Lease Questions - Ask Here

thr61

I now have some numbers with which to work:

2006 325i
Standard transmission
Cold weather package
Premium package
Satellite radio
Metallic paint

MSRP including $695 destination charge: $36,565

I have been quoted $35,365 ($1200 off MSRP) and the following lease deal:

36 months
18,000 miles per year
1st, last and acquisition fee, registration: $2,200
MF: .275
Residual: 61%
Monthly payment w/tax: $582

I have also been given a second option of adding the following:
Sports package
Xeon headlights

which has an MSRP of $38,965

and a purchase price of $37,295
lease terms are the same with a monthly payment of $612 with tax

Comments and suggestions please.

joed3

Hi!! My daughter's lease on an 01 Grand Cherokee has 14 months to go. She is about to reach the mileage limit of 60000 miles!! {$.18 for every mile over} The payoff at the end of the lease is about $8000. {and we really don't want to keep the car} What to do?? Anything advice at this point??

kimmy14

I have turned in my VW leased vehicle and they want to charge me almost $500 for returning it with a non-factory CD-player. It came with a casette player when I leased it. I feel this is an upgrade to the vehicle. They said it's industry standard to charge upon lease returns for things like this. Is it or is it that VW is the rarity rather than the norm?

dave328

Hi Carman,

This is the deal offered by my local Ininfiniti dealer on a M35 with Nav and Journey package.

MSRP 45,860
Cap cost 43,039
residual 63%
MF 0.0020
36mos
15k/yr
0 down.
Drive offs about 1200.
monthly payment including tax $644.48

According my my calculations monthly payment should be 536.83 + 41.6 tax = 578.43.

Am I missing something here?

Thanks

Dave

joker382

Here we go again carman! You helped me out really good with my accord and I got a great deal, now my girlfriend needs some help. The lease calculator isn't helping too much, but here are the numbers: MSRP 34,440 For G35X AWD 4DR.
Residual Value 20,073, dealer says he is giving it for 2000 under invoice. This would be a lease for 36 months for 15,000K a year with 2532 due at signing which includes 400 cash downpayment, sales tax, tire disposal fee, advanced payment(first month) and bank fee. The monthly payment would be 389. However the only piece of info I do not have is the money factor. Let me know if you think this is good because I need to make a decision by 6PM NY time on wen. sept 1st. Thank you so much again!!!

peachtree103

Just want to make sure I'm calculating this correctly:

2005 Chevy Suburban

MSRP 48110

Cap Cost 39758

MF: .0025 = 6%

Residual: 62% (15K/Year, 24 months)

Pre-Tax Payment: $498.27

6% use tax (GA) $29.50

Total Payment: 528.17

I asked because I requested quotes from several dealers, figuring that with Employee pricing, the quotes would be close to mine. They're coming back with payments from $750 to $950. Am I missing something, or are all these numbers being padded quite a bit?

tigerlilly

I'm leasing for the first time and feel clueless. I live in LA where the dealers are extra sleazy, and desperately need some official advice. The car I've selected is the following:

2006 BMW 325i $30,800
Metallic Paint $475.
Premium Package $2,900.
Sports Package $1,600.
Automatic $1,275.
Zenon Headlights $800.
Heated Front Seats $500.
Satellite Prep 695.

Total (MSRP) $38,620.
Edmunds TMW $36,352.

TERMS:
2 year lease
12,000 miles per year
Cash Down $2,000.
Trade In (approx.) $2,500.

He said with this agreement my monthly payment would be $494 including tax. If I went to a 3 year lease my payment would be $520 including tax.

Doesnt this sound like Im putting an awful lot down, which they say not to do. But I am looking for a low monthly. He says the car is really in demand and people arent getting big breaks on them. He has to do a swap with another dealer to get the exact one I want. Please set me straight.

Thanks,
Tigerlilly

noahsdad

Hi there! complicated question...please bear with me.

Currently i lease a 2002 porsche boxster and have 11 payments left of my 4yr/15 lease. the payments are 628/month. I write the car off. My current buyout is 30101. The car has had some body work done and still need a small dent removed from rear fender.

I had a son recently...so, i need a family car and found myself in MB dealer. Wife and i decided on a 2006 E350 4matic wagon with msrp 59,425. Negotiated to Invoice, and got half of holdback, therefore i am at 1000 under invoice.
Rest of the deal:

48months/48k
856 monthly.
Drive away costs of first month and taxes=2800 (paid with corporate card to write off)
residual 52%=30000

The dealer has offered me 25,000 for my car. The dealer has in effect stated that they will take my car, pay off porsche lease, and for tax benefits, roll negative equity into monthy so that it may be written off. I am concerned that the body work that they have already dinged me on will also be assessed by PFS, and that even though i was bought out, will be responsible for. Would i be better off to buy out car myself, and work this as a straight trade? The trade has already been devalued by MB due to the small existing dent.

By the way, does that lease deal sound fair? Since i was originally looking at sedan, the incentive-ized MF was used, so they say..Yet the dealer was elusive as to what that actually was....HELP?
:confuse:

tigerlilly

On the BMW 325i: I mistakenly listed the Satellite Prep as $695 when that is the Destination Charge. Satellite Prep is actually $75. The Suggested Price was correctly listed above at $38,620.

Also, when i asked the dealer to fax me the calculations, he said he couldnt do it in writing but he could tell me over the phone. Then he blurted out numbers I didnt understand. :confuse: ">

What do I need to ask him specifically and what do I need to look out for?
Thanks!

kyfdx

If the dealer is offfering you $25K for the car, then they are paying off the lease.. the car will be theirs.... There will be no inspection or mileage charges to worry about... you are off the hook...

Just make sure they are doing that... Tell them you are only doing the deal, if they are actually taking your car in trade. (They almost have to be.. otherwise, they could never make the numbers work with turning your car back in to PFS).

regards,
kyfdx

usmj1

Car_Man,

Thanks for the advice. Dealer just deducts .15/mile for loaner miles. Any chance you could give me advice on another deal.
2006 Passat. 2.0 lease
15k, 36 months
MSRP 28,415
$ 471 down (includes everything), $417/month.

Thanks.

steveholly

I ironed out a deal on the same car in Central NJ
You should be able to do a little better

details:
2006 Passat 2.0T
Package #2
MSRP of $28,415
36 month lease w/ 18k miles
$380/month (includes 6% NJ tax)
$500 down

surfd90

This will possibly be the first time i have paid MSRP for a new car - is this really the case with other buyers?

Here is the lease they are proposing:

MSRP and Cap Cost with the options - $63,400
bank fee $695
total cap $64,095
RESIDUAL $33,588 (is this fixed or can it be negotiated?)
total depresication $30,507
license $480.75
other fee $45

15k miles - 36 months
$1,693.89 drive off
$1164.55 per month


15k/mo - 36 months
$6,987.28 drive off
$1000 per month

Do you think i can do better?

Thanks in advance.

maxwella

Hi: I'm looking to lease an 05 Audi TT, roadster, the 225 hp model, in California. Can you give me the residual and the money factor currently offered on this car? I'm looking at 12K miles/year, 48 months.

Many thanks!

thr61

Here is a basic question that will help me with negotiations:

I am trying best work on reducing a monthly payment on a 2006 325i. I have been offered a 36 month lease with 18,000 miles. Purchase price is $35,365; MF is .0275; residual is 61% ($21,576) and monthly payment is $582 with tax.

In order to get the dealer to reduce the price to $550 a month (total of $1152), won't I be asking them to reduce the purchase price by $1601? That is, $1152 plus 39% (the amount of "use" the vehicle will incur? This became obvious to me when I looked at other options that drove the purchase price up, but only hit the monthly by a small amount because of the residual.

In short, it seems that while they may move some on the price and can likely go down on the MF by .0025, it is unlikely I will get to $550.

Am I on the right track here?

Thanks.

jason_jm

anyone got any numbers?

probably will make no sense to lease coz of bad residual

bdr127

Also look at a 24 month lease on a 325i.... very favorable residual (75% for 12k miles).

thr61

Just curious: why would I want to have a 24 month lease which, as quoted, has a higher monthly, and I am then faced with the registration and other pw costs a year earlier?

kyfdx

No... the residual is fixed... So, to lower the payment a total of $1152, the purchase price would have to be lowered slightly less than that.. because of the lower cap cost, the finance/rent charge of the payment will be slightly less...

The residual is based on MSRP... If it were based on the selling price, then your assumption would be correct..

If they reduce the money factor to .0025, that would save about $15/mo. right there..

regards,
kyfdx

thr61

I should be able to get them to do this since my research has suggested that the .0025 rate is standard for BMW finance.

What seems reasonable in terms of a purchase price offer in order to get the price closer to $550?

mazdrvr

When doing a lease buyout, is it okay to negotiate the price and (I think this is bs but) is there really such a thing as a &1000. processing fee for that dealership has to charge? She called the car maker financial to negotiate the price but they said no and got the same answer at the delaership. The buyout price was 7100. and with all the fees, taxes, (incl their bs 1000. processing fee) the end total will be a little over 9500. They would not budge w/ removing the fee at all. Any advice on how to maybe play hardball to lower the buying price? We said that we would just turn the car in and walked out and no one bothered to stop us to renegotiate. The only reason she wants to buy off the car is because she doesn't drive much and knows the history of the car and its less than buying a new one.

CarMan@Edmunds

Hi 108flat. It's strange that the person who you spoke with at Toyota Financial Services told you that they don't set vehicles' residual values, because they definitely do. Perhaps they meant that they do not share information about vehicles' residual values with the general public and that you would have to get that info from your dealer. I would be happy to give you an idea of what this truck's current lease program is like. However, in order for me to do so I need you to tell me how long you want to lease it for and how many miles per year you need to be able to drive it. Furthermore, Toyota's August lease program is scheduled to expire in a couple of days. If you wait until late next week to ask me, I should be able to give you an idea of what Toyota's new September lease program is like for this truck. Talk to you then.

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CarMan@Edmunds

No problem techbiz. BMW's August lease program was actually only scheduled to run through yesterday, August 31st. I should have an opportunity to take a look at its new September lease program in the next day or two. Please post a quick reminder in this discussion for me in a couple of days and I will be happy to fill you in on what I have been able to find out about this car's new program.

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CarMan@Edmunds

Hello atfryar. I am glad that you almost fell out of your chair when you were quoted that lease. An $8,300 down payment on a lease is absolutely absurd. 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 XC90 would be exactly the same, regardless of whether you had put $8,000 down, or had made absolutely no down payment at all.

It sounds to me as though you would be better off waiting to get a new vehicle until you are less upside down on your current one, or at least leaving it out of this transaction. As far as backing into this truck's capitalized cost goes, I probably would be able to come close to it by messing around with the numbers, but why not just ask the dealer. If a dealer is not straightforward enough to tell you what sort of price they are selling you a vehicle for then you definitely do not want to do business with them. Before returning to the dealer, do some research here on Edmunds.com to find out approximately how much you should pay for this vehicle right now by looking up its True Market Value and by stopping by the following discussion: "Volvo XC90: Prices Paid & Buying Experience". Once you have an idea of how much you should pay, go back to the dealer and get a price quote from them.

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CarMan@Edmunds

Beemerluv, the link that I provided you with was not to this site's lease calculator, but to an article that tells exactly how lease payments are calculated. Dealers calculate vehicles lease payment using money factors in their decimal form, just like the method that the article describes. They do not convert them to a percent format for the purpose of calculating payments.

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CarMan@Edmunds

Hi gr8396. If your son wants to lease a good, reliable vehicle for around $200 per month, it's tough to go wrong with a Honda Civic or Toyota Corolla.

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CarMan@Edmunds

You're welcome Frederick. Let's work up a lease payment on this car and see what we come up with. According to my calculations, if you were to lease a 2005 Nissan 350Z Roadster Touring with an MSRP of $39,850 and a selling price of $36,413 (which looks reasonable to me) through Nissan Motor Acceptance Corp. right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $572. One of the reasons for the difference in the payment that I came up with and the one that you were quoted is that while the residual value that you were quoted for this car is correct, NMAC's buy rate money factor for it should be .00255. It will waive its security deposit and acquisition fee ($550) requirements in exchange for an increase in vehicles' money factors. Either this is what is happening, or the acquisition fee is being added into your car's cap cost, making the payment higher. Or they are marking up NMAC's buy rate some to add additional back-end profit to your deal.

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CarMan@Edmunds

Greetings velvel. Let's work up a lease payment on this car using Honda's current lease program and see what we come up with. According to my calculations, if you were to lease a 2005 Honda Accord EX V6 Sedan with an MSRP of $27,365 and a capitalized cost of $24,900 through American Honda Finance Corp. right now for 36 months with 12,000 miles per year, its zero down, pre-tax monthly payment should be around $326. So the $330 per month that you were quoted is in the right ballpark.

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CarMan@Edmunds

You're very welcome nberkel.

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CarMan@Edmunds

Hi thr61. $1,200 off of this car's MSRP is probably around halfway between its full MSRP and invoice prices. If there is a decent amount of competition for your business in your area, I would not be surprised if you were able to beat this deal. You may want to stop by the following discussion to see how much other community members have paid for similar cars recently: "BMW 3-Series: Prices Paid & Buying Experience". Also, BMW FS' buy rate lease money factor for a 3 year lease of this car in August was .00250 with the payment of a security deposit. You were quoted a factor of .00275. Part of the difference is probably because you are having your car's security deposit waived, but I think that there may be some mark-up there as well. BMW is scheduled to publish its new September lease program late today. I should be able to get an idea of what the new program is like in a couple of days. Please feel free to check back with me then and I will be happy to give you an idea of what this car's new September program is like.

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CarMan@Edmunds

I am sorry to hear that your daughter has already reached her lease's mileage limit with over a year remaining, joed3. Unfortunately, the only way that she can avoid having to pay an excess mileage penalty would be to purchase her truck. There's always the possibility that she would lose less money purchasing her truck and trading it in or selling it on her own than she would have to pay in excess mileage charges. She cannot get out of her lease at this point without purchasing her Jeep from the bank that she is leasing it through. Even then, since she still has 14 months remaining on her lease, they may want her to pay all, or at least the depreciation portion of her remaining lease payments as well as her Grand Cherokee's purchase price. I am sorry to say that the bottom line is that your daughter is going to lose money on this lease no matter what she does.

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CarMan@Edmunds

Hi kimmy14. While you feel as though the aftermarket CD player was an upgrade, many banks charge lessees fees for leased vehicles returned with non-OEM accessories installed in them. What many consumers in this situation do is reinstall the factory part, in this case the original stereo, before returning their leased vehicle. At this point, since you have already turned your car in, there really is not anything that you can do to avoid having to pay this charge.

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CarMan@Edmunds

Hello Dave. Using the numbers that you provided in your post, an MSRP of $45,860, a selling price of $43,039, a money factor of .00200, and a residual value of 63%, I come up with a 36 month zero down, pre-tax lease payment of around $538.84 as well. I can't comment on the sales tax that needs to be added to your payment because each state has its own tax rate and method for calculating sales tax on leased vehicles.

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CarMan@Edmunds

Welcome back joker382. $2,000 under invoice is an outstanding price for this car. You still should get the dealer to tell you exactly what its selling price is though. You need this number to calculate a lease payment on it. As far as its lease program goes, Infiniti Financial Services' current buy rate lease money factor and residual value for a 35 month, 15,000 miles per year lease of a 2005 Infiniti G35 Sedan should currently be .00140 and 58%, respectively.

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CarMan@Edmunds

Hey peachtree103. I just worked up a lease payment on the truck that you mentioned in your post, and according to my calculations its zero down, pre-tax monthly payment should be around $588. So while your calculations were off a little bit, this truck should cost nowhere near the $900 per month that some dealers are quoting you.

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CarMan@Edmunds

Welcome tigerlilly. 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.

I would be more than happy to calculate a sample lease payment on the car that you are interested in for you, however BMW's August lease program was only scheduled to run through yesterday and I have not had an opportunity to take a look at its new September program yet. Please feel free to post a quick reminder in this discussion for me in a few days and I should be able to give you an idea of what this car's new lease program is like. Talk to you soon.

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108flat

I asked her about 3 times but she kept saying that dealers set residuals, sure. Anyway 24 month, 15k/year, September program for the 2006 not 2005 tundra- V8, 4x4
thank you for your help

bra

Last evening I left a $1000 deposit on the following deal. I feel that I'm missing something on this deal....plz assist..

So the deal is that I will trade in my 328i (123,000m) and in need of repair for $5,800. No money will be exchanged at time of transaction...$454.39 from the $5,800 will go toward the first paymt.. MSRP for the 2005 X3 3.0i w/all options except Nav.& backup assist is $44,695. Negotiated price is $43,570....Lease: 39mnths 60% residual 17K miles/yr for $454.39.
When I punch in those #'s I'm still getting a paymt. around $425? Your thoughts...

bra

I have a 9:30am CT lease signing meeting w/BMW so unfortunately I need the advice soon. Please impart your wisdom on this deal. Thank you...

bra

Let me add a couple other pieces of info on this deal: My trade in is a 97' 328i...Kelley Blue Book trade in shows: $4,700...BMW is "giving" me $5,800. The money factor used in this "Aug. 31st" transaction w/pickup today is .0014. Do the #'s shown above in the 2previous messages correspond to a good deal?
Thx..

igork

Hi Carman. I got a deal on a lease, could you tell me if I get a fair price.
Murano S AWD + Conv pack.
MSRP $30600
Selling $27168
Monthly payment came out to $288 + Tax, 42 month, 12000
The following I have to pay at inception:
1st month payment, tax, $300 security deposit, $550 Bank Fee, O down
I do not know how much is money factor but residual is %59
Also could you tell me how much disposition fee should be.
Does it make any difference that lease is not from Nissan Finance but from some independent company.
Sorry if too many questions, thanks in advance.

bdr127

Just curious: why would I want to have a 24 month lease which, as quoted, has a higher monthly, and I am then faced with the registration and other pw costs a year earlier?

The reason I mentioned it was because the payment works out to be lower on a 24 month lease..... There's a misconception out there that the longer the lease term, the cheaper it is. In fact, every manufacturer is different. Most are cheapest at 36 months; I know that GM tends to have cheaper payments on 48 months than anything else. Right now on the 325i, it just so happens that the 24 month works out to a cheaper monthly payment than the 36 month... although most people don't even look at it because they just presume it is more expensive.

crandleman

Car_Man,

Thanks for all of you help so far. I have a question though. I have a dealer that is telling me that the residual of the Toyota Camry LE I am trying to buy is based off of the base MSRP ($20,125) WITHOUT the destination included. The sticker MSRP of the car is $20,851. He is telling me on his mother's life that the residual is 55% of the $20,125 number and that the residual never includes the destination. His residual he is giving me is $11,069 and change.

Every other source I have ever seen says otherwise.

What is the real story here? Is he lying?

Thanks,

Chris 9/1/05

bdr127

I don't know for sure if he's telling the truth or misinformed or whatever.... but the bank sets a non-negotiable residual value. The dealer can't mark it up, and the customer can't negotiate it down. To tell you that "this is the residual" wouldn't put any extra dollars in his pocket, so I don't see the motivation..... Maybe Toyota does it differently, but I've never heard of not including the destination as part of the MSRP for leases.

nm3a

Pittsburgh, PA
04 Mazda RX-8 4dr cpe
twin rotor 6 spd manual RWD
31k miles
Lightning yellow/Black
All options except navigation system
i.e., sunroof, pwr locks/windows/alarm, heated seats, auto rr/vw mirror, GDO control, Bose CD/cassette, 18" alloy wheels, brushed aluminum rotor accents F/R, factory color coord door edge guards, trunk cargo net
S-03 Bridgestones 7000 mi (75% left)
Brakes good
Factory recommended maintenance plus oil/filter every 3000 all done at dealer.
exterior- one very minor paint scratch rt rr bumper (not on metal- touched up) otherwise is in showroom condition.
interior- minimal drivers side mat wear, otherwise in showroom condition.
No repairs at all. All records avail. All recalls done.

Want to trade it in- What's it worth at a Toyota dealer?

njdriver1

Hi Car Man - Its been a while...
I see a post above (23631) that shows a residual of 63% and money factor of .0020. Do options effect the residual at all? Is this the AWD? Are these numbers from Infiniti Financial? I know the terms will expire soon, but we're getting close on a car thats in stock. My dealer was quoting a lower residual, but he may not have been using the correct terms. Thanks Car Man.

genegray

Car_man,
I'm currently leasing an '05 MB C240 (now with 6500miles after 8months). I'm planning to trade it in for an '06 ML350. Dealer said it's possible but the C240 trade in will have no value at all. How true?
Is it really possible to trade in a lease for another lease? If so, what's the catch? Please advice.

Thanks in advance.

mazdrvr

Anyone? Please help! Thank you in advance!

sponge_worthy

How much did you put down on the C240? What is the current pay-off amount vs. current trade-in value?

This is the only way to determine whether or not what he says is true.

aloitoy

Car_Man-

Dear guru of leases, mr. mojo of little numbers that inch closer to my wallet. I negotiated a purchase price for my 06' 325i (auto, xeon, leather, sports, htd seats, mtlc paint) for $35,750. Probably could have done better but the car is coming in tomorrow. I'm leasing and walked out paying the down payment and taxes for the tune of $3400(change). This was this past Saturday and tomorrow me and my younger brother go in to finalize my lease numbers. Has BMW changed it lease rates at all; if they have increased can i bank on what we negotiated last month? Do i have any more negotiation room? I'm looking for 10k miles/year since i don't drive much. Work your magic. Thanks in advance!

Thanks-
Adam & Roman
Wash. DC