[flush01]

so lets say my monthly payment is $900/month canadian... if lease rate goes from 6.9% to 7.75% and residual drops from 59% to 58% ... how bad my monthly payment will be affected when my car arrives, how much extra will they add to monthly payment?

I was reading eventho you agreed on the price, and the contract is signed, they can still add extra $ on delivery if lease rate goes up? is that true ?

[F32Fleet]

Residual, and MF have profound impacts on the payment. I believe there is an inverse relationship between the MF and residual value.

[flush01]

Originally Posted by Socom

Residual, and MF have profound impacts on the payment. I believe there is an inverse relationship between the MF and residual value.

what does that mean ?

[The Chad]

If the residual drops, and the lease rate goes up, then your payment could swell quite quickly. I can't do the numbers right here with the information you've provided. Need final purchase price of the vehicle.

[Upstate328]

I locked my lease rate in NY by putting the deposit down. I do have the option to renegotiate the money factor if it goes lower, but they can't raise it over what I agreed upon. Did you put a deposit down?

[flush01]

Originally Posted by Upstate328

I locked my lease rate in NY by putting the deposit down. I do have the option to renegotiate the money factor if it goes lower, but they can't raise it over what I agreed upon. Did you put a deposit down?

yes i put deposit down, so that automatically means they cant raise it up? because on the contract on the main page it says that "I also understand that the prices quoted may change due to changes in interest rates and residual values from date of contract"

did they write that your rates are locked in and signed that part ?

[Upstate328]

Yep - they wrote the purchase price, deposit, cash due at signing and monthly payment on my order contract (the deal in my opinion), and the sales person said it would only change if it went down and she would tell me if the rates were lower in April than in March when I agreed to it and put my $500 deposit down. I guess I'll see for sure when it arrives, but if they try to change it, the sales manager will have to talk me down off his desk...

[flush01]

Originally Posted by Upstate328

Yep - they wrote the purchase price, deposit, cash due at signing and monthly payment on my order contract (the deal in my opinion), and the sales person said it would only change if it went down and she would tell me if the rates were lower in April than in March when I agreed to it and put my $500 deposit down. I guess I'll see for sure when it arrives, but if they try to change it, the sales manager will have to talk me down off his desk...

ya same here, but read your main page under lesse's acceptance... sh!t can still change

[theroyalwe]

yes it can change... but usually no one would do that unless it has been more than 60 days. contrary to popular belief, you lock the rate in when you submit your app. We always hold the rate for 60 days regardless.

[flush01]

Originally Posted by theroyalwe

yes it can change... but usually no one would do that unless it has been more than 60 days. contrary to popular belief, you lock the rate in when you submit your app. We always hold the rate for 60 days regardless.

well it will take me 4 months to get 335 from the day i signed contract and put deposit... if it does change, can dealership stick to old #'s ? or there's no way they can do that even if you yell at them or threten to cancel your order?

[BMW F22]

I think it's absurd that they would make you pay more for the car now that the rates have changed. I thought once you've signed a contract that's pretty much it. The changes should only be made before the contract was signed.

[theroyalwe]

typically we can get close.. the rates don't usually change so much that it messes stuff up.... meaning that the dealership would eat the difference.

[theroyalwe]

also... every month I review all of my contracts and confirm that it is still covered. after 60 days we need to re-submit so I do it automatically rather than waiting for delivery... each month. that way they are covered for another 60 days. if that happened, you would have been locked in again 2 months ago so you probably have the best rates anyway. I also re-submit the application if the car is going to show up after the end of the month and that month's rates are better than the original ones we signed on.

[John 070]

Originally Posted by flush01

what does that mean ?

It means that he's a law student.

[flush01]

Originally Posted by theroyalwe

also... every month I review all of my contracts and confirm that it is still covered. after 60 days we need to re-submit so I do it automatically rather than waiting for delivery... each month. that way they are covered for another 60 days. if that happened, you would have been locked in again 2 months ago so you probably have the best rates anyway. I also re-submit the application if the car is going to show up after the end of the month and that month's rates are better than the original ones we signed on.

ya but in canada rate went from 6.9 to 7.75%

[John 070]

Originally Posted by BMWE90

I think it's absurd that they would make you pay more for the car now that the rates have changed. I thought once you've signed a contract that's pretty much it. The changes should only be made before the contract was signed.

That's why when buying, the financing isn't usually completed until the day of delivery. That's to the benefit of the buyer as well, as the money shouldn't change hands until the buyer has possession. Sure, I'd love to buy a million dollar home in LA at 2001 prices. But I wasn't prepared 6 years ago to do so.

[SteveMD]

Originally Posted by Socom

Residual, and MF have profound impacts on the payment. I believe there is an inverse relationship between the MF and residual value.

There is no relationship between the MF and residual. They have nothing at all to do with each other.

I think what you were trying to say was that when MF goes up, so does your payment and when residual goes up down goes your payment. This is true.

And to the OP, you are entering into a significant financial contract - an automobile lease. Don't you think that it would maybe be prudent and in your best interest to actually understand what it is that you are doing? Learn to calculate a lease.