Lease Questions - Ask Here

kyfdx

Usually the dealer has nothing to do with it, other than to act as an agent of the leasing company and accept the returned car.. You usually have a pre-inspection by a third party hired by the leasing company.

If nothing is wrong with the car, then no, they will probably not check any maintenance records. I know this to be the case with Honda. I'm sure they would check them at BMW, because any dealer maintenance is recorded in BMW computers, and the maintenance is free at dealer anyway.

regards,
kyfdx

P.S.: Five leased cars returned.. I've never had extra charges except for mileage or problems turned up at the pre-inspection (cracked lenses, etc.). I've never gotten an unexpected charge on turn-in.

glevitt

I am getting stonewalled by the dealer on the S60R money factor of .00041. He is saying it is .0016. I called another dealership and got the same song and dance. Is there a place I can get a physical copy of this information? Is it regional? I just don't understand why they wouldn't be forthcoming. Any help is appreciated.

tammyb6

Hello Carman,
A couple of months ago you helped me with info. on a BMW. I hope you can help me now. I have a friend who has a 2002 Mercedes 240 C-Class. She has had several problems with the car from computer problems to exhaust problems. The car has been serviced about four times for different issues. My friend wants to get out the lease due to pure frustration but Mercedes is saying the car dosen't fall under lemon law criteria. What is her recourse. Does she need legal advice and if so where could she start.

Also do you have the lease rates and residuals for the Infiniti FX 35 (AWD) 6cyl.( 12,000 and 15,000 miles) for 3 and 4 years.

Thank You So Much,
Tammyb6

wesam

Car_man,

I need to know the buy rate, residual value (12k per, 36 months), and disposition fee on a 04' g35 coupe with navi. I am in the state of Wisconsin.

Thanks

cubzfan

Carman - I am totally new to the leasing process, but have tried to read up on it as much as possible. We want a 2003 Sienna LE, Front WD, with option package #4. MSRP is $26,410 and Invoice is $23,709 plus TTL. I saw you posted earlier that I am at the mercy of Toyota Finance Co., for the money factor and residual, but the purchase price is always negotiable, correct? Some said on the sienna message board that they were getting deals of $1,500 to $2,000 below MSRP. Are dealers willing to knock off that much to calculate leases as well? What are the current money factor and residuals for '04 Siennas for 36 and 48 month leases for 12,000 a year? I am in Indiana.

I would also be interested if anyone has had any luck negotiating leases on the Siennas. Thanks,

James.

ipoddin

cp4h: When I leased my VW Jetta, VW sent someone out to inspect the car. All he did was check the mileage, turn the car on, inspect body for any excessive damage and that was it. No maintenence records, no extra charges, nothing.

cubzfan: whether you lease or buy should have no effect on what price you get from a dealer. Of course, DO NOT tell them you plan to lease when you begin negotiations because once they know that, they will structure the deal in their favor. Just negotiate the price of the car as if you were buying it and THEN tell them you want to lease. If they insist on knowing if you plan to lease, walk away. It should have NO effect on the price of the car.

CarMan@Edmunds

Hi Chris. The fact that you like this car enough to lease a second one certainly says something for Honda. I would be more than happy to give you an idea of what this car's lease program is like right now. As one might imagine, Honda is not currently providing any sort of lease support on the 2004 S2000. So if you were to lease one through American Honda Finance Corp. at this time, you would have to use its standard lease money factors. The last that I have heard, AHFC's 3 year base standard money factor was .00220. This car's 3 years, 12,000 miles per residual value should be 62%.

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CarMan@Edmunds

Hi siteexpert. Mercedes-Benz did indeed publish a new lease program for the month of February. In fact, this program actually contains some lease support for the CLK, but unfortunately it is only for CLK Coupes. The residual values that I provided you with last month should not have changed, but Mercedes-Benz Credit Corp.'s base standard lease money factor dropped to .00265 for 3 year leases this month.

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CarMan@Edmunds

Hi patsy7. I responded to the identical post that you made in a different discussion on this Message Board. Please check there for my advice. Thanks.

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CarMan@Edmunds

Hello Roy. Mark is absolutely correct. If you lease a vehicle that only has a 36,000 mile warranty, once you pass that mark you will have to pay for any necessary repairs that would have normally been covered out of your own pocket. In fact, if you don't, you may be liable for excess wear and tear charges when you return your leased vehicle.

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CarMan@Edmunds

Hi dardson1. $489 per month certainly sounds better than $540. However, you need to make sure that you are comparing apples to apples. Check to see if these leases are the same length that they provide the same mileage allowance. Before I signed a lease with some random third party, I personally would shop around with several Lexus dealers to see if you could beat their offer. I just worked up a sample lease payment for you. It may not be completely accurate because you did not provide a detailed description of the truck that you are getting, but according to my calculations if you were to lease a 2004 Lexus RX330 4WD without navigation or the rear entertainment systems with a full MSRP of $39,225 and a selling price of $35,294 through Lexus Financial Services this month for 3 years with 12,000 miles per, its zero down, pre-tax monthly payment should be around $458. So as you can see the $489 payment that you were quoted may be beatable, or at least matchable.

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CarMan@Edmunds

No problem, monkster2. Navigation systems usually make vehicles' residual values drop by 2%. The new money factor and residual value for this car with navigation should be .00215 and 56%.

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CarMan@Edmunds

You're welcome, jumper4. The money factor would be exactly the same for the 2004 BMW 325xi sport wagon, but unfortunately its 3 year residual value would be 2% lower.

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CarMan@Edmunds

While many brands have terminated their lease support on 2003 models, stevens10, Infiniti is still providing lease support on the 2003 FX35. I am not sure why the person who you spoke with told you otherwise, other than to steer you towards an '04. Let's work up a sample lease payment for you. According to my calculations, if you were to lease a 2004 Infiniti FX35 AWD with a full MSRP of $43,640 and a selling price of $39,500 through IFS this month for 3 years with 12,000 miles per, its zero down, pre-tax monthly payment should be right around $570. The payments for otherwise identical 39 and 42 month leases should be $546 and $534, respectively.

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CarMan@Edmunds

Greetings, itaback. Here is the information that you are looking for. If you were to lease a 2004 Audi A4 1.8T quattro Sedan through Audi Financial Services this month for 3 years with 10,000 miles per, its base lease money factor and residual value should be .00110 and 57%, respectively.

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CarMan@Edmunds

I am sorry to say, scottl2, that once you have signed your lease contract and physically taken delivery of your new car you are pretty much stuck in your lease. This is especially true now that you are two months into your deal. You may be able to purchase your leased car from the bank that you are leasing it through and refinance it, but even if you did so, you would not be able to take advantage of Infiniti's special financing rates and probably would have to pay some sort of penalty for early termination.

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CarMan@Edmunds

Hello taipan1. I would be more than happy to calculate a sample lease payment on this car for you. However, in order for me to do so, I need you to provide me with its full MSRP and selling price. You can look up the Accord's MSRP right here at Edmunds.com and should be able to get a good idea of its selling price by reading some of the discussions in the Town Hall or by looking up its Edmunds.com True Market Value. Once you give me this additional info, I will be able to help you out. Talk to you soon.

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CarMan@Edmunds

Hi cp4h. The answer to your question is yes and no. While many lease contracts do include clauses that stipulate that lessees need to perform regular scheduled maintenance on their vehicles, in all of the thousands of people who I have spoken with here in the Town Hall and in real life I have never once heard about a consumer being penalized by a bank for not performing regular maintenance on their vehicle. Of course, one should get their oil changed every several thousand miles and I suppose that a lessee might have a problem if they drive their car or truck for a million miles while never having even changed the oil if some sort of major mechanical problem occurred, as long as you change the oil once in a while you should be fine. Interestingly enough, enough lessees were not performing regular maintenance on their vehicles that many luxury manufacturers began providing free scheduled maintenance. While this is a nice ownership perk, it also serves to make sure that the leased vehicles that their captive finance companies get back are in good shape.

Unfortunately, it is difficult for individual consumers to know what sort of maintenance has been performed on a used vehicle. You may be able to get the dealership that you are purchasing from to check their service computers for you. Any maintenance that was performed at a dealership would likely show up.

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CarMan@Edmunds

Hey glevitt. The reason why they are not being completely honest with you is because they are trying to maximize their profits, just like you as a consumer are trying to spend as little money as possible. There is a huge difference between .00160 and .00041. Perhaps they are running your lease through a bank other than Volvo Finance and are trying to pocket the $4,500 lease cash that is available on deals through other banks. I believe that Volvo Finance's aforementioned lease money factor is indeed national. Unfortunately, I am not aware of any place that you can get a copy of this program. I would either continue to comparison shop for this car or perhaps tell one of the dealers that you are working with that you will lease a different brand if they don't work with you.

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CarMan@Edmunds

hi tammyb6. I am sorry to hear about the problems that your friend has been experiencing with their C-Class. I have been hearing rumors of quality problems with Mercedes-Benz lately. If your friend continues to experience problems with this vehicle they could always try to have it purchased back through the lemon laws. Take a look at the following article for more information on this subject: Getting Some Lemon-Aid From Your Lemon Maker. You also should check out the following Web site: The International Association of Lemon Law Administrators. If it does not qualify for lemon law status, unfortunately there is not really any inexpensive way to get out of this lease well before its scheduled end date.

Here is the information that you asked for in your second question. If you were to lease a 2004 Infiniti FX35 AWD through Infiniti Financial Services this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00184 and 52%, respectively. The numbers for an otherwise identical 4 year lease should be .00184 and 45%. For leases with only 12,000 miles per year, increase the 3 year residual value by 1% and the 4 year residual by 2%.

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CarMan@Edmunds

Hi wesam. If you were to lease a 2004 Infiniti G35 Coupe with navigation through Infiniti Financial Services this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00220 and 60%, respectively. In most states, I believe that IFS' lease acquisition fee is currently $550 and its termination fee is $350.

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ricochet600

Hi Car_man,

I'm doing a bit of research for my dad. I have quite a few questions, I hope you don't mind.

1. He's looking to lease either the E-series and the 5-series in the NYC area. If you could tell me the residual and money factors for 12,000 miles and 3 years (unless there are any promotional lease programs for other lengths of time) for the MB E320/E500 and BMW 530/545, I'd really appreciate it.

From reading your previous posts, I noticed that MB seems to have MFs that hover around .00250 to .00275, which translates into 6.0 to 6.6% interest. Looking at bankrate.com's auto loan rates, it seems that 5.1% is the best rate.

2. Aren't there better rates out there that banks offer?

3. For auto leases, don't banks typically offer lower residual values than captive manufacturer finance companies?

4. Have you heard of instances where people have bought/leased either of these cars for better than a couple of hundred dollars under MSRP?

Thanks in advance.

ipoddin

Hi Car Man. I'm looking to lease an '04 Chrysler Pacifica the end of this month. I'm in Los Angeles btw.

I'd like to know a couple of things if you don't mind:

-Residual value for 39 month lease, 15k miles/year.

-Best money factor I could get with 700+ credit score.

-I know about the $3k lease cash, but any other specials this month I should be aware of for leasing?

I know how to calculate a lease, so once I have all the latest data, I'll be better prepared. Thanks!

dardson1

Thanks for the valuable info.......a quick follow up question(s).......what money factor are you using for the Lexus lease? My local dealer claims his very best rate is .00225. My third party lessor's offer is .00155. AND. . . when you say pre-tax you mean if the TT&L isn't rolled into the lease? THANKS in advance.

max63

Just got a quote from a dealer on a Phaeton, just wanted to get your thoughts. I think the MSRP was 65,400 for a base model. They wanted $8,000 total drive off (which includes tax and lic.) with a $599 a month payment which includes tax. The term is 48 months and 12k miles a year. Let me know what you think. I know you dont like putting money down on a lease but I like the lower monthly payments.

ricochet600

max63,

Why don't you just put the amount of the down payment into a separate account, and transfer it from there as you make your payments? It might seem like an inconvenience, but then again, losing up to $7,000 seems like an inconvenience to me.

Judging from previous posts, it seems that Car_man might suggest the same, since if the car is either stolen or totaled, that down payment has effectively been wasted money. (Let's say the car is stolen 1 year into the lease. If you had put $0 down, you would have only lost ~$1,750 that was spread out over your monthly payments, instead of the $7,000 up front.)

ipoddin

It's insane to put that kind of cash down on a car you don't own! Put it in the bank and draw the difference in your monthly payments out of it. YOu'll get the same monthly payment plan and you won't be wasting $7k

wdavid27

I leased a car a few years ago and at that time I made a payment of $3000. As I remember, the car salesman said "You'll get back your downpayment when the lease is over." My lease will be up in the next few months. I called the bank today to verify and they told me that the money I had put down in the beginning went towards the payment of the car. I'm confused now. CarMan, can you explain this to me?

jratcliffe

What does your lease contract say? It's possible that part of the $3k was a "security deposit," which you'll get back at the end of the lease, assuming the car's in good shape. If there's no security deposit listed on your lease contract, then you made a $3k upfront payment toward your lease payments.

ipoddin

yep, sounds like the dealer wasn't very upfront with you...a security deposit you get back. But that's generally only the same amount as one month's payment I think. $3k is a down payment and you loose that in a lease.

b4z

Base V6 is $469 mo lease for 48 months. MSRP is $38,690 but GM uses a lower figure to calculate the lease. No money down. I am thinking of rolling in about 2K from the Impala I am upside down on.
I just want to see if I can negotiate a better price than what GM is offering.

glevitt

Car_Man

Can you give me this months terms for a 48 mo/12k yr lease through Infiniti Financial Services for the G35x?

Thansks,

Greg

iianointed

Hi. I am interested in the '04 Volvo XC90 w/ premium and versatility packages. (MSRP around 42,500) How do I know if leasing is for me or that I am getting a good deal? I'll be able to get a discount with the X-plan but the numbers quoted are somewhat confusing. Radio special says "$1100 down (includes 1 payment) and approx. $549/mon for 48 months and 12k mi/yr."

glevitt

iianointed,
check out this article on Edmunds:
http://www.edmunds.com/finance/leasing/articles/48365/article.htm- l
It will walk you through the basics of a lease and how to figure and then Car_Man can give you the residual value and money factor for this car and you can calculate your payments.

Also, check out post 9312 on this forum regarding the XC90.

Good Luck!

kjisaacson

Just leased a new Camry, and the day after figured out I'm paying too high and interest rate (money factor). Is it possible to find a bank to "re-finance" with? If so, does it cost an arm and a leg?

Many thanks.
Ken

knockoff

Hi Car_man, would you please give me the the money factor and residual for the Cayenne, Cayenne S, V8 Touareg, Infiniti QX56 and Lexus GX470? This would be for 15,000 miles/year for 36 or 39 months?
Still trying to work a deal... as you can see, I am not 100% sure on what I want. A dealer is setting up a comparison test for me between the Cayenne (V6) and the V8 Touareg. Maybe that will help solidify my decision... :-)
thanks so much for your help.

murphy24

I've come across a web site (from a link on this web site) that discusses lease trading. My situation is that I got into a lease when I worked close to my house, now I have a job thats 4 times the distance. I'm thinking I should try to trade the vehicle before I get too many miles on it (its an 02 RX300). my question: Is this lease trading thing on the up and up or should I just ride it out and take my lumps in the end of the lease?
thanks for all of your good advice : )

smd5

Carman - Do you know if BMW has any type of lease pull ahead program? I know that MB has or had one and GM certainly does. Also do you know anything about a BMW FS loyalty program?

jae246

Hi Carman, Can you post the lease rates and residuals for a 545? 30 to 36 mo's and 12k and also 15k year.Sorry if these are already posted but couldn't find.I have perfect credit.
Thanks, John

CarMan@Edmunds

I would be more than happy to help you and your father out, ricochet600. First, let's look at the current lease programs for the models that he is considering. If he was to lease a 2004 Mercerdes-Benz E320 Sedan through Mercedes-Benz Credit Corp. this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00250 and 63%, respectively. The numbers for an otherwise identical lease of a 2004 E500 Sedan should be .00250 and 61%. If your Dad was to lease a 2004 BMW 530i through BMW Financial Services this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00225 and 64%, respectively. The numbers would be identical for an otherwise identical lease of a 2004 545i.

Independent banks used to provide much more aggressive lease programs on vehicles a couple of years ago before everyone started taking hits on the vehicles that they were getting back from overestimating their residual values. Some of the most aggressive independent banks have dropped their leasing business completely or have at least become a lot more conservative with their programs. There may be some banks out there that have similar lease programs to the ones that are being offered by BMW FS and MBCC at this time, but I doubt that any random banks are able to beat these programs by much.

I am not personally all that familiar with the market for these vehicles at this time, but unless you are in an area where there is no competition for your business I suspect that you should be able to negotiate a larger discount than a couple hundred dollars under full MSRP. I suggest that you check out the BMW 5-Series: Prices Paid & Buying Experience and Mercedes Benz E-Class: Prices Paid & Buying Experience discussions that appear here in the Town Hall to get an idea of what others are paying for these models right now.

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CarMan@Edmunds

Hey ipoddin. Here is the information that you are looking for. If you were to lease a 2004 Chrysler Pacifica 2WD in the Los Angeles area this month for 39 months with 15,000 miles per year, its base lease money factor and residual value should be .00110 and 50%, respectively. I am not aware of any cash incentives that are compatible with this lease program, other than the $3,000 lease cash that you already know about.

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CarMan@Edmunds

You're very welcome, dardson1. I believe that the lease money factor that I used to calculate the sample lease payment that I provided you with is around .00170. Lexus Financial Services' base lease money factors do vary slightly by region though, so its exact factor may be slightly different in your area. Also, the lease payment that I calculated for you only takes the vehicle's price into account and did not have tax, title, license, or the acquisition fee included in it.

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CarMan@Edmunds

Hello max63. I completely agree with what some of the other posters have said. $8,000 is waaaaay too much money to put down on a leased vehicle. It would be terrible to get into an accident or have your car stolen and just be out that money. I would be more than happy to calculate a sample lease payment for you on the exact car that you are considering. This will give you an idea of exactly what it should cost to lease this model right now. However, first I need you to provide me with its full MSRP and selling price.

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CarMan@Edmunds

Hi wdavid27. I am very sorry to say that consumers never get their down payments on leased vehicles back at the ends of their terms. If the $3,000 that you paid on your lease was used to put down additional security deposits, which in turn would buy down your payment, then you should indeed be able to get that money back when you return your car or truck, provided that you do not owe any penalties for excess wear and tear or excess mileage. If you did actually make a down payment of $3,000 and your salesperson told you that you could get that money back at the end of your lease they were lying to you.

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CarMan@Edmunds

Greetings Greg. Here is the information that you are looking for. If you were to lease a 2004 Infiniti G35 AWD through Infiniti Financial Services this month for 4 years with 12,000 miles per, its base lease money factor and residual value should be .00184 and 53%, respectively.

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CarMan@Edmunds

Welcome to the wonderful world of leasing, iianointed. Unfortunately, there is nothing wonderful about leasing the Volvo XC90 right now. Volvo is not currently providing any sort of lease support on this model. So if you were to lease one through Volvo Finance, you would have to use its standard lease money factor, which is not very good. I believe that most consumers who lease this vehicle do so through a bank other than Volvo Finance and even then I doubt that any independent banks have lease programs on this model that are very attractive.

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CarMan@Edmunds

I am sorry to hear about your bad experience, Ken. Unfortunately I do not have any good news for you. In order for you to refinance this car, you need to purchase it from the bank that you are leasing it from because they are technically the ones that own the vehicle. Since you are doing so this early in your lease, you may owe some sort of early termination penalty. Plus, your Camry is technically a used vehicle now so it no longer qualifies for new vehicle financing rates. The rates that banks provide on used vehicles are usually a littler higher than the ones that they offer on new vehicles. You certainly can look into refinancing your car, but unless you got a really bad deal doing so probably will not save you any money.

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CarMan@Edmunds

Hi again knockoff. Here are the 3 year, 15,000 miles per numbers if you were to lease these vehicles through their captive finance companies, 2004 Porsche Cayenne S - .00250 / 53%, 2004 Infiniti QX56 - .00184 / 55%, 2004 Volkswagen Touareg V8 - .00185 / 52%, and the 2004 Lexus GX470 - .00170 / 54% (this program varies by region).

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knockoff

Thank you Car_man... Are the numbers for the V6 Cayenne same as the Cayenne S?

tbone1744

Hello Carman
I was wondering if you could give me some advice. I am currently financing a 2002 Hyundai Elantra and still have about 3 1/2 years left on my loan. I want to get a new car. Would a dealer buy off my loan and roll that amount left over into the new purchase price.