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If I know what I am willing to pay for the car, the residuals and money factors I can calculate my monthly payment. As long as I stick to that payment or lower, I have made a good deal. Of course I would not increase lease terms, down payment to get to the number. I never pay doc fees. I negotiate my bottom line price and tell the salesman/manager up front no additional fees. I purchase a new car each year. In thirty years of purchasing cars I have only had to walk from one deal when the dealer was playing games. I think one of the key points in negotiation with a dealer is to be prepared to walk, regardless of how much you love the car!
I think you have to realistic - dealers don't lose money and stay in business.
You find the dealer cost of the car including incentives and hold back and work up from there always including any dealer fees. Then after that is settled, worry about the money factor and residual. You already will know these and as long as they don't jack them up you are done.
Saying "I will only pay $200 a month for this car" is the way to get into a 48 month or 60 month LEASE or a baloon note finance deal.
You can also avoid wasting you time and the dealer's time. If you want to get an impossible deal - say a new RX-8 for $200 down for 36 months with $0 out of pocket. It just is not going to happen so you can avoid making yourself and the dealer mad by even trying for it.
I hate it when people say "just offer them $22k and see if they will take it". If you know the true dealer cost minus everything is $25k then I don't see the point.
Knowing the true dealer cost and the buy rate insures you get the best possible deal, no matter what the payment works out to be.
Dennis
I'm thinking of getting an 05 4runner SR% with an MSRP of $32,700. Can you tell me the residual Value and money factor for a 3yr 12k/ yr lease.
Are there any incentives and what should I expect to pay. thanks!!
I did a search and on 3/31 he said:
According to the latest information that I have seen, if you were to lease a 2005 Toyota 4Runner SR5 2WD through Toyota Financial Services in its Los Angeles region prior to the end of the month for 36 months with 15,000 miles per year, its base lease money factor and residual value should be .00131 and 60%, respectively. Its residual value for a lease with only 12,000 miles per year would be 2% higher. Individual dealers do not have the authority to pad deals by altering vehicles' published residual values
Look can look up incentives here:
http://www.edmunds.com/incentives/step1.jsp
Note that they vary by region ZIP code - as do the leases. The numbers car_man posted may not be any good in your region - he will have to answer that.
As far as what you should pay, use the Edmund's TMV from here with the options you want and www.carsdirect.com with your ZIP code for an idea. With my ZIP a SR5 that stickers for about $32,700 would invoice for $29,700 and the no-haggle price is $28,200 (there is a $1,000 rebate plus they are selling under cost).
Keep in mind, if Toyota's captive lease deals are not good, your dealer could and should get you a 3rd party lease deal. If they will not, you can get your own from www.leasecompare.com or other online lease dealers - and check your local yellow pages for lease agents.
Dennis
the $54k includes the tax. i live in calgary, canada .
i looked into this myself because i was wondering if that 3.3%lease rate is actually a 3.3% compared to a finance 3.3%. in other words, would i have been better off going to ,say, a 4.5% finance rate? also, i realize now that i like to be free of contracts and do as i wish with this car.
i punched all these numbers into the edmunds' calculations and even now it tells me to buy out the car because i would save quite a bit. this really surprised me and was wondering too if that calculation was a mistake?
btw, monthly lease payments are roughly $850 for my BMW 330CI.
as for warranty, once my 4 years warranty is up i was planning on extending the warranty for a further 2 years if the car becomes problematic. you're saying they can certify the car after the lease is up and and i just buy it back again? this seems to be more trouble and not to mention they would jack up the price to resell it as these cars are worth more than their residuals....about $5K more!
At the end of the lease it would be $34,890 + tax = $37,332.30. That would be $1,110.52/mo for 36 months at 4.5% = $39,978.68.
That is a difference of $20,424.70 . If we devide that by 24 remaining lease payments we get $851.01. If you lease payment now is about $850 than it is a wash.
Except of course, you go from paying $850 a month to $1,006.72 per month.
You didn't say who the lease was with or what the car/truck is - but it might be possible to do the CPO deal and lease end (if you want to keep the car) and also negotiate the buy out price at lease end.
The only other thing to worry about is current market value. How is $54k in relation to current market value (what you could trade or sell it for right now)? Since you will be financing a used car for 5 more years then it is very likely you will be upside down in the loan (owe more than it is worth) for quite some time. Then if you decide to sell or trade it you will have to pay out money to get out of it.
Since the money is just a wash, I would keep on the lease - if you want put the extra $156 in your savings account every month. By the end of the lease you will have $3,744 in the bank to use as a downpayment on the loan to buy out the car and the payments will be that much less (and you will save more money than buying it now).
Dennis
Using the financial tool on BMWUSA website, they seem to encourage $2500 down payment. Does this include tax, title, cap reduction, etc? Or, does one have to pay the tax seperately. This is in Texas, where we have a 6.25% sales tax on all automobiles. Using their promo, a $36,900 msrp results in a $369/mo. payment for 36 mos. and 10k miles per year. That sounds awful good if only 2500 is required at signing, does it not? Also, if you have a trade (2001 325ci, 49.5k mi. & really nice condition) valued between 16k and 18k how would that be handled. The dealer told me they would issue me a check for my car and that the trade could be used to offset the sales tax. That does not sound legit to me. And when you sign a 36 mo. lease you pay sales tax on the entire sales price, not just the 39% that you are using, in the event you walk away at the end of the term. Can anyone shed light on this for me? I plan to see them next week and would like to be able to close a deal on a 3.0 and feel comfortable with the end result. Thanks in advance.
actually, i can sell the car now for what is owing on it, it seems. out here these cars hold their value due to supply and demand. these cars are selling for about $5K more then the residual after the lease is up.
so you say keep the lease then. the leasing company is with bmw financial.
here's a twist: i can also use that $850 security deposit towards the buyout now plus add an additional $5-10k down on the finance. or, should i just apply that $5-10K towards another loan i have at 3.85% and just keep the 3.3% lease?
I guess it all depends on if you want to keep the car or not. If you like it and want to keep it long term, I would finish the lease, work a deal with your dealer to turn it in, get it CPO'd, and buy it back with the CPO warranty and balance of the warranty. You could actually do that NOW - have the dealer buy it off of lease, CPO it, and sell it back to you.
I am told BMWFS has quit negotiating with lessee for buy out prices. But at lease end your dealer will know what they will take for the car. When you turn it in BMWFS will offer it to the dealer for a price - if they don't take it then they auction it. Your dealer will know about what this offer is - normally a good bit lower than your buyout. They take the offer, CPO the car, mark it up a little, and sell it back to you. If with the CPO and dealer mark up it may not be much more than your buyout price at lease end.
If you think you will want something else - you might just stay in the lease anyway and save your extra money. At lease in you get back the $850 plus you have that money you said on the payments each month to use how you see fit.
Dennis
The April lease numbers for the X3 3.0i are 0.00100 and 62% for a 36 month, 30k mile lease.
The base 3.0i with manual is $36,995 MSRP with destination. Let's say you bargain them down to $36,000. The residual is 62% of $36,995 or $22,936.90. If we plug those numbers into a lease calc we get $368.76 per month. But this means you pay the taxes, acq fee, security deposit, etc up front.
On your trade: here on a trade in the amount they allow you for it reduces the taxable amount of the new car. So tax on $36,000 would be $2,250 . If it works the same way in TX, then if they give you $17k trade then you only pay tax on the difference (($36,000 - 17,000) * 0.0625) = $1,187.50 . So that is like you selling your 325i for $18,062.50.
If you roll the $1,187.50 tax into the lease, then your cap cost goes up to $37,187.50 and you payment would be $401.86 per month. You could pay acq fee, title, and tags up front along with security deposit.
You bargain them down on price, bargain them up on your trade, then make sure they give you the "buy rate" on the lease. Nothing to it
Dennis
If this is the case, then compare the numbers vs a 3rd party lease from your dealer or another source like leasecompare.com . It could be that with the dealer cash you get a better deal with a different lease. With a 3rd party lease the dealer just gets "cash" so it does not interfere with dealer incentives from Volvo.
As far as I know, options can be added to the lease without a change in terms or residual percentage - the residual amount will go up as the MSRP goes up with the options. The example leases can show a discounted price, but if you can negotiate a lower price then you just save money.
Dennis
Can you work me out a lease payment for a 2005 Infiniti G35 6MT Coupe with a negotiated selling price of 32,500 for 39 months with 12k miles a year. I would like to pay zero down. What will be due at signing? Thanks so much!
I am interested in leasing a new Subaru Forester XT turbo w/premium package, Popular equipment group 7 and premium sound package. I live in Chicago and am trying to keep the monthly rate low so am willing to lease for 3-4 years @ 12-15,000miles/year with little/no cash down.
With Chicago taxes, etc. what can I expect (approximately) the monthly leasing fee to be?
Thanks very much--alicat17
WIth respect to the G35x AWD - I assume for a 42 month lease, I would be looking at a buy rate MF of 0.00172 as well... and a residual of 55%?
ty
I'm Baaack again and a little sooner than I would have expected. You have always been on target and have now Leased 5 vehicles over the past years with your added knowledge.
As this is a little more complex than usual due to my existing lease I will break it up into two parts. That's the way I look at the deal anyway, being I will not let the old interfere with the new. I will get a price on the new lease and then if any thing is due on my old I will pay it separately.
The two posts in case they do not get in order will be:
1.Audi A4 Cabriolet
2. Exiting a Sebring Limited Lease.
I thank you well in advance for your input.
Gary
The lease program on the a4 seems to be well supported with a
60% residual on 36 months or 72% on 24 Months.
The MF = .00175 or 4.2%
Unfortunately I cannot add or insert my spreadsheet with all of the info so I will give it in parts. Also it seems the format is lost in pasting so it may be little harder to separate the factors.
Vehicle Information
A-4 1.8 T MSRP Invoice
Base Price $35,750 $32,958
Premium Package $1,700 $1,547
Lighting Package $750 $683
Audio Package With Sirius 1,000 $910
Metallic / Pearl Paint $450 $410
Destination Charge $720 $720
Total $40,370 $37,228
Lease FactorsCapitalized Cost ? $38,000
Money Factor 4.2% 0.00175
Residual with 12,000 Miles
36 Months 60%
24 Months 72%
Lease Acquisition (Bank) Fee $575
Dealer Fee $395
Deposit = 1 Month $600
Disposition Fee ?
MSRP = $40,370
24 Month Lease
Selling Price Assumed $38,000
Residual $29,066
1. Term depreciation $8,934
Divided by Months $372.00
2. Rent Charge
Cap Cost $38,000
Residual @ 72% = $29,066
Total x $67,066
Money Factor .00175 $117.00 Sub Total
= $489.00
TAX @ 6.5% $32.00
Monthly Payment ************** $521.00
If Adding to Payment
Bank Fee $575.00 $25.00
Dealer Fee $395.00 $17.00
Money Up Front = $970.00 $42.00
or No Money Down
Total Monthly Payment $563.00
36 Month Lease
Selling Price Assumed $38,000
Residual $24,222
1. Term depreciation $13,778
Divided by Months $383.00
2. Rent Charge
Cap Cost 38,000
Residual @ 72% = $24,222
Total x $62,222
Money Factor .00175 $109.00
Sub Total $492.00
TAX @ 6.5% $32.00
Monthly Payment $524.00
If Adding to Payment
Bank Fee $575.00 $17.00
Dealer Fee $395.00 $12.00
Money Up Front = $970.00 $29.00
or No Money Down
Total Monthly Payment $553.00
These are the numbers and I will post later the information on my lease end
Gary
Here are just the facts. I thought that I was in a bad lease situation, and stuck for the remainder of a 48 month term, I still have 6 months left on the Lease for a 02 Chrysler Sebring Limited Convertible.
My Monthly payments are $350 + tax = $376
Lease end residual = $12,211 + $350 Disposition = $12,561
Payoff amount today is $14,109
I spoke to the Lessors representative at Aimbridge Leasing and received the following offer. They would accept "FROM A DEALER ONLY" a payoff to release of $12,200.
I had the vehicle appraised at Car-Max and they offered to buy it for $13,000
So with that said it would appear that I can wash the lease right now leaving me open for the Audi A4 discussed above.
Your thoughts are appreciated
Gary
Can you help me decipher this money factor difference, and if there's anything else I'm missing? I want this car, but the $75 per month miss has me concerned. thanks!
This is posted in this thread already, if you would use the search you would have found it.
Dennis
If you could find a buyer to give you more, you could work with a dealer or broker to do the sale for you. They would buy it off lease and the sell it to your buyer. By the time you pay the dealer/broker for the work and advertise and find a buyer - you might as well just take the $800 that CarMax is offering.
Dennis
Guess what? Sometimes 3rd party lease banks can make you a better deal! If you only look at what the manufacturer's captive bank is offering that is like looking at the deal from a single dealership or making an offer on a car based on MSRP.
Any good dealer can and will lease cars through any number of lease banks. Find out from their finance department if they can give you a better deal from another bank.
Also if you look in your local yellow pages, there may be several lease agents listed right in your town. Not only can they lease the car to you - no matter what brand or what dealer, but they have contacts with a lot of different car dealers and can often work a better deal than you can - and get you a better lease.
Finally, look online for lease brokers. Lease-by-tel and leasecompare are two I know of - but I am sure that a google search will turn up more. I like leasecompare.com and have used them in the past and will again in the future. I use them now to check deals - they have an instant online quoting module - no waiting for an e-mail, or calling in, you see based on your score the terms (MF and residual) they can do in your area (by ZIP code) instantly.
If either a local or online lease broker can get you a better deal, then they just buy the car from your dealer (at your negotiated low price) or they can find the same car at another dealer for less. Often the lease agent does not even pay the "doc fee" since you dealer is doing nothing but accepting a wire transfer or cashing a cashier's check for the car. The dealer delivers the car to you, same as if you had leased it through them. The lease contract, temp tags, taxes, and registration are all handled by the lease broker. Paperwork with an online broker is handled via overnight envelope (at their expense).
While there can be many super captive lease deals, with money factors below 1% in interest - a lot of them have really high money factors. A check with leasecompare or other 3rd party lease bank may show a better deal for you.
The one big advantage of captive leasing is that the captive number often have an inflated residual. This helps keep the payments low even with high money factors. They can do this in part because they make money off the sale and also because they can efficiently re-market the car after you turn it in. 3rd party lease banks have to have a residual set so they can cover that end of the car at turn in - more or less based on wholesale prices.
Do yourself a favor and compare all the options - not just the captive ones - before you lease. The money you could save may be your own
Dennis
This is for 36mo 12k lease
It seems the dealers quote all over the map and try to rip people off
Need true data
Thanks for the input and THATS exactly what I thought.
If this is all true and I cannot find out until Monday cause I can't reach the the Lessor over the weekend, then it looks like a good deal.
I have leased and financed many vehicles, and in all but one, I have never had a problem moving out of these, if I wanted to, by selling the car private party and either making a little money or breaking even in terms of the payoff. Fortunately, so far, I have chosen good cars.
dealer quoted 36mo 12k with 51percent residual at 9%
This is a rip off and do not believe them to be correct for april
Asking the same question over and over and over will not get you the answer you want.
I think the lease banks got burned on the C5 'vette deals since the car did not retain value well - and GM had to put large rebates and 0.0% money on them to sell them. My '00 convertible was worth far less at the end of the lease than the residual. They have learned, and are no longer giving them high residual numbers.
I read just the other day that GM is putting a $1,000 incentive or rebate on the C6 already.
The dealer can't change the residual anyway (this too has been stated many times in the forum) but they can jack up the money factor. GMAC may have different rates for different credit levels as well. If you found out the tier 1 buy rate you might not can get it in any case - and even if you did qualify for that rate the deal can (and will) jack up the rate for extra profit. You have to find a dealer that will give you the best rate. in my case, it was via a 3rd party lease bank the dealer found for my 'vette lease. MUCH cheaper than GMAC at that time.
I checked over at leasecompare.com and they are doing 48% 0.00220 (5.28%) on a 36/36k C6 coupe and the same MF and 50% on the convertible. If the dealer does not give you the answer you want to hear - then look elsewhere as I did. If GM has trouble selling the cars then they may not offer good lease deals, then they get them all back and have to sell them again. Make your best deal on the car, then if the dealer numbers are higher than leasecompare (or other lease broker) then just leave the car from them and save the money.
From what folks tell me the C6 is a lot better than my C5 was, I hope so since my car was in the shop a lot
Dennis
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Before I give you an idea of what the Freestyle's lease program is like, I need to tell you that rather than publish money factors for the vehicles that it leases, ford credit publishes lease rates. You can convert its lease interest rates into approximate money factors for the purpose of calculating lease payments by dividing them by 2400. OK, if you were to lease a 2005 Ford Freestyle Limited 2WD through Ford Credit right now for 2 years with 15,000 miles per, its base lease rate and residual value should be 0.25% and 61%, respectively. The numbers for an otherwise identical 3 year lease should be 3.0% and 53%. When negotiating your lease, keep in mind that Ford is providing $1,000 dealer cash on the Freestyle this month. This money will help you to negotiate an attractive capitalized cost.
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As far as getting out of your Civic lease early goes, I am sorry to say that it is usually fairly expensive to get out of leases well before their scheduled end dates. In order to do so, you need to purchase the vehicle that you are currently leasing from the bank that you are leasing it through. It often turns out that it costs more to do so than your vehicle is worth on the open market. Furthermore, many banks expect consumers who end their leases early to still make all, or at least the depreciation portion of their remaining lease payments. As you can see, this can get very expensive.
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I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for this Odyssey would be exactly the same, regardless of whether you had put $2,000 down, or had made absolutely no down payment at all.
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If you were to lease a 2005.5 Audi A4 2.0 Sedan with quattro through Audi Financial Services for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00135 and 57%, respectively.
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You don't have to look any further than right here at Edmunds.com for a good lease calculator. Click on the following link to check the one that is available at this site out: Edmunds.com Lease calculator. You can also learn how to calculate lease payments on your own by reading the following article: Calculate Your Own Lease Payment.
After you know the MSRP and selling price of the 2005 Honda Accord EX-L with navigation that you want, use a money factor .00113 and a residual value of 50% to calculate its monthly payment.
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