Lease Questions - Ask Here

automan227

Hey Car_Man,

I wondering if you could calculate what my pre-tax monthly payment should be on a 2004 Cadillac SRX V6 AWD 1SB with an MSRP of 45,780 (no Nav) with the follow information (which is on the sheet the dealer gave me) for a 48 month lease:

Cap Cost (Initial): 42,986
Acquisition Fee: 595
Rebate: 3250
Adjusted Cap Cost: 40,331

The Dealership quoted me 494.95/mo with 0 down, and no security deposit. According to the quote sheet, the APR used was 3.950 % which comes out to about .00165 money factor, and they used a residual of 47%.

Are they where they should be, or are they inflating the price through the money factor and residual?

BTW, I am in the Mid-Atlanic Region.

Thanks for the help,

AS

stevestein

I recently leased a Lexus, and I know I got a very good cap cost. Once I got a price I was happy with, I took the various lease options the salesman had is his notebook at face value, and didn't try to negotiate any portion of the lease (MF, Acq fee, turn-in fee). He got me with a bank that was better than Lexus financial, but I'm curious to know for the next time if I stopped the negotiating process too soon and should have looked for movement there. I have excellent credit. Are there any reliable third party banks/leasing companies that can be shopped by the consumer?

jabber

Car-Man,
While you're investigating the G35 do you mind posting for the G35x sedan on 36 mos, 15K miles:

-Residual
-Money Factor
-Acq Fee?
-Security?
-Disposition Fee?
-Over mileage charge?

Do you just post manufacturer leases or do you also have access to bank programs like Chase Auto?

Thanks in advance!

scottyt24

Hey CarMan-

One more for the MDX touring with NAV, can you give me money factor and residual for 48 months and 12K per year??

fuzlbutt

Hi Car_Man. Been a few months since my last post. My special order Avant is on a boat and due here last week of June to early July, so I would like to check the June program for Indiana, please, when you get latest data.

MSRP $35,195
Cap cost $32,000

Looking at 12,000 miles for 39 or 42 months, whichever is more favorable. What would be M/F and residual?

In April when I ordered, they were having a great deal with no down payment. Last month it looked like they were trying to request money down. Is this negotiable if one is advertised for June, especially since I have already locked pricing with the dealer?

Thanks for your great service!

pen101

Car_man, I hope you can help here.

In 6 months, the 36-month, 36K mile lease expires on my BMW 530i. I pay $535/month. It currently has 30K miles. About 65% of my driving is deductible business miles. I also own outright a 1998 Lexus ES300 with 68K miles. Current Edmunds TMV for private sale is $32,400 for the BMW and $14,927 for the Lexus. I can buy the BMW at lease-end for $28.8K. I prefer the BMW to the Lexus. However, I also want to consider the full cost of ownership.

Questions:

1. If TMV is higher than my lease buy-out cost, should I buy the BMW and turn around and sell it, or are there some hidden costs I am not considering (i.e. having to pay sales tax)

2. Which of the following options makes the most financial sense, considering maintenance costs, reliability and depreciation (BMW at $3K/yr, Lexus at $2K/yr) where I plan not to buy/lease another car for at least the next 3 years: (a) Buy the BMW, sell the Lexus to finance the BMW purchase, (b) Return the BMW, keep the Lexus, or (c) Return the BMW, sell the Lexus, and lease a new BMW (or another car) at similar monthly payments?

smd5

Carman - Can you please give me the rates and residuals for the 2004 Jaguar S Type 3.0 for 39 mos/15k miles. I live in NYS if that makes a difference.
Thanks

hpowders

Hello Car Man. Please give me the residual and mf for a Lexus LS430 with premium package in Florida. Thank you.
Howard

CarMan@Edmunds

Hi Gerry. I do not personally keep tabs on balloon note programs and do not have a lot of experience with calculating balloon note payments because even with their increased popularity they still represent a very small percentage of car deals. Sorry that I could not be of more help.

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CarMan@Edmunds

No problem, turbotorque. I am glad that things worked out so well with the Passat that we discussed several years ago. You're right, the Prius is a very hot vehicle right now, given the increase in gas prices. Most dealers are able to sell every one that they get at full MSRP, or even a premium. To make matters worse, I believe that the Prius has pretty low residual values because of the lack of history for this type of vehicle. Volkswagen is not able to sell its diesel models in several states, including California. The U.S. is supposed to be getting new, cleaner diesel fuel in the near future that should enable diesels to pass the emissions requirements for every state.

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CarMan@Edmunds

Thanks for posting the reminder for me, JR. Here is the information that you are looking for. If you were to lease a 2004 Audi 1.8T Avant through Audi Financial Services in North Carolina this month for 36 months with 15,000 miles per year, its base lease money factor and residual value should be .00091 and 53%, respectively. The 39 month numbers for this wagon should be .00091 and 51%. If you were to lease a 2004 Audi S4 Sedan through Audi Financial Services in North Carolina this month for 36 months with 15,000 miles per year, its base lease money factor and residual value should be .00140 and 49%. The numbers for an otherwise identical 39 month lease should be .00140 and 47%.

Please let me know if you have any other questions.

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CarMan@Edmunds

No problem, oidvoid. Talk to you then.

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CarMan@Edmunds

Hi Charles. GMAC's lease rate for the 2004 Corvette is still 4.75%, but its residual values may have fallen a point. Its 3 year, 15,000 miles per residual value for this car is currently 53% and its 4 year residual value is 46%. Add 3% to these percentages for 12,000 miles per year leases.

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CarMan@Edmunds

Hello michasoo13. All of the dealer cash that BMW was providing on its vehicles in May was continued through June 30th. The main difference in its lease program this month is that it enhanced its offers on the 2004 X3 and 2004 X5 a little bit. I would be more than happy to give you an idea of what its lease program is like on the model or models that you are interested in if you let me know exactly which ones you are looking at, how long you want to lease them for, and how many miles per year you need to be able to drive them.

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CarMan@Edmunds

Thanks for taking the time to post a reminder for me, maxim49. Here is the information that you are looking for. If you were to lease a 2004 Infiniti G35 coupe through Infiniti Financial Services this month for 39 months with 15,000 miles per year, its base lease money factor and residual value should be .00215 and 58%, respectively.

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CarMan@Edmunds

You're very welcome, ajoe. Most manufacturers introduce their new incentives and lease programs at the beginning of the month. From time to time they will revise their programs mid-month, but this is definitely the exception rather than the rule.

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CarMan@Edmunds

Superbeagle, I've never heard anything about these two programs not being compatible and don't see why they wouldn't be, but I suppose that anything is possible. I would call, visit, or e-mail a few other local dealers to see what sort of quotes they give you if I was in your situation.

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CarMan@Edmunds

Hi ec99ss. I would be more than happy to give you an idea of what Infiniti's June lease program is like on the G35 Sedan. However, in order for me to do so, I need you to tell me if you want the 2WD or AWD version, how long you want to lease it for, and how many miles per year you need to be able to drive it.

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CarMan@Edmunds

I would be happy to help you out, automan227. According to my calculations, if you were to lease a 2004 Cadillac SRX V6 with an MSRP of $45,780 and a capitalized cost of $40,331 through General Motors Acceptance Corp. this month for 4 years with 12,000 miles per, your zero down, pre-tax monthly lease payment should be right around $494. So as you can see, it appears as though the dealership that you are working with is being very straightforward with you.

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CarMan@Edmunds

Hi stevestein. Don't be too hard on yourself. Many many consumers negotiate the selling price of the vehicle that they are interested in leasing and forget all about making sure that their dealer is not marking-up the money factor that is used to calculate their lease payment. If you were able to lease through a bank that had a better lease program than the one that Lexus Financial Services was offering then you did fine. Most banks do not lease vehicles directly to consumers, but go through dealerships. Dealers have computer systems that enable them to search for the banks that have the most attractive lease offers on any given vehicle and they have relationships with major independent banks, like Chase. It would be next to impossible for someone to know the current offerings of every independent bank in the country.

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CarMan@Edmunds

Here is the info that you are looking for, jabber. If you were to lease a 2004 Infiniti 35x sedan through Infiniti Financial Services this month for 36 months with 15,000 miles per year, its base lease money factor and residual value should be .00169 and 58%, respectively. IFS' base lease acquisition fee is $550 in most states. I am not positive, but I believe that it charges a $350 disposition fee. Your car's security deposit would be its monthly payment rounded up to the nearest $25 increment. I do not personally keep tabs on the lease programs that are being offered by independent banks.

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wheel

Car_man,

I am new to this board. I need your help. I lease a 2003 Acura TL - I am very happy with the car etc. But I now want to get out of the lease, and (1) buy the car, or (2) trade the car for another vehicle (which I want to buy).
What should I do, and not do.
Appreciate your help - thanks in advance.

rsf

Car_man- For the month of June, please tell me which lease program offers the best residual and MF for leasing a 2004 Acura TSX 5-speed automatic, 12,000 miles/year, 48 month term, zero down, Beacon 810.

I was quoted a residual of 47%, MF=0.001460, no dispostion fee through the Acura dealership.

Are there any better programs out there and **what is the best way to search the internet for the best deal???

Thanks in Sarasota, FL.

bluebrian

Car man-

Do you have the latest money factors/residuals for a 15k miles/yr lease on these two models?

I'm open to anything between 36 and 48 months. I see Lexus currently has some incentive finance rates (2.69% I believe), should I expect my money factor to reflect those rates?

Does anyone have any experience with turning in a leased Lexus for another? If so, I'd like to hear your experiences.

Any help appreciated...

Thanks,
Brian

michasoo13

thanx car_man for your promptness!!! you are the man!! i would be very greatful if you told me more about the enhanced lease program bmw is having for june on the X3 2.5L vs the X3 3.0L both w/Automatic Transmission. And when you say dealer cash incentives does that mean we have a choice of minusing it off the negotiated price or putting it into our cap cost reduction as part of the down payment? and if so, which one is more beneficial in lowering my overall monthly payment?? thank you again car_man. we would like to lease between 36-42 months for about 12k-15k/year.

CarMan@Edmunds

Hi scottyt24. If you were to lease a 2004 Acura MDX Touring with navigation through American Honda Finance Corp. this month for 48 months with 12,000 miles per year, its residual value should be 51%. Acura is not providing any sort of lease support on this truck right now. So if you were to lease one through AHFC, you would have to use its standard lease program. I have not seen what its base standard lease money factor is yet this month, but I suspect that it is around .00190 to .00200 for this length lease.

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CarMan@Edmunds

You're very welcome, fuzlbutt. If you were to lease a 2004 Audi A4 1.8T Avant through Audi Financial Services in Indiana in June for 39 months with 12,000 miles per year, its base lease money factor and residual value should be .00086 and 53%, respectively. As far as making a down payment goes, as a consumer you can always lease vehicles without making any sort of capitalized cost reduction. The only things that you will be required to pay at lease signing are your vehicle's first month's payment, a security deposit that is equivalent to the monthly payment rounded up to the nearest $25 increment, and Audi's lease acquisition fee of $575 in most states. In fact, Audi Financial Services is actually waiving its security deposit requirement on this model this month so you won't have to pay that.

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CarMan@Edmunds

Hi pen101. You should be able to make money on your leased vehicle by purchasing it and selling it on your own if it is actually worth more on the open market than its lease-end purchase price. However, you need to be absolutely positive that it is before you purchase and try to sell it. It sure would be painful to go through all of the trouble to purchase your leased vehicle and deal with the hassle of selling it on your own and end up losing money. As you mentioned in your post, don't forget to take the fact that you will have to pay tax into consideration.

What you should do with these cars all depends upon which one you like driving the most. Looking at this situation from the standpoint of spending the least money, your best bet would probably be to turn in your leased BMW and continue to drive the ES 300. Having said this, as long as money is not a problem I personally would lean towards purchasing and keeping the BMW or leasing a new one and selling the Lexus because I would rather drive the 5-Series, but that is more of a personal preference than anything.

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nbty

Hi carman still looking into this vehicle can you let me know the the numbers for this month.
NY area
3yr/36

thanks again

shicks1

Hi Carman,

I am thinking leasing a BMW 325i or 325cic. I need your advice. I see that there is some cash back now on bmw's - 1200$ on 325i. Does it make sense to try to lease this late in the year, or am I better off waiting for 2005 models?

I am looking for a 24 month lease 12k miles. If you could provide me with the numbers for a 2004 and if you know them for a 2005 that would be great. I don't want to go longer than 2 years, I like to have a new car often.

Back in March I went to the dealer and they quoted me 73% residual and 3% money factor. They discounted the car 1700$.

Thanks in advance,
Steve

ajoe

Thanks Car_man,

You have been very helpful. Now I can plan on my purchase and see how I can do the best on my existing vehicle. Any suggestion on getting the best value on 97 Grand Caravan Sport excellent condition 75K Miles should I try private sale or trade in. From the site it appears that there is a 1-1.5K difference in trade-in vs private sale.

Thanks again.

jabber

Thanks Carman. Sorry for not asking initially, but is the MF and Residual any different for 39 mos as opposed to 36 mos on the G35x for 15K miles? Also, what is the over mileage charge? Thanks again.

maxim49

Thanks a lot Carman. Hopefully my car will be delivered by the end of this month, or I might lose another fraction of a point on the MF if it's delivered in July.
Thanks again for your ongoing assistance.

CarMan@Edmunds

Hi smd5. Here is the information that you are looking for. According to the latest information that I have seen, if you were to lease a 2004 Jaguar S Type 3.0 through Jaguar Credit this month for for 39 months with 15,000 miles per year, its base lease money factor and residual value should be an attractive .00009 and an unattractive 44%, respectively. When negotiating your capitalized cost for this car, keep in mind that Jaguar is providing $2,000 dealer cash on '04 S-Type 3.0L models that may be used in conjunction with Jaguar Credit's lease program.

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CarMan@Edmunds

Hey Howard. I would be more than happy to give you an idea of what this car's current lease program is like. However, in order for me to do so, I need you to tell me how long you want to lease it for and how many miles per year you need to be able to drive it.

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CarMan@Edmunds

Welcome aboard, wheel. I am sorry to say that it could be fairly expensive for you to get out of your current lease well before its scheduled end date. In order for you to do so, you need to purchase it from the bank that you are leasing it from and then sell it or trade it in on your next car. There is a decent chance that it will cost you more money to purchase your leased TL than it is currently worth on the open market. Not to mention the fact that your bank may charge you some sort of early lease termination penalty for ending your lease early. In order to find out exactly how much money it will cost you to get out of your lease right now, you need to place a call to American Honda Finance Corp., or whichever bank you are leasing it through, and ask them how much they will sell you your car for right now. Once you have this figure, compare it to what you can realistically expect to get for it by selling it or trading it in. The difference between these two numbers is how much it will cost you to get out of your lease at this time.

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CarMan@Edmunds

Greetings rsf. You certainly have a good credit score. You should not have any problem qualifying for American Honda Finance Corp.'s lease program. If you were to lease a 2004 Acura TSX without navigation through AHFC in any state but New York this month for 4 years with 12,000 miles/year, its base lease money factor and residual value should be .00215 and 51%, respectively. Since Acura is not providing any sort of lease support on this car this month, I would not be surprised if you could lease one through an independent bank for less than you could through Honda's captive finance company. Unfortunately, it is difficult for individual consumers to find out which independent banks have attractive lease programs. Your best bet is to comparison shop with a few other Acura dealers in your area to see if you can beat the deal that you have already been quoted.

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CarMan@Edmunds

Thanks for taking the time to post your question again, Brian. If you were to lease a 2004 acura TL without navigation through American Honda Finance Corp. this month for 36 months with 15,000 miles per year, its base lease money factor and residual value should be .00250 and 55%, respectively in any state but New York. If you were to lease a 2004 Lexus IS 300 without navigation and with an automatic transmission through Lexus Financial Services this month for 36 months with 15,000 miles per year, its base lease money factor and residual value should be .00105 and 50%, respectively. This money factor is equivalent to an interest rate of right around 2.5%.

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CarMan@Edmunds

You're very welcome, michasoo13. Since BMW's current cash incentives are dealer cash, you as a consumer do really not get to choose whether to use it or not. This cash is given directly by the manufacturer to dealers. The fact that you know about it will probably help you to be able to negotiate a more attractive selling price though. This cash can be used in conjunction with BMW Financial Services' leases so you do not have to choose between the cash and the lease program. If you were to lease a 2004 BMW X3 2.5 through BMW Financial Services this month for 39 months with 15,000 miles per year, its base lease money factor and residual value should be .00175 and 59%, respectively. The numbers for an otherwise identical lease of a 2004 BMW X3 3.0 should be .00150 and 59%. BMW Financial Services leases with only 12,000 miles per year have residual values that are 2% higher than its leases with 15,000 miles per year.

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deq

I currently lease a 2002 Trailblazer that was alloted 45K miles. My lease is up in August and I have 88K miles on it. Obviously I don't want to buy the truck, but do I have any options with the dealership? Plaes help!!

307web

Have you had it for 2 or 3 years? 45K seems to have been a healthy mileage allotment even for 36 months. What happened that caused you to drive almost twice as many miles as what you signed up for?
You will lose money whether you buy it and resell it at whatever it's worth with that mileage or pay the mileage penalty and turn it in. You will need to calculate which will cause you to lose the least amount of money.
I don't see why they would give money away by giving you a break unless you lease another one from them and they roll most of the cost into the next vehicle.

hpowders

Sorry Car_ Man. I want to lease the Lexus LS 430 for 36 months, 36,000 miles total with premium package in the Tampa, Florida area.
Thanks.
Howard

horsegirl

This is my first time owning a car and I'm doing all the research I can before I pull the trigger. I have terms and conditions from a dealer as follows and I was wondering if this is a good lease deal:
42 months
10,000
$15,500 residual (just learned what that term meant)
$2,158 down (which includes a security which everyone tells me I should NOT pay)
$1,000 free wear and tear incl tires
$310 a month.

Do you think I could get him to 12,000 miles and $290?
He also offered a 48 month term for $299.

Any help you could give to this first time buyer would be wonderful!

arlene

I am a Realtor putting about 20K miles/yr tops...because I'm an independent contractor, I need to deduct as much as possible from my income for expenses. I always buy used cars, now driving a '97 Buick LeSabre w/ 110K miles + & my spouse will be selling his '96 Saab to drive the Buick 20 miles/day. Anyone out there know the pro's/con's of leasing myself a vehicle so that I can deduct the expense as opposed to buying a good used car with low mileage and just deducting the mileage as an expense. Thanks.

rroyce10

....... 88k ~ Bud, what were you thinkin' ..?

             ** My lease is up in August **

              Kinda like locking the barn doors after the horse has been stolen, don't you think.? .. the dealer has nothing to do with it, it's between you and the lease co, that being said, probably the best thing you can do is suck it up and pay for the miles ... loaded up and Clean "4wd" 02 LT Trailblazers with 90k are barely sneaking past the $11/$12 range .. no place to go with this one, so take a deep breath ..........

                          Terry.

CarMan@Edmunds

Hi nbty. In most of the country, Volvo Finance's current 3 year, 12,000 miles per base lease money factor and residual value for the 2004 Volvo XC90 T6 are .00199 and 55%, respectively. Having said this, I have heard rumors of enhanced lease support in the New York area and even of new dealer cash on this model, but I have not been able to confirm them yet.

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CarMan@Edmunds

Hey Steve. BMW's lease program on the 2004 325i is not that bad right now, when one takes the fact that there is dealer cash on this model into account. It is difficult to say how much BMW's residual values will go up for this car when the 2005 version is introduced, but if I had to make an educated guess I would say that you are probably better off getting a really low selling price on an '04 model and leasing it now instead of waiting. Again though it is difficult to say what BMW's future lease program will be like for certain. If you were to lease a 2004 BMW 325i through BMW Financial Services this month for 2 years with 12,000 miles per, its current base lease money factor and residual value should be .00220 and 68%, respectively. The 2005 models are not out yet so I can't help you out with information on leasing one. You definitely should be able to negotiate a significantly larger discount on this car now than the $1,700 that you were offered in March.

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CarMan@Edmunds

You're very welcome, ajoe. Generally speaking consumers are able to get the most money for their vehicles by selling them on their own instead of trading them in. Some consumers like to trade their vehicles in because their state only charges sales tax on the difference in price between their new and old vehicles. This may not matter in your situation though because it is never a good idea to put money down when leasing. I do not believe that you will receive the tax benefit of trading in if your dealer cuts you a check for your current vehicle. You may want to look into your state's specific tax laws just to make sure though. If you do not receive any tax benefit and can deal with the hassle of selling privately, that is the way to make the most money off of your current van.

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CarMan@Edmunds

No problem, jabber. IFS' factor and residual for a 39 month 15k lease of an '04 G35x are currently .00179 and 54%. I am not sure what it charges for additional miles, you will have to ask your dealer or call them directly to find out.

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CarMan@Edmunds

You're welcome, maxim49. I am glad that I was able to help you out. Let me know how things end up.

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