Lease Questions - Ask Here

CarMan@Edmunds · June 2004

Hey jabber. Here is the information that you are looking for. If you were to lease a 2005 Chrysler 300C through Chrysler Financial this month for 2 years with with 15,000 miles per year, its base lease money factor and residual value should be .00190 and 59%. The numbers for an otherwise identical 3 year lease should be .00210 and 51%. Chrysler Financial's base lease acquisition fee is currently $550 and I don't remember ever hearing anything about it having a disposition fee. I am not sure what
i charges for excess miles, but most banks charge between $.15 and $.25.

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CarMan@Edmunds · June 2004

Hi beachlvr. Individual dealers do not have any authority to work with you on your vehicle's purchase price. This is strictly between you and the bank that you are leasing it through. When you are a month or two away from the scheduled end of your lease, place a call to GMAC, or whichever bank you are leasing through, ask them what your lease-end purchase price would be, and see if they will be willing to work with you. If your initial contact says that they will not negotiate, you can always see if speaking with a manager a little higher up the ladder does anything. There is no guarantee that they will be willing to lower your truck's price, but you don't have anything to lose by trying. Oh and by the way, if you are don't tell them if you are way over or way under your mileage allowance. Doing so will not help your bargaining position because if you are way under your vehicle may be worth more than they thought it would be and if you are way over they have a check coming to them for your excess mileage penalty.

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CarMan@Edmunds · June 2004

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

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CarMan@Edmunds · June 2004

Greetings dosei. Let's work up some sample lease payments for you and see what we come up with. According to my calculations, if you were to lease a 2004 BMW 325Ci Convertible with an MSRP of $49,000 and a selling price of $48,000 through BMW Financial Services this month for 36 months (BMW is not offering 39 month leases on this model at this time) with 12,000 miles per year, your zero down, pre-tax monthly lease payment should be right around $675. If you were to do an otherwise identical lease of a 2004 BMW 330Ci Convertible with an MSRP of $52,000 and a selling price of $51,000, its payment should be right around $731. On both of these deals, you would have to pay a lease security deposit that is equivalent to your monthly payment rounded up to the nearest $25 increment and BMW FS' lease acquisition fee of $525.

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kiszka6911 · June 2004

Yes please calculate a sample 3 year lease on the 2005 dodge magnum. 15K miles per year. Does dodge have a 18K option? Also how do they figure the end of lease value on a brand new model with no market history?

mbonus · June 2004

Hi Car_man,

Could you give me the residuals for 12k and 15k miles and an expected money rate for this vehicle? I live in Tampa, FL. Thanks,

Mike

heathers · June 2004

Wilco, so it looks like I'm getting a pretty good deal. Although I'm only getting $500 extra off for the hail damage, which is their cost to fix it.

I took my deal to another dealer and they gave a $427 payment, with 15k per year and a completely undamaged car. I think we might go that way instead, it's definitely better than the first offer.

The residual is set at 20,575.80 by Honda and it's based on the 28,980.

Thanks!

jimtnc1 · June 2004

(Car_man #11433) Thanks alot Car_man. I was really looking for something more positive, but I guess it's a crapshoot when you're dealing with any kind of used car transaction. They have it priced to move($11248-2003 Taurus SES) and it has a nice ride, but I guess I might have a mech look at it to be sure. Appreciate it.

Jim.

max63 · June 2004

Carman, can I get the three and four year res. and money factor on a BMW6 coupe with sports package (12k per year). Would you mind also calculating the payment on a MSRP and selling price of $75,295 (3 and 4 years 12k). Thanks!

westtx · June 2004

Thanks CarMan, this guy also told me they don't even look at mileage if you are trading it in on another vehicle at end of lease. I guess that means that they just roll the mileage penalty into another lease. At least it is on a great vehicle with a high resale value. I traded in an 02 Hyundai Sonata on this van, which had terrible resale. Thanks for your help.

jabber · June 2004

Carman, thanks for the info on the 300C...I'll make up my mind sooner or later. Not very attractive lease terms. I guess it's an indication that this car is definitely a Chrysler not a MB. Combine the bad lease terms with a 3/36 warranty and it's not looking good. I can't believe Chrysler hasn't up'd the warranty on this car to 4/50. Who's going to do a 45K mile lease with a 36K mile warranty? If they expect to compete with the luxuries they need to be at least at parity on all levels. Plus what message are they sending about this car's reliability?

CarMan@Edmunds · June 2004

Here you go, kiszka6911. If you were to lease a 2005 Dodge Magnum SXT with a full MSRP of $27,300 and a selling price of $25,145 through Chrysler Financial in June for 3 years with 15,000 miles per, its zero down, pre-tax monthly lease payment should be right around $388. You are in luck though, I just found out today that Dodge is running a special promotion on this model for this weekend only that would reduce your payment on it to around $381 or so. That's not a big difference, but it's better than nothing. In order to qualify for the improved lease program, you have to lease on or before June 22nd. 15,000 miles per year is the highest mileage allowance that Chrysler Financial offers, but if you know that you will exceed this number you can purchase additional miles at lease signing. Specifically each additional mile purchased at this time will cost you $.12 and will have to be deducted from your vehicle's residual value. This is a discount from the $.15 that you would be charged for excess mileage at the end of your lease.

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CarMan@Edmunds · June 2004

Hi Mike. If you were to lease a 2005 Subaru Impreza 2.5 RS Sedan through its captive finance company right now for 3 years with 15,000 miles per, its base lease money factor and residual value should be around .00265 and 58% if you qualify for its top credit tier (have a credit score of 740 or over). This car's 12,000 miles per year residual value for this term should be right around 59%.

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cjs2002 · June 2004

Thank you ... I went to the dealorship only to discover that the price is 29000 the other price they gave me wasn't for the Hemi... whats the aprox diff in lease prices assuming everything else the same... also perfect credit

CarMan@Edmunds · June 2004

No problem, Jim. There is a good chance that the car is perfectly fine, but you definitely should have it checked out thoroughly by a mechanic or by someone who knows what to look for before pulling the trigger. The Ford Taurus depreciates like a rock so it provides a lot of value to those who purchase a used one.

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CarMan@Edmunds · June 2004

Hello max63. Here is the information that you are looking for. As one might imagine with a well received new model like the 6-Series, BMW is not providing any sort of lease support on it at this time. So if you were to lease one through BMW Financial Services, you will have to use its standard lease program. Right now BMW FS' base standard lease money factor is .00240 for 3 year and .00260 for 4 year terms. The corresponding 12,000 miles per year residual values for this car should be 62% and 47%, respectively. Using these numbers and an MSRP and selling price of $75,295, I come up with zero down, pre-tax monthly lease payments of $1,088 for 3 years and $1,120 for 4 years.

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CarMan@Edmunds · June 2004

Westtx, any dealership that would take your leased Honda Odyssey in as a trade would be foolish not to look at its mileage and take it into account in its offer to you. In fact, there is absolutely no guarantee that your Odyssey will be worth more as a trade than it would cost to purchase from the bank that you are leasing it through. There is a chance that this will happen, but this is normally the exception rather than the rule. If your van is not worth more than what your dealer wants to give you for it then you would actually lose money by trading it in. If you just turn in your leased van and owe for excess mileage, you could have the dealership that you are working with pay your penalty for you and roll it into your next loan or lease, but doing so will hurt your ability to get a good deal on your next vehicle. The bottom line is, if you go over your allowed mileage you are going to have to pay one way or another. Sorry that I don't have better news for you.

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CarMan@Edmunds · June 2004

You're welcome, jabber. You're right, the 300's lease program is nothing to write home about right now. To be honest with you, I would hope that this is the case for DaimlerChrysler's sake. If they had to provide tons of support on this car already they would be in a heap of trouble once it has been around for a year or two. You're also right that the 300 currently only comes with a 3 year / 36,000 mile basic warranty at this time. At least DaimlerChrysler has made its 7 / 70 Powertrain warranty standard on all Chrysler, Dodge, and Jeep models. The one thing that DCX did do for its new "premium" models is it introduced what it calls Chrysler Premium Care on the Pacifica, Crossfire, & 300. This basically guarantees owners free loaner cars whenever they bring their vehicles in for service.

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CarMan@Edmunds · June 2004

Ah ha. That actually makes sense, cjs2002. I thought that $27,000 was a pretty low price for that car. Raising its selling price to $29,000 bumps up its lease payment to around $441 instead of the $381 that I mentioned earlier.

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stacey_burke · June 2004

Hi Car_man, my last lease payment is on the 25th of this month and of course I need to turn in the Accord on the 25th of July.

I have several questions:
1. What is the MF and Residual for a Sedan
   Accord EXL 6Cly Auto W/O Navi
   Accord EXL 6Cly Auto W Navi
   Accord EXL 4Cly Auto W/O Navi
   Accord EXL 4Cly Auto W Navi

2. Will the programs that you just listed be there next month or do they end this month.

3. When will they end these programs with the new 2005 accords coming out - when do the 2005 come out?

Thanks for your time and great services to all of us. Stacey

mbonus · June 2004

Thanks car_man,

If I am doing my calculations right I get a monthly payment of $479 for 15k, 3yr lease before tax. I am using $33000 msrp and $31500 sales price. The money factor of .00265 seems really high, is this because Subaru's lease program is lacking?

dosei · June 2004

Carman:
At the BWM dealership, they were offering us 39 month leases on both the 325 and the 330. Is there a calculator for working out the numbers? Thanks.

westtx · June 2004

Thanks for that information, I am glad to hear the truth. Let's say that the scenario you describe is correct, will the bank, in this case American Honda likely finance the van if it is not worth the purchase price, or will I need to be aware that I may have to pay the difference between what it is actually worth vs the purchase price? Do they sometimes adjust the purchase price to match the actual value?

anonymousposts · June 2004

We leased a 2004 Ody EX back in May and I noticed on the back of the contract American Honda states they will waive up to $1500 in excess mileage and wear and tear. That would equal 10,000 miles assuming a .15 cents per mile penalty.

cjs2002 · June 2004

thanx... now i'm debating on if its worth it to wait a little for better lease deals cause I'd prefeer to get the lease price close to 415 post taxs... my other options right now are an 04 C 230 sedan (which my dealor has a lease deal of 380 a month 39 months 15K a year with only tax title and licsens and first months payment up front) or a 04 TL which is a bit more expensive but I can still get it for about 415 after tax a month... so if I cant do the hemi then I might take one of these... we'll see how it goes

wilco · June 2004

Question from a lease newbie to Car_Man or other lease expert:
If I finance my first payment into a 24 month lease, do I subsequently only pay 23 payments?

Details of Lease
Odyssey EX-RES, selling price 25,500,
12k miles, 71% residual, MF 0.00113
Monthly payment: 302 if I pay the 1st upfront (24 payments total), 316 if I finance it (? 23 payments)
Upfront money: 462 (security deposit, title, license)

The reason I'm checking is LeaseWizard software indicates there still is 24 payments.

danmiz · June 2004

The MSRP of the Infiniti FX 35 AWD is $39,540. The selling price is $35,770.54 (gross capitalized cost, including up-front sales tax, is $37,505). The terms are as follows:

(a) $0 down (I paid $1,550 when I picked up the car - which consists of the first month's lease payment, a $795, plus tax, Bank Acquisition Fee, a $45 Documentation Fee and a $100 Registration Fee);
(b) 39-month lease;
(c) 12,000 miles per year;

The dealer agreed to pick up the last month's lease payment on my current car ($390).

I agreed to pay $519 per month. Did I get a raw deal?

anonymousposts · June 2004

If you take the amount of the increased payment ($316-$302 = $14) and multiply it by 23 payments the total is $322. So it appears that you would only have 23 payments. The first months payment is always due at the time of sale so the dealer is probably just rolling the cost of the payment into your lease and they will make the payment for you. However, the only way to know exactly how many payments you will have is to review the contract when the dealer presents it. Make sure you read over it carefully and ensure that it states 23 payments of $XXX before you sign.

nicolelaf · June 2004

thanks carman, since you told me my payment on the audi a4 was a little high, i shopped around and got the payment down $15 per month and got the additional cold weather package included. thanks for your great info. Now a question about upfront costs. I will probably be picking up my car on friday, i agreed to pay $692 upfront (first month payment plus fees). should any of this be listed on the contract as a down payment and therefore be deducted from the agreed upon selling price, therefore using this new number to calculate the monthly payment? Or in the alternative, is this considered no down payment and then i pay one less payment (instead of 42, i would pay 41)? thanks for all of you help. nicole

dosei · June 2004

Carman:
Does the $675 monthly payment for the 325ciC include any current BMW incentives? Also, is this price a good price or a good deal? What price would constitute a good deal so I have a goal to negotiate towards? Thanks.

CarMan@Edmunds · June 2004

Hey Stacey. Here is the latest info that you are looking for. If you were to lease a 2004 Honda Accord Accord EX-L without navigation through American Honda Finance Corp. this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00118 and 55%, respectively in every state but New York. If you were to lease an otherwise identical car with navigation, everything would be the same, but the residual value would fall to 52%. I believe that this lease program is scheduled to run through July 6th. I am not sure when the 2005 Accords are scheduled to hit showrooms, but if I had to guess I would say that it will be another couple of months before they do.

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CarMan@Edmunds · June 2004

You're welcome, mbonus. I don't believe that Subaru is providing any sort of lease support on the 2005 Impreza yet. This is why its money factor is so high right now. I suspect that it will drop over the next couple of months, once all of the remaining 2004s are gone and Subaru has to add incentives to the 2005 model.

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CarMan@Edmunds · June 2004

Very interesting, dosei. I have heard that BMW Financial Services is offering 39 month leases on AWD 3-Series models, the X3, and the X5, but I didn't think that they were offering them on any other vehicles at this time. It may have revised its lease program. In your post you mentioned that you are looking for a lease calculator. Here is a link to the one that is available at Edmunds.com: Edmunds.com Lease Calculator.

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CarMan@Edmunds · June 2004

You're welcome, westtx. If you are leasing your Honda Odyssey through AHFC and decide to purchase it at its lease-end purchase option price there is a very good chance that AHFC will let you finance the entire amount through them, provided that you haven't missed any payments and that your credit is in decent shape.

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CarMan@Edmunds · June 2004

Anonymousposts, AHFC will waive any excess wear and tear charges up to $1,500, except for damage caused by any single event which exceeds $500, but it will not waive excess mileage charges.

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CarMan@Edmunds · June 2004

No problem, cjs2002. Make sure to let us know how everything turns out.

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CarMan@Edmunds · June 2004

Hi wilco. I know that AHFC will waive its security deposit requirement in exchange for a slight money factor increase and that it will allow lessees to bake its acquisition fee into their vehicle's capitalized cost, but I did not realize that it will allow consumers to finance their first month's lease payment. If it does allow this to be done, I am not sure that it will, then I suppose that you would only have to make 23 more payments on a 24 month lease.

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CarMan@Edmunds · June 2004

Congratulations on your new ride, danmiz. Are you in New York or Rhode Island? I ask because you paid a lease acquisition fee of $795. This is Infiniti Financial Services' base acquisition fee in those states. It only charges $550 in the rest of the country. I just calculated a sample lease payment on this vehicle for you and I came up with around $512 per month before tax, so it looks like you did just fine. Enjoy your new Infiniti.

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kyfdx · June 2004

I did this on my last AHFC lease. It works the same as rolling negative equity into the lease.. Technically, you could even roll the security deposit in as well. The dealer's lease calculator comes up with an upfront figure assuming a normal lease, then they enter what you are actually paying up front (in my case, $0) and the calculator adjusts the payment. I made 35 payments on my last lease. I'm not sure you can get that to work with the leasewizard calculator though.

regards,
kyfdx

danmiz · June 2004

You're right, I am in New York. Thanks for all your help, Car_Man.

stlshopper12 · June 2004

I have a Jetta leased through VW that is in it's final year. I heard that VW was letting people turn their leased vehicles in early during the final year if they bought or leased another new VW. Does anyone know if this is still true?

benjaminh · June 2004

Hi,

I have $2500 in "GM dollars" on my old-style GM card (the one without limits on how much you can use per car). Can these in some way be applied to leases, or is it only for purchases?

Thanks

pgill · June 2004

Car Man -

Can you please tell me the money factor and residual for 24 month, 24k mile and 36 month, 36k mile leases for Chrysler Pacifica AWD? Also, if you are aware of any incentives in NJ for this vehicle, please let me know as well.

Thank you in advance.

danmiz · June 2004

Car_Man,

Thanks. One more question. When you say $512 per month "before tax," does "before tax" mean the lease payment before the sales tax (which was roughly $1,750 in my case) is rolled into the lease payments and spread out over 39 months (i.e an additional $45 per month)?

janamax · June 2004

Hi Car_Man. First, I'd like to say thank you for all the time and effort you put into answering everyone's posts. I have learned so much since I discovered these forums (which was very recently). I am hoping that you could give me residuals and money factors for the 2004 Mazda 3i and 3s, as well as the Mitsu Lancer OZ-Rally (both with 48 month leases and 12k miles per year). If I left out any info you need, let me know. Oh... I'm in North Carolina, if you needed to know that.

mynxee · June 2004

I'm sure this is a topic beaten like a dead horse, but I could really use some help and advice.
I leased a 2002 Nissan Altima for 400 a month in May 2002 for 48 months. I want to get out of my lease because I am moving residences, but staying at the same workplace. My lease allows for 12,000 miles a year (and I already am up to 28,000). I will be driving many more miles a day, racking up the mileage. Also, I would like to try and save more on gas with a smaller, more efficient vehicle. I love the new MINI and wonder what my options are for getting out of my lease.
Can I trade it in for a different car? If so, how does that work? Should I keep it until the end of the lease? But then what?
I would appreciate any advice on the matter.

Thanks!

Leslie

307web · June 2004

It will probably be cheaper to just buy the car at the end rather than paying the massive penalties to get out early, plus having to purchase another vehicle on top of that.

roames · June 2004

Hello. Just got my Odyssey 2004 EX-L w/DVD. Going over my lease agreement, and see that while it has a nice residual value ($17068.80 after 42 months), my money factor is pretty darn high. 0.0036. I have excellent credit. I think I need to get this fixed. Any suggestions?

wibble · June 2004

With a lease you pay the sales tax on the monthly lease payment (at least here in California). Therefore with a payment of $400 a month and a sales tax rate of 7.75% here, the total payment would be $431.

sebzx79 · June 2004

Hello Car_Man, I have been reading the leasing section for quite some time but this will be my first crack at a lease if everything looks good.
Could you provide me with Money factors and residual on a 2004 VW Passat GL auto. I know I can buy the car for about 5500 of sticker so the lease my look really good at present time since their are not going to build the GL any more.

Thanks in advance

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