Lease Questions - Ask Here

kyfdx · May 2004

I've leased four times with AHFC.. Never a problem at turn-in. My tires even passed, and they had 52K miles. Additionally, my wife was rear-ended when the car was about a year old. $9K of damage. Professionally repaired and also not an issue at turn-in.

I believe AHFC now includes up to $1500 "wear and tear" allowance on all their leases, with no disposition fees. That is a very generous allowance. I have nothing bad to say about them.

regards,
kyfdx

ponytrekker · May 2004

Leasing is like renting where your payment is based on the car's depreciation plus a rent charge. Generally, if you drive a lot of miles the depreciation will be so high that it will cost you more to rent than buy.

Unless you are going to keep a car for 10 years, 72 month buy is a sucker's move. Even 60 month buy is pushing it. You will never have any equity in the car and therefore always be upside down.

My advice to you if you are upside down: hold onto the car until it's paid off. You can get yourself into deep hock that way. Chances are with a Nissan, the car is reliable, which the Jetta is not. Also, vote democrat so the oil company shills won't be in office and maybe you get some gas price relief.

CarMan@Edmunds · May 2004

Hi shoppergirl78. You must have locked in BMW's April lease program. That is what these leases are based on. If not, then you will have to lease them using its new May program, which is completely different than April's. For now, I will calculate sample payments based upon the April's numbers, according to my calculations, if you were to lease a 2004 BMW 325Ci with an MSRP of $37,695 and a selling price of $36,277
through BMW Financial Services using April's program for 3 years with 12,000 miles per, its zero down, pre-tax monthly payment should be right around $463. The payment for an otherwise identical lease of a 2004 BMW 325i with an MSRP of $35,595 and a selling price of $34,195 should be around $398. The only problem that I have with the deals that you were quoted is that you may be able to negotiate another couple hundred dollars off of these cars' selling prices by haggling with your current dealer a little bit or by comparison shopping. This is especially true if you are not using April's lease program because in May BMW introduced $1,250 dealer cash on these cars. Even with this dealer cash though you are still better off leasing through the April program because May's money factors and residual values are much worse.

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CarMan@Edmunds · May 2004

Hi again rxke. If you were to lease a 2004 Ford Escape XLS all wheel drive through Ford Motor Credit in New York this month for 3 years with 12,000 miles per, its base lease rate and residual value should be 7.5% and 48%, respectively. This lease rate is equivalent to a money factor of right around .00313. When negotiating this truck's selling price, keep in mind that Ford is providing $2,500 lease cash on it that will help you to negotiate a lower capitalized cost.

According to the latest information that I have seen, if you were to lease a 2004 Toyota Highlander (non-Limited) all wheel drive through Toyota Financial Services right now for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00225 and 60%, respectively.

I have not seen Subaru's New York area balloon note program, but if I had to guess what its 3 year, 12,000 miles per residual value for the 2004 Forester is right now, I would say that it is probably 45% to 47% depending upon the trim level that you are getting.

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CarMan@Edmunds · May 2004

Don't worry about it, ctorrey. Audi only began offering regional leases again two months ago. If you were to lease a 2004 Audi A4 3.0q through Audi Financial Services in MA this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be around .00040 and 53%, respectively.

If you were to lease a 2004 Volvo S60 R through Volvo Finance right now for 3 years with 12,000 miles per, its base lease money factor and residual value should be a remarkably similar .00020 and 53%.

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CarMan@Edmunds · May 2004

Sorry to hear about car problems, sukinsyn. Unfortunately, your dealer has absolutely no authority to "let you out" of your lease six months early. This matter is between you and the bank that you are leasing it through, which is most likely American Honda Finance Corp. In order for your dealer to get you out of your CL lease at this point it would either have to make your remaining payments or purchase your leased CL from then bank that you are leasing it through. The latter may not be an option, given the number of problems that this car has had. They are not going to to so out of the goodness of their hearts, but rather would only do so if you were to purchase or lease another vehicle from them and the profit was sufficient enough for them to pay your lease off or they were to roll your negative equity into your next loan or lease. Sorry that I don't have any better news for you, but there is a good chance that it will be fairly expensive for you to try to get out of your lease six months early.

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CarMan@Edmunds · May 2004

Very strange, kyfdx. I've never seen a captive finance company offer such a deal. What bank was this through?

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kyfdx · May 2004

Not a captive finance company... Leasecompare.com Not sure who they run the leases through, but if you check out their website, they offer lease deals from 3-4 different lenders (they don't disclose who, obviously).

Usually the lowest price deal is a 39 month lease, with only 36K allowed.

I think even though web-based, the company is based in Cincinnati, as is swapalease.com. It might even be the same dealer group.

regards,
kyfdx

sukinsyn · May 2004

Thanks Car_Man. I appreciate the feedback. That is the feedback I am getting from the dealer. I knew it was a long shot, however, I thought it was worth a try.

I actually was thinking about a MDX when my lease was up, however, given the transmission problems, and the *boring* label by the reviewers, I think a Murano might be better and cheaper.

I will climb into my Acura and cross my fingers it moves forward!

nyrascal · May 2004

Car_Man,

You were right, of course. The MF on the Audi S4 is indeed .00170 with security deposit, .00185 if the security deposit is waived.

Now I have just 2 more questions:

1. Does the preference against using a cap cost reduction apply to paying the taxes up front? Do most people roll the taxes into the payment?

2. Security deposit - do most try to get this waived if possible? What if the waiver would require a higher money factor?

Thanks for all of your help. I'll let you know my final numbers when I'm finished.

- Mark

joe222 · May 2004

Carman, could you provide info for the make above? Need numbers for 48mon/15k miles in CA. I'm looking at a wagon with Prem., Sport, Lighting, Cold pkgs. Thanks again!!

eagleeye3 · May 2004

Feel I need to respond to this post. I intend to lease my next car, but buying and financing long term can work if you pick the right car and maintain it. I financed a 1996 VTEC Prelude for 72 months when I was just leaving college and had little cash on hand. After year 4, I was in the clear (worth more than I owed) because the car was mint and sought after (Bay Area). I still own it, 8 years later, and it's probably worth $8-9K because of its condition/low miles.

simon9394 · May 2004

Car_Man,

Would you please list out what the money factor and residual for 330i/ci is? I am looking at 36 months lease with 15,000 miles per year.

Does the $2,400 incentive applies to 330i/xi as well as the 330ci? Please advise. Thanks.

Simon

jas413 · May 2004

Hi Car Man. Would you please provide this months money factor and residual values on the Pilot EXL- RES. I am interested in a 48 month lease with 12,000 and 15,000 miles per year. Thanks in advance!

siteexpert · May 2004

Carman,

Helping out my father now. Can you tell me the residuals and money factors for the 04 SLK32 AMG for 36 and 39 months (12K miles a year)

Thanks.

rxke · May 2004

Hi

With all of my calculations I am figuring 12,000 per year, 36 month, in Westchester, NY
(.0675 Sales Tax) and no money down. I am assuming that the cap costs that I am using are the prices I could buy the car for. I have not gone to any dealers yet until I have a better idea of what the monthly payments would be like. Are my estimates correct?

Toyota Highlander 6 cyl (not the limited)
MSRP: $30,225 Cap Cost: $27,270 Money factor: .0025 and 60% residual. I estimated that the lease should run around $379.93. Does that sound right?

Ford Escape 6 cyl MSRP $24,030 Cap Cost: $20,273(factored in the $2500 rebate and a $500 profit to dealer) Residual 48% and a money factor of .00313 I estimated that the lease should run around $365.30

Audi Avant 1.8 with all wheel drive
MSRP: 32,598 Cap Cost: 30,218 Residual 53% and a money factor of .00040(I assumed it was the same as the 3.0 sedan that you provided for someone.) I estimated that the lease would be $402.16. Is that close?

Subaru Forester X:MSRP:$23,928 Cap Cost:$22,000
Assuming a residual of 47% and a money factor of .00225(a guess) Monthly cost: $403 plus a balloon payment at the end as an option. Does that sound right?

Your input would be greatly appreciated.

Thanks

RXKE

kyfdx · May 2004

I plugged your numbers in... I have no idea if your assumptions are correct, but using your numbers with the sales tax added, I get:

$392.05

$365.40

$404.02

$398.73

All pretty close, except the first one....off about $15 there.

regards,
kyfdx

spatulaman · May 2004

car_man,

I'm having a really hard time deciding what I want....although I just learned about the Rumble Bee, and I think its really cute. I'm about to go down to the dealer and see if they have any. Got any lease info on the afforementioned truck? If you don't have that specific model, then a 1500 Ram 4x4 Short Bed Reg Cab w/ Hemi SLT package would probably be the closest. Texas, 36 months, 12 or 15k miles/year.

jets613 · May 2004

Can you please tell me what I should expect to pay for a 12k lease on an 04 TL w/nav?

Do you think there will be better lease deals in the summer?

hall53 · May 2004

Here's the deal I'm told I'm getting Saturday:

4 year lease with 18k miles/year
443.43/month
No Money Down, no fees, and dealer pays my 1st month. I said "47 payments of 443/month?" and the dealer said yes.

How are these guys going to try to get more out of me? Everything is verbal so far and they make it sound really simple. This deal was offered after a week of negotiating and pitting one local dealer against another. What questions should I be asking Saturday?

Thanks,

Steve

mzinzi · May 2004

Hey CarMan...

I need some help on 2 Mazda models:

2004 Mazda 6s Sedan
2004 Mazda RX-8 6-speed

Edmunds states there are some rebates if you lease...

Can you give me any details on these rebates? The 6 states there is a $1500 rebate if you use the "special" rates and $2500 if you use standard rates, any idea what these rates are? The RX-8 looks like it has a $1500 rebate.

I'm looking for MF and residual for 36,39,42 months 10,000 miles per

Thanks for any info you can provide!!!

zitromex · May 2004

Hello,

Hey I want to know if refinance was an option with leasing? If so, how is it done?

CarMan@Edmunds · May 2004

Eagle, I remember reading specifically that BMW dealers can not combine May's dealer cash with April's special lease money factors. You can
only have one or the other.

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CarMan@Edmunds · May 2004

Buster6, I'm almost positive that I already answered your questions for you. Take a look back and if you can't find it let me know and I will be more than happy to try to find out the answers again.

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hall53 · May 2004

Here's the deal I'm told I'm getting Saturday:

4 year lease with 18k miles/year
443.43/month
No Money Down, no fees, and dealer pays my 1st month. I said "47 payments of 443/month?" and the dealer said yes.

How are these guys going to try to get more out of me? Everything is verbal so far and they make it sound really simple. This deal was offered after a week of negotiating and pitting one local dealer against another. What questions should I be asking Saturday?

Thanks,

Steve

CarMan@Edmunds · May 2004

You're welcome, focus88. If there is a termination or disposition fee associated with your lease it has nothing to do with your dealership. These charges are levied by banks and individual dealerships do not have any authority to waive them. Having said this, many banks will waive this fee if you lease another vehicle through them when your current lease is up.

In my previous post, I mentioned that I need you to let me know what this car's full MSRP and selling price are in order for me to calculate a sample lease payment on it for you. In your most recent post, you did give me the MSRP, but you still haven't said what your car's selling price or capitalized cost are. I still need this info to calculate a sample lease payment for you.

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CarMan@Edmunds · May 2004

You're very welcome, Randy. If you were to lease a 2004 Honda Accord EX-L 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 .00118 and 55%, respectively in every state but New York. Interestingly enough, Honda is providing a much lower money factor on '04 Accord LX models (.00032). When negotiating this car's capitalized cost, keep in mind that Honda is providing $400 dealer cash on Accord Sedans and $800 Accord Coupes this month.

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CarMan@Edmunds · May 2004

Hello paulyslug. I would be more than happy to calculate a sample lease payment on the car that you are interested in for you. However, in order for me to do so, I need you to provide me with its full MSRP and selling price. If you haven't gotten this far in your negotiations yet, you should be able to get a decent idea of what these numbers should be like by looking up the exact car that you want, including any options, in the Edmunds.com New Car Price Guide. Once I have this additional info I will be able to help you out. Talk to you soon.

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CarMan@Edmunds · May 2004

Hi henderson. Are you considering leasing a Toyota Prius for 5 years? I ask because this is a very long time to lease anything for. A lot could happen over the course of the next five years. You could change jobs or move, causing you to rack up many more miles than you had anticipated and have to pay a huge lease end penalty for excess mileage. Or you your family situation could change, causing you to need a larger vehicle. It could be fairly expensive for you to get out of a lease several years prior to its scheduled termination date. Furthermore, the '04 Prius only cones with a 3 yr. / 36,000 mi. basic warranty. If you were to lease one for 5 years, you would have to pay to fix any problems that you have with this car over the last two years out of your own pocket, or face a possible lease-end penalty for excess wear and tear.

In fact, now that I think about it, I do not believe that Toyota Financial Services writes five year leases on the Prius. This is interesting because it leases all of Toyota's other models for five years. I wonder if they are concerned that the technology in this car is so new that they do not know what will happen with them several years down the line. TFS' 4 year residual value for the '04 Prius is only 40%.

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nycadguy · May 2004

hey carman, just wanted to thank you for the info and run the numbers by you on a deal I'm going to be completing in a few days.
2004 S60R 6MT, Sport Package, premium, climate, touring, 18" rims. MSRP 44,265, selling price of 40,700. 36month lease, 15K miles a year, 0 down, 543 a month inc. 8.65% NYC sales tax. lease rates locked in on the april program. As far as i can tell, these numbers look right for the april program.
thanks again!

CarMan@Edmunds · May 2004

Greetings, freddo. BMW is not currently providing any sort of dealer cash on the 2004 X3 2.5. It does have dealer cash on the 2004 X3 3.0, but only on models with automatic transmissions. BMW Financial Services' current 3 year, 15,000 miles per base lease money factor and residual value for the 2004 BMW X3 2.5 are .00215 and 57%, respectively.

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CarMan@Edmunds · May 2004

Hi Jenny. Edmunds.com has two very interesting articles that I think will help you answer many of your questions. Here are links to them:

- Leasing vs. Buying: The Differences

- Leasing vs. Buying: The Similarities

Take a look at them and make sure to let me know if you have any other questions. Thanks.

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CarMan@Edmunds · May 2004

You're very welcome, Sal. I personally doubt that AHFC usually lets its lessees purchase their leased vehicles for less than their contracted purchase prices because Hondas usually tend to hold their value well and are probably often worth relatively close to or more than their residual values. I have no data to support this, but I have a feeling that the banks that lease vehicles that have much lower real world values, like many domestic products, are probably more likely to work with consumers who want to buy their cars and trucks at the ends of their leases. Of course, this is a very broad generalization so it is difficult to say what AHFC will do with your van at the end of your lease.

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focus88 · May 2004

Re: how bad is this deal? - ? on lease termination fee [Car_man #10770] by focus88 May 11, 2004 (6:49 pm)
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

rxke · May 2004

HI CarMan

I am seeing lots of ads for leasing with cap cost reductions in the range of $2000 to $3000. For example, a Toyota Highlander(not the limited)for $265 per month with $2975 down. 41 months/12,000 miles per year. Since I want zero down, could I assume that if I divided the $2975 by 41 months($72.56)I could leasing this vehicle for $337.56($72.56 + $265) per month?

Do you know what Subaru is offering on their balloon loans for a Forester X or XS? 24 or 36 months with 10,000 or 12,000 miles per year(NY)?

Thanks for all of your help.

Also, how do you convert a financing interest rate percentage into a money factor?

ralphiewigs · May 2004

Hey Car Man,

About what would my lease payments be for this 2004 Honda Pilot. It's the EX model, with Leather and DVD system. MSRP 32,800. Selling price 31,000. 3 year lease, 12,000 miles/year, no money down. If you need any other information, let me know. Thanks in advance.

CarMan@Edmunds · May 2004

Hi shaker58. Sorry for the delay in responding to your post. There has been a lot of traffic in this discussion lately. Volvo Finance's national 3 year, base lease money factor for the 2004 XC90 T6 is .00199. I have heard that it is running some sort of enhanced lease promotion on this model in the New York region, but I do not know the exact money factor for that area. Volvo has a large number of dealers in the Northeastern U.S. You should not have too much trouble finding out what the base money factor is like in your area by calling or e-mailing a couple of them. If you opt to lease an '04 XC90 T6 through a bank other than Volvo finance, you can take advantage of the $2,500 cash incentive that Volvo is providing for leases through independent banks. This cash may be used in conjunction with the free Versatility Package that Volvo is running on XC90 T6 models.

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CarMan@Edmunds · May 2004

No problem, sukinsyn. I am glad that I was able to help you out. Please let me know if I can do anything else for you.

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CarMan@Edmunds · May 2004

You're welcome, Mark. How taxes are calculated on leased vehicles varies from state to state. I personally do not have a problem with paying taxes upfront if one is a allowed to do so. As far as security deposits go, some banks, like Saab Financial Services Corp. for instance will waive their security deposit requirement for consumers who have excellent credit. I do not believe that Audi Financial Services does this though. It charges a security deposit equal to your monthly payment rounded up to the nearest $25 increment on all leases, except for ones to returning AFS customers. Audi Financial Services will waive its security deposit requirement for non-returning customers in exchange for an increase of .00015 in the money factor. It will waive its acquisition fee requirement in exchange for an increase of .00050 in the factor.

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ctorrey · May 2004

nycadguy:

I am considering the EXACT S60R and I am fairly impressed with the deal you received. Am I correct in assuming that you negotiated the selling price to about $400 BELOW invoice? Or did you get some incentives from Volvo? Any insights would be helpful. Thanks

307web · May 2004

Since you posted that TFS has a lease program for the Prius now:

About what should the monthly payments be of a 2004 Toyota Prius with navigation? MSRP and cap price both at $25,755?
24 months/30K miles and 36 months/45K miles?
$0 down payment.

Thanks.

cjs2002 · May 2004

looking at a 04 350Z.... (just as a thought) wanted to know the leasing prices and see if there are any deals since the roadsters are the new hot item... (just looking for the coupe). I looked at the touring model (manual). and its MSRP was 33280 and I was quoted 31000... was looking at the edmunds estimated lease prices and it was 380 about... hoping to keep the price below 430... is this possible... on a 36 month or 39 month lease?

nycadguy · May 2004

I had a $600 incentive for being a prior customer (this is the 7th volvo my family has gotten from this dealer), the cap cost before that was 200 over invoice. the deal is going through volvo's captive finance arm. be aware that the 04 S60R is starting to dry up in the channel, and demand is picking up after the auto show, it took two weeks for my dealer to find me a car and they ended up driving it down from the other dealer.

shaliloglu · May 2004

Car_man:
Thanks for all your informative posts and replies to mine.
Even though it was a very hard decision for us (first lease for the family) we went ahead and did the lease on the 2004 Honda Odyssey EX-with DVD. 999 down 249/month for 24 months incl taxes etc.
I wanted to fianance but wife said lease so she won. Those low monthly payments got her I think.
I must say a very nice vehicle with solid built.
I will follow the boards here cause one learns so much.
Keep up the super job you are doing....

best regards:
Sal

chig · May 2004

I have started (very late)getting prices for Camry lease. My first encounter got me a Camry LE with mats and ABS on 39 month lease for $275, however I have to put down 2K which my original request was only tax. There are listed Inception Fee, Excess Cash/Rebate, down payment of $695 and acquisition fee of $795. Dealer cap cost is $19,227 and Residual is $11,104. How can I calculate numbers to determine my tax,(which I believe should be on difference from Cap cost and residual). Also dealer great guy that he is shows me only making $77 profit (my boots are still messy from that one)Also what about these other fees I saw? Any help and guidance is appreciated as my Saturday will be spent at other dealers.
Thanks

chig · May 2004

I guess I was scattered in my last post. I am looking for Camry LE, for 39 months and only 10k miles per year. I am concerned that dealer is adding additional fees and hiding them in (A) the down payment and (B) the monthly payment. How can I insure acceptable deal? I am trying not to focus on monthly payment but getting accurate numbers (fees and such)as well as money factor is like pulling teeth. Am I correct that tax is on difference between cost and residual? What are acceptable fees and amounts. I saw an "assignment fee" for $795 and realize that is same as acqusition fee, which seems high. Also what is inception cost and is $1,200 high? As you can see I need lots of help even after reading the Leasing guide. Thanks again.

ssinhas72 · May 2004

Car_man : can you please provide residual and leasing factor for X3 3.0 for 36 months as well

thanks a lot !

rubinstein7 · May 2004

Car Man:What are the current Acura money factors and residuals for the MDX Touring 42 month lease with 15000 miles yearly?

delahoussaye72 · May 2004

I am getting ready to turn in a 99 Jeep Cherokee after a 5 year lease. (bad move- the 5 year lease, I know). The actual lease is up in September but I keep getting phone calls and mailings to turn in anytime. My question is: What can I expect in the form of fees when I turn this car in and do not purchase/lease again from the same dealer? The car is in good shape. Has about $60K miles. How much will this cost me??

leasecheap · May 2004

How to compleately calculate a one payment lease for a given car, for example:

price: $40,000
term: 24 months
miles per year: 12,000
depreciation factor: 45%
interest: 4% APR
State tax: 6%

Please assume any other required values, Pleae provide detailed calculation (money factor, lease end value, tax addition, etc).

Regards,

Joe.

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