Lease Questions - Ask Here

fmargrave · May 2004

what should I pay for a KIA sedona lx base model 2004 per month?

malexgcab · May 2004

Carman,

I would like to know if it is cost-effective to lease a certified pre-owned 2000-2003 Mercedes Benz e320 4matic so that my monthly payments are reasonable ($350-400/month)?

thanks.

linksavage2 · May 2004

Looking to lease a 2004 Suburban 1500 LT 2WD and would like to know the residual/money factor for a 60 month lease.

Also, what about 60 month residual/mf on 2004 Yukon 2WD SLT?

Thanks a bunch!

arizonacards · May 2004

Car_man, please help me. I am debating between an Infiniti G35 (automatic, leather, premium package) and an Acura TL (automatic, non-navigation). Can you please provide the respective money factors and residuals for these cars? I would like to lease the vehicle for 36 months at 12,000 miles per year and I live in Arizona. Also, is it better to lease the car through the manufacturer (i.e. American Honda) or a separarte party (i.e. Chase Financial)? Thanks for your help.

audihahn · May 2004

Considering leasing a 2004 Audi A8. MSRP is $70,520; purchase price would be $68,000. Can you tell me what the lease payment would be, including money factor and residual? Thank you very very much!

carlos_26 · May 2004

Thanks CarMan!

acura2000 · May 2004

Thanks for the response and info car_man.

theflush · May 2004

The current lease special for the Honda Odyssey EX-RES, good thru 5/31/04, seems like a good deal. However, with the newly redesigned 2005 models coming out soon, is there any chance that Honda will continue or improve upon this special? Do I need to act soon to avoid missing out, or will I get another chance in June?

I am having problems finding an EX-RES without leather in my area (SC Ohio). I want a sandstone or silver one, but am lucky to find any lately. I agreed to a deal over the phone with a dealer and put down a $100 deposit on a credit card. When I went to pick it up(1.5 hour drive), I was told that it was scuffed by the prep crew & it was sent to a detail shop to be buffed out. It was to be delivered to me today, but I was told that the scuff marks did not come out and it would have to be repainted. I said I no longer wanted that vehicle as I was worried about paint color mismatch. They are currently looking for a another one for me. In the meantime, I found another one at another dealer. Can I lease from the second dealer without losing my $100 deposit with the first dealer?

How much can individual dealers improve upon Honda's special lease? Can I play the 2 dealers against each other to try to get a better deal. Do dealers get the same kickbacks on leases that they do on purchases?

Last question. My local dealer continues to advertise the lease special for the EX-RES even though they have not had any on their lot in quite a while. Is this legal/moral and is there anything I can do about it?

Thanks.

dn5150 · May 2004

Thanks carman and everyone else who replied! This seems like a good deal to me, even though the vehicle is out of warranty. I'm currently driving a grand cherokee that is not a good commuting vehicle (gas mileage is terrible), and I can't afford a car payment over $300 right now. But in a year and half I should be able to , plus get a better financing rate after 1.5 yrs of on-time car payments. Getting this car seems like a good short-term solution. If it holds up well I may buy it, if I don't get to screwed on the residual.

ejbecker · May 2004

Question on leasing a Tahoe. I was told by a dealer that any current incentives and rebates cannot be used if I lease the car. That sounded odd to me, since there are no special lease deals being offered. Are the current GM incentives applicable on leases? Thanks, EJ

windsor · May 2004

Here's the "short" story of a problem I am facing with my new lease...I recently leased a 2004.5 Volvo S40. The dealership leased me one with the premium package, and the climate package, bringing my monthly payment to 280, and my $$$ due at signing at 3600 + a $540 trade in value on my old car. I ended up trading in my old car because they came back to me and said my credit rating was not tier 1 (as I expected because I had ran my fico score two weeks prior). Anyhow, I bited, and offered a trade in, and thus still got 280 a month. Two days later, I get called back to the dealership and they are now saying that they couldn't get my loan approved at the rate first quoted, and that my lease payments would go up ten dollars. Again, I was surprised as I had ran my own credit on myfico.com only two weeks prior. Anyhow, the dealership said my score through experian was 645, so when I got home I ran my score on myfico.com again, and it is actually 693, just as I expected. I'm not sure what the dealership is trying to do, but if anybody has advice, please let me know.

mfullmer · May 2004

Do you know if the $5,000 incentives they are offering are good with a lease and/or their lease deals?

archno8 · May 2004

I'm looking at a Saab 9-3 linear with some options that list at $32,200. Salesman offered price at $27,700 (add NJ sales tax at 6%). Numbers used for out of pocket total expenses was $2,710 including $1,500 as reduction cost. Payment for 36 month lease to be $346/mo. I do not remember the money factor (maybe .00175) or the residual per centage or ending buy out number. Are there any manufacture to dealer incentives I don't know about? Is this a good deal or is there a better deal to be had? Also, the dealer will pick--up a least one of my two remain payments of $279.00, I'll push for both. Will want to be in the car by end of May.

mjfloyd1 · May 2004

Car_man,

In post 11024, I meant to say that I realize what the initial security deposit is for but that additional security deposits are used to decrease the money factor. That being said, do you think that multiple security deposits are a good idea?

I'm thinking about leasing a infiniti fx35. What would be the money factor and residual for this vehicle for 36 months with 12000 miles per year. I assume I'd have to check directly with the leasing co to see what the money factor would be with multiple security deposits.

Thanks,
Mark

stargazer0791 · May 2004

Car_Man

Can you please post the current 36 month 10k/12k
residuals for the Murano and 4Runner (SR5 4WD V8)? and money factors used by the respective captive finance companies?

Thanks a bunch!

xmonger

P.S. does the v6 make a difference in the 4runner in terms of residual value?

CarMan@Edmunds · May 2004

Hi martinoc. The monthly lease payment of these trucks will vary depending upon which trim level you choose (i.e. a 2004 Ford Escape XLS 4WD, a 2004 Ford Escape Limited 2WD, etc...), the selling price of the truck, how long you want to lease it for, and how many miles per year you need do be able to drive it. I would be more than happy to try to give you an idea of what the lease payment should be like for the model or models that you are considering if you provide me with the above information. I also need to know the full MSRPs of any models that you are interested in.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · May 2004

Well not exactly, Mark. When one pays points on a mortgage to buy down the interest rate, they never get that money back. On the other hand, when one makes multiple security deposits on a leased vehicle they will get this money back at the end of their term, as long as they do not have to pay any excess wear and tear or excess mileage penalty. You are correct that the exact discount in the money factor that is provided for each additional deposit varies from bank to bank. Multiple security deposits definitely can be a good idea if you have enough money laying around to make them and if the discount that is provided is significant enough. The fact that you have made additional deposits will not hurt you if your leased vehicle is assessed for excess wear and tear because you would have to pay for any damage to your vehicle anyhow. If you had not made additional deposits you would have just been billed for the penalty instead of having it deducted from the money that you are getting back.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · May 2004

You're very welcome, Howard. I am glad that I was able to help you out.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · May 2004

You sure have a lot of friends, siteexpert

. Make sure to invite me the next time you throw a party, it must be a blast

. Let's take a look at the current lease program for the model that you are interested in. If you were to lease a 2004 Lexus IS 300 with an automatic transmission through Lexus Financial Services this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00105 and 52%, respectively. The numbers for an otherwise identical 4 year lease should be .00111 and 44%.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · May 2004

You sure do like those Buicks, mfullmer. Manufacturer-sponsored early lease termination programs are a great thing. There's nothing like getting out of an existing lease and into a brand new car or truck several months early without having to pay a dime. Let's take a look at the lease programs for the models that you are considering as a replacement. Interestingly enough, I've never seen any mention of the lease program for the Rendezvous Ultra. I suspect that its numbers are fairly close to those of the 2004 Rendezvous CXL AWD though so for now I will give you those. If you were to lease a 2004 Buick Rendezvous CXL AWD through General Motors Acceptance Corp. this month for 2 years with 12,000 miles per, its base lease rate and residual value should be 2.5% and 64%, respectively. The numbers for an otherwise identical lease of a 2004 Buick Lesabre Limited should be 3.5% and 58%. The numbers for an otherwise identical lease of a 2004 Buick Rainier AWD should be 2.5% and 64%. As you may have noticed, GMAC publishes lease rates instead of money factors for the vehicles that it leases. You can convert the aforementioned lease rates into approximate money factors by dividing them by 2400. All three of the vehicles that you mentioned have $1,000 bonus cash that may be combined with GMAC's lease program on them in May. Some of them have additional lease cash in certain regions, but in order for me to let you know what that is, I need to know what state you are in.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · May 2004

No problem, erikev. BMW Financial Services' current lease money factors are only scheduled to run through June 1st.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · May 2004

The problem with Kias, fmargrave, is that they have terrible residual values. This makes them very expensive to lease, even if there is a decent amount of support on the model that you are considering. If I was in the market for a new 2004 Kia Sedona I would probably finance it through Kia at 1.9% for 5 years or through an independent bank and use the $2,000 customer cash that is available on it to reduce its selling price.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · May 2004

Greetings malexgcab. I do not personally keep tabs on the details of manufacturers' Certified Pre-Owned lease programs because they are not very popular and have a ton of variables associated with them, such as several different model years. The problem with leasing used vehicles is that unsupported leases of used vehicles often cost almost as much as leases of equivalent, supported brand new models. Having said this, some automakers do provide support on CPO leases. I believe that the list of manufacturers that do includes BMW and Mercedes-Benz. I have not heard anything about special leases on CPO E-Class models, but I have heard that you can finance them through Mercedes-Benz at 1.9% for up to 3 years, 2.9% for 4 years, and 3.9% for 5 years.

Car_man
Host
Smart Shoppers Message Board

sonny_k9 · May 2004

windsor.

I came across this article, thought it might be of some help. 690+ is a relatively good score, you should be in Teir 2 of most crediters.

http://money.cnn.com/2004/01/14/pf/autos/yoyo/

I'd say either arrange your own financing or simple return the car/truck to the dealer....don't get screwed.

CarMan@Edmunds · May 2004

Hi linksavage2. Let me begin by saying that 5 years is way too long to lease any vehicle for. I say this for several reasons. The first is that the models that you are considering only come with a 3 year / 36,000 mile warranty. This means that if anything goes wrong with your truck during the final two years of your lease, you will have to pay out of your own pocket to have it fixed or you will have to pay a lease-end penalty for excess wear and tear. Also, a lot can happen during the course of five years. You could end up changing jobs and putting way more miles on your truck than you had anticipated, causing you to have to pay a huge excess mileage penalty. The third and most important reason to avoid leasing either of these models for five years is that General Motors is only supporting leases of up to 4 years in length. So by leasing one for 5 years, you are forfeiting the GMAC's special lease rates and will have to either use its standard rate or go through an independent bank.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · May 2004

I would be more than happy to help you out, arizonacards. I see that you are from Arizona. I am a huge NFL draft nut and was wondering what you think about the Fitzgerald pick. He's good, but it's tough to pass on a possible franchise QB for him. OK, back to cars. Let's take a look at the lease programs for the two models that you are considering. According to the latest information that I have seen, if you were to lease a 2004 Infiniti G35 Sedan 2WD through Infiniti Financial Services this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00162 and 59%, respectively. The numbers for an otherwise identical lease of a 2004 Acura TL without navigation through American Honda Finance should be .00215 and 57%.

Independent banks do occasionally have more attractive lease programs than captive finance companies do on certain vehicles. This usually happens when a vehicle's manufacturer is not providing much in the way of lease support, as is the case with both of these cars. I would not be surprised if you were able to lease one or both of them for less through a bank like Chase. Most dealers will know if it will cost less to lease through an independent bank and will steer you in that direction. There is nothing wrong with leasing through independent banks if the savings is great enough.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · May 2004

Hi audihahn. Your post was very good in that it contains both the full MSRP and selling price of the car that you are considering leasing. In order for me to calculate a sample lease payment on it for you though, I need to know how long you want to lease it for and how many miles per year you need to be able to drive it, i.e. 15,000, 12,000, or 10,000. Once I have this additional info I will be able to help you out. Talk to you soon.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · May 2004

You're welcome, carlos_26.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · May 2004

I am glad that I was able to help you out, acura2000.

Car_man
Host
Smart Shoppers Message Board

mjfloyd1 · May 2004

Car_man,

Thanks for the info. What are the current money factor and residual for 04 fx35 with touring pkg for 36 months and 12K miles/yr? Any deals from infiniti out there - I know they are offering 1.9% financing for loans.

Thanks in advance,
Mark

mfullmer · May 2004

Thanks CarMan.

I'm in GA.

audihahn · May 2004

Oops! Forgot to say that I wanted a 36 mo. lease with 15,000 miles. Also, if you could give me the number on a 12,000 mile lease, that would be helpful. Thanks so much.

Here was the original message:
Considering leasing a 2004 Audi A8. MSRP is $70,520; purchase price would be $68,000. Can you tell me what the lease payment would be, including money factor and residual?

linksavage2 · May 2004

Thanks, Car_man - agree with your points. Can you give me the 4 year residuals/money factors instead?

KCRam · May 2004

Hi windsor

Mid to upper 600s really is not Tier 1 territory, although some dealers may go to bat for you with a financer. You have to be solidly above the 700 mark to get the best rates. Also keep in mind that creditors may use different criteria for your score than you can going on the web to the credit bureaus... after all, it's their money you're trying to use.

In your situation, it sounds like the dealer was fairly confident they could get your lease sold to the bank, but the bank said no and wanted new terms. If the extra 10 bucks is not a financial issue, then I'd say go for it if you like the car. If you're uneasy/unsure, return the car, retrieve your trade, and continue shopping - keeping in mind what this bank has already determined about your credit.

kcram
Host
Smart Shopper and Wagons Message Boards

gwarren · May 2004

Car_Man

Do you have any info as to when the 05 Lexus RX330
will be available in South Florida region. Seems that the 04 is not a good lease because of the residuals. Perhaps the 05's will be better with a higher Residual or Lexus may offer some concessions once the 05's are out?
Gary

CarMan@Edmunds · May 2004

Hi theflush. It is difficult to say what Honda will do with its future incentives with 100% accuracy. Generally speaking, vehicles' residual values fall as the model year progresses. The lower a vehicle's residual values are, the more expensive it is to lease. Manufacturers often gradually lower their lease money factors on supported vehicles to help counter this drop in residuals, but at some point most vehicles' residual values have fallen so low that automakers just stop leasing them or at least replace their lease support with straight dealer cash. This is what will eventually happen with the 2004 Honda Odyssey. At some point in the next several months, Honda will end its special lease program on this model. When it does this, it will at least continue the $500 dealer cash that is available on the '04 Odyssey and may even enhance this cash.

You definitely should be able to get your deposit back from the first dealer that you worked with. You were willing to take delivery of the van and they messed the deal up. The fact that you should be able to get your deposit back does not necessarily mean that it will be easy for you to do so. Dealers often drag their feet in this type of situation. You are in a much better position if you made this deposit on your credit card because you can always dispute the charge if you have to.

The selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. So you definitely should comparison shop a little bit and negotiate the selling price of the Odyssey that you want. Given the fact that Honda is providing $500 dealer cash on this van right now, you probably will be able to negotiate a selling price that is fairly close to if not at dealer invoice.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · May 2004

You're welcome, dn5150.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · May 2004

Hello EJ. As you are probably already aware, General Motors is providing $3,000 customer cash and $1,000 Truckfest bonus cash on the 2004 Chevrolet Tahoe. The $3,000 customer cash can not be used in conjunction with GM's lease program, but the bonus cash may. Most manufacturers' normal customer cash incentives can not be combined with their supported lease programs. GM is providing a special lease cash incentive on the '04 Tahoe in some parts of the country. If you let me know what state you are in I can tell you if I am aware of any lease cash on this model in your area.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · May 2004

The simple solution to this problem, windsor, is to tell the dealership that you got your car from that you no longer want the car if they can not honor the terms of your original contract.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · May 2004

Mfullmer, you are the second person to ask me this question today...interesting. The answer is no. Most manufacturers, including General Motors, do not allow consumers to combine their customer cash and special lease programs. Having said this, GM does have lease cash and bonus cash on a number of its models. If you tell me what state you are in and what model you are considering I would be more than happy to tell you about any cash incentives that may be used in conjunction with GM's lease program that I am aware of.

Car_man
Host
Smart Shoppers Message Board

acura2000 · May 2004

Car_Man can you please give me the current residuals and money factor for May on a 2004 MDX Touring Package with Nav and Rear Entertainment System for 36 and 48 months at 12k miles and 15kmiles a year for both terms? Also, can you give me the same information on this vehicle WITHOUT the rear enterinment System as well? Thanks

paul-hb · May 2004

I am looking to help a friend of mine lease a 2004 Porsche Cabriolet. I wanted to know what the factory money factor and residual was for this car...any help would be greatly appreciated.

Thanks.

Paul

me@paulkramer.com

oidvoid · May 2004

How are you doing, Car_man? I'm really glad you're still here. I first got in touch with you here 3 years ago when I leased my Accord. My first message was #800. Wow, you've been busy in the interim!

Anyway, my lease is up on July 21, so I'm gearing up to do it all again. Some background info:

- My 2001 Accord EX V6 currently has only 21,000 miles on it, and is in very good condition.

- I'm looking at the Acura TL as the top contender for a new car, with Nissan Maxima and Infiniti G35 as possibilities, depending on lease support from each manufacturer in July.

This is very preliminary data, I know. But armed with this, do you think I would be wise to extend my current lease to the beginning of the new model year in order to benefit from better residuals? Also, do you think I can use the good condition and low mileage of my Accord in negotiations at all?

I'm sure I'll have more detailed questions as lease end gets closer, but I wanted to get your initial impressions about what my options might be. Thanks again (three years later) for your help on my current lease. I look forward to benefiting from your insight this go ‘round, as well.

Oidvoid

fordman2 · May 2004

So I have a Red Carpet Option offer on a 2005 Escape as follows:
MSRP $27540.00
Price $24450.
balloon $14871
APR of 3.5%
15,000 for $320.60/mo for 39 months.

My sticking point is that I hate the residual based on the MSRP so that after 39 months of payments I basically get to buy the car at the MSRP based residual. Is this a good deal? Do you recommend the exteded warranty to 45000 miles for 450.0?

thanks

fordman2

kyfdx · May 2004

If the residual were based on a lower number, then your payments would be higher.. they are based on price paid minus residual.

Your total cost for the car will be the price paid, no matter what the residual is, if you buy it out at the end of term. Higher residuals are better, because that lowers your cost, if you decide not to buy.

regards,
kyfdx

keitarou · May 2004

What is it?

mikee_me · May 2004

HI Car_man,

I recently leased a 2004 honda pilot for $487.07 a month. I used to have a CRV 1997 which I traded in for about $9000 but still got stuck with a $4000 balance which was added to the cost of the 2004 Honda Pilot. My residual value after 60 mos is still about $13,999. Can you help me out with some questions.

1) Was it a good lease agreement? Was I a total sucker regarding this lease agreement.

2) I was thinking of converting my lease agreement to a financing agreement. Is that possible and is it smart? I am thinking of doing this after 2 years.

3) Can I have somebody else do my financing or leasing?

Thanks,

Mikee_me

cgrantnashvill · May 2004

Hello Car_man,

I did a lease buy-out 8 months before my lease term ended... The vehicle loan was based upon the residual value plus other factors. The residual value was thousands more than the value of my vehicle in average condition, within the mileage limits at, what would be the end of the term. For example, the residual value was, say... $14,000. But the value of the vehicle is $10,000. I'm concerned that I have (am) paying a much higher price than the vehicle is worth. Is there any recourse in this situation?

Thank you,
cgrantnashville

mikee_me · May 2004

Hi car_man,

Any response on my problem?

reldonowens · May 2004

Not sure how this process works. I am $6,000 on the hook (upside down) in my 2002 Diamante LS. My friend at a dealership advises me to lease (nothing down, no ballon, 2 years w/ 15,000 miles) and in 2 years I'm clean and at 0 w/ no upside down. Is this accurate and how does that work? THANKS!

Lease Questions - Ask Here

Comments

Helpful Tools

Most popular vehicles