Lease Questions - Ask Here

CarMan@Edmunds · May 2001

Hi SSTaylor. I know exactly how you feel. I was recently in the market, looking to lease a new car. There are still good deals out there, but one certainly has to look a lot harder to find them today than they did just a few years ago. Your situation is even more frustrating than mine was because you are in the market for a new truck. Truck residual values have fallen like a stone over the past year or so.

In answer to your specific lease questions, if leased through Ford Motor Credit right now in most areas the 36 month lease rate and 12,000 miles per year residual value for a 2001 Ford Expedition Eddie Bauer should be 6.5% and 45% respectively. Ford has enhanced the lease rate for this particular truck in a few select areas to 5.5% for 36 months.

If you decide to lease one through GMAC, I believe that the 36 month lease rate and 12,000 miles per year residual value for a 2001 Oldsmobile Silhouette Premiere Edition should currently be 5.15% and 45% respectively.

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CarMan@Edmunds · May 2001

Tgif888 and cpa4u, congratulations on your new I30s! I am glad that the information that I gave you was able to help you get such good deals. I was almost that the Infiniti I30 dealer cash was available nationally, that's why I told you to stick to your guns if your dealers tried to play dumb. Enjoy your new cars!

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CarMan@Edmunds · May 2001

Hi again gwarren. That was three whole years ago! Yikes, that certainly is hard to believe. Welcome back to the the Finance, Warranty, and Insurance Board. Here is the info that you're looking for. The 3 year 15,000 mile lease money factors and residual values for the vehicles that you are interested in if you lease them through their manufacturers' captive finance companies are the following: 2001 Acura MDX (non-Navigation & non-Touring) .00280 / 63%, 2001 Lexus RX 300 (non-Navigation & non-Silversport) 4WD .00300 / 58%, 2001 Infiniti QX4 4WD .00133 / 53%, and the 2001 Mercury Mountaineer 4WD 4.75% (about .00198) / 42%.

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gwarren · May 2001

Car_Man
thanks for the info, but sorry I forgot to state that on the Mountaineer I would only consider the "2002". That should increase the residual.
Also any opinions on my possibilities appreciated.
Thanks again
Gary Warren

mmcbride1 · May 2001

I hate to say it now, but that's why you shouldn't put anything down when you lease. Most likely, that money is gone.

sgtglok · May 2001

hey cgr45, sorry to hear about your loss!
i agree with s852's post - the first thing you should check with your insurance and they will come up with the value based not just on a blue book's, but they compare the values from a few books and take the average of that I think. That is of course minus your deductable, I assume it will be $500 since I also lease with Chase. Once the insurance company cuts the check on the full sum, you will need to take this matter either with Chase or back to the dealership, and ask them about your downpayment. If you negotiated the price of your car on your lease and it is less than MSRP's (this question is for Car_man's), then the actual difference of TMV and what the insurance check will be may not be that different. Then you may loose some of $3000 deposit, but I think you will get most of it back. On the other hand, if you paid taxes upfront, you can only make it better for yourself, if you think that you helped the 'needy' (or is it 'greedy') goverment by making an eXtra donation... The same goes for the fees. That's the dark side of the lease - know it, been there, know the feeling, yet lease again! Don't let things crush you - it's a beautiful life after all - hey, maybe after all you will get something else you wanted (just get your act together and straighten things with insurance/Chase first). GL.

svman · May 2001

Car_Man, On Oldsmobile website, they are promoting a lease offer on the 2002 Bravada. It seems like a fair deal, but do you know what they are offering specifically for residuals and money factor on this SUV for 3 yrs, 12k/year?

gperr · May 2001

Car_man,

Can you give me the current Residual/MF and incentive info on the following:

2001 Maxima SE (Auto)
2002 Infiniti G-20 (Auto)

30-39 months, 12K & 15K miles.

Thanks
Gregg

CarMan@Edmunds · May 2001

Gary, yes the 2002 Mercury Mountaineer certainly would have a higher residual value than the 2001 version would at this point. However, they probably will not be as high as one might think. It seems to me as though the Ford Explorer's residual values have taken a terrible hit over the last year. This could be for several reasons including the whole Firestone fiasco, the downward trend of truck residual values in general in the industry today, and perhaps even higher gasoline prices. The 3 year 15,000 miles per lease rate and residual value for a 2002 Mercury Mountaineer AWD leased through Ford Motor Credit right now should be 3.75% (equivalent to a money factor of around .00156) and 48% respectively.

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CarMan@Edmunds · May 2001

Svman, I am familiar with the sample leases that Oldsmobile advertises on their Web site. You are correct, the majority of these leases are very fair deals. Keep in mind though that most manufacturers leave a little meat on the bone for their dealers when they advertise lease payments. Just imagine how irritated their dealers would get if they advertised a really skinny deal on a particular vehicle and everyone came in wanting to get one at the advertised price. Not a pretty picture. The ads on the Olds site are a great reference point and starting place for one's negotiations. I believe that the current Bravada lease ad is based on a lease rate of 5.9% (equal to a money factor of about .00246) and a residual value of 51%.

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CarMan@Edmunds · May 2001

Gregg, I would be glad to. If you choose to lease a 2001 Maxima SE through Nissan Motor Acceptance Corp. prior to the end of the month their 36 month lease money factor for consumers with good credit should be .00220, the 15,000 miles per year residual value would be 51%, and the 12,000 miles per year residual value would be 52%. If you decide to lease a 2002 Infiniti G20 through Infiniti Financial Services prior to the end of the month the 36 month lease money factor should be .00265, the 15,000 miles per year residual value should be 54%, and the 12,000 miles per year residual value should be 56%.

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gwarren · May 2001

Car_Man,
Again many thanks but I am really slipping up. For some reason I think you can read my mind and anticipate my concerns.
The Lease requirements would be 12,000 miles per year. Can I just add 2% to the 15,000 mile figures? It seems that there is usually a 2% difference.

I know that although the Acura MDX seems to be the vehicle of choice and has a great residual, the dealers seem very confidant they can get Sticker or better.

So I shift gears to either the Infinity QX4 or Mountaineer. Although I also liked the Lexus RX300, even though it is a little smaller and more car-like. BY the way my current lease is up 7/3 and is with FMC on Mountaineer. They of course will give me the customer loyalty and pay my first month. So do I make the deal for end of June or wait for the July incentives?

pjonkheer · May 2001

Does anyone know the leasing rates on a 2001 Acura RL. Acura is now giving the dealer $4000 cash back. Any help on this is appreciated...

Thank You.

jeffreyb2 · May 2001

CarMan:

I understand that Porsche has just released a factory sponsored program on the Boxster and Boxster S - Dealer says 39 month lease - 10,000 miles ($0.30 overage) and .67 residual. On a $55,000 car - he says $715 per month plus taxes. Does that sound like a fair deal. The car is only discounted from list abt $1,000. $0 down (plus taxes)

Could you advise what is available now on a Audit TT Roadster Quattro (36 months - 15,000 miles)

Thanks,

jellzz · May 2001

Car Man:

I'm looking for the residual and money factor on a 2001 Highlander Limited, v6, AWD, 36 months and 12,000 miles

Thanks.

cgr45 · May 2001

Sgtglok,

Thanks for the advice. I spoke to my insurance company and Chase. They told me the same thing you said. After the claim is settle, I would have to speak to the dealer, which I already did. It looks like I'm not going to get much of it back. Maybe $1500. But, hey something is something. I most say that getting my car stolen has been one of the worse experiences of my life. Now, here's my question to guys out there. Should I lease another car again? Should I lease the same car?
I love the Prelude but, everytime I think of getting another I get this really bad feeling in my stomach. What you think?

jwilson1 · May 2001

I've been following your saga, cgr45, and my family was introduced to leasing following the loss of a car -- couldn't afford to purchase at the time.

But while I'm sure you didn't need to hear it right after the event, now is a good time for you to think about the wisdom of paying up front cap cost reduction money. In other words, whatever you look at, ask them to figure the payment with $0 cap reduction; you should get the formula from Edmund's leasing page so you can check them.

In terms of what to buy: decide what you want, and then what you want to pay monthly (but with no cap cost reduction:-)!!! If that puts the car out of reach, just don't lease it, find something less expensive ... unless of course you're willing to loose your money if it's stolen or destroyed in a wreck.

that is an awful experience. Good luck.

Take care.
Joe W.

CarMan@Edmunds · May 2001

Don't worry about it, Gary. I only provided you with the 15,000 miles per year residual values because that is the mileage that most companies base their published residual values on. You were correct when you guessed that the Ford Motor Credit low mileage, 12,000 miles per year, residual value adder is 2%.

It is tough to say what exactly will happen with the incentives for the Infiniti QX4, Mercury Mountaineer, and Lexus RX 300 in July. I can tell you that all three of these vehicles' manufacturers will be issuing new programs at the beginning of that month. Given the fact that a vehicle's residual values will naturally fall as the model year progresses, they would have to make a larger than normal enhancement to their lease cash or supported lease money factors to actually provide consumers with a lower lease payment. It is difficult to say if that will happen, but if I had to guess at this point I personally think that the monthly payments for these trucks will be very similar in July to what they are like today.

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CarMan@Edmunds · May 2001

Hi pjonkheer. Acura did away with their special lease money factors on the 2001 RL when they enhanced the Dealer Cash on it to $4,000. So if you decide to lease one through American Honda Finance Corp. right now you will have to use their standard lease money factors, which are actually very attractive. Their standard factors are currently as low as .00280 or .00270 depending upon the length of lease that you are interested in. When they did away with the lease support on the 2001 RL, Acura did introduce supported money factors on the 2002 model. The supported rate on this car is .00102. It's hard to believe that they are already providing such low interest rates on a 2002 model, but that is what they did.

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CarMan@Edmunds · May 2001

Hello Jeffrey. I am jealous, you certainly are looking at some great cars. They're perfect for the summer. The residual value that you were quoted for the 2001 Porsche Boxter that you are looking at certainly looks to me as though it is in the right neighborhood, but you never mentioned what sort of lease money factor the dealer that you are working with is charging you. Dealers usually have the ability to mark-up a bank's base lease money factors to bake additional profit into their deals. Right now Porsche's captive finance company has a lease money factor of around .00290 for the length of lease that you are talking about. I would be happy to calculate a sample lease payment for you if you let me know the exact MSRP of the vehicle that you are interested in, the exact price that you are being charged for it, and its exact equipment (including what sort of Transmission it has).

Audi really isn't providing any sort of support on the 2001 TT at this point. If you decide to lease one through their captive finance company for 3 years with 15,000 miles per you would have to use a lease money factor of .00300 and a residual value of 63%.

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CarMan@Edmunds · May 2001

Jellzz, as one might expect Toyota is not providing any sort of lease support on a truck that is as new and as popular as the new Highlander. So if you decide to lease one through Toyota Financial Services, you will have to use their standard lease money factor. I haven't seen what their standard rate is lately, but that last that I heard it was around .00360. It very well may be lower now, especially considering the fact that the Fed keeps lowering interest rates. The residual value for a 36 month 12,000 miles per year lease on a 2001 Highlander Limited AWD should currently be around 64%. Outside lending institutions often are able to provide more attractive lease terms than manufacturers' captive finance companies can on unsupported vehicles. So, the dealership that you purchase from may very well run your lease through a third party like Chase.

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njdriver1 · May 2001

I'm trying to reconcile MSRP with customer incentives on a chrysler t&c van. Does the $3,700 in customer and lease loyalty come off the invoice, or the msrp? Would you happen to the know the residual on a 36 mo, 15K/yr lease? I was told 47% and .0027 factor. But since my last lease, the price went up $3,500 and the residual fell, increasing the lease pmt by $135/mo.

ubrsf · May 2001

I Currently have a 98 K2 Jetta (special edition, with racks and the whole sha-bang) it has PW,PS,PD,AC,AT,Alloy Wheels,etc., I'am on a 48 month lease, I still have 17 months to go @ $288 monthly, the car only has 28,000 miles and is in top shape. I just called VW and they said the payoff for the car is $11,352. I have seen this car sold privately and at dealerships for $14,000-$16,000. What would be the best way to go about this? I know getting out of lease early is not a smart idea, but I think my payoff is not too bad. Should I get a loan and payoff the car and then turnaround and sell it, or how else could I go about this? your help is appreciated.

mmcbride1 · May 2001

Why do you want out?

wing5nut · May 2001

Car_man...after test driving the '02 Acura TL, TL Type S, and RL models, I'm still debating which car appeals to me the most. Could I trouble you for the current residuals and money factors on all three models, assuming 12k miles per year?

Many thanks!

wing5nut
Columbus, OH

pjonkheer · May 2001

Car_man,

Thanks for your response on the 2001 RL. Could I trouble you for the residual on a 48 month lease??

Thank You.

Also, does Edmunds TMV of the 2001 RL include the $4000 rebate?

fladriver · May 2001

You can do another lease, but next time put the $3000 in a savings account and use it to help you make the car payment. If you don't lease but instead buy your next car, what do you think would happen if the car you bought were stolen? You'd be out of luck just the same as you are now! The only way to avoid this loss is to lease with no money down and make sure you have gap insurance.

vince321 · May 2001

I'm interested in leasing a Saab 9-5 Aero. I recently test drove one and the sticker reflected a price of around $44K. With this in mind, what have other consumers leased this vehicle for? Ideally, I would like my payment to be no more than $500 per month. Any info or insight is much appreciated.

wing5nut · May 2001

Car-man...I guess it would help if I provided the lease term: 48 months.

Thanks!

wing5nut
Columbus, OH

curtnheidi · May 2001

If you sell it, you can have the buyer pay the check directly to VW. That way you avoid sales tax. Remember, VW is the actual title holder. Let the buyer pay them.

If you want out of the lease, try swapalease.com. I am a big fan of their service and you should be able to get some action on your lease with the low payment and low miles.

Also, if you think you can get that much value (14-16K) out of your car, you may want to go with the first option. But that seems pretty high to me.

Regards,

Curt

jwilson1 · May 2001

I agree, Car_Man, that it's unusual to support the '02 so early in its model life. The only reason I can think of is that they may want to keep inventory very low so the deck is clear when they introduce an '03 with many (rumored) changes...we'll see.

In the meantime, you indicated that the MF is all the way down to .00102. Can you give the rest of the numbers, too, please? Is there any dealer cash in the package? What is the residual? 36/12k, please. (I ask about dealer cash because I'm wondering about the 'guaranteed' cap cost of $39265 in the published deal that was quoted several posts above.)

Thanks for helping clarify the mystery before mine arrives!

Take care.
Joe W.

mmcbride1 · May 2001

Actually, he will either have to pay a dealer to buy it from VW, or he has to do it. I just ran into the same thing with Toyota Motor Credit when I terminated my lease. They will only let you or a dealer buy the car from them. I had to pay a dealer $300 to do the deal so I didn't have to pay sales tax (would have been $800).

ubrsf · May 2001

MMCBRIDE1
I want out, because i would like to get into a BMW 330i. I could have BMW deal with this situation, but some of the dealers that I have spoken to, seem to be unhelpful in this matter. Either that or they just don't like dealing with this kinds of matters.

CURT

Thanks for your response. I went to www.autotrader.com to see the value of 98 Jettas and the dealers are selling the GL's (with more miles than mine) which is a lower model, for 15-16K. Seems high, but VW's hold their value good. Thanks for your suggestions. I will check the swapalease.com site. thanks

cochese · May 2001

I was wondering if you could give me the residuals and Audi financial money factors for these two cars:

S4 41,950 36 & 39 months 10k/year
A6 2.7t 45,950 36 & 39 months 10k/year

And are there any specific lease deals on the A6 2.7t that include a cap cost reduction from the dealer, not out of my pocket?

P.S. I regret only finding out about this thread today, I have been on edmunds forever.....

Thanks in advance!

CarMan@Edmunds · May 2001

Hi njdriver1. Any sort of incentives that DaimlerChrysler has available on the vehicle that you are interested in should be subtracted from the best possible price that you are able to negotiate on it. Just make sure that you make it clear to the salesperson who you are working with that you don't want to take any incentives into account in your negotiations until after you have reached an initial price.

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CarMan@Edmunds · May 2001

As far as leases go, ubrsf, yours actually looks as though it would be easier to get out of early than most if that is what you decide to do. It is good to see that you have already contacted your bank to find out your car's purchase price and have researched what it appears to be selling for. Now that you have done some initial research, you have two options. You can either try to sell your Jetta on your own or try to trade it in at a dealership on a new vehicle. The latter choice will be much more convenient for you, but you usually will make out better financially by selling your car privately. You should probably line up a willing buyer or dealership that wants your car as a trade prior to shelling out all sorts of money for your car. By doing so, you will be able to make sure that you don't get stuck with your Jetta and have to sell it at a price that is less than what you had expected to get for it.

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CarMan@Edmunds · May 2001

Hi wing5nut. I would be happy to share that information with you. As one might expect, the 2002 TL's residual values are much stronger than the RL's are. The 36 month 12,000 miles per year residual for a 2002 Acura TL (without Navigation)is currently 64% versus only 53% for a 2002 RL (also without Navigation). Acura has tried to make up for this large gap in residuals by providing lease support on the 2002 RL. It is somewhat surprising that they have introduced such a low lease money factor on it at this point, but the 36 month factor on an '02 RL is presently .00102. If you were to lease a 2002 TL for the same term, you would have to use AHFC's standard lease money factor, which is still a solid .00280.

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CarMan@Edmunds · May 2001

Pjonkheer, it's no trouble at all. The 48 month American Honda Finance Corp. residual value for the 48 month lease (15,000 miles per year) of a 2001 RL is currently only 41%. The residual for RLs equipped with navigation systems would be even lower than that.

Given the fact that the True Market Value that Edmunds.com has listed for a 2001 RL is significantly below its dealer invoice price it certainly appears to me as though they are taking any available dealer incentives into account.

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mmcbride1 · May 2001

Unless you have a buyer already lined up (I didn't scroll back up, so you might), there's not much more they can do other than take your car in as a trade. If you've already got a buyer (I did), you have the dealer buy it from you for the exact sales price, you pay the dealer a fee ($300 in my case), and they sell the car to the buyer for the same price. It is pretty easy, but not as easy as it would be if the finance co. would let your buyer get it directly from them.

CarMan@Edmunds · May 2001

Wing5nut, oops I guess that will teach me to start answer questions prior to reading all of the new posts that were made. If you end up going with the 2002 RL, I definitely advise against leasing for the 48 month term that you mentioned. I say this because AHFC's special lease money factor on this car is only available for leases that are up to 39 months in length. If you lease one for 48 months, you would have to use their standard lease money factor of .00270. That's not too bad, but it is more than double the supported rate that is available for shorter terms. The 48 month, 12,000 miles per year residuals for the '02 RL & TL without Navigation are 46% and 58% respectively.

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CarMan@Edmunds · May 2001

You certainly are interested in some nice... and fast cars. These are the types of cars that make investing in a radar detector worthwhile

. If you decide to lease a 2001 Audi S4 through Audi Financial Services for 36 or 39 months and with 10k/year the lease money factor would be .00320 for both and the residual values would be 58% and 57% respectively. If you decide to lease a 2001 Audi A6 2.7t through Audi Financial Services for 36 or 39 months and with 10k/year the lease money factor would be .00220 for both and the residual values would again be 58% and 57% respectively. I hope that this information helps you out. Even though the 2001 A6 2.7t has lease money factor support available on it, Audi is not providing any sort of cash support on it. Furthermore, I have not seen any advertised leases on this particular car lately. Audi is nationally advertising a supported lease price point on the 2001 A6 2.8L Sedan w/quattro for $459.00 per month with $2,500 down over 39 months.

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njdriver1 · May 2001

thanks car man, that's what i needed to know!

vkj · May 2001

carman,

for the a6 2.7t are the 15k residuals for 36 and 39 months, 55% and 54% respectively?

ubrsf · May 2001

Thanks Car_man and Mccbride for your comments!

wing5nut · May 2001

Thanks much, Car_man! You are a gentleman and a scholar......and there's darn few of us left!!!

wing5nut
Columbus, OH

max63 · May 2001

Car man, whats the money factor and residual for a BMW 325 and a BMW 330 /12 miles per year /36 months. Thanks for the help!

nrossi · May 2001

This may be a stupid question, but if I buy my car at lease end do I have to pay tax on it or did I do that when I leased it?

Also, I am looking to lease a sedan type car that is fun to drive but not too expensive. I am looking to spend around $250 - $325/mnth over 36 -39 mnts. I like the passat and A.4 but are these in my $ range? Any ideas on a good car would be appreciated.

Thanks
Nick

CarMan@Edmunds · May 2001

Vkj, yes the residual values that you posted are correct.

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CarMan@Edmunds · May 2001

You're welcome, njdriver1, ubrsf, and wing5nut. I am always glad to help out. Don't be a stranger now, make sure to come back and let us know how everything turns out. I would love to hear what you think of your new vehicles.

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mmcbride1 · May 2001

In most states, you have paid sales tax only on each lease payment, so yes, you would have to pay sales tax on the buy out.

As for A4 leases, unless you put quite a bit down ($3000 or more, which I highly suggest you don't), you won't get one for $325 per month. I just got a good deal on a 2001 A4 1.8T Quattro, and my lease payment is $440 per month with tax, $425/month without tax. You probably can get a Passat at the top of that range ($325 or so) if you go with the 1.8T engine (I would go with that engine, anyways) and not a ton of options.

Just make sure you don't give a big cap cost reduction on a lease (down payment). As the guy (sorry, I don't remember his name) with the Prelude that got stolen will tell you, make sure your lease has GAP insurance, and don't put much, if anything, down (I would recommend zero down).

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