19.92% apr on a lease with good credit score

[Tiersha]

Maybe I am ignorant but with a credit score allegedly in tier 1 (best rates) for an auto lease with a purchase price of $39,304, 3k cash down for 39 months yet was told my payment would be 599 and change for monthly payment...wouldn't that equate to .0083 on the money factor  or 19.92% ?  How in the world does someone state you are in tier 1 w/ a 5.1% rate yet the numbers  work out to this???

Credit score 730 for auto scores.

Is this where you go from dealership to the place they are financing and ask the actual lender themselves?

[cashorcharge]

Without more details, I can't necessarily back into your payment number

You will need the residual amount (percentage) after your sales price to know exactly how much you are paying over the 3 year term.  Also, do you have a trade in?  

Also, that payment includes sales tax each month and any fees.

There is no reason you can't ask them what the money factor is and the residual percentage.  They you can back into the numbers.  

Though YES...right now, even on Tier 1...most lease money factors are hovering around 9% (money factor around .00388.  Are you sure you haven't transposed a number?

[Tiersha]

22,500 residual. 

The 39k price was with the trade and down already factored in...i.e. ending transaction shows the 39k.

[cashorcharge]

---

@Tiersha wrote:

22,500 residual. 

The 39k price was with the trade and down already factored in...i.e. ending transaction shows the 39k.

---

So you're burrying roughly $16,500 in negative equity into your lease.  While that is doable....and most banks will go about to about 110% to 120% to cover negative equity..... 

Just quick math....$39K over 36 months is $1083 per month without any other fees, taxes or interest...and they're telling you less than $600 per month....something doesn't add up

[Tiersha]

I would be burying 7,247.51 in neg equity.

vehicle price $31,462

aquisition fee $595

Total 39,304.51

reg fee $298

title $106

elec filing fee $50

Cat tax $174.19

Privilege tax (SMFH) $194.68

Down paymet $3k

Total to be financed $37,327.38 on a lease

39 months not 36.

[sccredit]

On a lease with negative equity the negative is not residualized, the negative is paid over the lease term. Which means that $185.83 plus money factor (interest) is going toward the negative equity each month.

[Tiersha]

I am aware that the negative equitry would not be residualized just that of the car which is 22,5.  This to me still does not equate to an almosr 20% apr.  I am also aware of the negative eq being paid each month which is why I did the lease.  39 vs an actual loan term which was much higher.

[dunn2500]

not a chance in h#$% i would sign for that, dont care what the details are

19% is insane, if good credit, thats beyond insane and the customer should have caught it

wouldnt put past anything a dealer is willing to throw at a customer, but if you sign than its done deal.......

[Tiersha]

I understand that it would be a done deal...not done yet.  I was wanting to check my math to make sure I was understanding this math correctly.  I dont know where lse to go to get a good answer.

[sccredit]

What is your tax rate? The lease rate factor has to be off. That lease, without tax, with all of the numbers you provided would be $883 at .0083