Lease Questions - Ask Here

koberry

Hi Carman:

Thanks for the detail on all the proposed leases. If we elect to lease for 10k miles per year instead of 12k miles, is it generally safe to expect that we can bump the residual value by 2%?

Best,

Ken

CarMan@Edmunds

You're welcome Rob. 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 Volkswagen Touareg V6 with an MSRP of $41,485 and a selling price of $36,500 through VW Credit right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $426.

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CarMan@Edmunds

Hey sofakingcool. Mercedes-Benz is no longer providing a special lease program on the 2005 Mercedes-Benz C230 Sedan. It replaced the special program that it was running on it in July with $2,000 dealer cash in the month of August. This means that if you were to lease one through Mercedes-Benz Credit right now, you would have to use its standard lease program. Mercedes-Benz Credit's current base lease money factor for consumers who qualify for its top credit tier and residual value for a 2 year, 15,000 miles per lease of this car right now should be around .00390 and 64%. The numbers for an otherwise identical 3 year lease should be .00330 and 56%.

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CarMan@Edmunds

You're very welcome djocks. I would be happy to calculate a sample lease payment on the truck that you are interested in for you, however I need an approximate selling price for it first. Always remember that the selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. You may be able to get an idea of how much you should pay for the X5 that you are interested in right now by visiting the following discussion: "BMW X5: Prices Paid & Buying Experience". In answer to your second question, I believe that BMW Financial Services allows the residualization of all factory installed options.

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P.S. I will need approximate selling prices for the M-Class and allroad as well to work up payments on them for you.

CarMan@Edmunds

Hi vynom. You never mentioned the selling price of the truck that you are interested in leasing. This is an important number 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 the price of the truck that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to work up a sample lease payment on the Murano that you are interested in for you if you let me know what its selling price is. You may be able to get an idea of how much you should pay for this truck by visiting the following discussion: "Nissan Murano: Prices Paid & Buying Experience".

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CarMan@Edmunds

Here's the information that you're looking for, dhamilton. 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. If you were to lease a base 2005 Acura MDX through American Honda Finance Corp. right now for 3 years with 12,000 miles per, its base factor and residual should be .00178 and 61%.

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P.S. Never mind. I thought that your request sounded familiar. I guess that I'll leave this info here just in case someone else is interested in the same models.

CarMan@Edmunds

Dhamilton, let's work up a lease payment for you and see what we come up with. According to my calculations, if you were to lease a 2005 Infiniti FX35 RWD with an MSRP of $38,610 and a selling price of $35,750 through Infiniti Financial Services right now for 36 months with 12,000 miles per year, its zero down, pre-tax monthly payment should be around $444.

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CarMan@Edmunds

Hello tiger93. Let's take a look at the lease program for the vehicle that you are interested in. According to the latest information that I have seen, if you were to lease a 2006 Subaru B9 Tribeca, 7 Passenger Limited through its captive finance company right now for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00175 and 61%, respectively. I know that Subaru charges consumers who exceed their mileage limit $.15 per mile at lease-end, but I am not sure how much of a reduction in this price it provides for miles purchased at lease signing.

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vynom

Sorry about that. The MSRP is 37,090. Thanks again

CarMan@Edmunds

No problem themush1326. You never mentioned the selling price or MSRP of the car 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 car'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 car that you are interested in for you if you let me know what these numbers are.

There's nothing wrong with purchasing a CPO vehicle, but I personally feel as though they are not worth much of a premium over normal used vehicles. Many dealerships don't even bother to perform the supposed million-point inspection that they are supposed to on CPO vehicles. The main value that CPO programs provide is the extended warranty that they come with. If I was able to find a used S2000 for less money than a certified one, I definitely would go with the non-certified car.

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CarMan@Edmunds

You're welcome David D. This car's base lease money factor for consumers who pay a security deposit and acquisition fee was .00250 in both July and August, but I think that the residual value is slightly different.

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CarMan@Edmunds

You're welcome cagorm. If you were to lease a 2005 Honda Pilot EX-L w/o nav and w/o rear ent through American Honda Finance Corp. right now for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00119 and 58%, respectively.

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CarMan@Edmunds

No, the lease program for the AWD version of this car is different. If you were to lease a 2005 Infiniti G35 AWD through IFS right now for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00113 and 59%, respectively. The numbers for an otherwise identical 39 month lease should be .00143 and 58%.

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CarMan@Edmunds

Bbirdbird, it is difficult to say whether a lease on a 2006 RL will be more expensive when it is introduced than a lease on a 2005 model would be right now. I doubt that Acura will provide the dealer cash incentive on the 2006 model when it first hits dealers, but its residual values will be higher than an '05 model's are at this point.

I would be happy to work up a sample lease payment on this car for you, but it would be a big help if you would provide me with an approximate selling price for it. You may be able to get an idea of how much you should pay for this car by visiting the following discussion: "Acura RL: Prices Paid & Buying Experience".

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CarMan@Edmunds

You're welcome andi4. I'm always glad to help. You will only have to pay your home state's sales tax and any required fees that it has when you go to register your car in Indiana. The selling price that you were quoted for this car is a little on the high side. I would say that you should be able to get it for at least $1,000 less, especially since Volkswagen is providing a $750 cash incentive on it when leased through VW Credit. Using the prices that you gave me, an MSRP of $22,965 and a selling price of $22,505, I estimate that the Jetta 2.5 L that you are interested in should have a zero down, pre-tax monthly payment of around $297. Again though, you should be able to better than that with a little comparison shopping or additional haggling.

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CarMan@Edmunds

You're very welcome jasonhersh. I'm not sure if I gave you this link earlier, but you may be able to find out how much other community members are paying for the truck that you are considering by visiting the following discussion: "Honda Pilot: Prices Paid & Buying Experience". Good luck in your negotiations and let me know if you have any other questions.

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CarMan@Edmunds

Hi amy8. If you've got questions about leasing, you've certainly come to the right place. I always find that when negotiating a deal on a new vehicle it is helpful to keep the purchase price and trade-in value for your current vehicle separate. This way when you are comparison shopping you can compare apples to apples and not let the dealers play games with the numbers. If you owe more money on your Taurus than any dealer is willing to give you for it at this time, this is possible, you may be better off waiting until you are less upside down to get a new vehicle. If you have equity in your trade, you would be better off having the dealer cut you a check for it rather than using the proceeds from it as a down payment 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 Pilot would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all.

See if you can find out the exact selling price of the truck that you are interested in, without your trade factored in. If you can provide me with this number (with the full MSRP again) I would be happy to calculate a sample lease payment on it for you.

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lesley1

Dear Car Man -

We are looking at purchasing a new 2005 Murano with a sticker price around $39,000. (SL AWD, almost fully loaded with the extras)....

We have the friends and family discount, and a trade in of a 1999 honda civic with 115K miles and trying to put down as little as possible. Will the friends and family discount help in a lease situation? What would our payments be and should we lease or buy?

Thanks in advance for your help.
Lesley

bdr127

I like this lease calculator:

http://www.leaseguide.com/calc.htm

sheluvsvettes

I need some advice about leasing, I currently have a mustang and am about 6000 upside down, I have little to no money to put down (now or later), I am wanting to get into a new mustang and was wondering if leasing would be the way to go?

newbmw1

I need some advice on 525xi. What is a good price over invoice on a 2006 BMW 525xi? If I were to lease what is the current money factor (NO money down, 15000miles/yr). Thanks

gumtreefl

Coming off of an Odyssey lease, lots of mech problems w/van & avoiding Honda .. saw a deal on a Sonata '06 GLS for $2138 down & $199 per mo (my credit qualifies), 36 mos, 12k per yr. (thinking about doing 15k per yr).

This seems like a good deal ~ anything I should be aware of before committing?

Thank you!

snail

I was wondering if someone could help me figure out a lease payment on a 05 infiniti G35 couple.

MSRP is 34360
selling price is 33360
for 39 month lease with 15k miles/year

Also, how do i go about figure out the payments using selling price

themush1326

thanks, in your opinion is 25K for a 2002 S2000 w/ 24K miles too high???
Edmunds certified price is nearly 27K.
I know its not a lease question but your advice is appreciated.

scottemarin

Hi, I'm new to leasing and have a few questions - thanks in advance for any help!

What are the standard fees I should expect to pay from Toyota for a 4Runner in a lease? Any gotcha's I should be aware of before walking into the dealer?

Is negotiating a the total price for the car any different than if I was financing? Meaning, will they charge me more or less because it is a lease?

I traditionally go over 15,000 miles/year - what can I do up front to avoid penalties later? If I can't avoid it up front, what is usually the cost of the penalty at the end of the lease?

You mention above 'Base Lease Money Factor' and 'Residual Value' - can you explain what these mean or tell me where I can find more information?

Thanks again!

snail

Ok, I tried using this calculator on info from another post, could you explain the difference in monthly payment besides the tax?

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.

also, how do i calculate full payment with tax?

cyclone4evr

Jason,

My apologies for the delay...lease was for an EX with a trailer package. Drop ~$30/mo without the trailer.

ms2kj

Car_man,

Thank you for your response.

Full MSRP will be $35,710

Selling price out the door: $32,930. But this is including the $1000 Manufactor to Dealer cash. I haven't told them that I'm going to be leasing. I wanted to negotiate the price before hand.

Lease Term: 39-48 Months
Miles: 12K

Thanks Car_man

PS: Where can I get the lastest money factor rate?

00ssslp

Hi, I'm new to forum. I'm interested in leasing an 05 Escalade with GM employee pricing, MSRP is 54K. Where can I get my best lease?
Thank's

ca_man

Hello Car_Man,

Is it true that Audi is offering dealers an additional $1000 to move the 2005 Audi A6 3.2 off the lots ? If so, this would really sweeten a lease on this car.
Thanks !

birdbird

Thanks car_man. Okay, assume the invoice price or price I negotiate for a 2005 Acura RL is 43,714.00 as I think is reported by Edmunds itself on this site (even though some individuals on this site say they are paying less at different dealerships). So, if we use that figure as the cap cost of the car, and assume 36 month lease, with $1,100.00 down (taxes included but not licensing) 12,000 miles per year. 6.6 % sales tax on the monthly payments. At the present Honda finance rates and so forth, can you figure what the lease payments should be? Also, can you say what the monthly payments should be if the $1,100.00 is rolled into the monthly payment (in other words, nothing down).

One last question, isn't the licensing of the car the only thing most dealers aren't willing to roll into the monthly payment on a Honda Finance Lease or will they usually roll that in, too?

birdbird

I think Edmunds is reporting the invoice price is 43,714.00 for the Acura RL. Please correct me if I'm wrong. I didn't mean to imply Edmunds was negotiating my deal!

chet21

Hi CarMan
I'm new to leasing. i've always been a buyer and my current car is 12 yrs old. my wife wants to drive a new car every few years, so now i'm considering a lease for her. I would like to know what kind of lease payment to expect for 2006 bmw 325i m/t + sport package (no down). I don't have the pricing yet other than the msrp of $32,595. another question i have is what kind of credit score do i need to qualify for a lease and does lower score means higher money factor? thanks for your help.

Chet

sob

Car Man or Kirstie......please confirm current Money Factor and Residual being offered by Toyota Financial in Gulf States Region for subject auto......Thanks

fin1581

Carman,

I'm back. I was wondering if you could post the residual and money factor for a '05 Silverado Ext. Cab LT 4x4 with an MSRP of $37,465 and a selling price of $28,865 after rebates. Thanks.

evilgenius

I've looked on the web and this site and can't seem to get any good tips on how to negotiate a lease end purchase. Can I get the following questions answered:

1. The Residual Value is the amount the lender has to sell you your vehicle for, no more, no less?

2. If you vehicle is worth $3k - $4k more than the Residual Value, the vehicle is running great, and you like your vehicle it would be wise to purchase the vehicle?

3. How do I negotiate the lease end purchase? I was told by some car salesmen (ironically from the dealer I bough the vehicle from) that you can negotiate down the Residual Value? How far? How? What info if any do you share with the lender when negotiating?

4. Can I take my vehicle with positive equity (Trade-in Value higher than Residual Value) and trade it in at a dealership?

newbe4lease

I would like to trade in a 2002 Jeep Liberty Ltd. 4wd with only 22,000 miles in
excellent cond. with many extra's for a 2005 Hyundai Tucson. Now through 9/5/05
I can get a 36 mo. lease with $199. mo. payment, $1799 down, 0 security deposit, 12000 annual mileage that includes a HMFC $2000 rebate and suggested dealer participation of $1101 towards the total cost of the vehicle. I wasn't planning on a trade-in and owe $9800 on the Liberty, but what should I be paying on a lease with this great trade-in? I really need your help to know what to do. I want to reduce my payments and don't want to lose to much on the Liberty. Could the lease amount be reduced further with a trade? Please explain the pro's and con's mr. car man. Thank you!

CarMan@Edmunds

Don't worry about it, vynom. Here is the sample lease payment that you are looking for. If you were to lease a 2005 Nissan Murano SL AWD with an MSRP of $37,090 and a selling price of $33,400 through Nissan Motor Acceptance Corp. right now for 36 months with 15,000 miles per year, its zero down, pre-tax monthly payment should be around $412. Nissan's most aggressive lease support is available on 42 month leases of this vehicle. The payment for an otherwise identical 42 month lease would be around $372.

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CarMan@Edmunds

Hey dhamilton. I am not personally involved with any aspects of Edmunds.com other than the work that I do in the forums. If you do not like the lease calculator that is available on this site, please feel free to provide feedback on it using the following link: Edmunds.com - Contact Us. I always say if you want something done right, you might as well do it yourself. That's why I created my own lease calculator in Excel. You can do so as well using the formula that is outlined in the following article: Calculate Your Own Lease Payment.

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CarMan@Edmunds

Hey m_42. I do not believe that Toyota's lease program for the 2005 Sienna is much different in your area in August than it was in July. As you are probably aware, you are in Toyota's Southeast region. Things work a little differently in that area than they do in the rest of the country because Toyota does not sell vehicles directly to the public there, but instead it does through a distributor. This distributor, SE Toyota, uses its own bank rather than running deals through Toyota Financial Services. Unfortunately, I have not seen SE Toyota Finance's current lease program for this model. Sorry that I could not be of more help with this aspect of your deal. I can tell you that in its Southeast region, Toyota is currently providing 1.9% financing for up to 3 years, 2.9% for 4 years, and 3.9% for 5 years or $750 customer cash on the 2005 Sienna LE / CE and the finance rates or $1,000 customer cash on Sienna on Limited / XLE models.

Honda is not currently providing any sort of support on the Odyssey, but DaimlerChrysler has a decent level of support on the Dodge Caravan. It is offering special financing rates, customer cash, a special lease program, and the ability for normal consumers to purchase this van through its "Employee Pricing Plus" program.

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CarMan@Edmunds

Hi nappyb. According to my calculations, if you were to lease a 2006 Infiniti M35 Sport Base model with an MSRP of $43,440 and a selling price of $41,900 through Infiniti Financial Services right now for 39 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $551. In order to get this payment, at lease signing you would have to pay your car's first month's payment, a security deposit equivalent to that payment rounded up to the nearest $25 or $50 increment, and IFS' $550 lease acquisition fee. If you need to drive more than 15,000 miles per year, you will have to purchase additional miles on a per-mile basis. It is less expensive to do so at lease signing than it is to wait until lease-end and have to pay an excess mileage penalty.

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CarMan@Edmunds

You're welcome Ken. Most banks' 10,000 miles per year residual values are 1% higher than their 12,000 miles per year residuals.

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CarMan@Edmunds

Hi Lesley. The selling prices of leased vehicles is negotiable, just as if you were paying cash or financing. The lower the selling price of the vehicle that you are interested in is, the lower its lease payment will be. If you are able to get the Murano that you are interested in for an attractive price through Nissan's friends and family program it definitely would help to lower its payment if you decided to lease. I would be happy to give you an idea of what your lease payment should be like on this truck, however in order for me to do so I need you to tell me what its selling price would be through this program as well as 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

Hello sheluvsvettes. By far the best way for you to go would be to wait until you are less upside down on your current vehicle to get a new one. If you lease your new Mustang, your monthly payment will likely be lower than if you financed it, but you still will be paying way more than you would if you were not $6,000 upside down.

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CarMan@Edmunds

Hi newbmw1. I am not personally all that familiar with what the market is like for the 2006 BMW 525xi in your area right now. You may be able to get an idea of how much you should pay for this car by visiting the following discussion: "BMW 5-Series: Prices Paid & Buying Experience". I would be happy to give you an idea of what this car's lease program is currently like, but in order for me to do so I need you to tell me how long you want to lease it for.

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CarMan@Edmunds

Hi gumtreefl. The first thing that you need to know, if you do not already, is that the selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. The lower the selling price of your new car is, the lower its lease payment will be. Manufacturers' advertised lease payments, like the one that you mentioned, usually leave a little meat on the bone so to speak. There is a very good chance that you will be able to negotiate a lower selling price, and in turn a lower monthly payment, than the one that was used with the advertised deal. When negotiating this car's price, keep in mind that Hyundai is providing a $1,000 cash incentive on leases of the 2006 Sonata this month.

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CarMan@Edmunds

Here's the sample lease payment that you are looking for, snail. According to my calculations, if you were to lease a 2005 Infiniti G35 Coupe with an MSRP of $34,360 and a selling price of $33,360 through Infiniti Financial Services right now for 39 months with 15,000 miles per year, its zero down, pre-tax monthly payment should be around $475. If you need to calculate lease payments on vehicles on your own, you can do so using the formula that is outlined in the following article: Calculate Your Own Lease Payment.

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CarMan@Edmunds

Unfortunately, themush1326, I am not all that familiar with what the market is like for used S2000s right now. You should be able to get an idea of how good the price you were quoted is 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

Welcome scottemarin. 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.

As far as the standard fees that consumers have to pay when leasing go, at lease signing most lessees are required 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, the acquisition fee that is charged by the bank that they are leasing through (this is usually $400 to $800), and any required state taxes or fees. Toyota Financial Services charges an acquisition fee of $400 on all deals.

The selling prices of leased vehicles are absolutely negotiable. As you said in your post, you should negotiate the selling price of the car or truck that you are interested in just as if you were financing it.

If you need to drive more than 15,000 miles per year, 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. Specifically, Toyota Financial Services charges $.10 for additional miles purchased at lease signing and $.15 for excess miles at lease-end.

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CarMan@Edmunds

You're welcome ms2kj. According to my calculations, if you were to lease a 2005 Infiniti G35 Sedan 2WD with an MSRP of $35,710 and a selling price of $33,930 (I added the dealer cash back in because it is not compatible with leases through IFS) through Infiniti Financial Services right now for 39 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $433. I used a factor and residual of .00171 / 58% to arrive at this payment. The 48 month lease program for this car is actually less attractive than the 39 month program.

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