Lease Questions - Ask Here

CarMan@Edmunds · June 2004

Don't worry about it, mzinzi. I am always goad to help. According to the latest information that I have seen, if you were to lease a 2004 Volkswagen Beetle GLS 1.8T Convertible through VW Credit this month for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00132 and 51%, respectively. The numbers for otherwise identical 39 and 42 month leases should be .00145 / 48% and .00145 / 47%. When negotiating your lease on this car, keep in mind that Volkswagen is providing $500 dealer cash on VW Credit leases 2004 Beetle Convertible models in June. This cash will help you to negotiate an attractive selling price.

If you were to lease a 2004 Audi A4 1.8T FrontTrak Cabriolet through Audi Financial Services in Connecticut this month for 36 months with 10,000 miles per year, its base lease money factor and residual value should be .00190 and 57%, respectively. The numbers for otherwise identical 39, 42, and 48 month leases are .00190 / 54%, .00190 / 52%, and .00200 / 48%.

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fish8 · June 2004

I just left a VW dealer and was talking to them about trading my current Jetta for 2004 Passat GLS W/ Automatic. They gave me a price of $21,900 as the proce of the Passat. This is $1000 below invoice. How likely is this? It sounds very fishy to me. I know there are incentives on Passats, but $1000 below invoice is sounds too good to be true. Thoughts?

CarMan@Edmunds · June 2004

Hey Mike. The last time that I saw Subaru's lease program for the 2005 WRX STi Sedan, its 36 month, 15,000 miles per year base lease money factor and residual value were .00265 and 51%, respectively. This program is not that great. It would not surprise me if you were able to lease this model for less through an independent bank. Perhaps your dealer is using a different bank for your lease. This would explain why our numbers are different.

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CarMan@Edmunds · June 2004

You're welcome, Kpbuck. I just calculated a sample lease payment on this car for you. According to my calculations, if you were to lease a 2004 Audi A6 S with an MSRP of $46,940 and a selling price of $41,180 through AFS in Ohio this month for 4 years with 12,000 miles per, your zero down, pre-tax monthly lease payment should be right around $456.

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CarMan@Edmunds · June 2004

I'm never too busy to help out a community member in need...well almost never anyhow

. Let's work up a sample lease payment on this truck for you and see what we come up with. According to my calculations, if you were to lease a 2004 Grand Cherokee Laredo 4WD with an MSRP of $33,025 and a selling price of $25,798 through Chrysler Financial this month for 39 months with 12,000 miles per year, your zero down, pre-tax monthly lease payment should be right around $321. I am not familiar with how sales tax is calculated in your area, but the payment that you were quoted, including tax, looks as though it is in the right ballpark to me.

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mbonus · June 2004

Thanks Car_Man,

Your 51% residual is in line with what the dealer found. On my initial request, I think you gave me numbers that were based on a Subaru RS (57% residual). This clears things up quite a bit, and given these residuals, I will probably look at other cars.
Thanks for all of your help,

Mike

roadrunner955 · June 2004

Thank you so much, its amazing how little I know...

goalpost · June 2004

Hey Carman,

Looking at leasing a 2004 Escalade ESV in Northern California. Interested in 36 and 48 months with 15K/yr. Can you help with money factors (or lease rates since it's GM) and residuals?

carnutt1 · June 2004

Car_Man,
Local dealer has a red 03 tt coupe 225 with bose and premium packages that they haven't sold yet. Can I still lease this through audi credit being that it's over a year old now but still is a new car(200 miles)? If I can what would residual and mf be? Thanks

robco62 · June 2004

I have a 3 year lease on a 2002 Jetta 1.8T that is running out in August. The residual is 14,250. The car has been ok, no major problems.
I have 31K on the car.
So basically, I am thinking, rather than shell out 15K to buy out the car, why not just get a new car. I am looking at Toyota Matrix, which would be a bit more, but with 0% financing, would end up being the same. The Matrix doesn't have the power of the Jetta, but it seems to be a good car, by reliable manufacturer, and I'd being paying same for a NEW car, rather than a USED car. Thoughts

kyfdx · June 2004

New Toyota vs. Used VW

Same price?

Simple answer: Buy the Toyota

robco62 · June 2004

Thanks kyfdx

stats · June 2004

Hi Car_man:

Looks like I am going to go with the Acura, 36 mo and 15k miles. Just so I can be informed, can you tell me what is included and not included in a lease with AHFC? You mentioned that gap insurance is actually included, which was a surprise since I had one dealer willing to sell it to me. I have to pay 1st month lease, and a security deposit for my drive off cost? Plus registration fees and a tire fee (I believe this may be a CA thing). Is there an acquisition fee required or anything else? Can the security deposit be folded into the lease (I had one dealer suggest that this was possible)?

Finally, what is the 48 month 15k lease MF and residual? I had one dealer suggest that this was the best deal in the Acura line right now.

Thanks again for all your help.

Mark

kswan · June 2004

I have traditionally bought used cars anywhere between 15000 and 40000 miles. Recently bought a new car first time in a long time. Usually didn't care for the idea of leasing. Now I have a situation where leasing may be better. Need opinions from others. I have a 1997 Astro van that has been paid off for 1 year. My wife and I wanted to drive it and save money for a pickup truck in a couple years to pull a fifth wheel that we want to buy. Not ready to buy a pickup just yet. Now the transmisson went on the Astro van and is starting to nickle and dime us. Thought maybe we should lease a SUV for 2 years and buy our pickup at the end of the lease. Good idea or not? Should I just repair the van and take my chances?Will probably have to spend the money anyway in order to sell it. Always been skeptical of leases but this may be a way to have a new vehicle that I could give back in 2 years and buy the pickup.What do y'all think.

hartt · June 2004

I don't know why, but my father has taken an interest in the Xtreme. Could you please provide me the MF and residual for a 36 month lease with 12K and 15K a year?
Thank you Car_man.

Tim

tburn · June 2004

Car_man,

Thanks for the info. Based on the traffic I've seen in the showroom I think I should be able to get the TL down a little in price. We will see what happens. This gives me a good idea of what to expect, though. I feel much more confident about not being "taken" now. Again, thanks :>

janamax · June 2004

Hi Car_Man. I think you may have missed my question from a few days ago, so I thought I'd repost (sorry to bother you). I was hoping you could let me know what the residual and money factor would be on the Mazda 3s. I plan to go with a 48 month lease with 12k miles per year. It seems like Mazda doesn't have much lease support on this model right now because of its popularity. Although where I live, in NC, it doesn't seem to be "flying off the shelves"... Your thoughts?

gwarren · June 2004

Thanks Car_Man,
But in your opinion, the chance for a better deal would be?

Before the July fourth weekend or in the next quarter July through end of September?

CarMan@Edmunds · June 2004

Hi fish8. Volkswagen is having a tough time selling some of its cars right now because a few of its models are a little long in the tooth. I definitely would not be surprised if you were able to purchase a 2004 Passat GLS 1.8T for $1,000 under invoice because Volkswagen is providing $2,000 dealer cash on this model in June. So if your dealer was to sell you this car for $1,000 below invoice, it would still make $1,000. There is not as much dealer cash available on leases though.

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fish8 · June 2004

Thanks!!! On top of the $2000 I am also getting a $1000 owner loyalty rebate. It was sort of sad but funny: When I was talking with my sales person he came out and said he needed the sale "Bad".

CarMan@Edmunds · June 2004

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

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CarMan@Edmunds · June 2004

Wow that was fast, fish8. You must have been waiting in ambush

. Since you qualify for $3,000 in cash incentives on this car, you should be able to get one for less than the $1,000 under that you were already quoted without too much trouble. Good luck.

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CarMan@Edmunds · June 2004

Any time, roadrunner955. Please let me know if you have any other questions.

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fish8 · June 2004

I tried to get them to provide additional money off, but they said they were giving me a deal where they were loosing money. I thought $21.9 was a great price. i just wish I could wait for the new Passat's to come out in the fall of '05.

CarMan@Edmunds · June 2004

Ahhh, I see that you already know about the fact that GMAC uses lease rates instead of money factors. I'm impressed

. OK, here is the information that you are looking for, goalpost. If you were to lease a 2004 Cadillac Escalade ESV through GMAC this month for 3 years with 15,000 miles per, its base lease rate and residual value should be 3.1% and 50%, respectively. The numbers for an otherwise identical 4 year lease should be 3.1% and 44%. When negotiating your deal on this truck, keep in mind that GM is providing $1,000 lease loyalty cash to current GM owners and $1,500 conquest cash to current owners of non-GM vehicles. This money will help you to negotiate a more attractive capitalized cost.

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CarMan@Edmunds · June 2004

Hello carnutt1. Vehicles' residual values fall as the model year progresses. At some point, very late in the model year vehicles residuals have fallen to the point that it no longer makes sense for captive finance companies to lease them (remember that the lower a vehicle's residuals are, the more depreciation you have to pay, and the higher your monthly payment will be). When this happens, automakers stop leasing the leftover vehicles and begin to provide dealer cash, or increase the existing dealer cash, on the models that need a little help being unloaded. I do not believe that Audi Financial Services is leasing 2003 models any longer. If you really want this TT, you are probably going to be better off financing it.

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CarMan@Edmunds · June 2004

Hey Mark. American Honda Finance Corp. charges a lease acquisition fee of $595 on its deals. Part of this fee is used to pay for gap insurance on all of the vehicles that it leases. At lease signing, consumers usually have to pay their vehicle's first month's payment, a security deposit that is equivalent to that payment rounded up to the nearest $25 increment, the aforementioned lease acquisition fee, their down payment (which you should not make when leasing), and any sort of taxes and fees. AHFC will waive its security deposit requirement in exchange for a slight increase in the lease money factor. AHFC's 4 year, 15,000 miles per base money factor and residual for an '04 TL without navigation should currently be .00215 and 48% in your state.

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aea6574 · June 2004

Any thoughts on the Mazda MPV lease? I get S-Plan pricing. So I can get a fully loaded Mazda MPV with DVD entertainment for approximately 0$ down either way. Lease would be 398$ for 36 months with 12k per year. Buy would be $496 for 60 months at 0%.

We like the idea of leasing but are worried that buying might make a better financial judgement.

I look forward to hearing from you.

Best regards, tony

mzinzi · June 2004

Well CarMan, the wife has got the convertible bug, so I need some info on another one...

2004 Honda S2000

36,39,42,48 Months

12,000 miles per year

As always, Thanks in advance!!!

mruck · June 2004

I have a couple of questions:
Do all VW dealers charge a termination fee if you do not buy the car? I lease a 2001 Jetta Wolfsburg for 36 mo, 12K a year. I had to pay a $250 fee. Is this normal?

What is defined as "normal wear and tear" on a vehicle? I am being charged for a dime sized door ding that is barely noticeable and a "surface rub" from a duffle bag on the trunk of the car that would only show up on the cheap VW paint job. It seems that they want a car returned in showroom condition. I talked to quiet a few people in the neighborhood who have leased cars and asked them about the condition of my car before returning the car later in the day. They said I should get all my money back.

I also want to remind everyone leasing a car that you need to go over the final lease agreement VERY CAREFULLY because the numbers magically change when entered into the computer.

Thanks

CarMan@Edmunds · June 2004

Hi kswan. If you feel as though you are not ready to purchase your ideal pickup truck yet, leasing an SUV for two years until you are ready is not a bad idea, provided that you get a good deal on the vehicle that you want to lease. You also may want to consider leasing the pickup truck that you are interested in for a couple of years and then purchasing it at the end of your lease. The only problem with this scenario is that the lease programs on most pickups are not that great right now. The first thing that I would do if I was in your situation is take your van to a good mechanic and have them take a look at it. You are going to have to get it fixed to sell it anyhow, so you might as well find out exactly what is wrong with it and how likely it is to have another major problem in the near future before you take any action. If your mechanic feel as though your Astro will not continue to be problematic, then you can always hang onto it for a few years. If you feel as though you will continue to have problems with your Astro, then you can look into getting a new vehicle. Since you are already driving a van, you may want to consider leasing a 2004 Honda Odyssey for two years. Honda is running a two year special lease on this model right now that would take you right up to your target purchase date for your pickup.

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CarMan@Edmunds · June 2004

Hi Tim. To each their own, I guess. I believe that GMAC's lease program for this truck varies by region. In general though, this truck's lack of lease support really make it a pretty bad candidate for leasing. Here is the information for the state that is listed in your profile. If you were to lease a 2004 Chevrolet Blazer 2-Door (I believe that the Xtreme model is a 2-Door, correct me if I'm wrong) through General Motors Acceptance Corp. in its South Central region this month for 3 years with 15,000 miles per, its base lease rate and residual value should be 3.5% and a miserable 33%.

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jluague · June 2004

Hello Carman,

I am considering leasing a 2004 Toyota Sienna, either LE with MSRP of $28,690 and negotiated price of $ 26,584 or XLE with MSRP of $32,895 and negotiated price of $29,550. Kindly help me find the lease payments for 36 months, 12K per year for both vehicles. If possible,kindly provide me with the money factor (excellent credit) and residual values. I would like to know too of 48 month lease numbers. I am located in Bayonne, NJ. Thank you.

stats · June 2004

Are the 36 mo/15k mi lease terms the same for the G35 and G35x? I may end up having to go the Infiniti route because it seems to be $100 a month less than the Acura TL.

Thanks,
Mark

barbecuejoe · June 2004

'04 4x4 MSRP $63,045
Ultimate pkg, Pwr Boards, Navigation, 18x8 Chrome wheels, Rear Ent System
$50,597 after all discounts and rebates
48 month lease, $0 down, $793 per month (incl PA. tax)
12k miles per year

Is this a good deal?

fuzlbutt · June 2004

Thanks, Car_Man! Car is here, but now dealership (who agreed with the .00086 base MF and .53 residual based on 12,000 annual miles) is saying there is an additional .00005 "Minimum Rent Charge Factor", so my actual rate would be .00091. They faxed me a copy of the lease factors for June for Indiana and sure enough, this shows up in a separate box in the bottom of the page. However, I think this just means the minimum rate they are ever allowed to charge on a lease and is not additive to the .00086 rate. Am I right this is included in the .00086?

goalpost · June 2004

Thanks for the info Car_man!

I have read through a lot of your previous comments so I knew about GM and lease rates.

Are the lease rates and residuals for the Platinum version identical?

wibble · June 2004

The wise man says, "You drive a car, not a payment."

acf47 · June 2004

Hi,

I'm a year out of college and working full-time and am considering leasing a 2004 Honda Civic LX. However, I have never gone through the leasing process before. I have been doing my research about buying versus leasing, negotiating, hidden costs, etc, but I am not sure what I should have ready when I do go to lease the car (paperwork, documentation, check etc.). Also, I have an out-of-state driver license and no car insurance. As you can see, I need A LOT of guidance! Any advice is appreciated.

Thanks in advance,
acf47

anonymousposts · June 2004

I would obtain insurance quotes before you go in to purchase the vehicle. Once you have a quote you are happy with and have decided on a vehicle you can call to get insurance on the car while you are at the dealership.

As for ID ... in GA you are required to have a GA license to register the car in GA. No exceptions to this rule unless you are military and can provide written orders showing you are temporarily stationed in GA. State law varys so check with your local DMV to see if you need an in-state license to purchase a vehicle.

christina3 · June 2004

We just leased a 2004 toureg with the intention of buying it after our 6 yr lease is up. We would like to refinance the car in two years because we will have the cash to put down. How will this effect the overall price of the car?

CarMan@Edmunds · June 2004

You're very welcome, tburn. I am glad that I was able to help you out. Let me know how things turn out.

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CarMan@Edmunds · June 2004

A post or two occasionally falls through the cracks, janamax. Sorry about that. Thanks for reposting your message. Mazda is not providing any sort of lease support on the Mazda 3 right now. If you were to lease one at this time I suspect that you would be able to get the best deal on it by leasing it through an independent bank. Dealers have computer systems that enable them to look up the best lease programs that are available on a vehicle at any given time. If I was in the market for this car, I would comparison shop for lease quotes with a few dealers to see what sort of payment one can expect on this car right now.

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fish8 · June 2004

I have an odd question. For a lease, if the dealer tells you that the money due at signing is $1000, does that amount usually include the Doc fee? I thought the doc fee was in addition to the money down. But, the delaer says the doc fee is included in the money down quote given along with the tag fee.

CarMan@Edmunds · June 2004

That's a tough call, gwarren. I expect that Lexus Financial Services will publish a new set of residual values in the beginning of July. There is a very very good chance that its residual values for the RX 330 will be lower when it does. By itself, this would cause this truck to be more expensive to lease. Also, banks' standard interest rates are not going to get any lower than they are right now. Several captive finance companies have already increased their standard lease money factors over the past month or two. So if one was positive that Lexus was not going to introduce some sort of special program on this model, it would probably would be better to lease prior to the beginning of July. Having said this, if Lexus decides to introduce a special lease program, either specifically on the RX 330, or brand-wide, then you may be better off waiting. If I was personally going to lease this model, I would probably do so now, but as I always say it is difficult to predict what automakers will do with their future incentives with 100% accuracy.

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CarMan@Edmunds · June 2004

Hello Tony. Mazda has some fairly attractive lease money factors available on the 2004 MPV at this time. Specifically, its 3 year base money factor for this van is .00059, which is equivalent to an interest rate of right around 1.4%. It also is providing very attractive financing rates on this vehicle this month. It is offering 0% financing for up to 5 years on the '04 MPV. If I was in the market for this model, I personally would be leaning towards financing it rather than leasing it, but you really can't go wrong with either choice.

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CarMan@Edmunds · June 2004

Tis the season for convertibles, mzinzi

. I wish I had one myself. As one might expect, Honda is not currently providing any sort of lease support on the S2000. So if you were to lease one through American Honda Finance Corp. right now, you would have to use its standard lease money factors. Unfortunately, it recently increased its standard lease factors. They still aren't bad, but are not nearly as attractive as they were two months ago. Its current standard money factors are .00255 for 36 and 39 months and .00225 for 48 months in every state but New York. AHFC's 12,000 miles per year residual values for the 2004 Honda S2000 are 59% for 36 months, 55% for 39 months, and 53% for 48 months.

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CarMan@Edmunds · June 2004

Hi mruck. Least termination fees, or disposition fees as they are sometimes called, are not levied by individual dealers, but rather are charged by the bank that you are leasing your vehicle through. Not every bank charges this sort of fee, but I believe that VW Credit currently charges a disposition fee of $350. This fee may have only been $250 when you originally leased your Jetta. You may be able to get them to waive this charge if you decide to lease another Volkswagen through them. Each lending institution has its own definition as to what it considers to be excess wear and tear. Many banks provide their lessees with a wear and tear template that they can use to evaluate their vehicles on their own prior to turning them in. I am surprised that you are being charged for such minor problems, but as I said each bank is different.

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CarMan@Edmunds · June 2004

Hello jluague. The new Toyota Sienna has been pretty well recenved by the public and is selling very well. As a result, Toyota is not currently providing any sort of lease support on it. The following are sample lease payments that I came up with using Toyota Financial Services' standard lease program. According to my calculations, if you were to lease any 2004 Toyota Sienna but the Limited with an MSRP of $28,690 and a negotiated price of $26,584 through TFS right now for 3 years with 12,000 miles per, your zero down, pre-tax monthly lease payment should be right around $352. This van's 48 month payment should be around $331. The payments for an otherwise identical van with an MSRP of $32,895 and a negotiated price of $29,550 would be around $376 for 36 months and $359 for 48 months. I arrived at these payments using a money factor of .00225 a 36 month residual value of 61%, and a 48 month residual value of 53%.

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CarMan@Edmunds · June 2004

Infiniti's lease programs for the 2004 G35 sedan and G35 AWD sedan are a little different, Mark. If you were to lease a 2004 Infiniti G35 Sedan with AWD through IFS this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00169 and 58%, respectively versus the .00167 and 58% for the G35 2WD sedan. The biggest difference between the lease programs for these two models is with 39 months terms because Infiniti is providing a fairly attractive 39 month lease program on the G35 2WD this month.

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