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  SHREWD LEASES AND APPLE PIE  
       
 
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Leasing a car is really complicated right? You have to become a leasing Jedi or you are going to get tricked into spending too much?
Before SHREWDLEASE, this may have been true.
So what is the secret sauce that we bring to the negotiation table for you?
How can ShrewdLease save me money?
Take a read of the following and the power of our lease evaluation will become clear.

We can begin with an overview of the components of a lease that you are meant to understand, in order to be considered well versed in leasing, followed by a leasing time line from start to finish.

Pie chart with Gross capitalized cost containing; capital cost, MSRP, fitted options, security deposit, negotiated selling price, dealer acquisition fee, title fees, registration fees and delivery charges. Capitalized cost reduction containing; manufacturer’s rebates, Cash down payment and capital cost reduction. Residual value containing; Lease term, mileage allowance, warranty term and market resale influence. Monthly payment containing; Number of payments, money factor, depreciation, rent charge and sales tax.

START OF LEASE

A consumer is expected to use his skills to negotiate on the many ingredients shown above, comparing them from vehicle to vehicle across dealer to dealer, and lease term to lease term. Putting aside the enormity of this task for now, presuming a consumer moves ahead with a lease he is comfortable with, we can move forward to the lease years.
 
DURING THE LEASE

A consumer makes his payments and enjoys trouble free motoring with fixed month by month motoring costs all the way through to lease completion.

END OF LEASE

At the end of the successful lease, all of the lease charges have been paid, the allowed lease mileage has been driven and the the vehicle is handed back to the leasing company without any additional end of lease penalties being charged by the leasing company.
The consumer has no asset or equity, nor do they have any remaining overhead. (they don't own a car or have any money to show for it) All they now have is a history of trouble fee motoring and an exact cost for the completed lease. 

The completed lease can now be viewed as this:

Pie chart with Exclusive use of a vehicle, containing; Driven a certain mileage, set period of time. Total lease cost, containing; Driven a certain mileage, set period of time.

It should be noted that this end of lease display is a lot simpler and easier to understand than the ingredients of a lease display shown earlier.

SO WHAT MAKES A SHREWD LEASE?

A shrewd lease is a lease where upon lease completion, the overall lease costs are low. If they are higher, the lease was more expensive, so would not be as shrewd.

shrewd lease pie chart versus a poor lease pie chart.

WHY DOES LEASING SEEM SO COMPLICATED?

Before we answer this, you should first consider the following:

WHY DOES APPLE PIE SEEM SO COMPLICATED?

Pie chart containing; Pie crust containing; Flour, salt, sugar, shortening, ice water, vinegar and egg. Filling containing; apples, brown sugar, white sugar, flour, cinnamon, nutmeg, salt, lemon juice, vanilla extract, heavy cream and butter. Topping containing; Flour, sugar, butter and pecan brittle. Preparation, containing; Prepare topping, prepare filling, prepare pie crust, prepare bowl, cooking time and cooking temperature.

A good cook must be able to balance the right quantities of the many possible pie ingredients, prepare and cook them together in the best possible fashion. Once successfully prepared, a good pie can them be be enjoyed by a lucky recipient.
For the recipient however, the prepared pie need only be viewed like this:

Pie chart containing; Overall taste of the pie, containing; Size of the pie, cost of the pie.

There are many different types of apples.
There are many variations on apple pie recipes, each with their own flavor and merits.
There are many different ways to prepare and cook each individual pie......

However, we all know you don't need to know the exact amounts of ingredients and preparation details in order to distinguish a good apple pie from a bad apple pie.

THE SECRET IS IN THE TASTING OF THE PIE.


BACK TO THE QUESTION- WHY DOES LEASING SEEM SO COMPLICATED?

As with apples, there are many different makes and models of vehicles.
There are many variations on lease terms and mileage allowances.
There are many different types of payment terms for the many various leases.

The problem that leasing suffered with until now, is that unlike apple pie, there was no easy way to compare (taste) one lease to the next.

ShrewdLease registered trademarked logo.

SHREWDLEASE- THE TASTE SOLUTION

We showed earlier what makes a shrewd lease, compared to a poor lease, shown again here for your review.

good vs poor lease

Comparing apples to apples is easy.
The shrewd lease above is easily spotted when sized next to the poor lease.
Comparing leases, regardless of size is now made possible with ShrewdLease.com.
We accomplish this by providing a lease measurement (taste) that can be applied to all leases.

shrewd lease pie chart versus a poor lease pie chart.

ShrewdLease takes the overall lease costs, and views them with regards to the Manufacturers Suggested Retail Price (MSRP) and the amount of vehicle use the lease provides.

The MSRP is carefully established by the manufacturer for each and every model, to position their vehicle exactly, inside of the chosen segment of the market place.

The automotive industry uses the MSRP for calculating many values. For instance, used vehicle pricing, lease residual values, insurance premiums, to name but a few, are all linked to MSRP.

Since the Automotive industry relies so heavily on the MSRP for their own calculations, there is little reason why consumers should not also use this value when comparing vehicle leases.

The amount of vehicle use the lease provides for, is a simple calculation of the total lease mileage allowance.

EXAMPLE

This method of analysis can be tested here by yourself:

Pie chart containing; MSRP containing; Total lease cost, exclusive use of a vehicle.

Congratulations if you answered Sedan B. You are on your way to shrewd leasing!

This example is extremely simple to follow. Nevertheless, what it represents is the foundation of SHREWD LEASE® evaluation.

SO HOW DO WE DO IT?

Our leasing algorithms are secret, but in general terms, an overview of the process is:

A silhouette of a vehicle (MSRP), a choice between; Sedan A, 36 month closed end lease, $999 Total due at signing, $199 per month, 12’000 miles per year, MSRP $17’995 and Sedan B, 36 month closed end lease, $999 Total due at signing, $199 per month, 12’000 miles per year, MSRP $28’995.

RECAP

We take the ingredients of a lease:

Flow chart showing; A ShrewdLease website user enters the various lease values as prompted by the evaluator, then ShrewdLease calculates and reviews the total lease costs with regards to the lease mileage allowance. ShrewdLease next reviews the up-front lease charges in view of the total lease costs. ShrewdLease checks the manufacturer’s warranty coverage against the overall lease term. ShrewdLease combines the results of these separate observations and analyses them in the context of the vehicle manufacturer’s recommended retail price. Finally the result of the combined analysis is represented in single metric form. The metric (The ShrewdLeasescore), being linked directly to the fiscal lease values, is a measurement of the value for money that the lease offers. The higher the metric, the better value for money the lease offers the consumer.

Combine them and compare them to the vehicle MSRP:

Pie chart with Gross capitalized cost containing; capital cost, MSRP, fitted options, security deposit, negotiated selling price, dealer acquisition fee, title fees, registration fees and delivery charges. Capitalized cost reduction containing; manufacturer’s rebates, Cash down payment and capital cost reduction. Residual value containing; Lease term, mileage allowance, warranty term and market resale influence. Monthly payment containing; Number of payments, money factor, depreciation, rent charge and sales tax.

Return a single metric, representing the value for money the lease offers.

A shrewdLeaseScore of 7.4

CONCLUSION

SHREWDLEASE=UNBIASED LEASE EVALUATION

We don't need to know the make or model of the vehicle. We don't need to know the state tax rate, or the interest rate being charged, or the discount being offered on the vehicle, or the title and registration fees, or the delivery charges, or the loan origination fees, to be able to accurately measure a lease.
This is because all of these values have already been accounted for within the overall lease numbers. (Total down payment and monthly lease payments)

A HIGHER SHREWDLEASE FACTOR=A BETTER VALUE LEASE

Regardless of whether you are leasing a $136,000 Porsche, or a $16,000 Fiat, the evaluation process is identical. Using SHREWD LEASE®, any auto lease offer can now at last, be scored on an even playing field

 


 
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