Lease Questions - Ask Here

shicks1 · June 2004

Thank you Car_man.

The deal was better in the spring. The monthly payment they offered in the spring was 370$ with 0 down. If I plug in the current numbers and assume I can use some of the cash to dealer, I get 430 Monthly with 0 down. In that case, I may be better or buying instead of leasing. How do the residuals compare with a 330i instead? BMW is offering more dealer cash on the 330i.

Thanks in advance,
Steve

CarMan@Edmunds · June 2004

Hi deq. I am sorry to say that there really is not any inexpensive solution to your problem. You put a huge number of miles on this truck and are going to have to pay for them one way or another. You owe the money for this excess mileage to the bank that you are leasing your truck through and not to the dealership, so going back to your dealer won't help you out. Your dealer may be able to bury some or all of the money that you will owe on your truck in a new deal, but doing so will severely hamper your ability to negotiate a good selling price on your next car or truck. The least expensive option for you is to purchase your leased truck at the end of your term and to continue driving it for another couple of years. You may even be able to get the bank that you are leasing through to work with you on your truck's purchase price if you wait until a month or so before your lease is scheduled to expire to call them. When trying to negotiate a lower selling price with your bank make sure to not mention that you are way over mileage.

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CarMan@Edmunds · June 2004

No problem Howard. Lexus is not providing any sort of lease support on the 2004 LS 430 right now. So if you were to lease one through Lexus Financial Services you would have to use its standard lease money factor. LFS' standard money factors vary by region, but I believe that its base standard factor is around .00205 in your area at this time. The 3 year, 12,000 miles per residual value for a 2004 Lexus LS 430 Premium without navigation should currently be 56%.

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madness · June 2004

Hi Car_Man -

I'm looking to close on the 2.7T Sline, can you give me the latest money factor and residual. I'm looking to lease for 39 mo/ at 12K miles per year.

This forum has been extremely helpful and appreciate your help!!!

Ron

cabaiste · June 2004

I'm looking to lease a 2004 Odyssey EX with Leather for 24 months/12,000 miles per year in New York. I know Honda have promotional lease programs, but the small print in their ads state the rates vary in NY. Can you tell me the current residual % and money factor for AHFC in New York. Also, is there a difference in residual values between an EX and an EXL? Thanks.

ajoe · June 2004

Thanks Car_Man

I appreciate your sincere answers. I wish that were the case dealing with dealers (some are sincere)! In any case I will use your suggestions and see how I can do, it appears that no matter how one does it they there is some financial juggling on their part! Any suggestions on putting the vehicle for sale on on-line sites?

Thanks once again.

kiszka6911 · June 2004

My wife and I are considering a 2005 Dodge Magnum SXT for a family car. We turn over my wife's car every 3-4 years, we have never leased. My wife averages about 16K miles per year, so I think we would be looking at a 18K mile lease. I get chryslers friends and family discount which puts the sales price in the 24K range. Can you give me some estimates as to the monthly payment? and how do they figure residual value on a brand new model?

Thanks

ddelise · June 2004

Hello -

Wondering if I can get the following information for the Pacifica:
Money Factor, Residual, Aquisition Fee, and Cash Incentives for 39 month, 12k miles/year lease.

Location is Tampa, Florida.

Thanks In Advance.

stargazer0791 · June 2004

Hello Car_man,

Can you please provide the residual, money factor, (and acq fee) on this vehicle for a

36 or 39 months, 12K per year lease?

Thanks for your help,
xmonger

anthraciteguy · June 2004

Hi Car_Man,

Can you tell me what the money factor and residual is on a Saab 9-3 Arc this month? Is the dealer cash still available in June?

Thanks.

mzinzi · June 2004

Hi CarMan...

Can you get me the info on the following:

VW Passat GLS 1.8T 4Motion Sedan 5-speed

36, 42 months
10,000 miles per year

I live in CT if it matters...

Thanks!!! You're the best!

sexydo · June 2004

we are almost at our mileage limit for our lease on a 2000 toyota solara, convertible. does it make financial sense to purchase the car or turn it in? we put $18,000.00 down at signing and our lease payments were $120.00 per month.

ponytrekker · June 2004

Goodness, how much is the buyout? Car new is what, 24k max? Minus 18k minus a few payments.

jabber · June 2004

Carman,
I'm surprised that there is such a significant difference in residual for only 3 more months...58% for 36m and 54% for 39m????????
Jabber

fish8 · June 2004

$18,000 down.......unless you buy the car at lease end all that money is gone, out the window. Not sure what the reason is for putting that much $ down.

acura2000 · June 2004

Car_Man, can you verify the following lease figures for me? According to my calculations they are at least $60 to HIGH. Both Leases are 12k miles/year. Tax is 6.75% and i'm assuming fees are between $500-$700. These numbers are based on a Fica score of 690. Thanks

G35X, Navigation, Premium Pkg.
> $37,870 MSRP
> Selling price = $36,160
> Invoice = $35,160
>
> 36mos, $2000 due at signing = $561.97/mo including
> all taxes
> 48mos, $2000 due at signing = $510.14/mo including
> all taxes

36mos = .00215 Money factor, 59% residual
48mos = .00225 Money factor, 52% residual

horsegirl · June 2004

I'm not really sure how this whole process works, but could you take a look at the lease terms I posted yesterday for a S60 Volvo and let me know what you think? I thank you kindly for your pearls of wisdom!

- Horsegirl

jabber · June 2004

Carman,
I'm surprised that there is such a significant difference in residual for only 3 more months...58% for 36m and 54% for 39m????????
Jabber

ucistudent · June 2004

Hi Car_Man,
I'm interested in leasing a BMW 325i with sport package for 36 months and 10k miles. i was wondering what the money factor and residual is. And are there any dealer cash incentives for these models? Thanks.

Regards,

Anthony

mikee_me · June 2004

I recently leased a Honda Pilot 2004 for the amount of $487.07. I have traded my CRV 1997 for $5000 which incurred me a $ 4000 balance which was added to the lease of the Pilot. My question to you would be. "Did I get a good deal? What will happen if I converted this to a financing scheme. BTW my MSRP for the the pilot was around $29,000 and I still have a residual value of $14000 after 60 months if I decide to buy the car.

multiplechoice · June 2004

It may be "water under the bridge", but did you look into purchasing the Pilot instead of leasing it? From what I am reading, you put $4000 towards the price of the pilot ($4000 cap. reduction), is that correct? Or did you have $4000 of negative equity that you added to the cost of the Pilot lease? If the latter is the case, why would you be upside-down for the $4000?

wibble · June 2004

I ran your figures through my own calculator (I used to work for Infiniti) and for the 36 month lease I got closer to $520 including tax. For IFS, the lease rate for any score above 620 is the same.

mikee_me · June 2004

It was kinda fuzzy. They said that if I buy it, my monthly would be around $650 which I could not afford. The $4000 is still the balance of what I owe AHFI if i trade in my CRV. BTW my remaining balance in my crv was still $9000 and they just gave me a trade in value of $5000

wibble · June 2004

The standard charge for extra miles withn IFS is 15 cents per mile if I recall correctly.

stevern · June 2004

Hi Car_Man,

Can you run the numbers (money factor & residual)on a 2004 Nissan Pathfinder LE Platinum edition 39/15,000 lease? We live in NY. I understand that there is $3250 cash back at this time, and leasing might be an attractive option since the new 05's are due out soon. Thanks in advance. Steve

stef929rr · June 2004

Hi Car_man. I am currently interested in leasing this vehicle at 12k/36 month rate. The MSRP for this car is $26,990. My negotiated price is $23,200. What is the money factor and the residual value? Are there any manufacturer to dealer incentives going on? The dealer said there currently is a $500 incentive, but I have not seen it posted on Edmund's. BTW I am located in New York and tax here is 8.625%. I am putting $0 down. Thank you.

carnutt1 · June 2004

Looking to lease this car for 48 months. MSRP is $30625, purchase price is $29000. 12k miles per year. Thanks for your help. Please also post the residual and vw money factor. I have excellent credit. Thanks

multiplechoice · June 2004

Since it sounds like you have already leased the vehicle, I guess you can't do too much else. But for the future, I would not recommend rolling over the negative equity into a lease. Especially if the new lease is a long term one. What ends up happening is that if you decide to terminate the lease early, you perpetuate the carry over of the negative equity into the subsequent lease. Just like those who rack up many more miles than their lease allotment, sometimes you just have to ride out the lease to the end of the term and pay the grim reaper (the leasing company) for the excess mileage. Good luck with your Pilot, my in-laws bought one last year after trading in an Odyssey and really love it.

bluebrian · June 2004

Thanks car_man...

One more question, what would the MF/residuals look like on those same 2 cars for 48 months/15k miles per year. That Lexus deal looks almost too good to pass up, now if only they could give me a little more elbow room.

Cheers,
Brian

danmiz · June 2004

I'm interested in leasing either an FX 35 or a Mazda RX-8 (I know, the two cars couldn't be more different).

The specs on the FX 35 are:
- AWD
- Touring Package
- 39 months
- 12,000 miles per year
- $0 Down

The specs on the RX-8 are:
- Automatic Transmission
- Grand Touring Package
- Appearance Package
- Rear Spoiler
- 39 months
- 12,000 miles per year
- $0 Down

What would monthly lease payments be for each car?

ryan1 · June 2004

Hi Car Man,

I'm considering leasing an Odyssey and would like feedback on American Honda leasing. How strict are they concerning wear and tear when returning a vehicle? Also, do you know if they usually offer to extend the lease when the initial period is over?

Thanks,
Ryan1

CarMan@Edmunds · June 2004

I am glad that you enjoy this discussion so much, Ron. I would be more than happy to give you an idea of what this car's current lease program is like. However, in order for me to do so, I need you to tell me what state you are in.

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CarMan@Edmunds · June 2004

You are absolutely correct, cabaiste. For a while American Honda Finance Corp. completely ceased leasing in New York because of the vicarious liability issues that exist in that state. It decided to re-enter the state of New York a little less than a year ago, but it charges higher lease money factors in that state than it does in the rest of the country to help cover the additional risk. If you were to lease a 2004 Honda Odyssey EX-L through AHFC in NY this month for 2 years with 12,000 miles per, its current base lease money factor and residual value should be .00160 and 68%, respectively. The factor for an '04 EX would be exactly the same, but its residual value would be 71%. When negotiating your deal, keep in mind that Honda is providing $500 dealer cash on the '04 Odyssey right now that can be used on vehicles that are leased through AHFC. This cash will enable you to negotiate a more attractive capitalized cost.

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CarMan@Edmunds · June 2004

You're welcome, ajoe. I am not personally a big proponent of advertising vehicles on-line. I have found that a good ad in a decent local newspaper will sell a vehicle much more quickly. A "For Sale" sign in the window never hurts either.

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CarMan@Edmunds · June 2004

Hi kiszka6911. I would be more than happy to calculate a sample lease payment for you. However, in order for me to do so, I need some additional information from you first, including the exact trim level of the Magnum that you want (i.e. a RT, SE, or SXT), how long you want to lease it for, its full MSRP, and the selling price that you qualify for through the Friends and Family program.

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CarMan@Edmunds · June 2004

Hello ddelise. Here is the information that you are looking for. If you were to lease a 2004 Chrysler Pacifica 2WD through Chrysler Financial in June for 39 months with 12,000 miles per, its base lease money factor and residual value should be .00165 and 50%, respectively. When negotiating your deal on this vehicle, keep in mind that Chrysler is providing $3,000 lease cash and $1,000 Chrysler Financial bonus cash for a total of $4,000 on it that will help you to negotiate an attractive capitalized cost. Chrysler Financial's current base lease acquisition fee is $550.

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CarMan@Edmunds · June 2004

Greetings, xmonger. I would be more than happy to help you out. If you were to lease a 2004 Nissan Murano SL AWD through Nissan Motor Acceptance Corp. this month for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00190 and 54%, respectively. The numbers for an otherwise identical 39 month lease should be .00190 and 53%.

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CarMan@Edmunds · June 2004

In order for me to give you an idea of what this car's lease program is currently like, anthraciteguy, I need you to tell me how long you want to lease it for and how many miles per year you need to be able to drive it. Saab is providing $2,500 lease cash on the '04 9-3 Arc this month.

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acura2000 · June 2004

Wibble, Thanks for the response.

However, am I getting hosed on the money factor because Car_Man quoted a money factor for on June on a G35x for 36 months of .00169 in post #11,202? Is there anyway to verify I'm getting the best money factor available to me? The money factor of .00215 seems in line with what someone was quoted for the G35 Coupe. The dealer quoted me the same residual as Car_Man but a different money factor.

I re-ran my initial figures and I got real close to the $520 that you came up with. I wasn't accounting for the taxes correctly.

CarMan@Edmunds · June 2004

Thanks mzinzi. According to the latest information that I have seen, if you were to lease a 2004 VW Passat GLS 1.8T 4Motion Sedan through VW Credit in CT this month for 36 months with 10,000 miles per year, its base lease money factor and residual value should be .00062 and 49%, respectively. I have not seen this car's 42 month numbers, but the factor and residual for an otherwise identical 39 month lease would be .00069 and 46%. When negotiating your lease on this car, keep in mind that Volkswagen is providing $750 dealer cash on leases of '04 Passats this month. This cash will help you to negotiate an attractive capitalized cost.

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CarMan@Edmunds · June 2004

Hmmmm something is not right there. Sorry for the confusion, Jabber. Let's try this again. Infiniti Financial Services' current 36 and 39 month, 15,000 miles per year residual values for a 2004 G35x should be 58% and 57%, respectively. Its 12,000 miles per year residual values for these terms would be 1% higher and its 10,000 miles per residuals would be 2% higher.

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CarMan@Edmunds · June 2004

Hi acura2000. Let me begin by saying that the lease money factors that you were quoted for this car are too high. IFS' current base factors for an '04 G35x are .00169 for 36 months and .00170 for 39 months. This may mean that the dealer that you are working with is marking-up IFS' base factors to add additional back-end profit to your deal. I will calculate two sample lease payments for you based upon IFS' base lease program. According to my calculations, if you were to lease an '04 G35x with an MSRP of 37,870 and a selling price of $36,160 through IFS this month for 36 months with 12,000 miles per year, your zero down, pre-tax monthly lease payment should be right around $483. The payment for an otherwise identical 39 month lease should be around $463. So as you can see the lease payments that you were quoted are definitely way too high, even when taking tax into account.

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jas413 · June 2004

Hi CarMan. Have you seen the monthly lease numbers for the Pilot EXL-RES and Dodge Durango 4x4 Ltd yet? If so please post. Thanks in advance!

fish8 · June 2004

If you look under incentives in Edmunds, you will see there is $2,000 in Manufacturer to dealer incentives on Passats through July 6th. Also, if you currently own or lease a Vw you get an additional $1,000 through June 30th. Where did you get the $750 amount.

I am planning on leasing a Passat before the end of June, so I am watching these incentives closely.

acura2000 · June 2004

Thanks for the response Car_Man.

Those were my thoughts exactly. How can I verify the IFS money factors or prove the dealer is wrong so they can give me the correct rates? Also, what are the residuals for 48 months at 12k and 15k a year?

Worse comes to worse I will go to another dealer.

hpowders · June 2004

The dealer can jack up the money factor. It is not illegal. I leased a BMW 325 several years ago and when I questioned the dealer about the money factor, he admitted to me that I had the "correct" money factor, congratulated me on my research, but admitted to me that his dealership marked it up a little to make a profit. He refused to come down on it. I leased it anyway because the monthly payment was the lowest of 5 dealers. The residual value was higher than the other dealers which kept my monthly payment reasonable. I had no intention of buying the vehicle, so a higher residual value worked in my favor.

acura2000 · June 2004

hpowders, I thought the bank or leasing institution set the money factor not the dealer? In my case the dealer is jacking up the money factor but leaving the residual constant resulting in an even HIGHER payment for me. Not Good at all.

hpowders · June 2004

Hey-it's tough out there! In a perfect world, we would all be getting Car_Man's prices. The money factor is only the bottom line. A dealer is allowed to pad it. You have to shop several dealers. I did 5. Look for the lowest money factor you can get along with the highest residual value(assuming you don't want to buy the vehicle at lease's end.) Don't stick with one dealership if you are not satisfied. Show the numbers you got from the first dealership to several other dealers and find out if they can do better. If one or more can, go back to the original dealer and see if he can meet or beat your best deal. He may be more flexible if he sees that you did some legwork. The dealership offering the lowest monthly payment, everything else being equal,( same mileage, same time frame, same capitalized cost) is the one you go with.

kyfdx · June 2004

Residuals are set by the lender.. The dealer can't change them. The "base" MF is also set by the lender, but the dealer can increase it, and they get a cut of the additional profit.

regards,
kyfdx

hpowders · June 2004

And they do pad the money factor which is why you have to shop several dealers so that you will get the lowest monthly payment, everything else being equal.

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