Lease Questions - Ask Here

CarMan@Edmunds

Greetings halo19. I should be able to give you an idea of what sort of lease payment to expect on the Mazda3 that you are interested in if you tell me what its full MSRP and approximate selling price are. Mazda's August lease program is scheduled to run through September 6th. I should be able to get an idea of what its new September program is like a few days after that. Please feel free to post a reminder for me later on this week with the pricing information that I just mentioned and I will be happy to work up a sample lease payment for you.

Car_man
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CarMan@Edmunds

Hello foxyroxy. If you want to lease a BMW Z4 this month, a 24 month lease is definitely the way to go. BMW's lease money factors for that term are half of what they are for any other length lease. If you were to lease a 2005 BMW Z4 2.5i through BMW Financial Services right now for 24 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00100 and 65%, respectively. Negotiate as attractive a selling price as you can on the Z4 that you want, keeping in mind that BMW is currently providing $2,500 dealer cash on this model that will help you to arrive an attractive price. Once you have agreed upon a selling price, have the dealer calculate your car's lease payment using the aforementioned numbers. It is in your best interest not to make any sort of down payment on your 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 Z4 would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all.

Let me know if you have any other questions.

Car_man
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s130t1

I am looking at my options for leasing a car, that will be used as my primary transportation during the winter months (not going through another winter in my 350Z!). I don't have much of a clue as to what it is I "want", so am looking at it from a financial standpoint. Ideally, I'd like to stay in the sub $400 a month category, with as littke out of pocket as possible (don't see the point in trying to obtain the car of my dreams since it will only be used 3-4 months a year) and need something with 4WD/AWD to get me through the snow. Would also prefer a wagon or small SUV (non American), as the extra room would come in handy

Any suggestions on what is out there that meets this criterion? As I said I am open to sugggestions and could literally go for anything from a Kia Sorento and Suzuki XL7 up to an Audi or BMW.

thanks in advance everyone!

CarMan@Edmunds

Hi genegray. You should be much better off if you waited until you are closer to the scheduled end of your C-Class lease to get a new vehicle, but if you have to get a new truck right now let's take a look at the deal that you are getting. It looks to me as though the price that you were quoted for the ML350 that you want is around $500 to $750 over invoice. This sounds like a very reasonable price for this model right now, but you may want to stop by the following discussion to see how much other community members have paid for one recently: "Mercedes Benz M-Class: Prices Paid & Buying Experience".

Let's try to calculate a lease payment on this truck for you using Mercedes-Benz actual lease program. I believe that your truck's capitalized cost is ($43,148 selling price + $3,874.65 negative equity - $2,500 capitalized cost reduction). Is this number right? Let me know and I will try to find out what Mercedes-Benz Credit's current Tier 1 lease money factor and residual value are like for the truck that you are interested in so that we can estimate its payment.

Car_man
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CarMan@Edmunds

Hi legar. It is not difficult to tell how good a vehicle's lease money factor is. To convert a money factor into an approximate money factor equivalent, multiply it by 2400. For example, the money factor that you mentioned, .00290, is equivalent to an interest rate of just under seven percent. This is not very good. A 3 year, 12,000 miles per residual value 51% is OK, but vehicles with really strong residual values for a similar lease, like a BMW 3-Series, would be closer to 60%.

Car_man
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CarMan@Edmunds

Hello glockfan. Volvo is no longer providing lease support on the 2005 XC90 V8. It replaced its special lease money factors for this truck with $2,575 dealer cash. As a result, if you were to lease one through Volvo Finance right now, you would have to use its standard lease program, which is not very good. You would probably be better off using this dealer cash to negotiate as attractive a selling price as possible and then leasing it through an independent bank. What bank is the lease that you were quoted through? What sort of lease money factor and residual value were used to arrive at the payment that you were given? If you let me know, I can give you my opinion of them.

Car_man
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glockfan

Thanks Carman. I am also looking at a purchase of a Toyota 4-Runner. I wlll get the specifics if I go the Volvo route.

crandleman

Car_man,

Any word on new deals for September? Residuals and money factors for Tier 2 with Toyota and Standard Lease Terms for Honda Financial would help.

Thanks,

Chris 9/5/05

CarMan@Edmunds

Hi tsb. I have not had an opportunity to take a look at Honda's new September lease program for this truck yet. I should have an opportunity to within the next couple of days. Post a quick reminder for me later on this week and I will be happy to fill you in on what I have been able to find out. Talk to you soon.

Car_man
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CarMan@Edmunds

Hi msdavis. Volkswagen was not providing any lease cash on the 2005 Phaeton in August. You are correct, its new September program is not scheduled to be published until the 7th. I do not know what it will be like yet, but I should be able to give you an idea of what it is like if you check back with me late this week.

Car_man
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CarMan@Edmunds

Hello motorista. Wow, what are the odds of having two questions about an expensive car like the Phaeton in a row? 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.

If I was in your situation, I personally would finance this car rather than lease it. I can still tell you what VW's lease program for it is like, however its new September program will not be published until September 7th. Post a quick reminder for me towards the end of this week, with this car's full MSRP (with the destination charge added in) and I will be happy to give you my opinion of your deal and calculate a sample lease payment on the car that you are considering using VW Credit's new lease program.

Car_man
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austru

Check out a 4WD Toyota Matrix with first payment and taxes you should be under the $350 mark.

pooh1952

I have an Offer for an Infiniti 2005 G35 AWD for Edmunds Invoice Price. The Lease details are Money Factor of .00113 (2.7%); Residual of 59%, At signing owe $2365 which is (1st mo pmt; sales taxes; $750 Bank fee; $45 Dealer fee; 12.50 Tire Fee; $135 new plates) Is this a good lease offer? Seems to me better than most.

Also, since NYS returns to traditional leasing tomorrow, is there any advantage to waiting? Infiniti says THIS deal is only on the table through tomorrow which seems consistent with their web site and TV offers.

dave328

I just signed a lease for a Infiniti M45 with Journey and NAV.

MSRP 52510
Cap cost 48999(invoice + 1000) + 550(acquisition fee) = 49549
Drive off 1131 (first month payment + reg)
42 months
634.95 + 49.21 (7.75 CA tax) = 684.16/mo

I am not sure what the residual is for 42mos, I think 57%. I was supposed to get the base MF of 0.00202. However, by my calculation, it seems a bit off. Did I get the promised MF or was there a last minute adjustment?

Thanks.

genegray

Thanks for the response, Car_man.
Yes, these are the numbers the dealer gave me for the new '06 ML350
$43, 148 agreed selling price (with appearance and sunroof pack)
$3,874.65 negative equity (from the '05 C240 lease)
$2,500 total cash out.
Please do estimate the monthly payment for this truck. Dealer said it's $780.03 (with tax based on 7.75% tax rate)

CarMan@Edmunds

Here's the information that you're looking for techbiz. If you were to lease a 2006 BMW 530xi through BMW Financial Services right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00195 and 62%, respectively.

Car_man
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CarMan@Edmunds

Hello plym_rock. I would be more than happy to try to give you an idea of what sort of monthly payment you can expect to pay on the truck that you are interested in. 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 selling price. Also, Lexus' August lease program was scheduled to run through September 5th. I have not had an opportunity to take a look at its new September program that is supposed to come out today yet. I should have a good idea of what it is like later on this week. Post a reminder for me then with the pricing info that I need and I will work up a sample lease payment for you.

Car_man
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CarMan@Edmunds

Hi kg6c. The reason why the low prices that you were quoted are not available on leases is that many manufacturers' cash incentives are not compatible with their special lease programs. This is the case with the VW Touareg. Volkswagen is currently providing $3,000 dealer cash on the V6 Touareg and $4,000 on the V8 Touareg. This dealer cash cannot be used in conjunction with its special lease program though. VW is actually scheduled to publish a new lease program tomorrow. If you check back with me in a few days, I can tell you what it is like. We can even calculate a sample lease payment on the truck that you are interested in if you would like.

Car_man
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CarMan@Edmunds

Welcome raysx5. Using Infiniti's August lease program and the prices that you mentioned in your post, an MSRP of $36,700 and a selling price of $34,100, I estimate that the car you are interested in should have a 36 month, 15,000 miles per year zero down, pre-tax monthly payment of around $466. For the car with navigation, MSRP $38,700 / selling price $34,900, I come up with a payment of around $459 for an otherwise identical lease. Both of the selling prices that you were quoted look reasonable to me, but you may want to stop by the following discussion to see how much other community members paid for similar cars lately: "Infiniti G35: Prices Paid & Buying Experience". I'm not sure why the lease calculator that you are using came up with different monthly payments. Where is the calculator located, on-line? Many of the on-line lease calculators are not very accurate because they do not use banks' actual money factors and residual values.

Car_man
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CarMan@Edmunds

Hi crg4. If Ford is providing a $2,000 cash incentive on leases of the truck that you are interested in, you need to take it into account when negotiating your vehicle's selling price. You cannot just automatically deduct it from the price that you were quoted because the dealer may already be taking it into account. A lease rate of 4.0% is a very reasonable interest rate to pay on a lease of this truck right now. Given how late it is in the model year, dealers will be anxious to unload any remaining 2005 models that they have on their lots. As a result, I am not surprised that '05 Escapes are going at or even slightly below invoice before the deduction of any available cash incentives. For more feedback on this truck's price, you may wan to stop by the following discussion: "Ford Escape/Mazda Tribute/Mercury Mariner: Prices Paid & Buying Experience".

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CarMan@Edmunds

Congratulations on your new ride, beemerluv. It is difficult for me to give you my opinion on this deal without knowing what your car's full MSRP (with the destination charge added in) is. If you let me know, I will be happy to share my thoughts on it with you.

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CarMan@Edmunds

Hi someguy1. 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 got using Acura's actual lease program for you if you let me know what these numbers are.

Car_man
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CarMan@Edmunds

Hi harvpt. Many of the banks that stopped leasing vehicles to consumers in New York have already resumed doing so, either a few weeks ago or as of September 1st. A number of banks, like GMAC, have plans to resume leasing vehicles to New York residents in the near future, but have not already started to do so. Unfortunately, I do not know exactly when Subaru's captive finance company plans to start leasing to New York residents again.

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dderose

I was curious as to hear if any one has terminated their lease early through companies like Lease Trader (same as Auto Trader except they advertise lease take overs only). There are a few of them out there and I do not have the money to waste on ads that will not get seen.

If not, any ideas on how to get out early:

2004 Pontiac Grand Prix
15000
Owe on lease about $11,000 in payments
Trade in is about $12,000
Buyout around $18,000

Thank you.

njdriver1

Thanks, Car Man.
Please post the September lease program as soon as you get it. I've still got a discrepancy with the residual percentage quoted by the dealer and the number you posted. Since we won't be getting the car by today, anyway, I'll have to run the numbers under the September program.
Thanks again, CM.

pooh1952

Car_Man- can you help me with this? Forgot to mention MSRP is $37100 and Sale price is $33960. Pmts are $399/mo. Other details in main message #23713

genegray

Car_man,
Yes, these are the numbers the dealer gave me for the new '06 ML350
The msrp on this vehicle is $45155.00
$43, 148 agreed selling price (with appearance and sunroof pack)
$3,874.65 negative equity (from the '05 C240 lease)
$2,500 total cash out.
according to the dealer today, the residual amount on the ML is $29366.00 for 12000 miles per year.
Please do estimate the monthly payment for this truck. Dealer said it's $780.03 (with tax based on 7.75% tax rate)
Thanks in advance.

martyt1

Hey Carman,
Could you please tell me what the residuals and MF's are on both 2005 and 2006 Volvo V50 T5 model years? I would need a 3 year lease with at least 12,000 miles/year. Thank you.

crg4

I'll check out this forum. Thanks for your quick response, Car_man!

crg4

plym_rock

Hi Car_man,

Thanks for your assistance.
Here are the details for the Lexus 400H:
MSRP $49,725 including the $650.00 destination charge
Selling price $46,040=$1,700 above invoice
Please let me know what the payment should be for a lease with the new program for September.

Thanks,
plym_rock

newmanba

Hi Car Man,

I've placed an order for a 2006 that will be here in two weeks and I'm deciding between leasing and buying. Do you have any sense of the Lexus lease programs that are being offered on this vehicle? The sticker price is about $46,000, invoice is $40,400 and the negotiated price is $40,900. I would like a 36 month lease with 12k miles per year. Thanks again for the help.

stuartbonia

Car Man:

Please let me know the September 2005 lease factors for the 2005 4Runner for both the SR5 and the Sport at 12k per year for 36 months.

Thanks

techbiz

Thanks very much -- do you mind telling me the monthly payment you calculated? Or I should just use Edmunds' lease calculator?

banneheim

Hey Car Man:
Do dealers still receive "holdback" on a lease versus a purchase?

bdr127

Do dealers still receive "holdback" on a lease versus a purchase?

Some manufacturers don't have holdback.... Otherwise, if they do, then they receive that holdback percentage for any sold unit, regardless of financing. Check out this Edmunds link for info on holdback, and who has it and who doesn't:

http://www.edmunds.com/advice/incentives/holdback/index.html

mcho3

:confuse: well best price i got on 2005 acura TL/ nav is 449/month including tax/lic. with $2500 down, lease for 42month, 12k/y, and with using Honda. the residual they were using was 53%, MF was 0.0023. I am trying to talk them into giving me 15k/y at this price when i walk in this friday. what do you think about this deal?
thanks mike

beemerluv

$52190 is the full MSRP for the car, equipped the way I want it.

Thanx.

beemerluv

pardon me for butting in, but you have caught my attention with this one, since I've just dropped 2k on a lease down payment, I do not intend to purchase this vehicle at the end of the lease, and even though the dealer offered me a deal with no money down, I opted to put put the money down to reduce my monthly nut, so with that in mind, if the car is stolen, or totaled out, would I not have basically paid out the same amount of money? by comparison, if I were financing this car, and some misfortune were to happen upon it, the insurance company would still pay the bank and I would still get nothing since in either case, the car technically belongs to the bank. It seems to me that the only purpose a downpay( cap. cost red.) serves in a lease situation is to reduce your monthly payment, (making some of your lease payments upfront) but if you loose the car somehow, you get nothing, but would this not also be the case if I were financing the vehicle? and if I put no money down, then I'm stuck paying considerably more than I would like to per month, I need help with this.

Thanks in advance.

kyfdx

Two examples...

1) $2000 down, $450 monthly payment

2) ZERO down, $500 monthly payment

After three months, your outlay in example 1) is $3350.. Your outlay in example 2) is $1500...

If the car is stolen after 3 months, then you've lost $1850 by choosing example 1)..

As time goes on, the spread becomes smaller, naturally....

regards,
kyfdx
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tiger93

Car_man,

Can you look up for me the September values for MF and Residual % on a 2006 RX330 AWD & Nav; 3 yr/15k miles?

Thanks!

cnj

Hello Car_Man,
I am seeking your expert advise. My husband and I considering leasing a 2006 BMW 530i sedan. MSRP is $54295 which includes the destination charge of $695 The invoice price is $49705 using the NADA guide website. We went into the dealership this weekend. They quoted us a variety of lease price options. the lowest was $815 with approximately $2000 down. Do I have room to neogiate the price even if I lease? What would be a fair amount we ask for? I did not know our options. Whatever advice you can provide, we would greatly appreciate.

Thanks,
Christine

drtravel

Looking for the residual and mf for the X3 and X5 36 months and 10K miles. Would also like to know the same for 12K miles.

BMW is offering a $5,000 cash back program on its X5 - can I use this in the lease?

Thanks

retread21

I am considering taking over a lease through "Lease Trader". Can anyone tell me of their experience with this company??
Thank you.

arrosen

Car Man

Can you post the residuals and MFs for a 2005 Chrysler T&C Limited and a Dodge Grand Caravan SXT. August numbers are fine if you don't have the September program yet.

Thanks!

nick_metro

Hi Car_Man,

Can you tell me the current residual and mf's 2005 Acura TSX non navi. I am looking at a 36 month lease. I was offered 384/mo for 42 months with 1400 out of pocket based on a residual of 53% and mf of 0.00240.

Thanks & Regards,
-Nick

doctorevil

Hi carman, I'm considering a similar lease, what does the payment come out to on this? thanks.

x021627

last week with no haggling a dealer offered me a 36 mos. 15K lease of a tl with navi for $499/mo, no money down. Money factor was .00180.

black6speed30

Can you please post the current (Sept 05) specifics for a lease on a Tundra in Utah? 36 mos, 15k miles.

Are there better deals on the 05 (over the 06?) My first pref is the SR5 DCab 4x4, but could be persuaded to a diff model based on lease attractiveness, as long as its 4x4.

Thanks!

roblitz

I can lease a 2005 Maxima for $399 with $0 down today. The 2006 is $50 a month higher. If I wait until Oct. 31 (when my present Lexus lease expires) the 2005's will be gone. At that time, will 2006 model price come down to same level? I'd also save on making payments on 2 cars in Oct. Please advise.

motorista

Thank you for your reply, Car Man! I really appreciate your advice.
So, here's my gentle reminder, as you requested, plus a recap of where I am:

- The car:
2005 Phaeton V8 w/ PCX Comfort and Cold Weather package and 4F6 Keyless Access, MSRP 73,955 including 1,300 gas guzzler tax and 655 destination charge.

- My situation: at least 20kmiles/year, possibly more. I have a trade valued at 17500 on which I owe approx. 13,300. I can put down the difference towards the new car if opportune.

- What I was offered (*before* VW's latest incentives of 9/7):
Selling Price 68,539 with zero down. To compute amount to be financed add 7% sales tax and about 1000 for title, registration & Misc.
Lease: 48 x 969, 20kmiles/year, residual approx 29500. Or
Buy VW financing 66 x 1185 @ 2.9%. Or
Buy bank financing net of dealer 5500 cash incentive, 60 x 1259 @ 5.24%

I understand that VW has now increased the dealer cash to 7500 for bank financing, and added a new 2000 dealer cash incentive for VW financing. I still don't know if they sweetened the lease terms.

Let me know what you think.
Motorista