Hi,

I've placed an order for a 2002 Corvette convertible and with in a week or so will be going into the dealer to sign some papers. I have been told offhand that the money factor would be 6.5% or .0027 (eventhough i was told that they haven't gone through the banks to see what rates are available to me). First of all, is that right? Is it possible for them (the dealer/sale/F&i guy) to know what the rate is already? Secondly, without having gone through the banks and not knowing the rates, they were able to give me the approximation for the monthly payment of $748 (12k miles for 48 months). The $748 that they gave me, is that amount the amount that they already have set in mind without taking into consideration what the possible money factor is beforehand? In other word, are they trying to rip me off and have me pay more than i should? The resisdual value of the car, supposedly they said, at the end of the term will be $25,000 (which i think is ridicously high 4 yrs from now.) Cap cost reduction (down payment) is $4,500.

Thank you for any help or suggestions that you can offer.

P.S. I just find it quite odd that without having gone through the banks and not knowing the possible rates, that they're able to grab $748 out of thin air. Perhaps i'm wrong. By the way, how does one calculate the luxury tax for this particular car? What's the equation? The negotiated price for this car is $47,430.

<font size=-1>[ This Message was edited by: SSR on 2002-01-30 17:31 ]</font>

The deal from your dealer sounds really bad.

Doing a quote using our http://www.LeaseCompare.com module I show a 48 month payment of $582 + tax (includes luxury tax and bank fee). The money factor is .00237 and the residual is $23,606. You can go 51 months for $557 + tax.

You can use our leasing service and still get the car from the dealer.

Luxury tax is 3% of the purchase price over $40,000. So in your case 3% of $7,430 = $223.

Please let me know if I can be of further assistance.

-Tarry Shebesta
Forum Moderator

<font size=-1>[ This Message was edited by: Tarry Shebesta on 2002-01-31 14:49 ]</font>

It seems to mee too that you are taken to the cleaner's...

Our company http://www.thevettenet.com, partner of http://www.ACScorp.com was able to provide Corvettes for lease customers with discounts between $5500 and $6500 off MSRP on select combos after the $2002 rebate from GM.

Feel free to email ken@thevettenet.com or call 877-838-8363 and we may be able to save you more on the price of the new car.

Cheers,

Ken Mihai
President
THE VETTE NET

Tarry and Ken, thank you for both of your inputs and thoughts. I totally believe that the quote that they gave me is absurd. However, i will take a look at their numbers first before contacting ascorp. I am sure i will most certainly go the ascorp route.

Ken, you said that your company is able to save more on the price of the new car. Is it possible for you to be able to renegotiate the price on an already ordered car? Car that i ordered and due this week is 2002 vert, blk/oak/oak, MN6, BSM, license plate, 1SA.

Tarry, i put in all the required informations on your Auto Lease Quotes program and it gave me $640 a month for a 12k, 36 months lease (for perfect credit). I've looked up Edmunds.com, prior to founding Leasecompare.com, and they offered "Calculate Your Lease Payment" section. Well, just for thrill i put in all the suggested variables that Edmunds suggested one should put to get a possible lease payment and i wasn't able to get anywhere close to the suggested $640 that your program provided. $47,430 minus $27,107 = $20,323 (Purchased price - Resisdual Value = Depreciation over 6 months). Then Edmunds suggested Depreciation divided by 36 months equals monthly depreciation payment...$20,323 divided 36 = $564.53. Then, (Net capitalized cost + Resisdual) x Money Factor = Money factor payment factor. (47,430 + 27,107) x .00247 = $184.11
Finally, add the money factor payment factor to Monthly Depreciation Payment and that's the possible monthly payment. $564.53 + 184.11 = $748.64

Question: is that the proper equation to calculate a lease payment? Obviously, i must either have been way off OR the suggested equation by Edmunds must be off since i didn't come close to what Auto Lease Quote coughed out. Hope i was able to make myself clear with the 3rd paragraph.

Again thank you for your time and input. Your site has been a great source for information when it comes to leasing bar none.

<font size=-1>[ This Message was edited by: SSR on 2002-02-04 16:23 ]</font>

<font size=-1>[ This Message was edited by: SSR on 2002-02-04 16:25 ]</font>

Yep! That's the correct formula. Click on the payment from LeaseCompare.com to ensure you are using the right figures (rate & residual).

What MSRP and miles per year did you select?

-Tarry Shebesta
Forum Moderator

Hi SSR and thanks for the nice words...

I appreciate the opportunity to help and here are my thoughts:

- you ordered a very specific combo and I do believe you have an agreed price with the ordering dealer. I'd love to earn your business, but I believe you can try this on your own first: simply ask your dealer to "better" the deal according to what the market does. There isn't as much mark-up in a lesser equipped Vette, but I believe you should be able to save $3000-$4000 (+ the $2002 rebate) off MSRP

- in case you cannot find understanding locally, we may be able to find you a different Vette. I am not sure there are too many like that out there equipped like that, but even if we find one with more options, and we can save you more, we'll be close to your price. In other words, with the same money you may get a more loaded Vette.

-then, you will be saving even more by leasing thru ACS, so basically I think you'll be better off with a more loaded Vette for two reasons: same payment + more car...

Again, these are some thoughts, I need to find out more from you before we offer a specific solution.

Feel free to call or email.

Ken
http://www.thevettenet.com

Interesting discussion.

when you say xxxx off msrp (+ 2002 gmc money) do you mean the quoted "off msrp" number includes the factory money? or those numbers + factory money?

Take an example: 2002 coupe, Pref.equip package 1 with the 12 disc changer and 6 speed manual.

MSRP is $44,970 for that car, with a healthy invoice spread. How much room to play in that spread is there? Not including GMC's cash back?

thanks.

Hi there and thanks for the question. Usually Mark-up ranges between $5000 and $5600 for that combo. There are some variables that dealers have (advertising...) that affect the bottom dollars.

We'll be happy to quote you a price based on an actual Vette, so please contact for details. We can save $3000, up to $4000 off MSRP depending on the combo.

THE VETTE NET
http://www.thevettenet.com
877-838-8363