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General Questions about Leasing Vehicles

Kirstie_HKirstie_H Posts: 10,824
Ask 'em here - questions about specific models should still be placed in discussions about those vehicles.

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  • d1aned1ane Posts: 6
    Looking to lease a new car-first time buyer so I have many questions. however for this thread i want to ask about incentives for recent college grads...any truth to that and how can i make the dealership aware of this?
  • Why do people lease cars? Doesn't it mean that they are always stuck with a car payment and will never own their cars?
  • Kirstie_HKirstie_H Posts: 10,824
    That debate is being covered in Leasing vs Purchasing

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  • Kirstie_HKirstie_H Posts: 10,824 is the only Web site to identify the best lease deals using a numerical formula rather than subjective opinion. The calculation takes into account the average transaction price of the car and then determines the savings provided by the lease.

    Currently, the top five lease deals available nationwide are:

    2007 Audi A4 2.0T Quattro sedan
    24 months, $379/month
    30,000 total miles
    $954 drive-off fees*

    2006 Mazda Mazdaspeed 6 Sport
    24 months, $269/month
    24,000 total miles
    $2544 drive-off fees

    2007 Saab 9-7X 4.2i SUV AWD
    27 months, $429/month
    27,000 total miles
    $2999 drive-off fees

    2007 Mercedes-Benz CLK350 3.5-liter V6 coupe
    27 months, $449/month
    22,500 total miles
    $3994 drive-off fees

    2007 Subaru Outback 3.0 L.L. Bean Edition AWD
    24 months, $299/month
    20,000 total miles
    $2923 drive-off fees

    *”Drive-off fees” include lease acquisition fee, first month’s payment and any required capital cost reduction (down payment).

    According to Edmunds, of course. Agree, or have you seen a better deal?

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  • I am interested in a 12-month lease, non-vehicle specific at the moment. I know 12-month leases are "possible" because I have read a little about them before; like with a one-payment lease. But my concern is, how "available" are these? Most, if not all manufacturers' websites only advertise or provide calculators for leases of 24 months or more. Would these have a ridiculous MF? Any feedback is appreciated.
  • kyfdxkyfdx Posts: 27,708
    I know that Infiniti had some 12 month lease specials a few months ago on the '06 FX and G35 models...

    That is the only recent instance that I can think of.. The total cost for 12 months was around $6K, which isn't too bad of a deal on a lease that short..

    Generally, you have to go out to 24 months to get a reasonable deal.. and that is only on select models... If they aren't running a special on the short-term leases, they are way too expensive...


    Prices Paid, Lease Questions, SUVs

  • cccompsoncccompson Posts: 2,388
    As the host said, it's virtually impossible to do 12 month lease on a new car for a reasonable amount of money. I did it once years ago on a Grand Cherokee. It was some sort of dealer promotion and seemed then (and now) a once in a lifetime sort of thing.

    There are some lease assumption websites around where you can find a wide variety of short term opportunities.
  • I’ve been looking to get into a new car since my ’03 LR Freelander is coming due in April. I pay 295 pm so I’m a bit shocked by some of the quotes I’ve been getting.

    I’ve been reading a lot of leasing tips but there’s so much involved that I’m becoming a bit overwhelmed and I’m not sure how to apply the information that I’m reading. :confuse:

    I’ve been pricing several different cars to see what I can get that fits my criteria. My requisites are: $300-$320 pm, $2500-$3000 TOTAL out of pocket and 15k miles per year. I also need a 3rd row seat and AWD. I’ve considered Saturn’s Outlook, GMC’s Acadia, Buick’s (now discontinued) Rendevouz, Toyota’s 4Runner and Highlander, and Mercury Mountaineer.

    I’ll use my experience at the Chrysler dealer as an example. The Touring version had an MSRP of $31,110, dealer said he’d give it to me at his price of $29,110 (now that’s 31,110 - $1500 Chrysler cash for $29,600) and he’s knocking another $500 off. (I didn’t ask for the money factor or residual because I felt the lease payment of $339 he quoted was still too high) Here starts the confusion… Edmunds says invoice is $28,588, so did he give me a good price or was there more room to negotiate down??? If there’s more room, how much more? Do I offer $25k? That’s sounds like a good number to me but probably won’t get me a deal. Help!!

    Also, is there a better time in the year to be leasing? Is September better than February?

    One more question: Is it better to go thru an independent leasing company rather than to attempt a lease thru the dealers’ finance companies?

    Thanks in advance!!
    Mara :sick:
  • cccompsoncccompson Posts: 2,388
    Mara, while your capitalized cost ("price") of a leased vehicle is important, there are other critical factors at play - residual and money factor (in addition to down payment) - that dictate your payment.

    As was pointed out in another thread here today, generally speaking, this is a good time of the year to lease as residuals have yet to decline.

    I assume that you're talking about a Pacifica Touring. If so, your pricing should start at invoice and go down down from there. Figure invoice less rebate less $500 to get your cap cost.

    Since you're not in love with a particular vehicle, you really need to shop, shop, shop for a lease special offered by a manufacturer for a term of 36 or fewer months.
  • Well, actually I am in love with the Pacifica but not enough to pay almost $70 per month (give or take) more than what I pay now.

    So, let me get this straight (using Pacifica example again); if I go in and they've got a vehicle with an MSRP of $31,110 and invoice of $28,588, I should offer something below that number (??). Then any incentives (and my down payment of $2k) are deducted from the agreed upon price (cap cost) to determine my monthly lease payment (in conjunction with the residual and money factor) Right?

    So what if after all this figuring the monthly payment is still too high for my thrift pockets? I'm assuming that regardless of all the pencil grinding involved above, as long as I haven't signed anything I can't be held to any of those numbers.

    I'm just worried that I'm gonna go back into the dealer, forget my steps and blow any chance I have of getting even a decent deal.
  • cccompsoncccompson Posts: 2,388
    You need to do some more research - there's other threads on leasing here with many posts by those who have more knowledge than I do. The problem with something like the Pacifica is that you'll pay more because of its relatively lower residual. Your goal should be zero (or close) out of pocket on a short lease term.

    It sounds as though you got a great deal on your previous lease and are now spoiled. You're looking at 30K plus vehicles four years later and, IMHO, you'll likely have to pay more than you'd like.
  • Ok, I'm new to the forum and my question sounds like it should go here...

    Straight question... I have a leased vehicle, can I legally rent it out to a friend?

    Details... I leased my vehicle, it's through a company and not a bank as far as I can tell, my payments goto the place I bought it from. I have a friend that will be coming up to where I am to work for a week or so every month for at least a year. He takes the train here and wants a car to drive around for work (it's so he can work, but it's not a business car technically). So, when he comes to town by train, and wants my car which he agreed to pay so much per day for, he gets it, pays me, etc...

    Since money is involved, I assume it's considered renting or maybe even sub-leasing because I'm leasing it. Only question is, can I actually do it? Do I need to add anything to my insurance? Anything else I need to know?

    I checked for my paperwork to find anything regarding sub-leasing, but wasn't able to find anything... but I may not have all the paperwork together. I would ask the place I'm leasing it from, but if it is not allowed I don't want them down my neck thinking I'm going to do it anyways.
  • kyfdxkyfdx Posts: 27,708
    Every auto lease agreement that I've seen prohibits sub-leasing. (As do most apartment leases, for that matter).

    Assuming you just let your friend "borrow" your car, there is a good chance that your insurance will have to pay, if he is involved in an accident. If he is at fault, your rates could go up, or you could be canceled.

    Risky... riskier if the leasing company or bank finds out there is money involved.

    Prices Paid, Lease Questions, SUVs

  • audia8qaudia8q Posts: 3,138
    Some lease sources do in fact offer subleasing..but its a little complicated. First you must contact your leasing company and see if you can have your lease assumed...then your friend must fill out a credit applications from the lease company, get approved and pay a lease transfer fee...usually they range from $0-695 depending on the company....If "approved" they essentially pick up where you left off. Here is the hook. Most lease assumptions leave you, the original leasee, on as a co-signer. If your friend fails to pay...your still responsible for the balance of the contract.

    There are also some companies that handle this all for you but I don't have any first hand experience with them....
  • richzrichz Posts: 125
    When leasing are you always borrowing money from the dealer's finance arm? In other words, if I'm buying a Lexus, do I have to borrow money from Lexus Financial Services and therefore have to pay whatever interest rate they decide to charge me rather than being able to borrow from a bank like I could do if I were buying the car?
  • richzrichz Posts: 125
    Is there even a host for this thread?
  • tidestertidester Posts: 10,110
    Is there even a host for this thread?

    Yes, we're here! Generally, the discussions are conducted by the members with minimal input by the hosts.

    Regarding financing, you are under no obligation to go with the dealer's financing. Many people who finance get loans from their own bank, credit union or other source.

    tidester, host
    SUVs and Smart Shopper
  • dtownfbdtownfb Posts: 2,915
    Is this true for leasing?
  • kyfdxkyfdx Posts: 27,708
    You can contact a broker ( for example), and arrange lease financing through an independent bank.

    However, your dealer also has access to independent banks. Most F&I offices have a terminal that searches up to 50 independent lenders, and they can probably get a better rate than you can (though they may mark it up for more profit).

    For popular models that sell at reasonable discounts, the captive financing arm of the manufacturer probably has the best rates, as they have interests other than just what they can make on financing. But, if it is a hot car that isn't being discounted, and there are no incentives, then an independent bank will sometimes have a better deal. But, if that is the case, the dealer will probably use that bank, anyway.

    Hope this helps,

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