Lease Questions - Ask Here

CarMan@Edmunds

Sounds good, scottinky. I look forward to hearing how everything turns out.

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CarMan@Edmunds

Hey hpowders. Even though you locked in BMW's June lease program on this car, you should be able to take advantage of its new July lease program when if your ordered vehicle arrives at the dealer this month if the new program is more attractive. Speak with your salesperson to make sure that they will be willing to do this for you.

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CarMan@Edmunds

Greetings Sara. Every bank has its own process for turning in leased vehicles at the end of their terms. You need to contact Bank One directly to find out what its lease turn in process is like. Most likely you will have to get your leased vehicle inspected by the company that Bank One uses to inspect vehicles at lease-end and then turn it in at whatever location they specify, probably a local dealership. Keep in mind though that even though you are turning your vehicle in now, if you have five months remaining on your lease you will still have to pay Bank One your final five monthly payments. You can always keep your vehicle for the five months since you have to pay for them anyhow. I suspect that you will end up owing money for both excess wear and tear and excess mileage. You will have to speak with a Bank One representative directly to see how long you have to make these payment. If you how onto your leased vehicle for a couple of months, you can use that time to save up for these penalties.

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CarMan@Edmunds

Hi kidsdad. You're right, rumor has it (is it still a rumor when everyone knows that it is going to happen? ) that DaimlerChrysler will introduce an employee purchase program that is similar to the one that General Motors ran in June on July 6th. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment. Once you have checked out these articles, stop back in this discussion and I would be more than happy to answer any questions that you have on leasing in general or specific questions about leasing a Jeep in July.

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bonfriedman

What is the procedure if I want to relocate to Las Vegas with my leased car. Can I just continue paying it until I finish the lease contract? Also, after I finish my lease can I return the car over to a Honda dealer in Las Vegas and get a new lease from there or I have to come back to New York to return it? Do I have to pay extra for moving to a different state?

hpowders

Thanks for your advice Car_man.
hpowders

jeeplover1

Thanks Car_man. This was our first excursion into the leasing world and we blew it when it came to allowed mileage. I guess I was hoping that the Jeep dealer and the bank might have an understanding that would allow them to pay less than I would to purchase at lease end because we would be buying another car from them. But your right the amount I would have to pay the bank over what the truck will be valued at for purchase by the dealer is probably $3000 and the amount I would have to pay in penalties to the bank just to turn it in is $8000. Very hard leasing lesson to learn...Commuting in Los Angeles does not lend itself to leases. We've got a 1981 Jeep that we keep around, maybe we'll add this 2000 to the spare car side garage...

jeeplover1

Thanks Dennis, it was a lease that allowed 60,000 miles and I have 116,000 miles. This was our first lease and we originally thought we'd buy out of the lease early on... we didn't and now the Jeep will end up costing us a lot more than if we had negotiated purchasing it upfront...Commuting long distances in Los Angeles doesn't lend itself to the lease mileage limits...I've learned my painful lesson...
Thanks for clarifying what I knew in my heart...
jeeplover1

pipesaez

Car_man,

I have the following numbers for the FX 35 based on a 39 month lease:
Residual Value: 61%
Money Factor: .00190

Are these number still current for July?

Thanks and have a happy 4th!

shutd0wn

Hello,
I have a 2002 Lexus IS300 with 71000 (still under certified pre-owned warranty until 100K) which I'm making $500mo payments for. I have a little under 3yr's left to pay the vehicle off. The amount I still owe is approximately $16,500. Add to the fact that I just put in new tires, and a clutch (~$1500). It seems it may also requeire replacing the struts which is an additional ($500).

Now the question is.... I'd like to take advantge of the Mercedes summer drive which is a C230 Kompressor sedan lease at $329mo. I can roll in all the downpayment and charges into the lease, which would take my monthly price to $~429. Would it be prudent to trade in my IS300 and save ~$100mo on the newer vehicle?

This would be the second vehicle in my household under a 39mo lease. The only reason I am looking into getting a lease versus keeping my IS300 is that the new IS300 is comming out soon and I assume that the value of the IS300 will drop significantly.

Please respond with feedback and comments as soon as possible.http://a332.g.akamai.net/f/332/936/12h/www.edmunds.com/media/townhall/webxicons/e- motorcons/emo_shades.gif
shades

bp714

Hello Car-Man,,

Thanks again for providing the June numbers (Res 61%,MF .00211).
I locked that rate (or better) until my car arrives.
Are the IFS residual and MF different this month?
And is Infiniti offering any incentives yet?
My car is due in late July/early August and I'm always looking for a better deal.

Thanks!

bp

sofakingcool

Carman,

Please supply me with the residual and MF for the following vehicles that I am considering leasing so I can calculate a projected lease payment:

2005 Lexus IS 300
2005 Acura TSX (both with and without Navi)
2005 Audi A4 (with Ultrasport package)

36 or 48 month
15,000 miles/yr
Location is: 48867 (Michigan)

Hope that is all the info you need. Do you forsee any current or future lease program incentives from these manufacturers? Thanks in advance.

CarMan@Edmunds

Hi bonfriedman. You are free to move anywhere in the Continental U.S. with your leased vehicle. Other than notifying American Honda Finance Corp, or whichever bank you are leasing your car through of your new address, you shouldn't have to do anything different. When your lease is over, you will be able to arrange to have AHFC send an independent inspector to look it over and then return it to any local Honda dealer.

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CarMan@Edmunds

You're very welcome hpowders.

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CarMan@Edmunds

No problem jeeplover1.

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CarMan@Edmunds

Hi pipesaez. Infiniti's June lease program is scheduled to run through July 5th. I suspect that I will have an opportunity to take a look at its new July numbers later this week. Please feel free to post a reminder in this discussion for me then and I will happy to fill you in on what I have been able to find out about the July program.

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CarMan@Edmunds

Hello shades. I assume that you are financing, not leasing, your Lexus IS 300. If you really want something new and are afraid that your car will drop in value when the redesigned version hits dealers I can understand your desire to lease a new Mercedes-Benz C240. If you decide to trade your Lexus into the Mercedes dealer that you get your new car from, it would be in your best interest to have them cut you a check for the equity that you have in your car rather than using the proceeds from it as a capitalized cost reduction on your new lease. 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 your new Mercedes would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all.

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CarMan@Edmunds

You're welcome bp. Infiniti's June lease program is scheduled to run through July 5th. I suspect that I will have an opportunity to take a look at its new July numbers later this week. Please feel free to post a reminder in this discussion for me then and I will happy to fill you in on what I have been able to find out about the July program.

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CarMan@Edmunds

Hello sofakingcool. I have not seen the new July lease programs for the cars that you are interested in yet. Most of their June lease programs were scheduled to run through July 5th. I would be more than happy to give you an idea of what their new July programs are like if you post a reminder in this discussion for me late this week. Talk to you than.

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mvs1

jeeplover1, have you had a chance to verify the value of your jeep? Terry over in the real world trade-in values Forum could help you with this.

It seems like your speculating on what you will owe as opposed to getting hard numbers and seeing if a trade-in and new purchase would work out for you. If what you say is true and the the difference between the payoff and trade in value is $3k, then current rebates on a Jeep or even another manufacturers vehicle that your interested in could potentially reduce that figure.

Your in a tough spot, but others have been in similar.

g8rgrl

Hello. My lender, Chevy Chase Bank, does not provide the option of a pre-inspection before I turn in my leased Acura. I am planning to pay my mechanic to inspect the car as well as photgraph the automobile prior to turn in - but I would like to know what else I can do to protect myself against unwarranted wear and tear charges (and is there a guide for 'normal wear and tear')? My car is 12K under on the lease mileage and the car is in good condition - but I worry about a large bill based on experiences from others.

dwynne

I would get someone like Magoo's or Inspection Solution to do this. It should run about $100-125 and will include a complete report with pictures (but feel free to take some for yourself).

http://www.magoos-inc.com/
http://www.inspectionsolution.com/

One thing folks forget is that the tires must still have decent tread on them or they will charge you for new ones (usually at a high price). You can pick up a tread depth gauge and check them yourself, or this should be part of the paid inspection. Most lease banks call for a minimum of 1/8" (3mm) tread remaining on all four tires when measured and the lowest tread depth on each tire.

A turn in w/o inspection is just "not fair" and marks the lease bank as one to avoid in the future.

Dennis

dwynne

I assume you are leasing with AHFS? You can turn the car into any Honda dealer, so no need to worry there.

The only problem I see is that you are moving from a tax up front state (NY) to a tax on the payment state (NV). Normally, if your base payment in Vegas was $300 a month sales tax (varies by county) would be added to that each month.

It is POSSIBLE that when you move Honda Finance will start adding tax to your payment - and you either already paid the NY tax up front or it is rolled into the lease cap cost (and thus your payments). Call their toll free support number and ask about this - I am sure there is some paperwork they/you can complete showing you paid tax on the car in NY so none is due in NV.

From this link:

http://www.hondafinancialservices.com/cust_service/cs_contact_info_results.asp?page=bpn

it looks like the NY number is: 800-457-9929

Dennis

mikekx

Hi Car_man! I'm looking at a 2006 325 today with hopes for a lease and would really appreciate the July numbers and any incentives if available. Thanks!!

g8rgrl

Thank you very much. I agree, Chevy Chase Bank has proven themselves to be a less-than-satisfactory lender - in many areas beyond denying a pre-inspection opportunity. I'm buying my next car so I won't have to face these issues again in the future! Thanks again.

crj1

Automotive news:

Everyone can be a General Motors employee again. Coming off a record sales month in June, GM today said it will extend its "Employee Discount for Everyone" incentive program until Aug. 1, offering employee pricing levels on most 2005 vehicles,

davidd3

I live in NY and I am interested in leasing a 2006 BMW 325i or 330i for 3 years with 15,000 miles per year.

For these models could someone please let me know BMWFS' current (July) base money factor, residual percentage, and base acquisition fee for a NY lease? I would also appreciate a rundown on how much dealers are allowed to markup the money factor and acquisition fee. If the dealer does markup one or the other, I suppose that it is discretionary and therefore negotiable. Please confirm. Are dealer markups common or uncommon? For dealers that do markups, is it realistic to get them to drop it or should I be seeking a reduction instead? Is there a base document fee with a BMWFS lease or is that a discretionary dealer add on? If there is a document fee, should I be seeking a waiver or a reduction?

Is the current leasing program better on one or the other model, the 325 or the 330? A little extra help on the 330 would be nice to make it more affordable.

Do I understand correctly that the MF would be increased if I request a waiver of the security deposit? If so, how much of an increase would it be and is this another place where the dealer is allowed to take a discretionary mark up? Is it basically a wash (interest I'd earn on the waived security deposit = the extra money I'd have to pay on my lease on account of the higher MF), or would I be better off to make the security deposit in order to keep the base MF?

Is the NY acquistion fee waivable, and if so, at what cost? A higher MF? If so, how much higher and can the dealer mark it up even more? Would it be better to capitalize the acquisition fee at the base MF rather than have it waived for a higher MF?

Does BMWFS allow for multiple security deposits as a way to reduce the MF, and if so, how much of an decrease would there be and would it be a wise investment (better than money in the bank - a risk free way of lowering the monthly payment on a lease)?

If I need more than 15,000 miles per year (say 20,000), how does it work? Do they work off of their 36/45 program? Is there a certain base charge per mile that gets added to the capitalized cost? How much does the residual drop? Is this another area where the dealer can profit?

If the situation may still be such that BMWFS lease programs for the new 3s are totally unsupported by BMW, would I be well advised to explore thrid party bank leasing? If I got a better deal from a third party, might BMWFS be inclined to match it or are they rigid about sticking to their current programs? Do BMW dealers deal exclusively with BMWFS or do they also deal directly with third party banks for situations where BMWFS numbers are too high? Might I be able to get my BMW dealer to quote leasing numbers from third party banks for me to compare against BMWFS?

Sorry for so many questions, but any useful information and helpful guidance would be highly appreciated.

pelequero

I'm on Long Island and looking to take a balloon loan out on a 2005 Honda S2000. I realize I pay more in taxes, but I need the title to the car. Can you give me residuals and MF's for 36/12,000 and 39/12,000. Is there anything I should be doing differently with a balloon calculation than a lease calculation (other than the tax).

galant00

hi carman. i want to lease a chevy avalanche 4x4.. sticker price 39,120 and employee price of 30,236.45.. Do I still get the 3,000 cash back?? if so i have not deducted that from the price of the truck... if not that's the price.. how much would a lease be for 36 months and 12k per year.. and lastly the 2005 cadillac cts sticker 36,995 and employee price of 32,925 for 36 months and 12k per year if i wanted to lease this car instead of the chevy.. thanks in advance

galant00

sorry carman this is my 3rd choice.. 2005 GMC envoy sticker 37, 755 and employee price of 30,612 how much would payment be for a lease 36 months and 12k per year.. i just want to see which is the best deal.. thanks

testykaren

Carman:

I have a 2006 ML 350 on order. The dealer would not lock in the rates for the lease on the deal and now that the car is almost here they have informed me that the MF has stayed the same but they claim the residual has dropped. Can you tell me the MB Tier ONe rate for this car for a lease- what is the MOney factor and residual for 39K miles, 39 months, and please provide the same for Hann Financial Services as well. Time is of the essence. K.

cajnboy

Thanks Car_Man for the info. I think I will just sit tight for bit in hopes of something better coming along.

jacksdad

Hi Carman,

I'm looking at a 05 Accord Coupe with V6, Navi, 6spd manual lease for 3 yrs, 36,000 miles in New England. The MSRP is $29,315, selling price is 26,615. Residual is quoted at 54% and payments with 2000 down are 322/month. The dealer quoted a money factor of .00122 (roughly 2.9%?)

I think from looking at the other posts, the selling price should be closer to 24,500. Also, the car has 1500+ miles on it, they didn't really know who drove it so many miles!?

Can you confirm the money factor, monthly payment and if possible, whether the selling price is reasonable.

Thank you

doody

Hi Car Man,

Can you help me with the residual and M/F for a 2006 Audi A8?

What would the M/F be if I do not wish to put down a security deposit?

I have an MSRP of $76,350 and a selling price of $75,000 in NY.
Looking for 12k/year for 3 years.

Thanks for your help!

N.

krochelli

Carman,

Second lease that you can hopefully help me out on!

Can I get residual/MFs for Civic 2 door VP and LX, 3yr/36k miles. Does Honda have a 10k mile program btw? I am in CA btw.

Thanks!

Keith

cgray

To make a long story short I'm afraid I fell for a "bait and switch" on a 2005 Nissan Quest lease deal today. I have never leased before and had my two children with me (big mistake). I negotiated the purchase price (not including my trade in of a 1995 Jeep Grand Cherokee) and the salesman told me that he used that price as the base price for the lease before my trade in. It's totally my fault and I know it that I didn't closely check the numbers as I was signing and right after I signed, I realized that he didn't use that price at all -- he put a price in that was $2200 higher as the base price before my trade in which resulted in a monthly payments over $150/month more than what I thought they were going to be. This just happened today in Georgia. Is there any recourse I have? Does Georgia have a 24 or 48 hour period where I can get out of this?!! I'm kicking myself because I did all my homework ahead of time and let myself get distracted by my kids and hurried by the situation. Any help would be very much appreciated. thank you

cgray

Carman: Forgot to include the specifics of the deal which is giving me a sinking feeling in the pit of my stomach the more I think about it: Gross Cap Cost - $36,370.15; Cap Cost Reduction (including 1st month lease payment) - 2,063.01; Adjusted Cap Cost - 34,307.14; Residual Value (16,123.80) for a Nissan Quest SE with DVD, Navigation System, Leather Seat package, XM Radio, Sun roof. The MSRP was $38,390. The lease term is 48 months at 12k miles/year. Monthly payment - $499.76 Is there anything you can suggest?

thedriver

Carman,

I'm looking at a 2006 S40 T5 - one of the first from the factory. I'm interested in a three year lease, with mileage of 10k/year. Do you have the July numbers for this car yet?

Thanks.

CarMan@Edmunds

Good morning everyone. I just wanted to start things off today by posting a quick note to let you all know that most manufacturers are scheduled to introduce their new July lease programs today, July 6th. I have not had an opportunity to take a look at most manufacturers' new programs yet, but I should be able to within the next couple of days. For now, I will continue to answer any general questions about leasing and questions about the programs that I have seen. If I haven't seen the new lease program for the automaker that you are asking about I will ask you to post a reminder for me in a few days.

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CarMan@Edmunds

Hello g8rgrl. Taking pictures of your car prior to turning it in to the bank that you are leasing through is an excellent way to protect yourself against any unusual excess wear and tear charges. It wouldn't hurt to take a picture or two of your car with a current newspaper in the frame just to prove that they were actually taken when you claim they were. While it probably isn't necessary, having your mechanic inspect your vehicle and provide you a report will also help to protect you against unwarranted excess wear and tear charges. I don't know if Chevy Chase bank will do so, but many banks will provide their lessees with an inspection card that details what they consider to be excess wear and tear if they request one.

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CarMan@Edmunds

Hi mikekx. BMW is one of the few manufacturers that came out with its new July incentives and lease programs on July 1st rather than the 6th, so I can help you out with info on this car's lease program. You never mentioned how long you want to lease this car for or how many miles per year you need to be able to drive it, so for now I will assume that you are interested in a 3 year lease with 12,000 miles per. If you were to lease a 2006 BMW 325i through BMW Financial Services right now for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00250 and 63%, respectively.

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CarMan@Edmunds

Thanks for the info, crj1. On an interesting, related notw, DaimlerChrysler and supposedly Ford have decided to match General Motors' Employee Pricing offer this month. It is an excellent time to purchase or lease a new vehicle.

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CarMan@Edmunds

Hi davidd3. I just typed the longest response in the world to you and as I was about to hit post, I had a blackout :surprise: :mad: . OK, here we go again. I'll type in shorthand this time. Current BMW FS Program for 3 years / 15K: '06 325i - .00250 / 61%, '06 330i: .00250 / 59%. You are required to pay a security deposit equivalent to your car's monthly payment rounded up to the nearest $50 increment to get theses factors. BMW FS will waive its security deposit requirement in exchange for a slight increase in the money factor, I believe .00010. You can buy down your vehicle's money factor by making up to 5 additional deposits with each one reducing your vehicle's factor by .00005, for a maximum reduction of .00025. In New York, BMW FS' base lease acquisition fee is currently $900. BMW dealers frequently try to mark-up vehicles factors and acquisition fees, but if you know the base figures you should be able to make sure that there is no mark-up on your deal, or make sure that you go with a dealer that does not mark them up. 15,000 miles per year is the maximum mileage allowance that BMW FS publishes residual values for. If you have to drive more than this, you will have to purchase additional miles on a per-mile basis. It is usually less expensive to do so at lease signing than it is to wait until lease-end and have to pay an excess mileage penalty. I am not sure what BMW FS charges for each additional mile purchased at signing, but it is probably around $.20.

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CarMan@Edmunds

Hi pelequero. Honda's special lease on the 2005 S2000 just expired on July 5th. I have not had an opportunity to take a look at its new July lease program for this car yet. Please feel free to check back with me in a few days and I would be more than happy to fill you in on what I have been able to find out about the new program. Talk to you then.

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CarMan@Edmunds

Hi galant00. Unfortunately, GM's normal customer cash incentives cannot be used on vehicles that are leased through GMAC. GM often has specific, lesser, lease cash incentives on vehicles. Its lease cash often varies by region. If you let me know what state you are in, I can try to find out what the exact July lease programs are like for the trucks that you are interested in.

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CarMan@Edmunds

Hey testykaren. I would not be surprised if what your dealer told you is correct. Mercedes-Benz is still not providing any sort of lease support on the redesigned 2006 M-Class and it just published new third quarter residual values for the vehicles that it leases. Vehicles' residual values often drop a little at the beginning of a new quarter. An identical money factor with a lower residual value would make the truck that you are in a little more expensive to lease this month than last. I have not seen all of the specifics of Mercedes' new lease program yet, but I should have a good idea of what it is like in a day or two. Please feel free to post a reminder for me later on this week and I will fill you in on what I have been able to find out for you. Talk to you soon.

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CarMan@Edmunds

No problem cajnboy.

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CarMan@Edmunds

Greetings jacksdad. I believe that Honda is scheduled to publish a new lease program today. As a result, I have not had an opportunity to take a look at its new July lease program yet. Please post a reminder in this discussion for me in a couple of days and I will be more than happy to fill you in on what I have been able to find out about the Honda Accord's new July lease program. Talk to you then.

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CarMan@Edmunds

Hi doody. Interesting user id. I believe that Audi is scheduled to publish a new lease program today. As a result, I have not had an opportunity to take a look at its new July lease program yet. Please post a reminder in this discussion for me in a couple of days and I will be more than happy to fill you in on what I have been able to find out about this car's new July lease program. Talk to you soon.

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CarMan@Edmunds

Hello Keith. I believe that Honda is scheduled to publish a new lease program today. As a result, I have not had an opportunity to take a look at its new July lease program yet. Please post a reminder in this discussion for me in a couple of days and I will be more than happy to fill you in on what I have been able to find out about the Honda Civic's new July lease program. Talk to you then.

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