[Kami]

When I go to try and lease a vehicle and the vehicle MSRP is $45000, but I get it for $42,000. Is the residual value off of what I paid or the MSRP?

[raptor5244]

It is based off of MSRP.

Residual value is set by the banks. Some banks use 3rd party companies like ALG to determine residual values. You want to try and negotiate the lowest possible selling price you can and then look for the bank with the lowest money factor (interest) and highest residual value in order to get the lowest lease payment.

I believe GM Financial is the only one allowed to lease the Camaro which stinks because the money factor and residual value was horrible. They had it at 53-54% when I went to buy. I had to finance this time around.

[jp23rockstar]

Originally Posted by raptor5244

It is based off of MSRP.

Residual value is set by the banks. Some banks use 3rd party companies like ALG to determine residual values. You want to try and negotiate the lowest possible selling price you can and then look for the bank with the lowest money factor (interest) and highest residual value in order to get the lowest lease payment.

I believe GM Financial is the only one allowed to lease the Camaro which stinks because the money factor and residual value was horrible. They had it at 53-54% when I went to buy. I had to finance this time around.

Do you know why it's just GM financial? No competition means they can set whatever number they want. Basically GM is saying screw leasing and buy instead. They wonder why the sales are down. I would like to lease but I won't with those rates.they have adapt BMW's way of thinking on leasing.

[SuperSound]

Originally Posted by jp23rockstar

Do you know why it's just GM financial? No competition means they can set whatever number they want. Basically GM is saying screw leasing and buy instead. They wonder why the sales are down. I would like to lease but I won't with those rates.they have adapt BMW's way of thinking on leasing.

BMW method is based on the fact that no one wants to keep them now. High maintenance costs and rapid depreciation (exactly why they are great to lease). People are much more likely to keep their Camaros 4+ years. So BMW has to make leasing a priority otherwise they wouldn't sell in the long run.

Sent from my SAMSUNG-SM-G920A using Tapatalk

[jp23rockstar]

Originally Posted by SuperSound

BMW method is based on the fact that no one wants to keep them now. High maintenance costs and rapid depreciation (exactly why they are great to lease). People are much more likely to keep their Camaros 4+ years. So BMW has to make leasing a priority otherwise they wouldn't sell in the long run.

Sent from my SAMSUNG-SM-G920A using Tapatalk

Certainly makes sense.

[Kami]

Originally Posted by raptor5244

It is based off of MSRP.

Residual value is set by the banks. Some banks use 3rd party companies like ALG to determine residual values. You want to try and negotiate the lowest possible selling price you can and then look for the bank with the lowest money factor (interest) and highest residual value in order to get the lowest lease payment.

I believe GM Financial is the only one allowed to lease the Camaro which stinks because the money factor and residual value was horrible. They had it at 53-54% when I went to buy. I had to finance this time around.

I see somewhere its apparently 58%. I seen a pretty nice one for $46,935. What would be the price I should absolutely take it at and the price I shouldn't? Sorry this is my first time and really need advice.

[SuperSound]

Originally Posted by Kami

I see somewhere its apparently 58%. I seen a pretty nice one for $46,935. What would be the price I should absolutely take it at and the price I shouldn't? Sorry this is my first time and really need advice.

Build that car on cars.com to see the invoice price. Also check out the spreadsheet in this thread. Lots of good info there as well. A lot of factors on best price, including how long the car has been on the lot.

http://www.camaro6.com/forums/showthread.php?t=450935

[raptor5244]

Originally Posted by jp23rockstar

Do you know why it's just GM financial? No competition means they can set whatever number they want. Basically GM is saying screw leasing and buy instead. They wonder why the sales are down. I would like to lease but I won't with those rates.they have adapt BMW's way of thinking on leasing.

I heard it was a corporate decision. The few dealers I spoke to were not very happy about it since it eliminated a lot of potential buyers. I leased my 2013 Camaro and they had Ally, US Bank and a couple others to choose from. Residuals for a 2013 2SS 1LE was set at 62% and the money factors were much more attactive.

[raptor5244]

Originally Posted by Kami

I see somewhere its apparently 58%. I seen a pretty nice one for $46,935. What would be the price I should absolutely take it at and the price I shouldn't? Sorry this is my first time and really need advice.

We would need to for you to post the options it has. If that the MSRP price including destination then according to Truecar.com in my local area that car should be in the $44-45k range. There is a competitive lease incentive as well for $500 is you are leasing a car already.

If you are going to lease then you need to post the exact MSRP, residual value, lease term and money factor they are quoting you and then we can basically figure what your payment should be and then you can compare it to their offer.

Based on the info you provided so far I can provide you an estimate.

Assuming an MSRP 46950, 58% residual, 36 month lease and money factor of .0013 (3.1%) and negotiated sales price of $44,500 with $0 down then your lease payment will be around $571 per month plus tax.

[NoClueHyperBlue]

Originally Posted by raptor5244

It is based off of MSRP.
I believe GM Financial is the only one allowed to lease the Camaro which stinks because the money factor and residual value was horrible. They had it at 53-54% when I went to buy. I had to finance this time around.

GM is not the only one allowed to lease the Camaro. Picked up mine today, leased, not through GM.

[raptor5244]

Originally Posted by NoClueHyperBlue

GM is not the only one allowed to lease the Camaro. Picked up mine today, leased, not through GM.

That is good to hear. I wonder if the rules are different by dealer or region? Maybe if the customer goes an secures their own leasing instead of using the dealers offers? What bank was it? Did they set the residual value any higher than GM Financial?

[NoClueHyperBlue]

Originally Posted by raptor5244

That is good to hear. I wonder if the rules are different by dealer or region? Maybe if the customer goes an secures their own leasing instead of using the dealers offers? What bank was it? Did they set the residual value any higher than GM Financial?

Dealers have a lot more flexibility in what they do than they let on. I believe in my case my payment ended up being $5 less a month, so not really a big deal either way.