Lease Questions - Ask Here

ajoe

Car_man

I am back. I appreciate your help and that is why I am back. Can you tell me what the money factor would be for the Honda lease special for the Odyssey EX-RES for both 12k miles and 15k miles per year and the residuals for these miles. I assumming the adjustments to these factors take into account the higher mileage cost - correct?

Also, any opinion the board and from you Car_man, on trade-in value (Columbus, Ohio)for 1997 Dodge GC Sport 75K Miles loaded and in very good condition.

Thanks

hartt

Thanks for the info on the Xtreme Car_man. After looking at the numbers, I think my Dad has decided against it. I'm glad.
Could you please provide the MF and Residual percent on a 3 year lease with 12K and 15K a year on the Trailblazer LS 2WD? I am in Northern Ky.
Thank you.

steine13

" Lease would be 398$ for 36 months with 12k per year. Buy would be $496 for 60 months at 0%."

With Honda doing 24-month Ody leases for $260 or so, why are we having this conversation???

-Mathias

kyfdx

Exactly...even if you roll in all the upfronts and sales tax and go for 15K per year, you are still under $350/month on the Odyssey. The only drawback is having to do it all again in just 24 months.

CarMan@Edmunds

Now you're speaking my language, barbecuejoe. I love BBQ, especially pulled pork and pulled chicken. It must be the influence my southern relatives have had on me . Something does not seem right about the lease that you were quoted. Granted, Lincoln's lease program often varies by region, but in all of the areas that I have seen its program for your monthly lease payment should be less than the number that you were quoted. If I interpreted your post correctly, you stated that you are getting a Navigator with an MSRP of $63,045 for only
$50,597. This is a very aggressive price for this truck. I was under the impression that the most one could negotiate off of MSRP on this SUV was more along the lines of $10,000. Of course, the exact price that you are able to negotiate will vary depending upon the exact model that you are interested in. Let's say that $50,597 is this truck's actual selling price. Using this number, I come up with a 3 year, 12,000 miles per, zero down, pre-tax monthly lease payment of around $591. This is obviously a lot less than the $793 that you were quoted. I think that it is in your best interest to comparison shop with a few other Lincoln dealers in your area a little bit.

Car_man
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buster6

Hi Car_Man,

This one is for a friend. A local Dealer (AZ.) has a buy back Audi A8 with a 100k warranty (2004 with 4 k miles on it). She is looking into leasing this one or a brand new one. Do you know if the rates and residuals are the same for new vs. almost new manufacturer buy back car? Could you please provide me the rates and residuals for either or both if you have them. She is looking for a 3 year 45k lease. Also how do you feel about a buy back car--is it worth the savings if you lease and have a warranty that will outlast the lease?

Thanks!!

barbecuejoe

Thanks Car_man! Yes, they will discount the MSRP down to $56,397 and then there are rebates totalling $5,800, getting me to the net price of $50,597. I thought the lease payments didn't quite add up!! I will shop around a bit more.

salvatore

My 2000 Mitsubishi Eclipse is about at the end of its lease, and Im doing some research about what to do with the car next.

Im pretty sure the lease has 36000 miles on it, and Im now around 39000 miles with about 8 or 9 months to go. Are most leases such that you *have* to turn the car back in to a (in this case, Mitsubishi) dealer, or can I walk into any dealership and have them take the car when I buy a new one? I want to try to turn it in when I have six or fewer months left on it, and I dont want to be penalized for the excess mileage....all while getting a new car (not necessarily another Mitsubishi) out of it.

Before I walk into some dealership looking clueless (which I am atm, heh), I want to know what my options are. Pardon my naiveté, but its been a while since Ive read the lease fine print.

Thanks.

--
.salvatore
blatherings - http://www.sienar.org/
general nonsense - http://www.palmisanonet.com/
psn radio - http://www.palmisanonet.com:9875

esoxmagnum

I received a quote from the dealer on a 2004 Audi A4 Sedan Quattro Auto/Tiptronic lease. They quoted me $462 for a 24 month lease. I am wondering if this is fair as I have never leased a car before. I would be putting $4000 down. The car has:
Metallic Paint
Premium Pkg.
Infotainment Pkg.
Cold Weather Pkg.
17" wheels.

Thanks.

jluague

Hi Car_man,

Thanks for your response. I missed the prices of the 2004 Toyota Sienna XLE. The MSRP is $32,895 and the negotiated price is $ 32,150. Kindly make some calculations to reflect the negotiated price of $32,150 for 36 months and 48 months with 12K miles per year. Thank you.

chriso59

Hi Car Man,

I am looking at leasing a 2004 RSX Type-S. I figured now would be a good time to lease since the 05 RSX is supposed to be coming out soon and I'm hoping there will be some incentives available. CarsDirect's price is $22,305, but I'm hoping that the price will be even lower when I negotiate the deal. Do you think that will be possible? If you could also provide the money factor and residual for a 3 year lease with 12,000 miles and 15,000 miles. Thanks for your help!!

Chris

BTW. I live in MA

keitarou

Hey Carman,

Can you tell me what the MF and Residual for the Audi A4 1.8T is for 12K and 36, 39 and 42 month? Also the same with 15K miles. I am located in NY.

Thanks.

ponytrekker

U R BEING RIPPED BIG TIME. You don't say if it's 3.0 or 1.8t. IF it's 1.8t that's like a ponzi-scheme rip off; if it's a 3.0 yoiu are only being ripped off like a few grand.

shftthis

Hi Car_man,

Am about to pull the trigger on an 04 TL w/Navi 12k or 15k miles 48 months. I've search the forum and I couldn't find details on Leasing a NAVI TL in NY. Could you kindly tell me the residuals, money factor and monthly payment estimates for leasing one in NY this month, based on a $33,950 sell price? After test driving the car I love it so much I don't think I can wait for the 05s to roll into the showrooms. Your help is much appreciated. Thanks!

Sam

chinaman

Thanks Car_man!

Can you please give me residual value and money factor for Accord LX 2.4.

is putting a downpayment same as capitalized cost reduction? When I asked for $0 down from one dealer, the lease payment jumps from $199 to $239 for an LX which means that they just spread out the CCR towards the duration of the lease instead of putting the money out front. So my question is, why do they say not to put any DP when they actually add it to the lease price? Isn't the same anyway?

aea6574

Howdy Mathias:

I guess we are having the conversation because I work at Ford and the Honda is not an alternative for me. Thanks for your response though, you seem to be saying that maybe the Buy is the way to go on this vehicle. Although I do worry about a new model coming out and its value going down even more.

Best regards, tony

CarMan@Edmunds

Hey fuzlbutt. I have seen Audi Financial Services' lease bulletins and it does say ".00005 Minimum Rent Charge Factor" at the bottom of the page, but I was always under the impression that this meant that that this is the lowest lease money factor that AFS can charge, not that dealers are required to mark-up AFS' base money factors by this amount. This certainly is not a huge rate mark-up, but if it bothers you enough, you can always see if another Audi dealer will lease you this car using the base money factor.

Car_man
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CarMan@Edmunds

You're very welcome, goalpost. Yes, the numbers should be exactly the same for the Platinum version of this truck.

Car_man
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CarMan@Edmunds

Welcome to the wonderful world of leasing, acf47. You are on the right track already. Not only have you picked an excellent car with a good lease program, but you have asked for help prior to doing any sort of negotiating. The first thing that you should do is check out the following articles that are available here at Edmunds.com: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment. You should be able to get a good grasp of how leasing works by reading them. Once you have done so, make sure to come back to this discussion to ask any remaining questions that you have.

Car_man
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gwarren

Car_Man
Thank you for your input. As always you make perfect sense, the only true uncertainty would be the Manufacturers decision to "Run a special". This seems unlikely and would be completely unpredictable until they come out with the promotion. I assume very few people have this prior knowledge and it's a well guarded secret.

Gary

superbeagle

Car_man:

Nearing the consummation of my lease for a XC90 2.5T. Here are the two options that I am hearing from the dealer for a 36 month lease with 15,000 miles a year.

If I go with Chase, purchase price is invoice with the $2000 lease cash reducing the capitalized cost of the car. Residual is 54%, money factor is .00210 and assignment fee is $795.

If I go with VFNA, purchase price is invoice. Residual is 55%, money factor is .00187 and assignment fee is $595. I am told that the dealer loses the ability to offer the free versatility package by using the VFNA "special Money Factor," which the dealer says ends up making the VFNA package not attractive so that it is better to go with Chase.

Does this sound right to you (or have you heard this from others). If I could get the VFNA money factor along with the free versatility (invoice less $1806), it ends up being about a $15 difference a month.

Dealer is also offering to buy out my lease on my current Volvo (which would allow him to put the car up for resale and make a nice profit), which is advantageous to me since I don't have to worry about disposition fees or wear and tear charges, which I would expect VFNA to impose.

Let me know your thoughts.

BTW: I recognize that you say that VFNA MF is .00185. However, out of about 10 Volvo dealers in the D.C. area, this was the lowest I could get on both the VFNA MF and a non-VFNA MF.

Kirstie_H

A reporter is looking to interview someone who has leased a used car. Please respond to jfallon@edmunds.com by Tuesday, June 29, 2004 with your daytime contact info and the year, make and model of the car you leased.

ericdkauff

Hi Car_man:

I'm new to this, so I apologize in advance for not providing some of the information you might need.

My wife and I have a 2001 Audi A4 1.8T on a 48 month lease here around Chicago. There are 15 months left on the lease, but we're already starting to look at cars that we'll lease next (wife's pregnant, wants a mid-size SUV, and only wants to lease). We're doing alot of test driving now so that we can narrow that list, but I can't get a nagging thought out of my mind:

Our current lease is for $499/month on the A4. There would have to come a point toward the end of the lease that it would be a break-even situation for us to end the lease early & get into the new lease, even with the penalties.

I'm wondering what, in general, are the penalties for early termination of a lease with Audi Financial Services. I just want to put together a spreadsheet that will tell me when the break-even point is, if any, so that we can get out of the Audi as quickly as possible - just not easy to get babies & car seats in & out of that back seat.

Thanks in advance!

esoxmagnum

It is a 3.0. What would a reasonable lease rate be? Thanks.

ddelise

Hello -

Looking for 36 and 39 month money factor and residuals on the FWD Pacifica for both 2004 and 2005, along with any applicable rebates. I am interested in 12k miles/year. I am located in FL.

I need information for both years so I can determine where I can get the best price.

I am eligible for their Family and Friends program, so I think I can get a very nice deal on this car.

Thanks - Damon

kyfdx

I'm not the expert, but check the residual value on your Audi lease. Chances are its not even worth that now, and the only "break even" point for you will be when you turn it in, under your allotted mileage.

Leases are not designed to build equity, and most (although, there are exceptions) leases will cost you a ton of money to get out early. With a payment of $499 on a 48 month lease, I'm assuming you didn't make much of a downpayment.

If you are near the end of the lease (3 months or so), it is usually cheaper to keep the car in the garage and make the rest of the payments than it is to turn in early. 48 months is a long time, and life situations change, which is why I usually recommend a lease of no longer than 39 months.

regards,
kyfdx

lbratt

I am new to the leasing world. My son and I just leased a 2004 Honda Accord coupe on Sunday. A woman hit him and did about 4k worth of damage on Monday. First I found out that the insurance company is only offering $797 for diminished value. This does not sound right. The car was less than 24 hours off the lot with 100 miles on it. To us it is worth thousands less. And to anyone who would want to buy it. Can I get more than this?
Second, I have been told that the leasing company gets the diminish value check not us.
Third, can I get out of this lease with minimal cost due to the circumstances? I no longer am leasing a car with the same value and isn't that what you are paying for is the depreciation? And it has greatly depreciated not due to us. I have tried to make a trade deal with the dealer but he said this would cost me about 2k more money.
What do I do. It sounds as if I get no benefit from the fact the car has had a big depreciation hit!
We put 6k down so my son could afford the payments and he had always intended to buy it out in the end.
Do we have any recourse or protection?

kyfdx

1) You don't own the car.. No diminished value for you, because you have no equity involvement. When your lease is up, you have no loss.

2) If the car works as intended, then you have suffered no loss.. This is the advantage of leasing.. When the lease is up, you walk away.

3) You may have intended to buy it, but be glad you leased it.... Otherwise, you would be stuck with owning it.

4) The short answer: No, you have no recourse.

Really.. be glad you leased. I had the same thing happen. It sure felt good to just turn in the keys at the end of the lease.

regards,
kyfdx

leeandgina

I just turned in an Audi S4 Avant to AFC and for my own curiousity i asked the question about early termination.

What AFC said was they send the car to auction and whatever it gets is taken off the balance owed (whatever they determine the payoff is) and you get the bill for the difference. If you terminate with less than 90 days left you just turn in as a normal end of contract lease return.

If you can find the wholesale value of your car now along with what AFC want as a buyout of the lease you will find out what you owe to get out of the lease. Hope this helps

anonymousposts

That's why it is never a good idea to put a down payment when you are leasing. All you are doing is paying off some of the depreciation ahead of time. Unfortunately there is no easy way out of this situation. What area of the car was damaged? $4000 is a lot of damage but depending on the impact area it should not affect the way the car drives. Just live with it for the remainder of the lease and send it back to Honda. Just make sure the repairs are done at an authorized shop so they will not ding you for it at lease end.

307web

They are not going to auction it for the wholesale value. They would dump the car for cheap to get rid of it quickly and send a bill for the balance if that was the policy. They would have zero incentive to try to maximize their selling price and minimize what you owe.
You are responsible for whatever you signed in your lease agreement.

leeandgina

I can only go on what AFC told me over the phone when i was enquiring about my lease turn in. If you want to get out of your lease early, why would Audi want to do you any favours?

They dont care what happens as long as they get their money, whether its from an auction, from the customer or most likely from both. If they take the car back what else would they do but wholesale it? A dealer isnt going to do anyone any favours either - if they want that specific car they can goto the auction and bid on it.

A lease car doesnt belong to the dealer who sold it, it belongs to AFC and last time i checked Audi doesnt sell cars directly.

rroyce10

........ $6,000 down .? .. Yikes ...!

                 Kyfdx has hit the Bingo number for the day ..

                 Anytime you drop more than $500/$1,500 down in a lease (depending on the payment and the vehicle) you might as well call the Fire department and just set fire too it and watch it burn .. it's lost forever.

                 You don't own this vehicle and yes, the lease company gets the DV check, not you ... you leased this puppy, you basically rented it for the next 2/3 years so the depreciation has "nothing" to do with you, buying it at the end is an option that you can choose or not .. remember, the dealer has -0- to do with this, the lease company and you my friend, they own the vehicle and you just have the permission and make the payments to drive it .. so just keep it - enjoy it and forget about it until it's over ..

        $6,000.? ~ what were you thinking ...?

                            Terry

rroyce10

..... ** What AFC said was they send the car to auction and whatever it gets is taken off the balance owed (whatever they determine the payoff is) and you get the bill for the difference **

              Thats "about" right ..... also any remaining payments, Plus "any" early termination fee .. -Plus- any incurred cost for the auction like tires, dent removal, paint work, interior fixes, transport, auction fee's and the Rep cost ... my neighbor was told $425 by the dealer (dealer has -0- to do with it, it's not his vehicle) and he received a bill 3 weeks later for $1,747 .. Aaaaah the advantages of leasing, ain't it great ...........

                             Terry.

steine13

... or is the "send it to auction, customer pays the difference" the sweetest thing that could happen to the leasing co.???

Unless it's a super-clean Lexus, people, do NOT do this. Run it to the end, pay the mileage, be done with it.

ericdkauff: I don't have a degree in automobiles, but I can add and subtract... $499 for 48 monts is $24k on my yellow pad... for a 1.8T...??? To lease??? The car was what, $30 sticker? Something here doesn't add up...

And while I'm counting on my fingers, that Ody lease at $259/month... comes with enough "down" that it's really $310 or so a month... still a sweet deal, but not THAT sweet.

The only time I'll lease is when I'm planning to get into an accident...

-Mathias

rroyce10

.... ** The only time I'll lease is when I'm planning to get into an accident... **

            .l.o.l... oooh I like that, can I use it.?

                Thats what I was thinkin' 2 months ago to the tune of $18 large ....

                           Terry.

sageody

I just leased an EX-RES, 24m/30k miles, TTL(IL taxes full value of car, not usage), 0 down, $309/month. Local dealer has over 125 Odysseys(looks like the factory lot), they wouldn't go below $339. Had to drive 40 miles, worth it. Will the prices go lower with the number of 04 Odysseys sitting on lots...

kyfdx

$310/month for a $29K car.. You can't drive them any cheaper than that. IF you wanted an Odyssey, you'd be crazy not to lease it at those terms.

The only mistake our friend with the bashed Accord made, was making the large downpayment. He is very lucky the car wasn't totaled.. THEN, he actually would have lost $6K. Considering the accident, leasing is the best thing thats ever happened to him. My wife was rear-ended when hers had just 11K miles.. $9000 of damage. It was a good car for the next 2+ years, and I happily turned it back in and walked away with what I put into the deal: A big fat zero.

regards,
kyfdx

steine13

You're right, $310/mo is dirt-cheap for that car. So much so that I actually considered it :-)

But I just don't need it, and I figure my Vibe is costing me less than half that, so what the heck...

I was just pointing out that "$259/mo" with $1200 down or whatever sounds better than $309/mo, which is actually the same thing.

Taking a break at work, and grumpy,
-Mathias

anonymousposts

We leased our Ody for $330 *this includes taxes) per month with nothing down on May 1. We had wanted an Ody since they came out in 99 but it was just the 2 of us so we couldn't justify it and they were too expensive until now.

kyfdx

Thirty-some cars in the last ten years, and you couldn't "justify" it? Come now, we edmunds people can justify almost anything, if our spouse doesn't ask too many questions...

regards,
kyfdx

anonymousposts

The Odyssey was one that I couldn't talk my husband into. Even when we found out we were having a baby. Once we had the baby it took a mere conversation that went like this

Me: "Honey, you can get an Odyssey for $259 per month for 24 months"
Him: "An LX?"
Me: "No it's an EX .. with the DVD player"
Him: "For $259?"
Me: "Yep"
Him: "Maybe we'll drop by the Honda dealer"
Me: "You know if we "drop" by the Honda dealer we are going to end up buying it"
Him: "Are you ready to go?"

So that's how we added an Odyssey. Believe it or not all of our 30+ cars made sense at the time. The Ody didn't make sense until we had a baby, a bigger yard, and they were $259 per month.

kyfdx

My kind of conversation..

Her: Can you explain to me why you have spent $1900 on tires/wheels in 3 months on a car that is still less than one year old?

Me: I could explain how it will not cost us that much in the long run, but you don't really care, you just wish you could spend the money on something you want.

Her: It seems like a big waste of money to me.

Me: I did it for you, it IS your car, after all.

Her: Whatever...

tdkeator

I went to one Dallas Lexus dealership looking for a 2004 ES 330 with 6 disc, auto rear sunshade, wood/leather upgrade, etc. MSRP = $33,600. The best lease rate they could offer was $750 down and $502 per month (with excellent credit). I found the price too high, considering the lease calculator on Lexus' website said the same car should be $441 per month. So I got a second quote from another nearby dealer, and they got me the same exact car for $1500 down (Lexus kicked in an additional $750 toward cap reduction) and $381 per month. Terms are 36 mo., 12,000 miles, gap, no fees at termination. I couldn't believe the difference. Any reason for the difference?

kyfdx

Lease prices are determined by three factors..

Residual percentage (depreciation)
Money factor (interest)
Cap cost (price of car)

The first dealer was charging you a higher price for the car. Leasing is no different than buying.. A lower price on the car means a lower payment.

regards,
kyfdx

simplyput

Might have made a deal - looking for the gotcha's:

2004 JGC Laredo
V8, leather, sunroof, winter pkg
MSRP: 34480
PRICE PD: 29888
LESS: 6475 (various cust incent/rebates)
LEASE PRICE: 23413
39 mo/39K mi
=$265.57/mo (taxes included)
+1200 cap cost reduction

The CCR is the only thing that bugs me - this part negotiable??

tdkeator

With both dealers, I negotiated the price down to $31,400, including tax, which in Texas, is 6.25% of the total purchase price, even on a lease. And both claimed that Lexus, due to excess tax credits with the State, was paying the tax for me. However, I think dealer number 1 may not have figured that tax break into the lease price he was quoting (possibly because he intended to keep the credit for himself), whereas dealer number 2 gave me the tax break. In the end, I guess the first guy gave me a $31,400 + tax price, and the second guy gave me a $29,400 + tax price. I leased through Toyota financing, so the residual and money factors must have been the same. Price must be the difference, specifically the tax credit. I guess dealer number 2 was on the edge of a rebate plateau and eager to deal at the end of the month and quarter.

gwarren

Car_Man
A new question, that may be more complex. Friend of ours has a Volvo on lease from Volvo. She is not married and has a 19 year old child, who was driving the vehicle. The owner/ Lessee, deceased. The child is driving the vehicle and we are now assisting her with all of the financial and so on. Do you know what the proper protocol is in this situation. I called Volvo Finance and didn't really get a reasonable answer. (They said that she has to turn in the car and pay the balance of the payments 15 left or the difference between the current payoff and whatever they say the car sell for at auction.
Well that doesn't; work and as she is not a party to the lease agreement should really not have any responsibility. Do you have any prior dealings with similar matters?

Again thanks as always for your help.

Gwarren

PS I will decide in the next couple of days on the RX 330, based on the deal offered. So far the lease figures have not been to my satisfaction

kevhead

Can someone help me run the numbers on 04 TL auot w nav? 3 year lease 25,000 mi per. The selling price is 33,300, but I don't know where to begin because of the excess mileage. I know the excess mileage is .15 per but I think that if I buy them upfront it is .10. Is this the best way to go for someone in sales that gets a new vehicle every 3-4 years or should I finance it over 60mos and hope that after 3-4 years the trade in value is close to what I owe? Thank you

rroyce10

...... Sorry to hear about your loss ..

             I see your from Florida, so maybe this will help .. handle all the court/probate stuff as you would anything else, remove any drivers *out* of the vehicle, unless their name is "on" the lease .. put said vehicle in the garage and leave it there, no one drives it, got it.? ..

               Finish any last issues, when it's all over, be nice, be firm, have no communication with the dealer, because they have -0- to do with it, when everything is completed, call VF and make delivery arrangements, you may want to make a payment just to keep it current so there isn't any liens attached, that makes things simple depending on the financial/business situation ... the pay-off right now is "approx" the balance of the payments, plus the residual, so unless it's something you can't live without, back it goes ....

                   I hope this helps ..

                                Terry.