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General Questions about Leasing Vehicles

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  • jvosjvos Posts: 61
    MSRP for non-NAVI TSX with auto is $28,190. Destination fee is $715. Both per Edmunds.
  • kyfdxkyfdx Posts: 27,889
    $28905 MSRP
    $29310 CAP cost (OTD + $595 acq.fee)
    .00152 MF
    60% Residual

    $403.33 per month

    Due at signing: 1st payment and security deposit

    Did your dealer give you the residual and money factor? If not, it's possible they are marking up the money factor for extra profit.

    Hope this helps,
    kyfdx

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  • jvosjvos Posts: 61
    kyfdx -

    Thanks! They claim this is the Acura lease special with money factor .00152 and residual of 60%.

    Does it matter that its Illinois? I've read that tax affects payments differently.
  • IL is a screwy place to lease so that could be effecting things.
  • kyfdxkyfdx Posts: 27,889
    Well.. Illinois does tax the entire purchase price, but it looks like your figures account for that..

    I know Chicago has a monster tax rate on leases.. but, unless the amount of tax is wrong, I don't see where they can find an extra $40/mo..

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  • jvosjvos Posts: 61
    kyfdx -

    Thanks. BTW, residual is 59%.
    Could you possibly point me to the lease calculator you are using? I was going to go into the dealer tonight and try to get this on paper. Definitely feeling I should be around $400/month.
  • kyfdxkyfdx Posts: 27,889
    No calculator.. just a spreadsheet..

    1% lower residual results in an increase of about $7.60/month... taking you up to around $410/mo.

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  • jvosjvos Posts: 61
    spreadsheet! even better. What would it take to get that?
  • kyfdxkyfdx Posts: 27,889
    Let me work on it..

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  • Hello, I've always let the dealer get financing for me on my leased vehicles in the past. This time I'd like to secure my own financing for a vehicle I'm trying to lease. Can you recommend any good leasing companies to go through ? Thank you
  • jvosjvos Posts: 61
    My thanks to this forum and in particular kyfdx.

    We got our TSX for $409/mo due completely to the power of knowledge and information.

    What's more, it was exactly the type of transaction I like - all negotiation was done before I ever set foot in the dealer. When we got there, the car was being detailed, the paperwork was drawn up, we just had to complete the credit app (which was approved during the time the salesman went thru the Acura manuals) and sign the lease. About an hour. Smooth as silk.

    Thanks again.
  • joel0622joel0622 Posts: 3,302
    I don't know of any that are better then the manufacture.
  • volvomaxvolvomax Posts: 5,274
    Leassing is different from financing, in that you cannot go to a bank that does leases and get pre-approved, get a check and take it to the dealer.
    The big banks that do leasing all have the dealers act as their agents.
    So, you have to have the dealer do the lease.

    there are auto brokers that do leasing. However, they buy the car from the dealer,mark it up,and send the lease to a bank same as the dealer.
  • kyfdxkyfdx Posts: 27,889
    They are a broker.. They get most of their markup from the bank that is doing the lease.

    However, none of that matters if the lease is cheaper than what the dealer will give you...

    They are a reputable company, based in Cincinnati. Started by a dealership group, but they'll arrange lease financing on any car from any dealer.

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • reufimreufim Posts: 13
    At the end of 2004, I leased a 2005 X3 2.5
    I have decided to buy it at the end of my lease (coming up end of Nov 2007). It has 23,000 miles and is in perfect shape.
    Can anyone give me advice on how to prepare well to buy this car - what I can do to get the best deal and avoid any over payments?
    I have never bought a car after leasing it so am unsure on how it goes and how much negotiating room I have.
    Any assistance is appreciated.
  • cccompsoncccompson Posts: 2,388
    If I'm not mistaken there should be a buy-out price right in your contract. If not, call whoever you're leasing from for the number. They'll be no negotiation.

    Once you have the number, compare it with what the vehicle is worth. If it's worth more, buy it without a second thought. If it's worth less, well, only you can decide if you're willing to pay over market for it.
  • vacatavacata Posts: 2
    I've always been of the opinion that if something is too good to be true, it usually is. That's why I'm suspicious of a leasing company I found on swap-a-lease. It sounds like I can get the Mercedes R350, P1, for $349/mo with $2750 cap reduction. Term is 33 mo with 10K miles. The way it was explained to me was that this lease company gets large discounts from Mercedes if the buyer is affiliated with a large company. They purchase the car from MB (dropping that large company's name), lease it to me, and set up the leasing through MB financial.

    It just doesn't feel right to me. But if the leasing is truly through MB financial should that be all that matters (assuming the vehicle I get is the one I want)?

    Have you ever heard of such a company? Or is this some scam? Any help/guidance is appreciated.
  • Sounds very fishy. Special lease on MB website is $499 for 33 months with $4,044 down, the spread is too big to be true. Try to get all the detailes - cap cost, residual, money factor, terms...
  • bodble2bodble2 Posts: 4,519
    If you do a single-payment lease, is it possible to apply a trade against the lump sum single payment and save on the sales tax?
  • volvomaxvolvomax Posts: 5,274
    Depends on the State, but in most cases yes.
  • scottinkyscottinky Posts: 194
    looking to lease a CPO 04 A4 Quattro. WE are adding some neg equity to this deal.
    Here it is:

    Car is $26K
    $2500 down
    neg equity is $11,500
    trade $4600
    residual $10,340
    money factor .00060 through Audi
    48months at $499 all taxes

    we are trading a 1995 C220 with 64K. Not sure if I want to pull the trigger
    on this, but I dont like having two cars out of warranty. Oh, the A4
    has 6/100K warranty and 25K left of Audi care maintenance. this lease rate
    from Audi expires tomorrow, although if it is a bad deal, I don't care to let it go.
    our car is in (knock on wood) ex. mechanical shape.
  • bodble2bodble2 Posts: 4,519
    Thanks! I'll enquire about local laws. (Some people will probably wonder why do a single payment lease? Shouldn't I just buy instead? But I guess that's for another discussion! ;) )
  • volvomaxvolvomax Posts: 5,274
    I'm not a big fan of the 1 pay.
    It really doesn't give you any advantages over a traditional lease.
    It just ties up capital.
  • bodble2bodble2 Posts: 4,519
    Yeah, I agree. The one advantage would be lower lease rates. And if I can net out the sales tax on a trade, then that would be a big plus.
  • volvomaxvolvomax Posts: 5,274
    Lower lease rates with who?
    Most banks don't do them.
    The captives do, but the rate break is very small.

    Esp if the rate is subvented already.
  • bodble2bodble2 Posts: 4,519
    BMW for one. Their lease rate will drop for a 1 payment.
  • reufimreufim Posts: 13
    I have a leased x3 2005 with 23,000 miles that I can buy from the dealer at about $22,000 with tax included (about $25 per month for 5 year loan). Also, BMW is offering a lease of an x3 2008 new for $399 per month for 3 years.

    I would appreciate anyone's thoughts on whether I should buy my current leased car or get into a new lease as stated above.

    Thanks.
  • kyfdxkyfdx Posts: 27,889
    That 2008 model X3 will end up being a lot more than $399/mo.. By the time you add options, you'll be around $500/mo., with probably $4000 upfront.

    $22K is dirt cheap for your 2005 model.. I assume it has few options? Will the dealer add the CPO warranty for that price?

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  • reufimreufim Posts: 13
    They have a special deal now for $399 per month for the basic model (automatic transmission) with only $1,500 down. My current x3 is an automatic, with the double sunroof, and that's it.

    So in essence, by the end of the 3 years, if I lease I would end up paying about the same as if I bought. The difference is that if I buy I would have two more years of payment, and the car would be 6 years old with about 50,000 miles. Also, by the end of 2008, if I buy, I would be without a warranty at that point.

    I haven't checked if the dealer would add the CPO warranty for that price. Actually, I would be buying it from BMW financial and not the dealer.

    Curious about your thoughts knowing all this now.

    Thanks.
  • kyfdxkyfdx Posts: 27,889
    Well.. the best deal that I see on their website is $450/mo, with $3400 due at signing.. Not that you can't beat that deal with a motivated dealer, but I'm guessing that the final price will be a good bit higher than $399.

    But, never mind that...

    Given how few miles you drive (8K/yr?), I think buying your current vehicle would be a better deal. I rarely say that about X3s, because they do have good lease deals, but your buyout price is nice and low.

    RE: CPO..

    BMWFS can sell you the 6yr/100K warranty that is exactly the same as the CPO warranty.. I'm guessing that it will be around $2300-$2700.. That will kick in, once your original warranty expires, in another year.. Given your low mileage use, that is pretty stiff for just two years of warranty. Plus, that won't extend the included maintenance plan (that would be another $1200-$1500). I'd go without the extended warranty or maintenance, in this case.

    Alternatively, contact your dealer... Tell them you are interested in buying out your lease, but you want the vehicle to be CPOed. Ask them if they can beat the BMWFS price for residual + CPO warranty. Tell them the difference needs to be substantial. BMWFS sells cars to the dealer for the wholesale MMR price, which may be more or less than your residual. If it turns out to be less than the residual, then your dealer may be able to buy your car, CPO it, and sell it back to you, for less than what it would cost to buy it from BMWFS with the added warranty.

    Here is a link to a relevant post of someone that did just that.

    Good luck... feel free to ask any more questions.

    regards,
    kyfdx
    visiting host

    MODERATOR
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