Lease Questions - Ask Here

acura2000 · June 2004

Thanks to ALL.

I've just went to the infiniti website and did a search and found 6 dealerships with 150 miles of me. The one i'm dealing with now is within 8 miles and the next one is 70 miles away.

I'll wait to see what the first dealerships response is to the money factor issue and proceed from there. I was hoping to buy from the dealership in my area to build a relationship with them just in case i should have to return for service. We'll see.

Thanks Again.
I'll let you know what happens.

kyfdx · June 2004

Exactly... You have to negotiate the money factor, and in some cases the acquisition fee... I'm not sure about Infiniti, but BMW allows their dealers to pad the fee by $200.

I like to start out lease negotiations with letting them know that I will only sign a lease with the "base" MF and acquisition. That may not work for every one and in every case, but I find it works for me, and lets me know right away what kind of negotiation I am in for.

regards,
kyfdx

hpowders · June 2004

If you plug in your figures on leasecompare.com, you will see that from the multiple lease quotes, not only is the money factor negotiable but so is the residual value. For each vehicle, several lease quotes have different money factors AND different residual values for the same mileage and time frame.

kyfdx · June 2004

Yes, but those quotes on leasecompare.com are from different lenders. You can't negotiate with the lender's residual value. If you are leasing from IFS, then the residual is what it is. Not negotiable by you or the dealer. It is possible they may find another bank to run your lease through, that has more advantageous terms.

regards,
kyfdx

phaworth · June 2004

Please let me know if the numbers provided by the dealer are correct. 2004 Volvo XC70 with premium package, touring and metallic paint. This is a 2239.52 drive off which includes 1st payment,security deposit and registration for California. Monthly payment which includes tax is 540.52. The MSRP is 39635 and it is being discounted by 1935 for a purchase price of 37700.3yr 36k mile allowance, not sure if it includes gap insurance. I was hoping for a lower payment and I do not know what the money factor and residual are. Any help would be appreciated.

anthraciteguy · June 2004

Sorry about that. 3 years/12k.

mzinzi · June 2004

Hey CarMan...

Wondering if you have numbers for a couple of other sedans for me...

Audi A4 1.8T Sedan 6-speed
36,39,42 months
10,000 miles per year

Subaru Legacy GT Sedan 5-speed
36,39,42 months
10,000 miles per year

Once again, I am in CT.

Thanks again!

hpowders · June 2004

Good. Now you're talking acura2000! I am sure you will get a better deal this way. You have to look out for yourself. The dealer sure isn't! You can still get service at your neighborhood Infiniti dealer even if you don't get the car there. Let me know what happens.
Good luck!
hpowders

hpowders · June 2004

It is always a good idea, kyfdx, to lay your cards out on the table right away to avoid headaches later on and it shows the salesman that you did your homework. Since what your salesman says at first and then actually "remembers" later on can be quite different, one should always insist that what the salesman says initially regarding the capitalized cost, money factor, lease term, mileage allowance, excess mileage penalty and options chosen for the vehicle be put into writing just in case he "forgets" any of these things several days later.
Regards,
hpowders

CarMan@Edmunds · June 2004

Here is the information that you are looking for, Steve. If you were to lease a 2004 Nissan Pathfinder LE 4WD through Nissan Motor Acceptance Corp. this month for 39 months with 15,000 miles per year, its base lease money factor and residual value should be .00183 and 47%, respectively. When negotiating this truck's selling price, keep in mind that Nissan is providing $500 lease cash on it. The $3,250 customer cash that you mentioned in your post can not be used in conjunction with NMAC's lease program.

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CarMan@Edmunds · June 2004

Hello stef929rr. If you were to lease a 2004 Honda Accord EX V6 Sedan without navigation through American Honda Finance Corp. this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00143 and 55%, respectively in New York. Honda is indeed providing $500 dealer cash on'04 Accord Sedans. Its dealer cash is higher on Accord Coupes. I just calculated a sample lease payment on this car for you based upon the prices that you provided in your post, and according to my calculations this car's zero down, pre-tax monthly lease payment should be right around $287 or so in New York.

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CarMan@Edmunds · June 2004

Hey carnutt1. According to the latest information that I have seen, if you were to lease a 2004 Volkswagen GTI R32 through VW Credit this month for 4 years with 12,000 miles per, its base lease money factor and residual value should be .00225 and 45%, respectively.

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hoyalawya · June 2004

I have a quote from a local NJ VW dealer for 2004 VW Passat GLS (Automatic) for $22,500 (including $1000 special incentive) and another dealer who may be able to meet or beat that number. However, I would like to know the residual factor for the vehicle. MSRP is about $27,500, lease terms 36 or 48 months, 15,000 miles per year.

CarMan@Edmunds · June 2004

No problem, bluebrian. If you were to lease these cars for 4 years with 15,000 miles per, their programs should be .00215 (everywhere but NY) and 48% for the '04 Acura TL without nav and .00111 and 42% for the '04 Lexus IS 300 auto without nav.

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CarMan@Edmunds · June 2004

In order for me to give you an idea of what the lease payments for these cars, danmiz, I need you to tell me their full MSRPs and selling prices.

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CarMan@Edmunds · June 2004

Hi Ryan1. American Honda Finance Corp. is great. I personally have leased two cars through them and know lots of people who have done so as well. They usually seem to be very lenient when evaluating vehicles for excess wear and tear at the end of their terms. I believe that AHFC will extend its lessees deals for at least a couple of months as a courtesy if you have not decided what new car you want yet or if you are waiting for a new model to be introduced.

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CarMan@Edmunds · June 2004

Fish8, Volkswagen is providing up to $2,500 dealer cash on 2004 Passat models this month. However, this cash can not be used in conjunction with its special financing or lease programs. Consumers who take advantage of VW Credit's special financing and lease rates are only eligible for $750 dealer cash.

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CarMan@Edmunds · June 2004

You're welcome, acura2000. The dealer is not necessarily wrong. If they are running your lease through IFS then they are most likely marking up its lease money factors to add additional back-end profit on your deal. This is unless you are having your car's security deposit waived. IFS will waive its lease security deposit requirement in exchange for an increase of .00015 in your vehicle's money factor. Its 4 year, 15,000 miles per residual value for the '04 G35x is 50%. Its 12,000 miles per residual for this term is 52%.

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edandu · June 2004

Yesterday I got a lease for my wife. Chrysler Sebring Convertible GTC 2004. No Money down. The money factor was .00225 and the residual value was $11,437.47. What I'm concerned about is they gave me a factory invoice price of $25,300 or so but added fees and costs that I don't understand what they are total. Total monthly lease for 39 months is $394. per month. Is the invoice and additional costs added reasonable? I'm going back to discuss this and still think I have time to get out of this deal. Thanks

fish8 · June 2004

Thanks for the clarification....

Can the $2500 be used towards the lease of a '04 Passat? What exactly does "this cash cannot be used in conjuction with its special financing or lease programs".

If I want to lease a new Passat GLS this money can go towards the purchase, correct? Also does that amount include the owners loyalty $1000 and does this program expire 6/30/04? Sorry for all the questions, but I am just trying to get clarification.

ajoe · June 2004

Thanks Car_man

Your suggestion is welcome. I have acted on and hope that I get some decent $$$$ through the newspaper advt.

Another question typical AHFC leases such as the one advt for the Odyssey EX-RES for 259/mo. The purchase price is negotiable as always, in my opinion and that in turn will affect the payments and if the negotiated price is below that used for the advt. special then the monthly payments should be less as well correct? I know the money factors, residual value etc will affect it. I ask this one dealer told me that AHFC lease terms are not negotiable?

We are leaning to the lease because of the excellent value in terms of cash flow, also know if we choose to buy it outright the cash flow is over say 5yr term is lower on the purchase vs a 24 month and then purchase (dependent on the int. rates 2 yrs form now)- As one would expect. Do not have problem leasing, but have a concern that the purchase price at 24 months may be high given the new body style coming up in the next few months? Any thoughts, is the residual value/purchase price at end of lease for this model set too high to make the lease attractive?

Thanks for your valuable feedback!

mjfloyd1 · June 2004

Carman,

Can you calculate lease payments for 36 month 36000 mile lease (Indiana) for fx 35 awd with no down payment. MSRP is 39540 and selling price is 36700. Does IFS publicize the money factor reduction with multiple security deposits? If so what would the payment be with the max number of security deposits (I've heard that 5 is the max)?

Thanks,
Mark

pipo · June 2004

I was quoted as follows:

MSRP $36,805
Cap Cost $35,445 ($1200 over invoice + $525 acquisition fee)
Residual 62%
Factor .00175
Term 39 months
Mileage 10,000 anually

This deal sounds pretty good to me, however the dealer tells me that lead time for a factory order, which this will be, is 8 weeks. This brings us very close to September; do the 2005s start appearing at that point, and might I get a better lease deal on a 2004 if I wait a few months and lease something out of inventory? Or does it make sense to wait and lease a 2005, taking a chance that cap cost and factor won't change appreciably, but that residuals will be higher at the beginning of the model year?

My instinct tells me to take a good deal now, but I would appreciate your thoughts. Love that X3!

kyfdx · June 2004

A couple things.. I think there is a dealer incentive on the X3s, in the amount of the price of the steptronic. Car_man will have to tell you if your other numbers are accurate, but it sounds pretty good. What kind of a monthly payment does that come to? And how much due at signing?

regards,
kyfdx

EDIT: Not the expert, but since the X3 came out pretty late last year, I doubt you'll see an '05 model in September.. More likely in November/December.

jas413 · June 2004

Hi CarMan. Please provide this months lease numbers for the Pilot EXL-RES on a 48 month lease with 15,000 miles per year.Thanks!

bluedevil · June 2004

My dealer made an error in drafting the lease agreement. Instead of 12,000 miles/year, the current contract is for 15,000/year. The dealer naturally wants me now to sign a new contract for 12,000, invalidating the old contract. Should I do it? I like the 15,000 mile/year limit.

Do I have the right to say no on the new contract?

Mind you the ad for the lease clearly says 12,000 miles per year.

kyfdx · June 2004

If I remember correctly, somewhere in all those papers you signed is one saying that you agree to assist the dealer or bank in correcting any typographical or other procedural errors. If it is a lease, the car is in the bank's name, not yours... Save yourself a lot of grief and sign the corrected papers... They won't allow you to "get away with it".

regards,
kyfdx

pipo · June 2004

I believe you're right about the dealer incentive being for the automatic transmission only, so it doesn't apply to the 6-speed. The deal is with $0 down, $446 (+tax) monthly payment, and they're throwing in the floor mats. I'm tempted to go for the automatic, since it's effectively free and my wife rides clutches like a witch on a broomstick! She'd hit me with the broom if she heard that one.

But I really want the manual, so that's the way I'll probably go.

mikee_me · June 2004

Dear Carman,

I still havent received your reply to my question. Please help me get my peace of mind.

Thanks,

Mikee

acura2000 · June 2004

Car_Man,

What are the acquisition fee, residuals and money factor on a 2005 C230 Krompessor Sport Sedan through Mercedes-Benz on a 36,39 and 48 month lease with 15k miles a year?

I'm in Ohio and my FICA is 690.

Also, does the first month and intials(tags, reg, etc) reduce the Cap Cost when calculating a lease payment?

Thanks

madness · June 2004

I'm so sorry - New Jersey. Lease for 39 mo/ 12K miles

Just as a reminder, looking for the residual and the Money Factor. Also, should the bank fee and the tax be added to the Net Cap Cost of the car while subtracting any inception fees?

Do you what the Mfr. rebate and/or holdback may be.

thanks again! Ron

danbevj · June 2004

Dear Car_Man

I have read through many of the messages, and I am still confused.
I am planning on getting a 2004 Sienna. I am planning on paying cash for it. We don't drive many miles, and we usually tend to keep our cars for at least 5-6 years.
I still am confused about whether leasing makes more sense than buying it outright.
Can you please help outline the pros and cons in my case?
Are there messages/discussions you can point me to?

danmiz · June 2004

Car_Man,

Thanks for getting back to me so quickly. The MSRPs and selling prices for the Infiniti FX 35 AWD and Mazda RX-8 are as follows:

FX 35:
MSRP - $39,500
Selling Price - $37,000

Mazda RX-8:
MSRP - $32,600
Selling Price - $31,000

I live in New York.

Would you please tell me what the monthly lease payments would be for each?

CarMan@Edmunds · June 2004

Hi phaworth. Let's calculate a sample lease payment on this vehicle for you an see what we come up with. According to my calculations, if you were to lease a 2004 Volvo XC70 with an MSRP of $39,635 and a selling price of $37,700 through Volvo Finance this month for 3 years with 12,000 miles per, your zero down, pre-tax monthly lease payment should be right around $469.

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CarMan@Edmunds · June 2004

Thanks for the additional information, anthraciteguy. OK, Saab Financial Services Corp.'s current 3 year, 12,000 miles per base lease money factor and residual value for the 2004 Saab 9-3 Arc through should be .00057 and 49%, respectively. When negotiating your lease on this car, keep in mind that Saab is also providing $2,500 lease cash on it that will help you to get a lower capitalized cost. There might be a little more wiggle room than normal with this car's selling price this month because Saab is running a stairstep program for dealers. The more Saabs they sell, they more money they get back from the factory.

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CarMan@Edmunds · June 2004

Hello mzinzi. According to the latest information that I have seen, if you were to lease a 2004 Audi A4 1.8T Sedan with quattro through Audi Financial Services in Connecticut in June for 36 months with 10,000 miles per year, its base lease money factor and residual value should be .00040 and 55%, respectively. The numbers for an otherwise identical 39 month lease should be .00040 and 53%. I have not seen any info on the Legacy lease that you are interested in yet so unfortunately I can not help you out there.

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CarMan@Edmunds · June 2004

Greetings hoyalawya. Let's take a look at the current lease program for the car that you are interested in. If you were to lease a 2004 Volkswagen Passat GLS 1.8T Sedan through VW Credit this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00048 and 45%, respectively. The numbers for an otherwise identical 4 year lease should be .00053 and 40%.

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CarMan@Edmunds · June 2004

Hi Ed from Miami. Unfortunately, if you have signed the lease contract and have already physically taken delivery of your car you probably are not going to be able to get out of this deal. It doesn't matter what your dealer claims this car's invoice price is. What does matter is the price that you are paying for it. You never said the price that you leased it at, otherwise known as its capitalized cost, in your post. This number would make it much easier to evaluate your deal. Either way, what's done is done. If you do not feel as though you got a good enough deal, chalk it up as a learning experience and do more research next time.

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CarMan@Edmunds · June 2004

You're welcome fish8. The exact amount of dealer cash that is available on the '04 Passat depends upon what trim level you are getting. In my earlier post I meant that the dealer does not get the higher dealer cash allowance if you finance or lease this car through Volkswagen Credit. If you want to lease this car through VW's captive finance company and take advantage of its special lease rates, you have to use the lower dealer cash allowance. This dealer cash does not include any owner loyalty cash that you are eligible for.

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CarMan@Edmunds · June 2004

No problem, ajoe. Yes the selling prices of leased vehicles is always negotiable. If you are able to negotiate a lower selling price than the one that was used to arrive at Honda's advertised lease payment for the Odyssey, then your monthly payment would indeed be lower. Anyone who told you that you can not negotiate this van's selling price was either lying to you or misunderstood your question. This van's lease-end purchase price may indeed end up being a little on the high side. This is actually a good thing when leasing because it keeps your monthly payments low. If that is the case, you can always just turn your van in at the end of its term.

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ericf · June 2004

I am going to be moving shortly and will be staying there for one year. We would like to get a second car for that year that we do not have to worry about moving when we come back. Are there any 12 month leases out there. What might our better options be for the best monthly payment.
We are considering a Toyota Camry.

Thanks for the assist.

jasmith52 · June 2004

Ericf:

Well unless you have money to burn, a one year lease on a new car will cost you much. That first year depreciation will make those payments giagantic.

My personal opinion is that you should consider buying a late model used car from a private party. Shop around a little to find one that's in very good shape and that you can get for a good price. Your monthly payment will be determined by the loan amount and can be obtained through a bank or credit union. If you have good credit on a 5 year loan figure about $20/month for every $1000 borrowed. So a $10,000 car will cost you $200 a month, a $15k car will cost $300 a month etc.

Then when you sell it a year later you won't take the huge 1st year depreciation hit as you would with a new car.

You can also do this buying from a dealers lot but you will have to pay the additional dollar spread between dealers price and what you could sell it for yourself.

CarMan@Edmunds · June 2004

Let's play with some numbers and see what we come up with, Mark. According to my calculations, if you were to lease a 2004 Infiniti FX35 AWD with an MSRP of $39,540 and a selling price of $36,700 through Infiniti Financial Services this month for 3 years with 12,000 miles per, your zero down, pre-tax monthly lease payment should be around $509. I have never heard anything about anyone making multiple security deposits on an Infiniti lease and suspect that IFS may not offer this sort of program. You need to check with your dealer to find out for certain though.

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multiplechoice · June 2004

You might want to consider taking over a lease from an individual. There are several of these listings on the internet. Do a search to get the name of the service. Then you can look at a lease with 12 months left and see what vehicle is available. You might go crazy and even consider a less than practical vehicle since you will only have it for one year.

CarMan@Edmunds · June 2004

Pipo, BMW is not doing an early introduction of its 2005 models like many manufacturers have. Most'05 BMWs are scheduled to begin arriving at dealers this fall, but I do not know the exact date that the 2004 X3 will be available. BMW enhanced its lease program on the '04 X3 for June. It has a decent level of support on the model that you are interested in right now, including special money factors and dealer cash. It is difficult to say if BMW will have to increase its support on this model over the next couple of months in order to help dealers unload their remaining 2004s. There certainly is a chance that this will happen, but there is no guarantee. If you wait to lease a 2005 you definitely will have to pay a higher money factor and selling price. The only question is whether the higher residual values that the '05 models will have will be enough to offset the higher interest rate and price. I suspect that it will be close to a wash with the 2004 model possibly being slightly less expensive to lease. If you are in the market for a new vehicle now I personally don't see any reason to wait, but again it's tough to predict what manufacturers will do with their future incentives programs.

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CarMan@Edmunds · June 2004

Hey jas413. Honda is not providing any sort of lease support on the 2004 Pilot right now. So if you were to lease one through American Honda Finance Corp., you would have to use its standard lease money factors which unfortunately increased at the end of May. Right now AHFC's 4 year base standard lease money factor is .00225 in every state but New York. The 4 year, 15,000 miles per residual value for a 2004 Pilot EXL-RES is currently 53%.

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CarMan@Edmunds · June 2004

I'm sorry to hear about your situation, bluedevil. There's nothing worse than thinking you are done with all of the hassle of shopping and negotiations, only to be called back to sign a new contract. If you have a signed lease agreement that stipulates that you are allowed to drive the vehicle that you leased 15,000 miles per year at your current payment then there probably is not much your dealer can do to force you to sign another agreement. Obviously I do not know the details of your deal, but there is a good chance that there is enough profit in it for your dealer to cover the cost of this mistake. If they continue to hassle you about this you can always say that if they are going to force you to come back in then they can keep the car because you do not like the terms of the new deal that they want you to sign. They probably are not going to want to lose this sale over what likely amounts to $10 to $20 per month.

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ucistudent · June 2004

Hi Car_man,

I'm wondering if the BMW lease specials are negotiable or are they probably the lowest price they would go. Also, if possible, can i get the residual and money factor for a Z4 2.5i for 36 months and 10k miles. I'm in southern california if that matters. Thanks

nicolelaf · June 2004

hello:

could you tell me what type of monthly payment i should be paying if i lease a 2004 audi a4 1.8T quattro with a selling price of 32,500 - for a 36 or 39 month lease with no money down and $15,000 miles per year? also how much should my payments go up if i want 18,000 miles per year? I live in New Jersey. Could you also provide me with a good money factor and the residual value. thanks. nicole

pipo · June 2004

I'm no expert, but I also tend to keep vehicles for 5-6 years, and have found leasing to be a very advantageous way to lower monthly payments and give us more flexibility: if we end up disliking the vehicle for any reason, we only have to live with it until the lease term ends without the hassle of selling or trading.

But most signifigantly, under three separate leases, the residual value buyout in the lease was higher than the auction value of the vehicle at the end of the lease, and I was able to buy the vehicle from the leasing company at the auction price. So I got a double benefit: an artificially low monthly lease price, and a fantastic deal on the buyout at the end of the lease for a vehicle that I knew had been well maintained and was in good condition.

The bottom line is that you have to look at a lease like any other financial transaction and evaluate whether you're being offered good terms. For a lease, this means looking at the capitalized cost (how much over invoice are you paying), the residual value (the higher the better in terms of reducing your monthly payment), and the money factor (akin to the interest rate on a conventional loan: the lower the better).

One more thing: If you're pretty sure you will buy the vehicle at the end of the lease, barring unforseen difficulties with the vehicle or your personal financial situation, I would opt for the lowest mileage limit lease you can get. This is an additional factor that will lower your monthly payment, and you'll never have to pay excess mileage charges if you buy the car off lease.

Hope this helps, and that the experts will correct me if I've provided any bad advice.

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