Did you recently take on (or consider) a loan of 84 months or longer on a car purchase?
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Different banks have different timetables for updating their lease rates. Most manufacturers' captive finance companies and major banks run their lease programs on either a monthly or a quarterly basis. VW Credit's lease programs always run for one month at a time, give or take a day or two. They rarely change their money factors during the course of this month.
It is difficult to say how long it will take a reduction in the Federal Funds Rate to have an impact on a bank's auto loan and lease rates. Again every bank is different. However, if I had to give a rough estimate I would probably say that it usually takes around two months before any effects of a rate cut will be seen.
Car_Man
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I didn't have a lot of time to get into the numbers with them, but I'm not about to pay MSRP. I need to get my numbers together, make them an offer, and then see what they come up with.
I have heard this dealer does not negotiate on Tahoe's, and if that is the case I will go elsewhere. When they give me more solid numbers I will post here.
Some good news, insurance will only go up about $10.00 per month for 2001 Tahoe. I was thinking much worse. Of course, there are the yearly property taxes of $900 to think about. My 97 Ranger is looking better and better!
We're interested in leasing a 2001 Mazda B3000 Club Cab/V6. The dealer has told us that there are currently some good money factors and residuals available. Do you happen to know the baet available numbers, so that we can compare them with the dealer numbers?
By the way, the dealer told us that there's actually a better deal available on the 24 month lease, than on the 36. Does that sound right ?
Thanks in advance.
I just leased a 2001 B3000 Ext Cab V6, loaded for 24 months, heard the same thing at my dealership about being better off going 2 years instead of 3. My opinion, I would go 2 years. I just came off a 3 year lease on a '98 Mazda B4000 and wish I had the engine my old truck had. I haven't been impressed with the B3000, but after having a 4.0L V6 for 3 years not surprising. As long as you don't haul anything major around, the truck will be fine. As far as numbers go, here are my lease numbers if they'll help:
MSRP: $19877
Gross Cap Cost: $20352
Cap Cost Reduction: $1917
Adj.Cap Cost: $18435
Residual Value: $12524
Depreciation: $5910
Rent Charge: $148
Total: $6059
Base Payment: $252
Then in our state we include sales tax in the term of the lease so it comes to around 269. Dropped 18 bucks per month from my old lease and considering the situation I was in with it, (read old posts from Feb/early March here for that) I'm satisfied with how it all went. Keep in mind, as soon as this lease is up, I'm heading to the F-150 just because I'm getting too damn big for a Ranger/B-Series truck and I might be moving around more in a couple years with my work. I've been happy with Mazda B-Series trucks and Mazda Credit. I hope all this helps ya out Scott.
Good luck
Chad
Scott225, the person that you spoke with at the Mazda dealership was telling you the truth. Mazda has some great lease money factors on 2001 B-Series models right now. They were also right when they told you that the interest rates are much lower on two year leases than they are on three year leases. Their 2 year lease money factor on 4WD models is by .00060, about 1.44%, while their 3 year lease money factor on the same truck would be .00144, about 3.46%. Both are solid, but the 2 year rate is less than half of the 3 year rate.
Car_Man
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Here's my question, currently shopping for a Mini-Van, priced both the Windstar and Chrysler Town and Country, spoke with a Ford salesman but not Chrysler. The Ford Salesman quoted me a price of $28,500 on an SE w/ MSRP of $31250. I'm aware of the $2,000 back incentive so he actually is working off a price of 29,250. The residual value he gave me for a 36 month lease w/ 15,000 miles per is 42% and the APR of 2% (money factor of .0008333) is this residual actual or is he low balling me?
Secondly what is the residual values on the Town and Country on 36 months w/ 15,000 and 12,000 and is Chryslers current promotional rate on mini-vans of .9% include leases?
Lastly who has the best residual values in the mini-van market? Thanks for your Help.
Gordo
Thanks in advance.
As hard as it may be to believe, the residual value of 42% that you were quoted for a 2001 Windstar SE is right on the money. This might seem a little on the low side, but it is not really all that surprising given the fact that most manufacturers' captive finance companies have become more conservative in their setting of residuals over the past year or so. Generally speaking, you never really have to worry about a salesperson messing with your vehicle's residuals, because they are set by the bank that you are leasing through and are essentially set in stone. Individual dealerships and their salespeople or managers usually have no authority to alter residuals nor would thay have any sort of incentive to do so. Lease money factors on the other hand are sometimes marked-up by dealerships to bake additional profit into deals.
Unfortunately, the special interest rates that you see advertised on Chrysler minivans are only available on vehicles that are purchased and financed through Chrysler Financial. These rates may not be used to lease any models. In fact, as a result of the terrible losses that Chrysler Financial has sustained by providing significant support on vehicles in the past, they have essentially discontinued their supported lease money factors and residual values on all of their models. The only sort of support that DaimlerChrysler has available on its minivans right now is in the form of lease cash, which is usually very similar to (but not exactly the same as) the consumer cash allowance that they have available. The exact residual values for a 2001 Town and Country will vary depending upon the exact trim level of the van that you are interested in. On average though, the T & C's residuals are even lower than the Windstar's. This does not make leasing one very attractive.
The Honda Odyssey and the Toyota Sienna are probably the two minivans with the highest residual values at this point. The 3 year, 15,000 miles per residual for a 2001 Honda Odyssey is 59%! This blows away Ford's and DaimlerChrysler's residuals for equivallently priced minivans. The 2001 Toyota Sienna is right there with the Odyssey at 58% for the same term. So even though there is not really any sort of cash support available on either of these models in most areas, you may find that their lease payments are closer to the domestic models that you are considering than one would initially think.
Car_Man
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The two most important figures that you should concern yourself with when negotiating a lease on a particular vehicle are its capitalized cost and its lease money factor. A vehicle's capitalized cost is essentially the price that you are being charged for it, minus any sort of down payment that you make. Consumers are free to negotiate the price of leased vehicles, just as if they were buying them with cash. Even though they aren't really negotiable, it is important for consumers to find out what lease money factor they are being charged. This is because many banks allow individual dealerships to mark-up their base money factors to bake additional profit into deals. Once you find out what sort of money factor the dealership is willing to give you, please feel free to come back here to the Town Hall and run it past me. I would be happy to let you know if I think that it is reasonable.
Car_Man
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Capitalized Cost: $42,500.00
Bank Fee: $595.00
Security Dep: $725.00
Residual Percent: 55%
Money Factor: 00399
Payment: $717.00
Term: 39 months
I have spoken with a few dealers and they all seem to have a different money factor and some have a different residual value. The dealer I am buying the Sequoia from has preferenced the truck and it should arrive in 2-3 weeks, at which time I lock in the terms of my lease. The dealer said the money factor is re adjusted every month and may go down in April. My concern is that my local dealer has given me the best price of the 10 dealers I negotiated with but his money factor is the highest. Any ideas? Thanks
these days ?
Car_Man
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Gordo here again. Do you have any experience with dealing with an outside leasing company. I am thinking of negotiating a sales price on the Windstar or another Minivan (I like the residuals you gave me for the Honda and Toyota) now since the residuals are set by the bank is there a chance of finding a leasing company that will give a better residual then say Ford Motor Financial? Here my Ideal Deal you tell me if I'm dreaming or if I stand a chance of seeing it happen.
Honda Odyssey EX w/ Navigation
Kelly's Blue Book Invoice w options $25,707.21
" " MSRP $28,840.00
My Offer $26,475.00
36 month/15,000 per residual 59% $17,016.00
NYS sales tax .085 (down payment) 2,250.00
Capitalised Lease Cost 9,459.00
by 36 months 262.75
Now here is my thing will I find a finance company out there to give me a rate of 5.75%
or better. @5.75 or factor of .0025
$43,491.00
monthly finance charge 109.00
Total monthly payment 371.75
Is it realistic?
I have excellent credit and am wondering if Toyota has any decent money factors available for 2 and 3 year leases. Can you also give me an ideal of residual values for those terms. What type of APR is currently being offered through Toyota on a traditional 4 year loan? Should I just pay cash? Help?
I've got a lot of equity in my house not doing anything for me right now, and instead of gambling on the stock market or something with it, I'm going to take some of it on a L of C and buy a new fully loaded Vette.
With good credit, I got a prime + .5 variable rate (15 yr), which works out to about $10 per $1000 on a monthly payment right now.
So, I get a new Vette with under $500/mo payments, I get to write the interest off, and make extra principal payments whenever I want.
I get letters every couple of months asking me to turn in my 1999 Subaru lease early towards the purchase of a new GMC vehicle. The promotion usually is for 3-4 days only. They say there are no penalties, etc. for doing since the subaru is in demand, etc. etc. It sounds to good to be true b/c we do want to get a truck instead. Do you know what the deal is with these programs? Good/Bad?
Thanks!
How do I sell the car to him? I'm not looking to make money on this, I just want him to take the car and be happy
If he writes me the check that I then send to the lease company I think I have to pay some tax (right?). Can he just send the check to the bank and they I just say that he can have the car???
What to do??
Regards,
Dan
Could you please help, looking into SUVs. What would be the money factor and the residual for an MDX and a BMX X53.0 - 15,000 miles per/ and for 36 months. Thanks for the help!
Found a LOADED 2001 Blazer (MSRP 33,200). GMAC is really pushing them, because the new 2002 models are coming out.
36 month lease, 12K miles/year, 0 down, leased for 375/month.
How? Well, it helps that we got GM Family Discount. But GMAC has $2000 cap cost reduction, too. Money factor was equivalent to about 3.5%.
The real key: FIND OUT about an AUTO SHOW in your area. There is an extra $750 cash on leases during the weeks right before and after the auto show.
1) How does this work; it sounds too "generous" that such money would come directly off the cap cost. How is it allocated, and how do I figure it in in my lease cost projections if I were to do this?
2) Who gets the float on the money?
3) Do most dealers accept this approach? Or is it a manufacturer policy?
Thanks as always.
Take care.
Joe W.
- I have 8 payments remaining; can a dealer or TMCC choose to "release" me from those payments early if I, for example, buy/lease another car from Toyota? I expect them to offer to do such a thing by rolling those payments into the new car's cost, and I don't want that. I just want to drop the Camry lease altogether with no cost - if that can't happen until it's natural termination, I'll sit tight until November.
Thanks!
Also, read your contract terms carefully. I'm sure TMCC has specific language regarding early termination. FWIW, I've done this with no problems but others have had difficulty.
The security deposit is a fixed amount, based on a value near the actual monthly payment. What you're referring to is a Capital Cost Reduction, or CCR. Translated into English, it's a down payment, not a security deposit. You do NOT get CCR back at the end of a lease, but you do get a security deposit back (unless you owe any fees or penalties, which are first deducted from the SD, then any remainder is directly charged to you).
Depending on the terms of your lease, a hefty CCR is not always the best idea. Putting too much money down up front may not lower the monthly payments enough to balance the loss of your cash savings. In other words, don't put $3000 down as CCR just to save $75 a month on a 36 month term (the increase is only $2700).
kcram
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Take car.e
JOe W>
Probably the only thing besides a security deposit you can put up front AND get back at the end in a lease is excess mileage. Generally, they are sold at about half price (around 8 cents per mile), and they are refundable at the end of the lease if not used.
Example:
- 36 month lease, 12K miles per year contract
- you buy an additional 12K miles at 8 cents per mile
If you drive 40K miles, you get back 8000 miles x 8 cpm = $640. If you only drive 35K miles, you get back the entire $960 for the 12K excess you bought, but NOT any money for miles under the original contract amount.
kcram
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What are they selling for right now(not leasing)?
Thanks
Can you tell me the current Money Factor and Residuals for this car. I am looking at 36,39,42, or 48 months. If it matters, I am in Florida.
Thanks in Advance
Take care.
Joe W>
I'm planning to lease a Mercedes CLK 320 Coupe in either late April or early May. First question is, what is the current residual value? Second question is, will the residual value be due to change May 1? and if, so do residual values generally go down each quarter? or up? Is it in my best interest to wait for delivery in May.
After 2 weeks of shopping around and working out a zillion different scenarios, I'm picking up my 2001 Caravan Sport w/ Package 25H (Dual zone AC, AM/FM 4 disc CD, Quad Buckets, Power Drivers Seat,
Power Sliding Door, Roof Rack,
These are the figures.
MSRP $29,335
Selling Price $24,536
Bank Fee $845
Rebate $2750
Down Payment $1700
Net Cap Cost $20,931
44% residual $12,907
Financed Amount$8,024
39 months $205.74
Money Factor of .00315
39 finance payments $106.59
$205.74 + $106.59 = $312.33
$312.33 x 1.085 NYS Sales Tax=$338.88 per month
My actual payments will be $355 per month,
Sales tax must be paid to state up front and can not be spread out over the length of the lease,
one thing new lessees should realize you are paying sales tax on the depreciation of the vehicle NOT your payments, you can lower your monthly payments by putting money down to lower the cap cost but you can not lower your tax base,
Cap Cost - Residual Value= Depreciation Value
Depreciation Value x Sales Tax Rate= Sales Tax $$
Any way that is my shopping experienc in a nut shell, How did I do?
Gordo
I know this is kinda the opposite of your question but I have 5+ years experience with NMAC/IFS. It's always worth a try but I think the usual procedure is to pay off your current contract and reopen another one with the new mileage allowance. Good luck! Let us know what they say.
Car_Man
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