Leasing 370z offer

Originally Posted by GraphiteZ

It is actually 15%. I don't quite understand how the money factor work.

Here is how I got my number.
Total cost of the car: 31,151+1,967+699+298 = 34,115
Residual of the car after 39 months = 18,984
That means the total depreciation of the car is 15,131

The deal requires him to pay 496 x 39 = 19,344

That means total interest in this deal is 4,213
With an Excel spreadsheet, that is 15.46% APR

Did I do it correctly?

Originally Posted by somatic

youre not accounting for projected mileage

Originally Posted by GraphiteZ

Is that the 12000 miles / year?

Originally Posted by somatic

should be

Originally Posted by GraphiteZ

I think the residual value of $18,984 has already accounted for the 36k miles projected miles by the time the lease end. Think about it this way, $18,984 is more like the price for a 3-year-old Z with 36k miles, than a 3-year-old Z with 0 mile.

Money factor is more like a sugar coated number. At the end of the day, he will be paying $4,000 of interest in 39 months. That doesn't look like 5% to me.

Originally Posted by GraphiteZ

I think the residual value of $18,984 has already accounted for the 36k miles projected miles by the time the lease end. Think about it this way, $18,984 is more like the price for a 3-year-old Z with 36k miles, than a 3-year-old Z with 0 mile.

Money factor is more like a sugar coated number. At the end of the day, he will be paying $4,000 of interest in 39 months. That doesn't look like 5% to me.