Lease Questions - Ask Here

CarMan@Edmunds · August 2004

Hi John. I am not exactly sure what you are asking, but I believe that you are talking about the fact that dealers are usually allowed to mark-up vehicles' lease money factors and lease rates. I do not know what the maximum amount that dealers can mark up GMAC's lease rates is, but I suspect that it is somewhere around 3%. Most banks have cut their maximum dealer markups in recent years because there has been a number of lawsuits insinuating that dealers were marking up their rates on certain groups of people more than others.

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CarMan@Edmunds · August 2004

Thanks kyfdx. Yeah, Mazda sure has cranked up its lease support on the RX-8 recently. It's a pretty good deal on a pretty nice car now.

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CarMan@Edmunds · August 2004

Greetings tinlittle. You must have been looking at a post that I made about the Honda Odyssey in June. AHFC's base lease money factor on this van was .00113 then. It was reduced to .00089 in July for residents of all states except for New York. AHFC's 2 year, 15,000 miles per residual value for the '04 Odyssey EX-L is currently 65%. If you were to lease with only 12,000 miles per year, the residual value for this term would increase to 66%. These residual values are all for vehicles that are not equipped with navigation. I believe that nav knocks another 2% or so off of them because this option does not hold its value well.

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CarMan@Edmunds · August 2004

Some banks will indeed negotiate the end of term purchase prices of leased vehicles, otis12. I do not know what GMAC's policy is on this matter, but give them a call and see if they will be willing to work with you. It doesn't hurt to ask. If your initial contact there is not willing to work with you, you may get better results by working your way up the ladder a few rungs to some sort of manager who has more authority. Wait until you are a month or two away from the scheduled end of your lease to call them and never mention if you are way over or way under your allotted mileage. If you are way over, your bank is less likely to work with you because they know that they have an excess mileage penalty coming their way. If you are way under, your car or truck is more desirable to them. Again, there's no guarantee that they will be willing to work with you, but the worst thing that would happen is that they would say no, so why not ask?

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mazdax605 · August 2004

Hey car man what is the 2% low mileage adder you speak of?I got a quote from the local mazda dealer of $309 a month on a base 6 speed RX-8 2 year lease 12k a year.That includes sales tax(5% in MA) and excise tax(not sure of the percent but it is $30 a month).Also there is an acqusition fee.Is that something that has to be paid or can I negotiate it?I have not signed up on the deal yet but did fill out the credit app yesterday.Thanks again

Chris

CarMan@Edmunds · August 2004

Wow, that certainly is an attractive selling price, Chris. You're right, Mazda's money factor on this car is not very attractive. This is because it is providing all of its support on it as cash instead of a low interest rate for some reason. This sounds like a good deal to me. I don't see any reason not to go for it if you like the car. Let us know how everything turns out.

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eruss44 · August 2004

Hi there,Car man, it's me, the pest of this whole website. I'm really not trying to be...I am relatively new to my computer,so I can't cut & paste yet,sorry...I can,however,give you detailed directions to my other postings...I am not knowledgeable in the "residual",etc.,terms used here by some people,so please try to do your best to break it down to me in terms as far as a monthly payment on a GM smartbuy in New York state goes...I am only focusing on the net monthly amount that I have to send out...I hope that you can at least break down the only information that I have provided(however vague it is)and at least give me a thumbs up or a thumbs down on this deal...I think that I am turning blue trying to convey the fact that I definitely cannot afford to buy this truck outright...the payments a month are much more appealing to me from the "smartbuy" end of things...It's the ONLY shot at me getting into a new truck,I'm sure...OK,enough rambling on from me...If you would kindly jump over in the town hall section sub-titled "Prices paid& buying experiences",then,when that comes up, scroll down to "Trailblazer/GM Envoy/Olds Bravada"thread...Once again, sorry for the big goosechase,but I'm a computer illiterate...My multiple posts there are numbered #98,#100,#102,#104...I may have thrown something else in somewhere else, but I think(I hope,actually)that you can make heads or tails of my situation...P.S: someone else on that thread responded to me and thinks that I'm shopping MSRP's,and I am NOT...I am just using what I believe is a somewhat fair way of saying that this truck has a ton of packages which should be equally sticker priced across the U.S. Car man, if you haven't fallen asleep by now ,I could use a different light on my situation...Thanks buddy,~Eruss~

CarMan@Edmunds · August 2004

Congratulations on your new vehicles, tierramom. Thanks for taking the time to come back and let us all know how everything turned out. Enjoy your new trucks

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CarMan@Edmunds · August 2004

Chris, the low mileage adder just means that Mazda's captive finance company's residual values are 2% higher for leases with 12,000 miles per year than they are for leases with 15,000 miles per year. It makes sense that a vehicle that has been driven less will be worth more at the end of two years if one thinks about it. All banks charge an acquisition fee of around $500 on leases. This charge is levied by the bank that you are leasing it through and individual dealers do not have any authority to waive it. You can either pay it at lease signing or have it rolled into your leased vehicle's capitalized cost any bake it into your payment.

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CarMan@Edmunds · August 2004

Hi Kelsey. Most banks use what is known as a lease money factor to calculate the interest portion of a vehicle's lease payment. Money factors can be converted into an equivalent interest rate by multiplying them by 2400. For example, let's say that you are interested in leasing a vehicle that has a money factor of .00150 available on it. When we multiply this factor by 2400 we see that it is equivalent to an interest rate of around 3.6%. Dealers usually do have the ability to mark-up banks' base lease money factors to add additional hidden profit into deals. I am usually able to give consumers an idea of what the base lease money factor is like on the car or truck that they are interested in so that they can avoid this sort of mark-up. If you would like me to tell you what the money factor is like on the model or models that you are considering, let me know exactly what model want, how long you want to lease it for, and how many miles per year you need to be able to drive it.

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CarMan@Edmunds · August 2004

I am not sure that there is a catch with this deal. It would be easier to evaluate it if you would let me know what this truck's full MSRP and selling price are. Consumers should always find out what they are being charged for the vehicle that they are considering leasing. Remember that the selling prices of leased vehicles can be negotiated just as if you were paying cash for them. If you tell me these two numbers, I can work up a sample payment on this truck for you using Nissan's base lease program and tell you what I think of the deal that you have on the table.

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mazdax605 · August 2004

Thanks Car_man,You are the man!! I have never leased before,but I am thinking about it due to the great deal Mazda is giving on them now.I have been lusting over the car for a while(actually since 01 when it was at the NY auto show as a concept).We just need to figure out if we can swing the payment.It is actually cheaper by about $30 than the payment on my wifes 00 Protege that will be paid of next year(5 year finance through mazda).Are there any other things I should look out for on leases?I asked about gap insurance.The manager said it was included in the lease.Is that true?The manager was impressed that I knew as much as I did about leases.Which I learned here at edmunds and through other sites.Thanks again.

ccc132435 · August 2004

Like Tinlittle I want to take advantage of this "special". I was at the dealership and walked away. Trade-in was not good and the "special" was different (terms). Salesman called back and agreed in the trade-in but I do not want to make any mistake, this is my first lease. I have to meet him tomorrow but I want him to fax me the terms before I put a feet back there. Here are the questions:

  Can I negotiate the "Money Factor"?,
  How can I know this in advance?
  Is thi Residual Value set arbitrary? I mean Which is the one they should be using for the Odyssey EX (No dvd, no leather, MSPR= $27,480 TMV=$24,645) 66%,65% or 68%. During the negotiation I was able to see the % on a papersheet of the financial guy, it said 68%. Is this true?
So far I left the dealership when my monthly note was around $287.00. However the financial guy insisted that the special was not as described in the "Honda Website". He said the special is $1999.99 + First Month + Taxes + Registration +License +Whatever was around $2,437 - $2,600. The special in the web site say $2,033.00 (Includes Net cap cost + Firs Month + Security Deposit). Then I calculate 1499.00 + 259 +275=2033 + taxes (9% here)=2255.00. Registration, Licenses, Notary is around 150 here. Am I missing something when he is asking $2600 which does not include security deposit as per his words?

  Running the Lease Calculator provided by www.edmunds.com it seems that the money factor to get the figure of $259 + taxes is using the Money Factor of 0.0025 with a down payment (Net Cap Cost) of 1499 and Trade-in of $1200. I consider my credit score good (mid 700's).

I want to lease for 24 Months and I do not drive more that 10,000 miles per year. ( My 3years old car has 22,000 miles) MSPR= $27,480 TMV=$24,645.

   Am I missing something? PLS Help. Thanks.

lizt · August 2004

Hi Car Man,

I spoke to Volvo Finance and asked if I could transfer my lease. They said I could, and just to send in the paper work. However, one thing they said was that if the person I leased it to defaulted on the lease I would be held responsible?!?!? Is this correct? Please help.

Thank you.

rulester · August 2004

Hi, I'm looking for a car for about 12-18 months and I've started to look into assuming a lease. It seems to me that I could then avoid a down payment. I've never even leased a new car before so I was wondering if there are there any major risks to watch out for from the buyer's perspective? Are there any fees that I should look out for

Are Leasetrader.com and swapalease reputable businesses?

I'd appreciate any help.

tinlittle · August 2004

Carman, thanks a lot for your reply. I am heading to Honda dealer...

ccc132435, since the special lease expires on 8/2/2004, I am jumping in try to answer some of your questions in case Carman does get to it in time ;-)

Unfortunately, you would HAVE to negotiate the "Mondey Factor". Altough HFS subsidize this very good lease deal. Greedy dealer won't pass it to consumer automaticly. Like Carman pointed out the MF is an unbelievable low .00089. Of course, dealer won't give you this rate unless you insist. Dealer mark up MF and take the difference as backend profit all the time. The .0025 your dealer is asking is outragous. That is why Carman is invaluable on this site, always verify the MF with Carman before you go to the dealership.

2 years ago, armed with Carman's MF and I went to a BMW shop trying to leave a car there. The "Internet" saleman even pulled out a list of MF for all different cars to prove to me the MF is higher than I think.

As for the residual value, Carman told me it is 66% for EX-L after 2 years and 24,000 miles. The one featured on "Honda website" has a residual of 68%, 19,706.40 out of 28,980 (MSRP). So I guess Honda website's information might be out of date. But the residual of the EX you are looking for is definately higher than 66%, could be 68%. For 10,000 miles instead of 12,000 per year, the residual might be 69%. Which only translate to $240, so I guess even if you don't drive that much in the past, it is worth to get 12,000 miles a year for the flexibility.

From the down payment and the monthly payment you provided, the finance guy definately is not giving you the special lease. The key is ask him what is your cap cost (the price you pay in cash for the car instead of lease), what is the MF and what is the residual value. You can't go to the dealership and come home without knowing those 3 things. If the dealer insists on playing game with you, just always be ready to walk to another one.

Hope you would get a good deal, now I have to sign off and heading to the dealership.

markt · August 2004

I have started pricing a lease for a Volvo XC70 wagon.I started working with a dealer recommended by Costco.The numbers are as follows:

MSRP with options:$39,940.00
48 month fee/15,000 miles.
477.72 per month
1,155.22 due at signing
residual $17,973.00

Do the numbers indicate a good deal though the MSRP seems a bit high($1000)? Other dealers that I have contacted tell me that they cannot match the price. Also should I be looking at 36 months/15,000 as a better deal. I'm assuming the money factor is 9%. Any other advice would be very helpful to me.

Thanks

MarKT

hcagan · August 2004

Carman,

Can you please provide me with the residuals and money factor for 2004 Accord LX (4 & V6, if different) and EX (4 )both with AT. Thanks for your help

htownpimp786 · August 2004

I had a couple of questions on a BMW 325i Lease

When they figure out a residual, do they do it off of the MSRP or off of the sale price of the car. If im getting a car thats msrp is 35,970.....and im getting the car for 30,595...which figure would they base the msrp off of. Also...what is a GOOD money factor for a lease right now with bmw on a 325i. Ive seen alot of people with 0.0024, 0.0025, 0.0026.....and ive seen one person with 0.00065? Which one is good and what should i be expecting.

Also

1. On a regular standard lease (bmw 36month lease.....325i)....do you have to pay tax on the entire car, or just on the part that your leasing.

2. Does anyone know who a BMW prepaid lease works, (the one where you just pay the entire 36 month term altogether, in one lump sum).....if anyone does, how does it work, is there a discount...and do you still have to pay a high interest rate or finance rate....or do they drop the money factor....since they already got all of their payments for all 3 years in the lump sum!

Please Help! Thanks

ccc132435 · August 2004

Could you please help me to populate the boxes in the Edmund's Lease Calculator?

Let's say that the negotiated sale's price is $24,780, Tax is 9%, Registration is $200.00 and the security deposit is $275.00. Based on the "Honda Web Siteterms" :

$259.00 per month for 24 months with a $1,499.00 capitalized cost reduction. $2,033.00 total due at lease signing (includes first months payment, security deposit, and capitalized cost reduction; total net capitalized cost and base monthly payment does not include tax, license, registration, options and the like).

To compare Apples to Apples I am assuming that the "Cash Down Payment box" should be populated with the $1,499.00. The Title, Registration & Other Costs & The Tax should be corrected with $0.0 ( The offer says that registration, title and other things are not included). What Money factor should I use?.

After this initial figure I can add everything that is required to have the "REAL" monthly note.

For the "Total due at lease signing" Is it correct to assume that I have to add the 9% tax to the $1,499.00 and the Security deposit (1499+275)*9%?

Please advise. Thanks in advance

tinlittle · August 2004

ccc132435,

I don't use Edmunds' lease calculator. But to answer the question, the .00089 MF from Carman is accurate.

If you can get the $24,780 price, and use also use the website's $19,704 (68%) residual value, with $1,499 cap reduction (down payment), and 9% sales tax you should arrive to the monthly payment of $204. And if you use Carman's residule of $19,126 (66%), the monthly payment would be $230. Note, the $1,499 does not include the first month's payment, security deposit or DMV fees).

I suspect the 66% residual Carman provided is more accurate. But it does not hurt trying to get dealer to give you the 68%.

But as Carman would always recommend, try not to put a cap reduction. The above payment would be $299 and $274 per month depending which residual value you use with no cap cost reduction (but you would pay first month payment, fees etc).

Even if you pay a cap cost reduction, tax is not charged over that amount, at lease in CA, from my experience. There is no way any state would charge tax on security deposit. Sales tax are charged on monthly payment, if you have $218 payment, the $18 is tax.

But you don't have to worry about how things are stacked up together in details. When you talk to the dealer, don't mention monthly payment. Just make sure they give you the selling price of $24,780 (which is good, but can be lower to around 24,300), and then make sure they are using the .00089 MF and also veriy the residual value to be between 66% - 68%, the higher the better. Dealer normally don't feel like talking about MF and residual in negotiations, that way the process is clear and it is harder for them to confuse you. So you might try to ask them to print out the lease contract, and then you just bring out your caculator to verify everything.

Make sure,
1. there is a line that says the capitalize cost to be the price you negotiated, (hint, less than $24,780).

2. There is MF that says .00089 or interest rate at 2.41%.

3. Make sure doc fees are below $75.

4. Make sure there are not other dealer fees except the state DMV charges, or the $4 tire disposition fee etc.

5. Make sure it is 12,000 miles per year and it is a 2 years lease, not longer.

6. Make sure your cap cost reduction is $1,499 or 0, sometimes dealer would move security deposit or other fees to cap cost reduction, watch out.

7. Make sure the residual value is as you expected too.

If you see any $ figure on the contract you don't understand, ask questions. If you see you have a higher selling price, higher MF or lower residual value as you negotiated, ask for corrections. If they won't budge, you might want to walk, it is not a crime to have dealer to print out a contract and not actually signing it.

Good luck, let us know how you did.

radtech24 · August 2004

I have a jeep G. Cherokee that I leased back in 2000. I purchased it after the lease was over (what a mistake). Now I'm trying to get tid of it, but the trading value is 5000 less than my total loan. What would you all recommend that I should do. I wouldn't mind leasing the TL as long as I get out of this loan. I don't have much of a down payment and I don't want high monthly payments. I'm basically asking for a lot. Please help me !!!!!!

CarMan@Edmunds · August 2004

Hello stevekal. I've got two answers for you, one general and one specific

. I believe that you should be able to qualify for the same lease program as a normal consumer, even if you decide to register your leased vehicle to your business.

According to the latest information that I have seen, if you were to lease a 2004 Chrysler PT Cruiser Touring through Chrysler Financial this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00110 and 42%, respectively. Using these numbers, an MSRP of $22,195 and a selling price of $17,149 (TMV - $3,000 lease cash - $1,000 Chrysler Financial bonus cash), I come up with a zero down, pre-tax monthly lease payment of right around $247.

As far as your trade in goes, I would personally try to sell it on my own if I was in your situation. I say this for two reasons. The first is dealers will not have any use for a used vehicle that is only worth $2,000. They probably will not sell it on their lot. Instead they will send it to auction where it will not exactly fetch top dollar. Consumers can get more money by selling high mileage or older vehicles on their own. Also, it is never a good idea to put money down when leasing. So even if you were to trade your current car in, I would suggest that you have the dealer cut you a check for it anyhow.

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mazdax605 · August 2004

Hey Car_man In doing research on this site i came across an article on leasing.In it there was a paragraph saying avoid susidized leases with inflated residuals.How would I know if the lease i was talking to you about(04 Mazda RX-8) is a subsidized lease with an inflated residual?I wouldn't think the residual of 65% is too high on a 2 year lease w/12k,but then again I have never done this before.Thanks again for your time.

Chris

CarMan@Edmunds · August 2004

Kelsey, I think that your interest calculations on your lease are a little off. Interest on a lease is computed in a weird way. You add the negotiated price of the car to the residual value and multiply this by the money factor. So I think that you overestimated the interest rate that you are being charged if you based your calculations upon paying interest only on your car's capitalized cost. American Honda Finance Corp.'s base lease money factor for the Acura TL should currently be around .00325 in most states. This is equivalent to an interest rate of around 7.8%. Once you sign your lease and physically take delivery of your car, there really isn't much that you can do to get out of your deal, even if they completely raked you over the coals. Having said this, I don't think that you were taken advantage of like you believe you were anyhow. Relax and enjoy your new car. If you would like, tell me this car's full MSRP and I will estimate what I believe its current 42 month lease payment should be.

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CarMan@Edmunds · August 2004

Hey eruss44. General Motors' SmartBuy program is not a lease program. It is what is known in the industry as a balloon note program. Balloon notes are very similar to leases in that they provide consumers with low monthly payments with the option to purchase their vehicle for a predetermined price at the end of their deals. However, they are calculated differently and are based upon a different set of interest rates than manufacturers' lease programs. I do not personally keep tabs on what manufacturers' balloon programs are like because they are not nearly as popular as lease programs are. So unfortunately, I can not give you any feedback on what a SmartBuy would be like on the Chevrolet Trailblazer at this time. Sorry that I could not be of more help.

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ubee · August 2004

thanks car-man, pathfinder msrp-$29,770,the quote I recieved to buy the truck outright was $23,900. The question I have is which would be the better buy lease or purchase? Keep in mind this suv is a great vehicle (I own an 01 path) nissan is redesigning the 05 pathfinder w/bigger seating, engine etc. So I'm assuming they are trying to clear all the inventory out.

CarMan@Edmunds · August 2004

You're very welcome, mazdax605. The RX-8 is definitely a nice car and it looks a whole lot nicer now that Mazda is providing quite a bit of lease support on it

. Many banks, especially a number of manufacturers' captive finance companies, do indeed include gap insurance in their lease contracts. I am glad to hear that you have found this discussion so educational. Good luck in your negotiations and make sure to let us all know how everything turns out.

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maxim49 · August 2004

Well, I finally got my car this past friday and this is the deal I got. I got an Ivory Pearl 2004 G35c fully loaded with Nav and everything, with a sticker price of $38,100, and a selling price of $34800.
39 Month Lease
15K miles/yr
$1,325 due at signing, which include Bank Fee, Registration, Doc, and first month payment.
Monthly Payment - $475 including tax.

Car_Man - Thanks a lot for your help. Couldn't have done it without you!!

Oh and by the way - the car is amazing, I can't stop looking at it, and when I stop looking at it, I can't stop driving it!

Thanks again!

kjw26 · August 2004

car_man
the negotiated price for the TL was $30,661. put $1686 down. sticker price MSRP was $32,650. thanks, kelsey

ponytrekker · August 2004

you should buy. From what I've heard, Pathfinders are generally very reliable vehicles that wear well over the long haul.

kyfdx · August 2004

I don't know where that article came from, but if you want a LOW lease payment, you WANT a subsidized lease with a HIGH residual. The payment is based on three items. The selling price of the car, the residual, and the money factor. Low selling price is good, low MF is good, HIGH residual is good.

The only time this may not be the case, is if you plan on buying the car when the lease is up.

On a $30K RX-8, every 1% increase in residual saves you $7.40/month. HIGHER residuals are better!

regards,
kyfdx

qascent · August 2004

I am trying to finalize the details for leasing a BMW x3 with premium, auto, privacy glss, leather, and heated seats. The MSRP is 38845. The selling price is 36845. The sales tax is 6%. This is what the dealer gave me. No money down, 39months, 15k/year, $1700 due at signing (first month payment, security dep, licsand reg, and aquisition fee). The monthly payment with tax work out to be $435. Is this a good deal. I need to let the guy know asap and since this is my first time leasing I have not idea if all the numbers make sense. All inputs appreciated.

g17 · August 2004

Hey car_man...quick request for you...

I'm looking at a 2004 Mercedes CLK 320; I heard they have good residuals, and therefore make an OK lease.

Details:

MSRP: 49,290
Price: 46,200

Options:
Appearance pkg
Htd Seats
CD CHanger
Sunroof pkg

can you give me the residuals and money factor for 36 or 39 months with 15k mi/yr assume $0 down except the necessary payments. What would be a ballpark monthly payment.

Thanks in advance as always...

al330ci · August 2004

Carman,

I just leased an 04 G35 Sedan and received a great deal thanks to the information you provided for the Infiniti July program. Great car and great price. Thanks again.

CarMan@Edmunds · August 2004

Hi ccc132435. Vehicles' lease money factors can be negotiated in that one can make sure that their dealer is not marking up a bank's base money factor on them. However, dealers really can not offer a lower lease money factor than the one that a bank is offering at a given time. Through August 2nd, American Honda Finance Corp.'s base lease money factor for a 2 year lease of a 2004 Odyssey is .00089 in every state but New York. The only reason why this would be higher is if you are in NY or if you want your van's security deposit waived. Residual values are published by banks and individual dealers do not have any authority to change them. AHFC's corresponding residual value for a 2 year, 15,000 miles per lease of an '04 Odyssey without navigation or the rear entertainment system would be 67%. The residual for an otherwise identical lease with only 12,000 miles per year would increase to 68%.

You definitely should not make any sort of down payment when leasing. Consumers can and always lease any vehicle without making any sort of capitalized cost reduction. This includes the money that you get for your current vehicle if you decide to trade it in. Just have the dealer cut you a check for your trade if you would rather not sell it on your own. The only things that you should pay at lease signing are your van's first month's payment, a security deposit of that payment rounded up to the nearest $50 increment, AHFC's lease acquisition fee of $595, and any required taxes or state fees.

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CarMan@Edmunds · August 2004

Unfortunately, lizt, many banks do indeed hold the original lessee of a transferred deal liable if the person who it was transferred to defaults. This doesn't seem fair, but given the fact that banks do not have to let you transfer your lease at all if they don't want to, there really is not anything that can be done about it.

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CarMan@Edmunds · August 2004

There is nothing wrong with assuming someone's lease, rulester, as long as you are sure that it is a good deal and that it is not close to exceeding its mileage limit. Both of the Web sites that you have mentioned seem like reputable businesses and I have never heard any complaints about them, but I have never personally done business with them either.

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CarMan@Edmunds · August 2004

Hi MarKT. When negotiating a lease, one of the most important numbers to find out is your vehicle's capitalized cost. This number is essentially the price that you are paying for the car or truck that you want. Without it, it is difficult to determine what sort of selling price you are paying. Remember that the selling prices of leased vehicles can be negotiated, just as if you were paying cash. Find out what this vehicle's cap cost is and determine if you are receiving enough of a discount. Once you have this number, feel free to stop back and post if for me and I would be more than happy to work up a sample lease payment on this wagon for you so that you have an idea of what you should be paying to lease it.

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CarMan@Edmunds · August 2004

I would be more than happy to help you out, hcagan, but you did not tell me how long you want to lease this car for and how many miles per year you need to be able to drive it. Also, Honda's July lease program on the 2004 Accord is only scheduled to run through August 2nd. If you need to know what its new August program is like, please feel free to post a reminder (with the aforementioned info) in this discussion for me towards the end of the week and I will be more than happy to fill you in on what I have been able to find out.

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CarMan@Edmunds · August 2004

Greetings htownpimp786. Vehicles' residual values are always based upon a percentage of their full MSRPs plus the MSRPs of any options on the vehicle that can be residualized. Through the end of August, BMW Financial Services' base lease money factor for the 2004 325i is .00220 for leases of up to 42 months in length. The only reason why you would pay more than this is if your dealer is marking your factor up to add additional back-end profit to your deal, or if you are having your vehicle's security deposit or acquisition fee waived. Different states calculate taxes on leased vehicles differently, so I can not tell you what the taxes would be like if you were to lease this car. You may be able to find out how taxes are calculated on leases in your state by calling or visiting the Web site for your Department of Motor Vehicles.

Consumers are allowed to pre-pay BMW Financial Services leases of up to 36 months in length. You do not get out of paying intetrest altogether by doing so, but you will receive a .00080 discount in your car or truck's base money factor.

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CarMan@Edmunds · August 2004

Unfortunately, radtech24, the $5,000 that you are currently upside down on your Jeep Grand Cherokee is not going to magically disappear if you lease a new vehicle. If you want out of your Jeep, you are going to have to pay this money out of your own pocket, or try to roll as much of it as you can into your next loan or lease - which is never a good idea. Your least expensive option is to continue driving your Jeep until its real world value is closer to what you owe on it.

Car_man
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CarMan@Edmunds · August 2004

Hey Chris. It's strange that you read an article on this site that stated that high residual values are a bad thing, because that simply is not the case. High residuals are good when leasing. The higher a vehicle's residual values are, the smaller the depreciation portion of your monthly lease payment will be, and the less you will have to pay each month. The only time that a high residual value would be a problem would be if you wanted to purchase your vehicle at the end of your lease.

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CarMan@Edmunds · August 2004

Thanks for the additional information, ubee. You're right Nissan is providing some fairly high incentives on the 2004 Pathfinder in an effort to help its dealers unload their leftover models before the redesigned, U.S.-built 2005 model hits lots. You were quoted a very attractive selling price on this truck. Using the prices that you provided in your post, I come up with a 3 year, 12,000 miles per zero down, pre-tax monthly lease payment of around $321 on a 2004 Nissan Pathfinder SE 4WD. So the $299 per month that you were quoted looks like a very good deal to me.

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jiii267 · August 2004

Car Man-

It seems like the lease offer in VW.com site seems reasonable for 2004 V6 Touareg. Here are the specifics:

$399/month
42-month lease
$3,874.00 due at signing
12,000 miles/yr
Purchase option at lease end: $17,599

If I plug these #s into the edmunds.com calculator, I calculate monthly lease payments around $520. Am I doing something wrong or is this a great lease offer?

Thanks,
JP

CarMan@Edmunds · August 2004

Congratulations on your new car, maxim49. I agree the G35 Coupe is a very good looking vehicle. Thanks for taking the time to come back and let us all know how everything turned out. Enjoy!

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jacksonq · August 2004

Carman,

NMAC has a dark spot on my credit report because it says that I didn't pay my disposition fee at the end of my lease 4 years ago. Can you give me some good news please? Why didn't anyone mention this when I returned the car?

My current lease is up next month, and a dealer who ran my credit says that I might have a problem getting a new lease because of Nissan.

Thanks!

jaa37 · August 2004

Hey Car_man. Thanks a lot for your help. I'm looking for a three-year, standard 36,000-mile lease on a 2004 XC70. Any advice you can give me regarding the money factor and residual value I can expect would be great. A couple of additional questions: is the money factor offered non-negotiable, or is there usually some wiggle room? Is the same true for the residual value? Also, if you negotiate a lower selling price for the car, does that affect the residual value, or is that constant (e.g., if the car is worth 56 percent after three years based on the MSRP, is it also 56 percent based on the negotiated price)?

Thanks a lot.

jaa37 · August 2004

I don't mind paying some money down (I'll just factor it into the total payments), but I'm wonddering if that affects the money factor at all. It seems to me that the dealer stands to profit more, the less money you put down, so they can charge interest.
Anyway, thanks for your help...

kdiamond · August 2004

I am a bit overwhelmed by the numbers, so I thought I would ask here if this sounds like a good deal:

I hope to lease an Odyssey EX or EX RES.
I understand from Carman that I should put no down payment whatsoever.

I have the following quote -

EX-RES
MSRP $28230
Selling Px $26230

with $500 down payment (before I knew from Carman that I shouldn't), the monthly payment would be $369 a month.
No security deposit, and taxes here are 7.66%

Another dealer gave me a selling price of $500 less, but they have a security deposit.

My head is swimming, with all these numbers.

Thnaks for your insight.

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