Lease Questions - Ask Here

rxke

Hi Carman

I would like to add the Volvo S60AWD to the equation I previously sent you. I am looking to lease for 36 or 39 or 42 months(whatever each mfg. is offering)with 15,000 miles. I have the MSRP(with the options I would like) on all of the cars:

G35 4dr all wheel drive: $37,900
Audi A4 1.8 quattro sedan: $33,145
Volvo S60 2.5T AWD: $36,605

Could you tell me the approximate monthly lease cost on these vehicles or could you give me the money factor and residual values? I live in Westchester county in NY.

Thanks

RXKE

rtde

Car_man, would you please provide me with the residual values for a

Honda Accord LX 4dr Sedan (2.4L 4cyl 5M)
Honda Accord EX 4dr Sedan (2.4L 4cyl 5M)

with 12k and 15k allotted miles. I realize we ask a lot of you, but I need this information before noon since I intend to lease the vehicle today.

Here are my figures:

36 Month lease
0.00126 Lease factor
15K Miles
0 Down

LX 4cyl 5M
19,790 MSRP
17,864 Invoice
18,655.16 Cap cost (18,105.16 + 550 Acquisition fee)
11,082 Residual value (56% of full MSRP. This is just a guess. Is it the correct %?)
247.83 Monthly payment (Before tax)

EX 4cyl 5M
21,700 MSRP
19,530 Invoice
20,343.66 Cap cost (19,793.66 + 550 Acquisition fee)
12,152 Residual value (56% of full MSRP. This is just a guess. Is it the correct %?)
268.49 Monthly payment (Before tax)

Are these calculations correct?

Thank you kyfdx. I did not realize the acquisition fee was factored into the adjusted capital cost. Did American Honda Finance allow you to apply the $1,500 waiver to the tires or is that figure intended for the interior/exterior of the vehicle?

Thank you in advance Car_man.

kyfdx

My tires have always passed inspection. This last car ('01 Accord) had 51.7K miles when I turned it in, and the tires were starting to break traction and were probably about 3-4K past where I would have replaced them if I owned the car. I've just never had a problem on turn-in from AHFC. I'm not certain if the waiver would apply to the tires, I'm guessing it wouldn't if they determined the tires were unacceptable. But, if you are doing a 45K mile lease, it shouldn't be an issue anyway.

I doubt Carman will get to you by noon, but I checked your numbers on the EX. They look very good.. Just a few hundred over invoice. It looks like the only thing you would have to pay at inception is the first payment, security deposit, and title and licensing fees. I came out with exactly the same numbers you did. It looks like you have done your homework. If the MF and residuals are correct in your assumption, and you can get that price, you are way ahead of most people.

regards,
kyfdx

rtde

Thank you for your rapid response. I was just eager to complete this acquisition before the close of the month. There is nothing like a monthly sales goal to motivate a dealer. Worst case scenario, the MF is good through the end of February so I have plenty of time.

I appreciate your help Walt.

Hopefully Car_man will be on soon.

minime5

Hi Car Man,
Can you give me the incentives, money factors and residuals for the following three trucks? (based on a 36/39 month, 15K mile)

Pacifica AWD
Volvo XC90
MDX

Thanks car_man, you really do provide a great service to everyone out here!!

lobito17

Thanks, guys, for your advice.

In the end, dealership offered to split the $430 lease payment with me, so I went for it. I really did get a good deal. Car and options at invoice, no cap cost reduction, $1200 drive out, including first month and acquisition fee, with monthly nut of $410 per month including taxes, which is $20 per month less than what I'm currently paying for the I-30.

Mobofe -- I absolutely get the "souped up Maxima" comment. You're right, and I would never buy the I-35 outright. But for me the G-35 was a bit small and rough riding, and the TL, while I liked it alot, would have cost about $100 per month more at least. In the end, I love my I-30 and the I-35 will be fine substitute for another 3 years. After that, we'll see.

Thanks, as always, for your input.

rtde

Unfortunately, the dealer had a difficult time locating an Accord EX 4cyl 5M. So I have to consider a possible alternative. I have narrowed it down to the following vehicles:

2004 Accord EX 4cyl 5M with cloth interior
2004 Accord EX 4cyl 5A with cloth interior

Today is the day to close the deal. Car_man, can you please provide me with the residual values for both of these cars with 12k and 15k miles respectively.

Once again, thank you.

rtde

I realize in an earlier post you stated that the promotional MF for all Accords was 0.00126. Is this good through the end of February?

Thank you

blerner2

Carman,

Just wanted to say thanks for providing me AFHC's Residual and Money Factor for this vehicle for 3yr/15K per year (58%/.00215)

I closed my deal this morning on a 2004 Acura TL Non-Nav.

The dealer was ok with my Residual, but we argued back and forth about his money factor (.00245). I even had them log onto Edmunds to show them your post. Their response was, "so what, it's a number in a discussion group...not official in any way".

I finally relented and accepted their higher money factor (which about $15/month onto the payment). I rationalized this, as AFHC did not require any security deposit, as many other captives do, so it would have worked out anyway.

Still, I'm not happy about getting ripped off on the money factor, but I've got my car at a monthly price I wanted to pay for leasing.

lobito17

Mobofe -- you will be happy to know that I had an epiphany while going to pick up the I-35. Literally on my way to the Infiniti dealer, I pulled into the Acura dealer lot, figuring it was the last day of January and would take a shot. Bottom line, I got a non-navi Acura TL for 1000 over invoice, no money down, no security deposit. 1300 drive off (inc. first mo rent) 42 month lease 15k for $450 per month, tax included. This was only marginally more than the I-35 and I am much happier. Thought you'd be relieved that I bailed on the souped up Maxima after all.

Finally, let me put in a plug for the Expert Lease Pro software. This $70 download saved me hundreds, if not thousands. Load it on a laptop, take it with you to the dealer and you really are on equal footing with the F&I manager. There are just no "secrets" in the process -- you can input every line item, tax, charge, etc. Amazing.

cjs2002

I was looking in the paper this morning at the different lease deals and incentives that are being offered. I saw a Chrysler Crossfire for 358 + tax a month for 39 months @ 12K miles a year. my question comes about the 39 months. my first and foremost reason for wanting a 36 month lease is so that I'm not off the factory warrenty, but is it really make any difference between 36 and 39. in my mind I didn't think so, because I new I would have to get the 15K miles a year (don't drive alot but I drive about 13500 a year) so even on a 36 month lease I'm going to go over the 36000 mile warrenty on a car such as this. my dad seems to think its some huge thing but I don't see much to worrie about. I have an uncle who leases used 7 series and Jaguars (has a jag right now) and he doesn't have the bumper to bumper warrenty and he's never had any problem. please help. I like the Xfire, and can recieve the friends and family discount on the car, but I'm affraid of the whole leasing and off of warrenty thing for the last couple of months... any suggestions for comments?

mobofe

congrats. i kinda held my typing fingers when I heard you went with the I-35 - didn't want to diss your ride. The TL is worth that grand over invoice and more. You'll enjoy finding all the little cool features that come with that ride. You will also find yourself driving aimlessly just to be in the car - i'm lucky i bought mine b/c i'm way past the monthly lease quota.

Glad to have made some kind of difference and you made my day

mobofe

Imho, there's really not much additional risk you take on with the extra 3 months. From a logical point of view, if it's a problem car, it will surface way before then.

Your main concern underlying your question actually should be focused on the historical reliability of this particular brand/car. If it's a known problem car, you wouldn't want to be leasing it in the first place. Cars in my experience are not prone to major failure at the magical interval between 36 and 39 months. That be said, you'll probably have small little problems crop up but most will be covered by the damage allowance the lease provides.

Yes, you take a risk but it's a very very acceptable risk. Just remember to have the car checked out before the warranty ends and get all the known problems fixed. You would do this regardless of whether you bought or leasered.

hampsterdam

hi guys, I have seen ads here in Houston for a factory lease on Corollas for like $990 down, $169 month for 48 months (am unsure of the details). This would fit my wife's situation nicely. 10k miles a year is much more than sufficient but we must have AC and an auto trans. Is anyone familiar with this offer and is it a reasonable deal? thanks!

CarMan@Edmunds

Hi mfullmer. Congratulations on your new Lexus. Leased vehicle return policies will vary from bank to bank. The first thing that you should do is contact the bank that you are leasing your current vehicle through to tell them that you want to turn it back in. They will fill you in on exactly what you need to do. Many banks send independent inspectors to their lessees' homes or places of business to look at their vehicles before they turn them in. Eventually you will probably have to turn your car into a dealership. You should be able to do so at any dealership that sells the same brand. Make sure to call the dealer that you want to drop your car off at in advance to ask them when the best time to do so would be.

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CarMan@Edmunds

Hi pgill. Unfortunately, I do not personally keep tabs on the incentives programs that automakers are offering on Certified Pre-Owned Vehicles. Sorry that I could not be of more help.

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CarMan@Edmunds

You're very welcome, rtde. Thank you for the thanks . You are right in that you definitely should be able to negotiate a bigger discount than the one that is provided in Honda's sample lease payment for the 2004 Accord. As long as there is decent competition for your business in your area, I suspect that you should be able to purchase an Accord right now for a little over dealer invoice. Unfortunately American Honda Finance Corp. is not waiving its lease acquisition fee for Accord leases right now. As a consumer, you have the option to either pay the acquisition fee at lease signing or to have it rolled over into your vehicle's cap cost. When an acquisition fee is not broken out in an advertised lease, as is the case here, it usually means that it has been rolled into the vehicle's capitalized cost.

I just took a look at the lease payment that you calculated for the Accord LX that you are interested in, and your calculations look to be right on the money. The 58% residual value that you used would be correct for a 3 year lease of this model with only 12,000 miles per year. The residual value for a 15,000 miles per lease of this model would be 2% lower. Besides the normal fees, the only thing that you need to add to your calculated payment to come up with your vehicle's actual monthly payment is tax.

I have leased several vehicles through American Honda Finance Corp. and they are usually very fair when evaluating models for lease-end wear and tear. As long as your Accord is in reasonably good shape, there is a very good chance that you will get your full security deposit back. Remember that it is in AHFC's best interest to keep you happy so that you lease or purchase another vehicle from its parent company.

Honda and Acura do not have any sort of lease loyalty programs running at this time, so I am not aware of any benefit to keeping your next lease in the family so to speak.

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CarMan@Edmunds

Hello rsilsbe. Here is the information that you are looking for. If you were to lease a 2004 Mercedes-Benz CLK320 Coupe through Mercedes-Benz Credit Corp. this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00250 and 63%, respectively. I suspect that Mercedes may make some adjustments to its lease program for the month of February at some point this week. Please feel free to check back with me towards the end of the week and I will be more than happy to let you know if I have heard anything about any changes.

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CarMan@Edmunds

Hey rxke. Let's take a look at the lease programs for the two models that you are interested in. If you were to lease a 2004 Audi A4 1.8T Sedan with quattro through Audi Financial Services for 39 months with 15,000 miles per year prior to February 3rd, its base lease money factor and residual value should be .00110 and 52%, respectively. Other than this special money factor, Audi is not offering any sort of incentives on the A4 right now. Last year, Audi was providing a little owner loyalty cash on the A4, but I believe that for '04 its loyalty program was revised to only include the A6, allroad, and TT. Please feel free to check back with me towards the end of next week and I will be more than happy to give you an idea of what this model's Feb. lease program is like.

As far as the Infiniti G35 goes, its January numbers are as follows. If you were to lease a 2004 Infiniti G35 AWD through Infiniti Financial Services for 39 months with 15,000 miles per on or before February 2nd, its base lease money factor and residual value should be .00180 and 58%, respectively. Infiniti is not providing any other incentives on this model either. Again, please feel free to check back with me late next week for an idea of what the February program is like.

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CarMan@Edmunds

Mfullmer, General Motors is allowing certain lessees out of their leases prior to their scheduled termination dates. However, in order for you to be allowed to do so, you need to purchase or lease a new GM vehicle. Since you are getting a new Lexus, you would not be eligible for this program.

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CarMan@Edmunds

Fair enough, rxke. Here is the info for the Volvo that you are also interested in. According the the latest information that I have seen, if you were to lease a 2004 Volvo S60 2.5T AWD through Volvo Finance this month for 39 months with 15,000 miles per year, its base lease money factor and residual value should be .00025 and 49%, respectively. Unlike the other programs that I provided you with information on, Volvo's is scheduled to run through the end of February. Volvo is providing dealer cash on this model, but this cash is not compatible with its extremely low lease money factors.

I would be more than happy to calculate sample lease payments for you on the vehicles that we have been discussing, but in order for me to do so, I need you to provide me with approximate selling prices for them.

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CarMan@Edmunds

Greetings rtde. Sorry that I missed your deadline. I was not on-line Saturday morning. I will provide you with the info that you are looking for anyhow, just in case you still need it. The lease money factor that you provided in your post is right on the money. American Honda Finance Corp.'s 3 year 15,000 miles per residual values for the models that you are interested in are as follows: 56% for the '04 Accord LX and 57% for the '04 Accord EX without navigation. If you were to lease either of these cars with only 12,000 miles per years, their residual values would be 2% higher. Other than the fact that you did not use the correct residual value for your second calculation, your numbers look to be right on the money.

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CarMan@Edmunds

Hi minime5. Here is the information that you need. If you were to lease a 2004 Chrysler Pacifica AWD through Chrysler Financial this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00110 and 50%, respectively. The money factor for an otherwise identical 39 month lease would be the same, but the residual value would fall to 49%. In addition to this special lease money factor, Chrysler is also providing $3,000 lease cash on this model that may be used to reduce its capitalized cost.

You didn't mention which trim level of the Volvo XC90 you are interested in in your post. I need to know if you want the 2.5T AWD, 2.5T 2WD, or the T6 in order to give you an accurate idea of what its lease program should be like.

The same goes for the Acura MDX. I will not be able to give you an idea of what this model's lease program is like until you tell me exactly which trim level you want.

Once I have this additional informaiton from you, I will try to give you an idea of what the lease programs for these two vehicles should be like. Talk to you soon.

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CarMan@Edmunds

Congratulations on your new car, lobito17. Enjoy!

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CarMan@Edmunds

Rtde, all of the '04 Accord EX models that you mentioned should have the exact same lease program. This car's lease program would only be different if you were looking at one that is equipped with navigation.

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CarMan@Edmunds

Honda's special lease money factor for the 2004 Accord is scheduled to run through March 1st.

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CarMan@Edmunds

That's great news, blerner2. Congratulations on your new car. The reason why the money factor that was used to calculate your payment was higher may be because you were having your vehicle's lease security deposit waived. Many banks will wave their security deposit requirements in exchange for a slight increase in the factor.

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CarMan@Edmunds

Cjs2002, 39 month leases are very popular because they usually provide lower lease payments than 36 month terms do. The payments that are associated with 39 month leases are usually a little lower because they allow consumers to spread out the huge initial depreciation hit that vehicles experience during the first year over a slightly larger number of payments. While it is true that certain DaimlerChrysler only provides a 3 year / 36,000 mile bumper-to-bumper warranty this model, I personally do not think that leasing one for 39 months is that big a problem. It only leaves you with 3 months in which your vehicle is not fully covered, and during those months your car will still be protected by DaimlerChrysler's 7 yr. / 70,000 mi. powertrain coverage.

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rsilsbe

Thanks for the info, the dealer is right on with the residual but a little high on the lease factor.

cjs2002

That is what I was thinking but I have one last question, if I do actually change my mind and get the Xfire, what would be the difference to get 15K instead of 12K miles a year. just wanted to know. I have the family discount so I know my lease payment is 350 after tax per month, what would it typically raise by to get 15K a year?

yk40

Car_Man;

I will be picking up my 325xi this Monday ( leasing. Now I realize that they are making me pay the tax on the Bank fee ($800). is this OK?

I will post the details of the lease soon.

CarMan@Edmunds

You're very welcome, rsilsbe.

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CarMan@Edmunds

Chrysler Financial leases for that allow 15,000 miles per year have residual values that are 2% lower than leases that allow only 12,000 miles per for this term.

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CarMan@Edmunds

Hi yk40. BMW Financial Services' base lease acquisition fee is currently $525 in most states. If the dealer that you are working with is charging you a higher fee than this, they may be attempting to mark-up BMW FS' base fee to add a little extra profit to your deal.

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minime5

Sorry about missong those detsails car man. Let's try this again:

Volvo XC90 2.5 AWD
Acura MDX Touring Model
Cadillac SRX AWD 6 cyl.

Thanks again!!

nupeskee

Has GM released info on the lease program for the Caddy CTS-V? If so can you provided the details?

mikeh20854

I'm negotiating a $500 over invoice price for a 2004 325 CIC convertible (it is the dead of winter afterall). Although not listed aspart of a dealer invoice price on various web sites that there is a $360 advertising charge that must be considered as part of the invoice. Is that a legitimate charge?

cjs2002

ok thank you... in terms of dollar value what would that or about what would that difference come out to be? I only ask because I'd like to be fully informed befor I go back into this dealorship... they don't like to talk with me because I'm a kid or well they think that I'm a kid at the age of 20, but if they only new. the sales guy that decided to actually take me seriously has been very helpful so far, and even got the dealorship to let me test drive one. I find this funny because I've seen these same cars sitting on the lot for nearly 5 months now... there not moving at all where I'm at one would think that they would take any potential buyer.

CarMan@Edmunds

Thanks for the additional information, minime5. Here is the info that you are looking for. Volvo is not providing any sort of lease support on the XC90 at this time. So if you were to lease one through Volvo Finance, you would have to use its standard lease money factors. These standard factors vary by region, but should be close to the following factor just about anywhere you are. If you were to lease a 2004 Volvo XC90 2.5 AWD through Volvo Finance in February for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00339 and 55%, respectively. If you were to lease a 2004 Acura MDX Touring without the navigation or rear entertainment systems through American Honda Finance Corp. this month for 3 years with 15,000 miles per, its base money factor and residual should be .00215 and 58%, respectively.

Last but not least we have the Cadillac SRX. General Motors publishes lease rates for its vehicles instead of lease money factors. You can convert these rates into approximate money factors by dividing them by 2400. If you were to lease a 2004 Cadillac SRX AWD 6 cyl. through General Motors Acceptance Corp. this month for 3 years with 15,000 miles per, its base lease rate and residual value should be 3.95% and 52%, respectively.

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CarMan@Edmunds

Nupeskee, General Motors is not currently providing any sort of lease support on the Cadillac CTS-V. So, if you were to lease one through General Motors Acceptance Corp. you would have to use its standard lease rates, which are usually terrible. Chances are that you will be able to get a lower lease payment by leasing this car through an independent bank. Dealerships usually have computer systems that allow them to search the country for the best lease programs that are available on a particular model at any given time. You will need to check with the F&I department of the dealership that you are working with to find out what sort of programs are available on the CTS-V right now. If you let me know how long you plan on leasing it for, I can at least give you an idea of what its residual values should be like.

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CarMan@Edmunds

Hi mikeh20854. The Smart Shoppers Message Board has a number of active discussions on advertising charges. You definitely should take a look over there for more information on this subject. Even though this is a leasing forum, I will give you a quick answer to your question. While many manufacturers do pass advertising charges onto their dealers, I personally feel as though whether or not they are technically part of vehicles' invoice prices is irrelevant Rather than letting all of the little fees that are associated with deals cloud the big picture, focus on the bottom line - you want to purchase this car for the lowest total price possible. Comparison shop at several dealers for out-the-door price quotes on this car and then go with the one that offers you the lowest total price, provided that you feel comfortable doing business with them.

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CarMan@Edmunds

One really can not generalize about how the change in mileage allowance from 12,000 to 15,000 miles per year will impact vehicles' lease payments because this will vary depending upon their MSRPs. You should run a couple of sample payments for the vehicle that you are interested in prior to negotiating with any dealerships. You can do so by using the formula that is provided in the following article: Calculate Your Own Lease Payment.

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CarMan@Edmunds

One really can not generalize about how the change in mileage allowance from 12,000 to 15,000 miles per year will impact vehicles' lease payments because this will vary depending upon their MSRPs. You should run a couple of sample payments for the vehicle that you are interested in prior to negotiating with any dealerships. You can do so by using the formula that is provided in the following article: Calculate Your Own Lease Payment.

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kyfdx

If the MSRP is around $35K and the difference in residuals is 2%, then your residual will be approx. $700 lower. Depending on the MF, this will increase your payment on a 36 month lease by about $18-18.50 per month.

regards,
kyfdx

mcwenzel

Carman,

Please help me with the proposed payments on a lease for an Audi A4.

Here are the specs: Audi A4 1.8T 5speed manual with Premium Package, Sport Package and Lighting Package

MSRP: 29,590
Invoice: 26,757
Edmunds TMV $28,194
12,000 miles per year
zero down payment
36 month lease

What am I looking at for payments and what is the money factor and residual. Thanks!!!

cjs2002

hey thanks, sorry about that. Im rather foggey with the Xfire mainly because i'm not paying MSRP I have the family C plan though I'm not sure what price that entitles me to, but my dad knows I was just trying to find this out rouphly. but thank you it helped

glevitt

Car_man,

just wanted to run some numbers by you to see if they are holding for Feb.

Acura TL(non/nav)
36 month 12k mf=.00215 rf=60%
48 month 12k mf=.00205 rf=52%

Infiniti G35x
36 month 12k mf=.0018 rf=60%
48 month 12k mf=.00184 rf=53%

Will these expire at the end of February (if they are accurate)?

Also, could give me the mf and rf for the Volvo S60R and the Volvo S60 AWD (assuming 12k/yr 36 and 48 month terms) I have seen some crazy numbers on this board for Volvo lately and I just want to make sure I am reading them right(.00025?).

Thanks!

CarMan@Edmunds

Hi mcwenzel. Normally Audi's lease programs only run for a month at a time so I would have had to wait until it published its February numbers to give you an idea of what its lease program is like. However, for some reason, this month the program that Audi introduced in January is scheduled to run through March 3rd. Here is the information that you are looking for. If you were to lease a 2004 Audi A4 1.8T Sedan with quattro through Audi Financial Services this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00110 and 56%, respectively. Using these numbers, if you were to lease a car with a full MSRP of $29,590 and a selling price of $28,194, its zero down, pre-tax monthly lease payment should be right around $373.

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CarMan@Edmunds

Hey glevitt. I haven't seen either Acura's or Infiniti's February lease programs yet. Please feel free to check back with me at the end of this week and I will be more than happy to fill you in on what I have been able to find out.

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stockwatch

What are your thoughts on these terms:

I picked up a 48 month lease for a 2004 Infiniti G35x. Terms of the lease are 48 months with 10,000 miles a year; nothing down.

Gross Capitalized Cost: 35734.84
Residual (53%): 19119.75
Money Factor: 0.00324
Monthly Payment (including tax): $523.88