First, GREAT forum! Second, I am interseted in leasing a Toyota Camry XLE. CarMan, can you tell me what % is used for calculating the residual value and also the current MF? My credit scores are great and put me in Tier 1. Also, Toyota has 1.9% APR for 36 months for purchasing the vehicle. Can this rate be also used for a lease? The MF quoted by dealer is .00155 which put the % rate at 3.7.
The residual is set by the lease bank - 3rd party banks use the ALG numbers, captive lease banks (like Nissan Acceptance or GMAC or Honda Finance) make up their own numbers.
Typically the ALG number is pretty much a real world residual - about what the car should be worth at the end of the lease. It may tend to be closer to a wholesale number than retail, however. Keep in mind that these are estimates. If the car turns into a slow seller, has a reliability problem, or is replaced by a newer and much better model then the car will not likely be worth the residual. This is the gamble the lease bank takes, so you don't have to. Of course, it could be a wildly popular car and be worth more at the end of the lease. You can buy it for the below market residual, or turn it in and the bank makes extra profit.
Captive banks can use real world residuals for hot selling cars, or for slow movers they can jack the residual up to make the lease payments lower and move more cars. Captive lease banks can also use way below normal money factors to help move cars.
Your job (should you choose to accept it) is to bargain down the purchase price just like you would do a cash or finance sale. The lower you get the dealer to take for the car, the lower your payments - since the residual stays the same.
The mistake folks make is walk into the dealership and say "I want to lease that car". Then the dealer can play all kinds of games with pricing, term, etc.
You always:
1) Negotiate the price of the car down as far as you can, including destination and dealer fees 2) Negotiate trade in value, if any 3) Tell them you want to lease at the buy rate 4) Repeat at as many dealerships as you can
You have to lease for where the car will be garaged. If you move, then you will have to contact the lease bank and tell them the new location. Depending on the states involved this could lead to a double taxation problem.
They will not lease you a car in NC as if you are a NC resident, then let you move it to FL. You would have to lease it in NC as either a NY or FL resident, then if NY "move" the lease to FL.
I know you are set on the Avalon, but trying to get something they can't keep in stock just means you are going to pay way too much.
The SE region (I am in it too) pretty much hurls as far as deals and choices. I have owned one new Toyota in my life and it may well be the only one, just because of their evil ways.
I have a question regarding leasing in NY. I currently own a car that i have about $5000 positive equity and would have a dealer trae in value around $25,000. If I traded in the car on a new purchase, I would only have to pay taxes on the value of the new car over the trade. On a lease, is there any tax benefit of trading in a car?? If I trade in the car, would the value (~$25,000) be deducted from the lease price for that term? In essense, I would be looking at no tax on the car that I am looking at since the lease over the 36 months isn't more than $25,000. I hope I am explaining it correctly here. Of course, this would be a very promising scenario for me!! Thanks in advance. Dennis
Would you please provide me with the MF and residuals on the 2005 Audi A4 and A6 for the month of May, both 36K/12K miles per ? Also, has Audi extended the $ 1500 lease loyalty cash they had on the A6 ? Any other incentives that you may be aware of ? As always, thanks so much for your help !
Can you please tell me the residual on a 05 Tundra DCab 4x4 SR5, leased for 36mos / 15,000mi ?
The dealer told me that Toyota Financial has a special lease with a great MF of 0.00011 (yes, 0.26%). I just need the residual to go along with that... I'm hoping it's still in the 60's ...
The dealer can't change the residual, it is set by the lease bank (Toyota Financial in this case). So just ask the dealer, the number he gives you is the number - he can't change that.
New to the forum and enjoying every bit of the posts here. I noticed a new lease for the 06 BMW 325i on their website and it runs at 36 mths/10K miles with $3299 cash ($399 1st mth pay, $2500 dwn pay, $400 sec. dep) at signing for MSRP $32,270, excluding tax, title, etc. First of all, is this a good deal? Secondly, what is the MF for this deal?
Thanks for the reply. While I understand that technically that may be the case...I have a friend who leased a Lexus 330RX and moved down here. He's been here a year. There has been no change at all on the lease. He has even called the lease company to inquire about buying it out.
The only issue is that he needs to return it to NY when the lease is up.
I really "hear" you when you mention being set on the Avalon. Thing is that I'm trying to have my cake and eat it too.
There are no full sized Japanese vehicles that come in around $36k. I'm 34 and the Buick and Ford 500 just aren't a possibility. The Maxima is sort of ugly to my eye and rides more harshly.
If you can suggest something Japanese and full sized that does 0-60 in 6.5 seconds and gets 30MPG highway, comes in under $37k out the door- I'm all ears!
I'm trying to avoid an SUV at all costs. My previous car was an 02 Honda Accord V6. If I wasn't going into Real Estate I'd most likely get a mid sized sedan which opens quite a few options.
But, it is getting to the point of me needing a vehicle. Too bad honda doesn't have a full sized car. I may need to get something different though...
If you are leasing at MSRP and the money factor is over 6% then I would say that is not a very good deal. Their lease calc I think always assumes $2,500 cap cost reduction, no tax, and getting at MSRP.
It might be hard to get much of a deal on the new 3, since they are just coming out. My not be a smart move to get the new model either, lots of folks that got the new 5 were sorry with all the problems they had.
If you opt for the 2005 325i I think there is a still a large dealer incentive to help move them and the lease numbers are 57% and 0.00225 . So worse residual, but better rate, and they should deal a lot cheaper on the car then add in the dealer cash. Car is also a "proven" design as well.
NY makes you pay the tax up front, or roll it into the lease (and the lease bank pays it), FL looks like a tax on the payment state.
So potentially you could get stuck with both - you pay or roll the NY tax into the lease, then move to FL and they stick tax on the payment. It may depend on how much the lease bank cares about following the letter of the law. I think the lease bank for Toyota in NY would not be the same one as the SE so they may not care or even have a FL tax ID number to collect the tax.
If you lease from another dealer some place else and tell them you live in FL, then they should be able to set the lease up for you as a FL lease.
If the residual and MF are not good from Toyota, then you could go with leasecompare.com or other lease broker. I KNOW they could do you a 3rd party lease as a FL resident no matter where you find the best deal on the car.
I understand. Yep- I know about leasecompare. I e-mailed a N. Carolina dealer with a good reputation, but they are still within the SE distributorship.
I just spent a while looking at other cars and viewing how much a rental would be.
Very frustrating as I keep coming back to the Avalon which nobody has- in this region anyways. Grrrrr.
Thank you Dennis. Your answer is grately appreciated. I'm contemplating on the 06 325i or the 05 330i but I noticed that even with big incentives, 330i lease might not be worth it with MF of 0.00265 and 54% residual. Have these numbers for 05 330i lease changed for May?
Thank you, but my question was: "What is the residual (as a percent)?"
The dealer has not given me a number yet, or I would have asked differently, perhaps, "Can you verify that the dealer's residual % is correct?"
I know the dealer can't change residual. I would like to have the number, and walk in with my complete offer for a truck, knowing down to the penny what my payment should be.
So can you please help - what is the current Toyota Financial residual (%) is for a Toyota Tundra DCab 4x4 on this 36/15000 lease?
Carman I am responding again to your questions you asked me reagrding the 2005 Acura TL w/Nav. Here arev my answers... It is the TL auto w/Nav. The Full MSRP is $34,650 plus $545 dest. fee. The invoice is $31,575. I checked online and I believe the #'s are correct. I would like to get this car for $32,000 plus Dest. fee. IUt's a 48 month lease with12k miles per year. I have a trade (2002 Camry LE 45,000 miles) to 1 of the dealerships and they appraised the car for $10,500 and the buyout is $14,500. Oviously they are rolling this into the new lease. From what I gather the buy rate is .00220. Are therre any May specials going on right now??? I am doing my numbers with tax and I am coming up with $485 - $500mdepending what the $2,500 down includes or excludes. I know ther are some addn'l fees there like acquisition 1st month payment etc... Am I correct here? Also what is the residual for a 48 month lease w/nav. Dwynn gave me 59% but that was for a 36 month. I hope I have given you enough info.
I don't know, but you said the dealer gave you the money factor (which is a number that he CAN jack up) so why not just call them and ask what the residual percent is on the lease term/miles you are interested in? Then you can figure it to the penny before you go in. Heck, call 2 or 3 different dealers and they should all give you the same answer.
A search here might get you close if car_man has posted this lately, but the residual drops during the model year so a post that is not current might be a percent or two off. He posted 64% in March so I would guess 63% or 62% would be the right number now.
It also depends on where you live. In the Cincy region no lease specials are shown, in the SE regions it says:
In lieu of customer cash and/or special SETF APR Program; through SETF only. No security deposit. Excludes dealer documentation fees. Closed-end lease on all new 2005 Tundra Double Cab SR5 V8 model number 7744 with select equipment. Adding options increases payment. $27,969 Adjusted Capitalized Cost based on $0 down payment. Lessee pays maintenance, excess wear and tear and $0.15/mile over 12,000 miles per year. Monthly payments total $13,872. A Disposition Fee of $350 is due at lease-end. Lease-end purchase option $18,050. Offer only available to those with approved credit from Southeast Toyota Finance. Retail delivery must be taken out of dealer stock by May 31, 2005. PROGRAM DATES: 05/03/05 - 05/31/05
The residual is $18,050 but it never states the full MSRP
Looks like Honda is keeping the same lease specials on Accord, Civic, and Pilot that had for the last couple of months. The LX one is the same payment, but for some reason the net cap cost they show now is slightly higher. Keep in mind you can put less money down if you want (or more) this is just and EXAMPLE to make the payment come out to a certain number - $199 a month.
Dennis
Terms and Conditions
2005 Accord LX Sedan Special Featured $199 Lease
$199.00 per month for XX months. $1,499.00 capitalized cost reduction. $2,493.00 total due at lease signing (includes first month’s payment, security deposit, capitalized cost reduction and AHFC upfront acquisition fee; total net capitalized cost and base monthly payment does not include tax, license, registration, options and the like). Model CM5645EW (2005 Accord LX Sedan with Automatic Transmission). Special lease rates available on all new 2005 Accord models. Offer valid from 5/3/2005 through 7/5/2005. Not all buyers may qualify. Subject to limited availability. The specific featured lease listed is not available to New York residents. New York residents should contact their dealer for New York featured lease. Terms and conditions vary for New York Residents. In addition, AHFC limits leasing terms to 39 months or less to residents and dealers in the state of Rhode Island.
Offer valid from 5/3/2005 through 7/5/2005 for new and unregistered Accord vehicles only and only on approved credit by AHFC through participating dealers. AHFC standard credit criteria apply. FEATURED SPECIAL LEASE: Closed-end lease for 2005 Accord LX Sedan with Automatic Transmission (Model CM5645EW). MSRP $21,090.00 (includes destination). Actual net capitalized cost $18,222.24. Dealer participation may affect actual payment. Taxes, license, title, registration, documentation fees, options and insurance extra. Total monthly payments $7,164.00. Option to purchase at lease end $11,388.60. Lessee responsible for maintenance, excessive wear/tear and 15¢/mile over 12,000 miles/year. SEE DEALER FOR DETAILS. The specific featured lease listed is not available to New York residents. NY residents should contact their dealer for NY featured lease. Terms and conditions vary for NY Residents. In addition, HFS limits leasing terms to 39 months or less to residents and dealers in the state of Rhode Island.
I have a pretty basic question for you regarding the lease on a 2003 Subaru Outback AW vehicle. I am 28 months in on a 42 month lease and curious of programs that would allow me to buy the car out of the lease before term. The end of term purchase price will be $13,213, and f I wanted to purchase the vehicle today, I would have to pay $17,842.
My goal is to buy and lower my monthly payment, but I'm not sure if this is the best thing to do right now. The car is in perfect shape and under miles, so any lease to loan advice you can give would be greatly appreciated! Thank you!
Does the buyout price include sales tax? If not, how much would that add to the price?
Then call your credit union or bank or Capitalone online and get a lease buyout loan quote (Capitalone will show you the rate online w/o applying) that would include the buyout with tax. Then pick a term and calculate the monthly payments. How does this compare to your lease payment?
You can also get a detailed buyout price from your lease bank, it is possible that your buyout price includes an early payoff penalty. If so, you can avoid this by staying in the lease longer until this decreases or goes away.
If you lease is at a below market rate, it might work out cheaper to stay in it. You could work this out by taking the end of lease buyout + tax and calc the finance at the rate you used for the current buyout. Total up the remaining lease payments + the total of these payments and compare to the total of the payments for buying it out now - it may be cheaper to wait, or it may be cheaper to buy out now.
Not much more to say without knowing the lease payment, tax rate, credit score (for the loan rate), etc.
So, based on the information given that I pay tax based on the payment, I would think that it is a better idea to try to sell the car privately and get 27,000 for it instead of trading it and getting 24,500 for it, the $2500 I am making on selling privately will easily offset the $1200 - $1500 I am paying in taxes over the life of a 30 or 36 month loan.
Not really asking a question, just making sure I am thinking straight.
I will investigate further regarding the sales tax in the buyout price. I did go to CapitalOne and calculate that a 60 month loan would lower my monthly payments (if sales tax is included in the buyout price I received today). I appreciate your time and help with my question!
But that will be a REALLY OLD car by the time you get it paid for - that is the problem - and you will be upside down (loan payoff to car value) for a long time.
I think that is correct. I looked up lease tax in NY on the web, so unless I read it wrong (or what was posted was wrong) that is how tax is calculated - so I don't see in your state how a trade would help.
In my state, any cap cost reduction is taxed then tax is stuck on top of the monthly payment. So other than to offset tax on the a large cap cost reduction no reason to trade here either. Some states tax the whole value of the car, but I think they normally discount the tax for the trade.
One really nice thing about leasing, at the end of this lease you will have no trade to hassle with. Just make your best on your next new car, sign, and drive.
I live in NY get a quote for an Acura TSX w/o Navi lease for 27mths/12K of $239/mth + 3,683 upfront, excluding tax. Do you guys that it is a good deal?
In this market, do you guys will prefer a G35AWD lease at the moment? From the posts, it seems like Infiniti may be more ready to get these cars out sooner.
May I have the May rates for both models above? I really appreciate. And I really learnt a lot from everyone, esp. car_man and dennis. Thank you so much!!
I've called three local (salt lake city, ut) dealers, and got vague answers from each - could there be some game going on??? They each want to quote DOLLARS residual, even when I ask for the "% residual on a 36/15000 lease".
Dealer 1: "The residual is over $20,000 ... maybe $21000". Dealer 2: "The residual on a $33,007 truck is 19,200" Dealer 3: "The residual on a $33,007 truck is 19,091.50"
Now, I have a calculator ... but this is frustrating. Dealer 1 could be anywhere from 60.6% to 63.6%. Dealer 2 is 58.17%. And Dealer 3 is 57.84%.
Shouldn't there be one residual # that Toyota Financial sticks to?
I too saw the 64% post back in March -- that's why I'm hoping for current residual in the 60s.
Can anyone help with this lease?? I am leaning towards a G35 Infiniti coupeMT6 lease. The car I am looking at has an MSRP of 38,410. I will probably do 36 months at 15K miles per year and 3,000 down. I am going to try and negotiate a price at 1500 - 2000 over invoice.
Does anyone happen to know the May residual and money factor for this car at 36 months and 15K miles??
I checked previous posts and couldn't find anything recent on these models.
Expanding my horizons in search of the best lease on an SUV. I'm looking at the Yukon XL Denali. There are some good rebates on these, plus I have a few dollars on my GM card to reduce the cap cost as well.
What is the residual on the Yukon XL Denali for 24m/30k and 36m/45k? I'm looking at the model with the Sun, entertainment, and destination package, with the captains chairs in the second row (MSRP of $59,710), and $2850 worth of dealer installed options (priced through the GMC website, 20" rims and tires). Will these dealer installed options count toward the residual? I doubt it, but want to double check.
I'm assuming the Escalade extended is similar, but please advise.
I bet it is 58% based on your numbers. Looking back at car_man's March post he was saying that a month or more prior he saw 64% and that was in March. So it might have been 4-5 months ago. Residuals drop during the model year, so that would be normal.
Also, it is regional - some reasons have no lease special, others do. It could be that the percent he posted was for a different region than you live in.
On the SE lease deal I posted it says "with selected options" but does not list them, but has the residual. So if you add a something to the truck price you seem to get around this same percent.
I guess I would figure it at 58% and see if that looks good to you with the cheap MF. If so then deal them down on the truck and see what they come up with in the finance office. Surely it will not be worse than that
I am in the market for one of the following: 2005 BMW x5 2005 Landrover L3 2005 Lexus RX330
Can you tell me what the May residuals and MF are for these vehicles? I'd REALLY love the 2006 Mercedes ML350, but is a little too expensive and too unknown. My favorite car from all the test drives.
Thank you CarMan and Dwynne! I picked up a Maxima SE today. Sticker 32880 got 150 below invoice ended up at 378 and change a month. 36/15k per 15cents over. I had numbers using 53% residual from april they told me it was 52% now no biggie I was happy with the deal. THanks for the invaluable advice.
Steevo: was that 378 payment with $0 down (sign & drive)? Did it include your sales tax? The Maxima SE that I've got my eye on has a sticker of $31730 (invoice is like $28,800 - TMV is $29500). Would love to get a payment that low or lower!
Well its too late now, i sign papers last week. I traded a Honda Accord 2004 LX for a Toyota Tacoma 2005 Window price was 25,995. I got a lease for a 5 year term for about 480.00 a month and 1,300 down. I have a 650 credit score. The Honda was on a buy 60 months. I had about 9 months paid on it. Can some one help me out and tell me what did i do? i'm only 21. I"m not familiar with leases. Did i do bad? Good deal? bad deal? Thanks.
My dad had this problem. leased a car in NJ where they do the upfront or roll in the tax. he paid up front, not wanting to pay interest on tax.
moved to florida, MBCredit decided to charge tax on the payments in FL. Big fight ensued, since my dad had already paid tax. long story short, he threatened to sue and MB had to figure out how to get the balance of the tax back from NJ and give it to Florida. afterall, NJ had collected 4 years of tax, but only deserved 2, so technically they did owe a refund...
Good example. I'll be sure to inquire with the finance company prior to signing anything.
BTW, I will be a Florida resident when I get my driver's license Tuesday.
Just got a great lead on exactly what I want in Arizona. I can fly there free with all my Worldperks miles on NorthWest. I'm hoping they can ship it to Orlando and roll that into the lease cost though. Otherwise, I may just fly down there and drive back. I'll search out closer dealers as well.
Greetings CarMan - Thanks so much for all the help you provide on this list. I am interested in leasing a MB C240 4Matic... But I'm curious about the leasing numbers... here's what I was quoted:
MSRP: 37640 Selling Price: 33640 (2k off from MB, 1k from MBCredit, and 1k from Dealer) Resid: 55% MF: .00375 Term: 39 mo using 36mo resid Mileage: 12K/year Initial Pmt: 1726.07 (no cap cost reduction, that's acquisition, 1st pmt, and other fees I haven't yet pinned down)
Pmt incl tax (10%): $589.07
Now, the resid seems fine and the price is okay, but the money factor is a killer. Is that right? Can you tell me the base MF should be on these vehicles?
I'm trying to decide between going for it now and waiting on the 280, which may well have a bit better resid, but of course won't have the discounts... Thoughts? Thanks much!
I paid 8.75% Tax(NY LI yikes!!) ,aquisition, and 200 in MV fees difference to actual registration amount to be refunded. Was about 2400 dollars.(I had trade value which ate those costs..I negotiated deal by Email through Internet Sales guy without mentioning Trade. Terry at the Trade Forum here gave great advice on real world trade in value..Thanks Terry!) I email negotiated using the April Lease numbers from Car_Man. I never gave the payment amount, just the terms. I had worked the numbers myself so I would know what a good offer would be. They emailed me back 378 + 2400 out of pcket and a residual number 1 point lower than I used. My calculations using April was 375.61 PRE tax they were 378.98 but they never disclosed the MF and I never asked..but they were 52% residual. All in all a nice deal!
Go to the Maxima Prices Paid board to get an idea what people are paying in your area. I will repost this there where it probably belongs anyway. Good Luck!
Steevo: thanks for the info. I do have one other question that I hope you can answer (I asked the board earlier last month but no one really knew):
Does the lease contract with NMAC specify the coverage amounts you must carry for insurance? If so, is it 100/300? Also, is GAP insurance included in the payment/contract or must you carry that separately?
I just took a look on leasecompare.com and found payments of $482 and $499 for automatic and manual with a .00210 MF at 39 mons. I guess it depends on your credit score though. I'm not familiar with the 4matic, so I wasn't sure if it was automatic/manual, or what, so I pulled data on both of them. These numbers are for a 2005. Residual for the Auto was 19170 and 18417 for the manual. I used the same number for a down (total out of pocket of approx 1682). Prices don't include sales tax, but it's still a decent savings after adding that in.
Can you please tell me the MF and Residual for a Maxima SE. I need them for either 24 or 27 or 30 months with 15K miles a year. I can't go for a longer term on this car since the car would be passed the 36K warranty before the lease is up based on me driving 15K miles a year and I don't think that leasing a car past the warranty period makes any sense.
Also, can you tell me the MF and Residual for an '05 Infiniti G35x for: 36 months and 15K miles a year.
I am in NY where gap coverage is required by law with lease. The minimum Insurance requirements as per the back of the NMAC lease agreement allows 1000 deductable, 50,000 property damage, 100/300 bodily injury liability.
First, there are very few of these cars remaining. MBUSA had lease program last month to clear them out (end of winter, model EOL), but those deals were not renewed indicating there are few to none left. Right now, the deals are only for the C230, which they still have a bunch of, and the 2006 E350, likely to spark interest in the car and get advertisements out there letting people know the engine is new.
But more importantly, by the end of June (exact date not known), the 2006 C-Class will arrive, and it is HUGE improvement at about the same price (not set yet).
It will be a C280 4Matic, with a 228hp V6, 60 more hp than the current car. The residual on that car will be much higher than the outgoing car due to new model year and new engine, and since there are no lease programs now, there may or may not be one then.
I have one on order to pick up in Europe, and first day for pickup is late July, but non-customized Cs should arrive in the US well before that.
As for residual, that number is not MBs number according to my dealer or the MB website. MBCredit has a high money factor, but it also has a high residual to balance. Private lease companies have lower rates, in the 0.002xx range, but also lower residuals (in the 50% range). If you plan on buying the car at the end, then this might be a better way to go.
For MBCredit, Tier 1 buy rate is 0.00315 with a residual of 56% for 12k, 57% for 10k. This was confirmed by the dealer and can be checked against the MBUSA website by plugging those numbers into Edmunds.com calculator and comparing it to lease payment on MBUSA. Come out to be equal to the dollar when I do it.
Hi, looking to lease an Audi A4. Looking at FWD, 6M, Premium, sport package. Considering the Quattro. Does the Quartro have a better residual? My dealer is quoting me $440 per month, plus tax, $1400 down, 10K per year, 36 mo lease. Residual is 18020 on a price of 30320. May be able to work them down some on the price, money factor is at .00157. Help!
Hi there. I almost bought that car, but I just bought a TL. Your deal seems a bit strange with $3000 down and $2000 over invoice. I used a guy in FL that negotiated my whole deal with no mark up money factors and NO money down at $200 over invoice. Check out http://www.autoleaseconsultant.com/ and email Chad. He is an honest, straightforward guy and will help you out. I just went to my local dealer to sign the papers.
Thanks for the info. Unfortunately, the Pilot does not provide any airbag protection for the rear seat occupants. I have eliminated any vehicles from consideration which do not have this, this forces me to a much higher expense level than I would like.
Comments
First, GREAT forum!
Second, I am interseted in leasing a Toyota Camry XLE.
CarMan, can you tell me what % is used for calculating the residual value
and also the current MF? My credit scores are great and put me in Tier 1.
Also, Toyota has 1.9% APR for 36 months for purchasing the vehicle.
Can this rate be also used for a lease? The MF quoted by dealer is .00155
which put the % rate at 3.7.
Thanks.
Raj
Typically the ALG number is pretty much a real world residual - about what the car should be worth at the end of the lease. It may tend to be closer to a wholesale number than retail, however. Keep in mind that these are estimates. If the car turns into a slow seller, has a reliability problem, or is replaced by a newer and much better model then the car will not likely be worth the residual. This is the gamble the lease bank takes, so you don't have to. Of course, it could be a wildly popular car and be worth more at the end of the lease. You can buy it for the below market residual, or turn it in and the bank makes extra profit.
Captive banks can use real world residuals for hot selling cars, or for slow movers they can jack the residual up to make the lease payments lower and move more cars. Captive lease banks can also use way below normal money factors to help move cars.
Your job (should you choose to accept it) is to bargain down the purchase price just like you would do a cash or finance sale. The lower you get the dealer to take for the car, the lower your payments - since the residual stays the same.
The mistake folks make is walk into the dealership and say "I want to lease that car". Then the dealer can play all kinds of games with pricing, term, etc.
You always:
1) Negotiate the price of the car down as far as you can, including destination and dealer fees
2) Negotiate trade in value, if any
3) Tell them you want to lease at the buy rate
4) Repeat at as many dealerships as you can
Dennis
They will not lease you a car in NC as if you are a NC resident, then let you move it to FL. You would have to lease it in NC as either a NY or FL resident, then if NY "move" the lease to FL.
I know you are set on the Avalon, but trying to get something they can't keep in stock just means you are going to pay way too much.
The SE region (I am in it too) pretty much hurls as far as deals and choices. I have owned one new Toyota in my life and it may well be the only one, just because of their evil ways.
Dennis
Dennis
So the tax due is:
Monthly_Payment x lease_term_in_months x local_tax_rate
So a $400 a month 36 month lease for a car garaged in a county with a 8.25% tax rate would be:
$400 x 36 x 0.0825 = $1,188
You either have to pay this up front, or can roll it into the lease. If you roll it into the lease then you pay interest on the tax as well.
With the trade in, you would just reduce the payment and would save the taxes on the payment.
Dennis
Would you please provide me with the MF and residuals on the 2005 Audi A4 and A6 for the month of May, both 36K/12K miles per ?
Also, has Audi extended the $ 1500 lease loyalty cash they had on the A6 ? Any other incentives that you may be aware of ?
As always, thanks so much for your help !
Can you please tell me the residual on a 05 Tundra DCab 4x4 SR5, leased for 36mos / 15,000mi ?
The dealer told me that Toyota Financial has a special lease with a great MF of 0.00011 (yes, 0.26%). I just need the residual to go along with that... I'm hoping it's still in the 60's ...
Thanks in advance.
The dealer can't change the residual, it is set by the lease bank (Toyota Financial in this case). So just ask the dealer, the number he gives you is the number - he can't change that.
Dennis
Thanks for the reply. While I understand that technically that may be the case...I have a friend who leased a Lexus 330RX and moved down here. He's been here a year. There has been no change at all on the lease. He has even called the lease company to inquire about buying it out.
The only issue is that he needs to return it to NY when the lease is up.
I really "hear" you when you mention being set on the Avalon. Thing is that I'm trying to have my cake and eat it too.
There are no full sized Japanese vehicles that come in around $36k. I'm 34 and the Buick and Ford 500 just aren't a possibility. The Maxima is sort of ugly to my eye and rides more harshly.
If you can suggest something Japanese and full sized that does 0-60 in 6.5 seconds and gets 30MPG highway, comes in under $37k out the door- I'm all ears!
I'm trying to avoid an SUV at all costs. My previous car was an 02 Honda Accord V6. If I wasn't going into Real Estate I'd most likely get a mid sized sedan which opens quite a few options.
But, it is getting to the point of me needing a vehicle. Too bad honda doesn't have a full sized car. I may need to get something different though...
Dean
If you are leasing at MSRP and the money factor is over 6% then I would say that is not a very good deal. Their lease calc I think always assumes $2,500 cap cost reduction, no tax, and getting at MSRP.
It might be hard to get much of a deal on the new 3, since they are just coming out. My not be a smart move to get the new model either, lots of folks that got the new 5 were sorry with all the problems they had.
If you opt for the 2005 325i I think there is a still a large dealer incentive to help move them and the lease numbers are 57% and 0.00225 . So worse residual, but better rate, and they should deal a lot cheaper on the car then add in the dealer cash. Car is also a "proven" design as well.
Dennis
So potentially you could get stuck with both - you pay or roll the NY tax into the lease, then move to FL and they stick tax on the payment. It may depend on how much the lease bank cares about following the letter of the law. I think the lease bank for Toyota in NY would not be the same one as the SE so they may not care or even have a FL tax ID number to collect the tax.
If you lease from another dealer some place else and tell them you live in FL, then they should be able to set the lease up for you as a FL lease.
If the residual and MF are not good from Toyota, then you could go with leasecompare.com or other lease broker. I KNOW they could do you a 3rd party lease as a FL resident no matter where you find the best deal on the car.
Dennis
I understand. Yep- I know about leasecompare. I e-mailed a N. Carolina dealer with a good reputation, but they are still within the SE distributorship.
I just spent a while looking at other cars and viewing how much a rental would be.
Very frustrating as I keep coming back to the Avalon which nobody has- in this region anyways. Grrrrr.
Dean
The dealer has not given me a number yet, or I would have asked differently, perhaps, "Can you verify that the dealer's residual % is correct?"
I know the dealer can't change residual. I would like to have the number, and walk in with my complete offer for a truck, knowing down to the penny what my payment should be.
So can you please help - what is the current Toyota Financial residual (%) is for a Toyota Tundra DCab 4x4 on this 36/15000 lease?
Thanks.
Your help is greatly appreciated!!!
Mike
I would rather have a 330i than a 325i
Dennis
A search here might get you close if car_man has posted this lately, but the residual drops during the model year so a post that is not current might be a percent or two off. He posted 64% in March so I would guess 63% or 62% would be the right number now.
It also depends on where you live. In the Cincy region no lease specials are shown, in the SE regions it says:
In lieu of customer cash and/or special SETF APR Program; through SETF only. No security deposit. Excludes dealer documentation fees. Closed-end lease on all new 2005 Tundra Double Cab SR5 V8 model number 7744 with select equipment. Adding options increases payment. $27,969 Adjusted Capitalized Cost based on $0 down payment. Lessee pays maintenance, excess wear and tear and $0.15/mile over 12,000 miles per year. Monthly payments total $13,872. A Disposition Fee of $350 is due at lease-end. Lease-end purchase option $18,050. Offer only available to those with approved credit from Southeast Toyota Finance. Retail delivery must be taken out of dealer stock by May 31, 2005. PROGRAM DATES: 05/03/05 - 05/31/05
The residual is $18,050 but it never states the full MSRP
Dennis
Dennis
Terms and Conditions
2005 Accord LX Sedan Special Featured $199 Lease
$199.00 per month for XX months.
$1,499.00 capitalized cost reduction.
$2,493.00 total due at lease signing (includes first month’s payment, security deposit, capitalized cost reduction and AHFC upfront acquisition fee; total net capitalized cost and base monthly payment does not include tax, license, registration, options and the like).
Model CM5645EW (2005 Accord LX Sedan with Automatic Transmission).
Special lease rates available on all new 2005 Accord models. Offer valid from 5/3/2005 through 7/5/2005. Not all buyers may qualify. Subject to limited availability. The specific featured lease listed is not available to New York residents. New York residents should contact their dealer for New York featured lease. Terms and conditions vary for New York Residents. In addition, AHFC limits leasing terms to 39 months or less to residents and dealers in the state of Rhode Island.
Offer valid from 5/3/2005 through 7/5/2005 for new and unregistered Accord vehicles only and only on approved credit by AHFC through participating dealers. AHFC standard credit criteria apply. FEATURED SPECIAL LEASE: Closed-end lease for 2005 Accord LX Sedan with Automatic Transmission (Model CM5645EW). MSRP $21,090.00 (includes destination). Actual net capitalized cost $18,222.24. Dealer participation may affect actual payment. Taxes, license, title, registration, documentation fees, options and insurance extra. Total monthly payments $7,164.00. Option to purchase at lease end $11,388.60. Lessee responsible for maintenance, excessive wear/tear and 15¢/mile over 12,000 miles/year. SEE DEALER FOR DETAILS. The specific featured lease listed is not available to New York residents. NY residents should contact their dealer for NY featured lease. Terms and conditions vary for NY Residents. In addition, HFS limits leasing terms to 39 months or less to residents and dealers in the state of Rhode Island.
I have a pretty basic question for you regarding the lease on a 2003 Subaru Outback AW vehicle. I am 28 months in on a 42 month lease and curious of programs that would allow me to buy the car out of the lease before term. The end of term purchase price will be $13,213, and f I wanted to purchase the vehicle today, I would have to pay $17,842.
My goal is to buy and lower my monthly payment, but I'm not sure if this is the best thing to do right now. The car is in perfect shape and under miles, so any lease to loan advice you can give would be greatly appreciated! Thank you!
Sincerely,
tbenson
Then call your credit union or bank or Capitalone online and get a lease buyout loan quote (Capitalone will show you the rate online w/o applying) that would include the buyout with tax. Then pick a term and calculate the monthly payments. How does this compare to your lease payment?
You can also get a detailed buyout price from your lease bank, it is possible that your buyout price includes an early payoff penalty. If so, you can avoid this by staying in the lease longer until this decreases or goes away.
If you lease is at a below market rate, it might work out cheaper to stay in it. You could work this out by taking the end of lease buyout + tax and calc the finance at the rate you used for the current buyout. Total up the remaining lease payments + the total of these payments and compare to the total of the payments for buying it out now - it may be cheaper to wait, or it may be cheaper to buy out now.
Not much more to say without knowing the lease payment, tax rate, credit score (for the loan rate), etc.
Dennis
Not really asking a question, just making sure I am thinking straight.
Anyone want to buy a car?!?!
I will investigate further regarding the sales tax in the buyout price. I did go to CapitalOne and calculate that a 60 month loan would lower my monthly payments (if sales tax is included in the buyout price I received today). I appreciate your time and help with my question!
Sincerely,
tbenson
Dennis
In my state, any cap cost reduction is taxed then tax is stuck on top of the monthly payment. So other than to offset tax on the a large cap cost reduction no reason to trade here either. Some states tax the whole value of the car, but I think they normally discount the tax for the trade.
One really nice thing about leasing, at the end of this lease you will have no trade to hassle with. Just make your best on your next new car, sign, and drive.
Dennis
In this market, do you guys will prefer a G35AWD lease at the moment? From the posts, it seems like Infiniti may be more ready to get these cars out sooner.
May I have the May rates for both models above? I really appreciate. And I really learnt a lot from everyone, esp. car_man and dennis. Thank you so much!!
2lo
I've called three local (salt lake city, ut) dealers, and got vague answers from each - could there be some game going on??? They each want to quote DOLLARS residual, even when I ask for the "% residual on a 36/15000 lease".
Dealer 1: "The residual is over $20,000 ... maybe $21000".
Dealer 2: "The residual on a $33,007 truck is 19,200"
Dealer 3: "The residual on a $33,007 truck is 19,091.50"
Now, I have a calculator ... but this is frustrating. Dealer 1 could be anywhere from 60.6% to 63.6%. Dealer 2 is 58.17%. And Dealer 3 is 57.84%.
Shouldn't there be one residual # that Toyota Financial sticks to?
I too saw the 64% post back in March -- that's why I'm hoping for current residual in the 60s.
Any advice? Thanks in advance!
The car I am looking at has an MSRP of 38,410. I will probably do 36 months at 15K miles per year and 3,000 down. I am going to try and negotiate a price at 1500 - 2000 over invoice.
Does anyone happen to know the May residual and money factor for this car at 36 months and 15K miles??
Thank you so much for your time
I checked previous posts and couldn't find anything recent on these models.
Expanding my horizons in search of the best lease on an SUV. I'm looking at the Yukon XL Denali. There are some good rebates on these, plus I have a few dollars on my GM card to reduce the cap cost as well.
What is the residual on the Yukon XL Denali for 24m/30k and 36m/45k? I'm looking at the model with the Sun, entertainment, and destination package, with the captains chairs in the second row (MSRP of $59,710), and $2850 worth of dealer installed options (priced through the GMC website, 20" rims and tires). Will these dealer installed options count toward the residual? I doubt it, but want to double check.
I'm assuming the Escalade extended is similar, but please advise.
thanks
john
Thanks, I appreciate it.
Also, it is regional - some reasons have no lease special, others do. It could be that the percent he posted was for a different region than you live in.
On the SE lease deal I posted it says "with selected options" but does not list them, but has the residual. So if you add a something to the truck price you seem to get around this same percent.
I guess I would figure it at 58% and see if that looks good to you with the cheap MF. If so then deal them down on the truck and see what they come up with in the finance office. Surely it will not be worse than that
Dennis
2005 BMW x5
2005 Landrover L3
2005 Lexus RX330
Can you tell me what the May residuals and MF are for these vehicles?
I'd REALLY love the 2006 Mercedes ML350, but is a little too expensive and too unknown. My favorite car from all the test drives.
Thanks!
I picked up a Maxima SE today. Sticker 32880 got 150 below invoice ended up at 378 and change a month. 36/15k per 15cents over. I had numbers using 53% residual from april they told me it was 52% now no biggie I was happy with the deal.
THanks for the invaluable advice.
The Maxima SE that I've got my eye on has a sticker of $31730 (invoice is like $28,800 - TMV is $29500). Would love to get a payment that low or lower!
moved to florida, MBCredit decided to charge tax on the payments in FL. Big fight ensued, since my dad had already paid tax. long story short, he threatened to sue and MB had to figure out how to get the balance of the tax back from NJ and give it to Florida. afterall, NJ had collected 4 years of tax, but only deserved 2, so technically they did owe a refund...
BTW, I will be a Florida resident when I get my driver's license Tuesday.
Just got a great lead on exactly what I want in Arizona. I can fly there free with all my Worldperks miles on NorthWest. I'm hoping they can ship it to Orlando and roll that into the lease cost though. Otherwise, I may just fly down there and drive back. I'll search out closer dealers as well.
Dean
MSRP: 37640
Selling Price: 33640 (2k off from MB, 1k from MBCredit, and 1k from Dealer)
Resid: 55%
MF: .00375
Term: 39 mo using 36mo resid
Mileage: 12K/year
Initial Pmt: 1726.07 (no cap cost reduction, that's acquisition, 1st pmt, and other fees I haven't yet pinned down)
Pmt incl tax (10%): $589.07
Now, the resid seems fine and the price is okay, but the money factor is a killer. Is that right? Can you tell me the base MF should be on these vehicles?
I'm trying to decide between going for it now and waiting on the 280, which may well have a bit better resid, but of course won't have the discounts... Thoughts? Thanks much!
Scott
I email negotiated using the April Lease numbers from Car_Man. I never gave the payment amount, just the terms. I had worked the numbers myself so I would know what a good offer would be. They emailed me back 378 + 2400 out of pcket and a residual number 1 point lower than I used. My calculations using April was 375.61 PRE tax they were 378.98 but they never disclosed the MF and I never asked..but they were 52% residual.
All in all a nice deal!
Go to the Maxima Prices Paid board to get an idea what people are paying in your area. I will repost this there where it probably belongs anyway.
Good Luck!
Does the lease contract with NMAC specify the coverage amounts you must carry for insurance? If so, is it 100/300? Also, is GAP insurance included in the payment/contract or must you carry that separately?
Thanks!
I just took a look on leasecompare.com and found payments of $482 and $499 for automatic and manual with a .00210 MF at 39 mons. I guess it depends on your credit score though. I'm not familiar with the 4matic, so I wasn't sure if it was automatic/manual, or what, so I pulled data on both of them. These numbers are for a 2005. Residual for the Auto was 19170 and 18417 for the manual. I used the same number for a down (total out of pocket of approx 1682). Prices don't include sales tax, but it's still a decent savings after adding that in.
Hope this helps ...
Can you please tell me the MF and Residual for a Maxima SE. I need them for either 24 or 27 or 30 months with 15K miles a year. I can't go for a longer term on this car since the car would be passed the 36K warranty before the lease is up based on me driving 15K miles a year and I don't think that leasing a car past the warranty period makes any sense.
Also, can you tell me the MF and Residual for an '05 Infiniti G35x for:
36 months and 15K miles a year.
Thanks in advance for your help.
I have been offered the following V70R lease(s):
4yr/12k miles
MSRP 43440, cap cost 35995
MF of .00189
$1k total out of pocket - 503mo. (with tax here in NC)
3yr/12k miles
same MSRP and cap cost
MF of .00214
$1k total out of pocket - 548/mo. (with tax here in NC)
your thoughts?
Edwin
X5 4.8: 0.00270 54% for 36/36k
The Pilot is also a nice truck.
EX-L w/NAV 0.00137 57% for 36/36k
I have not seen the numbers on the others.
Dennis
First, there are very few of these cars remaining. MBUSA had lease program last month to clear them out (end of winter, model EOL), but those deals were not renewed indicating there are few to none left. Right now, the deals are only for the C230, which they still have a bunch of, and the 2006 E350, likely to spark interest in the car and get advertisements out there letting people know the engine is new.
But more importantly, by the end of June (exact date not known), the 2006 C-Class will arrive, and it is HUGE improvement at about the same price (not set yet).
It will be a C280 4Matic, with a 228hp V6, 60 more hp than the current car. The residual on that car will be much higher than the outgoing car due to new model year and new engine, and since there are no lease programs now, there may or may not be one then.
I have one on order to pick up in Europe, and first day for pickup is late July, but non-customized Cs should arrive in the US well before that.
As for residual, that number is not MBs number according to my dealer or the MB website. MBCredit has a high money factor, but it also has a high residual to balance. Private lease companies have lower rates, in the 0.002xx range, but also lower residuals (in the 50% range). If you plan on buying the car at the end, then this might be a better way to go.
For MBCredit, Tier 1 buy rate is 0.00315 with a residual of 56% for 12k, 57% for 10k. This was confirmed by the dealer and can be checked against the MBUSA website by plugging those numbers into Edmunds.com calculator and comparing it to lease payment on MBUSA. Come out to be equal to the dollar when I do it.