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Discussion Starter #1
So I am totally new to leasing cars, but I have been in love with Range Rover sports for over a decade. I have a 2013 BMW 335is and now have two kids I need to be able to transport. So I built a 2020 RRS HST on the site, and sent the build to my local dealer down the street. Can someone let me know if im getting hosed on this deal or not?

36 months lease/10k miles
Build cost 91k
Residual value 52,607
MF .00167
10k down, 12k due at signing
IF my trade in is worth the KBB of 15k, my monthly would be $844
Basically im spending 57k total over the 3 years to drive the vehicle. Seems crazy but I would no doubt enjoy this vehicle every day of my life. Thoughts?
 

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Nice. I also came from a string of BMWs (including a 335 at one point). Very different experience for sure. I'm enjoying my 2020 HSE so far, but do miss some niceties from BMW (mostly to do w/ electronics). Be sure to spend some time playing around w/ the infotainment before you buy because it drives some people nuts. I love coming out in the morning and seeing it in the garage- such a beauty (which is weird to say about an SUV).

I'd suggest posting this question on leasehackr where you'll get more input, but generally:
-Range Rover Sports are always expensive to lease relative to the competition
-Dealers dont discount much (best case is typically 5% off)
-Dealers often hike up the money factor
-With a lease, its better to put nothing down. Thats cause if the car is every stolen or totalled the "gap insurance" will pay off the difference between what your insurance company pays and your remaining obligation on the lease. Any money you put down, effectively, gets lost in this scenario.

Another resource is edmunds lease forums. Google "2020 range rover sport lease edmunds" and find the appropriate thread. You can get a sense of others lease deals, but more importantly, get the actual base money factor (so atleast you know if the dealer is marking it up). Without knowing all the details, on the face of it, your deal seems normal for an RRS. The HST is more rare than the regular SE and HSEs, so that will be a factor as well. With some more research/work you can probably do a bit better. Again, consider putting nothing down. Also worth test driving an HST and HSE back to back if possible to see if the extras included in the HST package are worth the extra $ to you. The mechanical differences come down to adaptive dampers (very nice) and an extra 40 hp. You also effectively get the "autobiography" interior/exterior treatment.
 

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2016-2018 Range Rover Sport
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Agree try not to put any money down on a lease. For your trade-in I'd sell the car to Carmax and pocket that and use it to pay off other stuff or invest and not use it to "pay down" your lease.

To give you an idea, my 2016 stickered for $90k. I'm at 51 months ownership and average 17,750 miles a year (~71,000 miles currently). Edmunds appraises my car for $40k trade-in, but I doubt I'd get that much knowing how car dealers operate. If I guess a value of $33,000, that means it's cost me basically the same amount as your lease but with ownership I've been able to drive it for an extra 15 months and 40,000 miles.
 

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Discussion Starter #4
Great responses both of you. Much appreciated. Never even thought about the down payment issue. Makes the monthly so much lower but yes makes no sense to put anything down. Better of just keeping that cash and having higher monthly rate. Never consider CarMax but wonder if they would offer more than dealership? I am going to go test drive one Saturday. I really hope I don't hate the infotainment system. Ive heard very mixed reviews :/
 

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2019 Range Rover Sport SCV8 ATB (L494)
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Great responses both of you. Much appreciated. Never even thought about the down payment issue. Makes the monthly so much lower but yes makes no sense to put anything down. Better of just keeping that cash and having higher monthly rate. Never consider CarMax but wonder if they would offer more than dealership? I am going to go test drive one Saturday. I really hope I don't hate the infotainment system. Ive heard very mixed reviews :/
CarMax lowballs in my opinion, even relative to "regular" car dealers. I've had two experiences getting offers from CarMax and both were well below what the car was eventually sold for (to another dealer) in one case or traded in for in the other case. Both cars were in very good condition.
 

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Am I reading this correctly that it's $12k due at lease signing plus $15k worth of equity for your trade-in?

If that's the case, $27k up front and $844/month doesn't seem like a good deal. A couple years back I leased a V6 HSE that had an ~$82k MSRP for $5k total due at signing, 12k/year 36mo for ~$820/month including 9% sales tax. I'm sure things have changed a bit since then, but what they're offering you seems too high.
 

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Agree try not to put any money down on a lease. For your trade-in I'd sell the car to Carmax and pocket that and use it to pay off other stuff or invest and not use it to "pay down" your lease.

To give you an idea, my 2016 stickered for $90k. I'm at 51 months ownership and average 17,750 miles a year (~71,000 miles currently). Edmunds appraises my car for $40k trade-in, but I doubt I'd get that much knowing how car dealers operate. If I guess a value of $33,000, that means it's cost me basically the same amount as your lease but with ownership I've been able to drive it for an extra 15 months and 40,000 miles.
Yes it's cost you $57K if you just use $90K -$33K. But what about finance charges? If you paid cash you would still have to make an allowance for opportunity costs.
 

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  1. Am I reading this correctly that it's $12k due at lease signing plus $15k worth of equity for your trade-in?

    If that's the case, $27k up front and $844/month doesn't seem like a good deal. A couple years back I leased a V6 HSE that had an ~$82k MSRP for $5k total due at signing, 12k/year 36mo for ~$820/month including 9% sales tax. I'm sure things have changed a bit since then, but what they're offering you seems too high.
    Yep- if that's the case this is NOT a good deal.
 

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In my experience Carmax has helped. I traded in a 2008 MDX for my car and a 2013 Odyssey for my wife's van and in both times Carmax was at least $2-4k above the dealers' trade-in value. Since I saved on tax with the trade-in we usually met halfway. It's very easy to get an appraisal but it only lasts for a week or so.

Yes it's cost you $57K if you just use $90K -$33K. But what about finance charges? If you paid cash you would still have to make an allowance for opportunity costs.
True, I financed for 5 years at 2.1%. In past experiences Edmunds' appraisal isn't that far off, so the $33k is assuming I get $7,000 less. Probably reality is somewhere in between.
 

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Discussion Starter #10
Going to the stealership tomorrow. I posted on Edmunds forum and found out the base MF is .0018. Im gonna try to get them to lower the sale price more, and give me the base MF or close to it. If they cant ill just walk. I in no way need this car and realize its basically a money pit.
 

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Going to the stealership tomorrow. I posted on Edmunds forum and found out the base MF is .0018. Im gonna try to get them to lower the sale price more, and give me the base MF or close to it. If they cant ill just walk. I in no way need this car and realize its basically a money pit.
Your MF at 0.00167 (4% APR equivalent) is already lower than the base 0.0018 (4.32%), so ask them if they can go even lower.
 

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Discussion Starter #13
Just left dealer. Haggled with them for a bit. They have almost the exact model I want there minus the driver assist package. Its MSRP is 87,914. They offered 15k on my 335is which is about or a little above KBB. Final offer they gave was $820 a month. They started at 932 lol. Thats 10k miles a year. I think the back math puts that at a MF of .00167. Would only pay 2528 at signing. So no cash down payment. Thoughts?
 

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Yeah..2.3% interest is GREAT for a Sport.

You don't ever want down payment on a lease, if the vehicle is totaled you do not get any of the money you put down.

Say, $10k down + $2528 of fees, someone totals the car in a day, you get the $2528 but not the $10k

Generally, through Chase, Velar, Disco 5, Disco Sport is a MF equivalent of 1.5-2%, while the Range Rover and Range Rover Sport generally has a MF equivalent of 6-8% interest.

You must have **** good credit.

$1k off is fairly good for Rover. If you want, you can buy the lowest price Rover you can find in your area (say, scrap money $500 beater) for an extra $1000 Land Rover loyalty.

Dealer will give it to you no issue, it comes as an incentive against the price of the car. I think it was incentive, it's been a while.
 

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Just left dealer. Haggled with them for a bit. They have almost the exact model I want there minus the driver assist package. Its MSRP is 87,914. They offered 15k on my 335is which is about or a little above KBB. Final offer they gave was $820 a month. They started at 932 lol. Thats 10k miles a year. I think the back math puts that at a MF of .00167. Would only pay 2528 at signing. So no cash down payment. Thoughts?
This is a significantly better deal. No $10k down payment and a monthly that's $112/month cheaper is $14k better than the first deal. It's such a significant difference that I'd personally call them out on trying to completely rip you off with the first offer and tell them they need to do even better.
 

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When I leased mine back in 2016 they only took about $1k off MSRP as well. I find Land Rover dealers try to stay fairly close to MSRP on new vehicles. I'm sure people have done better, but I'm not one of them.
 

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Discussion Starter #19
This is a significantly better deal. No $10k down payment and a monthly that's $112/month cheaper is $14k better than the first deal. It's such a significant difference that I'd personally call them out on trying to completely rip you off with the first offer and tell them they need to do even better.
Haha. I actually went ahead and agreed to the terms. I pickup the car Monday :) it’s been my dream car for two decades. Just really hoping I don’t get burned with reliability issues. Good news is the dealership is 2 minutes from my house. If I love it I’ll prob be part of the Range Rover family for life.
 

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Discussion Starter #20
Yeah..2.3% interest is GREAT for a Sport.

You don't ever want down payment on a lease, if the vehicle is totaled you do not get any of the money you put down.

Say, $10k down + $2528 of fees, someone totals the car in a day, you get the $2528 but not the $10k

Generally, through Chase, Velar, Disco 5, Disco Sport is a MF equivalent of 1.5-2%, while the Range Rover and Range Rover Sport generally has a MF equivalent of 6-8% interest.

You must have **** good credit.

$1k off is fairly good for Rover. If you want, you can buy the lowest price Rover you can find in your area (say, scrap money $500 beater) for an extra $1000 Land Rover loyalty.

Dealer will give it to you no issue, it comes as an incentive against the price of the car. I think it was incentive, it's been a while.
Yes 800+ credit score helps :)
 
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