Lease Questions - Ask Here

CarMan@Edmunds · October 2004

No problem, eagwheels. If you were to lease a 2005 Pilot EX-L without navigation or the rear entertainment system through American Honda Finance Corp. right now for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00250 and 64%, respectively. Using these numbers, an MSRP of $32,635 and a selling price of $31,135, I come up with a zero down, pre-tax monthly lease payment of right around $415. The money factor would be the same for the '05 Pilot EX, but the residual value would be 2% higher.

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CarMan@Edmunds · October 2004

You're welcome, kjw24. Yes those numbers are right on the money. Whoever told you that the cash incentives on the 3-Series expired on October 1st was either mistaken or just lied. BMW's cash incentives on '04 3-Series models are still there and are scheduled to run through November 1st. The supply of 2004 BMWs is definitely getting pretty thin. If you want one, you better act now. You may have to look at a few dealers to find a leftover 3-Series equipped the way that you want it, but there are still a few out there. Make sure to act quickly if you want one because they are going fast and I don't expect there to be much in the way of lease support on most '04 BMWs in November.

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scott31 · October 2004

Carman,

What are the current numbers on lease deals on the 2004 VW Phaeton?

Are the best #'s on a 36 month lease? I can do 36, or 42 months, 12k miles per year. What are the MF's and Residuals for those?

Also, just to triple check, what are the current incentives on the Phaeton (cash back, etc). I know they are posted on Edmunds, but I have had dealers mention stuff that isn't posted.

Thanks!

viggie · October 2004

Hi carman,

We are getting ready to lease a 2005 Cayenne Turbo and I have done some homework.
MSRP $94,510.00
Residual 55%
Cap cost: $89,510.00
Money factor: .00210
Term: 42
miles: 15,000/years
base monthly payment $1,190.69
We live in MA so state tax 5%: $59.53
Acquisition Fee: $595
Doc Fee (???? do not know what this is): $149

Is this a decent deal? Thank you very much for your advice.

Viggie

bpd196 · October 2004

I'm looking at a 42 month lease with 12,000 per year on the 04 sl awd murano with the touring package. Or if you could work a monthly figure for me with $1000 down

Thanks in advance carman

vino1 · October 2004

Car Man

The state is Florida & you might as well provide the 48 month factors also. Thank you!!

kyfdx · October 2004

scott31:

There is an ad in my local paper..

'04 Phaeton..
$699/mo.. $999 due at signing (1st pymt, $300 cap cost reduction)
No security deposit
3yr/30K miles

Just some info to think about..

regards,
kyfdx

enya18 · October 2004

I plan on leasing either an '04 or '05 Acura TSX. I live in Miami, FL. I've got two questions concerning the leasing process:

1. Once and for all, what fees SHOULD I expect and not be expected to pay- disposition fee, acquisition fee, etc.? Do they depend on your credit rating and/or where you live and/or the dealership?

2. Does the residual and money factor depend on where you live, credit ratings, leasing co.?? Or is it a standard number?

Thanks for all your help!

cheapowner · October 2004

Hi Car_man:

I have a question on leasing a company car for a small company.

Both Honda and Nissan dealers ask me to have a board member of the company sign a form to show leasing such a car is approved (by the board).

What's is the purpose of such? Do all manufacturers require such?

CarMan@Edmunds · October 2004

Interesting choice in vehicles, scott31. The Phaeton is actually a very underrated car. It is very nice, but the problem is that it's just too expensive. You are in luck because Volkswagen enhanced the lease program on this car a week or two ago. If you were to lease a 2004 Volkswagen Phaeton V8 through VW Credit right now for 36 months with 12,000 miles per, its base lease money factor and residual value should be .00030 and 55%, respectively. The numbers for an otherwise identical 42 month lease should be .00087 and 51%, respectively. When negotiating a lease on this car, keep in mind that VW just introduced $3,225 lease cash on it that will help you to negotiate an attractive capitalized cost. The $5,000 dealer cash that is available on the 2004 Phaeton can not be used in conjunction with VW Credit's special lease program.

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CarMan@Edmunds · October 2004

Hello viggie. Wow back to back posts about really expensive vehicles. The economy must be heating up

. The lease money factor and residual value that you were quoted for this truck are right on the money. This is a good thing because it means that your dealer is being straightforward with you. Porsche dealers frequently mark-up Porsche Credit's base lease money factors to add additional back-end profit to deals.

As far as the price that you were quoted for this model goes, most Porsche dealers, except for possibly the ones on the West coast, are aggressively discounting 2004 models to get rid of their old inventory. In fact, Porsche actually made secret payments to its dealers to help them sell their remaining 2004 Cayenne S models. Having said this, the discounts are not as large on 2005 models. There is a huge spread between full MSRP and dealer invoice on the Cayenne Turbo. It is over $10,000. The quote of $5,000 below MSRP that you were given is pretty good. Having said this, even though I am not all that familiar with how much dealers are getting for '05 Cayennes yet, I would not be surprised if you were able to beat it by comparison shopping a little bit.

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CarMan@Edmunds · October 2004

Thanks for the additional information, bpd196. If you were to lease a 2004 Nissan Murano SL AWD through Nissan Motor Acceptance Corp. this month for 42 months with 12,000 miles per, its base lease money factor and residual value should be .00105 and 56%, respectively. I would be more than happy to work up a sample lease payment on this vehicle for you, however in order for me to do so, I need you to provide me with its full MSRP and selling price.

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CarMan@Edmunds · October 2004

Thanks for the additional info, vino1. The state of Florida is in Toyota's Southeast region, which unfortunately is a problem. As you may already be aware, Toyota does not directly distribute its vehicles to dealers that are in its Southeast region. Instead, its cars and trucks go through a distributor. In addition to adding unwanted, annoying charges and options to Toyota vehicles sold in the Southeastern U.S., this distributor also publishes its own incentives and has its own captive finance company, SE Toyota Finance. I have not seen SE Toyota Finance's current lease program for either of these models. Sorry that I could not be of more help.

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CarMan@Edmunds · October 2004

Thanks for posting the details of the new advertised lease for the 2004 Phaeton, kyfdx. $699 per month with $300 down is much more attractive than the $699 per month with $3,560 down that Volkswagen was advertising it for earlier this month.

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scott31 · October 2004

Thanks kyfdx. There is a post on the Phaeton discussion board of someone getting one for $544 a month with $800 down. It was a dealer demo with 600 miles on it. I'm trying to get a similar deal.

CarMan@Edmunds · October 2004

Hi enya18. The exact fees that one has to pay when leasing vary from bank to bank. If you were to lease an Acura in the state of Florida, at lease signing you would have to pay your vehicle's first month's payment, a security deposit of that payment rounded up to the nearest $25 increment, AHFC's acquisition fee of $595, and any down payment that you want to make (which ideally should be $0). I am not positive, but I do not believe that AHFC charges any sort of lease disposition or termination fee. Consumers do need to have a minimum credit score to qualify for Acura's special lease program, but unlike a number of other banks AHFC does not have different credit tiers, each with its own money factors. Either you qualify for its lowest money factor for a vehicle or you don't. Acura is not currently providing any sort of lease support on the TSX. So if you were to lease one through its captive finance company, you would have to use its standard lease money factors. Its base standard factor for a 36 month lease is currently .00245. The only reason why this factor would be higher is if you were to have your lease security deposit waived. AHFC will do so in exchange for an increase of .00010 in the money factor that is used to calculate your vehicle's lease payment.

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CarMan@Edmunds · October 2004

Hi cheapowner. I am not exactly sure what sort of documentation is required to lease a Honda or a Nissan through a company. If both of the dealers that you spoke with told you that you need to have a letter from your company stating that the lease was approved then this may indeed me necessary. Sorry that I could not be of more help.

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jpm · October 2004

Car_man,

I am looking to lease a 2005 Passat GLX. Here is the quote I received from a dealer. Could you please advise on deal?

2004 Passat GLX Sedan (MSRP $31,430) Lease Quote:

48 mo lease, 15k miles per year allowance, $2,000 out of pocket. Dupage, IL titling.

$447 per month.

2005 model would run about $18 per month more.

Does this seem in the ballpark?

Thanks in advance.

scott31 · October 2004

I have one word.

OUCH!!!!!!!!!!

anonymousposts · October 2004

Having worked in an auto dealer business office for the last 3 years I can take this one.

If you plan to lease/buy the vehicle in the company name the you DO need a corporate resolution form. This shows that the purchase of the vehicle in the company name is known and approved by the officer's of the company. If I am not mistaken they want the letter to be on company letterhead and have the corporate seal on it if you are incorporated.

Hope that helps ........

enya18 · October 2004

So then what is the residual value of this car (Acura '04 TSX)?

kenv3 · October 2004

Car_man

Thanks for the information and advice. The demo model has all the options I was looking for so I may have to re-think doing another lease. It may work out better if I can get the cost down to purchase the vehicle and take a schedule 179 deduction as this vehicle is being used for business.

If I do stay with another lease do you think the 2005 incentives will increase to the 2004 level by the end of the year. I still have two months left on a 39 month Pathfinder lease so I do have some time before needing to make a decision.

bpd196 · October 2004

This is what they have offered. This should be a pretty good deal, right? Does the 1300 down include the taxes or do I have to pay them up front or are they included in the payment? sorry for all the questioChris- Best lease is 42 months.

MSRP=30,710; Invoice=28,243 + 42 for wheel locks =28,285. Sale Price $28,385

NMAC Money factor = .00105 (must have recent previous NMAC loan or lease); Residual (12,000 miles)=56%; Bank Fee=550;
MV=322 (as of 10/04, 4 years must be paid in advance); Doc fee=95; Tire tax=7.50.

42 Months 12,000 miles / year $331.74 with $1,306.24 due at inception.

ns

mvp2be · October 2004

Looking into leasing a honda crv in Hawaii.

This past month my friend got a 04 crv lx 2wd.
purchase price $21590
36 mo / 12k
$0 down
$325 monthly
residual val = $9790

at this time money factor is unknown.

I am looking into leasing a '05 crv, not sure of model yet. Do you know if there are any leasing incentives this month for crv models? Thanks in advance.

eagwheels · October 2004

Very helpful information. You are helping me gain the needed control over my negotiation. I am trying to determine where I should steer the lease discussion. Based on what you communicated, it sounds as if the .00146 MF(3.5%) rate is competitive, and probably not much opportunity here??
However, related to the residual, while I have also learned that the spread between the ex & exl was 2 points higher, a dealer quoted me lower residuals then you referenced and a more favorable MF. I was quoted a MF of .00146 and EXL residual of 61% and EX residual of 63%. Is the residual % subject to negotiation? If I can hold the MF constant and get the 2% higher residual, I believe I lower the monthly payment about $15 (depreciation charge $17 a month offset by $2 higher interest over the 36 months) Also, how much room do you think I have on the $31,135 selling price?

CarMan@Edmunds · October 2004

Hello jpm. There is a vital piece of information missing from your post, this car's selling price. The selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. This is an important number to know because without it it is difficult to tell what sort of deal you are getting and it is impossible to calculate a sample lease payment without. Afterall, you wouldn't pay cash for this car without knowing what you were being charged for it. I would be more than happy to work up a sample lease payment and let you know what I think of the one that you were quoted for this Passat for you if you let me know its price.

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CarMan@Edmunds · October 2004

Thanks for the helpful info, anonymousposts

.

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CarMan@Edmunds · October 2004

Enya18, American Honda Finance Corp.'s current 3 year, 15,000 miles per residual value for a 2004 Acura TSX without navigation is 57%.

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CarMan@Edmunds · October 2004

You're very welcome, kenv3. I suspect that the incentives on the 2005 Dodge Durango will be higher by the end of this calendar year, but I personally doubt that they will reach the level of support that is currently being provided on the 2004 model. It is difficult to predict what automakers will do with their future incentives with 100% accuracy, but I don't think that we will see that much support on the '05 Durangos until at least mid-2005.

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CarMan@Edmunds · October 2004

Bpd196, the "$1,306.24 due at inception" that you were quoted for this lease probably includes your first month's lease payment, a security deposit of that payment rounded up to the nearest $25 increment (unless it is being waived), NMAC's lease acquisition fee of $550 (unless is is being included in your vehicle's capitalized cost), and any sort of down payment that you make (ideally one should not make any sort of cap cost reduction when leasing). How tax is calculated on your deal varies depending upon what state one is in. If you let me know where you are I may be able to give you some information on how tax is calculated on leased vehicles in your area.

The lease money factor and residual value that you were quoted are right on the money. Using these numbers, an MSRP of $30,710 and a selling price of $28,385, I estimate that this vehicle should have a 42 month, zero down, pre-tax monthly payment of right around $315.

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CarMan@Edmunds · October 2004

Aloha mvp2be. Hawaii is not known for having the most competitive prices on vehicles because of the lack of competition there. I guess that is a small price to pay for living in such a beautiful paradise. Honda is not currently providing any sort of lease support on the 2004 CR-V. As a result, if you were to lease one through its captive finance company, American Honda Finance Corp., you would have to use its standard lease money factors. Its current 36 month base standard money factor is .00250 in the continental U.S. I believe that this is its base factor in Hawaii as well. I would be more than happy to calculate a sample lease payment on this truck for you, but in order for me to do so I need you to provide me with its full MSRP.

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CarMan@Edmunds · October 2004

I am glad that you found my post so helpful, eagwheels. .00146 is AHFC's base lease money factor for this vehicle with a waived security deposit. There is no opportunity to negotiate a lower factor than this because dealers are not allowed to lower bank's base money factors. Unlike money factors which can be marked up by dealers, banks' published residual values are set in stone and individual dealers do not have any authority to change them. You should focus your negotiations on getting the lowest selling price possible for this truck now that you know that you are getting an attractive money factor. I am not personally all that familiar with what Pilots are selling for right now, but you should be able to get a good idea of how much you should pay for this truck by looking up its Edmunds.com True Market Value in the New Vehicle Pricing section of this site any by stopping by the following discussion "Honda Pilot: Prices Paid & Buying Experience".

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viggie · October 2004

Dear carman,

We have a changed of story now.
Old story: 94,510 MSRP
           Cap cost 89,510
           Residual value: 55%
           Months: 42
           Milage: 15,000 (he told me the calculation was for 12,000 instead of 15,000)

New Story: 94,510
           Cap cost 89,510
           Residual Value: 53%
           Months: 42
           Milage: 15,000

In fact to lease for 15,000 miles instead of 12,000 the residual value is 53% instead of 55%

What do you think? Life is fun is in it!

Viggie

mgobluejoe · October 2004

Hi Carman,

I'm considering leasing a leftover 2004 Saab 9-3 Linear or Arc this month. I will be needing 18K miles per year and will be leasing the car for 3 yrs. I've gone to one dealership and others are looking for a car. The dealership w/ a car like produced a payment that was a little high. The sticker price is 31,070 on the Linear and TMV is 29,478. What is the resale and money factor on the 04 9-3? Are they extremely high or shall I shop elsewhere? The 05 Linear I liked was $555/month w/only 12K miles and 0 down w/ a sticker of 30,620. The 04 Linear payments weren't far behind.

mahiri · October 2004

Hello:
I am trying to get in touch with Car Man or anyone who may have experience shipping a car from New York to California (or some reasonable equivalent). I am looking to ship my Audi A4 Across country and am looking for some recommendations for some reputable shipping companies.

Also, I am considering trying to get someone to take over my lease. It is a three year lease, 15,000 each year, I am about 1 year into the lease, and the car only has $9000 miles on it. Does anyone have any experience getting someone to take over their Audi lease?

Thank you.

sebring95 · October 2004

I have some experience in lease assumptions as I've been involved with these in the past. You just have to find someone willing to take over your lease (sometimes you have to pay them) depending on all the factors. There are companies that can help you as well. I don't think I'm allowed to post their names here, so if you'd like more info please email me (click on my profile) and I'll give you some details.

shellyd · October 2004

Car-man:

I have negotiated a price on an 05 Pilot EXL with MSRP of 32635 (including destination) of 30159. I need a 15k/yr lease and am buying in Texas, but live in Oklahoma. The dealership says their money factor is .00234 (which according to your previous posts appears to be AHF's standard money factor with no "incentives". They are quoting me a 62% residual and rolling in 2K that I am underwater on my husband's truck that we are trading in for a lease pymt (36 mo) of $484.06 w/o taxes and title included. What do you think? I have used lease calculator software and can't match his monthly price. If I use the purchase price x residual %, I calculate that the pymt would be 464. Calculating the PP + 2K added to lease x residual, I calculate my pymt to be $500. Any thoughts?

kyfdx · October 2004

I get $453/mo.. Perhaps they are rolling in the $595 acquisition fee and some other garbage charges? It doesn't take much to bump it up.. The acquisition fee alone will add about $17/mo.

I think your calculator is faulty, or you are figuring the residual on the wrong number..

regards,
kyfdx

P.S. Your residual is multiplied times the MSRP.. Adding $2K only adds to the cap cost.. it doesn't change the residual.

slocko · October 2004

Hi Car_Man,

I am about to begin my research on the Acura MDX 2005 Touring nav/res now that my Ody 2005 Touring is out of the way.

I imagine there is still no lease support for the 2005. Do you happen to know the residuals and base money factor for the mdx above for 36 months/15k miles and 36 months/39 months? Any helpful Acura sales people out there?

Why isn't this information published? Would consumer reports have this information?

I tried to use the leasing calculator on the Acura site and it said to contact a dealer

Thanks.

shellyd · October 2004

kydfx--

I can match your $453/month pymt...I ran this several times and must have had something left in trying to match their numbers. They are not rolling in acq fees...we talked about those. I just wanted to make sure I wasn't missing something before I call to explain that their numbers aren't right. Thanks for your help!!

vincent1 · October 2004

In new york city the dealers are telling me that on a smart buy lease, the sales tax due is on the sticker price of the car and not the lease term?

vincent1 · October 2004

what is the required upfront money on a smart buy or lease?

acorby · October 2004

I am interested in getting a 2004 330CIC. What are the base MFs on 2004 convertibles from BMWNA? Also what are the residuals for 36 and 48 months on 2004 and 2005 models?

Also, is there any "trunk money" on the '04 330CIC?

Thanks!

liannell · October 2004

Hi Car_man,
Infiniti finally released its pricing on the 2005 G35 sedan. You were kind enough to provide money factor and residuals on the 04 model year, can you now do the same for the 2005 model? I'm looking for 36 mo or 48 mo, and 15k miles/yr. Thanks!

cheapowner · October 2004

So far I know Honda and Nissan require such form but not Toyota. What's the legal aspect behind it?

I just can't imagine a large corporation board officer has to approve every single fleet car they lease or purchase.

hpoohh · October 2004

Trying to lease a 2005 MB C230K sedan
Black on Black
Automatic
Lighting Package
Entertainment Package
Sunroof Package
MSRP $34910
Lease Term
$2600 Drive Off
$329+tax per month for 39months 10k miles per year

Do you think i am getting a good deal? Can i do better? Seems like they are very aggressive on moving their inventory, even 2005 models. Do you think they will have a better leasing support in December.

mtomeo1 · October 2004

I'm smack dab in the middle of my lease on a 2003 325xi. I love the car and highly recommend it (it rocks in the snow!), but I'm researching my options for getting oput of my lease (long story). I'm sure I can get this info with a simple call to BMW, but I thought I would post here first.

1) What kind of penalty am I faced with if I simply end my lease today?

2) Is my lease assumable and are there any transfer or other fees?

3) My payoff is a few thousand higher than Bluebook. Do I have any other options beside selling the car to a private party?

Thanks in advance!!!

bpd196 · October 2004

Thanks for all the help, just a few more questions. I live in NJ for tax purposes. I have a 2001 chrysler voyager with 2 months to go on the lease. I called my lease company for a payoff amount because I was going to sell it to a dealer. They said 7485 and that would include my last 2 payments. I then asked them how much if I bought the car and they quoted me 11,491. My question is why such a large difference and what if I told the company that I'm negotiating with now, I want to trade in my mini van 2001 with only 33,000 6cyl. What could I expect. I went on kbb and other dealers have my vehicle for sale between 11995 and 12995. If they are getting my car for 7485, how much can I expect in return, since they are going to sell it for between 12-13k

dannyp1 · October 2004

Car_Man,
I'm doing some research for the '05 Altima. Could you please provide the MF and residuals for a 36, 39, and 48 month lease, as well as any insight as to which term you think is the best deal. Also, are there any rebates with NMAC?
Thanks

frank10 · October 2004

Any experience with Lease-By-Tel as advertised in the Wall Street Journal?

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