Lease Questions - Ask Here

CarMan@Edmunds

Welcome back Ken. I am glad that you are enjoying your truck. Let's take a look at the lease programs that are currently available on the vehicles that you are considering as replacements for your wife's car.

If you were to lease a 2005 Lexus RX330 AWD without navigation or the rear entertainment system through Lexus Financial Services in most of the country right now for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00235 and 57%, respectively.

If you were to lease a 2005 Lexus ES 330 without navigation through LFS right now for 36 months with 12,000 miles per year, its base lease money factor and residual value in most areas should be .00140 and 56%.

If you were to lease a 2006 Mercedes-Benz E350 Sedan through Mercedes-Benz Credit Corp. right now for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00235 and 62%, respectively. When negotiating your lease on this car, make sure to keep in mind that in August Mercedes is providing $1,500 bonus cash on leases of it through its captive finance company. This cash will help you to negotiate an attractive capitalized cost.

If you were to lease a 2006 Volvo XC90 2.5T AWD (I haven't seen any info for the lease program on the '06 T6 yet) through Volvo Finance right now for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00207 and 61%.

Last but not least, if you were to lease a 2006 BMW 525i through BMW Financial Services right now for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00220 and 62%, respectively.

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CarMan@Edmunds

Welcome newleasee. The two most important numbers to concentrate on when leasing are your vehicle's selling price and the lease money factor that is being used to calculate its monthly payment. These are the two main profit centers for dealers on leases. Always remember that the selling prices of leased vehicles can be negotiated just as if you were paying cash for or financing them. It is important to know the money factor that is being used to calculate your vehicle's monthly payment because this number basically represents the interest rate that you are being charged on your lease. In most areas, Lexus Financial Services' current base lease money factor for leases of a 2005 GX 470 is .00185 for leases of up to 4 years in length. If a money factor that is higher than this is being used to calculate your vehicle's monthly payment there is a good chance that the dealer that you are working with is marking-up Lexus' base money factor for this truck to add additional back-end profit to your deal.

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. Check them out and let me know if you have any other questions.

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CarMan@Edmunds

It definitely sounds as though this dealership pulled the old bait and switch on you, ruthie1. I would be more than happy to give you an idea of what sort of a lease payment you should expect to pay on this truck. However, in order for me to do so, I need you to provide me with its full MSRP (with the destination charge added in) and an approximate selling price. You can find the MSRP data right here at Edmunds.com by visiting the New Vehicle Pricing section of this site. You should be able to get an idea of how much you should pay for the MDX that you are interested in by visiting the following discussion: "Acura MDX: Prices Paid & Buying Experience".

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babydoc

Thanks Carman.
I thought it was a bit ridiculous. What's worse- when I called the dealer back to say that I was not going to pay MSRP, they told me that the lease program they advertised on their website was old and that the number he quoted me was wrong as well. The car would actually cost me 650 or so per month before taxes.
I nearly choked.
It was the front wheel drive 2.8T version.
I think I'll go with some BMWs or Lexuses.
Appreciate all the help. I will certainly ask for help again in the future as I narrow down my choices. If I get fed up enough, I may just buy the cars, rather than leasing. We are only leasing because of the tax breaks, but it may not be worth this hassle.
Thanks again.

bluebrian

Car man-

Can you tell me what the going lease residuals and money factors are on a 12k/yr, 36 and 48 mo. lease on the Toyota Sequoia (Limited 4wd) and the Lexus GX470? Also, just generally speaking is it better to pick up a lease on a 2005 or wait a few months for a 2006, lease deal-wise? Any help appreciated...

Thanks,
Brian

dl2005

Thanks for the info, Car_man. You're awesome! Just curious - is California one of the states where BMWFS charges a $625 lease acquisition fee?

Also, I asked my dealer if the .0027 money factor they offered me was marked up or if it was the same as what BMWFS was offering ... they told me it was the same rate as BMWFS offers! Unbelievable! I'm not sure whether I should continue to do business with them - or if I should go to a different dealer.

davidd3

Car_Man,

This is a re-post. When I asked before, you told me that it was too early and to check back again a few days later.

Could you let me know the details of BMWFS' AUGUST lease program for the 2006 BMW 330i? I am interested in a 3 year lease with 15,000 miles per year. I am wanting to know the pertinent money factor, residual, and acquisition fee for NY.

I ordered a car in July. At that time I locked in the July lease program (money factor of .0025, residual of 59%, and NY acquisition fee of $900), with an option on the lease program in effect at the time of delivery (which will be either August or September). I am therefore wanting to know how the August lease program compares to the July lease program.

Thanks.

David D

sofakingcool

Carman,

What is the MF and residual for an automatic (e-shift) 2005 Lexus IS 300 -- 3 yr./15000 miles a year lease and a 2 yr./15000 mile a year lease? Location is 48867 (MI). Thanks in advance.

robc21

Car-Man,

Thank you for your response. Here are the numbers:

$37,795.00 MSRP
$3,690.00 Options

Rob

sofakingcool

Car_man,

What are the MF and residual on an automatic 2005 C230 Sedan -- 3 yr./15000 mile a year lease and a 2 yr./15000 mile a year lease? Any lease specials available for this car? Location is 48867 (MI). Thanks in advance.

djocks

dl2005,

i would definately go to another dealer. When I leased my 2003 330i, for me there was no going to other makes. No interest in Audi, Acura Infiniti etc... What I did find to be very sucessful was going to a few different BMW dealerships and have them compete with each other, Would you believe here in Connecticut I was able to have a great Dealership (Countyline in Watertown) get me into a 330i for $25 less a month than another dealerships quote on a similar 325i.

Good Luck,
djocks

djocks

Car_Man,

Thanks so much or your post. you spend a lot of time doing this and it really helps a lot of people,

After looking at the numbers you gave, it really sounds like the number are very much towards the X5's

Is there any chance you could estimate the payments for an X5 3.0 with an MSRP of $50,570?

And an X5 4.4 with an MSRP of $58,495

Last question, are all options residualized or only some?

Thanks,
djocks

djocks

While we are at it.

What would a lease of a MB ML350 look like with an MSRP of $48,000?

and an Audi Allroad with an MSRP of $48,000

BTW, all these assumptions can be done under the terms of 0 down and 15K a year for 3 years.

Thanks again, djocks

vynom

I would like to know an approximate idea for a lease on this vehicle. I have looked up MSRP and decided on $33,400 being a very good number to buy this truck for. Could you give me some sample numbers for a 36month lease? Thanks again.

EDIT: Sorry I need 15K miles /year too.

djocks

Car_Man

Forget the Audi instead what would the numbers look this month on an Infiniti FX35 MSRP at 44,000.

Sorry about the requets. I will be getting a car probably this week as my Bimmer has to go back next month

Thanks,
dj

CarMan@Edmunds

Good morning rablaw. Kia's lease program is normally not very popular because the residual values of Kia are so low. Low residual values make vehicles fairly expensive to lease unless there is some huge money factor or cash support. I haven't seen the Sportage's August lease program yet. I will make some calls and see what I can find out for you. Please feel free to check back with me in a few days and I will let you know if I have been able to find anything out for you. Talk to you then.

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CarMan@Edmunds

Hi Dan. If you were to lease a 2005 Infiniti FX35 RWD through Infiniti Financial Services right now for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00159 and 60%, respectively. This truck's 39 month numbers are fairly similar at .00153 and 59%.

If you were to lease a 2005 Acura MDX through American Honda Finance Corp. right now for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00178 and 61%, respectively. This truck's 39 month lease program is definitely worse than its 36 month program.

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CarMan@Edmunds

Hello Steve. Wow another FX35 lease question. These things must be flying off of lots this month . You never mentioned the selling price or MSRP of the truck that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this truck's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to work up a sample lease payment on the FX35 that you are interested in for you if you let me know what these numbers are.

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CarMan@Edmunds

No problem Andy. I'm glad that I was able to help you out.

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CarMan@Edmunds

I think that I know why the lease payment that you calculated for the Highlander that you are interested in came out differently than the one that the dealer that you are working with quoted you, Andy. Toyota Financial Services has a different residualization policy for vehicle options than most other banks have. Most banks allow consumers to add the MSRPs of any factory options that their vehicle has to its base MSRP and then calculate its dollar residual value. TFS however places limits on what options can be residualized and caps on the amount of money that can be residualized for them. This makes leasing through it more expensive than other banks. A normal lease of the vehicle that you are interested in, a 2005 non-Limited Highlander AWD with an MSRP of $31,539 and a selling price of $28,276, would have a 36 month, 15,000 miles per year, zero down, pre-tax monthly payment of around $316.43. However, the strange residualization policy that TFS has will likely make this vehicle's monthly payment higher. Having said this, the payment that you were quoted $379 per month with $2,500 down sounds too high to me even after taking the way TFS calculates payments into account. You may want to shop around a little bit.

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CarMan@Edmunds

Don't worry about it, Fin. It happens all the time. Let's work up a sample lease payment on this truck and see what we come up with. According to my calculations, if you were to lease a 2005 Nissan Titan King Cab 4x4 SE with an MSRP of $31,570 and a selling price of $27,750 through Nissan Motor Acceptance Corp. right now for 36 months with 12,000 miles per year, its zero down, pre-tax monthly payment should be around $340.

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CarMan@Edmunds

Welcome amy8. Many consumers lease vehicles without putting any money down. I would be more than happy to calculate a zero down lease payment on the truck that you are interested in for you using Honda's actual lease program. In order for me to do so, I need you to provide me with its full MSRP (with the destination charge added in) and selling price. It is extremely important for you as a consumer to know your vehicle's selling price anyhow. The selling prices of leased vehicles are negotiable, just as if you were paying cash for them. Without this number, you don't know how much of a discount you are being given.

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CarMan@Edmunds

Hi themush1326. On leased vehicles, at lease signing consumers typically have to pay their vehicle's first month's payment, a security deposit equivalent to that payment rounded up to the nearest $25 or $50 increment, their bank's lease acquisition fee (AHFC charges $595 in most states), any down payment that they choose to make, and any required state taxes or fees. It is important to remember that consumers can lease vehicles without making any sort of down payment. 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 S2000 would be exactly the same, regardless of whether you had put $3,500 down, or had made absolutely no down payment at all.

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CarMan@Edmunds

Hi cagorm. I would be more than happy to give you an idea of what this truck's lease program is currently like. However in order for me to do so I need you to let me know how long you want to lease it for and how many miles per year you need to be able to drive it.

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CarMan@Edmunds

You're welcome cagorm. I would be more than happy to give you an idea of what this truck's lease program is currently like. However in order for me to do so I need you to let me know how long you want to lease it for and how many miles per year you need to be able to drive it.

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CarMan@Edmunds

No problem Andi. Is the price that you mentioned in your post this car's selling price or MSRP? It's important to know both of these numbers when leasing. It is very difficult for me to give you my opinion on this deal without both of these numbers because they are necessary to calculate your vehicle's monthly payment and they enable me to see how much of a discount you are being given.

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CarMan@Edmunds

You're welcome babydoc. I'll talk to you when you decide what other cars you are interested in.

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CarMan@Edmunds

Hello Brian. I would be happy to give you an idea of what the lease program is like on the Lexus model that you are interested in. However, Toyota's lease program often varies depending upon which one of its twelve regions one is in. As a result, I need to know what state you live in to give you an idea of what the Sequoia's lease program is currently like. If you were to lease a 2005 Lexus GX 470 without the navigation or rear entertainment systems in most areas right now for 36 months with 12,000 miles per, its base lease money factor and residual value should be .00185 and 58%, respectively. The numbers for an otherwise identical 48 month lease should be .00185 and 49%. This is a pretty attractive lease program. If I was in the market for a GX, I personally would lease one now rather than wait for the introduction of the 2006 model which will likely not have any sort of lease support available on it.

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CarMan@Edmunds

You're very welcome dl2005. I believe that New York is the only state that BMW FS charges an acquisition fee of more than $625 in and that may be changing in the future with the new bill that recently passed eliminating vicarious liability lawsuits.

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CarMan@Edmunds

Hi again David D. I have seen the lease program for the model that you are interested in and would be more than happy to help you out. If you were to lease a 2006 BMW 330i through BMW Financial Services for 36 months with 15,000 miles per year, its base lease money factor and residual value should currently be .00250 and 60%, respectively. Right now, BMW FS charges a lease acquisition fee of $900 in New York. As I mentioned in my previous post, I would not be surprised if BMW FS dropped its NY acquisition fee to its normal national fee of $625 because a bill recently passed that eliminates the vicarious liability lawsuits that were causing banks' to raise their New York acquisition fees.

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CarMan@Edmunds

Here is the information that you are looking for sofakingcool. If you were to lease a 2005 Lexus IS 300 e-shift through Lexus Financial Services in most of the country right now for 2 years with 15,000 miles per, its base lease money factor and residual value should be .00110 and 57%, respectively. The numbers for an otherwise identical 36 month lease should be .00110 and 51%.

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dhamilton

Car-Man
Could you please give me MF, and residual for
Infiniti FX 35 rwd touring package only 12/36 [unless 39 makes more sense]
Acura MDX premium [base model] 12/36 [unless 39 makes more sense]
Thanks D

dhamilton

Sorry Car-Man
I got up this morning and didn't look back far enough. Please excuse my impatiance.
I've noticed people in past posts trying to give thanks by offering ice cream or something. Here in Houston Texas we have Bue Bell ice cream. It washes down the great mexican food here, which in turn washes down all they great Texas brewed beer. All that to say, If your ever in Houston look a brotha up.

dhamilton

Car-Man
According to the calculator on the lease guide web sit I have
Infiniti FX 35 MSRP $38,610
Cap cost $35,750
O down pre-tax payment $494.63

That seems kind of high. Do you mind running that thrue your calculator and see what comes up? D

PS Do you like Shiner Bock?

tiger93

Car_man - can you post the current MF and Residual % for the B9 Tribeca, 7 Passenger Limited, for the 3 year/15k mile lease? Also, what is the pre-paid cost of extra miles?

Thanks a bunch!

themush1326

Thanks CarMan

Can you tell me the payment on that S200 lease with no money down plus how much in fee and how much in tax(for NJ).

Also with less then teir one but very good credit how much would my payment go up?

Also any advice on CPO? Are they woth the heft premium S2000 especially'

davidd3

Thanks Car_Man.

So the lease program for the 2006 330i got somewhat better in August as compared to July. The money factor stayed the same (.0025) while the resdidual went up (from 59% to 60%).

Somehow my salesperson told me that the August lease program is not in my favor. He said that the money factor went up while the residual stayed the same. I have already sent a message to him asking him to double check.

David D

cagorm

Thanks CarMan. I am looking at a 3 year/36k lease.

mwhdev

Do these lease rate also apply to a G35x? Thanks!

birdbird

Hi Car_man,

I saw the lease price you worked out for steve777 and wonder if you could do the same for the 2005 Acura RL based on what you know about the 2,500.00 dealer cash that is availalble. 36 months with 12,000 miles per year, msrp 49,100.00?, selling price of $?, zero down, sales tax included in payment (6% I believe here in our state?) or without it if that is preferred. By the way, it seems the dealers are not getting in any more 2005 RLs. Does that mean the 2006s will be in soon and will the lease on those be more expensive?

Thanks for your wonderful help.

dhamilton

birbird
It will be impossable to work out a payment without knowing what the cap cost is. [Actual price you are paying for the car] If you go to Acura RL prices paid and buying experience part of this website you will get an idea of what others are paying. I think you'll find out that they should be going for pretty close to invoice about now. It's an awesome car.
As far as the 2006 being more to lease, it's hard to say. There will be a higher residual value because it is a newer model, but you probably won't be able to get pricing close to invoice like you can on the 05 for quite a while. In other words, it could be a toss-up.

andi4

Hi Car Man,
Thanks again for your help. It is amazing how patient you are with yet another novice! The selling price for the new Jetta 2.5 L package one car with manual transmission is $22,505. According to Edumunds, the MSRP is $22,965, Invoice is $21,184 and TMV is $21,981. I am in the initial conversations with the car salesman and will be doing this deal via fax and phone. I told him I did not want to have any down payment..he said he is going to work the figures with the first months' payment to be payed up front. Since I am buying it in AL, he said I won't have a use tax or titling fees to pay since I will be registering it in IN. Would the only other tax be the state tax?..he didn't mention that. So I guess "out the door" would not apply to me in any way since those taxes come later??Please tell me if all of this sounds accurate and what a reasonable monthly payment including taxes would be if I don't put anything down, but pay first month's payment up front. I have heard it is a good idea to negotiate with a salesman as if you were buying the car, then ask him what it would be to lease...is this accuarate? I think this salesman may think he is in clear working with a "young lady" as he calls me with no experience doing this. Little does he know, I have you on my side Thanks so much again Car Man..I'd really be in trouble without you and this website!

Andi

jasonhersh

Car_man, thank you very much for the great info...she decided on either the Honda or Acura, so I won't waste your time with the trailblazer. I went over the weekend and was quoted higher on the Pilot, I'm curious how much other people in the forum are paying for this car, Pilot EX-L. I've been pretty consistently quoted $369 w/ $1500 inceptions (vs. 305 and 0 down)...just curious.

Thanks again for this great service Car_man.

hrao

ALG posted a new system of ratings for Vehicle Residuals on their Site.
ALG Star Ratings

amy8

I am wanting to lease a 2005 Honda Pilot EX-L (36 months, 12,000 miles per year). My husband is clueless (admittedly) and uninterested in the car buying/leasing game. I am on my own. I came here for help. Here is my information:
We currently owe $9000 on my loaded 2002 Ford Taurus (36,000 miles, excellent condition). This is the offer we received from one of the local Honda dealerships:
$32,865 list price
$9,665 discount plus trade-in
$23,200 difference
$32,000 Total for financing
0 down
$465 monthly payment without tag and tax OR $493 with tag added into payment
I am taking my car into the competing dealership tomorrow morning to see what they offer. What do you think? Should I wait a few months and pay down my current car? Will the car rates go down around Christmas? Please help! Thanks!!! :confuse:

vynom

Carman, I apologize for reposting, but I can't seem to find your reply. I would like to know a sample lease for an 05 Murano SL AWD with a selling price of 33,400 and 15K miles/year. Thank you.

dhamilton

Car-Man
Thank you for working so hard for us. I have a suggestion that would cut your work load in half. Please do something about the deplorable lease calculator on this website. Putting in my lease numbers it is spitting out a ridiculous $1,100.plus per month. The problem is there seems to be no other reliable one on the web. I've tried but they are all as much as $100.00 and as little as $40.00 different for the exact same numbers.
Excuse me for venting. :mad:

m_42

Dear car_man,

I'm in a similar situation as ibs, as I too gambled and waited until August, in the hopes for better deals. Do you consider the lease incentive that Toyota offers for the Sienna LE (south FL region) (48 mo, zero down, $359 per month) a good or just a so-so deal? Are there any special deals for the Odyssee or (Grand) Caravan that you know off??

Thanks,

m_42

nappyb

Thanks for the help in advance. Here is what I have going on and I need some help because the sales guy told me that I could still work his manager some more.

M35 Sport Base model

MSRP - $43, 440

Price - 41,900

MF - .00204

Residual - 61%

Can you help me with some figures for 15k miles and 20k miles. Thanks!

The initial 0 down the have me for was $615/months for 39 months

If I add the journey package (MSRP $1700) it jumps to $645.

Manager said jumping to 20k miles would add about $20 to monthly.

ibs

Actually, its a fairly easy spreadsheet you can create on your own. You simply need to recall that you total payment contains both monthly depreciation and monthly interest. Here's what you need:

n = number of months
x = Adjusted Capitalized Cost (Sales price less any downpayment)
y = Residual Value (MSRP * Residual %)
z = Money Factor

Depreciation is Calulated as follows: (x-y)/n

Interest is calculated as follows: (x+y)*z

Add both of these figures to calculate your total pre-tax monthly payment.