Lease Questions - Ask Here

fin1581

Thanks Carman. I'd hate to bother you again but do you have the residual values for 24mth./24k and 30k leases of the same Silverado.? Also, the MF would be the same 6%, correct?

Thanks again,
Fin

bjg3090

Do you know the money factor and residual values for the RL program with AMerican Honda Finance? I am looking for the RL and was given an offer of $499/month + tax (for this month only). I am looking to see if this is a good deal. In all honestly, I don't know if they want an y cap cost reduction. It was the first offer they gave me so we haven't even started negotiating yet. I have the formulas and want to know if the $499 + tax is actually going to be doable for them. Thanks.

vynom

I have sort of negotiated a deal and it's same terms only MSRP is 36,590 and that will be the purchase price as well if I can't do any better talking. Is the $500 rebate forfeited on a lease? I am about 1800 away from where I need to be I think. Could you tell me the numbers you get from these new terms? Thank you so much.

buster6

Hi Car man,

I need to get an update on the Infiniti m45 (sport and non sport if it makes any difference) rates and residuals for August 24,27,36,39 with 15k (with navi --journey and tech pkgs). I tried to negotiate last month at a local dealer, but he insisted on marking up the money factor and rate by 1.5% :sick: . Thanks again, your the best!!

birdbird

Car_man may also need to know how much, if anything, the dealer is asking down on the Acura RL and the captialized cost which I think is the selling price of the vehicle which will show up in your lease if I'm not mistaken. Is tax included and have you asked if there are any other costs? How many miles are they offering?

What part of the country are you in?

Car_man provided me with some great info and I may lease a Celestial Silver with taupe interior next week. I'd been interested to know what others have chosen as they favorite colors and interior?

beemerluv

hey car man, I am currently negotiating a price on an 06' 530, and the sales person I am dealing with threw this at me, "add $200 to the invoice price for for MACO (co-op adv.) what the hell is this? I asked him and he said it had something to do with advertising, is this something legit or is this guy just trying to get more money out of me? I am in the N.Y. area, thanks.

beemerluv

mikezoomzoom

Manufacturer Advertising Co-Operative (MACO). Definitely legit... $200 seems a little low.

How do you think you see all those lovely BMW commercials on TV and billboards, also in magazines and the newspaper?

The real question would be if you consider $200 a deal-breaker on a $46,000+ automobile?

CarMan@Edmunds

Hi Jim. The selling price that you were quoted for this vehicle looks good to me. Let's calculate a sample lease payment on it and see what we come up with. According to my calculations, if you were to lease a 2005 Infiniti FX35 AWD with an MSRP of $46,470 and a selling price of $42,392 through Infiniti Financial Services right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $512. As you can see, the payment that you were quoted looks good too.

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CarMan@Edmunds

Hey babydoc. The selling price that you were quoted for this car looks reasonable to me, but you may want to stop by the following discussion to see how much other community members are paying for it right now: "Infiniti G35: Prices Paid & Buying Experience". Furthermore, the lease money factor and residual value that you were quoted are right on the money. If you like the car, I do not personally see any reason not to pull the trigger on this deal.

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CarMan@Edmunds

Hello carasap. According to the latest information that I have seen, if you were to lease a 2005 Honda Accord LX 4-cylinder sedan 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 .00041 and 52%, respectively. Honda is providing dealer cash on the '05 Accord right now, but this cash is not compatible with special leases through AHFC. Even though this dealer cash is not available on leases, always remember that the selling prices of leased vehicles are negotiable.

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CarMan@Edmunds

Hello PapaJoe. If you were to lease a 2005 Dodge Ram Quad Cab 1500 4x4 SLT through Chrysler Financial right now for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00254 and 53%, respectively.

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CarMan@Edmunds

Hey multiplechoice. In the majority of the country, GMAC's 3 year, 15,000 miles per base lease rate and residual value for the 2005 Chevy Equinox 2WD through GMAC are currently 7.5% and 47%, respectively. As you can see, GMAC publishes lease rates instead of money factors for the vehicles that it leases. You can convert its lease rates into approximate money factor equivalents by dividing them by 2400.

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CarMan@Edmunds

Vynom, if you were to lease a 2005 Nissan Murano SL AWD through NMAC right now for 48 months with 15,000 miles per year, its base lease money factor and residual value should be .00145 and 47%, respectively.

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CarMan@Edmunds

You're welcome cableguy1. Thanks for the additional information. Banks' charge per excess mile is not negotiable. Let's calculate a sample lease payment on this car for you and see what we come up with. According to my calculations, if you were to lease a 2005.5 Audi A4 2.0T sedan with quattro with an MSRP of $32,600 and a selling price of $31,400 through Audi Financial Services right now for 3 years with 15,000 miles per, its zero down, pre-tax monthly payment should be around $433.

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CarMan@Edmunds

Hi banneheim. I would be more than happy to give you my opinion of this deal, however in order for me to do so I need you to provide me with this car's full MSRP (with the destination charge added in). This number is important because it enables me to see how much of a discount you are being given on this car's selling price and it is necessary to calculate a lease payment on it.

The lease money factor that you were quoted for this car is right in line with American Honda Finance Corp.'s current base money factor for it, with a waived security deposit. Its base factor for a 48 month lease of an '05 RL right now should be .00230 with a waived security deposit. When negotiating your deal on this car, kape sure to take the fact that Acura is providing a $2,500 dealer cash incentive on leases of it through AHFC into account. This incentive will help you to negotiate an attractive selling price.

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CarMan@Edmunds

Thanks selm .

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CarMan@Edmunds

I should have scrolled down before I asked for the MSRP . OK, according to the information that you provided me, this car's negotiated price, $42,811, is higher than its full MSRP, $41,900. As I mentioned earlier, the selling prices of leased vehicles are negotiable. The price that you are paying for this car is way too high. It's even worse when one takes the $2,500 dealer cash that is available on the '05 RL right now into account. Are you really upside down on your trade? If so, perhaps your negative equity is part of the explanation for this price. I always find that it is less confusing to treat both deals, your trade and your new vehicle, separately. Looking at the selling price of the car that you want and the amount of money that they are willing to give you for your trade independently makes it easier to tell how good a deal each one is.

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CarMan@Edmunds

Grrrr, it's that whole scrolling issue again. AN MSRP of $49,100 makes a whole lot more sense than one of $41,900. Assuming that you have no equity in your trade, a selling price of $42,811 is very reasonable. Using these prices, I come up with a 3 year, 12,000 miles per zero down, pre-tax monthly payment of around $564.

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CarMan@Edmunds

Hey Andi. As long as you have the lease money factor, residual value, and pricing informaiton for the car that you want you can use the formula that is outlined in the following article to calculate a lease payment on it Calculate Your Own Lease Payment. I definitely think that there is a good chance that you will be able to negotiate a lower selling price than your initial quote for this car. I can give you an idea of what Volkswagen's current lease program is like on this car. If you were to lease a 2005.5 Jetta (not the Value Edition) through VW Credit right now for 36 months with 15,000 miles per year, its base lease money factor aka "buy rate" and residual value should be .00045 and 52%, respectively. It is important to know what VW Credit's base money factor for this model is right now because dealers can often mark banks' base money factors up to add additional back-end profit to deals.

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CarMan@Edmunds

Hey snail. The lease money factor that you were quoted for this car is too high. Infiniti Financial Services' base lease money factor for a 39 month lease of a 2005 G35 Coupe is currently only .00213 for consumers who pay a security deposit and acquisition fee. It appears to me as though the dealer that you are working with may be marking-up this car's base money factor to add additional back-end profit to your deal. If I was in your situation, I would insist that the dealer use the base lease money factor to calculate your car's payment. You can always shop around to see if you can get a better deal elsewhere. It may turn out that you will not be able to come close to this selling price and you are getting the best possible deal on this car, even after taking the money factor mark-up into account.

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CarMan@Edmunds

Hi gdiehl. GMAC's lease rates vary by model. If you let me know what model or models you are interested in and how long you want to lease it for, I should be able to give you an idea of what its current lease program is like.

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fizzyhair

How can a Grand Caravan lease have less of a payment then a Sienna ($100), but the Sienna has a higher residual value (BY $4000)? How can this be? The two I am comparing are about the same MSRP. Are the incentives that good on the GC?

golash

A new dealer in Chantilly VA wants $42000 for FX35 AWD with Touring and Tech Package, My lease terms is $597, 39months with $3000 down.l also have a VPP claim number, am l getting a good deal???. My credit score is 649.

kyfdx

If you negotiate from "invoice up", you have to be prepared to pay everything on the dealer's invoice...

MACO is a legitimate charge for regional advertising, that the dealer pays to BMW NA....

If you make an offer in "real dollars", then adding the MACO charge after the fact is wrong.. It is a dealer cost, not yours...

I know that CR suggests dealing from "dealer cost", but this is what it gets you..

regards,
kyfdx

martyt1

Hey Car_man. Thank you for giving up your time to answer our questions. I'm sure your advice has helped many. My question is, you always quote the base money factor in your lease calculations but how does one even qualify for the base money factor? In other words, what kind of FICO score do you need to get the base factor? When negotiating with a dealer how do you know if they are marking up the money factor to add profit or if they are increasing it because of a lower FICO score? If it's the latter, you are really in no position to negotiate down the money factor, or are you? Thanks in advance for your help.

newcar4car

I am interested in leasing either a 2006 BMW 330i or an 2005.5 Audi A4. Can you tell me what the base money factors and residual values should be on these cars? I am planning on 36 month lease with 12,000 miles.

Also- are websites like loancompare.com a good idea? Or do they just stick you with extra fees that make it not such a great deal?

thanks

beemerluv

Thanx for the info. $200 is definitely not a deal breaker, I just have never heard of this before, and if there is anything that I am not sure of, I ain't afraid to ask about it, the price he is giving me is $48940, which is $1405 over edmunds invoice price (s.p. p.p. sirius) he says that as of Sept. 1, the price goes up $405, so If this is true, then that means I'm getting the car for 1k over invoice, what do you and the other guy's think?

kyfdx

Yes.. price increase effective September 1st..

$405 sounds about right..

beemerluv

In the NYC area, what is the base money factor for an 06' 530 with sport, premium p., and sirius? also what should the residual value be at the end of 36 months? is the residual calculated on the invoice or the MSRP?

m35luvr

I would like to get a few basics before visiting local Infiniti dealership. I've never leased and have a couple of questions:

Key lease negotiations are for MF and Residual? What should these be for a 06 Infiniti M35x with journey and possibly tech package?

Would like 36 month/15K lease, but would alter some if it is to my advantage?

Any pitfalls to watch out for besides negotiating MF, and residual?

selm

Anytime! You have helped me out in the past so I consider it my pleasure.

itch

Car Man,

Can you please tell me if this is a deal right now?
Honda Accord EX V6 Leather no navi.
36 mth, 15k $404.00 nothing due at signing.

Thanks,
Itch

PS I also emailed you on this.

babydoc

Thanks so much!
I looked at the other forum already, and found that someone else got one for 500 under invoice!
I'll call around, and looks like after months of research, it's finally paying off. Will hopefully get one this week.
Thanks for everything!

babydoc

Just as an FYI. I looked at this car before deciding on another. I got a quote for 36 months, 12k, 350. zero due at signing.
I am in the midwest.

rozbor

Car men,

Please, can you tell me what would be good deal for Acura mdx with touring no dvd, no gps. MSRP $40295 with dest charge included. lease for 36, 42 or 48 month.

thanks a lot

tre6

Car_man thanks for all your great info.

What would the base money factor/residual be for a 36month/12k mile/yr lease be on a 2005.5 Audi S4 sedan?

thank you very, very much

vynom

Car_man, I am working on the selling price of 34,565 and the MSRP is 36590. Could you give me the lease numbers for that with zero down and I have a 5% tax here. Thanks again.

milesaremylife

Hi smartshoppers. I entered into a 39-month, 39,000 mile lease on December 1, 2003 (I'm about halfway in). Since the time I entered the lease, my situation has changed and I'm finding impossible to keep my mileage down. I don't know very much about leases (my ex's dad helped me out when I entered the lease) - do I have any options for getting out of it? I don't mind keeping my car, but I also don't mind getting a new (new or used) one.

Thanks in advance! :confuse:

yoyopanda

Hi, Car_man,

I am considering leasing a 05 Jaguar S-Type 3.0 automatic, with Navigation and premium packpage. The dealer is offering me for 3 years with 12,000 miles per year,$5000 down, after-tax monthly payment of $575. Is this reasonable?

If now, where I can find supporting figure to negotiate with the dealer? Thanks very much!!

audibuyer

I am in the process of negotiating a lease for a 2005 Audi A8 L...what do you think about these terms?

$76,570 :MSRP
$70,570 ($1,000 Below invoice) : Agreed SALES PRICE
$2,000 :Down payment
Dealer is paying for Taxes, Tag, Title
Dealer is paying $574 Dest.Fee

.0009 : Money Factor
56% : RSV
36 Months
12,000 Miles

MONTHLY PAYMENTS: $864.50 (I am trying to get them down to $850)

Do you think this is an ok deal? Do you think if I wait till the end of the month I might get a better deal? The 2006 A8 has not hit the dealership yet.

I live in Texas for what it's worth.

Thanks

gdiehl

thanks Car man, I love this forum.

looking at an H3. dealer wouldn't budge off 8.75% for 36 months. that' s the first problem.
second problem was they seem to be adding about $40 onto the payment.
I know how to calculate a payment: cap -residual / term) +( cap + residual x rate /2400 + tax. H3 was at gmid price appx. 34000 msrp 37000. residual appx 23000, 15000miles.

they quoted 580 /month. my numbers came out at 557.

question. tax is based on the monthly payment right ? Ex. payment * 1.075 in my case with a 7.5% sales tax.

sales manager at Bob Ross Hummer in Dayton Ohio hung up on me when i questioned his numbers.

my guess is they're trying to make up for the GMID on the back end. whbat rate should I be paying on a 36 vmonth H3 lease in your opinion.?

thanks

audibuyer

If use the money factor and other terms given by the dealership and plug them into http://www.leaseguide.com/calc.htm the payment doesn't come out the same as what they are telling me. Of course their payment is higher than what I am calculating.

Are they hidding something and should I rely close to what the calc says?

Thanks

audibuyer

Mr. Car Man,

What is considered a good deal when using the http://www.leaseguide.com/calc.htm lease calculator to determine your payments? There is a $37 difference between the payments in what I am calculating and what the dealership is giving me. Can they go lower and still make money? And if they sell below invoice are they still making money?

Thanks

jcny21x

Dear Car Man,
Hi this is Joe (from post 22641). I had told you I was interested in leasing a car, and I have out a lot more about the process from a lot of research. However I was wondering what your opinion is on a used lease. I searched around and I found a used subaru wrx sti up for a lease trade about 100 miles away from me. I really love these cars, and the payments seem great (below 400 dollars a month for 36 remaning months). It has 20k miles on it already. Have you had experience with used leases before through a lease trade? Is there any reason why I should not take this deal? I also found out that the subaru warranty is bumper-to-bumper for only 3 years 36k miles, is there anyway to get an extended warranty or something else? I will not look into this car if the warranty expires before the end of the lease term. Thanks Car Man.

trishe

Dealer is offering the following:

Car_Man ... would appreciate your advice on the following deal

Porsche Cayenne V6 Base
MSRP - 54,000 - includes convenience and light package and 19" wheels

$2500 in startups - first month payment included in startup
39 month lease term
15,000 miles per year
768.00 monthly payment

Thanks for your help ....

2002passat

Hi,

Was wondering what is my responsibility to the lessor is as the lessee for informing the lessor about an accident to the leased vehicle that does not total the car, does not cause damage that make the car unsafe, is completely covered by your insurance or another 3rd party, and is repaired by a reputable body shop.

Am I required to inform the lessor of the accident right after it happens, after it has been repaired, when the car is returned to the lessor at the the end of the lease period or never?

I had a tree fall on the top of my 2002 Passat station wagon and the car sustained cosmetic damage on the side of the car and a dent on the roof of the car but no permanent structural damage. As the fault of the accident was the city's, they paid my claim and I had the car repaired by a local, reputable body shop.

Please help answer this question.

Thanks!

-2002Passat

liandyk

Hey Carman,
Thanks for all of your help. I finally decided on a Toyota Highlander V6 AWD semi- loaded MSRP 31,539. 36 month lease @ 15k miles/year. Monthly is $379/month with only $1500 up front which included all taxes(NY), bankfees, extra fees, etc. I shopped around and feel like I got the best deal I could get (by about $30/month).
Thanks again for all of your help!
-Andy

beemerluv

I am presently negotiating a lease deal on an 06' 530 in the NYC area, let me tell you what the salesman is telling me, perhaps you can tell me whether or not he is being honest and straight up with me: first off, he is telling me that I have to pay a tax on the bank/aquisition fee (about $71 bucks) have you ever heard of this? also, he is offering me a $0 downpayment deal, but I told him I would prefer to give him about $1k as a cap. reduction fee so as to help lower my monthly payment, and he said that I would have to pay sales tax on that cap. reduction, one more thing, I told him that I had a FICO score over 800, so I'd like to get a money factor of less than .00175, and he said that was non-negotiable, is what he is telling me factual and on the money, or is he just trying to squeeze more money out of me?

Thanks car man. :confuse:

CarMan@Edmunds

You're welcome Fin. You are correct, this truck's 2 year lease rate is the same as its 3 year rate. Its 2 year, 15,000 miles per residual value is currently 60%. Its 12,000 miles per year residual value for this term is 61%.

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CarMan@Edmunds

Hi bjg3090. I would be happy to give you an idea of what Acura's current lease program is like on the RL, however it would be a big help if you 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. I can tell you right now that Acura is providing a $2,500 dealer cash incentive on '05 RLs that are leased through American Honda Finance Corp. Make sure to take this cash into account when negotiating your car's selling price.

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