Lease Questions - Ask Here

CarMan@Edmunds · May 2004

Good morning, Howard. BMW is currently providing $1,000 dealer cash on the 2004 530i. This cash may be used to negotiate a more attractive selling price. BMW Financial Services' current 3 year, 12,000 miles per base lease money factor and residual value should be .00225 and 60%, respectively.

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CarMan@Edmunds · May 2004

Hey RXKE. I need you to be more specific about the trim levels of these trucks before I can give you an idea of what their lease programs are like, i.e. "I want a 2004 Ford Escape XLS 4WD" or "I want to lease a 2004 Toyota Highlander Limited 4WD." Once I have this additional info I should be able to help you out. Talk to you soon.

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CarMan@Edmunds · May 2004

Hi focus88. Most banks do not lease vehicles with such odd mileage allowances. I have a feeling that you may be leasing this car with 12,000 miles per year. I would be more than happy to calculate a sample lease payment on it for you, but in order for me to do so, I need you to provide me with its full MSRP and selling price.

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CarMan@Edmunds · May 2004

Hi njdriver1. I have heard that Volvo is running a special lease program on the '04 XC90 in the Northeastern U.S., but I have not seen anything in writing about it. In most of the country, Volvo Finance's current 3 year, 15,000 miles per base lease money factor and residual value for a 2004 XC90 2.5T AWD are .00185 and 55%, respectively. Some dealers may be leasing this model through independent banks instead of Volvo FInance because Volvo is providing $2,000 dealer cash for '04 XC90 2.5T leases through banks other than its captive finance company this month.

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CarMan@Edmunds · May 2004

No problem, Dave. Yes BMW introduced dealer cash on the 2004 5-Series this month as well. It is currently providing $1,500 dealer cash on the 2004 545i that will help you to be able to negotiate a more attractive selling price. BMW Financial Services' current 3 year, 12,000 miles per base lease money factor and residual value for this car should be .00225 and 60%, respectively.

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CarMan@Edmunds · May 2004

You're welcome, ssinhas72. Let's work up a sample lease payment on this truck and see what we come up with. According to my calculations, if you were to lease a 2004 BMW X3 3.0 with a full MSRP of $41,245 and a selling price of $38,150 (boy BMW sure had to begin offering steep discounts on this new model pretty quickly didn't it) through BMW Financial Services this month for 36 months with 15,000 miles per year, your zero down, pre-tax monthly lease payment should be right around $524 or so. It would be best for you to ask your dealer what your lease payment would be before tax so that you can compare it to this number.

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CarMan@Edmunds · May 2004

I have, Cody, and I would be happy to help you out. According to the latest info that I have seen, if you were to lease a 2004 Acura TSX without navigation through American Honda Finance Corp. this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00215 and 56%, respectively. Using these numbers, a full MSRP of $26,990 and a selling price of $26,549, I come up with a zero down, pre-tax monthly lease payment of right around $408 or so. For more information on leasing, make sure to check out the following articles that are available here at Edmunds: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

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CarMan@Edmunds · May 2004

I have been able to look at a number of manufacturers' new May lease programs, spatulaman. As you may have noticed by reading some of my earlier posts, BMW is providing dealer cash on a number of its 2004 models this month. This includes the '04 X3. It currently has $1,210 dealer cash on '04 X3 3.0 models that are equipped with automatic transmissions. You can use this cash to negotiate a more attractive selling price. As far as the factor and residual goes, BMW FS' current 36 month 15,000 miles per base lease money factor and residual value for the 2004 X3 3.0 are .00190 and 57%, respectively. This truck's 12,000 miles per residual value would be 2% higher.

Audi's lease program is regional again this month. In order for me to give you an idea of what the allroad's current numbers are like, I need you to tell me what state you are in.

Mazda is not providing any sort of lease support on the 2004 Mazda 3. If you want to lease this car, you may be able to get the most attractive monthly payment by doing so through an independent bank. The only incentives that are available on this car at this time are 3.9% financing and owner loyalty cash.

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CarMan@Edmunds · May 2004

Hey Mark. I am fairly sure that this car's base lease money factor is .00170 for 3 year leases in your state through June 3rd. The dealer that you are working with may be marking up AFS' base lease money factor to add additional back-end profit to your deal. It also may be increasing this car's factor in exchange for waiving your security deposit. Many banks allow their lessees to do this, but I am not sure about Audi Financial's specific policy on this matter.

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shaliloglu · May 2004

Car_man:
Thanks again.
Actually, I was hoping for a less than 73% residual since I want to consider purchase at the end of the lease.(wife does).
Is there any way I can get them to reduce the residual.?
Should I just go the finance route and buy.?
I do not like Honda's warranty though only 3 yr/36K miles and 2005 is redesigned I am told.
Thanks again for all your help.

Sal

cjs2002 · May 2004

Just droping a line again.. you told me to remind ya about the prices for the TL lease and what not...thankx

spatulaman · May 2004

I have been able to look at a number of manufacturers' new May lease programs, spatulaman. As you may have noticed by reading some of my earlier posts, BMW is providing dealer cash on a number of its 2004 models this month. This includes the '04 X3. It currently has $1,210 dealer cash on '04 X3 3.0 models that are equipped with automatic transmissions. You can use this cash to negotiate a more attractive selling price. As far as the factor and residual goes, BMW FS' current 36 month 15,000 miles per base lease money factor and residual value for the 2004 X3 3.0 are .00190 and 57%, respectively. This truck's 12,000 miles per residual value would be 2% higher.

LOL An automatic transmission is what I wanted to avoid.

As for the Audi, I'm in Texas.

Thanks!

shoppergirl78 · May 2004

Hello Car_Man,

This is my first lease and I want to make sure that I'm understanding the numbers correctly, thanks in advance for your help.

I'm looking at two leases:

325Ci:
Premium, Auto, Metallic, Leather, Heated Seats
MSRP: $37,695
Sale price: $36,277
The lease terms are: $0 down, 36 months, 12K miles/year, .00125 lease factor, 60% residual value, 7% tax, $550 sec. deposit.
Monthly payment: $502.54 (incl. tax).

325i:
Premium, Auto, Metallic, Leather, Heated Seats
MSRP: $35,595
Sale price: $34,195
The lease terms are: $0 down, 36 months, 12K miles/year, .00125 lease factor, 63% residual value, 7% tax, $450 sec. deposit.
Monthly payment: $443.16 (incl. tax).

What do you think of these leases? It seems like something is a little off, because I was quoted $478/month for the 325Ci without leather, and if I add leather in the price jumps up to $502, even though by my calculations the leather option should only cost $16/month, raising my payment to $495, not $502 (1450 * .4 (since there is a .6 residual) divided over 36 months = $16.11/month). Is there something I'm missing here? Thanks for your help.

rxke · May 2004

Hi Again

The models I am considering are:
Ford Esccape XLS(6 cyl) all wheel drive with MSRP of $24,030 and a selling price of $20,100.

Highlander(not the limited) (6cyl) all wheel drive

12,000 miles per year for 36 months. We live in Westchester NY. What are the residuals and the money factor on leasing these vehicles.

Also, do you know the residual value of a Subaru Forester after 36 months? I know that you said they are not leasing but I am trying to figure out a good deal when all that they are offering is a purchase with a balloon payment at the end if you want to buy the car.

Thanks

RXKE

ctorrey · May 2004

Car_man -

I didn't realize Audi numbers are regional - sorry. I am in MA and was hoping to get current MF's and residuals as well as support/incentives for the following cars:

'04 A4 3.0q 12k miles/36 month lease
'04 Volvo S60R same terms

Thanks again!

sukinsyn · May 2004

I have a 2001 Acura CL with 21,500 miles. It is currently at the dealer getting it's 2nd transmission. The first trans was at 800 miles. I have 6 months left on the lease. The reason I would like out early is I believe the car is unsafe. When the transmission blew, the car accelerated at a very high rate of speed and I, luckily, was able to steer around traffic because I was getting on a inter-state with a two-lane on-ramp.

I have also had the brake rotors replaced twice during the last year.

What is the likely hood the dealer will let me out? I know it will be a fight, however, I am willing to try.

I figure with only 21,500 miles on it, the dealer is getting a less than 3 year old vehicle that will sell better before the end of the year. 2005 makes it one year older...does that make sense? Perhaps only to me. LOL.
Any advice?

kyfdx · May 2004

Car_man: Some banks are offering 39 month leases with only 36K miles allotted. I believe this is how they came up with the odd number of miles per month.

I noticed this on leasecompare.com

Keep up the good work!!

regards,
kyfdx

CarMan@Edmunds · May 2004

Hi pinkissassy. I do not believe that Lexus is providing any sort of lease support on the 2004 RX 330 right now. If this is indeed the case and you were to lease one through Lexus Financial Services, you would have to use its standard lease program. The last that I heard, LFS' base standard lease money factor was .00200 for any length lease and its 2 year, 15,000 miles per residual value for an '04 RX 330 4WD without the navigation or rear entertainment systems was 58%. Lexus may have published new residual values for the month of May. If this is the case, this vehicle's residual value might be a point or two lower.

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CarMan@Edmunds · May 2004

Welcome aboard, Randy. Since this is your first lease, you may want to check out the following articles that are available here at Edmunds.com before doing any more shopping: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment. You should be able to get a pretty good grasp on how leasing works by reading them.

I will calculate a few sample lease payments on the car that you are interested in so that you can use them as a benchmark when e-mailing dealers. According to my calculations, if you were to lease a 2004 Honda Accord EX-L without navigation with an MSRP of $24,790 (including destination) and a selling price of $21,867 (getting this car at invoice should be reasonably attainable given the dealer cash that is on it right now) through American Honda Finance Corp. this month in any state but New York for 24 months with 15,000 miles per, your zero down, pre-tax month lease payment should be right around $315. The monthly payments for otherwise identical 30 and 36 month leases should be around $301 and $271. Let me know if you have any questions.

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nomarack · May 2004

Sal-

The 73% residual cuts both ways. It makes it unattractive to buy it at the end of the lease, but the 73% is what is also making your monthly lease payments so low. It is highly unlikely that the captive financial service/bank will lower the residual, but even if they did, that would increase your monthly payments. If you are thinking about buying the vehicle at the end, you may be better of negotiating for an outright purchase as they may be willing to discount them fairly well based on the fact that the 2005 is a redesign.

hoyalawya · May 2004

In order to take advantage of leasing programs, what is generally the acceptable credit score range?

shaliloglu · May 2004

nomarack:
Yes, I was guessing along the same lines.
Thanks for your reply and input.
I just need to decide which way to go now. Oh well!!!

Sal

eagleeye3 · May 2004

I am curious to know how your situation turns out - because I am almost in the exact position. I locked in the April lease program with an Orange County dealer and I am currently waiting for my 325i to arrive at the end of the month. The deal was for almost $2K off MSRP using the April base money factor. Is it reasonable to demand that my deal be $3,250 under MSRP now becasue of the dealer cash in May? Said another way, is it reasonable to expect the dealer to combine both incentives - the .00125 base money factor (instead of May's higher rate) with the dealer cash? Should I at least get something additional off? Let me (us) know what feedback you recieve when you ask for the additional cash off your existing deal...

Eagle

shaker58 · May 2004

Looking into leasing this vehicle,I live in NY so wondering if you have info on the special lease rates that you mentioned before.
Also notice there's 2000 dealer cash that you mention and edmunds 1806 dealer cash with versatility package. Are they combinable???
XC90 T6
3/36
MSRP 46500
I was quoted 517 per month 525sec,695bank, 1628 taxes and 1st mth payment upfront. Dealer said it was with Volvo.This was quoted over phone and didnt mention dealer cash since he said it's with volvo

ctorrey · May 2004

shaker58 -

I'm looking at Volvos too and the numbers you have compare favorably to my calculations for a different, but similarly priced model. I'm curious if the dealer quoted the money factor and the residual percentage. If so, could you post? Thanks.

rroyce10 · May 2004

.......... Sorry to hear about your Acura problem, they are truly few and far between .... But, you need to be on the horn with the Regional Mgr from Acura leasing, not the dealer .. all the dealer did was to lease the product and Acura holds the paperwork and the title .......

Terry.

buster6 · May 2004

Hi Car_man--I think this one got missed--could you please help out in the GS--thanks again

This is for a friend. Could you please give me the res and $ factor on a GS300 for 36/39 months 15k per year(does the 39 month lease give extra miles for the 3 months or is it written as a 45k total mile lease?) with and with out nav. This is in Arizona, also is there any dealer cash to play with?

Thanks in advance!!

focus88 · May 2004

Hi:
Thanks for answering. Here's the answers to your questions:
this is the deal i was offered. 2004 G35 Coupe with leather and performance package, splash guards and floor mats. $450.00 per month plus sales tax. for 39 months. $700.00 down than 38 payments remaining. 12,000 miles per year but they said this would average 11,076 per year over the 39 months. Don't like this one: termination fee $395.00 they keep claiming that the bank (us bank leasing) charges this fee.
MSRP with leather $31,550
MSRP for performance package $2250
MSRP for mats $70.00
MSRP for splash guards $200
destination charge $590.00
Is this lease deal fair? If not, what would you think is fair.
Looking forward to your reply.
Thank you so very much
J

sukinsyn · May 2004

Thank you Terry! I appreciate the advice. I was not sure where to start. How do I determine who the Regional Mgr from Acura leasing is? The salesman who sold me the car is still there and I hate to put him in the middle, but I will if he is the only way to get the name. Would it be OK to ask him?

George

hhcpta · May 2004

Car Man, Thank you for responding to my questions. I would like to know what the residual value percentage and the money factor is for the 2004 accord exl for 36 months and 15,000 yr. I am getting different residual figures from different sources. This info would really help me out. Thanks alot, Randy

paulyslug · May 2004

I was wondering about the lease costs for a 36month, 18,000mi per year on a 2004 Infiniti G35 Sedan with manual transmission in Southern California, LA County with a high FICO score. Your thoughts?

rroyce10 · May 2004

....... Look on your lease contract and/or your the owners books with the 1-800# ....

Terry.

CarMan@Edmunds · May 2004

Hi eagleeye3. As I mentioned in a number of other posts recently, BMW introduced dealer cash on a number of its models, including all 2004 3-Series variants except for the M3, in May. However, when it did so, it reduced its lease money factor support and lowered its residual values on most models as well. As a result, even though there is new cash on the 3-Series this month in most instances it will cost you more to lease one right now than it would have in April. Specifically, BMW is providing $2,400 dealer cash on the '04 330i in May. This means that the dealer that you are working with can sell you this car for $2,400 less than its MSRP and still make full gross on it. You should negotiate as attractive as possible a selling price on this car and stipulate that you want any available incentives deducted from the price that you arrive at. You should be able to get a pretty good idea of what this car is selling for at this time by stopping by the following discussion: KarenS "BMW 3-Series: Prices Paid & Buying Experience" May 12, 2004 2:48am.

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CarMan@Edmunds · May 2004

Hello justin8. Here is the information that you are looking for. If you were to lease a 2004 Saab 9-3 Linear through Saab Financial Services this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00075 and 47%, respectively. This car's 12,000 miles per year residual value for this term would increase to 48%. In addition to this low lease money factor, Saab is providing $3,500 lease cash on this car that will help you to negotiate an attractive capitalized cost. A 3 year 15k lease of a 2004 Saab 9-3 Arc Sedan would have a base factor and residual value of .00057 & 48%. The 12k residual for this term would increase to 49%. Saab has $2,500 lease cash on the 9-3 Arc right now.

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CarMan@Edmunds · May 2004

Hey buster6. If your friend was to lease a 2004 Lexus GS 300 without navigation through Lexus Financial Services this month for 36 or 39 months with 15,000 miles per year, its base lease money factor should be around .00156 in most areas. A 39 month lease would have a higher total mileage allowance than a 36 month lease would. Specifically, you would be allowed to drive 45,000 total miles with a 15k 36 month lease and 48,750 total miles with a 39 month 15k lease. The '04 GS 300 with navigation would have an identical base money factor. I am not sure if LFS has published new residual values for the month of May, but this is a less important detail because generally speaking individual dealers do not have the authority to alter banks' published residuals. I can tell you that Lexus vehicles that are equipped with navigation systems usually have residual values that are 2% lower than models without this option. Lexus is providing $750 dealer cash on this model, but this cash may not be used on LFS leases.

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CarMan@Edmunds · May 2004

Fmiller, when I say "base" lease money factor I mean the lowest possible factor available for consumers who qualify for this bank's top credit tier. This does not take loyalty programs into account, however I do not believe that American Honda Finance Corp. is providing any sort of money factor reduction for loyal customers right now. AHFC usually has fairly reasonable standard lease money factors, but the factor that you were quoted on the TL that you are looking at technically is not "special." Unfortunately, all banks charge acquisition fees on leases. AHFC does not waive this fee for loyal customers and individual dealerships do not have any authority to get rid of it for you.

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CarMan@Edmunds · May 2004

You're very welcome, Scott. Thank you for noticing all of my hard work

. Here is the info that you're looking for. If you were to lease a 2004 Acura MDX with Touring and NAV through American Honda Finance Corp. this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00215 and 54%, respectively. Please let me know if you have any other questions.

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CarMan@Edmunds · May 2004

Thanks for the reminder, phauol. BMW is providing $1,250 dealer cash on the 2004 325i in May. BMW Financial Services' current 3 year, 12,000 miles per base lease money factor and residual value for the '04 325i are .00220 and 61%, respectively. I would be more than happy to calculate a sample lease payment on the exact car that you are interested in for you, but in order for me to do so I need you to tell me its full MSRP. Once I have this additional information I will be bale to help you out.

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CarMan@Edmunds · May 2004

Greetings zephyr. You are correct, BMW does indeed have special lease money factors and truck money on the model that you are considering. Specifically, BMW is providing a whopping $4,500 dealer cash on the 2004 Z4 3.0 in May. BMW FS' base lease money factor and residual value for a 3 year, 15,000 miles per lease of this car should be .00200 and 54%, respectively. This car's 12,000 miles per year money factor should be exactly the same, but its residual value would increase to 56%. I would be more than happy to calculate a sample lease payment on the exact model that you are interested in for you, but in order for me to do so, I need you to provide me with an approximate selling price that you think that you will be able to get it for. Let me know and I will tell you what the payments should be like.

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CarMan@Edmunds · May 2004

Hey Howard. I am not sure if I have answered this question for you already, but just in cash I haven't, BMW Financial Services' current base lease money factor and residual value for a 3 year, 12,000 miles per lease of a 2004 530i are .00225 and 60%, respectively. When negotiating this car's capitalized cost, keep in mind that BMW is providing $1,000 dealer cash on it.

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CarMan@Edmunds · May 2004

Sal, a high residual value is not a bad thing. If this van had a lower residual value, its lease-end purchase price would indeed be lower, but you would have been paying for the depreciation caused by the low residual value every single month in your lease payment. You are better off leasing a vehicle that has a high residual and then deciding at the end of your lease whether its purchase price is worth it or not. In fact, some banks will actually sell leased vehicles to consumers for less than their per-determined purchase prices. Consumers who lease vehicles with high residual values and then buy them for less than their original lease-end prices really make out.

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CarMan@Edmunds · May 2004

Thanks for the reminder, cjs2002. Let's run some sample lease payments for you and see what we come up with. According to my calculations, if you were to lease a 2004 Acura TL without navigation (MSRP: $33,190 / selling price: $30,600) through American Honda Finance Corp. this month for 3 years with 12,000 miles per, your zero down, pre-tax monthly lease payment should be right around $431 or so. The payment for an otherwise identical 4 year lease should be around $382. These payments are good for every state but New York.

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CarMan@Edmunds · May 2004

Oh well, spatulaman. I remember the days when one had to pay extra for an automatic transmission. In a lot of instances today, manufacturers don't make cars with manual transmissions at all or produce so few of them that there really is not any sort of discount on them. I have always been a big fan of rowing my own so to speak, but I usually don't get to any more. Well enough about the demise of the manual transmission. OK, the question is which one of Audi's regions does Texas fall in? I suspect that it is in its Midwest region. If this is the case and you were to lease a 2004 Audi allroad 2.7T through Audi Financial Services in Texas this month for 39 months with 15,000 miles per year, its base lease money factor and residual value should be around .00020 and 52%, respectively. This wagon's 12,000 miles per year residual value would be 2% higher. In addition to this low lease money factor, Audi is providing $500 dealer cash on AFS leases of '04 allroad 2.7T models in its Midwestern region.

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henderson · May 2004

I am trying to figure out what the residual value will be in 5 years on a 2004 Toyota Prius that I am considering leasing. Any pointers to how to go about that?

Thanks Much.

freddo · May 2004

Is BMW providing any dealer cash on the X3 2.5? Also, what is the cuurent money factor and RV for this car (36 mos/15k) Thanks - you're a huge help.

jbfatcat · May 2004

Hi all. I feel like an idiot sometimes because I don't understand exactly how a lease works. So, bare with me and my ignorance.

I am considering trading in my 2000 Nissan xTerra on a smaller sedan. I would very much like a Jetta as my bother, cousin, and coworker all drive one and LOVE IT. I'd like to do this for a many reasons mainly 1) better gas mileage 2) warrenty.

However, here is the situation I have myself in. My xTerra's trade-in value is about 2500 to 3000 less than what I have in the car (big shock, not!). So, I'm upside down. I realize that I will be upside down no matter what I do, unless it's to put up the cash for the difference. I don't want to do this!

My cousin leases all her cars. So, she's all for leases. My dad is scared of them and won't do it so he's ends up with a 72 month buy - upside down in the end.

So, could someone explain why some love leasing and some are scared. Honestly, IF the fine print and dealer chatter is actually true. The lease is the way to go FOR ME because in 3 years I end up owning NOTHING (if I build in enough miles that is).

Thanks all!
Jenny

shaliloglu · May 2004

Car_man:
Thanks again. Yes, now it makes more sense to me. By the way, is there a way for me to find out if Honda (factory sponsored lease) has a habit of letting current lease owner purchase for less at the end .?
I suppose they would not advertise that.....
Keep up the good work.....

Sal

shaker58 · May 2004

Looking into leasing this vehicle,I live in NY so wondering if you have info on the special lease rates that you mentioned before.
Also notice there's 2000 dealer cash that you mention and edmunds 1806 dealer cash with versatility package. Are they combinable???
XC90 T6
3/36
MSRP 46500
I was quoted 517 per month 525sec,695bank, 1628 taxes and 1st mth payment upfront. Dealer said it was with Volvo.This was quoted over phone and didnt mention dealer cash since he said it's with volvo
ctorrey I dont have #'s the dealer used to get this rate but another dealer quoted me 58% .00079

kyfdx · May 2004

When you call AHFC's 800#, and are given your phone options, they state right there that they do not and will not negotiate end of lease term buyouts.

At least this was the case, when my AHFC lease was up in January.

regards,
kyfdx

shaliloglu · May 2004

Thanks for that kyfdx:
I am sure leaning toward buying. It will be much cheaper in the long run as all stated. Were you able to turn in your vehicle at lease end without much hassle from them.? I have heard that a lot folks get assessed extra charges for lots of little things.

Sal

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