Lease Questions - Ask Here

sug · October 2004

We have a 2001 Volvo S80 with 95,000 miles on it, we love this car and is in great shape!! We have kept all services up to date. Our original warranty was a volvo extended warranty and it is about to end. We were wondering if there are any warranties out there that cover a car with this many miles. If so, would it be worth the money spent in terms of the coverage offered? What are the important features look for on an after market warranty. Any suggestions on good companies or ones to stay away from? Any other thoughts on the subject?

Thank you.
Sue

mia10 · October 2004

Hello Car_man

Thanks for the info. I now have more confidence in the Edmund's numbers that I used to negotiate my deal.

I would really appreciate your help with sample lease payment. I posted that info in message #13690. I'm new to this board -- so I apologize for the repost.

Thank you
mia10

qbrozen · October 2004

I looked into this when my volvo's extended warranty was ending. I determined it wasn't even remotely worth it. I only found a couple of places that would even do it (one of them being through the Volvo dealer) and they wanted $1200 per year (12K miles). The warranty has been up for over a year now and I've only replaced items that wouldn't have been covered anyway. But this is completely the wrong forum for this topic.

Kirstie_H · October 2004

sug, you'll want to visit our Extended Warranties discussion instead of this one which is about leasing. Just click on my link to get there.

Also, be careful not to use the "reload" feature in your browser to check for responses - it causes your message to re-post.

kirstie_h
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desgnconcpts · October 2004

Dear Car_Man,
Thanks for your reply.

I'm in Illinois (North Central region) where there is supposedly $1,500 cash back on GMAC leasing.

If you could come up with an appropriate 3yr/36mos lease for the CXL and the Ultra that would be great.
Both are AWD: CXL MSRP $36,910, Inv 33,000
Ultra MSRP $38,775, Inv 35,000
Would be great to know the incremental lease cost for every $1,000 so if options on vehicles in stock are different, I'll have some idea of what to pay.

ccap · October 2004

Help again, getting down to the wire.
Went to another dealship and the selling price is alot better. MSRP of %52,400 approx, with a selling price of $46,843. Now for 24, 36 and 39 months, 12k miles per year, what should my pre-tax monthly payment should be?? Salesman said he is using 57% for 36 months and 67% for 24 months residual off the MSRP. Help!!

Thanks

joshg · October 2004

Mr. Car man,

I have a 2000 Toyota Corolla with over 100K... My lease is due on 3/05 and obviously I'm over my miles. I assume I need to buy the car since I'm over my miles and while doing so I'll be over paying by over $5,000... (residual value is $8k / resell value is about $3,500). I want to get a newer car (used/new)... Do you think I should try to buy now before my lease is over or wait until the lease is done? If so, should I trade in the car and have the dealer pay for the residual value or should I buy/finance on my own and then go to the dealer once I own the car to us as a trade in?

Thanks for your help,

jg

gpv · October 2004

I am trying to decide between 2004 Honda Pilot EXL-DVD and similar 2005 model. I am a NY resident so I believe my only leasing option is from AHFC. I understand the difference in liablity here in NY, but generally what is the difference numbers-wise between leasing with AHFC in NY and elsewhere?

Spoke to one salesperson who said that there is currently a special lease (money factor) for 2004 Pilots, but 2005 Pilots would be at standard lease. Makes sense, but is the incentive money factor and residual tied to a specific model (say EX only) or all 2004 Pilots specifically those with negotiated selling prices (non-MSRP)?

Should I stay within NY to find/lease Pilot? How about NJ or OH? I'm assuming AHFC would use my NY address to give me appropriate lease.

Thanks for your help!

michael2 · October 2004

is it possible to trade in a leased vehicle on a new lease.
a friend has a 2002 suzuki xl7, 2 years left to go on the lease, she hates it and would like to lease a honda cr-v. is trading a lease for a lease possible.

CarMan@Edmunds · October 2004

Hey ogbuffguy. According to the latest information that I have seen, if you were to lease a 2005 Ford F-150 XLT super crew 4x2 through Ford Credit this month for 3 years with 12,000 miles per, its base lease rate and residual value should be 7.25% and 54%, respectively. You can convert this lease rate into an approximate money factor equivalent by dividing it by 2400. Ford is also providing $500 lease cash on this truck that will help you to negotiate a more attractive capitalized cost.

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CarMan@Edmunds · October 2004

Hey nbty. I have finally had an opportunity to take a look at this truck's new lease program, but in order for me to give you an idea of what it should be like I need to know 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 · October 2004

I am sorry to hear that you are going to be so far over your car's allotted mileage, mac3. I am sorry to say that, it is usually fairly expensive for consumers to get out of leased vehicles well before the scheduled end of their deal. In order for you to do so, you would have to purchase your car from the bank that you are leasing through at a cost that is likely higher than it is currently worth. Not only that, but most banks also require consumers who are purchasing their vehicles early to pay all of their remaining lease payments. As you can see, this can end up costing quite a bit of money. Unfortunately, the only way for you to avoid paying a hefty charge for excess mileage when you turn this car in at the end of your lease is to purchase it.

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CarMan@Edmunds · October 2004

Hey mia10. The selling price of the first car that you mentioned is definitely way too high. BMW is currently providing $3,000 dealer cash on the 2004 330i. You are only being given a $3,000 discount on it. This means that the dealer that you are working with is actually selling it to you for its full MSRP, which is way too much. You should easily be able to get it for much less than that. The same goes for the second car that you mentioned. BMW is providing $1,500 dealer cash on the 2004 325i. When one takes this cash into account, you are only being given a $300 discount on this car, which again is not nearly enough.

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CarMan@Edmunds · October 2004

Here you go Copper. If you were to lease a 2005 Volvo XC90 T6 through Volvo Finance in your area this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00192 and 63%, respectively. The numbers for an otherwise identical lease of an '04 XC90 2.5T AWD should be .00190 and 62%.

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CarMan@Edmunds · October 2004

Don't worry about it, ogbuffguy. I actually prefer it when community members post messages again if they haven't gotten an answer. I answer so many questions in this discussion that one or two occasionally fall through the cracks. I already answered your question about the F-Series and have not seen Toyota's new lease program on the 2005 Tundra yet. I would be more than happy to give you an idea of what it is currently like when I finally have an opportunity to take a look at it, but that probably will not be until next week. Please feel free to post a reminder for me then.

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CarMan@Edmunds · October 2004

Hi redwood1. I expect to see BMW's new lease program for this truck either today or tomorrow. Please post a reminder in this discussion for me and I will try to answer any questions that you have about it. Thanks.

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CarMan@Edmunds · October 2004

Hi a2j. I haven't seen Acura's October lease program for the TL yet, but I suspect that I will have an opportunity to take a look at it within the next couple of days. Please post a reminder in this discussion for me in a few and I will let you know what I have been able to find out for you. Talk to you then.

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CarMan@Edmunds · October 2004

You've come to the right place, vt18t. According to the latest information that I have seen, if you were to lease a 2005 Saab 9-2X Aero through Saab Financial Services Corp. this month for 2 years with 15,000 miles per, its base lease money factor and residual value should be .00126 and 71%. The numbers for otherwise identical 3 and 4 year leases of this car should be .00125 / 59% and .00120 / 48%.

If you were to lease a 2004 Saab 9-3 Arc Sedan through SFSC right now for 2 years with 15,000 miles per, its base money factor and residual should be an amazingly low .00001 and 55%. The numbers for otherwise identical 3 and 4 year leases of this car should be .00047 / 45% and .00082 / 38%. When negotiating your lease on this car, keep in mind that Saab is providing $4,000 lease cash on it that will help you to negotiate an attractive capitalized cost.

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CarMan@Edmunds · October 2004

Thanks for the additional information, eegs2k. I just realized that DaimlerChrysler introduced a new lease program on the Wrangler yesterday. I have not had an opportunity to take a look at its brand new numbers yet, but I should be able to check them out within the next day or two. Please post a quick reminder with all of the necessary info in this discussion for me in a day or two and I will work up a sample lease payment for you. Sorry for the delay.

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david_d · October 2004

I am not sure how to calculate a typical 36 Month Lease, with 12-15K miles per year...

Could you please help me out?
I am trying to determine or estimate what the monthly payments would be like.

Thank you.
David

ethansquare · October 2004

most likely 25,600 for the tsx i can get them down to.white on beige 2005 no nav auto.

mia10 · October 2004

Hi Car Man
Thanks for the information. When you get the October lease program information on the '04 330i or 325i, I would appreciate sample lease pmts, inception, and whatever other info you could provide.

Thanks again!

copper · October 2004

Carman,

Wow...the money factor went up from last month?
Did Volvo add any incentives?
I guess it would have been cheaper to get the car last month. Oh well.

You mean '05 2.5T correct?

Thanks again,
Al

njl · October 2004

Car_Man...

First off..you are the greatest.

Could you please provide me with the current MF and residuals for the 2005 Honda Odyssey Touring model. I'll be leasing in NJ with 15K miles/year.

Thanks

njl · October 2004

Car_Man...

I would be remiss not to mention again just how much I apreciate your input to this forum.

Could you please provide me with the residual and MF for the 2005 Toyota XLE Limited in both the 2WD and the AWD models. I will be leasing in NJ with 15K miles/year.

Thanks again.

autolovergirl · October 2004

Thanks, Car_man. I guess I'll just keep my current Odyssey until my lease is up in 2008. I'm already saving $250 a month towards the new one. My lease payment is only $160 a month (because I had a $7000 trade-in plus $7000 cash). I hope to get a better deal next time.

desgnconcpts · October 2004

Dear Car_Man,

I hope this is proper etiquette for this message board (seems that in some other messages you've asked folks to repost to remind you).

Please take a look at my message #13715, it has the detail you were looking for (my state) along with the Rendezvous models we're looking at. If I can can the appropriate lease rates for those 2 models with $0 down (not including tax, which unfortunately in IL must be paid) along with the incremental lease cost per $1,000, I'll be armed with all the info I need to make the best deal at my dealer.

Thanks again in advance for your help!

lfm3 · October 2004

car_man, Could you please post the September bmwfs base money factor on a 2005 BMW M3 lease. I plan to lease for 36mo/10k, but please let me know if the money factor differs for any other term. Is this money factor specific to the M3 or is it the standard bmwfs rate? Also, did the 2005 M3 money factor change for October? Thanks in advance.

yrneh1 · October 2004

I got a quote for 2004 Acura MDX Touring w/Navigation. I wanted to ask you if everything looks good.

MSRP 41770 (inc. destination)
Cap Cost 37350 (inc. destination)
36month 36k lease

Drive off $1000
Monthly payment = $528

It's the best quote I've received so far. I want to know what MF and residual they are using to make sure they are not adding any charges. Thanks for you help.

edmunds_noob · October 2004

Car_Man,

Do you happen to know the October incentives, MF, and residual for 2004 Saab Aero (36/36k)?

Also, I've now learned (from VWVortex forums) that the "coupons" that Saab dealers offer are actualy incentives from Saab to "switch brands". Apparantly, if you have a non-GM vehicle in your household when you buy a Saab, you qualify for the additional discount (up to $1500, so they said on VWV).

Regards.

chevyfan88 · October 2004

Car-Man,

Can you you tell me the current residuals and money factors for the 2005 Chevy Equinox LT AWD? I'm especially interested in a 36 month 12k and 15k mile lease.

Thanks!

CarMan@Edmunds · October 2004

You're welcome, desgnconcpts. Let's work up a couple of sample lease payment for you and see what we come up with. According to my calculations, if you were to lease a 2005 Buick Rendezvous CXL AWD with an MSRP of $36,910 and a selling price of $32,000 (invoice - $1,500 GMAC bonus cash + $500) through General Motors Acceptance Corp. right now for 3 years with 12,000 miles per, your zero down, pre-tax monthly payment should be right around $376. The payment for an otherwise identical lease of a 2005 Buick Rendezvous Ultra with an MSRP of $38,775 and a selling price of $34,000 (invoice - $1,500 GMAC cash + $500) should be around $406.

So there you have it. Let me know if you have any other questions.

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CarMan@Edmunds · October 2004

Hi again ccap. According to my calculations, if you were to lease a 2004 Infiniti FX45 with an MSRP of $52,400 and a selling price of $46,843 through Infiniti Financial Services right now for 2 years with 12,000 miles per, its zero down, pre-tax monthly payment should be right around $631. The payments for otherwise identical 36 and 39 month leases of this vehicle should be around $591 and $568, respectively.

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CarMan@Edmunds · October 2004

Hi joshg. I am glad to see that you are being very realistic about your situation. Many consumers believe that there is some magical way for them to get out of a lease that they are way over their allotted mileage for without having to pay any money. As you mentioned in your post, your least expensive option would probably to purchase your leased Corolla and continue to drive it for a while. If you don't want to continue driving your current car, you next best option is probably to purchase your leased car and then try to sell it on your own for the most money possible. In order to find out approximately how much money you will lose by doing so, you need to figure out exactly what it will cost you to buy your leased Corolla and approximately how much money it is currently worth on the open market. To find out your car's exact purchase price, place a call to Toyota Financial Services, or whatever bank you are leasing it through. When doing so, you may want to see if they are willing to negotiate your car's purchase option price. When trying to haggle with them, make sure to give them the impression that you are right around your allowed mileage. If you are way over, they will want to collect the hearty excess mileage charge that you will owe and if you are way under your car is more desirable for them. If your initial contact at the bank is unwilling to work with you, you may have better luck by working your way up the ladder a little bit. There certainly is no guarantee that they will be willing to work with you, but you don't have anything to lose by asking. Once you know your car's exact purchase price, compare it to its current value. You should be able to figure out what that is by looking up its Edmunds.com True Market Value in the following section of this site: Used Vehicle Pricing. You may also want to stop by the following discussion that appears on this message board: "Real-World Trade-In Values". One of our most knowledgeable community members, Terry, hangs out there and he is often kind enough to give consumers his opinion of their vehicle's value.

You definitely will get more money for your car by selling it on your own rather than trading it in. Of course, you have to have the money to purchase it to do so and it can be a hassle. If you want to trade it in, you are still better off paying your negative equity out of your own pocket than rolling into your next loan or lease and paying interest on it. You can try to get out of your lease now, but your bank may still require you to make your remaining payments on your car and pay its purchase option price. If you are going to have to pay for the remaining months on your lease anyhow, you might as well keep your car until the end of your lease.

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CarMan@Edmunds · October 2004

Greetings gpv. You are right, many independent banks will no longer lease vehicles to residents of New York. American Honda Finance Corp. still does, but it has increased its acquisition fee for residents of your state from $595 to $1,095. That additional $500 is the only extra cost that AHFC charges lessees in New York. Honda's special lease money factor on the 2004 Pilot is available on all trim levels of this truck, not just the EX. Furthermore, the selling prices of leased vehicles can be negotiated just as if you were paying cash for them. You definitely should not pay full price to lease an '04 Pilot at this point.

AHFC's higher acquisition fee is charged based upon the home address of the lessee, so you will not ba able to avoid it by driving to a neighboring state to lease.

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CarMan@Edmunds · October 2004

Hello michael2. It is possible to trade in a leased vehicle on a new one, however in order to do so one has to purchase their leased car or truck from the bank that they are leasing it through. When one does, the bank will likely charge them the sum of their remaining lease payments plus their vehicle's current purchase option price. It can be fairly expensive to purchase a leased vehicle well before its scheduled termination date. As a result, most consumers who try to do so are upside down, owe more money for their vehicle than it is currently worth on their open market, and have to pay money out of their own pocket or roll negative equity into their next loan or lease, which is never a good idea.

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CarMan@Edmunds · October 2004

Hi David. There is an outstanding article on how to calculate lease payments right here at Edmunds.com. Click on the following link to check it out: Calculate Your Own Lease Payment. Once you have a good understanding of how leasing works, check back with me and I will try to give you an idea of what the current base lease money factors and residual values should be for these models. I have not seen Mazda's new October lease program yet, but should be able to give you an idea of what it is like in a few days. Talk to you soon.

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CarMan@Edmunds · October 2004

Ethansquare, so you're saying that the selling price of this car is around $25,600? As I mentioned earlier, I also need to know its full MSRP in order to calculate a sample lease payment for you. Do you happen to know what that is?

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CarMan@Edmunds · October 2004

You're welcome, mia10. I would be happy to work up sample lease payments for you based upon the selling prices that you mentioned in your earlier post, but remember that you are being charged way too much for these cars. According to my calculations, if you were to lease a 2004 BMW 330i with an MSRP of $37,170 and a selling price of $34,170 through BMW Financial Services right now for 3 years with 12,000 miles per, its zero down, pre-tax monthly lease payment should be around $444. The payment for an otherwise identical lease of a 2004 BMW 325i with an MSRP of $31,800 and a selling price of $30,000 would be around $404. At lease signing for both of these cars, you would owe their first month's payment, a security deposit that is equivalent to that payment rounded up to the nearest $50 increment, and BMW FS lease acquisition fee of $525. If you are able to negotiate more reasonable selling prices on these cars, their monthly payments would drop.

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CarMan@Edmunds · October 2004

Oops, you're right, Al. I have to get used to typing 2005 next to models rather than 2004 now

. I did mean the 2005 Volvo XC90 2.5T AWD. Other than some owner loyalty cash, Volvo did not introduce any cash incentives on this model for October.

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CarMan@Edmunds · October 2004

Awww, schucks, njl. Thanks

. Is the 2005 Odyssey even at dealers yet? I didn't think that it was. I definitely have not seen its residual values yet. I can tell you though that it is very very unlikely that Honda will initially provide any sort of lease support on the '05 Odyssey. If that is indeed the case, and you were to lease one through American Honda Finance Corp. you would have to use its standard lease money factors. Its current 3 year base standard lease money factor is .00265.

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CarMan@Edmunds · October 2004

Hi again njl. By XLE, do you mean the 2005 Toyota Sienna? For the first time, Toyota is actually providing a little lease support on the Sienna. If you were to lease an '05 Sienna through Toyota Financial Services' in its New York region right now, its base lease money factor should be .00225 for leases of up to 3 years in length. Again, I have not seen this van's residual values yet, but to be honest with you the most important number is its money factor. Dealers often have the authority to mark-up banks' base money factors to add additional profit to deals, but they can not alter banks' published residual values.

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CarMan@Edmunds · October 2004

You're welcome, autolovergirl. I am sorry that I didn't have better news for you. I think that you are making a wise choice by keeping your current van until you are much closer to the scheduled end of your lease.

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CarMan@Edmunds · October 2004

Thanks for the reminder, desgnconcpts. It often takes me a day or two to catch up with the numerous questions that community members ask me in this discussion. It never hurts to post a reminder though because the occasional post does fall through the cracks. I just answered your question about the Rendezvous about an hour ago. Let me know if you have any other questions.

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CarMan@Edmunds · October 2004

Here is the information that you are looking for, lfm3. If you were to lease a 2005 BMW M3 Coupe through BMW Financial Services right now, its 3 year, 10,000 miles per residual value should be 65%. BMW is not currently providing any sort of support on the '05 M3, so if you were to lease one through BMW FS right now, you would have to use its standard lease money factors. I have not seen its current base standard money factor, but I suspect that it is around .00255 or so. For the first time in a while, BMW is providing lease support on the '04 M3. Its base factor for it is .00140 and its residual for this term would be 61%. You may want to think about leasing a leftover model if you can still find one equipped the way you want.

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CarMan@Edmunds · October 2004

Hi yrneh1. In order to find out what money factor the dealer that you are working with is using to calculate this truck's lease payment you need to ask them. I can tell you that American Honda Finance Corp.'s current base lease money factor for a 3 year lease of an '04 MDX is .00194.

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njl · October 2004

Car_man:

Yes...the Odyssey is at dealers as I sat in one yesterday. I've already received one quote a 2005 Odyssey with the DVD/Nav package for $569/mth with $1304 due at signing. I will find out today what vehicle price they used to calculate the lease.

njl · October 2004

Yes..it's the Sienna. Sorry...sometimes my typing fingers can't keep up with my brain.

Toyota is showing a special lease deal on their website for the 2005 Sienna. It states, "$299/mth for 36 months. $1869 due at signing (excludes tax, title, registration and acquisition fee). Security Depopsit waived by Toyota Financial Services."

I am interested in the XLE limited so I know it will be a lot more than the base model. I will have a quote on this vehicle early next week.

eegs2k · October 2004

Car_man,

That sounds good. If you can look at the lease program on the Wrangler Unlimited and crunch the numbers for me that would be great. I am looking at 48 months, 12k.

eegs2k

fish8 · October 2004

You put $14,000 down on a leased car? That is an atronomical amount to put down. Why didn't you just buy the car and put that down as a down payment?

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