Lease Questions - Ask Here

shap1 · May 2004

Hello again, Car_Man. I'm going to test the waters over Memorial Day weekend to see if there are deals to be had. Would you mind confirming if my figures are correct on the following cars? I'm in Miami, FYI.

'04 BMW 325i assuming 36mo/10,000 mi./yr
MF: .00225 Res: 62-63%

'04 RX 330 assuming same lease and also 48 mo.
MF: .00201 Res: 47%??

Thank you!

dwarner · May 2004

I am going to pick up my new car this weekend and sign the lease paperwork and I have a question.

I was able to negotiate the purchase price from $34,703 to $31,037. However when the dealer calculated the residual value, he did it from the higher (MSRP) price. So now the residual value is $1900 higher. If he had done it from the negotiated price, would my monthly payment be lower?

Please advise...

stacey_burke · May 2004

The higher the residual the lower the lease payment. The residual is what the car is worth when the lease is over and what you can buy it for at the end of the lease. If the residual is lower then you have to pay more to make up for the increased depresiation.

In other words if something is worth $10 and you are going to lease it for 3 years and then the residual is $9 then you pay the $1 of depresiation. If the residual is $5 then you need to pay for the $5 depresiation.(add as many 0s as you wish) hope that makes sense....

rroyce10 · May 2004

.......... It "seems" this is popping up more and more about Fico scores and it seems to get more folks confused than anything else ....

            For starters, a high score does "Not" guarantee anything from *any* lender, then blaming the dealer for raising the payment by $10 a month after all the paperwork has been done and the vehicle is delivered and miles are piling up, is just a little on the silly side - Think about it.

              Every lender uses a different credit report, a few use Equifax, some use Trans Union and others use Experian, and some lenders use a combination of one of the two and maybe all three depending on the situation and the advance and what part of the country your in ....

               Remember: the score itself guarantee's absolutely Zero, because nowadays a 20 year old blonde working at Burdines can have a 720 score with a Target credit card and working 30 hrs a week for the last 6 months ...

               What makes the difference is your "own" credit history .. and if that 6 month "same as cash" pops up from the furniture from Christmas, or that Jet ski from last month, or perhaps those new kitchen cabinets that the Mrs couldn't live without are still owed on, or maybe a payment was missed on that new Plasma TV, maybe the customer told the salesman (by mistake .l.o.l.) that he makes $7,500 a month when he only makes $6,000, this all effects the history, forget the numbers, it's *not* a guarantee of that special financing or even your ability to purchase that new fire engine red XYZ vehicle .... if the dealer had his way he would sell you 20 at a pop if the bank would allow it ~ it's the Lender that makes the final decision, not the dealer ...............

Terry.

navy1 · May 2004

On a new es330 premium package (no nav,etc) I am quoted $ 29,225 + 695 dealer cost and 29,949 with a claim of no dealer fee. Both prices seem reasonable. Any thoughts? I'm considering a lease and they quote $481 for 3 yr with a residual of 56% based on Msrp of 33,444. At this time in the model year are these good ? And has anyone had sattelite radio installed? Experience ?
Thanks

njdriver1 · May 2004

Hi CarMan- I've got the numbers on the deal. 15k/yr; 42 months; $45,490 MSRP (inc options & dest fee); $665 out of pocket (1st mo and a $79 fee); $586/mo inc tax. Per my calculations, using 51% resid and .0018 mf the Cap Cost of the car should be $41,540. Does this look correct to you? This would be $200 over Edmunds invoice, which means the dealer is making $2,200 (sounds like a good deal for him).

There are a couple of discrepancies: Edmunds MSRP is $850 less than the Volvo web site (maybe prices have gone up)? Which would mean invoice is up as well. In addition, the dealer had to go pretty far out of his way to get the car, and it has 250m on it (it was driven, not trucked). I don't really care about that, the lease starts from the mile I get the car. Or should I care?

I like the dealer (he's local), buying from them I get a loaner when we service, and they found exactly the package and color I wanted, which was rare based on talking to other dealers. Any thoughts? Thanks CarMan.

nbty · May 2004

nbty · May 2004

I got 58% and .0079 with volvo fiance which fiance co is your lease with?? mf is much lower

my lease was 518 plus taxes 1st mth sec and bank fee.been hold off cause you cant get dvd priced in with lease you gotta buy it outright my dealer wanted 1800 since it's dealer installed

kyfdx · May 2004

I looked at your numbers... assuming your MF and residual are correct, I think you hit it pretty close... Remember, the bank charges an acquisition fee.. It looks like that is rolled into your cap cost, so that cuts the dealers profit a little lower.

regards,
kyfdx

dwarner · May 2004

Thanks! Now I understand...

mfullmer · May 2004

Why would the dealer be making $2,200???

theflush · May 2004

Does this lease include gap insurance?

kyfdx · May 2004

All AHFC leases include GAP insurance.

ponytrekker · May 2004

See here: scam.

>>Today, Public Citizen sent letters to government officials in Florida, California, Texas, Tennessee and Georgia about dealership scams in their states. [The situation you described -- spot delivery if in fact the car has been delivered -- is one of the scams]

http://www.citizen.org/documents/AGfs_US.pdf

I would contact the state attorney general's office.

dbgindy · May 2004

In each of these cases it looks like the customers didn't read their paperwork thoroughly.

Just my .02

Duncan

bluebrian · May 2004

Does anyone have the latest money factors/residuals for a 15k miles/yr lease on these two models?

I'm open to anything between 36 and 48 months. I see Lexus currently has some incentive rates (2.69% I believe), should I expect my money factor to reflect those rates?

Does anyone have any experience with turning in a leased Lexus for another? If so, I'd like to hear your experiences.

Any help appreciated...

Brian

njdriver1 · May 2004

CarMan explained that Volvo dealers have a $2,000 incentive to lease through non-captive finance companies (not Volvo). The dealer is using a bank, not Volvo for the lease and would earn $2,000. I have seen posts on the Volvo forum that say buyers are splitting the incentive with dealers, and getting the car below invoice. $1,000 bucks is worth about $30/mo, and that's pretty significant.

superbeagle · May 2004

Carman (or others):

Let me know your thoughts on this:

XC90 2.5T AWD premium pkg., climate pkg., versatility pkg., wood steering wheel

MSRP: $43,645 (plus tax, tags and $99 processing fee)
Sale price: $37,691
36 month lease, 15,000 miles
MF: .002
Resid: 54%

I also have another quote from a dealer (not sure what the MF and resid are):

XC90 2.5T AWD premium pkg., climate pkg., versatility pkg., wood steering wheel, leather knob, cargo net, premium sound, xenon lights, navigation

MSRP: $45,800
Sale price: $41,000
36 month lease with 15,000 miles: monthly payment of $698 (included 5% sales tax)

Thanks

njdriver1 · May 2004

Wow, this car sure got popular all of a sudden.

ponytrekker · May 2004

But you all forget he had a trade in which I am sure will have been "sold." It's a scam folks. You can get a credit bureau score in 10 seconds and car dealers all know what the approval criteria are.

ponytrekker · May 2004

Also, you have to read, sign and above all else -- MAKE SURE THE SALES MANAGER SIGNS THE DEAL. It's harder to bind the dealership to numbers unless they sign.

rroyce10 · May 2004

..... ** Also, you have to read, sign ** .....

          Wow! .. now there's an obscure idea ..

                You mean you want the buyer to actually take some responsibility and do the proper thing.?!? ... like reading his closing costs on his new mortgage or maybe even reading the "12 months same as cash" at the furniture store before they get hit with the 21% in the 13 month .. I hate to get to pushy here ~ but do you want them to "even" read the warranty on that expensive new watch -AND- send the paper work in .....

             Whoa, I think we are breaking new ground here ~ let me gather my breath .........

Terry.

dbgindy · May 2004

Geez don't you understand? It's the sellers fault when the customer doesn't read an agreement not the buyers. Yeesh the next thing you will say is that people need to take responsibility for their own actions instead of blaming others for their mistakes....... :-)

Duncan

anonymousposts · May 2004

"Yeesh the next thing you will say is that people need to take responsibility for their own actions instead of blaming others for their mistakes......."

That would not be the American way now would it? Or let me correct that, that would not be the way of the new generation Americans.

texag77 · May 2004

I am not very savvy yet when it comes to leasing and buying new vehicles, but am learning. I am planning on leasing my next vehicle. Is sales tax added up front into the lease agreement? I live in Texas and our sales tax rate is about 8.25%. A few hours drive, Oklahoma's is about 3.25%, I think. I was wondering if driving to Oklahoma to purchase a vehicle is a smart thing to do. Any ramifications about registering?

stacey_burke · May 2004

I can't give you an answer in Texas, however, I purchased a car in another state and then took it to colorado. I did not pay tax in the state that I bought it but I paid the same state tax in my home state that I would pay if I had purchsed it here. No difference.

mjfloyd1 · May 2004

Indiana is the same way. I bought a car in Illinois and paid taxes in Indiana when I registered for title and got my plates.

ucistudent · May 2004

Planning to lease the G35 sedan with premium pkg. The lease is $3350 drive off, 39 months, 12k miles/year and a $325 monthly payment. Just wondering if that's a good deal. Thanks.

starkid · May 2004

Hi. I was wondering what a good deal is for a 2004 accord lx to lease? i'll just be putting the tax and fees down. any suggestions would be nice. thanks.

xistentialnyc · May 2004

I am located in California and am in the process of trying to lease a new manual transmission 2004 BMW 325ci Convertible with an allowance of 12K miles/year on a 36 month lease. I would very much rather have no down payment (because if your car gets stolen, then you just lose this down payment). So far I have received price quotes (with sales tax from Santa Barbara country already integrated into the monthly payment price) with no down payments in the high 6's... around $680 per month with a $1100 drive off fee (includes first month, license fees, etc) for a 36 month lease. The MSRP for these cars is around $43K or so.

Personally, I think the $680 figure is extremely high. I would very much like to get it down about $100 per month to around the high 5's ($580/month). Does anyone have any ideas on how best to negotiate this? Are there any incentives or deals which I don't know about? While I am in California, I would be fine buying it in another state if it were cheaper and have them ship it to me in CA. Am I just dreaming?

Any and all help would be appreciated!!

Thanks

-Dave

xistentialnyc · May 2004

I am located in California and am in the process of trying to lease a new manual transmission 2004 BMW 325ci Convertible with an allowance of 12K miles/year. I would very much rather have no down payment (because if your car gets stolen, then you just lose this down payment). So far I have received price quotes (with sales tax from Santa Barbara country already integrated into the monthly payment price) with no down payments in the high 6's... around $680 per month with a $1100 drive off fee (includes first month, license fees, etc). The MSRP for these cars is around $43K or so.

Personally, I think the $685 figure is extremely high. I would very much like to get it down about $100 per month to around the high 5's ($580/month). Does anyone have any ideas on how best to negotiate this? Are there any incentives or deals which I don't know about? While I am in California, I would be fine buying it in another state if it were cheaper and have them ship it to me in CA. Am I just dreaming?

Any and all help would be appreciated!!

Thanks

-Dave

anonymousposts · May 2004

Honda has a $199 per month lease deal on the Accord LX right now. It is for 36 months/12,000 miles per year with $1300 due at signing, $999 of which is cap cost reduction. If you choose to only put down your first payment the lease would be $227 p/ month + tax. It's possible that you could do even better if you negotiate the cap cost lower than the $19,300 Honda is using.

It would probably help carman out if you told him the term and mileage you are looking for.

donnad · May 2004

I am starting the process of leasing a BMW Z4 2.5 (in NJ) with a MSRP of $39,995. If I am able to negotiate the cap cost to 36,000 for 36 months with 10,000 miles and $0 money down, what should my monthly payment be? Is the money factor still at .00100 as quoted in another post on May 18 and is it possible to find the residual value before I talk to the dealer? Also, Is it possible to calculate the set amount the lease payment would go up, per month, if I decided to add a $1000 more in options or possibly $1000 less?
Thanks,
Donna

CarMan@Edmunds · June 2004

Hi everyone. Many of you may have noticed that I have been away on a much needed vacation for the past several days. Well, I'm back and ready to tackle any questions that you have. I would appreciate it if those of you who have questions that you still need answered would repost them. Keep in mind that most manufacturers' May lease programs end today or tomorrow. I will not have a good grasp of what their new June programs are like until the end of the week.

Car_man
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rroyce10 · June 2004

..... ** Many of you may have noticed that I have been away on a much needed vacation for the past several days **

hmmm, did anyone notice anything .? .....................

Terry.

superbeagle · June 2004

Car_man:

Per your request to repost:

Let me know your thoughts on this:

XC90 2.5T AWD premium pkg., climate pkg., versatility pkg., wood steering wheel

MSRP: $43,645 (plus tax, tags and $99 processing fee)
Sale price: $37,691
36 month lease, 15,000 miles
MF: .002
Resid: 54%

I also have two other quotes from dealers (not sure what the MF and resid are):

Here is one quote:

2004 XC90 2.5T AWD in White with Premium package, Climate package, Versatility package, Reverse and Bi-xenon, Wooded streing weel.
M.S.R.P. $ 44095, Sale price after $ 1800 rebate for Versatility package is $ 40464.

36 months lease is $ 596 with 15K miles
48 months lease is $ 553 with 15K miles

0 down, only tax, tag , dealer processing fee, 1 st payment and security deposit. lease base on MD sales tax.

Here is another quote:

XC90 2.5T AWD premium pkg., climate pkg., versatility pkg., wood steering wheel, leather knob, cargo net, premium sound, xenon lights, navigation

MSRP: $45,800
Sale price: $41,000
36 month lease with 15,000 miles: monthly payment of $698 (included 5% MD sales tax)

Thanks

maxim49 · June 2004

Hey Carman - can you please post the June Residual % and MF for a G35 coupe 39 month lease with 15K mile/yr. Thanks!

donnad · June 2004

Hi Car_man,

I am trying to find a good lease deal on a 2004 BMW Z4 2.5 in NJ. The MSRP on the car is $39,995, the term is 36 months, with 10,000 miles.
What should I expect to pay if I am able to negotiate the MSRP to $36,000? Also, I believe that in a post a few weeks ago, you said the money factor was at .00100 and, if i calculated correctly, the residual should be 61% - am I correct? I was quoted a price of 475 per month with 2800 down (includes fees)I didn't think it was a good deal. I believe I should pay around 435 - 445 with no money down except tax.
Thanks,
Donna

njdriver1 · June 2004

Here is the re-post. I'll be signing this up in 24 hours. One other thing, if he got the car from another dealer 200m away, what did that cost him?

Hi CarMan- I've got the numbers on the deal. 15k/yr; 42 months; $45,490 MSRP (inc options & dest fee); $665 out of pocket (1st mo and a $79 fee); $586/mo inc tax. Per my calculations, using 51% resid and .0018 mf the Cap Cost of the car should be $41,540. Does this look correct to you? This would be $200 over Edmunds invoice, which means the dealer is making $2,200 (sounds like a good deal for him).

There are a couple of discrepancies: Edmunds MSRP is $850 less than the Volvo web site (maybe prices have gone up)? Which would mean invoice is up as well. In addition, the dealer had to go pretty far out of his way to get the car, and it has 250m on it (it was driven, not trucked). I don't really care about that, the lease starts from the mile I get the car. Or should I care?

I like the dealer (he's local), buying from them I get a loaner when we service, and they found exactly the package and color I wanted, which was rare based on talking to other dealers. Any thoughts? Thanks CarMan.

CarMan@Edmunds · June 2004

Terry, HA

Car_man
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CarMan@Edmunds · June 2004

Thanks for reposting your message, superbeagle. The selling price that you were quoted looks very good to me, but the lease money factor that you were quoted is slightly higher than Volvo Finance's current 3 year base lease money factor of .00185 for the 2004 Volvo XC90 2.5T AWD. Using Volvo Finance's current 3 year, 15,000 miles per base lease money factor and residual value of .00185 and 55%, I come up with the following zero down, pre-tax monthly payments for the vehicles that you mentioned in your post:

2004 XC90 2.5T AWD (MSRP: $43,645 / Sale price: $37,691) - $495

2004 XC90 2.5T AWD (MSRP: $44,095 / Sale price: $40,464) - $570

2004 XC90 2.5T AWD (MSRP: $45,800 / Sale price: $41,000) - $562

Let me know if you have any other questions.

Car_man
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CarMan@Edmunds · June 2004

Hi maxim49. Infiniti is not supposed to publish its new June lease program until tomorrow, June 2nd. I should be able to give you an idea of what its new program is like in a couple of days. Please post a quick reminder for me at the end of the week and I will be more than happy to fill you in on what I have been able to find out. Talk to you then.

Car_man
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CarMan@Edmunds · June 2004

Hello Donna. You definitely should be able to negotiate a selling price of $36,000 on a 2004 BMW Z4 with a full MSRP of $39,995 because BMW is providing $3,500 dealer cash on this model right now. In fact, if you were to purchase or lease this car for $36,000 the dealer is really only providing you with a discount of $495. Assuming an average spread of between the MSRP and dealer invoice price of an '04 Z4 2.5, I would think that you should be able to shave an additional $1,500 to $2,000 off of this car's price by comparison shopping. For now we will be conservative and assume a selling price of $35,000. If you were to lease a 2004 BMW Z4 2.5i (MSRP: $39,995 / Selling Price: $35,000) through BMW Financial Services prior to June 2nd for 3 years with 10,000 miles per, your zero down, pre-tax monthly payment should be right around $455 or so. This is assuming a money factor of .00200 and a residual value of 57%. It is definitely in your best interest to not make any sort of down payment on this lease. You should be able to lease this car and only pay your first month's payment, a security deposit of that payment rounded up to the nearest $25 increment, and BMW Financial Services' lease acquisition fee of $525 at lease signing. In the lease that I calculated above this would come to a total of around $1,455.

Car_man
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superbeagle · June 2004

Thanks Car_Man

Could the difference in the MF and residuals be that the quotes from the dealers for the lease are not from Volvo Finance. I had thought if they went through Volvo Finance, then they no longer can offer the other dealer cash incentives. Also, my quoted monthly payments included 5% sales tax.

wibble · June 2004

Hope you had a great holiday. Welcome back!

ajoe · June 2004

$595 Acq. Cost for a Odyssey. Is this a legit cost that is borne by the dealer or is it a Honda cost passed through and is it negotiable. Any new information on Marketing or other incentives to the dealer for June 04. Any feedback is appreciated.

Thanks

donnad · June 2004

Thanks for the information Car_man. Just a few more questions... when you say it's not in my best interest to make a down payment, do you include the first month payment, security deposit and lease acquisition fee in the monthly payment of $455? Is the tax the only amount I should be paying out of pocket? Also, are interest rates or special programs changing for the Z4 after June 2?

Thanks,
Donna

shap1 · June 2004

Car-Man: Hope you had a wonderful vacation. We missed you!

Would you mind confirming the May MF and residual for an '04 RX 330 with premuim plus package based on 48 mo/12k miles? I got .00180 and 46% and another for .00175 and 44%. Does this seem in line with what you've found?

I ended up going with the dealer that did the .00180 and 46% (friend of a friend). Negotiated $4000 off MSRP -- not the best I've seen on the boards, but for South Florida it was pretty good. I think. I hope!!

kyfdx · June 2004

Every AHFC lease has the $595 acquisition fee.. It goes directly to the bank (AHFC) and is not negotiable. The dealer sees none of it. You can roll it into the lease payment if you desire (I always do).

regards,
kyfdx

jr_nc · June 2004

I am currently in the market for an Audi 1.8T Ultrasport Avant(negotiated price of 34500) or an Audi S4 sedan(approx 51000). I was wondering what the lease rates were on each of these for 36-42mo with 15K miles.

I know these two are far apart, but the one would let me keep my 03 EVO vs getting rid of that(sell privately) and just having the S4. HMMmmmmmm, not sure yet. Also, does buying the car in a different region affect the lease rates, or are they fairly standard throughout the country. I am in NC btw. I appreciate your help, Thanks!!

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