Lease Questions - Ask Here

CarMan@Edmunds

Wow, dvlsrthand, this definitely does not sound like a dealer that I would want to do business with. Was your deposit supposedly refundable? If so, see if you can get this dealer to give you your money back. Even if it was supposedly refundable, dealers are notorious for dragging their feet in giving deposits back, so be persistent.

Unfortunately, there is no magic way to make negative equity on one's current vehicle disappear. The least expensive way to get out from under a leased vehicle that one is upside down on is to wait until you are closer to the scheduled end of the deal to get a new vehicle. If this is not an option, then try to get as much money as possible for your leased car or truck. You do not necessarily have to trade it in to the dealer that you are getting your new vehicle from. You can always try to sell it to a different dealer, like CarMax, or sell it on your own and pay off the lease by yourself.

As far as mid-size SUVs that have good lease programs on them right now goes, BMW enhanced its lease program on the 2005 X3 in Mid-February. It is very attractive right now. Toyota is running a fairly attractive lease program on the 4Runner and Highlander in most areas right now as well. Honda's lease program on the Pilot and Lexus' lease program on the RX 330 aren't bad either.

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CarMan@Edmunds

Hello paulsfca. I am not sure if Saab Financial Services will negotiate vehicles' lease-end purchase prices. If I had to make an educated guess, I would say that they probably will in some instances. You certainly should give it a shot. You don't have anything to lose by trying. When you call them, give the impression that you are right around your mileage limit. The fact that your car has low mileage makes it more attractive for them to take back. Subaru's incentives on the Outback are already higher than they were a couple of months ago. It is difficult to say if its lease program will get any more attractive if you wait another couple of months to lease one. I personally feel as though it probably would not be worth extending your current lease for a couple of months, but it is difficult to say for certain.

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CarMan@Edmunds

Thanks Terry. It sure has been busy around here lately.

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CarMan@Edmunds

Hey Damon. In order for me to give you an idea of what these cars' current lease programs are like, I need you to be a little more specific about the exact models that you want because their lease programs vary by trim level. I can tell you though that Volvo is not providing any cash incentives on leases of these models, other than the $1,250 loyalty cash that you mentioned, unless you are a New York resident.

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CarMan@Edmunds

You're not being a pest at all, prisch. Audi carried over its February lease program through Friday, March 4th. I have not seen its new program yet. I suspect that I will be able to take a look at it in a day or two. Please post a quick reminder in this discussion for me and I will be more than happy to give you an idea of what its new program is like then. Talk to you soon.

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CarMan@Edmunds

Hi mtlk. I would not necessarily say that leasing a vehicle for four years is a bad thing, as long as you are not missing out on any lease support by leasing for that long and as long as the vehicle that you are getting has a four year warranty. Keep in mind though that four years is a long time to be married to one vehicle. A lot can happen in the course of that time to cause you to need another vehicle. You could have a child, end up having a longer commute to work, etc...

It is difficult for me to say how much you should pay for this car without knowing where you live and what the market is like there. In parts of the country where there is a lot of competition for your business, like populated areas of the east and west coasts, Acura dealers seem to be providing decent discounts on this car. For more feedback on Acura TL pricing, make sure to stop by the following discussion: "Acura TL: Prices Paid & Buying Experience".

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CarMan@Edmunds

Hi deeb. I don't think that there is any specific time of the year that is best for leasing. The ideal time to lease a new vehicle will vary from model to model. I can tell you though that the very very end of the model year is usually not a good time to lease. By that point, vehicles' residual values have fallen to the point that they are fairly expensive to lease.

I would be more than happy to give you an idea of what the current lease programs are like on the vehicles that you are considering. However, in order for me to do so I need you to tell me 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

Hi hattrick77. I would be more than happy to give you an idea of what the current lease programs are like on the vehicles that you are considering. However, in order for me to do so I need you to tell me how long you want to lease them for and how many miles per year you need to be able to drive them. The $3,000 lease cash that you mentioned is available on both 2005 Saab 9-3 Arc and Aero models.

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CarMan@Edmunds

Here is the information that you are looking for, Financeman. If you were to lease a 2005 BMW X5 3.0 or 4.4 through BMW Financial Services right now for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00125 and 60%, respectively. BMW is not providing any sort of dealer cash on these trucks.

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CarMan@Edmunds

Here you go, sjeed. If you were to lease a 2006 Mercedes-Benz E350 (can you believe that 2006 models are already out ) through Mercedes-Benz Credit Corp. right now for 39 months with 12,000 miles per year, its base lease money factor and residual value should be .00240 and 62%, respectively. The residual value for an otherwise identical lease with 10,000 miles per, its residual value would be 1% higher.

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CarMan@Edmunds

Sjeed, I see that you are interested in the Lexus RX 330 as well. If you were to lease a 2005 Lexus RX330 4WD w/Nav through Lexus Financial Services right now for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00145 and 56%, respectively.

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CarMan@Edmunds

You're welcome, kmouradian. If you were to lease a 2005 Infiniti G35 Coupe through Infiniti Financial Services right now for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00215 and 60%, respectively.

Mazda is not currently providing any sort of lease support on the 2005 RX-8 and unfortunately, I have not seen its standard lease progam for this car recently. I can tell you though that Mazda is providing its dealers with up to $2,000 lease cash on this car to help provide consumers with attractive capitalized costs.

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CarMan@Edmunds

Welcome, meredith07. You never mentioned the selling prices or MSRPs of the cars that you are interested in leasing. These are important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing these cars' selling price in relation to their MSRPs you don't know how much of a discount you are getting on them. The second reason is that one needs the selling prices and MSRPs, including the destination charges, of vehicle to calculate their lease payments. I would be more than happy to work up a sample lease payment on the cars that you are interested in for you if you let me know what these numbers are.

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CarMan@Edmunds

OK, funky1020, let's calculate a sample lease payment on this truck vehicles for you and see what we come up with. According to my calculations, if you were to lease a 2005 BMW X3 3.0 with an MSRP of $38,470 and a selling price of $37,125 through BMW Financial Services right now for 3 years with 15,000 miles per, your zero down, pre-tax monthly payment should be around $461. As you can see, the lease payment that I calculated matches the one that you were quoted, but the lease that I worked up for you assumed no capitalized cost reduction. The only things that you would have to pay on the lease that I worked up for you are this truck's first month's payment, a security deposit of $500, and an acquisition fee of $625. You should be able to lease this X3 without making any cap cost reduction and with a more attractive selling price.

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CarMan@Edmunds

I sure so, jim53. If you were to lease a 2005 BMW 545i through BMW FS right now for 3 years with 10,000 miles per, its base lease money factor and residual value should be .00100 and 62%, respectively.

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CarMan@Edmunds

Hey coffee_fan. One of the problems with leasing vehicles through Toyota Financial Services is that it does not allow the residualization of all of the options that are on vehicles. As a result, its lease-end purchase prices and the depreciaiton portion of leases through it are often different than they would be through another bank.

According to the latest information that I have seen, if you were to lease a 2005 Toyota Highlander Limited 4WD through Toyota Financial Services right now for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00116 and 58% in most areas. The residual value for an otherwise identical lease of a non-Limited 4WD Highlander would be much higher, 65%.

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CarMan@Edmunds

Hi jimmythy. Acura's current lease program is scheduled to run through May 2nd. I noticed in an earlier post that you are interested in leasing an Acura TL. Acura is not currently providing any sort of lease support on this car, nor has it for quite some time. As a result, I doubt that its lease program will get any better if you want until the current program is over to lease one. If anything, this car will become more expensive to lease in May if its residual values drop as they naturally do as the model year progresses.

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CarMan@Edmunds

12.5% in taxes, yuck. GRRRRRRRRRRRR, don't get me started on a tirade about how ridiculously high taxes are . The good news is that the lease money factor and residual value that you were quoted for this car are right on the money. Let's work up a sample lease payment on this car for you and see what we come up with. According to my calculations, if you were to lease a 2006 Infiniti M35 Sedan (not the Sport or AWD models) with an MSRP and selling price of $47,660 through Infiniti Financial Services in March for 42 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $619. So as you can see, $588 per month looks pretty good.

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kyfdx

Thanks, Car_man..

Keep up the good work...

regards,
kyfdx

keeferb

Car_man,

Thanks a bunch for info. Your information is invaluable to us all. One question...I see the area Ford dealers are advertising a $1500 Ford Credit rebate in addition to the $2000 rebate. Do you know if that $1500 is applicable to leases also? Also, we have the Auto Show coming to Minneapolis next week and we'll usually see cars ads that have a $500 Auto Show bonus. Would that be available for leases as well?

Thanks again!

hattrick77

Oops, that's what I get for typing a message at work... here's the info:

Saab 9-3 Arc
36 months
12,000 miles

Don't worry about the Aero, I decided against it because of the lowered body and the fact that I live in the Northeast, don't want to have to deal with the low clearance and the snow.

Thanks!

cpeterson3

Hello Carman.
Could you please provide money factors and residuals for both the '05 Mercedes E320 and BMW 525i, 530i based upon whichever term program you feel is the best for each. (24 month, 36, 39 etc)

thanks!!!!!

santeewoody

Car_man,

Thanks for the great info. I am looking for the same car (2005 RX330 AWD with Nav) although I will be interested in a 15000 or a 17500 per year mileage allowance. what does that do to the mf and the residual? Is Lexus Financial the way to go or should I use another financial institution since I will need extra miles?
Thanks,

Jim

bama12

Car Man-

Thanks again for your help with this stuff. I have an 05 Cadillac STS on order, and it should be in by the end of Mar. You mentioned last month that GMAC had a lease rate of 4.75% and a residual of 56% on a 3 yr/15,000 mile per year lease rate as of Feb. Do you have the Mar lease rate and residual for 3 yrs/15,000 miles? I really appreciate your help.

pk303

Hi Carman,
I was wondering what the March residual and money factors are for an LX and EX, 15000 miles, if they are different. I was also wondering if you would advise to pay for the lease acquisition and doc fees upfront or to get it worked in.

Thanks in advance.

ddelise

Hi Car_man -

I think you missed it in my original post - I am looking for the numbers for the base model of each car. For the s40, I think it is the 2.4i, and for the v50 it is the 2.4i as well.

As a reminder, I am looking for the 36 month, 12k miles/year information.

Thanks Again - Damon

stew24

We live in Arkansas.

manaraki

Toyota Tacoma 4x4 4 Door, Double Cab, V6

MSRP 29,399
Selling Price 27,051
Cash Down 1500.00
Doc Fee 35.00
Residual 17051.42
Money Factor .00173
Term 39 months
Miles 12K
Govt Fees 211.50
Taxes 1342.86

They arre trying to tell me that my payment will be 357.02 per month (including tax)

By my calculations, it should be around 30.00 lower per month)

Please tell me what you come up with

kmouradian

Car_Man,

Thanks for the info. One other car that I am currently looking at. The 2005 Subaru Legacy GT ltd. Could you post MF and residuals on this car for 3 years, 15k miles. Any incentives on this particular model?

cosmos2

Dear Carman,
Thank you for getting back to me and yes the price did include tax.
If I could ask you to work this one which is the exact car I would like to lease. I will contact dealer tommorow if you think the numbers sound good. 2005 745li MSRP 82,120 selling price 77,510
residual value 49,272 (60 %) ,36 month lease with 12k per year. I would need to come up with first month pmt , refundable security of 750 and bank fee of 900 and ny tax of 8.75 % on that which is 78.75. the lease pmt with taxes icluded was 1022.98 per month. Should I pull the trigger. The pmt I come up with on those numbers is 1015.88. Is it ok to move fwd ?
Thanking you in advance
Cosmos2

coffee_fan

Hi, I think you forgot the acquisition fee. Anyway with your numbers I got $335.14 monthly payment.

Toyota Tacoma 4x4
Parameters
MSRP $29,939.00
Destination charge
Money factor 0.001730
Interest rate 4.15%
Depreciation % 56.95%
Residual value $17,051.42
Lease payments 39

Gross Capitalized Cost
Agree upon value of vehicle $27,051.00
Outstanding prior credit or Lease balance
Service contract
Acquisition fee
Sales tax $1,342.86
Initial license, title and registration fees $246.50

Sub-Total GCC $28,640.36

Capitalized cost reduction
Net trade-in allowance $0.00
Rebates and non-cash credits
Downpayment $1,500.00

Sub-total CCR $1,500.00


Monthly payment
Gross capitalized cost $28,640.36
( - ) Capitalized cost reduction ($1,500.00)
( = ) Adjusted capitalized cost $27,140.36
( - ) Residual value ($17,051.42)
( = ) Depreciation and any amortized amounts $10,088.94
( + ) Rent charge $2,981.62
( = ) Total of base monthly payments $13,070.56
( / ) Lease payments 39
( = ) Base monthly payment $335.14
( + ) Monthly Sales / use tax
( + ) Monthly miscellaneous
( = ) Total monthly payment $335.14

skimo

Hello All, great forum!! I have been reading through many forums. However I heard several different numbers on the MF and Residual for the BMWs 325i 325ci 330i 330ci for March. Could someone please restate them? (for 12k/3 year)

Thanks

krishno22

My lease on my 2001 Honda Civic Coupe EX is coming to a close in May. I already had it inspected and the extra damage charges were $435 (a dent and a scratch). I am way under miles, I have 40k and I was allowed 60k (since it was my first lease I paid for 15k miles per month rather than the traditional 12k miles per month). I received in the mail my preliminary end-of-lease notice for excess wear. It says that I owe $0 for mileage and wear. So now I'm a little confused to whether I am turning in the vehicle with a $435 bill that was presented to me after inspection or the $0 bill that I recieved from Honda Financial Services.

I am interested in upgrading to a 4 door Civic LX Automatic. The current lease offer for that is: 36 month and 12K miles per year with $475.89 drive off at $251.65 per month.

Is the lease offer standard or do you think I could talk them down? Am I going to have to pay the $435 or is Honda Finance overlooking that charge?

Thanks in advance.

manaraki

Coffee_fan thank you so much for your input.

Just your opinion of course, but do you think a payment of 357.00 is too much. I know it all depends on how bad I want the truck, but money wise is that alot over the life of the lease?

kyfdx

Most Honda leases excuse up to $1500 of wear and tear.. Perhaps the inspector came up withthe $435 amount, but since that is within the $1500 amount, your cost is $ZERO.

Was a bill presented to you by the inspector, or just a report?

kyfdx

Are you sure it is a 39 month lease? Because I got that exact figure for 36 months....

manaraki

Hi Kyfdx,

Yes, they said for 36 months originally, then the salesperson took it to his boss, then he emailed me and said he made a mistake and it was supposed to be 39 months. I think the boss realized that I was getting a good deal, and wanted more so he changed it to 39 months so they can get more money for the truck.

I just don't think going in there and telling them they are wrong is going to change things.

What are your thought? I love the truck, but I don't want to get stiffed either.

krishno22

She presented me with a report that I am suppose to keep in the car when I return it. The letter came in the mail afterwards (she told me I would be receiving one) that said that my total charges were $0. What you said about the $1500 makes sense (I'm crossing my fingers that you're right).

If the lease is up in May, what is the possibility of me going in later this month to a dealership and moving on to a new lease without any extra fees? I've heard of dealerships doing this to keep customers. I'll probably stop in later this week to see what they have to offer.

Any advice before I go in?

CarMan@Edmunds

No problem, kyfdx. As always, thanks for the help .

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CarMan@Edmunds

You're welcome, keeferb. Good catch. Ford is also offering dealers $1,000 to $1,500 bonus cash, the exact amount varies depending upon the part of the country you are in, on vehicles that are leased or financed through Ford Credit this month. So, there would be a total of $3,500 in cash incentives that can be used to help you negotiate an attractive capitalized cost on this truck. If Ford provides $500 bonus cash on its vehicles in conjunction with your local auto show, as the domestic automakers usually do, this cash will probably be compatible with these offers as well.

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CarMan@Edmunds

Don't worry about it, hattrick77. Community members forget to provide that sort of detail all the time. Good call on going with the Arc over the Aero. The Aero is a little faster, but much much worse in the snow unless you change its tires. I believe that Saab basically carried over its February incentives program through March 10th. If you were to lease a 2005 Saab 9-3 Arc Sedan through Saab Financial Services Corp. this month for 3 years, its base lease money factor should be .00049. In your post you mentioned that you live in the northeastern U.S. In that part of the country, Saab is providing an additional $1,000 bonus on leases of 9-3 Sedans. When this cash is combined with the lease cash it results in $3,500 that you can use to negotiate an attractive capitalized cost.

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CarMan@Edmunds

Here is the information that you are looking for, cpeterson3. If you were to lease a 2005 Mercedes-Benz E320 Sedan through Mercedes-Benz Credit Corp. right now for 39 months with 12,000 miles per year, its base lease money factor and residual value should be .00310 and 57%, respectively. When negotiating your lease on this car, keep in mind that Mercedes is providing $2,000 dealer cash on it that will help you to negotiate an attractive capitalized cost.

If you were to lease either a 2005 BMW 525i or 530i through BMW Financial Services right now for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00125 and 62%, respectively.

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CarMan@Edmunds

You're welcome, Jim. Lexus Financial Services leases with 15,000 miles per year have residual values that are 2% lower than its 12,000 miles per year residual values. If you need to be allowed to drive your leased vehicle more than 15,000 miles per year, you will have to purchase additional miles on a per-mile basis. It is less expensive to do to at lease signing than it is to wait until lease-end and have to pay an excess mileage penalty. Given the support that Lexus is providing on this truck right now, I doubt that you will be able to lease it through an independent bank for less than you could through LFS.

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CarMan@Edmunds

No problem, bama12. General Motors' lease program on this car is exactly the same in March as it was last month.

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CarMan@Edmunds

I sure do, pk303. If you were to lease a 2005 Honda Accord LX V6 Sedan through American Honda Finance Corp. this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00038 and 49%, respectively. The numbers for an otherwise identical lease of an Accord EX without navigation should be .00113 and 52%.

As far as the fees that you mentioned go, I personally usually pay the acquisition fee at lease signing. By doing so, I avoid paying interest on it. There certainly is not anything wrong with rolling it into your car's capitalized cost though. By doing so, you lessen the risk of losing this fee if your vehicle is totaled in an accident. Doc fees are nothing more than dealer profit. If you have to pay one, roll it into your car's capitalized cost, just as if it was part of its price.

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CarMan@Edmunds

Thanks for the additional information, Damon. If you were to lease a 2005 Volvo S40 2.4i through Volvo Finance this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00175 and 54%, respectively. If you live in the state of New York or if you only get this car with a manual transmission, its lease program would be different.

If you were to lease a 2005 Volvo V50 2.4i through Volvo Finance right now for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00175 and 56%. Again, if you live in the state of New York or if you only get this car with a manual transmission, its lease program would be different.

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CarMan@Edmunds

Manaraki, using the numbers that you provided in your post, a money factor of .00173, a residual value of 58%, an MSRP of $29,399, and a selling price of $27,051 I come up with a 39 month, $1,500 down, pre-tax monthly payment of around $292 for this truck.

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konzept

I turned in a lease last december and just received a bill from the financing company for $2000 for something that should have already been repaired on the car. I got into an accident 4 years ago when I first purchased the car, took it to a well known mechanic in town and got the car fixed, insurance covered it. Now, after I turn the car in, the financing company is telling me that the paint job done on the car is bad and the core frame had a bad repair job, and I have to pay for it!

I'm not sure what steps to take on this, if I can, or if I have just been screwed. Can I somehow make the mechanic responsible for the repairs or have the insurance company repay for the repairs?

kyfdx

Yeah.. I think they are now trying to jerk you around..

Just tell them you won't do the deal, unless you get the same deal for 36 months..

Don't fall in love with an inanimate object.. It works just like falling in love with people.. it will cost you a lot of money.. ;-)

regards,
kyfdx

deeb

My current lease (Honda Accord) is up April 15. Should I start a new lease in March or wait till April? I could also extend the lease of my current vehicle if there were a better time of year to deal.
I am in the Albany, New York area and I am looking at 3 year/ 36,000 miles leases.
I am interested in Honda Accord (probably LX), Toyota
Civic (probably base or LX), or Hyundai Sonata (GLS).
How can I find out the money factor and residuals for these?