04-07-2007, 02:55 PM
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Scuderia Ferrari Tifosi
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Join Date: Mar 2005
Location: Bay Area, CA
Posts: 6,500
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If you are talking about financing then yes it applies. But if you are talking about a lease the residual value or "how much you pay for the car" is only a portion of the depreciation plus the money factor. The Cap Cost of the car or MSRP does not really come into play and becomes only relevant until you need to either sell the car before lease term ends or actually purchase the car after the lease.
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Originally Posted by fiber46is
Yep, Jeep SRT can outrun real sports cars.
A little O.T. but, this is something I don't understand.
Not referring to you lovinthex5, but just in general.
Why people start negotiating about the monthly payment first, do they realize how much they actually pay for the car.
Sure, if I need a loan when bying a car, I also first think how much I can pay in a month, but that being said, I also think how long I want to pay and what's the loan amount I need/want.
Ok, I have figured that out, now I go to dealer who has the car I want and start negotiating on car, and all I'm interested is how much difference I need to pay to trade car, not the monthly payment. And if we have agreed the price, then I may ask what's the financing from the dealer and compare that to rate my bank gives me and take the cheapest offer.
I'm just saying that if you are interested on monthly payment only, you don't know how much interest and other fees you are paying, it can be anywhere between 0.5 and 12% or higher.
Have you watched King of Cars on TV, on A&E. There you can see that all customers in the show care about is the monthly payment only, nothing else.
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