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Discussion Starter · #1 ·
After waiting over 2 months for my Acadia, it is sitting at the dealer's lot an hour away and I'm supposed to pick it up tomorrow. I'm getting the vehicle for $49 over invoice minus $500 Conquest rebate. I'm trying to determine whether it is better for me to purchase or lease the Acadia, however, after speaking to the finance manager, I think they are padding both the lease rates and the interest rates on a purchase. Apparently, this woman thinks I don't own a calculator! ::)

Details: Finance manager said new lease rates came out today from GMAC

7.25 % on 36 or 39 month lease

36 month residual: 63% 12K miles per year Payment: 590 month
39 month residual: 62% 12K miles per year Payment: 570 month


When I use a lease calculator, it looks like they are marking the lease rate up to 8.5%. I'm coming up with a payment of $534 on a 39 month lease -- a difference of $36 per month -- total of $1400 over the life of the lease.


On a purchase, it appears that they are marking up the GMAC 5.9% 36 month rate high as well.

Is this common practice to pad these interest rates or am I figuring these wrong??
 

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baseballmom94 said:
After waiting over 2 months for my Acadia, it is sitting at the dealer's lot an hour away and I'm supposed to pick it up tomorrow. I'm getting the vehicle for $49 over invoice minus $500 Conquest rebate. I'm trying to determine whether it is better for me to purchase or lease the Acadia, however, after speaking to the finance manager, I think they are padding both the lease rates and the interest rates on a purchase. Apparently, this woman thinks I don't own a calculator! ::)

Details: Finance manager said new lease rates came out today from GMAC

7.25 % on 36 or 39 month lease

36 month residual: 63% 12K miles per year Payment: 590 month
39 month residual: 62% 12K miles per year Payment: 570 month


When I use a lease calculator, it looks like they are marking the lease rate up to 8.5%. I'm coming up with a payment of $534 on a 39 month lease -- a difference of $36 per month -- total of $1400 over the life of the lease.


On a purchase, it appears that they are marking up the GMAC 5.9% 36 month rate high as well.

Is this common practice to pad these interest rates or am I figuring these wrong??
Lease calculators generally only calculate the payment based on MSRP, negotiated price, residual factor, money factor (the interest rate for the financing) and sales tax. They often don't figure in the cost for registration, security deposit, wear care, and any other little fee (i.e. nickel and dime) they can legally get away with. On an Acadia, the fees can amount to almost $1800 (which more than covers your $1400 discrepancy).

BTW, the lease rate you quoted is 3/4 of point lower than the Acadia I just leased less than a month ago :angryfire:
Does anyone think it is possible to call GMAC and have them give me the better rate?
 

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Hmmm...I just checked GM's website (as well as GMAC's) and I don't see anything about 7.25% for lease financing. Maybe since the rate just dropped today, they haven't updated their sites yet. Or....maybe your finance person is just blowing smoke up you know where and the rate is still at 8%. Either way, if you don't pay the add'l fees upfront and roll them into the financing, your actual payment will always be a little bit higher than what the calculator comes up with.
 

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Discussion Starter · #4 ·
No, the rate really is 7.25 percent with 62% residual for a 39 month 12,000 mile a year lease. The finance manager said the rates were just released today. She originally wanted to charge me 9% -- then I told her I heard the rate was 8% through GMAC. Then she looked at the papers that just came in and said 7.25%. Great news because leasing works better for me and I didn't want to have to purchase this vehicle.

Okay, after talking with her again, here are the additional fees:

$595 lease aquisition fee (GMAC)
$150 Doc. fee
$120 (tax, title, license blah, blah, blah)
$525 Lease protection plan (protects up to $2000 worth of damage)

Payment is $568 per month with nothing down except first payment. Sound better??
 

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That's a fair deal, I am just not familiar with the $525 lease protection plan that is not a bad idea depending on the fine print.
I am going for my Acadia in about 2-3 months and I would be happy with that offer on the table.
Also about the money factor used in the lease, the 7.25 is decent. GMAC is slow as molasses in terms of reflecting any decreases in the fed prime rate.

Hit them up for a free Mobil 1 synthetic oil change coupon and accept the offer.

What dealer are you doing business with if I may ask?
 

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Discussion Starter · #6 ·
I'm dealing with Buckles Motors in Urbana, Ohio which is about 1 hour from Columbus, Ohio. They have a website but I probably shouldn't post it here. They advertise $49 over invoice on every car and truck minus any incentives at the time of delivery. They said that another incentive came out today which is a GM loyalty incentive of $1000 if you currently own a GM vehicle. (which I don't). $500 Conquest rebate for owning a non-GM vehicle and some other $500 rebate is available only on a purchase.

The $525 lease protection plan is like an insurance which covers up to $2000 of damage. Yes, I'll have to remember to bring my reading glasses for the fine print!!! She said that otherwise there is a $595 security deposit.

Interesting -- the $568 montly payment on my 39 month Acadia lease is the EXACT same payment that I had on a 2002 Yukon 36-month lease 6 years ago with a price of around $33,000. Weird!
 

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great info... im currently in the same situation -- wheter to buy or to lease??
presently im negotiating for my wife's car trade-in value and have no experience with a vehicle lease.
got my vehicle $38,900 (400 above invoice) w/o the rebates applied.

Baseballmom, how much was your vehicle total price?
 

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Discussion Starter · #8 ·
Here is my info:

$37,563

-500 Conquest Rebate

Acadia SLT-2
DVD
Heads-up Display

Good luck. Definitely check out the lease calculator mentioned in one of the "Sticky" posts above.

Also, I may trade our '99 Acura but I plan to keep it separate from the lease and ask the dealer to write us a check directly. You never want to put money down on a lease.
 

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Thanks that helps a lot.

"You never want to put money down on a lease." -- wat do you mean by this?
 

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Discussion Starter · #10 ·
If you google this topic about never putting money down on a lease, you will find a better explanation than I can give. My understanding is that if you put money down on a lease and you were to total the car or it was stolen, you basically lost your down payment -- it will never be seen again. et's say you have put $2,500 down on your lease and the car is either stolen or wrecked. It is better to keep that money that you would have used as a down payment in an interest bearing account and make payments from it each month. You will accomplish nearly the same thing as putting the money down, while assuring that your money is safe in the event something unforeseen happens to the car.
 

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Just remember on a lease you will need to include state sales tax on the monthly payment. For example 568*1.07 = 607.76. Many dealers now quote with sales tax included. When financing you will have to include sales tax on the cost of the vehicle. So with 7% sales tax that would be about $40,192 to buy.
 

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SEL said:
That's a fair deal, I am just not familiar with the $525 lease protection plan that is not a bad idea depending on the fine print.
It's a great idea!!! I just turned in a 2005 Lincoln Navigator with approximately $1500 worth of damage (a conservative estimate) which I paid absolutely zero for because of the lease protection plan Ford offered, which, at the time, was only $250.
 
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