Need help quickly!

[JimNasium]

Hey, all - great forum and resource here. I was at the dealer today ready to pull the trigger, and pulled back at the last minute due to the lack of transparency on what I'll actually pay to buy out my new GT1. So I'm looking for any input on whether I should buy outright (cash buy, no financing) or lease and then buyout (also straight cash buyout).

Situation:
Invoice (base plus packages and a couple of accessories), including $900 shipping: 43458
Deal: Invoice + $100
Trade: $8500
"Lease cash": $5600
Rebate: $750
Acquisition fee: $650
Doc fee: $599
Tennessee tax: 2594.45

Out the door price minus trade and rebate: $37663

I'm really struggling to understand the lease part - have never leased a car before. Trade and cash is $14,100 "due at signing", and there's the $650 "acquisition fee". I intend to buy out the lease ASAP - this dealer says I have to pay three payments before I buy it out according to someone they spoke with at KMF. Monthly payment is listed as $340. Taxes on Tennessee leases are calculated on each monthly payment rather than rolled into the capitalized cost, so I suppose I would save a fair amount in tax by just paying it off. There's a turn in fee listed if the vehicle is not purchased of $400 - I think this is $300 if I buy the car out.

The lease paperwork says the agreed upon cost of the vehicle is the invoice plus $100 cost. The starting line which includes other items is $44801. Take away the trade, case, etc., and that leaves $31737. Residual value is listed as $24565 - I understand that's taken as a function of MSRP and not negotiated price.

There's a warning in the lease about early termination and a substantial charge "up to several thousand dollars" - I assume this is if I don't purchase.

So, how do I figure out how much I'm paying if I lease? Assuming I have to pay 3 payments (total of $1320, the residual value of $24565, the $300 acquisition fee, and the $8500 trade for a total of $34685. This can't be all - I'd also imagine I have to pay the depreciation (listed as $7171) and would not have to pay the rent charge of $4256. I would also not have to pay sales tax on those payment, so would have to only pay sales tax on this amount. This total (without sales tax) is $41856.

This lease thing now seems much more expensive than outright buy. Did I do the math right? What is you guys' opinion?

Thanks! Any help between now and this afternoon would be much appreciated!

 

[mldavis2]

There is also a financing option with balloon payment buyout. It depends on the state in which you purchase the car, but in many states, it is a state law that you may buyout the car at any time with no early payment penalty. Finance rates right now are high (7% or so) but if you are buying it out, there shouldn't be any minimum number of payment months prior to buyout.