Lease Questions - Ask Here

remar · June 2004

Great info here.

I am wondering though when a balloon deal such as Ford's RCO or GM's SmartBuy would be more advantageous than a lease (if at any time). What are the differences?

I am not yet in the market, but have read about this option in the past. From what I have read, a balloon deal is written up as a finance deal, but your monthly payments are calculated using sell-residual, and your options at the end of the term are to walk away, buy the vehicle, or refinance. This sounds the same as a lease. So what is the difference and why is this option offered if it is essentially a lease?

Thanks!

ponytrekker · June 2004

Balloons are a sucker deal. Better off buying a cheaper car and doing regular financing.

sebzx79 · June 2004

Hi,
Your beter of buying a car if you going to drive that kind of milage.
What I would do is buy a two year old TL with around 20k miles on it. Or get a VW Passat TDI, you would get about 38mpg plus its about 30 cents cheaper per galon so it would save you planty of cash on gas plus the resale will be much better with higher milage. Test drive one and you will see that you like it.

Good luck.

ricochet600 · June 2004

Hi Car_man,

Could I get lease figures for the Honda Civic VP and Accord LX (both coupe and sedan) for 36 months and 15K miles/year?

On hondacars.com, it lists a current offers for these two vehicles (sedan only), but says,

"*The specific featured lease listed is not available to New York residents. New York residents should contact their dealer for New York featured lease. Terms and conditions vary for New York Residents."

Do you know what differences there are for NY leases, especially what their bank/lease fee is?

Thanks.

uconsumer · June 2004

Simplyput, could you tell me a little more about the $6475 in (various cust incent/rebates) that you got on your Jeep. The most I have seen is $3000 + $1000 for returning Jeep customers.
Thanks

CarMan@Edmunds · June 2004

Hi christina3. I am sorry to say that I must begin by stating that leases over 4 years in length are never a good idea. In fact, most banks won't even lease vehicles for six years. If you wish to purchase your leased Touareg two years from now, you will need to contact the bank that you are leasing it through at that time to see exactly how much money it will cost you to do so. Unfortunately, it will likely end up costing you more to purchase your leased truck than it is worth on the open market at that time.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · June 2004

Hi fish8. Random fees, like doc fees and such, are usually rolled into the capitalized costs of leased vehicles, but there is no standard for what dealers can charge consumers at lease signing. It is definitely in your best interest to find out exactly what is included in the $1,000 that you will owe when you lease your vehicle.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · June 2004

Welcome back, ajoe. I am glad that you find this discussion so helpful. You never mentioned how long you are interested in leasing this van for in your post, so I will provide you with informaiton on a 2 year lease of it, since that is where Honda is providing its support right now. If you were to lease a 2004 Honda Odyssey EX-RES through American Honda Finance Corp. in any state but New York this month for 2 years with 15,000 miles per, its base lease money factor and residual value should be .00113 and 67%, respectively. The money factor would be exactly the same for a lease with only 12,000 miles per year, but the residual value would increase to 68%. Since your leased van will have fewer total miles on it at the end of a 12,000 miles per year lease than it will at the end of a 15,000 miles per year lease, it will be worth more, you have to pay for less depreciation and it will have a higher residual value.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · June 2004

You're welcome, hartt. I think that your father is better off not leasing the Blazer. Not only is the lease program terrible, but there are many many better vehicles out there. Let's take a look at the lease program for the Trailblazer. If your father was to lease a 2004 Chevrolet Trailblazer LS 2WD through GMAC in GM's southeast region this month for 3 years with 15,000 miles per, its base lease rate and residual value should be 2.5% and 50%, respectively. The lease rate for an otherwise identical lease with only 12,000 miles per year would be exactly the same, but the residual value would increase to 53%.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · June 2004

Ahhh the Audi A8. I really like this car, buster6. I personally would not go with the bought back car though. If this vehicle has had enough problems to have been bought back by Audi then your friend definitely does not want it, regardless of how much less expensive it is. Audis have enough random problems on their own, so why purchase a known problem vehicle. I know that service loaner vehicles do not qualify for the special lease program, so I doubt that a buy back would qualify for Audi's lease program anyhow. If your friend was to lease a brand new 2004 Audi A8 through Audi Financial Services in Arizona this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00104 and 55%, respectively.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · June 2004

You're welcome, barbecuejoe. Let me know if you have any other questions.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · June 2004

Hi salvatore. Assuming that you are leasing your Mitsubishi through its captive finance company, you have to turn it in to any Mitsubishi dealership. When you do, they do not have any authority to waive your excess mileage charges. These are between you and the bank that you are leasing it through. The only way to avoid paying a fine for excess mileage if you exceed your allowance is to purchase your leased vehicle and continue to drive it, try to trade it in on another car or truck, or try to sell it on your own. You may be able to avoid paying your penalty by purchasing your leased car and trading it in, but you will probably have to roll negative equity into your next loan or lease which is never a good idea. Also, you will not be allowed to turn your leased vehicle in six months before your scheduled termination date without making your remaining payments, again unless you purchase your leased vehicle. I am sorry to say that there probably is not any way for you to avoid paying some sort of penalty.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · June 2004

Hi esoxmagnum. I would be more than happy to let you know how much money it should cost you to lease this car, but in order for me to do so I need a little additional information from you first. This information includes the car's exact full MSRP, its selling price, what state you are in, and how many miles per year you need to be able to drive it (15,000, 12,000, or 10,000). It is extremely important for you as a consumer to know this car's selling price anyhow. Remember that the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them.

Even without this information I can tell you that it is never a good idea to put money down when leasing. I say this for two main reasons. The first is that if your vehicle is ever totaled in an accident or stolen and not recovered during your lease, your insurance company pays off the bank that you are leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So this car's purchase option at the end of your lease would be exactly the same, regardless of whether you had put $4,000 down or had made absolutely no down payment at all.

Let me know the answers to the questions in the first paragraph and I will try to give you an idea of how much it should cost to lease this car in your area right now.

Car_man
Host
Smart Shoppers Message Board

rroyce10 · June 2004

... ** A local Dealer (AZ.) has a buy back Audi A8 **

Wonderful vehicles, but something is "hinky" here .. 4k *and* it's a buy back.? .. like Car_man has mentioned, I would be going the other way .......

Terry.

CarMan@Edmunds · June 2004

No problem, jluague. Thanks for the additional information. OK, according to my calculations, if you were to lease a 2004 Toyota Sienna XLE (MSRP: $32,895 / selling price $32,150) through Toyota Financial Services this month for 3 years with 12,000 miles per, your zero down, pre-tax monthly lease payment should be right around $454 or so. The payment for an otherwise identical 4 year lease should be around $419.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · June 2004

Hello Chris. Acura has not enhanced its incentives on the RSX recently. The only sort of support that it has on this car is a special lease program, which has been available on it since March. I am not familiar with what the market is like for this car in your area right now, but I suspect that you should be able to negotiate a price that is only a couple hundred dollars over invoice on any RSX if you shop around a little bit, unless the Type S is really scarce in your area. If you were to lease a 2004 Acura RSX Type S through American Honda Finance Corp. in your area this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00089 and 56%, respectively. The money factor for an otherwise identical lease with only 12,000 miles per year would be the same, but the residual value would increase to 58%.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · June 2004

Greetings keitarou. Here is the information that you are looking for. If you were to lease a 2004 Audi A4 1.8T Sedan with quattro through Audi Financial Services in New York this month for 36 months with 15,000 miles per year, its base lease money factor and residual value should be .00040 and 53%, respectively. The numbers for an otherwise identical 39 month lease should be .00040 and 51% and for an otherwise identical 42 month lease should be .00040 and 49%. If you were to lease this car with only 12,000 miles per year, its residuals would be 2% higher.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · June 2004

Hi Sam. The TL certainly is a very nice car. I almost leased one myself a few months ago. Here's the info that you asked for. If you were to lease a 2004 Acura TL with navigation through AHFC in New York this month for 4 years with 15,000 miles per, its base lease money factor and residual value should be .00235 and 46%, respectively. The factor for an otherwise identical lease with only 12,000 miles per year would be the same, but the residual would increase to 48%. I would be more than happy to work up a sample lease payment on this car for you, but in order for me to do so, I need you to tell me its exact full MSRP.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · June 2004

You're very welcome, chinaman. AHFC's current 3 year, 15,000 miles per base lease money factor and residual value for the 2004 Honda Accord LX are .00032 and 54%, respectively in every state but New York. This car's 12,000 miles per year residual value would be 2% higher. The terms "down payment" and "capitalized cost reduction" are basically synonyms. Down payments on leased vehicles only serve to reduce the amount of interest that you are paying over the life of your lease. They do nothing to reduce your vehicle's lease-end purchase price. If this wasn't bad enough, your risk losing your entire down payment if your vehicle is totaled in an accident or stolen during your lease.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · June 2004

You're very welcome, Gary. You are absolutely correct. Only a select few employees at Lexus know beforehand when it will be offering incentives on vehicles. Its dealers usually don't even get advance notice. In fact, decisions about whether to run promotions are often based upon sales figures and how well the brand is doing so decisions about incentives cannot even be made until sales are reported.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · June 2004

Hey superbeagle. The XC90 is selling at invoice already, huh? That didn't take very long did it. I guess that I am not totally surprised though given how competitive the luxury SUV market is right now. There is a ton of great vehicles in this segment. I am not surprised that you are able to lease this model for less through Chase than you are able to through VFNA. Volvo's lease program on it has never been that great and Volvo Finance has a very low penetration rate on XC90 leases. Most people who lease this "truck" do so through an independent bank like Chase.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · June 2004

Hi ericdkauff. I am not sure exactly what sort of penalty you would have to pay to get out of your lease Audi A4 prior to your scheduled termination date. In order to do so, you most likely would have to purchase your car and then either trade it in on the SUV that you want or try to sell it on your own. In order to find out exactly how much money it will cost you to do so, you need to place a call to Audi Financial Services, or whichever bank you are leasing it through. The difference between how much it will cost you to buy your car and what you can get for it as a trade or by selling it will be what it will cost you to get out of your lease.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · June 2004

Hello Damon. Here's the info that you're looking for. If you were to lease a 2005 Chrysler Pacifica FWD (non-Touring) through Chrysler Financial this month for 36 months with 12,000 miles per, its base lease money factor and residual value should be .00115 and 53%, respectively. The numbers for an otherwise identical 39 month lease should be .00115 and 52%. If you were to lease a 2004 Chrysler Pacifica FWD through Chrysler Financial this month for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00165 and 51%, respectively. The numbers for an otherwise identical 39 month lease should be .00165 and 50%. As far as cash incentives go, DaimlerChrysler is providing $3,000 lease cash on the '04 Pacifica and $1,000 on the '05 model. It also has $1,000 bonus cash for deals through Chrysler Financial, including leases, on both models.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · June 2004

Hi lbratt. One of the great things about leasing is that as long as your vehicle has been repaired properly, your bank is not allowed to charge you any sort of fine for excess wear and tear. You can just turn in your leased car at the end of your term and walk away, leaving the bank that you are leasing through to absorb any sort of diminished value hit. So, if you are actually able to get any money out of your or the other driver's insurance company for diminished value it would just go right into your pocket unless you are required to give it to your bank. The fact that you were in an accident will not allow you to get out of your lease early, unless the car was totaled, which it was not. In fact, it actually makes it more difficult to get out of this lease early because in order for one to get out of a lease early they have to purchase their leased vehicle and then trade it in or try to sell it on their own. Since this car has been in an accident, it will definitely be worth way less than the bank would be willing to sell it to you for. Not to rub salt in your wound, but it is never a good idea to put money down when leasing. Down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So this Accord's lease-end purchase price would have been exactly the same, regardless of whether you had put $6,000 down or had made absolutely not down payment at all. Sorry that I don't have better news for you.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · June 2004

The difference is that the first dealer was trying to make a lot more money on your deal than the first was, tdkeator. Fortunately, you were smart enough not to accept the first quote that you were given, like a lot of people do, and shopped around. Good job.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · June 2004

Hi simplyput. Capitalized cost reductions, or down payments as they are often called, are not required to lease any vehicle. Consumers can and should lease any vehicle that they are interested in without making any sort of down payment. Having said this, in order for you to lease this truck for the same monthly payment without making a capitalized cost reduction, you will have to negotiate a price that is $1,200 lower. If you can't, then your lease payment will go up a little bit, but at least you won't have to put any money down.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · June 2004

Hi Gwarren. I am sorry to hear about your friend's loss. This is an unusual situation. Even though the lessee has passed away, their estate is still responsible for the remaining lease payments on their vehicle. Some banks have provisions in their leases that terminate them when the lessee passes away, but I do not believe that Volvo Finance does this. Again, this is an unusual situation and I am not sure exactly sure what Volvo Finance's policy is on this matter. If you don't like the answer that its representative gave you, you can always try to speak with a manager.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · June 2004

Hello kevhead. As you already seem to be aware, the highest mileage allowance that American Honda Finance Corp. leases vehicles with is 15,000 miles per year. If you need to drive your car more than this, you will have to purchase additional miles on a per-mile basis. It is less expensive for you to do so at lease signing than it is for you to pay an excess mileage penalty at the end of your lease. If you really want to lease, there is nothing wrong with purchasing additional miles. In fact, it often turns out that the excess mileage costs less than the depreciation that one would have experienced for those miles if they had purchased their vehicle instead of leasing it. You really can't go wrong with leasing or purchasing the Acura TL. It has solid residual values, resulting in a relatively attractive lease program for an unsupported vehicle. Purchasing it isn't bad either because TLs tend to hold their value well.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · June 2004

I am glad that you enjoy this discussion so much, remar. Balloon notes are actually very similar to leases in that they allow consumers to drive vehicles with a low monthly payment and provide them with an option to purchase their vehicle for a contracted price at the end of a specific period of time. The main difference between leases and balloon notes is that with balloon notes the person who has the note on the car or truck has their name on its title, while with leases the bank's name is on the title. Balloon notes have become much more popular over the past couple of years, mainly because of the vicarious liability laws that exist in states like New York. These silly laws basically make it possible for the victim of a car accident with a leased vehicle to sue the bank that is was being leased through because its name is on the title. Balloon notes prevent banks from being liable in these situations because the bank's name is not on the title. I personally prefer leases to balloon notes because I am much more familiar with how they work, but there is absolutely nothing wrong with entering into a balloon note on a vehicle, especially if you live in a state like New York. Ford and General Motors have some very attractive balloon notes available on their models.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · June 2004

Hey ricochet600. American Honda Finance Corp. actually quit leasing vehicles to residents of New York a couple of years ago because of the additional liability that it is exposed to in this state (see my previous post for more info on this situation). It finally began leasing vehicles to residents of New York again about a year ago, but it has higher money factors in this state to help make up for the additional risk that is associated with leasing there.

Here are the lease programs for the two cars that you are interested in if you were to lease them in New York. AHFC's 3 year, 15,000 miles per base money factor and residual value for an '04 Honda Civic VP are currently .00091 and 51%. Its numbers for an otherwise identical lease of an '04 Accord LX are .00080 and 54%. Some banks charge a higher lease acquisition fee to residents of NY, but I believe that AHFC's base acquisition fee is $595 in all states. When negotiating your leases on these cars, make sure to keep in mind that Honda is providing $400 dealer cash on the '04 Civic, $500 on '04 Accord Sedans, $800 on Accord Coupe 4-cyl., and $1,000 on Accord Coupe 6-cyl. models that will help you to negotiate a more attractive capitalized cost on them than you normally would have been able to.

Car_man
Host
Smart Shoppers Message Board

ddelise · June 2004

Car_Man - Thanks so much for your information - I really appreciate it. My wife's current lease is due in about 3 months, so I am going to ask you this same question a couple of more times I am sure! I am going to try and wait until October to get the car - the Chrysler Golf Classic is in town (Tampa) during that month, and for the past couple of years Chrysler provides an additional $1000 bonus for cars loaned out to the players.

In your answer to me above, for the 2005 Pacifica, you mentioned the non-touring rates.

I apologize for the mistake, but I am actually interested in the touring model. Can you let me know if the residual and money factor is different.

For my calculations, I am also assuming a $550 Chrysler bank fee - is this correct?

Once again, thanks for your service.

Damon

kevhead · June 2004

Thank you for your time

chile96 · June 2004

I'm a porsche nut so I don't know squat about volvos but now I need to. My sister is insisting on leasing an S40 tomorrow or wednesday because "the salesman is so nice". She has NO idea of leasing and as long as she's paying under $500/mo she thinks she's doing well. The salesman told her he thinks he can get her into an S40 with a sticker of ~$26K for roughly $400/mo for 48mos. I laughed but thankfully was able to get her to leave the volvo dealership so now I'm calling on you. for some much needed help.

She's thinking 48mos but I'm trying to convinve her on 36mos. What are the MF's for these two time frames? And what would be a good residual % and cap cost I could get for her for 36 or 48mos? This is for a ~$26K base model S40 in San Antonio. Any incentives or anything brewing that you're hearing?

thanks for any help and I'll let you know how it goes
frank

czm3136 · June 2004

I have a question that I hope someone out there might be able to help with.

I am turning in a 2001 RSX next month and I was under the impression that Honda Finance's damage allowance for a returned lease was $1500. I am now reading that they allow $500 for a 'single event'. Don't you know that the inspector estimated the damage for a dent that I have at $505.

So here is my question:
a) does anyone know what the true damage allowance is for an Acura that was leased in 2001
b) do you think I have any recourse with American Honda Finance - it seems a little coincidental that the allowance is $500 and he estimated $505.

If anyone has additional advice on how to avoid/argue paying this fee, I would greatly appreciate it.

shftthis · June 2004

Thank you so much for your time and valuable input on the 6MT Navi TL Lease Car_man. The full MSRP for the vehicle is $35,195. Kindly provide me with a sample lease payment based on a 4 year lease 12k miles per year through AHFC this month. Thanks much.

Sam

CarMan@Edmunds · June 2004

You're very welcome, Damon. The lease program would be exactly the same for the 2004 Pacifica, but the '05 Pacifica Touring FWD has a higher lease money factor of .00165. The residual value for the 2005 Pacifica would still be the same. You are correct, Chrysler Financial's base lease acquisition fee is currently $550.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · June 2004

No problem, kevhead. Let me know if you have any other questions.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · June 2004

Hi Frank. I assume that you are talking about the 2004.5 Volvo S40, rather than the 2004 model. If your sister was to lease a base 2004.5 Volvo S40 2.4i with an automatic transmission, but without the climate package through Volvo Finance right now for 36 months with 15,000 miles per year allowed, its base lease money factor and residual value should be .00046 and 53%, respectively. The numbers for an otherwise identical 48 month lease should be .00022 and 41%. As you can see, Volvo is providing quite a bit of lease support on this car. It appears as though it is providing its most attractive lease money factors for 48 month leases of this model. I would be more than happy to calculate a sample lease payment on the car that your sister is interested in for you, but in order for me to do so, I need you to provide me with its full MSRP and selling price. I can work up a sample lease payment on a similar car for you for now. Let's say that your sister was to lease a 2004.5 S40 2.4i with automatic transmission that has a full MSRP of $26,075 for $500 over invoice, $25,231, through Volvo Finance right now for 36 months with 15,000 miles per year. According to my calculations, this car would have a zero down, pre-tax monthly lease payment of right around $335 and a 4 year 15k payment of around $311.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds · June 2004

You're welcome, Sam. Let's work up a sample lease payment on this car and see what we come up with. According to my calculations, if you were to lease a 2004 Acura TL with navigation with an MSRP of $35,195 and a selling price of $33,950 through AHFC in New York this month for 4 years with 12,000 miles per, its zero down, pre-tax monthly lease payment should be right around $475.

Car_man
Host
Smart Shoppers Message Board

jimmers · June 2004

Car Man: As I'm sure you know, Audi is offering the following deal on an A6 lease (at least in DC, where I live).

$429* lease per month for 42 months
Down payment $2,395
Refundable security deposit $450
Acquisition fee $575
First month's payment $429

Rate based on $47,270 MSRP of 2004 Audi A6 2.7 T sedan with quattro including Luxury pkg., Premium pkg., Cold weather pkg., Northeast emissions and destination charge.

Purchase option at lease end for $22,689.60.

I'm interested, and probably ready to pull the trigger, but I have a bunch of questions.

First, what's a realistic cap cost on this car? I gather from earlier messages that Audi is offering $2,000 in dealer cash. Is there a hold back as well? Or are these all built into the lease price in the form of "dealer particpation"?

Second, what are the money factor and residual value for this car? (And is RV calculated against MSRP or purchase price?)

Third, can you give me a simple formula for figuring out what the lease should cost if the cap cost changes (e.g. I go no money down or I negotiate a better price)?

Finally, what's your view of this deal generally? Is there anything comparable that you like better? I know, for example, that BMW is offering a lease deal on the 525i and Mercedes is offering a lease deal on the ML 350.

Many thanks for your help.

staceys · June 2004

CarMan, do you know what the current NMAC lease terms would be(money factor and residual value rate) for a 2004 XTerra XE, 36 mo./15,000 mi. The MSRP is $22,610 on this particular vehicle. I have excellent credit, which I would imagine determines what money factor rate a customer receives.
Thanks.
-stacey

chile96 · June 2004

Thanks for the above info. The salesman just quoted her and it seems ridiculous. The MSRP is $26260 and volvo has a $3000 cap cost reduction so he's figuring $23260 as th cap cost - but shouldn't she bargain for more off than just the cap cost reduction supplied by volvo? Anyway he told her the MF was .00438 (for both 36 & 48 mos)b/c she was a first time buyer which she is but has alot of revolving credit history. SHe's been out of law school for a year and just signed on with a big firm starting in August - right now she's squeaking by clerking for a fed judge. He did say residual was 53% for 26 mos & 41% for 48 mos but the numbers he came up with are pretty high. $488 for 36 mos or $460 for 48 mos. Are these numbers right and if so, is she fighting an uphill battle because she does not have any previous credit. Thanks a ton!

kyfdx · June 2004

That money factor equates to a 10.5% interest rate.. Either her credit is really bad.. or he is trying to make a killing.

regards,
kyfdx

chile96 · June 2004

I think you know which one it is. He is telling her that since she does not have any prior credit other than revolving, that this is the best MF they can do. He said it should be closer to .006 but he's giving her a break since she is a recent grad.
I know that since her lack of credit history might be an issue, what MF should she shoot for?

thanks

frank

kyfdx · June 2004

Well... Usually, if you have really bad credit, you can't lease at all.. I certainly wouldn't lease at that rate. I wonder.. Stop by the local bank or credit union, and see what rate she qualifies for on purchase.. $24K borrowed for 60 months at 8% wouldn't be any more than what they want for that lease.

regards,
kyfdx

lw2809 · June 2004

My husband and I are currently in a major cash crunch, having bought a house while waiting for our old house to sell. We were going to replace my husband's old car as soon as the house sold--and then (unfortunately just after we'd put $1000 into it) the old car was hit from behind and totaled.

The insurance company is going to pay us only $1500-$2000 for the car. We initially tried to find a cheap old used car in that price range, but so far have been unsuccessful. Someone suggested to us that a lease might be a good way to get immediate transportation without large monthly payments or a large initial cash outlay.

Unfortunately, we need to move fast, because we are spending $35/day on a rental car. Is a lease an intelligent option? I think we could settle for a less nice car than we were planning on getting after the house sale.

thanks,

lw

janamax · June 2004

I am nearing the end of my lease (mid July) and have already had the car inspected (no excess wear and tear charges). I also just paid the $250 turn-in fee. I was told by the lease company that the car would picked up on or around July 17. My question is, do I still have to pay my July 17 monthly payment? My June 17 payment has (obviously) already been made. I was under the impression that lease payments are made in advance, rather than in arrears. Can anyone comment on this?

Thanks in advance.

treyrox · June 2004

i am interested in finding out the Residual % and Money Factor on the following '04 2.7T Audi Allroad lease:
45020 MSRP model(premium,cold weather)
36 mth
20k miles per year
in Colorado

how do you think these numbers might change later in the summer based on this being the last model year for the Allroad?

thanks for any info

steine13 · June 2004

Please see my profile for a link to (lengthy) advice on how to drive for cheap.

I don't think you should lease. I think a cheap "commodity car" is in order. Either buy a 3 year-old Prizm for $6-7k or buy a brand-new Tacoma 5sp reg cab for $11. In either case, it's cheap driving for as long as you want... of course, the sales tax is gone, and so is $1-2k, but there shouldn't be surprise expenses with either option.

I despise leasing because there is so little flexibility. It's bad enough to have to ask the bank if you may, please, buy a car.... it's worse to have to ask them, may I please sell it. The nice thing is the option to turn it in and walk away, and the other nice thing is if you get into an accident (and live), it's pretty much the bank's problem.

The "real" solution to your problem is to "always" have $5k lying around for emergencies....

Good luck,
-Mathias

mvd001 · June 2004

I have the opportunity to purchase a 10 month old 2003 Honda Odyssey EX-L with a 6 year extended warranty and only 13K miles for $26,000. This is a great deal but would have a much higher monthly payment than if I leased a new 2004. Any suggestions? I saw that AHFC has a lease special. Is this only for specific models? Will they lease to someone that has poor credit scores? Any advice would be greatly appreciated.

Lease Questions - Ask Here

Comments

Helpful Tools

Most popular vehicles