Lease Questions - Ask Here

skywalk

Hello carman,
I have a 04 Audi S4 on order, it will arrive next week. Can you tell me what is the current Lease rate,risiduals & MF for this car ? I'm looking to lease for 36months,15k/yr. I have excellent credit & I also have a loan ready from peoplefirst.

The last time I discuss with the Dealer, they wanted .0028 MF...., how should tell them that Audi's MF should be much lower ?

Thanks for your help...

crashtestdingo

Thanks for your reply, Mike. I know that dealers still make money when selling a car below invoice because of the holdback, but after helping my sister shop for a BMW 3-series, which can't be had for less than invoice, I expected the Accord, which is pretty popular itself, not to go for less than invoice, either

firstr

Thanks so much for your response, Carman. I too was concerned about the gap in warranty coverage but couldn't get the dealer to extend it or lower the term, so I backed out of the deal. Instead I am now the proud owner of a 2004 TL. I probably could have done better than $1000 over invoice but they paid my remaining payments on my lease. Final terms got me into the car at 441 per month for 51 months. Keep up the good work!

bmac

Car_Man,
I am considering moving forward on a TL lease (6MT, w/nav, no sec deposit) for 42 months. The current lease terms I was considering was based on 15k miles (.00205 MF, 50% residual). I need to add additional miles to the lease equal to 18k/year for 42 months or 63k total miles. The dealer is telling me the way American Honda Finance factors the additional miles into the lease is by reducing the residual. Does this seem right? Based on the revised payment provided by the dealer the residual was reduced to 47%.

eitan56

Car_Man:

I'm thinking of jumping on the TL bandwagon as well. Looking at a 36 months, 15,000 miles per year. Selling price for non-nav with auto trans looks to be running at $32,000-ish.

Using the MF of .00215 & residual of 56% per the American Honda rates your quoted previously, I calculate the lease to be apporx $446/ month. live in NJ so I'm adding 6% sales tax on the monthly payment. Out the door = $1,346 (1st month + approx $900 Bank & MV)

Is my math correct? Am I in the ballpark? The Acura web site indicates the lease runs in the $480's per month before tax.

Thanks!!

CarMan@Edmunds

Hello iwantfx. You certainly have a very appropriate user id. It is difficult to say how good a deal you are getting on this vehicle without knowing its full MSRP. You should check two places here on Edmunds.com to get an idea of what sort of deal you are getting. The first is the Edmunds.com New Vehicle Price Guide. Go to that section of this site and look up this vehicle's Edmunds.com True Market Value. This will give you an idea of what the market is like for the FX 35 right now. You also should stop by the following discussion to see what other community members have paid for similar vehicles lately: kirstie_h "Infiniti FX45 / FX35: Prices Paid & Buying Experience" Aug 1, 2003 8:06am .

I would be more than happy to calculate a sample lease payment on this model for you. However, in order for me to do so, I need you to post its full MSRP for me. I am not very familiar with the lease programs that independent banks are running on the FX 35 right now, but I am fairly certain that IFS' lease program is probably the best one that is out there at this time. The lease money factor that I mentioned earlier is indeed for consumers who qualify for IFS' top credit tier. I have not seen its lease money factors for any other tiers. I don't think that IFS is one of those banks that provides different money factors for different credit tiers. If I am not mistaken, either you qualify for its best rates or you don't lease through them.

It definitely is not a good idea to make down payments on leased vehicles. I say this for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing through and your down payment essentially disappears. The second main reason is that down payments on leases do nothing to reduce lease-end purchase prices. So this vehicle's lease-end purchase price would be exactly the same, regardless of whether you put $5,000 down or absolutely nothing down on it.

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CarMan@Edmunds

Hey tstarks33. I wouldn't worry about your credit scores. Both of them are very good and should enable you to qualify for almost every bank's top credit tier. Consumers do not have any control over what credit bureau banks use to decide if they will loan money.

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sharkala

Hi Carman,
I was wondering if you could provide me with the lease information(residual, mf,aquisition fees) and monthly payment for a BMW X3, 3.0, premium package, xenon lights, metallic paint, heated seats, MSRP: 43,630 , price quoted 42,430 - I am interested in 36m, 12K a year- Is it true that dealers give a better deal the last week of the month? Thanks you have been very helpful.

CarMan@Edmunds

Hi vyacha1. Kyfdx is correct. Vehicles equipped with navigation systems usually have lower residual values than equivalent models without navigation. Typically, banks lower the residual values for navigation-equipped vehicles by 2%, however I believe that Lexus Financial Services only lowers the 2004 GX 470's residual values by 1% for models equipped with navigation. The drop increases to 2% for models equipped with both navigation and the rear entertainment system though.

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CarMan@Edmunds

Yes, jefe, vehicles' residual values are based upon a percentage of their base MSRPs + the MSRPs of any options that are allowed to be residualized.

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CarMan@Edmunds

Excellent choice in cars, skywalk. I would be more than happy to give you an idea of what its lease program looks like right now. If you were to lease a 2004 Audi S4 Sedan through Audi Financial Services this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00170 and 50%, respectively. It definitely sounds as though the dealer that you are working with tried to mark up AFS' base lease money factor the last time that you spoke with them. They probably figure that they have you trapped if you are set on leasing because you have ordered a specific vehicle from them. The fact that you are not married to leasing and are pre-approved to finance this car will definitely give you more leverage in your negotiations. Tell your dealer that you would prefer to lease this car through Audi Financial Services, but that you are prepared to finance it on your own if they don't use AFS' base money factor to calculate your lease payment.

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CarMan@Edmunds

You're welcome, firstr. When negotiating a lease on a new vehicle, keep in mind that you are free to lease for any number of months that you would like. Don't let dealers dictate the terms of your lease to you. Of course, normally the shorter a lease is, the higher its payments will be, but I would never advise anyone to lease for much longer than their vehicle's warranty. Congratulations on your new Acura TL. It is a great car. Enjoy!

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vyacha1

Thank you. Car_man, so the numbers you gave me is for GX470 and FX35 without navigation?

tstarks33

You keep giving me good news! I will be back once I get some lease offers.

mailman055

Hi Car Man,
   I have seen your previous posts regarding the rates for the 325/330xi 36mon 12k leases in March.
I have two questions..first to verify the numbers 0.001 (330xi) and 0.00125(325xi) both with 60% residual are still correct.
Second...how do the moneyfactor/residuals change for 39 and 42 months?

Thanks for your help.

CarMan@Edmunds

Hi bmac. The numbers that you were quoted to lease a 2004 Acura TL through American Honda Finance Corp. for 42 months with 15,000 miles per year and without any security deposit are right on the money. This is a good thing because it means that the dealership that you are working with is being very straightforward with you. Unfortunately, I am not all that familiar with how AHFC calculates leases for vehicles with 18,000 miles per year. My guess is that if they do not charge you for the additional miles on a per-mile bases that they would reduce the residual value by a certain percentage. Sorry that I can't be of more help.

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CarMan@Edmunds

Wow, eitan56, another Acura TL question huh. This sure is a popular car this month . I would be more than happy to calculate a sample lease payment for you on the exact car that you are interested in, but in order for me to do so, I need you to provide me with its full MSRP. Once I have this last piece of info I will let you know what your payment should be like.

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CarMan@Edmunds

Greetings sharkala. Here is the information that you are looking for. If you were to lease a 2004 BMW X3 3.0 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 59%, respectively. BMW Financial Services' current base lease acquisition fee is $525 in most states. Using these numbers, your zero down, pre-tax monthly lease payment for a 2004 BMW X3 3.0 with a full MSRP of $43,630 and a selling price of $42,430 should be right around $617.

Generally speaking, dealerships do become a little more aggressive with their prices at the end of the month as they try to squeeze a few more sales into their totals. However, whether or not this will have an impact upon your ability to negotiate a good deal on the X3 that you are interested in will depend upon the supply of and the demand for the X3 in your area. Even though this vehicle has not been as well received as BMW had initially hoped it would be, it is in low enough supply that many dealers still have waiting lists for it. If there is a limited supply of this model in your area dealers are unlikely to take a thin deal to move one, regardless of what time of the month it is.

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CarMan@Edmunds

You're welcome, vyacha1. Unless I specified otherwise the residual values that I provided you with are indeed for models that are not equipped with navigation.

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CarMan@Edmunds

You're very welcome, tstarks33. Good luck in your quest for a new ride.

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CarMan@Edmunds

Hi mailman055. The money factors that you mentioned in your post are correct, but the 36 month, 12,000 miles per year residual values for these cars are 62% for the 2004 BMW 325xi and 60% for the 2004 BMW 330xi. The money factors that we are talking about are good for any length lease, up to 42 months. The 2004 325xi's 42 month, 12,000 miles per year residual value (BMW Financial Services is not offering 39 month leases on this model at this time) is 55%. The residual for an otherwise identical lease of a 2004 BMW 330xi is currently 54%.

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justin8

Car_man,
Could you also provide the numbers for a Saab 9-3 Arc. I looked through previous posts and for one form 36/15 but would like the residual value and money factor numbers for 36/12. Also, has the incentives changed on this model?

mailman055

Thanks for the quick info Car Man. I appreciate your continued dedication to this forum.

CarMan@Edmunds

I would be more than happy to help you out, justin8. If you were to lease a 2004 Saab 9-3 Arc Sedan through Saab's captive finance company this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00113 and 52%, respectively. Additionally, Saab is providing $2,000 lease cash on the '04 9-3 Arc Sedan that may be used to reduce your car's capitalized cost.

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CarMan@Edmunds

No problem, mailman055. I'm always glad to help out.

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eitan56

Car_Man:

First, thanks for acknowledging my previous post. I'm looking at the non/nav with auto trans. Sticker price with destination is $33,195. I'm hoping to to negotiate a purchase price of apporx. $31,500. I'm looking at a 42 month lease with $15,000 miles per year. Zero cash down. My credit rating is good, and should allow for a waiver of security deposit if that is an option. I guess the MF varies with & without a security deposit(?) I appreciate the assistance.

moeronn

Depending on where you are located, you should be able to negotiate a non-Navi down just a little lower than 31500, though that is not a bad price. I have received a quote for 31000 for any color other than anthracite or silver at one dealer in So Cal. A couple of other So Cal dealers have quoted 31400 over the phone,, though they might be willing to go just a little lower in person.

As for the money factor, there is a 0.0001 (.00215 vs .00225 ~ 0.24%) difference between leaving a security deposit and not. I believe these numbers are correct, but maybe car_man has some more/better info.

One other thing to keep in mind is that after 42 months @ 15k miles per year, the car will likely be out of warranty. Maybe not a big deal, but it may be something to consider.

mellis

Carman:

Can I please have residual and money factor for an 04 Chrysler Pacifica AWD in New England? 39 months, 12,000 & 15,000 miles per year? If you have the std Chrysler Financial acquisition fee that would be great too.

Just got my postcard from Chrysler letting me out of my Liberty lease 5 mths early!

Mark

mellis

Carman:

My second option is an 04 Grand Cherokee Laredo Columbia.

Could you please quote residual and money factor for a 39 months, 12,000 & 15,000 miles per year? And acquisition fee.

Is DC still providing $3,500 lease cash AND an additional $1,750 loyalty / conquest cash on all 2004 Jeep Grand Cherokee models? I am in New England. Thanks!

Mark

siteexpert

Hr Carman,

Another request please for money factor/ residuals/ and any special lease incentives.

36 months, 12K miles:

Volvo S60 T5

Thanks

iontrap

I'm interested in leasing either a Pathfinder or Murano. Could you let me know what the mf and residual for 36 and 48 months with 25k/year.

Thanks

sjmurray3

If I were to lease a 2004 TL through American Honda Finance Corp. prior to the end of the month, its 4 year 15,000 miles per base lease money factor and residual value should be .00215 and 50%, respectively? would the 42 & 36 month MF be the same? the residual would fall 1% per month or per two months? So confused... Can someone help. My goal is the lowest monthly payment possible with no money down.

jzack24

Does anyone know the current BMWFS residuals for the X3 3.0 for 24 and 30 months, 15K/year?

Thanks!

lawyerman123

CArman what can I expect to pay for a 2004 Jaguar XJ8 with an MSR of $61000? Are they running any deals now? Can you workout a sample lease for me. Thanks you are the best.

nycadguy

Looking for money factors and residuals on a 2004 jetta GL 2.0 on a 36 month lease, 12,000 miles

also for an 2004 Audi S4 sedan, 48month lease, 15K miles a year. if possible, premier purchase numbers (assume tier 1 credit) for the same term, 15K/48months
thanks in advance

jumper4

Today a salesman made a big push for me to take a balloon note instead of a regular lease. I have read in this discussion that they are not popular. Why? I am trying to find the disadvantages to it. I can still walk away at lease end and since I live in Maryland I have to pay full tax anyway. One advantage seemed to be if I really hate the car I can sell it and take whatever loss but be out of it. Only thing I have been able to understand as a disadvantage is that leasing companies are pushing them because they do not hold title and so are not liable. Could someone explain why this works against me? What situation would it be better to have a regular lease instead of a balloon note type lease? Thanks for any advice you can give me.

ponytrekker

Can get a better tax benefit with a lease. Ask your accountant.

mmmc

Hi Car_man:

Got another BMW lease question for you. I'm planning to lease a 2004 BMW 325ci. If I were to do 36 months at 12K miles/year, I understand the MF is 0.00125 and 59% residual for this month. Do you know if the MF and/or the residual is different if I wanted to do a 39 month lease instead? what would the cost difference be for 15K? Are the acquisition fees ($525) and the disposition fee pretty much set? ie. most likely having to pay for both? Heard some people only pay the acquisition. Thanks for your help!

KCRam

Hi jumper4

Essentially, with a traditional lease, you are leasing a vehicle from the finance organization. With a balloon note, you are leasing the vehicle from yourself. In both cases, you are only paying the depreciation of the car for a set amount of time and betting the car will be worth the residual/balloon amount when it's due. You are correct that financial firms are pushing the balloon for liability reasons - several states are enforcing laws that hold the vehicle owner responsible for violations, and in a lease, that is the bank. To get themselves off the hook, the balloon has resurfaced.

Several things to consider:
- do you meet ALL the criteria for a lease, especially mileage, so that you can walk away clean AND deduct the lease payments from your taxes?
- are you only leasing this vehicle because you want it more than you need it, i.e., it's too expensive for you to traditionally finance?
- can you definitely see yourself in this same car in 4 years?

You may find that a low-interest traditional finance may suit your needs by removing the constraints of mileage, wear/tear, and residual value if you plan on keeping the car anyway. If you know you'll be out of it before the warranty is up, a lease should do just fine. If you're in that gray area in between, consider a balloon, and make additional payments to yourself during the note to cover the balloon amount in case you choose to keep the vehicle.

kcram
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CarMan@Edmunds

You're welcome, eitan56. American Honda Finance Corp. will waive its security deposit requirement for its lessees, however when it does so consumers' lease money factors are increased by .00010. Let's work up a sample lease payment for you on the car that you are interested in. According to my calculations, if you were to lease a 2004 Acura TL without navigation (MSRP: $33,195 / selling price: $31,500) through AHFC this month for 42 months with 15,000 miles per, your zero down, pre-tax monthly lease payment should be right around $449.

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CarMan@Edmunds

Greetings Mark. A number of manufacturers are running early lease termination programs right now. I definitely would take advantage of this offer if I received one and was in the market for a product by the same manufacturer. As far as the 2004 Chrysler Pacifica AWD goes, if you were to lease one through Chrysler Financial this month for 39 months with 15,000 miles per, its base lease money factor and residual value should be .00110 and 49%, respectively. The money factor for an otherwise identical lease of this model with only 12,000 miles per year would be exactly the same, but the residual value would increase to 51%. Chrysler Financial's base lease acquisition fee is currently $550 in most states. When negotiating your deal, make sure to take the fact that Chrysler is providing $3,000 lease cash on this vehicle into account.

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CarMan@Edmunds

Mark, I didn't notice your second message until I had already posted my first response. Oh well. According to the latest info that I have seen, if you were to lease a 2004 Jeep Grand Cherokee Laredo Columbia 4WD through Chrysler Financial this month for 39 months with 15,000 miles per year, its base lease money factor and residual value should be .00078 and 45%, respectively. The money factor for an otherwise identical lease of this model with only 12,000 miles per year would be exactly the same, but the residual value would increase to 47%. DaimlerChrysler is still providing $3,500 lease cash and $1,000 lease loyalty cash on all 2004 Jeep Grand Cherokee models. The additional $750 loyalty cash that you mentioned was replaced in March with a new dealer stairstep program that provides dealerships with up to $1,500 dealer cash per Jeep that they sell if they hit certain sales targets. One has no way of knowing how much cash specific dealerships are receiving through this sort of program, but it is important to know that it exists because many dealers will be willing to accept more aggressive deals than they normally would have if this program was not around.

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CarMan@Edmunds

Hey siteexpert. Here is the latest information that you are looking for. If you were to lease a 2004 Volvo S60 T5 through Volvo Finance this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00039 and 55%, respectively. Volvo is not providing any sort of lease cash on this model this month.

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CarMan@Edmunds

Wow, iontrap, you drive 25,000 miles per year. That's a lot of driving ! I believe that the highest mileage allowance offered by Nissan Motor Acceptance Corp. is 15,000 miles per year. If you need to purchase additional miles, you will probably have to do so on a per-mile basis at lease signing. I would be more than happy to give you an idea of what these trucks' lease programs should be like. However, in order for me to do so, I need you to be a little more specific about the exact trim levels that you want, i.e. a 2004 Pathfinder SE 2WD, a 2004 Pathfinder LE 4WD, etc... Once I have this additional info I will be able to help you out. Talk to you soon.

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iontrap

I drive roughly 22k/year. Do you know how much additional miles cost? The Pathfinder I'm considering is an 04 SE 2WD w/popular package and I'm also looking at an 04 Murano SL w/premium package.

Thanks

bluebrian

Ok, I'm in a 39 mo. Lexus IS300 lease ending in June and depending on which numbers I look at, I may or may not be slightly upside down (seems as though Lexus has changed some of their option pricing in the past couple years). Anyway, my question is this...can I sell my car to a 3rd party instead of returning at lease-end without buying the car myself first? I'd like to avoid the sales tax on $20k. Has anyone ever done this successfully? I also noticed that Lexus Finance seems desperate to get in touch with me about my decision, even though I have a few months to go, is this a good sign/bad sign???

thanks,
brian

CarMan@Edmunds

Hi sjmurray3. Hopefully we can eliminate some of your confusion. What exactly are you confused about? Are you just interested in what the lease program for this car should be like for different length leases? If so, this should help. American Honda Finance Corp.'s base lease money factors for the 2004 Acura TL are actually .00215 for 36 and 39 month leases and .00195 for 42 and 48 month leases. It increases these factors by .00010 for consumers who wish to have their security deposits waived. AHFC's current residual value for a non-navigation TL is 56% for a 3 year, 15,000 miles per lease of this car, 51% for 39 months, and I believe 50% for 42 months.

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CarMan@Edmunds

Hello jzack24. Here is the information that you are looking for. According to the latest that I have heard, if you were to lease a 2004 BMW X3 3.0 through BMW Financial Services this month for 24 months with 15,000 miles per year, its base lease money factor and residual value should be .00225 and 65%, respectively. The numbers for an otherwise identical 30 month lease of this truck should be .00225 and 61%.

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CarMan@Edmunds

Greetings lawyerman123. Jaguar is currently advertising a lease on the 2004 XJ8 for $799 per month over 39 months with $3,999 down and 10,000 miles per year. I would be more than happy to tell you what sort of monthly payment you should expect to pay to lease the exact car that you are interested in, but in order for me to to do I need some additional informaiton form you first. This info includes how long you plan on leasing this car for, how many miles per year you want to be able to drive it, its full MSRP, and its selling price. Once I have this additional informaiton I will be able to help you out. Talk to you soon.

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CarMan@Edmunds

Hi mmmc. I do not believe that BMW Financial Services is offering 39 month leases at this time. In the past they have offered leases with 39 month terms, but this is usually a limited time promotion. It is offering 42 month leases right now. Perhaps that is something that you would be interested in. BMW Financial Services 15,000 miles per year residual values are 2% lower than its 12,000 miles per year residuals. BMW FS' lease acquisition and disposition fees are set and individual dealerships do not have any authority to waive or lower them. I have heard that BMW FS will waive its disposition fees in some instances though. Again this is completely up to them and has nothing to do with individual dealers.

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