Lease Questions - Ask Here

CarMan@Edmunds · August 2004

Hi JoeSM. I'm just takin' it easy this weekend. Thanks. I would be more than happy to give you an idea of what the lease programs are like on these cars right now. If you were to lease a 2004 Honda Accord Sedan EX V6 through American Honda Finance Corp. this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00143 and 54%, respectively in every state but New York. 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 56%. When negotiating your deal on this car, keep in mind that Honda is providing $500 dealer cash on '04 Accord Sedans right now.

If you were to lease a 2004 Mercedes-Benz C230 Sedan through Mercedes-Benz Credit Corp. this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be around .00310 and 53%. The numbers for an otherwise identical lease of an '04 C240 Sedans should be around .00310 and 52%. If you were to lease either of these cars with only 12,000 miles per year, their residual values would be 2% higher. When negotiating your leases on these cars, keep in mind that Mercedes is providing $2,250 dealer cash on the '04 C230 Sedan and $3,000 on the C240 Sedan that I believe may be used on MBCC leases. All of the aforementioned money factors assume that you qualify for these banks' top credit tiers.

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cuco · August 2004

Car_man,

   Thanks for the post.

   Well, I did talk to two dealers this weekend. They indeed offered (Invoice - $3500) for the 3 liter Z4 with 58% residual on a 36-month, 10000 mile / year lease. But, they took back the offer for 2.3% APR (about 0.00095 money factor). They wanted a money factor twice as large, or 0.0019. They told me that the purchase APR is 1.9%, but not the lease rate. It may have had something to do with the increase in interest rates by the Fed not too long ago. One of the things that I don't understand is why would the lease money factor and associated APR be so different from the rate you can get for the same car when purchasing it. If the rates come down and I still haven't leased another car, I may go back to the Z4 deal. But, most likely, something else may work out better in the next few weeks.

   My wife would love to lease the 350Z, but right now, with all the tire, transmission and paint problems that Nissan is having with that car, I would not consider it.

   Do you know of any other current good deals on other roadsters. My wife is willing to good for a good deal.

keeferb · August 2004

Hi,

We're trying to estimate lease payments for a 2004 Chevy Trailblazer. Thanks to car_man, we have the residual % and lease factor. However, to get a more accurate estimate we also need to know what, if any, other lease costs GMAC charges. Does anyone know if there is an aquistion fee or security deposit for GMAC leases?

Thanks in advance!

viggie · August 2004

Thanks car man,

Everything I know I learned it from this site. We are first time leasor and did not know anything. We are really thinking about leasing a 2005 so we can have our choice of color etc. Having said so, how much harder it will be to negociate something similar to 2004 deal (I know you do not read minds or anything). I also realized that they really want to get rid of the 2004 we are just not to fond of the color (black/black) it also has 200 miles on it.

Thanks for your suggestions

wibble · August 2004

" Do you know of any other current good deals on other roadsters. My wife is willing to good for a good deal."

Looking through some of the postings here, the Mazda RX-8 looks like it has a good lease on it at the moment.

cuco · August 2004

wibble,

Thanks for the info. I just checked into the RX8, the money factor is worse than that for the Z4.

This is going to be a car for my wife. She has had a Nissan 240SX for 14 years now. She loves her car. It's hard to get her to give it up, but we're spending more and more on fixing it.

Since the Z4 looks like it's out of the picture, I'm now researching the Minicooper. She has mentioned in the past that she likes the cooper. I'll look into it.

Car_man, what's the story on the Minicooper?

amc731 · August 2004

Thank you -- I think:) -- for your reply. That's exactly what I was afraid of. Our lease is thru Highland Finance Company and even though we're well under our miles and the car still looks new (ok, from a bit of a distance) it is still a 5 year old mini-van that's been to the beach and back a couple of times with 3 kids and a black lab inside. I'm scrubbing and polishing away but still expecting them to try to get me for something!

Thanks again!

amc731 · August 2004

Thanks! I'll check that out. As I just posted, unfortunately, it seems, we're not thru GMAC but at least it will give me some additional info.

This is an extremely informative forum....thanks again!

amc731 · August 2004

Excellent suggestions....I'll do that.

Sorry that I'm just catching up on all responses now. We were taking the van for one last trip to the beach and now I'll spend this week trying to get the sand out of it:)

tracytemp · August 2004

I am very new to this and hope to get some ideas here. We are eligible for the GM employee Family First program. I will find out more tomorrow about GMS price. We live in Boston and are moving to Louisville Ky within the month. We are trying to decide which is best - I own out right a '99 Infinity I30 Ltd. that I can sell on my own (here or there). We want an Envoy XUV. My first question is -is it best to get it in KY where we will be living, or try to get it here or go to another state where there might be more inventory and it could be less expensive?
Please help I need to get a better handle on this to begin to make a decision soon...did I say soon?
Thanks!
Tracy

htownpimp786 · August 2004

Hey hows everyone doing.

I am planning on getting the Rx-8 automatic with the grand touring package......theyre selling it to me at invoice.

MSRP 30,400
Invoice 27,837
Selling Price 27,837

Since im going to lease it im also going to get atleast 3500 in incentives (on the 24 month lease), and about 500 of the 750 dealer cash as well.

I am to get this car at the invoice price, and get 4000 in incentives on a 24 month/12k miles per year lease, and im putting 1000 down (aquistion fee, security deposit, and whatever the first months payment is) what will my payment be?

What is the residual and i heard the money factor is high, yet set off by the incentives.

Also...what type of credit does mazda financial require, are they strict, i dont got perfect credit, but not bad either....low 600ish! Let me know please thanks

bluebeebar · August 2004

I'm considering leasing for the first time. What sort of leases are currently being offered on the Mazda Rx-8? I'm interested in 36 mo./12K miles yr.

houstonbeemer · August 2004

I realize from reading the board that you can't help too much with respect to leasing used cars, but I hope you might be to answer this one question.

I'm looking to lease a used (probably '01) BMW X5. Is there any reason that a money factor for a used one be any higher than for a used one (or perhaps lower)? What is the best money factor I can expect right now?

Thanks.

mazdax605 · August 2004

Hey htown and bluebee,

I think Car_Man or maybe the other host's can tell you better,but I did just lease an RX-8 through mazda(with help from these guys).I did the same 2 year you are speaking of.I got $4250 off in lease incentives by financing through Mazda on a 2 year 12k mile a year lease.The money factor is high like you have mentioned.Mine was .00305(or 7.4%) with my credit score nearly perfect(700's).I got a deal of invoice on a base model with the 6 speed minus the $4250.The residuals are 65% on a 2 year 12k a year lease for the 6 speed equipped models and I believe 62-63% on the automatics for the same term.I have heard also that the money factor has gone up a bit.Mazda has a rating sytem as far as credit goes.Their best credit puts you in their 0 catagory which will give you the best Money factor.Good luck in your dealings.The car is a blast.I am not sure I would get the auto though they lack too much power for me.But to each his own.I would really try to get as close to invoice as you can,because they are really pushing these cars now.I think they made too many 04's.

CarMan@Edmunds · August 2004

Hey Copper. The lease program for the 2004 Volvo XC90 is exactly the same in August as it was in July. However, Audi's lease program for the A6 2.7T S-Line is different in many areas of the country. I would be happy to give you an idea of what its new August programs is like if you tell me what state you are in, how long you want to lease it for, and how many miles per year you need to be able to drive it.

Car_man
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CarMan@Edmunds · August 2004

Larrym, a number of posts from August 12th were lost in the transition to new software. Sorry for any inconvenience that his may have caused. You can find out more informaiton on this subject by visiting the following discussion: "Our Software! Your Questions Answered...".

As far as the Infiniti G35 Coupe lease goes, you definitely need to find out this car's exact selling price before finalizing any deal on one. Without this number, you don't know how much money the dealer that you are working with is charging you for this car. Here is the sample lease payment that you asked for, using the estimated numbers that you provided in your post. According to my calculations, if you were to lease a 2004 Infiniti G35 Coupe (MSRP: $36,160 / selling price: $34,000) through Infiniti Financial Services this month for 4 years with 12,000 miles per, its zero down, pre-tax monthly lease payment should be right around $431.

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CarMan@Edmunds · August 2004

Hi sandy. I would be more than happy to try to give you an idea of what this vehicle's current lease program is like. However, in order for me to do so, I need you to tell me how long you plan on leasing it for, how many miles per year you need to be able to drive it, and what model year Pacifica you want - a 2004 or a 2005.

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CarMan@Edmunds · August 2004

Congratulations on your new van, homer13. It is difficult for me to tell exactly how good a selling price you got on this van without knowing its dealer invoice price, but it appears to me as though you leased it for around $700 over invoice. When one takes the $500 dealer cash that Honda has on this van right now into account, your deal is more like $1,200 over invoice. If this is indeed the case, while not a terrible selling price, I suspect that you could have gotten this van for a little less right now. The lease payment that you were given looks about right to me. I just worked up a sample 2 year, 12,000 miles per, $2,000 down payment on this van and came up with $228 per month pre-tax. Even though I usually discourage consumers against making down payments on leases, overall I would say that you did fine. Enjoy your new van.

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CarMan@Edmunds · August 2004

Hello again mazdax605. You certainly are a Mazda fan. I would be more than happy to help you out. According to the latest information that I have seen, if you were to lease a 2004 Mazda6 Sport Wagon through its captive finance company for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00104 and 47%. This wagon's 12,000 miles per year residual value for this term would increase to 49%. I am glad to hear that you are enjoying your RX-8.

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CarMan@Edmunds · August 2004

We certainly have lots of repeat customers today. That's good. Keep coming back. The more the merrier. The Mazda3 is selling very well right now, mkfx. As a result, Mazda is not currently providing any sort of lease support on it. There is a good chance that you would be able to lease one through an independent bank for less than it would cost to lease one through Mazda's captive finance company right now. This car's exact money factor will vary depending upon what your credit is like. If you qualify for Mazda Credit's top tier, your 36 month base money factor for it should be around .00290. The corresponding 15,000 miles per year residual value for this term is 39%. I do not keep tabs on manufacturers' balloon note programs, so I can't help you out with the SmartBuy question that you had. Sorry.

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CarMan@Edmunds · August 2004

Hi sandyl. I don't think that there will be any dramatic changes in the automotive market between now and December. The main difference will be that in December you will be leasing a 2005 model rather than the 2004 model that you would probably be leasing if you were in the market right now. There really is not any advantage to you getting out of your current lease before its scheduled termination date. Your least expensive option would be to continue driving your Camry until your lease's scheduled end and then purchase or lease a new vehicle.

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zimp4us · August 2004

I have read on other posts that the 2005 price and specs for the BMW 330cic are available. What are they and where can I read about the specs. Finally, what are reasonable targets for selling price, money factor and residual value on a '05 330cic with performance package, metallic paint and heated seats to be delivered in October?

CarMan@Edmunds · August 2004

Cuco, vehicles' residual values are set in stone and banks will not negotiate them.

Also, if you really want to lease a Lexus SC 430, it is definitely in your best interest to do so before the end of August. Lexus is running a special lease on this car right now that I highly doubt will continue into September. Of course, it is difficult to predict what automakers will do with their incentives with 100% accuracy though.

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CarMan@Edmunds · August 2004

Hi cabaiste. The lease programs for these trucks vary, depending upon what trim levels you are looking at. It would be a big help if you would tell me exactly which Durango and Freestar you are interested in, i.e a 2004 Dodge Durango 2WD SLT or a Durango 4WD Limited, etc... Once I have this additional info, I will be able to help you out.

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CarMan@Edmunds · August 2004

Greetings Bhaskar. I would be more than happy to give you my opinion on this lease, but it would be a big help if you could provide me with its full MSRP and selling price. It is important for you as a consumer to know the selling price of the vehicle that you are leasing anyhow. The selling prices of leased vehicles can and should be negotiated, just as if you were paying cash. Without knowing this number, it is difficult to tell what sort of deal you are getting.

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CarMan@Edmunds · August 2004

Hey mzinzi. According to the latest information that I have seen, if you were to lease a 2005 Subaru Legacy 2.5 GT Sedan through its captive finance company this month for 39 months with 12,000 miles per year, its base lease money factor and residual value should be around .00100 and 50%, respectively.

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CarMan@Edmunds · August 2004

Here you go, hartt. If you were to lease a 2004 Toyota 4Runner SR5 4WD through Toyota Financial Services this month for 3 years with 36,000 miles per, its unsupported base lease money factor and residual value should be .00215 and 62%, respectively. If you were to lease a 2004 Dodge Durango SLT 4WD through Chrysler Financial this month for 3 years with 36,000 miles per, its base lease money factor and residual value should be .00141 and 51%, respectively. When negotiating your lease on the '04 Durango, keep in mind that DaimlerChrysler is providing $4,000 lease cash plus $1,000 Chrysler Financial Bonus Cash for a total of $5,000 in cash incentives that will help you to negotiate an attractive capitalized cost.

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CarMan@Edmunds · August 2004

You're very welcome, sunpro2003. Yep, we lost a few posts when we tried to upgrade the Town Hall software. Congratulations on your new truck!

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CarMan@Edmunds · August 2004

You're welcome, cuco. BMW has not changed its lease program on the '04 Z4 since the beginning of July. Its base factor on the 2004 Z4 3.0 is currently .00190, which is equivalent to an interest rate of right around slightly over 4.5%. This is a reasonable interest rate. It's not lower because BMW is already providing tons of dealer cash support on this model. The Z4 is one of the better deals out there as far as roadsters go. Another car you may want to consider is the Audi TT. There is a decent amount of support on it in many parts of the country right now.

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CarMan@Edmunds · August 2004

Hey keeferb. Like most banks, GMAC charges both a security deposit and an acquisition fee on the vehicles that it leases. Your security deposit should be equivalent to your vehicle's monthly payment rounded up to the nearest $25 increment and GMAC's base lease acquisition fee is $595 in most states.

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CarMan@Edmunds · August 2004

No problem, viggie. Dealers will probably be more willing to provide substantial discounts on 2004 models at this point, to help move the leftover vehicles off of their lots. Having said this, I don't think that the Cayenne is setting the world on fire, sales-wise, so you should still be able to negotiate a reasonable deal on a 2005 model.

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CarMan@Edmunds · August 2004

Cuco, MINIs have been selling very well ever since their introduction. So well, that BMW has not had to provide any sort of support on them at all. This means that you will not be able to take advantage of any special money factors or dealer cash if you were to lease one at this time.

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CarMan@Edmunds · August 2004

You're welcome, I think

, amc731. I am not familiar with the bank that you are leasing your current vehicle through, so I can't give you an feedback on how strict it is in evaluating leased vehicles.

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CarMan@Edmunds · August 2004

Hello Tracy. General Motors is providing GMAC bonus cash on many of its vehicles this month. This cash can be used to reduce the capitalized cost of models that are being leased through GMAC. The exact amount of cash that is available, varies by model and by region. Most of Kentucky falls in General Motors' Southeast region. It is providing $1,500 GMAC bonus cash on the 2004 GMC Envoy in that part of the country. In the Northeast, which Boston is in, it is providing $750 GMAC lease cash plus $1,000 GMAC bonus cash for a total of $1,750. There is only a $250 difference in the total lease cash in your old and new homes. So incentives-wise, it doesn't make much of a difference where you lease your new truck.

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mazdax605 · August 2004

Thanks again Car_Man,I am indeed a loyal Mazda fan.I was quoted a price from the same dealer I got my RX-8 from this weekend which showed those smae numbers you gave me,but they told me there was no rebates or incentives applicable to a lease.I know they are offering $1500 back,but is it true they don't give that on a lease?Thanks again.Maybe I should get a job with Mazda?Or here on edmunds?I am on here so much.

CarMan@Edmunds · August 2004

Hey htownpimp786. According to my calculations, if you were to lease a 2004 Mazda RX-8 (MSRP: $30,400 / selling price: $27,837 - $4,000 = $23,837) with a manual transmission through its captive finance company this month for 2 years with 12,000 miles per, your zero down, pre-tax monthly lease payment should be around $308. To arrive at this payment, I used a money factor of .00315 and a residual value of 65%. This money factor assumes that you qualify for Mazda's top credit tier. Unfortunately, with a credit score in the low 600s, you probably do not.

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CarMan@Edmunds · August 2004

Hi bluebeebar. I always advice those who are new to the world of leasing to check out the following article that is available here at Edmunds.com: 10 Steps to Leasing a New Car. It contains a lot of helpful information. As far as the Mazda RX-8 goes, if you were to lease one right now, it is in your best interest to do so for 2 years because that is where Mazda is providing the most support. 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 if you want an automatic or a manual transmission, what this car's full MSRP is, and what its selling price is.

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sandyl · August 2004

2004, 36 months, I can go either 10K or 12K

What is interesting is that our local chrysler dealer is offering their own plan that is a purchase that looks almost like a lease. You buy
the car for lets say 20K, they put a residual value on it for 2 years later. you only pay
the difference at the time. then 2 year later you
either buy the car out for 10K or you can give it back if you want. I dont have the details. this does seem like a lease, but I think the difference is that you own the car, not the leasing co? I did not have time to ask more questions about this.

thanks again!
sandy (who is trying to be patient until December but finding it real hard to do so)

Kirstie_H · August 2004

I haven't heard of this, so it may be something that is unique to your dealership. In fact, I just leased a Pacifica AWD this weekend (36 mo/15K miles). We were open to all of the purchasing options - buying or leasing - and weren't offered this particular purchase plan. It does sound like a lease, so I would check the contract very carefully!

kirstie_h
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staceman · August 2004

My wife is considering the new Chrysler 300M Limited, but I worry about the residual value as we are looking to lease. I have also mentioned the '04 vette as it would have a higher residual and she could have for 2 or 3 years and then go luxury. We are located in Texas... what are your thoughts on these 2 vehicles.

copper · August 2004

Hi Carman,

About the Audi 2.7T s-line:
I'm in NJ.
36/12K and 36/15K

Thanks!
Copper

kyfdx · August 2004

It sounds like a balloon payment plan... Like GMAC Smartbuy... It is similar to a lease, but different.. as your name goes on the title. You see this a lot in the states that have vicarious liability laws.. Also, used to overcome objections to leasing (whaddaya mean, my name's not on the title?!).

regards,
kyfdx

audiman2 · August 2004

I have leased an Audi which is expiring in two months - they have offered me a purchase option of $21,222. the mileage is 52,000 and I had purchased 48,750 miles when I first leased this.

Is it a good idea to buy this?
Is this a good price to purchase the vehicle?
how much better of a price could I negotiate?

Kirstie_H · August 2004

Hi audiman - in order for car_man to help you out, you'll want to provide as many details about the car as possible, ESPECIALLY the model year! In the mean time, you should check out our Used Car Appraiser to get a general idea of that car's value in your area, and then come back to see what advice car_man can offer you.

kirstie_h
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garevels · August 2004

Carman interested in a lease payment on a 04 330Ci. MSRP is 45,495 negotiated price is 42,830. Looking at a 3yr 15K lease. Thanks

cuco · August 2004

Thanks for all the help Car_man.

  I went ahead and bought the 2004 Z4.

  It's a 36-month closed-end, 10000 miles per year lease.

   58% residual on MSRP $44920

   Capitalization of $37850 (About invoice - $3500)

   MF: 0.00190

cabaiste · August 2004

Carman
Looking for the numbers on a 2004 Durango 4WD SLT for 24/36 at 12,000 miles and a 2004 Freestar S for 24/36 at 12,000 miles.
Thanks much

jaa37 · August 2004

Carman,

Thanks for all your help. I'm going to sign a deal Friday. Does this look like a good deal, or could I have done better?

XC70 w/premium + touring packages, booster seats, xenia wheels
Cap cost: $36,700 (including $1,000 Volvo loyalty rebate)
Money factor: .00045
Residual: 55%
$695 bank fee down
Monthly payment before taxes: $436.

Whaddya think?

gccambridge · August 2004

Hi - New to the leasing game so I am trying to get a handle on the "value" of a mileage allowance. I understand most everything else. I am comparing two lease deals for an Infiniti G35 Coupe, 6 spd, premium package. The lease is 48 months, $1,000 down plus fees. The first lease is for 10k miles (dealer 1) and the second lease is for 12k miles per year (dealer 2). The second lease is a total of $806 (lifetime of lease) more expensive than the lease offer from dealer 1. Dealer 2 has said they have no more room, and can not match the lease offer from dealer 1 and just "throw in" the extra 2,000 miles a year. Dealer 1 I've already worked on to their bottom, bottom line price (i.e. i'm walking out the door price). I feel that I will likely, but not 100% sure, need the extra 2k miles a year - heck, its a G35 so I will want to drive it!! At 10 cents per mile for the extra mileage allowance, I figure deal 2 will work better for me. I just wanted to run it by the leasing experts for their opinion!

daltongang · August 2004

We are looking at a Yukon XL. We currently owe 19k on our 2003 Yukon. What should we do to get a lease payment under $500/mth?

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