Phenomenal residuals, terrible money factors
#1
Phenomenal residuals, terrible money factors
I stopped by my local Jaguar dealer today and spoke to the finance manager about leasing an F-Type. I went from elation to depression in an instant.
The residuals range wildly over the model line, but the very best residual to be had is an unbelievably high 76% (for 36 months!), made even better by the availability of low and ultra-low mileage leases that add 4-5 points to that figure.
An 81% residual is nearly 20 points higher than the previous best I'd ever seen from any manufacturer. I was sure my next car would be a beautiful new Jag.
Then I glanced at the money factors. For 2017 models, they're currently 0.00278 (almost 7%) for most models, with a high of 0.00358, nearly 10%!
So quickly running the numbers on my phone, the depreciation would be only $13,500, but the interest would be almost as much, about $13,000. The same lease with the MF I'm currently paying on my BMW would be almost half the total cost over the life of the lease and would be the deal of the century.
I asked about MSDs or a single-payment lease, but apparently they do not offer the former, and the latter is not enough lower to make it worth the risk.
I realize Jaguar does not set the interest rates (they use Chase for their leases), but I don't understand why Chase is charging such a ridiculous and uncompetitive APR. Apparently they don't want our money.
The residuals range wildly over the model line, but the very best residual to be had is an unbelievably high 76% (for 36 months!), made even better by the availability of low and ultra-low mileage leases that add 4-5 points to that figure.
An 81% residual is nearly 20 points higher than the previous best I'd ever seen from any manufacturer. I was sure my next car would be a beautiful new Jag.
Then I glanced at the money factors. For 2017 models, they're currently 0.00278 (almost 7%) for most models, with a high of 0.00358, nearly 10%!
So quickly running the numbers on my phone, the depreciation would be only $13,500, but the interest would be almost as much, about $13,000. The same lease with the MF I'm currently paying on my BMW would be almost half the total cost over the life of the lease and would be the deal of the century.
I asked about MSDs or a single-payment lease, but apparently they do not offer the former, and the latter is not enough lower to make it worth the risk.
I realize Jaguar does not set the interest rates (they use Chase for their leases), but I don't understand why Chase is charging such a ridiculous and uncompetitive APR. Apparently they don't want our money.
#3
Dealers frequently do get a piece of the pie by adding on to the money factor, but in this case the finance manager was kind enough to show me the actual figures direct from Chase, so that money figure did not include any additional amount.
The dealer is also unhappy about the high MF because it makes it more difficult for them to move inventory, and it prevents them from making as much profit as they typically would because the MF is already so high they can't realistically add to it like most other dealers do.
I hear December is a good time of year to lease. Maybe by then the figures will be more favorable (although I don't expect that residual to last).
The dealer is also unhappy about the high MF because it makes it more difficult for them to move inventory, and it prevents them from making as much profit as they typically would because the MF is already so high they can't realistically add to it like most other dealers do.
I hear December is a good time of year to lease. Maybe by then the figures will be more favorable (although I don't expect that residual to last).
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Smoke Em (06-08-2016)
#6
2016 Coupe (manual): 63%, MF 0.00181
2017 Coupe (manual): 76%(!), MF 0.00278
If you put fewer miles on, you can add up to 5% to the residuals above by going down to 5k miles/yr. Each step is 1% (15k -> 12k -> 10k -> 7.5k -> 5k)
#8
#9
MSRP
negotiated price
months/miles
down payment
monthly with or without tax
#12
Best regards,
Jay
Last edited by RickyJay52; 07-06-2016 at 10:14 AM.
#13
My residual was 74 percent for 12k miles and money factor .00177
I stopped by my local Jaguar dealer today and spoke to the finance manager about leasing an F-Type. I went from elation to depression in an instant.
The residuals range wildly over the model line, but the very best residual to be had is an unbelievably high 76% (for 36 months!), made even better by the availability of low and ultra-low mileage leases that add 4-5 points to that figure.
An 81% residual is nearly 20 points higher than the previous best I'd ever seen from any manufacturer. I was sure my next car would be a beautiful new Jag.
Then I glanced at the money factors. For 2017 models, they're currently 0.00278 (almost 7%) for most models, with a high of 0.00358, nearly 10%!
So quickly running the numbers on my phone, the depreciation would be only $13,500, but the interest would be almost as much, about $13,000. The same lease with the MF I'm currently paying on my BMW would be almost half the total cost over the life of the lease and would be the deal of the century.
I asked about MSDs or a single-payment lease, but apparently they do not offer the former, and the latter is not enough lower to make it worth the risk.
I realize Jaguar does not set the interest rates (they use Chase for their leases), but I don't understand why Chase is charging such a ridiculous and uncompetitive APR. Apparently they don't want our money.
The residuals range wildly over the model line, but the very best residual to be had is an unbelievably high 76% (for 36 months!), made even better by the availability of low and ultra-low mileage leases that add 4-5 points to that figure.
An 81% residual is nearly 20 points higher than the previous best I'd ever seen from any manufacturer. I was sure my next car would be a beautiful new Jag.
Then I glanced at the money factors. For 2017 models, they're currently 0.00278 (almost 7%) for most models, with a high of 0.00358, nearly 10%!
So quickly running the numbers on my phone, the depreciation would be only $13,500, but the interest would be almost as much, about $13,000. The same lease with the MF I'm currently paying on my BMW would be almost half the total cost over the life of the lease and would be the deal of the century.
I asked about MSDs or a single-payment lease, but apparently they do not offer the former, and the latter is not enough lower to make it worth the risk.
I realize Jaguar does not set the interest rates (they use Chase for their leases), but I don't understand why Chase is charging such a ridiculous and uncompetitive APR. Apparently they don't want our money.
#14
#16
Forgot to mention. I'm in SoCal
My deal came out to be 3500 down and 355 per month including tax.
The floor on the finance managers face was priceless...
My deal came out to be 3500 down and 355 per month including tax.
The floor on the finance managers face was priceless...
#17
Btw they have 3 more base cars left. If anyone wants to take advantage of these number just pm me and I'll help you out.
I don't know the residuals for s , r ,
Manual,
Or convertible which makes predicting numbers extremely hard. My numbers are for base automatic coupe.
I know for fact that r residuals are extremely low but can easily be discounted upwards of 20k
I don't know the residuals for s , r ,
Manual,
Or convertible which makes predicting numbers extremely hard. My numbers are for base automatic coupe.
I know for fact that r residuals are extremely low but can easily be discounted upwards of 20k
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