Lease Questions - Ask Here

hpowders

Thanks Car_man but I requested the residual and money factor for an Infiniti M45 non-sport for 3 years, 36,000 miles; not the M35 non-sport.
Thanks again Car_man.
hpowders

CarMan@Edmunds

You're welcome frank310. I am sure that you are anxiously counting the days until your new car arrives. I know that I would be . Thanks for taking the time to stop back and let us know how everything turned out. I don't believe that BMW is currently providing any sort of dealer cash on 2005 5-Series models, but it would not surprise me if it introduced some in June. So a selling price of near invoice is pretty good right now.

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CarMan@Edmunds

You are fortunate to have equity in your leased vehicle, vindicator74. The vast majority of consumers would have to pay quite a bit of money to get out of their leases this early. I am not sure of what sales tax is calculated on leased vehicles in your state, but you may be able to find out by looking at the following sites: CyberDrive Illinois or Illinois Department of Revenue.

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hpowders

Thanks Car_man. It has not been easy but it is a lot of fun! My choices are down to the 545i, M45, GS430 and 330i with the 2005 545 and 2006 M45 non-sport probably being the best deals leasewise right now.
My Lexus dealer told me several weeks ago that there will be a new Lexus lease program beginning in June.
Would you please look up the new money factor and residual for the GS430 as it will be in June in Florida for a 3 year, 36,000 mile lease?
Thanks again Car_man.
hpowders

CarMan@Edmunds

Hi lai. If you are trading in your Dodge Dakota only a couple of months after purchasing it and you did not make a significant down payment on it, it is very likely that you are upside down. This means that you owe more money on it than any dealer will be willing to give you for it as a trade. In order to get out of your truck, you will have to either pay the difference between what you receive for it and the amount that you owe on it out of your own pocket, or have it rolled into your next loan or lease. Rolling your negative equity into your next vehicle will only cause you to be more upside down in it. Your least expensive option would be to wait a while to get a new vehicle. If you absolutely cannot do so, you may be able to minimize how upside down your are by selling your truck privately. Consumers are usually able to get more for their used vehicles by selling them on their own than by trading them in. Of course, if you sell it on your own then you would have to pay for your negative equity out of your own pocket.

You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". One of our most knowledgeable community members, Terry, frequents that discussion and he is often kind enough to give community members who give him an accurate description of their vehicles with his opinion on their value.

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CarMan@Edmunds

Hi samosval. I believe that I already answered the questions that you had about the Avalon that you are interested in in an earlier post. Let me know if you can't find my response and I will answer any questions that you have again.

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CarMan@Edmunds

You're welcome skobola. You're right, unfortunately BMW made its multiple security deposit program a lot worse than it was a couple of years ago. Not only did it used to allow lessees to make up to ten additional deposits (instead of the five that it allows now), but I believe that it used to provide a reduction of .00010 instead of the .00005 that it gives now. I guess that the program was just too expensive for it.

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CarMan@Edmunds

Hey manabout. I personally prefer to pay a security deposit rather than having it waived, unless the bank that I am leasing through has some sort of special program that will waive it for free. My thinking behind this is that I would rather pay a deposit that I will get back than just throw away an additional $X per month in a higher lease payment. Many people choose to have their vehicle's acquisition fee rolled into its capitalized cost thinking that if their vehicle is deemed a total loss for insurance purposes sometime before the end of their lease they will not lose be out the entire fee. Individual dealers do not have the authority to waive banks' security deposits, acquisition fees, or disposition fees, but it doesn't hurt to know what the base acquisition fee that a bank charges is because dealers often have the authority to mark them up.

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CarMan@Edmunds

Hi hbomber. According to the latest information that I have seen, if you were to lease a 2005 Honda Accord Coupe 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 .00031 and 53%, respectively. Let me know if you have any other questions.

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vindicator74

Car_Man,

Thank you for your prompt response.

I may have provided too much information, as the question was not really a tax question.

My question is simply this: If I sell my leased car (this can go for any leased cars in this discussion) to a car dealer, which will then pay the "payoff" to the lease company, and use that car as a trade-in, do I have any tax advantage when I pay for the new SUV?

Thanks again!

Vince

davidd3

Car_Man,

Thanks for your helpful reply.

David D

ct1211

Car_Man or anyone in the know on pricing. I am ready to pull the trigger on a 2006 M35 AWD model that has the $10,000 premium package featuring things I dont need like a DVD in the back seat and reclining rear seats. My Infiniti dealer here in Michigan is the only one within 120 miles and for the end of the month crunch they only have 4 or 5 M models left 3 or 4 Sport models with no options, one M45 and the silver M35 I am looking at. I know this is a hot car but my impression from the salesman was that this AWD has been hanging around a while. It has an MSRP of 54,710. It is also being driven as a demo. Do you think I am being unrealistic to offer 1,000 - 1,500 over invoice for this car? At 1,500 over invoice I could get this car for less of a monthly payment than waiting for the perfect car and paying full MSRP for it. Anyone have any thoughts on this?? Thanks for your input!!

Craig

ribbonking

Thanks for the info, Car_man. I assumed there were factory to dealer incentives based on the discount offered from MSRP on the selling price. Perhaps Lexus will have a stronger lease program in June. When you are able to get June lease numbers for the LS430, please let me know what they are. As always, appreciate your help.

lsu1

I am about to get 2 quote/options from my Infiniti dealer on an 2006 M45 (not a sport and not 4wd) for 36 and 39 month lease. What types of money factors, residual should I be looking for to consider it a competitive lease quote.

Our company does business with Enterprise Leasing and I will then have them do comparative quotes using the sale or asset value from the deal that Infininiti offers to me.

Any info that you can share would be appreciated.

jazzman_

Car_Man:
As always thank you for the info...heading to dealer now....will let you know how it turns out, but once again thanks for your time and knowledge.

lai

Hey Car_man Thank you very much for the reply you are right, did you know that after reading some of these folks expereinces with your responses I get the idea of checking my : RETAIL INSTALLMENT CONTRACT

and I just found out that they include the license,certificate of tittle and regsitration fees on this contract as under the OTHER CHARGES TO BE PAID ON MY BEHALF and guess what two months ago when I tried to pick-up my registration they maid me pay $187.00????

I am going to my car dealership tomorrow and I want that money back!!

One More Favor what does this means on my RETAIL INSTALLMENT CONTRACT:

Annual Percentage Rate: 9.84%
Finance Charge Amount : $8,268.52
Amount Financed: $24,934.28
Total Of Amount Of Payments: $ 33,202.80

how do you think they got that $8,268.52?

and also is it required for me to buy the Extended warranty and ,beacon etching coverage? beacon Gap Coverage?

I hope you can help me thanks again so much

mark54

today I was offered a Durango SLT for 26,800 (list 33,925). The lease terms were $5000 down, payment of $276 with a factor of .00051 with 15,000 miles. What do you think? Thanks for your help.

vwvw1

Hi, I'm am about to lease the new 06 330. Can you give me the residual and money factor for 3yr / 15k and 42 / 15k.

Thank you

vwvw1

IMO, I would not out $5000 down on a lease. Zero down is best

munchmouth

Car_man,

Thank you for your help!

I leased a new 2005 Infiniti G35 Sedan yesterday. Thanks to you, and everyone here, the deal turned out great. I will post the details on the Infiniti G35: prices paid forum later this week for those looking.

By the way Car_man, do you wear a cape, mask, and funny tights? j/k

Thanks!

skoontz

Thanks, Car_Man for the insight.

One other thing that is weird is that the dealer is pushing the "owner's choice" plan instead of conventional lease. They are saying that it is better because of the tax benefits, but something seems suspicious. Is there any reason to steer clear of the "owner's choice" option?

Thanks,
Sean

teffendi

I am looking to lease a 2005 RX330 with premium plus and navigation (but no entertainment system or premium sound package) in Houston Texas. They are offering a 48 month lease with 18,000 miles for $699 at Teir 2 credit. Appears high, is this the best I can do?? Please reply ASAP becasue the dealer wants to finish the deal buy tommorow.

trickydick

Car_Man,

You wrote: You're welcome TrickyDick. Answering all of these questions certainly is time consuming, thanks for noticing. Dealer invoice definitely sounds like a good deal to me on a 2005 Acura MDX. Let's calculate a sample lease payment on the truck that you are interested in for you and see what we come up with. According to my calculations, if you were to lease a 2005 Acura MDX Non-Touring without navigation or the rear entertainment system, but with running boards with an MSRP of $40,845 and a selling price of $36,837 through American Honda Finance Corp. in May for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $420. This payment assumes that you will pay your vehicle's security deposit and AHFC's $595 acquisition fee at signing and that the running boards can be residualized.

Can you please advise based on all of the above, but instead of the Non-Touring version, let me know what I can expect for the Acura MDX Touring with running boards, but without the DVD or navi. Thanks again!

TrickyDIck

newtoy1

Craig...By the description of your location, could I assume you are dealing in GR, MI? Either way, there is a dealer near Chicago named Motorwerks. You will be $2,500 over invoice on new(Costco program), my local GR dealer matched the price, due in the beginning of July. M35 Luxury - Journey, Tech, Chrome Wheels all on Crimson Roulette...Can't wait!! Based on my price, that seems to be a fair offer for a demo, keep in mind how the guys on this forum probably drove the demo :sick: just kidding.....best of luck and great choice!

ct1211

Thanks newtoy1!! Congrats to you! Actually I am in Detroit. There was orginally 2 dealers in Detroit but Fred Layery in Birmingham dropped the line (probably after all of the lien years) The only dealer left is Suburban Infiniti. I am going to look at that costco program again. I thought it told me Infiniti was not in the group. Thanks again!

mark54

Thanks, you're right. I got carried away by the low payment.

samosval

Car_man,
Thank you and keep up the great work!

samosval

tkcane

carman - thanks again. I am mow reading that GM is going to be releasing the new escalades in January 06, which makes me not want a 3 year lease. I know you mentioned the 59% residual for a 24 month lease, does that jump to 62% for 12,000 miles / yr. Seems to me it is going to cost me about $100 extra per month to go from a 36 month to 24 month lease. any input? thanks again

tk

ca_man

Frank :

Do you mind stating who your dealer is ? This is an incredible deal. Even with the cost of shipping the car, this is much better than Northen CA prices.

Thanks in advance !

petp

yup. i mean the 525 is a perfect car for me....im not in need for gobs of power (since i live in ny and we dont have many twisty scenic drives and such, and i rarely ever drive anyway)...BUT i dont think that its worth 600/mo.
i guess i'll just keep my fingers crossed and hope for a MF drop in the next few days.
thks for the help

bigdveedubgirl

Im a sales consultant and I am confused on something that can make a big difference in a deal that has be just completed.

In the Great State of Texas, you get a tax credit when you trade in a car. So for example price of car 20k trade in value 10k = tax paid on 10k only. What if the vehicle is a LEASED vehicle that is traded in? At the last store I worked for, we were always asked to ask the customer if the trade in was a lease vehicle, because we could not show the lease as the trade. We would buy the car that was to be traded and put the negative equity in the price of the car and then payoff the lease. Am I crazy?

I need to know an answer as soon as possible because we just did a deal and the car traded in is an operating lease and the customer got tax credits and I work for a brand that does not have a big profit margin at all and I hope we dont have a loss because of this.THANKS

tcg

I bought a 2006 330i (with premium pkg, sport pkg, and satellite prep) on Saturday for 12K/39mths. Here are the details of the purchase:

MSRP $42,620
Cap Cost: $42,000
Residual: 60% (residual is higher on the 325 models - around 63%)
Money Factor: .0022
$0 down - total due at signing $1400 which included fees and first months pymt.
Mthly payments are around $650 + tax

BMWF would only give us 7% because we are first time BMW customers (I have a beacon score over 740 so credit wasn't the issue). So, the sales manager leased us through Huntington with 5.8%.

What do you all think of my deal?

ae5555

Hello Car_man.

Can you please post the AHFS rates for June for the 2005 Acura TL WITH Navigation system for 36/12K Lease as soon as they become available?

I have been waiting to get this car for 2 months, hoping that there will be some kind of support for this car from Acura. Also, do you know when 2006's usually come in?

hpowders

I was figuring to pay around $650 a month if I leased the 330i.

globalbanker

I just leased a Volvo S40 for 39 months. Here is the breakdown:

28,375 sticker (Base Model + Climate + Premium Package)

X-Plan Pricing of 27,581
- Dealer Incentive for NOT using Volvo Car Finance (STRANGE) $2,500
- Volvo Loyalty Credit $1,000
- Dealership picking up my last lease payment ($313) + Disposition fee from VFNA ($385)

Payments are $341.21 w/ 15k miles per year and a drive away payment of $1,006.21 (first month +
"aquisition fee" of $595 + Title/Licence)

All in all -- I think I ended up with a pretty good deal. Why would volvo be asking dealers to NOT use VFNA?? The dealer told me it was because Volvo was getting hit hard on high residuals and that their portfolio was "full of s40's"

Money Factors w/ third party was .00204 w/ a residual of $14,977
vs VFNA's money factor of .00216 w/ a residual of $14,187

CarMan@Edmunds

Hi everyone. Most manufacturers' May lease programs were scheduled to expire at the close of business today, with a few exceptions. I have not seen anyone's June lease programs yet, but expect to within the next couple of days. If you have a specific question about a model or models' lease programs please post them in a day or two. In the meantime, I will answer any general questions about leasing that anyone has. Thanks.

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skoontz

Car_man,

Here is a general question....do you have any advice/insight on BMW's owner's choice program vis-a-vis conventional leasing?

Thanks,
skoontz

nyatl

Car_man I really appreciate you giving VALUABLE information especially on this leasing lingo. Here is a total breakdown of everything. Please tell me if this lease deal is a GO or steer clear!!!

msrp: $43,683///sale price: $39,146///48 months///15k miles
money factor: .00056 (this was lowered from .00146)///residual: 44%
taxes: 7%///doc. prep. fee $298///acquisition fee (GAP Ins.): $600
Tag,Title,GA warr. fee:$41
9 addt'l refundable security deposits: $4275 ($475 each)
Nonrefundable down payment: $1900--break down cosists of--$298 doc. fee +
$41 tag, title, GA warr. fee + $1561 nonrefundable cap cost

Total due at lease signing: $6175.00 (4275+1900)
Total monthly payment $469.99 which includes taxes, GAP ins.

frank310

Park Avenue BMW and Paul Miller BMW in NJ. Mine is on order as per BMW Owners Circle.

lisatex

Toyota Camry Solara SLE Convertible

Sales price $30,600
12K miles a year
$1,000 down

This would get my payments to $479/mth.

I am also still confused if I should buy or lease. Please help me! I would appreciate any advice you can offer.

ca_man

Thanks so much for the info. Which of these gave you the final deal ? Do I have your permission to quote your deal ?
Even with the cost of shipping from NJ to CA, this is the best deal I have seen hands down. Another forum advised me of another dealership in OR, I will call them first, before I venture out to the East Coast !

CarMan@Edmunds

Good question skoontz. BMW's Owner's Choice program is what is known in the industry as a balloon note program. Balloon notes are very similar to leases in that they offer consumers low monthly payments and the option to purchase their vehicles at the end of a specific period of time for a specific amount of money. The main difference between balloon notes and leases is that with leases the bank's name is on your vehicle's title while with balloon notes yours is. Balloon notes are much less popular than leases. They are most often used in states that have sales tax rules that make them more attractive than leases on in states like, New York, that have vicarious liability laws that expose banks to frivolous lawsuits if leased vehicles are involved in accidents. Manufacturers usually provide a similar level of support through their lease and balloon note programs, but this is not the case 100% of the time.

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CarMan@Edmunds

You're very welcome nyatl. That is a heck of a low money factor. It looks like you are being provided a reduction of .00010 for every additional deposit that you make. I would strongly consider making additional deposits on this truck as well if I was in the market for one. You are already tying up a ton of money with the multiple security deposits, why make a capitalized cost reduction as well? I always advise consumers against making cap cost reductions on leases.

The selling price that you were quoted looks reasonable to me as well. So you are doing fine from the standpoint of your vehicle's price and lease program. However, using the numbers that you provided in your post, I come up with a pre-tax monthly payment of only around $415 for your RX 330. I doubt that tax in your area amounts to over $50 per month, so something doesn't seem right.

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CarMan@Edmunds

Hi lisatex. I would be happy to give you my opinion on your deal, however I am going to need a little additional information from your first. This info includes the length of this lease, this car's full MSRP, and what state you are in. Also, Toyota is scheduled to publish its new June lease program sometime today. I am going to need a couple of days to get a feel for what its new program is like. Please feel free to check back with me late this week with the aforementioned information and I will tell you what I can about the deal that you were quoted.

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trickydick

Car-Man,

Will you go back and respond to those lease questions posed in May based on the June programs? I haven't made a deal yet so I would still like your feedback based on June numbers. Thanks.

TrickyDick

kingalls

Help. I need to lease another car for my lease on my 2002 S60 Volvo is up Aug 1st. Problem is, I want a nice car with a low payment. (I know don't we all) So my questions is.....What manufactures are offering the best prices or money factors for a lease at this time? I need a 4 dr sedan with a spacious back seat. Of course I want all the nice features too...cruise, power, leather et..

squire

Car Man...please help. I've always purchased my car outright and have never leased a vehicle. I'm debating on whether to purchase an Infiniti G35X or lease..I drive well under the 15K per year so that's not an issue. My question is can you negotiate a lease price and then determine how much cash I want to put down or is the sticker the "lease price". I'm afraid to ask the salesman, I know what my answer will be.

lisatex

Thanks for your quick reply. The sticker price for the car is $32,173. I live in Texas, and the lease term is 48 months. Do you highly suggest I wait a few days before I do anything until you get a feel for the June lease programs?

ajamo

Car man,
How does this look to you on the whole?

LEXUS GS430 with Mark Lev/Navig.

3YR ~ 12K per year

MSRP - $58,290
CAP COST - $55,990
MF - .000250

$1663 due at signing
929/mo. tax included

ckiggins

Car_man: do any other car companies (besides BMW) allow you to make additional security deposits in exchange for a lower MF? Specifically Nissan?