Did you recently take on (or consider) a loan of 84 months or longer on a car purchase?
A reporter would like to speak with you about your experience; please reach out to PR@Edmunds.com by 7/22 for details.
Options

Lease Questions - Ask Here

13567…468

Comments

  • projectzx3projectzx3 Member Posts: 256
    i agree a 60 month lease makes no sense to me. when i mentioned 60 months i meant traditional financing. but a 48 month lease can make sense. first of all i can minimize my upfront cash outlay and keep my money in my investments. second, if a person finances car 'x' for five years instead of leasing for 48 months, the monthly payment will be higher ( in my case approx 100/mo) for the 48 months and the additional 12. i do all city driving and avg 15k miles/yr ... city driving is tough on a car. trust me i know what i am doing. but carman knows more!!! thats why i ask :)...carman please lets not get lost here. answer my questions about my deal when you get a chance. i know you are busy.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi again projectzx3. Given the limited dealer margin on the VW Golf, I think that you got a fair price on the car that you ordered. Eight weeks is a very long time in the world of leasing. The monthly lease payments on a particular vehicle can vary tremendously over this long a time. So it is very difficult for me to say how much this car will cost you to lease when it finally arrives at the dealership. Currently, there really is not any advantage to leasing this car because VW is not offering special lease money factors on any 2001 models yet. Down the road, however, they may introduce some support on this car that makes leasing one worth your while.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi Bryan. I just saw the Chrysler Financial lease program not that long ago. Over the past several years, DaimlerChrysler Corp. has experienced tremendous financial losses because of CFC's leasing business. As a result, they really have done away with lease money factor and residual value support on the majority of their vehicles. In some instances, they have replaced these supported money factors and residuals with lease cash. Unfortunately, the Jeep Wrangler is not one of these cases. Traditionally, Chrysler has not really had to provide much support on the Wrangler. If you lease one through Chrysler Financial right now, you would have to pay their standard lease money factors of .00340 for 36 & 48 month terms. However, CFC does have a slightly lower 39 month factor of .00325 available right now. This is probably the best term to lease through at this point. The 15,000 mi/yr 36, 39, & 48 month residual values for this truck are 54%, 53%, & 48% respectively. If you want to purchase additional mileage at lease inception you can do so through Chrysler Financial for $0.12 per mile.

    Given the fact that they have tremendous regional variation, Toyota's lease programs are a little more difficult to keep track of. I am sorry to say that I am not aware of any special lease promotions on the Pre-Runner Crew Cab at this time, but it is possible that there may be one in your neck of the woods.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • projectzx3projectzx3 Member Posts: 256
    the old freight bump move:

    i got taken. i thought i just added in the destination twice. well my salesperson did it too. i will be calling my sales rep tomorrow. i was just too embarrased to let everyone know. this is a fairly common .... and i do mean 'common' move many dealers pull according to another thread. i guess im stuck if they hold to their guns, as i gave them a 500 deposit. they did a nice job of hiding the actual purchase price until the last minute... and yes i signed the sales order. very misleading practice i must say ... unethical. a mistake... perhaps ... i am making the phone call tomorrow. until then ... oh if i get stuck paying sticker ... im just going to finance thru my credit union ... ive had enough :)
  • vkjvkj Member Posts: 67
    hey car man,

    i have read that certain fees can sometimes be eliminated from leases. I am interested in leasing an Audi 2.7t for 39 months w/12k per year and I am trying to determine my leasing options. The total list on the car is $47k and I am getting the car for $1200 over invoice($42.6k). I have perfect credit.
  • bill124bill124 Member Posts: 246
    Just got promotion and am in the 11th month of of a 4 year mitsubishi lease. I'd like to upgrade, possibly to a different brand. What should I do if I want to terminate early in order to minimize my costs?
  • zscott1zscott1 Member Posts: 19
    I am looking for a place beside the dealer to find residual and Money factors on a 2001 Audi A4 1.8T w/ Quattro, cold package, sport package, premium package, manual transmission, xenon, and ESP. I have dealt with a dealer and he would quote me different MF and residuals on the same car on the same day. I thought these to factors stayed the same. By the way i am in the midwest and have good credit, in case that makes a difference.
    Thanks in advance
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Zscott1, I should be able to give you a good idea of what the current Audi Financial Services lease program is like on this car. However, I haven't seen their newest program yet. Please feel free to check back with me later on this week or early next week and I should have the information that you're looking for.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • zscott1zscott1 Member Posts: 19
    Thank you car man.
  • vkjvkj Member Posts: 67
    hey car man,

    When you look up the rates for zscott can you please address my situation, as well. I have read that certain fees (acquisition, disposition and bank)can sometimes be eliminated from leases. I am interested in leasing an Audi 2.7t for 39 months w/12k per year and I am trying to determine my leasing options. The total list on the car is $45.7k and I am getting the car for $1200 over invoice($42K). Destination of $550 is not included in the above. I have perfect credit.

    Thanks

    vkj
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Zscott1, you are correct that a bank's lease money factors normally will be fairly stable on a short term basis. Audi Financial Services' lease program typically runs for about 30 days or so before it is revised. The current program is good from November 1st through December 5th. Right now, the lease money factor for a 2001 Audi A4 1.8t quattro is .00280 for up to 39 month terms. Furthermore, the 15,000 mi/yr residual values for this car are 62% for 30 months, 58% for 36 months, and 57% for 39 months. If you would like the residual values for any other term or mileage allowance, please let me know.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Vkj, individual dealerships really have no authority to waive a bank's security deposit, acquisition fee, or disposition fee on their own. What they can do is lower the price of the vehicle that you are interested by the amount of the acquisition fee to make it look as though there isn't one, or roll it into the vehicle's capitalized cost. Either way, it still exists. From time to time, lending institutions (usually only manufacturers' captive finance companies) will run leases without any money due at lease signing. These "sign and drive" leases will have waived acquisition fees and security deposits, and sometimes will also have waived first month's payments. Saturn is running such a program on certain cars right now. Still, these programs are the exception rather than the rule.

    It really wasn't clear in your post what other questions you would like me to answer. If you think of any, please feel free to ask. Thanks.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • carsavvycarsavvy Member Posts: 4
    Car_Man, do you have any thoughts on the pros/cons of leasing a used vehicle (1 to 3 years old). I am considering a new 2000.5 Passat (when it comes out) vs a used Audi A4 1.8 or possibly a used BMW 323i. How much difference would the money factors be for new vs used vehicles and does the slower depreciation of a couple year old car affect the payments that much? I am thinking of a 36 month lease. Thanks for your input!
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi Carsavvy. Leasing new vehicles can be a very good deal because many manufacturers provide lease support, usually either in the form of lease cash or supported lease money factors, that allows consumers to lease the vehicle at a very attractive monthly payment. In most instances, manufacturers are not currently providing any support on used vehicle leases. As a result, it often turns out that used vehicles aren't much less expensive to lease or than an equivalent brand new model. There are exceptions to this of course. BMW frequently provides lease support on its Certified Pre-Owned vehicles that make leases on them very attractive. Unfortunately, I personally do not follow manufacturers' used vehicle leasing programs all that closely and would not be able to tell you which vehicles currently have the most support available on them, if any. I suggest that you shop around at a couple of dealerships to get an idea of what it would cost you to lease a used Passat, A4, or 3-Series right now. Then compare those numbers to the cost of leasing a brand new model. You may find that the small difference in monthly payments does not justify going the used route.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi vkj. The Audi Financial Services lease money factors for a 2001 A6 2.7T are .00260 for up to 39 month and .00280 for 48 month terms through December 5th. Furthermore, the 12,000 mi/yr residual values for this car are 68% for 24 month, 63% for 30 month, 59% for 36 month, 58% for 39 month, and 52% for 48 month terms. It is possible that the dealership that you visited is using a different bank or is marking-up the lease money factors that they quoted you.

    I am sorry to say that I am not all that familiar with how the taxation of leased vehicles works in your state. I seriously doubt that any dealership that you deal with would intentionally overcharge you for the tax on your vehicle. This would probably be a serious violation of the law. However, if you want to make sure that you are being charged the correct amount of tax, perhaps your local Department of Motor Vehicles would have information on exactly how to calculate it in your home state.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • vkjvkj Member Posts: 67
    how much leverage do i have to force the dealer to use audi's program rates? Do these rates vary at all from state to state? will audi verify these rates in some form so that i can show them to the dealer?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Vkj, you can not force your dealer to use Audi Financial Services' base rates when calculating your lease. Most banks allow individual dealerships to mark-up their rates a certain amount if they choose to. Audi Financial Services' lease money factors do occasionally vary from state to state. However, the only state that differs from their core program at this point is the state of Florida. If you are not happy with the deals that the dealership that you have visited has offered you, you always have the option to shop elsewhere.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • setonamaximasetonamaxima Member Posts: 1
    Hey Car Man, I was wondering what's a good price for a markup for extra mileage on a lease. I'm looking to lease a Nissan Maxima GLE and one dealer told me I would have to add $40 a month to change the lease from a 12,000 miles lease to a 18,000 miles lease with a 12 cents/miles addition at the end. Is that fair?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Setonamaxima, $.12 per mile is a fairly typical excess mileage charge. For instance, Chrysler Financial charges its lessees $.12 per mile for extra miles in advance and $.15 per mile per extra mileage at the end of lease terms. Many luxury manufacturers' captive finance companies will charge more like $.20 to $.25 per mile.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • moparfan2moparfan2 Member Posts: 3
    Okay, here is goes. Quick and simple. I'm ready to lease a Maxima. Never leased before, so what are the ends and outs of the process. What should be asked, known, and what I's and T's need to be dotted and crossed before signing? Can you still haggle with the price? Any and all help would greatly be appreciated. Thanks in advance.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi moparfan2. Your name suggests that you love Chrysler products, but you are leasing a new Maxima. Interesting. Good choice in cars though. I helped my father lease a new Maxima a few years ago and he loves it.

    Although leasing appears to be very confusing at first, there are really only a few important numbers to concentrate on. The first one is the vehicle's capitalized cost. The capitalized cost, or cap cost as it is commonly called, is essentially the price that you would be paying for the vehicle that you want to lease had you paid cash for it. You are free to negotiate the price of a leased vehicle, just as if you were purchasing it normally. It is important to do so, because this is the main factor that you have control over as a consumer.

    The other important figures that are used to calculate your monthly lease payments are called the lease money factor and the residual value. The money factor is essentially the interest rate that you are paying on the money that the bank is footing for you to lease the car that you want. It is usually expressed in the form of a 5 digit decimal, such as .00240. This can easily be converted to an approximate interest rate equivalent by multiplying it by 2400. I definitely suggest that you find out what the lease money factor for the car that you want to lease is prior to signing any contract. Right now Nissan has supported lease money factors as low as .00260 on the 2001 Maxima. Make sure that the money factor that you're being charged is right around that figure.

    The last major component of a lease is the vehicle's residual value. Lease residual values are basically the bank's estimation of what the vehicle that you want to lease will be worth at the end of your term. This number allows the bank to charge you for the portion of the vehicle that you are using during your lease. For example, the a 3 year lease on a 2001 Nissan Maxima may have a 15,000 mile per year residual value of 52%. This means that on top of the interest that you are paying, your payments will be contain equal payments to account for the 52% of the vehicle's MSRP that the bank believes the car will lose during the life of your lease. If you choose to lease with fewer miles per year, like 12,000, then your vehicle's residual value will increase and in turn your monthly payments will come down slightly.

    Prior to negotiating a lease on your next car, I suggest that you pay a visit to a topic that I started a while ago here in the Finance, Warranty, and Insurance Conference. It is called "How to Calculate Monthly Lease Payments." I think that you will find the information that it contains very helpful. Please click here to go there: FWI Topic #35 "How to Calculate Monthly Lease Payments.

    Of course if you have any questions on a subject that I did not address in this post, please don't hesitate to ask.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • moparfan2moparfan2 Member Posts: 3
    Okay, I drive to the dealership and ask to test drive the car I am looking to lease. Once I find the car's features to my liking, the dealings begin. What is the correct order in which to begin. Do I haggle the price first? (which by the way, what is a decent percentage should one begin the pricing war - e.g. should I offer them 27K on a 30K car?) Second, is it appropriate to ask the following: What is the Lease Money Factor and Residual Value? Is this info commonly released to the perspective buyer? Your previous explanation was quite helpful, but the nerves are going into overdrive. Lastly, one dealer has told me that the 2000 Maxima GLE have an incentive of $3,000 off. Is there an advantage of buying a 2000 vs. 2001 at this time of the year? _ Thanks again in advance.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Wow Dan, you certainly were thorough in your research for your new truck. Good job. Both the price that you were quoted for this truck and the lease money factor seem very reasonable to me. The money factor certainly is lower than the unsupported GMAC lease rate that you would have had to use if you leased through GM. However, for some reason when I plug the numbers into my lease calculator I come up with a pre-tax 39 month lease payment of $522 and a 51 month payment of $478. These are quite a bit lower than the payments that they calculated for you. I suggest that you try plugging the numbers into the formula that I posted a link to in my previous message and then let me know if you come up with the same payments.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Moparfan2, yes price is the first issue that I would address when looking to lease a new car. The exact percentage of the vehicle's MSRP that you will have to pay will vary tremendously depending upon the popularity of and the supply of the vehicle in question. In order to get a good idea of what the car you are interested in is going for in today's market, I suggest that you either check out the Edmunds.com True Market Value for the vehicle by visiting its new vehicle pricing page on this site or visit the Town Hall Conference that is most likely to have fellow owners and shoppers that are interested in the vehicle that you want and ask them for feedback.

    The exact lease money factor and residual value for the vehicle that you want will also vary quite a bit depending upon what model it is. I personally would want to know this information prior to leasing any vehicle, but some dealerships are hesitant to share this information. If you keep after them they will probably tell you the money factor and residual that they are using to arrive at your monthly lease payments. If you would like, you can always ask me and I would be glad to let you know what I think a fair money factor and residual value would be for the vehicle that you want.

    There isn't a $3,000 manufacturer incentive available on the 2000 Nissan Maxima at this point. The dealership must be combining the $500 dealer cash incentive with a price discount to arrive at the number that they told you. There can be a definite price advantage to purchasing a left over 2000 model year vehicle this late in the year. In my opinion, purchasing a left-over vehicle is actually a pretty good idea in this particular vehicle's case because the 2001 Maxima remains virtually unchanged from the redesigned model that was introduced in the 2000 model year.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • gperrgperr Member Posts: 163
    Car_man

    Can you please provide the current Residuals and Money factors for the following vehicles. Also, please let me know when each current program ends. Thanks in advance.

    Gregg

    24 months up to 39 months
    12k miles

    a) 2001 Honda Prelude (base) (5-spd)
    2001 Honda Prelude (SH)

    b) 2001 VW Jetta GLS V6 (5-spd)

    c) 2001 Nissan Maxima SE (5-spd)
  • dspangenbergdspangenberg Member Posts: 8
    Car_Man
    Thanks for the response. Those numbers were from my calculations. I did make an error and not take into account the $4000 reduction on the cap cost when I computed the monthly interest. When I corrected it the numbers matched yours. Thanks for catching it. :-)

    I have not yet "gone to battle" with the dealer. I like to make sure all my numbers are correct first. I have done many leases for our small business. The last one on a Ford Pickup took well over an hour at the paper signing before they could get their numbers to match mine. They had included several "hidden" charges that they said were always added on leases as a matter of course. They said they had never seen anyone who actually understood the numbers and could calculate a lease payment. Looks like dealers are still used to steamrolling the consumer.

    It really isn't that complicated, but somehow only a very small percentage of people know how to figure it. Amazing how a little bit of education can save so much....

    Do you have any concerns or red flags on the 51 month lease?

    Thanks
    Dan
  • moparfan2moparfan2 Member Posts: 3
    Car_Man,

    Hopefully this will be the last question regarding the deal I'm currently working. What, if any, effect would the residual value have if at the end of the lease the car was just going to be turn in? Wouldn't an "Closed-End" lease basically be, I drive, they evaluated, car stays at the end of the lease. All the prescribed payments made, no more money owed? Does the person leasing have to pay any monies when turning the vehicle in (providing no excessive damage occurs)? The dealership is saying if a "Good Deal" can be struck with a loaded 2000 GLE, then the residual will not be a factor since we are not planning on selling, buuying or "trading in" the car at the end of the lease. We'll just lease another one. God I hope this makes sense because with all the jargon/mind playing going on, I'm wiped out. Thanks Again!!
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi Gregg, I would be glad to help you out. Through January 3rd, the 24 month lease money factor and 12,000 mi/yr residual value for a 2001 Honda Prelude are .00386 and 65% respectively through American Honda Finance Corp. for both of the models that you mentioned. Through December 6th, Volkswagen Credit's identical lease parameters for the 2001 Jetta GLS V6 are .00335 and 67%. Finally, through November 30th Nissan Motor Acceptance Corp.'s money factor & residual for the 2001 Maxima SE are .00260 and 65%.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    No problem, dspangenberg. I am glad to see that your numbers eventually matched mine. I generally advise consumers to lease for terms that are shorter than the 51 month term that you mentioned. I do so for a couple of reasons. One is that your vehicle's warranty will expire over a year before your scheduled lease-end date. As a result, you will have to pay for any necessary repairs to your vehicle out of your own pocket or else face lease end excess wear and tear penalties. Also, 51 months is a long time to be locked into one vehicle. One never knows what can happen during such a long period of time. Your financial situation could change so that you want a more or less expensive vehicle or you could just get sick of your Suburban. With such a long lease it will be extremely expensive for you to get out of this truck prior to your scheduled lease termination date.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Moparfan2, assuming that you are not over your mileage limit and that your vehicle does not have any excess wear and tear then yes at the end of your lease you could just turn in your vehicle and walk away without paying any money. In fact, if your vehicle is in good shape and you paid a security deposit at the beginning you should get that money back in full. This assumes that your lease does not have any "disposition fee." A disposition fee is much like an acquisition or bank fee that a bank would tack onto your lease, but instead of at the beginning of your term it is at the end.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • dnhdnh Member Posts: 2
    is there a significant difference between leasing and buying as far as deductions go? I am a small business owner and 75% of the use is for business purposes.
  • wdavid1wdavid1 Member Posts: 2
    I am currently leasing a 99 Explorer (Open ended
    Lease) for 5 years. I leased it in Jan of 99 so
    this is going to be my 3rd year. I don't know why I
    did such a thing. One, leased it for 5 years.
    Two, leased such a bad car (having 4 recalls in the
    first few months). Plus having to deal with the
    Firestone thing. I want to get out of my lease.
    How and what can I do to get out of it?
  • bretfrazbretfraz Member Posts: 2,021
    I thought those were an almost extinct breed. It's my understanding that you can get out of an open-ended lease anytime. Check your payoff amount, sell the Exploder for that number and pay off the contract. A sale price less that the payoff comes out of your pocket.

    The 'benefit' of open-ended leases was supposed to be that you could build equity in the lease if it was worth more than the residual at maturity. The amount over the residual went in your pocket. Problem is most vehicles aren't worth more at maturity, they're worth less, so the difference comes out of your pocket.

    The sad part about 5 year leases is that you end up paying for almost the full amount of the vehicle then have nothing to show for it. That totally negates the advantage of leasing which is driving a specific car for a limited amount of time for as little money as possible.

    What are your choices? Well, you can stick it out the whole 5 years. I hope to God you're not over miles. Or you can try to buy out your contract, sell it to someone (slim chance) or do a normal finance, in essence converting your lease into a purchase. Maybe someone else has another idea or two.
  • kmowenskmowens Member Posts: 1
    The buyout on my friend's lease is $21,110. The lease dealer will pay her $27,000. She wants me to be able to buy her purchase option at $21,110 from this lease dealer...but the dealer says No because they can only sell it to her.I wanted to be able to purchase for cash from the dealer and pay her the difference. But the lease dealer states that they will sell it to me only if I finance it through them. Does anyone have any knowledge about this situation?
  • phantom522phantom522 Member Posts: 1
    Hi Car_Man: I have been reading many of the posts regarding leasing cars and applaud your willingness to help those of us in the dark. Hopefully, one more round of neophyte questions will not upset you. I am leasing a 2001 Honda Accord Coupe. I have never leased before. I obtained what I believe is a wonderful deal (since another dealership said WOW what a wonderful deal). The basic numbers are 36 month, 15,000 mile, tax included (not sure if GAP is included) for $256.80 per month with $4,500 down (my choice) plus my trade ($800). Having read many of the remarks in this forum, I know that I need to check out the CAP COST, LEASE MONEY FACTOR, RESIDUAL VALUE AND EXCESS MILEAGE CHARGE. However, I have NO idea what those numbers should look like. Can you provide your usual insight on this please. Thank you and happy holidays.
  • sstaylorsstaylor Member Posts: 35
    Car_Man,

    I am considering a lease on an '01 Silhouette Premiere. I am getting a price quote of right at $30K, but I haven't started haggling, yet. My question is this; what is the mf and lease rate from GM right now? Also, are you aware of any lease support being available?

    Thanks,
    SST
  • bretfrazbretfraz Member Posts: 2,021
    It's sounds to me that your friend wants to sell you this car for $27000, and her payoff is $21110. And you want to buy it for $27000. Is this right?

    If so, it should be a simple deal. She has to payoff her outstanding loan to her finance company. I hope the $21,110 includes any fees or penalties especially if its an early lease termination.

    I'm assuming you already have financing arranged for the $27,000 and that you are buying, not leasing, this car. If you're already approved for the loan have the bank cut a check in the purchase amount ($27,000 plus tax and whatever fees).

    I see no need to involve the dealer since the transaction is between you and your friend. Of course they want to finance it to you but anyone can bring their own money.

    My gut feel says I'm missing something...........
  • KCRamKCRam Member Posts: 3,516
    Hi kmowens

    I answered your identical question in topic 571, so please check there.

    Bretfraz, yes you misread what is going on. kmowens wants to buy the car at the payoff price of $21K. The dealer can only accept $21K from the lessee, but they value the car at $27K to any9one else. kmowens thus wants to buy the car at a $6000 savings.

    kcram
    Co-Host - Smart Shopper & FWI Conferences
    edmunds.com Town Hall
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Thanks for the kind words, phantom522. Well, the first number that you should find out is this car's capitalized cost. The capitalized cost, or cap cost as it is commonly called, is essentially the amount of money that you are paying for this car. As you can imagine, the lower this car's cap cost is, the better the deal that you are getting, and the lower your monthly payments will be. Make sure to look at this car's cap cost prior to the deduction of your down payment. You will also need to know this car's full MSRP. One good way to tell if you are getting a good deal is to compare the car's full price, its MSRP, with its cap cost, the price that the dealership is essentially selling it to you for.

    Although the cap cost and the MSRP are probably the two most important figures, if possible you also should also find out the lease money factor and residual value that are being used to calculate your monthly lease payments. The exact lease money factor for this car will vary depending upon whether you are leasing a 4-cylinder or a 6-cylinder model. Right now, American Honda Finance Corp. has special lease money factors on 2001 4-cylinder Accords that are equivalent to just over 6.6% interest for 36 month terms. However, if you are leasing a 6-cylinder model and are going through AHFC, you will have to use their standard lease money factor which is equivalent to an interest rate of about almost 8.3%. As far as residual values are concerned, the 2001 Accord's 36 month 15,000 mi/yr AHFC residuals will be between 57% and 60% again depending upon the exact model that you are leasing.

    If you are able to come up with any of the aforementioned figures and would like to bounce them off of me, please feel free to do so.

    Happy Holidays,

    Car_Man
    Smart Shoppers / FWI Co-Host
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi SST. Although they may vary slightly depending upon the area of the country that you live in, in the majority of the country General Motors Acceptance Corp. (GMAC) has a special lease rate of 5.65% on all 2001 Oldsmobile Silhouette minivans for 24 to 36 month terms. GMAC's supported 15,000 mi/yr residual values for the 2001 Silhouette Premier Edition are 57% for 24 month, 51% for 30 month, and 48% for 36 month terms.

    This should answer all of your questions, but if you think of any others please don't hesitate to ask.

    Happy Holidays,

    Car_Man
    Smart Shoppers / FWI Co-Host
  • dedeededee Member Posts: 3
    Hi,
    I was at the Honda dealership tonight and obtained the following lease for a new 2001 Honda Accord Coupe EX, with no extras added (mudgaurds, visor, etc):
    39 month lease
    .00278 money factor
    $309.45/month
    $1,500 down payment (Acquisition fee $450, no sec. deposit)
    Capitalized cost: $20,475 (I think, don't have actual paperwork until tomorrow)
    Residual: 57% (again, not sure since I don't have paperwork yet, but I'm sure these are the #'s.)

    Do you think this is a good deal that I've just gotten into or did I get ripped off? The monthly payment and down payment were the lowest that I've been offered in the past month, so I feel that I've gotten a fairly good deal, but wanted a third opinion. Thanks!!

    deedee
  • dedeededee Member Posts: 3
    Hi,
    one small addition...the coupe is a 4-cylinder. Thanks!
  • cshullcshull Member Posts: 3
    Do you have the money factor and residual value for the December Nissan's yet? Specifically the SE and GLE. The information (when you have it) would be greatly appreciated.

    Christian
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi deedee. Nice car, for some reason I've always been really fond of Honda Accord Coupes. Just curious, what color did you get?

    OK now on to your question. It's good to see that you made sure to find out the lease money factor that is being used for your deal. The dealership is using the special lease money factors that American Honda Finance Corp. has available on 4-cylinder Accords right now and is not marking them up. Still, one other piece of information that you should probably find out is this vehicle's capitalized cost. The cap cost is essentially the amount of money that the dealership is charging you for your car minus any down payment that you make. When leasing a vehicle, consumers are able to negotiate its price just as if they were purchasing it for cash. The cap cost is an important figure to know, because by looking at will enable you to tell just how much you're being charged for this car and if you are getting a good price. If you have shopped around at a few dealerships and this is the lowest price quote that you received, then you probably did just fine.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello Christian. I have briefly seen Nissan's December incentives programs, but I don't actually have a copy of them yet. From what I remember, their lease program was almost identical to November's except for the fact that they added $500 lease cash to I believe the 2001 Pathfinder. Don't quote me on that though until I can take a second look at their new program. I should have the exact details by some time late this week. Please feel free to check back with me then and I would be glad to let you know what their program is like for the vehicle that you're interested in. When you check back though, I will need you to be more specific about the exact model that you're interested in and not just the trim levels. Thanks.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • hjoestrick9hjoestrick9 Member Posts: 5
    I need to know what an ideal cap cost and payments would be for a 2001 Maxima, 15k, with a moonroof, wind deflector, spoiler, mats. on a 51 and 54 month lease. My trade is a 1998 Taurus SE, 59k, spoiler, electric windows, locks, cruise, cloth seats, no power seats. I owe $13,300 on it and we are putting down $2k. Let me know if you need more figures. Thanks
  • hjoestrick9hjoestrick9 Member Posts: 5
    that is a maxima GLE
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Taking a look at the Edmunds.com True Market Value section of this site is a good way to determine a fair price for the car that you're interested in. You can find the TMV for a 2001 Maxima GLE by clicking here: Edmunds.com Nissan Maxima GLE Pricing Page. Once you have checked out this car's TMV, you may also want to ask fellow Maxima owners and shoppers what they think is a fair price for this car. The Smart Shoppers Conference and Sedans Conference are two great places to get pricing feedback from other community members. I personally believe that you should be able to get this car equipped as you mentioned for around $25,800 or a little more pre-tax.

    You mentioned that you wish to lease this car for 51 or 54 months. I usually advise consumers to lease for a shorter lease term than this for a wide variety of reasons. One is that your car's warranty will expire quite a while before your lease is up. As a result, you will be responsible for paying for any repairs that need to be made to your vehicle out of your own pocket prior to returning it. Furthermore, for any lease terms longer than 3 years, Nissan Motor Acceptance Corp.'s lease money factors on the 2001 Maxima increase from .00260 to .00365. So, if you lease for any term longer than 3 years you will have to pay an interest rate that is about 2.5% higher. To be totally honest with you, I don't even know if NMAC leases vehicles for longer than 48 month terms. I have never seen them publish any residual values for terms longer than that.

    I just ran a few numbers for you. If you lease the car that you described at a price of $25,800 with $2,000 down through NMAC for 36 months with 15,000 miles per year your pre-tax monthly lease payments should be right around $354 per month.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • hjoestrick9hjoestrick9 Member Posts: 5
    sorry, but can you run any numbers for me 36m, 48m, 51m, & 54 months.
  • hjoestrick9hjoestrick9 Member Posts: 5
    Car Man, What about my trade in? The payoff is around 13,250, and they will give me almost 9k for it. Thus, with the above figures, can you throw in an extra -$4,500k, for the difference of my trade-in, so I can see exactly where my payments should fall?? The $2k we are putting down drives the car off the lot and takes care of any starts. I believe the total cap cost, including the negative equity, was around $27k. We are going into a longer lease so I can keep my payments down. It will be financed by Chase, due to our beacon scores of 605 & 625, we fell out of any tier. Thanks for your prompt and helpful reply. H. Joe Strickland
This discussion has been closed.

Helpful Tools

Most popular vehicles