[OKROVER]

I'm new to the forum and have enjoyed reading all the insightful posts.

I searched this topic before posting and haven't seen anything too recent. Here goes: I ordered a 2010 HSE LUX today and it is due to be delivered in May. I worked the deal with the dealer and plan to lease it when it comes in. The dealer indicated that lease terms would be based on date of delivery and not today's rates. I understand that, but was surprised to learn that this month's money factor is a 5% equivalent and the residual is 40%. The residual seems awfully low. Any thoughts on whether this is accurate would be appreciated.

 

[drdread]

Well, your sig says you have/had an '06 HSE that I assume you paid ~$72k if I recall? Well they're now selling for $29-32k. So do the math. LR hasn't done anything to make major inroads on its residuals, which is why I'm really listening to the growing arguments about CPO or other slightly used options. I can't fathom being the dude who originally paid ~$95k for my truck 3 years ago that I just bought for ~$30k. Yeah, MY'10 is a huge improvement to the interior and stuff, but to lose that much value that quickly. I dunno :crybaby2:

 

[remington]

FWIW, the residual on my 2010 Range Rover S/C was 44%. The residual is not a negotiable part of your lease, it's a take it or leave it generally unless you want to change banks, as they are set by the bank. The flip side of a low residual which people generally overlook is that if the bank sets the residual too low and in 3 years the car is worth more than the residual, you can buy it for less than market value. Doesnt' happen much, historically the manufacturers have set unrealistically high residuals in order to move vehicles at lower lease rates. One of the reasons the sh** hit the fan on leases a while back. 40% is pretty bad though.

 

[rangeenvy]

So is it worth to go new versus used?

 

[rjlsat]

Currently residuals are very low, as banks do not want to have inventory of vehicles worth lower than anticipated at lease inception. The difference in financing v leasing is not that much different in the monthly payments over say 60 months. If you do decide to trade in your vehicle after 36 months you will receive equity. However, only you know how long you keep vehicles and your usage and only you can determine your investment in a Range Rover -