and miles.

Some companies such as BMW have a program where you *can* buy down the MF - quite materially - by placing multiple security deposits. This can be a good idea as the effective rate of return on the money you leave is pretty reasonable. There's a ton of info on the MSD program on sites like Bimmerfest. I don't believe Jaguar has this program, though.

 

you're right MF is usually impacted by score and miles. Jaguar does not offer MSD's, I asked.

 

i'll pm you everything

 

yea, you have to make sure they will let you give them the car in lieu of the balloon payment. most other credit unions allow this on the payment saver programs. it should be the same payment saver program that many other credit unions offer as they're getting their funding for this from the same source.

 

I've bought 3 cars using Penfed, 2 using the auto saver loan.

First, you need to join which is really easy if you have any military background. If not, then a $20 donation to the Red Cross will still get you on board.

Next, calculate out the total loan that you will want. So figure out what the total cost with tax, fees etc is. Then put that in the total vehicle cost, and put in whatever you will down pay.

Select the vehicle from the list, the loan period (3 years is the sweet spot for their saver loan) and it will calculate what the cars residual will be and what your payments are.

If you are ready to buy, you can lock that in. Their APR can change at the first of the month, but it usually doesn't. My APR got locked in at 1.74%.

Go to the dealership, buy your car. You don't pay them, only the downpayment or trade in. Penfed will send you a check that you take to your dealer, usually within 3-5 days to pay off the vehicle. At this point the dealer is completely out and you only deal with Penfed.

That's all there is to it. I sold my last car 2 years into the 3 year loan. All I had to do was pay off the loan with the check I got from selling it, then they would release the title to the new owner.

Also after your initial loan period you can refinance it as a normal used car loan if you plan on keeping the car and don't want to pay the final balloon payment.

Penfed will not take a car back, it is yours.