Four Ways To Spot a Good Lease

Edmunds.comEdmunds.com Member, Administrator, Moderator Posts: 10,137
edited September 2014 in General

imageFour Ways To Spot a Good Lease

Some cars make better candidates for leasing because of their high residual value.

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  • scmike2scmike2 Member Posts: 1
    The Reason they did not return to a Honda lease is because they Fell in love with the car and kept it. Many honda leasees keep the car.
  • earnhardthondaearnhardthonda Member Posts: 0
    It should be noted that the customer retention article came from leasetrader.com which specializes in people transferring their lease to other people. The article on their website specifically mentions that the data was polled from from their own members. So all that one can infer from the article is that Honda is not very friendly when it comes to transferring leases to another lessee. This is a very small % of people that lease vehicles. As far as most lease customers are concerned, Honda is among the most friendly when it comes to leasing. For example Honda has no disposition fee when the vehicle is turned in. Honda also gives a $1,500 waver for damage to the vehicle when it's returned. Many times Honda customers are able to extend their lease month to month for up to 2 years. Honda also has some of the best residual values and lease deals on the market. The author of this article should have done more research instead of quoting an article from a website that most have never heard of until today.
  • rutiglianorutigliano Member Posts: 1
    I live in the Sarasota , Fl. Area and the Honda Dealers are offering free leather in a base accord if leased can you tell me what its all about ??
  • dweiner51dweiner51 Member Posts: 0
    This is interesting because a Subaru dealer told me today that purchasing is better than leasing for cars (like Subaru, supposedly) that hold their value and don't depreciate much. This is just the opposite of what I think the above article is saying. It seemed to make sense to me when the dealer said this because you will have a higher buy-out price at the end of a lease for a car that holds its value.

    I am confused!
  • narasimhannarasimhan Member Posts: 3
    thanks
  • amy2amy2 alabamaMember Posts: 1
    Your lease payments are based on the depreciation of the vehicle. So if it doesn't depreciate and holds it value your payments are less.
  • MichaellMichaell ColoradoModerator Posts: 193,195
    amy2 said:

    Your lease payments are based on the depreciation of the vehicle. So if it doesn't depreciate and holds it value your payments are less.

    But, the MF could be higher and the incentives lower, and the payment will go up. It's not exclusively about the depreciation.

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  • GeorFGeorF CaliforniaMember Posts: 1
    Higher "residual" is always preferred.
    If you want to walk away, then lease; higher residual% is LOWER lease payments.
    If you want to keep the vehicle, then buy; higher residual% is higher resale value when you turn it over.
  • SCRSCR Member Posts: 3
    Hi. In zip 80124. Looking at f150 lariat 4x4 super crew cab 3.5 L eco boost max towing package. 36 mo lease, 12k/yr, great credit (750+). Finance through Ford. What is a good M.F. / APR to expect? Thanks. SCR
  • kyfdxkyfdx Moderator Posts: 197,778
    SCR said:

    Hi. In zip 80124. Looking at f150 lariat 4x4 super crew cab 3.5 L eco boost max towing package. 36 mo lease, 12k/yr, great credit (750+). Finance through Ford. What is a good M.F. / APR to expect? Thanks. SCR

    Hi,

    We have a dedicated discussion for F-150 lease questions.
    Please re-post, here:
    https://forums.edmunds.com/discussion/52733/ford/f-150/2019-ford-f-150-lease-deals-and-prices#latest

    Edmunds Price Checker
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    Did you get a good deal? Be sure to come back and share!

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  • shadowmicashadowmica VermontMember Posts: 18
    Why when putting numbers from the computer worksheet the dealer gives me on a lease in a lease calculator like "Leasematic" the payment from the dealer is $60 Higher? How are they padding the payment with the same numbers?
  • MichaellMichaell ColoradoModerator Posts: 193,195

    Why when putting numbers from the computer worksheet the dealer gives me on a lease in a lease calculator like "Leasematic" the payment from the dealer is $60 Higher? How are they padding the payment with the same numbers?

    Are you sure that all of the numbers are the same? The only two real variables in a lease calculation are the money factor and the adjusted cap cost.

    Have the dealer disclose both of those numbers to you then you should be able to do a direct comparison.

    Edmunds Price Checker
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    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


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    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

  • Robinsky406Robinsky406 OntarioMember Posts: 1
    do I have pay GST on the residual value of the vehicle if I choose to buy it at the end of the lease? Are there any other surprise charges at the end of the lease assuming I am in the total kilometers and I intend to keep the vehicle?
  • MichaellMichaell ColoradoModerator Posts: 193,195

    do I have pay GST on the residual value of the vehicle if I choose to buy it at the end of the lease? Are there any other surprise charges at the end of the lease assuming I am in the total kilometers and I intend to keep the vehicle?

    I would say yes, but I'm not 100% certain how leases work in Canada

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


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  • janakmehtajanakmehta ScottsdaleMember Posts: 4
    What is the Money Factor this month for Mercedes GLB 250 in Arizona? (Zip 85254)
  • EMCEMC Member Posts: 7
    Hello, on #2: " If you come across that scenario, ask the dealership if it could complete the lease with a bank that charges a lower money factor." I am a little confused. So dealerships have others lenders to choose from? For instance, the dealership can choose another lender besides Kia Motor Finance? I am looking at a new Kia Telluride but the money factor they are offering is almost double compared what the buy rate is, according to the forums. Thank you!
  • kyfdxkyfdx Moderator Posts: 197,778
    EMC said:

    Hello, on #2: " If you come across that scenario, ask the dealership if it could complete the lease with a bank that charges a lower money factor." I am a little confused. So dealerships have others lenders to choose from? For instance, the dealership can choose another lender besides Kia Motor Finance? I am looking at a new Kia Telluride but the money factor they are offering is almost double compared what the buy rate is, according to the forums. Thank you!

    If a dealer has access to a better program from an independent bank, they are likely to use it.

    I doubt if any bank is beating KMF, right now, though.

    You are never going to get a good lease deal on a popular model, though.

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • EMCEMC Member Posts: 7
    kyfdx said:

    EMC said:

    Hello, on #2: " If you come across that scenario, ask the dealership if it could complete the lease with a bank that charges a lower money factor." I am a little confused. So dealerships have others lenders to choose from? For instance, the dealership can choose another lender besides Kia Motor Finance? I am looking at a new Kia Telluride but the money factor they are offering is almost double compared what the buy rate is, according to the forums. Thank you!

    If a dealer has access to a better program from an independent bank, they are likely to use it.

    I doubt if any bank is beating KMF, right now, though.

    You are never going to get a good lease deal on a popular model, though.
    Thank you so much for you reply. I figured I won't be able to get a good deal on this Telluride...
    So for a Telluride SX FWD, you mentioned:

    Kia Current offer:
    -- .00175 MF and 59% residual
    -- $2,200 lease cash

    Dealership is offering me:
    -- 59% residual, $2,200 lease cash
    -- $714 a month, 0 down, 36 months, 820 credit score

    -- Is the money factor on their offer .00326 MF??


    I would totally be happy with the .00175 MF. I was always under the impression the MF was set by the lender and can't be marked up by the dealership :(


  • kyfdxkyfdx Moderator Posts: 197,778
    EMC said:

    kyfdx said:

    EMC said:

    Hello, on #2: " If you come across that scenario, ask the dealership if it could complete the lease with a bank that charges a lower money factor." I am a little confused. So dealerships have others lenders to choose from? For instance, the dealership can choose another lender besides Kia Motor Finance? I am looking at a new Kia Telluride but the money factor they are offering is almost double compared what the buy rate is, according to the forums. Thank you!

    If a dealer has access to a better program from an independent bank, they are likely to use it.

    I doubt if any bank is beating KMF, right now, though.

    You are never going to get a good lease deal on a popular model, though.
    Thank you so much for you reply. I figured I won't be able to get a good deal on this Telluride...
    So for a Telluride SX FWD, you mentioned:

    Kia Current offer:
    -- .00175 MF and 59% residual
    -- $2,200 lease cash

    Dealership is offering me:
    -- 59% residual, $2,200 lease cash
    -- $714 a month, 0 down, 36 months, 820 credit score

    -- Is the money factor on their offer .00326 MF??


    I would totally be happy with the .00175 MF. I was always under the impression the MF was set by the lender and can't be marked up by the dealership :(


    Kia dealers can markup the money factor, but not by that much.

    You can't reverse engineer the MF without all of the other numbers
    MSRP
    Selling price
    Adjusted CAP cost.

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • EMCEMC Member Posts: 7
    kyfdx said:

    EMC said:

    kyfdx said:

    EMC said:

    Hello, on #2: " If you come across that scenario, ask the dealership if it could complete the lease with a bank that charges a lower money factor." I am a little confused. So dealerships have others lenders to choose from? For instance, the dealership can choose another lender besides Kia Motor Finance? I am looking at a new Kia Telluride but the money factor they are offering is almost double compared what the buy rate is, according to the forums. Thank you!

    If a dealer has access to a better program from an independent bank, they are likely to use it.

    I doubt if any bank is beating KMF, right now, though.

    You are never going to get a good lease deal on a popular model, though.
    Thank you so much for you reply. I figured I won't be able to get a good deal on this Telluride...
    So for a Telluride SX FWD, you mentioned:

    Kia Current offer:
    -- .00175 MF and 59% residual
    -- $2,200 lease cash

    Dealership is offering me:
    -- 59% residual, $2,200 lease cash
    -- $714 a month, 0 down, 36 months, 820 credit score

    -- Is the money factor on their offer .00326 MF??


    I would totally be happy with the .00175 MF. I was always under the impression the MF was set by the lender and can't be marked up by the dealership :(


    Kia dealers can markup the money factor, but not by that much.

    You can't reverse engineer the MF without all of the other numbers
    MSRP
    Selling price
    Adjusted CAP cost.
    Sorry!
    -- MSRP: $43,470
    -- Sales Price: $43,470
    -- Adjusted Cap Cost: $44,961.69

    Thank you!!
  • EMCEMC Member Posts: 7
    EMC said:

    kyfdx said:

    EMC said:

    kyfdx said:

    EMC said:

    Hello, on #2: " If you come across that scenario, ask the dealership if it could complete the lease with a bank that charges a lower money factor." I am a little confused. So dealerships have others lenders to choose from? For instance, the dealership can choose another lender besides Kia Motor Finance? I am looking at a new Kia Telluride but the money factor they are offering is almost double compared what the buy rate is, according to the forums. Thank you!

    If a dealer has access to a better program from an independent bank, they are likely to use it.

    I doubt if any bank is beating KMF, right now, though.

    You are never going to get a good lease deal on a popular model, though.
    Thank you so much for you reply. I figured I won't be able to get a good deal on this Telluride...
    So for a Telluride SX FWD, you mentioned:

    Kia Current offer:
    -- .00175 MF and 59% residual
    -- $2,200 lease cash

    Dealership is offering me:
    -- 59% residual, $2,200 lease cash
    -- $714 a month, 0 down, 36 months, 820 credit score

    -- Is the money factor on their offer .00326 MF??


    I would totally be happy with the .00175 MF. I was always under the impression the MF was set by the lender and can't be marked up by the dealership :(


    Kia dealers can markup the money factor, but not by that much.

    You can't reverse engineer the MF without all of the other numbers
    MSRP
    Selling price
    Adjusted CAP cost.
    Sorry!
    -- MSRP: $43,470
    -- Sales Price: $43,470
    -- Adjusted Cap Cost: $44,961.69

    Thank you!!
    -- Sales tax: 6.25%
    -- Zip Code: 76131
  • kyfdxkyfdx Moderator Posts: 197,778
    EMC said:

    EMC said:

    kyfdx said:

    EMC said:

    kyfdx said:

    EMC said:

    Hello, on #2: " If you come across that scenario, ask the dealership if it could complete the lease with a bank that charges a lower money factor." I am a little confused. So dealerships have others lenders to choose from? For instance, the dealership can choose another lender besides Kia Motor Finance? I am looking at a new Kia Telluride but the money factor they are offering is almost double compared what the buy rate is, according to the forums. Thank you!

    If a dealer has access to a better program from an independent bank, they are likely to use it.

    I doubt if any bank is beating KMF, right now, though.

    You are never going to get a good lease deal on a popular model, though.
    Thank you so much for you reply. I figured I won't be able to get a good deal on this Telluride...
    So for a Telluride SX FWD, you mentioned:

    Kia Current offer:
    -- .00175 MF and 59% residual
    -- $2,200 lease cash

    Dealership is offering me:
    -- 59% residual, $2,200 lease cash
    -- $714 a month, 0 down, 36 months, 820 credit score

    -- Is the money factor on their offer .00326 MF??


    I would totally be happy with the .00175 MF. I was always under the impression the MF was set by the lender and can't be marked up by the dealership :(


    Kia dealers can markup the money factor, but not by that much.

    You can't reverse engineer the MF without all of the other numbers
    MSRP
    Selling price
    Adjusted CAP cost.
    Sorry!
    -- MSRP: $43,470
    -- Sales Price: $43,470
    -- Adjusted Cap Cost: $44,961.69

    Thank you!!
    -- Sales tax: 6.25%
    -- Zip Code: 76131
    $660/mo.

    If they markup the money factor to .00225 MF
    $695/mo.


    But, why even consider a vehicle with no discount?

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • EMCEMC Member Posts: 7
    kyfdx said:

    EMC said:

    EMC said:

    kyfdx said:

    EMC said:

    kyfdx said:

    EMC said:

    Hello, on #2: " If you come across that scenario, ask the dealership if it could complete the lease with a bank that charges a lower money factor." I am a little confused. So dealerships have others lenders to choose from? For instance, the dealership can choose another lender besides Kia Motor Finance? I am looking at a new Kia Telluride but the money factor they are offering is almost double compared what the buy rate is, according to the forums. Thank you!

    If a dealer has access to a better program from an independent bank, they are likely to use it.

    I doubt if any bank is beating KMF, right now, though.

    You are never going to get a good lease deal on a popular model, though.
    Thank you so much for you reply. I figured I won't be able to get a good deal on this Telluride...
    So for a Telluride SX FWD, you mentioned:

    Kia Current offer:
    -- .00175 MF and 59% residual
    -- $2,200 lease cash

    Dealership is offering me:
    -- 59% residual, $2,200 lease cash
    -- $714 a month, 0 down, 36 months, 820 credit score

    -- Is the money factor on their offer .00326 MF??


    I would totally be happy with the .00175 MF. I was always under the impression the MF was set by the lender and can't be marked up by the dealership :(


    Kia dealers can markup the money factor, but not by that much.

    You can't reverse engineer the MF without all of the other numbers
    MSRP
    Selling price
    Adjusted CAP cost.
    Sorry!
    -- MSRP: $43,470
    -- Sales Price: $43,470
    -- Adjusted Cap Cost: $44,961.69

    Thank you!!
    -- Sales tax: 6.25%
    -- Zip Code: 76131
    $660/mo.

    If they markup the money factor to .00225 MF
    $695/mo.


    But, why even consider a vehicle with no discount?
    The dealer admits they're marking up the msrps, this one actually has a $5,000 above msrp, even on their website. As a "loyal repeat customer" they're "willing" to sell it at msrp, :(

    I'm using the LeaseHackr calculator to get my calculations.

    So, why on earth is it $714 a month?? Is it possible there's some kind of hidden add ons? Extended warranties, paint protections, etc..?
  • kyfdxkyfdx Moderator Posts: 197,778
    EMC said:

    kyfdx said:

    EMC said:

    EMC said:

    kyfdx said:

    EMC said:

    kyfdx said:

    EMC said:

    Hello, on #2: " If you come across that scenario, ask the dealership if it could complete the lease with a bank that charges a lower money factor." I am a little confused. So dealerships have others lenders to choose from? For instance, the dealership can choose another lender besides Kia Motor Finance? I am looking at a new Kia Telluride but the money factor they are offering is almost double compared what the buy rate is, according to the forums. Thank you!

    If a dealer has access to a better program from an independent bank, they are likely to use it.

    I doubt if any bank is beating KMF, right now, though.

    You are never going to get a good lease deal on a popular model, though.
    Thank you so much for you reply. I figured I won't be able to get a good deal on this Telluride...
    So for a Telluride SX FWD, you mentioned:

    Kia Current offer:
    -- .00175 MF and 59% residual
    -- $2,200 lease cash

    Dealership is offering me:
    -- 59% residual, $2,200 lease cash
    -- $714 a month, 0 down, 36 months, 820 credit score

    -- Is the money factor on their offer .00326 MF??


    I would totally be happy with the .00175 MF. I was always under the impression the MF was set by the lender and can't be marked up by the dealership :(


    Kia dealers can markup the money factor, but not by that much.

    You can't reverse engineer the MF without all of the other numbers
    MSRP
    Selling price
    Adjusted CAP cost.
    Sorry!
    -- MSRP: $43,470
    -- Sales Price: $43,470
    -- Adjusted Cap Cost: $44,961.69

    Thank you!!
    -- Sales tax: 6.25%
    -- Zip Code: 76131
    $660/mo.

    If they markup the money factor to .00225 MF
    $695/mo.


    But, why even consider a vehicle with no discount?
    The dealer admits they're marking up the msrps, this one actually has a $5,000 above msrp, even on their website. As a "loyal repeat customer" they're "willing" to sell it at msrp, :(

    I'm using the LeaseHackr calculator to get my calculations.

    So, why on earth is it $714 a month?? Is it possible there's some kind of hidden add ons? Extended warranties, paint protections, etc..?
    Just $20/mo.off, with a marked up money factor. The actual paperwork will always tell the tale.

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

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