Lease Questions - Ask Here

gi2indking

Thanks so much.. I received a quote from a local dealer today.

MSRP 35,053

$458.17 a month (tax included) and $1835 due at signing (1st month, bank fee and ref sec deposit). This lease is for 39 months and 12k miles per year.

The 1835 at signing sounds a little high. What do you think Car_man. Thanks again!

kman8

Car Man: Can you tell me current lease figures on an M45 Sport with Journey and Technology (Msrp about 56,000), 12K miles per year, 36, 39 and 42 month programs, just planning on normal drive off costs. Also, what does the lease look like without the Tech option (msrp 52,000). Thanks a lot.

lycanthris

This was hopefully the last bit of info i needed. Thanks again for all of your wonderful help.

box2sell

Thanks for the info Car Man.
Is it true that Infiniti dealers are not negotiating on 2006 M35x's. I heard inventories are tight; that cars with particular option/color combos will have to be ordered w/ 2-3 month lead times. That they're selling at or close to MSRP? What have you heard?
George

vacquah

Car_Man!

Help. I am about to pull the trigger on an fully loaded 05 Pacifica. MSRP= $40,130, Lease deal price = $37,073(before dealer incentive), Dealer incentives = $3000. Downpayment = $2500. Money FACTOR = 0.00145. Residual Value = 47%. 15K Mileage for 36Months. I am getting a quote of just over $490. Is this a good deal? i need to know asap before a make a mistake! Thanks

V

lmacmil

I'm in Indiana and got a lease quote from a Chicago area dealer and he didn't say anything about that. He quoted me with the 6% Indiana tax.

lmacmil

Is this a manufacturer incentive to the dealer or is it below market money factor or something else?

c_los

I have 2 offers on the table for a Volvo S40 2.4i. Two minor differences between the cars, one comes with the sports package and the other comes with the audio package. Both cars come w/ premium and climate packages. Choice one with the sports package but w/out audio is for 36 mo., $3370 acquisition fee and monthly payment is $362. The MSRP is $29,365, selling price of 27,944 and residual of 52%. Choice 2 without sports package but with audio package is for 48 mo, $2400 acquisition fee and $399 monthly payment. The sales price is $28,019. I'm not sure what the MSRP for car #2 but it should not be materially different to car #1 considering that the audio and sports packages cost essentially the same amount ($850). However, I do not know the residual value of the second car. Please help. Any thoughts on which is the better deal?

CarMan@Edmunds

Hello cpeterson3. BMW is providing dealer cash on several 2005 3-Series models. Specifically, it has $1,500 dealer cash on the 2005 325xi, $2,500 dealer cash on the 325i, $4,000 on the 330xi, and $4,200 on the BMW 330i. This dealer cash may be used in conjunction with BMW Financial Services' lease program. BMW is not currently providing any cash incentives on the 5-Series that you just ordered though. All of these offers are only scheduled to run through March 31st.

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CarMan@Edmunds

It's no bother at all, Gregg. If you were to lease a 2005 Honda Accord Sedan LX 4-cylinder through American Honda Finance Corp. right now for 36 months with 12,000 miles per, its base lease money factor and residual value should be .00038 and 53%, respectively. Honda is not providing support on 39 month leases of this car so you definitely do not want to lease one for that long. The numbers for an otherwise identical lease of a 2005 Accord EX Sedan should be .00113 and 54%. The numbers for an otherwise identical lease of a 2005 Accord LX V6 Sedan should be .00038 and 51%.

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CarMan@Edmunds

No problem, hpowders. I am glad that I was able to help you out.

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willjohnson33

I am talking with an Infiniti dealer right no about getting a G35 since my QX4 lease is up in a few months. He says that the negotiated price he is giving me includes the 860 that I will be paying over the next two months. He says that there is no way around this and that I have to pay that 860. I was under the impression that companies will often waive your last couple of months if you are getting into a new car. Is he just full of it or is it true?

Thanks

cscowden23

Just wanted to see what everyone thought of this lease offer I have on the table. Is this a good deal?

2005 G35 Sedan 6MT with following options:
Premium Package, Nav, Aero package w/o spoiler, trunk mat

39 month lease, $456/mo. First payment due at time of acquisition.

$35042 sale price. Acquisition and TT&L rolled into deal, total cap cost of $35,752, Residual value of $22,188, rent charge of $4205, total monthly payments of $17,769. = $456/mo

The dealer did offer a maintenace plan for $625 that included all scheduled maintenance and tire warranty for duration of lease. Anyone have experience with these? Is it worth it?

The lease is through Nissan-Infiniti and includes Gap insurance. Dealer is offering tax credit, so no sales tax in the deal?

Anything I am missing? Good deal or not? Room to negotiate?

Thanks for your help,
Chris

dwynne

I have heard that Infiniti finance will let you out of lease early (with just a $100 or so fee) if

1) The old car is leased with Infiniti finance
2) You are getting a new lease with Infiniti finance
3) The market value of the old car is above the residual value + unpaid depreciation

If 1 and 2 are true in you case, then maybe 3 is not?

Dennis

dwynne

The dealer cost on that config would be $34,236 so there may be a little more room to talk them down in price - just a little.

The numbers I saw for the G35 sedan were for 36 months: 61% is 12k a year and 60% if 15k with a mf of 0.00179 for either. Assuming your lease is the 15k per year one, then I get about the same payment when I calculate it.

Dennis

pa32tl1

Carman,
What are the current money factors and residuals for 36, 39 month leases on a Volvo XC90 V8, and Volkwagen Touareg V8 in NJ? Thanks.

hsbndhatesbmw

I am looking to Lease a 2005 3.0 x3 and do not understand a few things:

1) the money factor
2) how some dealers require more money to drive off

any suggestions on where to go to better understand the money factor and how to not get screwed when I lease?

brickyarddog

1) If you buy a car with a standard loan from a bank, you pay interest. If you lease the car, the money factor is essentially the interest on your lease. Multiply it by 2400 to get the interest rate. If you use the manufacturer's financing, the money factor should be the same regardless of which dealership you visit.

2) The money you pay at signing can vary greatly depending on what you're paying for. Make sure you get a breakdown of what costs are included in this "drive-off" price, and make sure you understand what each line item is. Many will require the first payment and a security deposit, but some dealerships will charge a lot more (for things like doc fees) than other dealerships.

jon330cic

Hey Car_Man - Now that BMW has formally released the pricing on e90, have you seen initial lease rates yet (residual, MF)? 330i/36mo/36Kmi. I've scanned the boards, but haven't found anything on this.
Thanks!
Jon

CarMan@Edmunds

You're welcome, dguptaofnj. The auto show was great. I always love going. I did have a chance to see and sit in the new 2006 Mercedes-Benz M-Class. While looks are somewhat subjective, I think that its exterior styling is a ton better than the 2005 version. I think that it will do very well. Perhaps not as well sales-wise as this truck has done in the past though because there is so much more competition in the luxury SUV segment today than there was when the M-Class was first introduced. I would definitely consider this truck if I was in the market, but keep in mind that initially there probably will not be any support on it. As a result, it will likely be more expensive to lease right now than any of the other trucks that you mentioned.

Thanks for asking. I can calculate sample lease payments for the Highlander and 4Runner that you are interested in using the method that most banks do, allowing the residualization of all options. However, the actual monthly payments for these trucks may end up being a little higher because Toyota Financial Services places limits on the which options can be and caps the amount. According to my calculations, if you were to lease a 2005 Toyota Highlander Limited V6 AWD with an MSRP of $35,355 and a selling price of $32,250 through Toyota Financial Services right now for 3 years with 12,000 miles per, its zero down, pre-tax monthly payment should be around $388. The payment for an otherwise identical lease of a 2005 Toyota 4Runner V6 4WD Sport with an MSRP of $33,670 and a selling price of $31,350 should be around $342.

American Honda Finance Corp. calculates lease payments normally, so this estimate should be much more accurate. According to my calculations, if you were to lease a 2005 Acura MDX non-Touring without navigation or the rear entertainment system with an MSRP of $37,420 and a selling price of $34,115 through AHFC right now for 3 years with 12,000 miles per, its zero down, pre-tax monthly payment should be around $397. With a $999 capitalized cost reduction, which is not in your best interest to make, this payment would drop to around $367. As you can tell, the payment that you were quoted by this dealer is right on the money.

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CarMan@Edmunds

You're very welcome, andyhiggs. You're not being a pain at all. If you were to lease a 2005 Mazda 3s Sedan through its captive finance company prior to the end of the month for a 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00055 and 51%, respectively. The numbers for an otherwise identical 24 month lease should be .00080 and 61%.

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CarMan@Edmunds

Hey Ernest. The G35 is definitely a nice car. I especially like the way the Coupe looks. Let's work up a few sample lease payments for you and see what we come up with. According to my calculations, if you were to lease a 2005 Honda Accord EX-L V6 Sedan without navigation with an MSRP of $27,635 and a selling price of $23,673 through American Honda Finance Corp. right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $287. I used a money factor of .00113 and a residual value of 54% to arrive at this payment. When negotiating your lease on this car, make sure to keep in mind that Honda is running a dealer stairstep program on it that gives bonuses if dealers hit certain sales targets. The maximum payment through this program is $600, but most dealers will probably qualify for around $400. While you are not automatically entitled to this money, knowing about it will definitely help your bargaining position.

If you were to lease a 2005 Infiniti G35 Base Sedan with an MSRP of $31,460 and a selling price of $28,989 through Infiniti Financial Services for 39 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $353. I used a money factor of .00179 and a residual value of 59% to arrive at this payment. The lease program for the other 2WD G35 Sedan that you mentioned would be exactly the same, but since its price is different (MSRP: $34,960 / Selling Price: $32,005) its payment would be around $386.

Last but not least, if you were to lease a 2005 Infiniti G35x Sedan with an MSRP of $36,760 and a selling price of $33,656 through Infiniti Financial Services for 39 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $420. I used a money factor of .00172 and a residual value of 57% to arrive at this payment.

All of these leases assume that you are paying a lease acquisition fee, $550 for IFS and $595 for AHFC in your area, and a security deposit. Both of these items can be waived in exchange for an increase in the money factor that is used to calculate your lease payment. You also can get out of paying the acquisition fee at lease signing by adding it into your car's capitalized cost.

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CarMan@Edmunds

Here is the information that you are looking for, evan7578. If you were to lease a 2005 Audi A4 1.8T convertible through Audi Financial Services right now for 24 months with 15,000 miles per year, its base lease money factor and residual value should be .00175 and 70%, respectively. The numbers for an otherwise identical 36 month lease of this car should be .00175 and 58%. If you were to lease it with only 12,000 miles per year, its residual values would be 2% higher. Audi Financial Services' lease acquisition fee is $575 in your area.

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CarMan@Edmunds

Hello rllndwnrdeo. Volvo is not currently providing any sort of support on 27 month leases through its captive finance company, as a result your payment would be much much lower if you leased this car using its special 36 month program. According to my calculations, if you were to lease a 2005 Volvo S40 T5 FWD with an MSRP of $31,855 and a selling price of $28,088 through Volvo Finance right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $395.

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CarMan@Edmunds

I would be happy to help you out, jmarzano. I can tell you what these cars' current lease programs are like, but I cannot calculate sample lease payments on them for you without you providing me with the exact MSRPs and selling prices of the models that you want. If you were to lease a 2005 Infiniti G35 Coupe through Infiniti Financial Services right now for 39 months with 15,000 miles per year, its base lease money factor and residual value should be .00215 and 59%, respectively. The numbers for an otherwise identical lease of a 2005 Acura TL without navigation through American Honda Finance Corp. should be .00220 and 54%. As you can see, the G35 Coupe's lease program is currently a little better than the Acura TL's program.

As far as these banks' lease acquisition fees go, in your area AHFC's base fee is $595 and IFS' base fee is $550.

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CarMan@Edmunds

Coffee_fan, sorry about that, this dealer was correct. Saab is only currently providing $3,000 lease cash on the 2005 9-5 Arc Wagon. I was including the $1,000 "March Madness" bonus on your deal, but apparently this incentive is only available on 9-5 Sedans and not on Wagons. Sorry for the confusion. It definitely sounds like this is a straightforward dealer to me. You are being very smart by not rushing into anything though. Good luck and let me know if you have any other questions.

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dguptaofnj

Thanks a million, Car-Man. I got my answers for now.
Please do keep up the good work, it is a jungle out there.
Regards.

stalnaker

Car_Man:

Thanks for the reply! The information is very helpful. Did you see my later message where I added $500 to the price of each of the Infiniti models? A dealer in Indiana (my home state) will sell me these cars for $500 over invoice. A dealer in Illinois said they would sell them to me at invoice. But until I determine if this question about Indiana residents having to pay Illinois sales tax is true or not, I am afraid to do business with an out-of-state dealer. So if you could give me the revised numbers I would appreciate it

Also (I know I'm asking for a lot), what would the money factor and payments be if I waived the security deposit? Do you recommend doing this?

What about the acquisition fee? Should I add that to the capitalized cost? If you recommend not paying these things upfront, then give me the payments with those things included.

Is the acquisition fee taxable?

Thanks again!

Ernest

cscowden23

Dennis, thanks for the help. I really appreciate it.

rllndwnrdeo

Cool. Thanks for you help, Car_man.

jbtwo

Curious if anyone has actually leased a M35 and what were the terms of the lease including payment and such.

Thanks

oran

Dear Car_man.
Is there any way to know or guess, if, what kind, and when a car company will be having lease deals in the next six months or so? For example, our current lease will done this coming October 05, so knowing that a good lease deal will be coming up around then would be nice. We don't expect a perfectly synchronous set of events, but it would save us some worry to know something.

Thanks for your help!

Oran

lmacmil

On 3/23, (#18197) you said the residual on the TL for a 3 yr/15k lease was 58%. Today, (#18272) you quoted the residual at 54%. Which number is correct or did they just lower the residual 4% in 2 days?

dlee3

Car_man, thank you so much for the info. The MSRP for Lexus ES 330 package 4 with navigation and spoiler was $38879. I negotiated a $3000 off this price, so my price is $35,879. Can you please provide lease payments based on this number for 4 years 12k miles per year through LFS? I'll be putting approx $1000 down up front for 1st months payment, fees, & security deposit. Thanks again!

pdang

Car Man,

I am interested in trading in my 2000 A4 2.8 Quattro wagon with 96,200 miles. I am estimating a trade-in value of $12,063 and my pay-off is $9,600. I would like to apply the $2,463 as my down on the lease of a 2005 A4 1.8T wagon. I am estimating a purchase price of $37,780. My credit is good. My questions are:

1. Do you know of any current lease deals?
2. What residual should I be looking for?
3. What money factor?

Please provide me with a sample payment for a 36 month 12,000 mile lease.

Thanks

joeb38

Car Man, I am lookinig for the Money factor and residuals for the Audi A-6 3.2 with a MSRP of 41,900 and a Cap Cost of 41,206. 39 months, 12k miles per year.

Thanks

vacquah

Car_Man!

I am reposting an earlier message. Sorry to do this to you but i am on the verge of leasing ( tomorrow morning) and need a reply asap! Thanks in advance! ....

Help. I am about to pull the trigger on an fully loaded 05 Pacifica. MSRP= $40,130, Lease deal price = $37,073(before dealer incentive), Dealer incentives = $3000. Downpayment = $2500. Money FACTOR = 0.00145. Residual Value = 47%. 15K Mileage for 36Months. I am getting a quote of just over $490. Is this a good deal? i need to know asap before a make a mistake! Thanks

CarMan@Edmunds

Well, it's too late for me to assume a different selling price because I already calculated the sample lease payments that you are interested in, Ernest, but I would be happy to run a few other scenarios for you. Using the new selling prices that you posted, the monthly payments for otherwise identical leases for the cars that you are interested in should be as follows: $367 for the 2005 Infiniti G35 Base Sedan, $400 for the 2005 G35 Sedan w/Premium Package C, $420 and for the 2005 G35x Sedan w/Premium Package.

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CarMan@Edmunds

Hi elag1. Unfortunately what you heard is correct, American Honda FInance Corp.'s base lease acquisition fee is $1,095 in New York instead of the $595 that is is in all other states. AHFC increased its acquisition fee in your state because of the additional liability that it is exposed to from the vicarious liability laws that exist there.

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CarMan@Edmunds

You're welcome, gi2indking. You never mentioned the selling price of the car that you are interested in leasing. This is an 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 the price of the car that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to work up a sample lease payment on the car that you are interested in for you if you let me know what its selling price is.

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CarMan@Edmunds

Greetings kman8. I can give you an idea of what this car's current lease program is like. However, in order for me to calculate sample lease payments on it for you I need you to provide me with the full MSRP and selling price of the exact car that you want. If you were to lease a 2006 Infiniti M45 Sport through Infiniti Financial Services right now for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00175 and 61%, respectively. The numbers for an otherwise identical 39 month lease should be .00177 and 60%. The numbers for an otherwise identical 42 month lease should be .00177 and 58%.

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CarMan@Edmunds

No problem, lycanthris. I am glad that I was able to help you out.

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CarMan@Edmunds

You're very welcome, George. I am not personally all that familiar with what the market is like for the '06 Infiniti M35 AWD right now. Perhaps someone in the following discussion can give you some informaiton on this subject: "Infiniti M35/M45 2006+".

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CarMan@Edmunds

Hi vacquah. In order for me to give you my opinion on this deal, I need you to tell me the exact trim level of the Pacifica that you are interested in, i.e. a 2005 Chrysler Pacifica Touring AWD with the 26U package, a 2005 Chrysler Pacifica Limited AWD, etc.

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rgustafs

3yr/36K Lease

Residual %?
Money Factor?

I am getting decent prices now (30,371 is the best but still waiting for a few more offers to shake out). I just want to do do some of the math so I can decide how different these numbers look than the MDX numbers.

Thanks!

R

ddelise

Hi Car_Man -

I am looking for the 36 month, 12k miles/yr. residual value, interest rate, acquisition fee and lease money incentives for both the Malibu Maxx LT (with and without DVD if it matters) and LS.

Also, I understand the additional $1000 March Madness Bonus Cash on older inventory items can be applied to a lease - can you confirm?

I am located in FL.

Thanks - Damon

vacquah

Hi CAr Man

I am looking at the Touring AWD with 26U package, dvd/Nav, moonroof, high density headlights, parksense, surround sound system, full spare tire, 6 cd changer, 17 chrome wheels.. and a few other minor options. thanks. and by the way i am in Virginia

snaj

After lurking on your Passat forums for months, I saved thousands on the purchase.
Now I need some help with my first car Lease, please. 2005 Saab 9-3 Arc CONV with NAV & AUTO. In Florida. MSRP 44,465, Sale price 41,500.
36 mos lease/ 15k miles/ as close to zero down as possible (or rolled into the payments)
I need the base lease money factor and residual % value info for this car. Also, your suggestions for how to best put the info on MF/RV to work for me in negotiating the lease details, would be appreciated.
Thanks

dwynne

36 mo/15k mi: 54% 0.00091

The price looks good (invoice on that car is around $42,400).

You have negotiated a good price on the car, just tell the dealer you want to lease it - and at the buy rate. You your own lease calculator to be sure the dealer does not jack up the money factor or stick anything else into the deal.

Dennis

lycanthris

Just closed a deal to lease a 2005 330i with auto/premium/sport/xenon and metallic paint. MSRP was 42,245 and I negotiated a deal for 36,125. 36mo/45k lease came out to 567/mo with only minimal due at signing. Thanks so much for all your help. It made the deal go very smooth.