Lease Questions - Ask Here

kutchaz · October 2004

I currently have 3 months left on my Xterra lease. I currently only have 35K miles on it and I was thinking that it might be a good idea to buy it. The current buyout price for it is $13K. When looking around on pricing websites it looks like the trade in value is no more than $10K and the book value is $12K. Does Nissan uaually negotiate the buyout price or do they usually stand firm on there price? I have called nmac once and they said they did't negotiate price but I also have a friend who did have them negotiate price.

Does it sound like it would be a good idea to buy it and has anyone else had luck getting nissan to negotiate the buyout price?

soccerpws · October 2004

Car Man,

Do you have the 36 & 48 residuals for the Civic EX?

CarMan@Edmunds · November 2004

Thanks for the additional information, kally. Now that I know that this car's full MSRP is, I can tell you that the selling price that you were quoted looks very reasonable. Let's work up a sample lease payment on this car for you. According to my calculations, if you were to lease a 2004 Infiniti G35x with a full MSRP of $36,320 and a selling price of $32,000 through Infiniti Financial Services prior to November 2nd for 42 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be right around $363. At lease signing for this car, you would have to pay its first month's payment of $363, a security deposit equivalent to that payment rounded up to the nearest $25 increment or around $375, and IFS' lease acquisition fee of $550 for a total of around $1,288. So as you can see, the lease payment that you were quoted is about right.

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CarMan@Edmunds · November 2004

Hello Robert. Let me begin by saying that your friend definitely should not talk to the dealer that she got here leased Accord from about purchasing it. The car is owned by American Honda Finance Corp., or whichever bank it is being leased through, and individual dealers have no authority to sell it. In order to find out if purchasing her leased vehicle is a good idea, she needs to place a call to the bank that it is being leased through to find out exactly what its lease-end purchase price is. Some banks are occasionally willing to negotiate the lease-end purchase prices of vehicles. There certainly is no guarantee that the bank that this Accord is being leased through will be willing to do so, but it's worth a shot. If your friend's initial contact at the bank is not willing to lower the car's price, she may be able to get better results by working her way up the corporate ladder a rung. Again, there's no guarantee that they will lower this car's price, in fact more likely than not they won't, but one has nothing to lose by asking.

Once your friend knows exactly how much money it will cost to buy this car, she needs to compare that figure to its current value. She should be able to get a decent idea of what this car is currently worth on the open market by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. She also should stop by the "Real-World Trade-In Values" discussion that appears here in the Smart Shopper Forum. One of our most knowledgeable community members, Terry, hangs out in that area and he is often kind enough to give consumers his opinion on their vehicles' value.

If your friend has enjoyed driving this car and the difference between its purchase price and actual value after taking the excess mileage charge that she would have to pay if she was to turn it in into account is reasonable then she may want to consider buying it. However, if the purchase price is much more expensive than this car's current market value then she may just want to turn in the car and walk away.

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CarMan@Edmunds · November 2004

Greetings anick. I am sorry to hear that you have a much longer commute now than you did when you originally leased your truck. Unfortunately, it is usually very expensive for consumers to get out of leased vehicles well before their scheduled termination dates. In order to get out of this lease, you would have to purchase your truck from the bank that you are leasing it through and then trade it in or sell it on your own. When one purchases a vehicle well before the end of its lease, the purchase price is usually more expensive than its actual value. Furthermore, in addition to paying the vehicle's purchase price, many banks also require consumers who want to purchase leased vehicles early to make all of their remaining lease payments at that time. As you can see, breaking leases early is often very expensive. Generally speaking, the closer you get to the scheduled end of your lease, the less money you will lose by getting out of your deal early.

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CarMan@Edmunds · November 2004

Hi Tony. I am usually able to give consumers an idea of what vehicles' current lease programs are like. However, Subaru's October lease program is only scheduled to run through November 1st. It will probably have a different set of lease money factors and residual values for the month of November. I should be able to take a look at its new November program sometime this week. I would be more than happy to give you an idea of what the November lease program is like for the model that you are interested in if you post a quick reminder for me towards the end of this week. In your reminder, include the exact model that you are considering leasing, 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 · November 2004

No problem, siemon321. I am glad that I was able to help you out. Many banks do offer lease programs on Certified Pre-Owned vehicles. However, manufacturers benefit by running specials on new vehicles because it boosts their sales totals and makes them look better. Certified vehicles usually do not receive the same level of support that new vehicles do. As a result, it is often as expensive or even more expensive to lease a used vehicle than it is to lease an equivalent new model. Some automakers provide pockets of support on used vehicle leases, BMW for one comes to mind, but generally speaking used vehicle leases are not as good a deal as new vehicle leases.

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CarMan@Edmunds · November 2004

Hey liannell. to the best of my knowledge, Infiniti has not published a lease program for the '05 G35 yet. Its October lease program is only scheduled to run through today, November 1st. I would not be surprised if it had numbers for the '05 G35 in its new November program. Please feel free to check back with me in a few days and I would be more than happy to tell you if that is the case.

Yes the closing certificates are different than the straight dealer cash that Infiniti is providing on the '04 G35 AWD. If I am not mistaken, the certificates can be used in conjunction with IFS' lease program, while the regular dealer cash can not. These certificates were only issued on AWD models.

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CarMan@Edmunds · November 2004

Hi suebeedux. I am not personally all that familiar with what the market is like for the 2004 Infiniti QX56 is like right now. You may be able to get a decent idea of what sort of prices consumers are paying for this truck right now by visiting the following discussion: "Infiniti QX56: Prices Paid & Buying Experience". If I had to make an educated guess, I would say that you should be able to get one for at least $500 below invoice right now, if not lower than that. Infiniti is providing its dealers with a number of $500 certificates that can be used to help them sell their remaining '04 QX56s. In order to give you an idea of what this truck's current lease program is like, I need you to tell me how long you are interested in leasing it for and how many miles per year you want to be able to drive it. If you let me know an approximate selling price for it as well, I can calculate an approximate lease payment on it for you.

I definitely would not put the money from your trade-in down on a lease of this truck if I was in your situation. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for this QX56 would be exactly the same, regardless of whether you had put $8,000 down, or had made absolutely no down payment at all. You should be much better off taking the eight grand from your trade and using it to supplement or make some of this truck's lease payments.

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g17 · November 2004

Hey Car_man...here's on for you.

Looking at a '05 Lexus IS 300 E-shift; Options are Lthr & Alcan Pkg, Htd seats, Spolier, Skid Control.....Total MSRP is 33645, lets say we can get it for 30600. Can you give me the resid. and money factor for 36 mo. 15k/yr. Assume $0 down, tax in NJ is 6% can you give me an idea what the monthly would be?

If there are better combos like 39 months let me know. I told my wife we can't do anything until we hear from you!! You've been very helpful in the past. Thanks again!

CarMan@Edmunds · November 2004

You're welcome, daydreamer56. Sorry that I didn't have better news for you.

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CarMan@Edmunds · November 2004

I am not sure if you are specifically asking me to answer your question, cdc1, or are just asking it again in general because you never specifically addressed it to me, but I will answer it anyhow. Unfortunately, I am not personally all that familiar with Maryland's policy for the taxation of leased vehicles that are purchased at the end of their terms. You may be able to find out more information on this subject by visiting one of the following Web sites: Maryland Motor Vehicle Administration or Comptroller of Maryland Site. Sorry that I could not be of more help.

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dv8tor · November 2004

Hi Car_man,

Can the acquisition fee be negotiated down or eliminated?

My guess is "no" and that the banks charge this fee and is not controlled by the dealer so it cannot be negotiated.

My lease is through US Bank for a Southern California market.

Thanks!

CarMan@Edmunds · November 2004

Hi sergkn. Let's take a look at the deal that you were quoted. You certainly are looking at an expensive FX35. The base MSRP for this model starts at just over $35,000 for the 2WD version. The specific model that you are looking at must be loaded up. Even though its MSRP is high, you are bring given a considerable discount on it. That is one of the most important figures to focus on when negotiating because dealers have no authority to alter vehicles MSRPs, but they do ultimately have a great deal of control over their selling prices. So the selling price of this vehicle looks pretty good to me.

One thing that I noticed about this deal is that you were quoted a lease money factor of .00194. Infiniti Financial Services' October base lease money factor for this vehicle is .00179. There are only two reasons why the factor that is used to calculate your payment on this model would be higher. The first is if you were to have its lease security deposit waived. IFS' will waive its security deposit requirement on leases in exchange for an increase of .00015 in the money factor that is used to calculate its monthly payment. Looking at the money due at lease signing in the deal that you were quoted, it does not look like this is happening here. The second and most likely explanation for why you were quoted a higher money factor for this model is that the dealer is marking-up IFS base factor to add additional back-end profit to your deal. Dealers are allowed to add up to .00125 to most of IFS base money factors. In exchange for this mark-up they get a kickback from IFS. This sort of thing is completely legal and happens all the time, but it can be prevented if you know what a vehicle's base money factor is. If I was in your situation, I would insist that they use the base factor or buy-rate to calculate this model's lease payment.

Let's work up a sample lease payment on this vehicle using the payments that you provided in your post and its base lease program. According to my calculations, if you were to lease a 2004 Infiniti FX35 AWD with an MSRP of $45,540 and a selling price of $40,914 through Infiniti Financial Services this month for 36 months with 12,000 miles per, its zero down, pre-tax monthly lease payment should be around $547. The payment for an otherwise identical 39 month lease should be around $525. The payment for an otherwise identical 42 month lease should be around $516. On all of these deals, at lease signing you would have to pay the first month's payment, a security deposit that is equivalent to that payment rounded up to the nearest $25 increment, and IFS lease acquisition fee which is $795 in New York.

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CarMan@Edmunds · November 2004

Hello kutchaz. Some banks are indeed willing to negotiate the lease-end purchase prices of vehicles from time to time. I do not have a whole lot of experience negotiating lease-end purchase prices with Nissan Motor Acceptance Corp. so I can not tell you how likely it is that they will be willing to lower your truck's purchase price. Despite the fact that NMAC claims it does not negotiate the purchase prices of leased vehicles in a statement on its Web site, you certainly should try to negotiate with them because you don't have anything to lose by doing so. Place a call to NMAC and see if they will work with you. If your initial contact will not lower your vehicle's price, you may get better results by working your way up the corporate ladder a rung. More likely than not they will not lower your truck's purchase price, but the worst thing that can happen is they would say no so give it a shot. Regardless of what happens with your attempt to get them to lower your vehicle's price, I personally would not purchase it if its purchase price is significantly higher than its current realistic value on the open market.

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CarMan@Edmunds · November 2004

I certainly do, soccerpws. However, Honda's October lease program for this car is only scheduled to run through today, November 1st. If you need to know what its new November program is like, post a short reminder in this discussion for me in a few days. As far as the October program goes, if you were to lease a 2004 Honda Civic through American Honda Finance Corp. for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00250 and 50%, respectively. Its numbers for an otherwise identical 4 year lease should be .00225 and 43%. When negotiating your lease on this car, keep in mind that Honda is providing $1,000 dealer cash on it that will help you work out an attractive selling price.

While it is difficult to predict what automakers will do with their future incentives programs with 100% accuracy, if I was in the market to lease an '04 Civic I would do so today rather than waiting for the November program to take effect. I say this because AHFC's residual values for the '04 Civic will likely be several points lower in November. Honda would have to significantly increase its dealer cash on this car to offset this drop in residuals and I doubt that will happen.

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CarMan@Edmunds · November 2004

Hey g17. I can tell you that Lexus Financial Services 36 month base lease money factor for a 2005 Lexus IS 300 with an automatic transmission is scheduled to be .00128 through November 30th. This factor is available for 39 month leases as well. Leasing this car for 39 months instead of 36 will probably result in a slightly lower monthly payment. I can not tell you what its current residual values are like though because I believe that LFS will publish new residuals for the month of November in the near future. I would be more than happy to look around and see if I can find out what the new residuals should be like on this car for you, but it will probably take a few days for them to be published and for me to find out what they are. Please feel free to check back with me towards the end of the week and I will be more than happy to fill you in on what I have been able to find out.

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CarMan@Edmunds · November 2004

Hi dv8tor. Vehicles' lease acquisition fees are set by the bank that they are being leased through and individual dealers do not have the authority to waive them. Some banks do give dealers the ability to mark-up their base lease acquisition fees to add additional profit to deals though so it is important to know what the acquisition fee of the bank that you are leasing through should be like before entering into negotiations with any dealers. I keep tabs on what sort of acquisition fees manufacturers' captive finance companies (banks that are owned by automakers) charge, but I usually do not know what sort of acquisition fees independent banks like US Bank charge on deals.

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g17 · November 2004

Great I'll check back....just for reference if you have it, what was the resid. for Oct?

Thanks

sergkn · November 2004

Thank You Very much Car_man!
I will try my best to get a right numbers.
Is this true that dealer can add back-end profit on documetation fees? How much are they approximately?

Tnank again.

cmgonline · November 2004

Car_Man:

I'm considering a lease on a Audi A8L and would like some helpful suggestions. I'm starting from scratch with no experience leasing (I've always purchase my cars) so excuse the ignorant questions. I've been in business for self for several years and have always purchased high end cars and now want to lease for business expense related purposes. Below is the information I have provided thus far on the car offered by a local dealer:

Audi A8L 2004 (18,232 miles)
Sell Price: $59,995
Lease options quoted (based on 10% down)
36 month: $867.00/month
39 month: $816.00/month
48 month: $782.00/month

I'm unsure of the factors that were used to quote this information and would like to know the right questions to ask in order to check and negotiate a lease.

Can you review and please provide me with a place to start?

Thanks....

tonyf · November 2004

Car Man Thanks,

I picked up a 05 Subaru Legacy 2.5i on Sat.

The MF was 0.00130 on the Legacy. They showed
me the actual sheet from Subaru. Only the Impreza
had a MF of 0.00080.

Tony

kally · November 2004

Thanks Car_man! Do you think the deals will be any different for November or should I work out the particulars today? Thanks for you advice!

tk911 · November 2004

my lease expires in july, and i am considering purchasing the car at that time, but the residual value on the lease will be way above what the car is worth at that time. is the purchase price (residual value) negotiable with the bank?

enya18 · November 2004

Although I've already inquired about Toyota's Leasing program in the Southeast (I'm in S. Florida) and you were unable to give me any information (since their program differs from other areas)- I would like to know if an acquisition fee of $595 sounds high? I read your previous answers where you said that the acquisition fees can possibly be marked up by dealerships- is there anyway of knowing this for sure other than speaking with the leasing company and asking what their STANDARD acquisition fees are? I'm looking into leasing the '05 Camry Solara.

Thanks!

explorer025 · November 2004

I am currently leasing a 2003 Ford Explorer and I need to get out of it. If I'm doing my calculations correctly and I return the lease right now, I should be getting money back. Is this correct? I got my balance from Ford and subtracted that number from the amount from Kelley Blue Book and it was a negative amount. What's the best way of doing this? Also I purchased the wear/tear option. This should cover any slight scrapes on my Explorer even if I end the lease early, right? Also my mileage is way under (18,000 miles for 19 months).

siemon321 · November 2004

OK, Car_man. I know tomorrow (11/2) will mean the start of new incentive deals for Honda. Can you take a look on Tuesday and let me know if there are new lease incentives, or other incentives, on 2005 Civics - either LX or EX models? I got a pretty good quote from a salesman on Saturday for a Civic EX, but he said he'd have to get back to me tomorrow with a new quote now that the October incentives are no longer good. Any help?

soccerpws · November 2004

Thanks Car Man. I'll check back with you in a couple of days on the November numbers. Really looking for a 2005

helspers · November 2004

Hi Car Man.

Thanks in advance for your advise.

I'm a Mr. Mom operating a very small (just me) consulting LLC. I use our 2000 Honda Odyssey minivan to visit clients about 25% of the time while personal use makes up the difference. My wife, the money maker of the family, drives a 2001 Honda Civic to and from work every day. Annual mileage on each car is less than 10k.

Now the question...would it benefit me to sell the minivan and lease a new Volvo XC70 or purchase it outright without getting my LLC involved?

Again, thanks.

rroyce10 · November 2004

......... Oooh, you and that refresh button must be having a love affair ....

               Anyway .... these are wonderful vehicles, but it seems your trying to lease a pre-owned A8L .. not only is it pre-owned, but it's a high-mileage pre-owned A8 ... $59,900.? too much, $58 would be the "end of the World" for 18k - plus the rate and the residual is already spent ....

                   If leasing is your gig, then you need to be looking at a new one, and $6,000 down is c-r-a-z-y .. no matter what you lease, whether it's be a Cavalier or a SL500, you need to keep the money to a minimum - all it does is lower your payment, nothing else .. so if the vehicle gets stolen, wrecked, damaged, traded, sold, then you will see -0- out of your $6,000 .. actually, less than -0-...

                I'm sure Car_Man can give you an idea on the "new" figures .......

                         Terry.

CarMan@Edmunds · November 2004

Sounds good, talk to you soon, g17. I don't have last month's program in front of me now but I will try to look it up for you.

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CarMan@Edmunds · November 2004

You're very welcome, sergkn. Doc fees are really nothing more than a way for dealers to add additional profit to deals. Most dealers charge some sort of doc fee, but some dealers' fees are several hundred dollars worth of fluff. Rather than looking at your deal with all of the fees broken out separately, focus on the total price of the vehicle that you are getting. If this vehicle's total price, including every fee, is equivalent to or less than the total price that you would have to pay for it elsewhere then go for it. Afterall, it doesn't really matter how the price is broken down if you are able to pay less to drive off in the vehicle that you want at this dealer than you would have to pay at other dealers in your area.

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CarMan@Edmunds · November 2004

Welcome to the wonderful world of leasing, cmgonline. Since you are new to leasing, you definitely should check out the following informative articles that are available on this subject here at Edmunds.com: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment. They will give you a very good grasp of how leasing works.

You never mentioned in your post whether this A8 is a "new" demo vehicle or a used one. If it is still technically considered to be a new car, I would be more than happy to work up a sample lease payment on it using Audi Financial Services' lease program for you. However, in order for me to do so, I need you to tell me its full MSRP and how many miles per year you need to be able to drive it. This is an important number for you as a consumer to know anyhow because the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the full MSRP of the car that you want to lease it is difficult to tell what sort of a discount you are getting on it. Also, keep in mind that it is never in one's best interest to make a substantial down payment when leasing.

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CarMan@Edmunds · November 2004

You're welcome, Tony. It certainly sounds like you picked a good dealer that was very straightforward with you. Congratulations on your new ride and enjoy!

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CarMan@Edmunds · November 2004

No problem, kally. It is difficult to say what Infiniti's November lease program will be like on this car. There is a very good chance that its November residual values will be lower, the only question it whether Infiniti will lower its money factors enough to keep its payment at the same level.

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CarMan@Edmunds · November 2004

Greetings tk911. Some banks are indeed willing to negotiate the lease-end purchase prices of vehicles from time to time. In order to find out if the bank that you are currently leasing your car or truck through will be willing to do so you need to give them a call a month or so before the scheduled end of your lease. Your initial contact there may not be willing to negotiate with you, but you may be able to get results by working your way up the corporate ladder a rung. During your negotiations, give the bank the impression that you are going to be right at your vehicle's mileage limit at the end of your lease. If you are way under, they may want your car back and if you are way over they may want to collect the excess mileage penalty that you would have to pay them. There certainly is no guarantee that they will be willing to work with you, in fact more often than not banks won't, but you don't have anything to lose by asking.

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CarMan@Edmunds · November 2004

Hi again enya18. I know that SE Toyota Finance charges a lease disposition fee of $350 on vehicles, but I am not sure exactly how much its acquisition fee is. I believe that Toyota Financial Services' base acquisition fee is currently $400. It would not surprise me in the least if SE Toyota Finance's fee was higher than that. Many many banks' acquisition fees are now in the $600 range, so unfortunately a fee of $595 is not that far out of line with industry norms.

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CarMan@Edmunds · November 2004

Hello explorer025. It is VERY unlikely that you will get money back if you try to get out of a leased vehicle well before the scheduled end of your contract. When you stated that you got your balance from Ford do you mean that you were quoted the price that you would have to pay to purchase your leased Explorer at this time or just the total of your remaining lease payments on it? In order to get out of a lease well before its scheduled end, one has to purchase the vehicle that they are leasing and trade it in or sell it on their own. Not only do consumers have to pay their vehicle's purchase price, which more often than not is higher than its actual market value at the time, but many banks require their lessees to make all of their remaining lease payments in addition to paying the purchase price. As you can imagine, it often turns out to be very expensive to get out of a lease early.

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CarMan@Edmunds · November 2004

You're welcome, soccerpws. Talk to you soon.

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CarMan@Edmunds · November 2004

You're welcome in advance, Mr. Mom

. Volvo often has a very attractive lease program on the XC70. I have not seen what its new November lease program is like, but should be able to tell you about it if you check back with me in a few days. I am not an accountant so it is difficult for me to tell you whether you would be better off from a tax standpoint purchasing or leasing your new Volvo. Your best bet would be to ask your account about your specific situation prior to making a decision.

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nomoreleasing · November 2004

Dear Car Experts:
Four years ago when I originally leased my camry from the local toyota dealer here in kendall, miami, I was promised many things that were not true. Now that my lease ends next week, I am concerned about being charged extra fees or some hidden costs besides the disposition fee, I am going to be 1,000 miles under the limit and the car is in good condition, any advice on how to protect myself from SE Toyota and their dealer trying to squeeze more money yet from me after they charged me 13% on a 4 year lease?

explorer025 · November 2004

Thanks for the info. I received a brochure from Ford Credit with information on ending my lease early. One of my options is to take the difference between my current balance and my vehicle's fair market wholesale value. My current balance, which I got from Ford Credit and is the total of my remaining lease payments, is about $18,000. The value of my car from Kelley Blue Book is $21,000. This shows I would be refunded $3000. Am I missing anything?

kyfdx · November 2004

You are assuming that Kelley Blue Book value will be the same as "fair market wholesale value". In my experience, that is rarely the case.. The bank will determine "fair market wholesale value" by sending your car to the auction.. If they get $12K for it, you will be out $6K..

regards,
kyfdx
(not the expert)

rosebud1 · November 2004

Leased a Nissan Sentra in early June 2004. Car was hit by a drunk driver while parked on a residential street early one evening.Driver refused breathlyzer but carries insurance.I am at no fault in this accident.If the car is not totalled they will fix it and its still ours.We would no longer be leasing a new car and at the end of our 3 year lease we are responsible for any problems with the car.Can we get out of our lease with no penalties to us?

ua01682 · November 2004

Interesting scenario. Thoughts anyone?

kyfdx · November 2004

The short answer: No, you can not get out of your lease...

I'm assuming you leased through NMAC and have GAP insurance.. If that is the case, hope that your car gets totaled.. then, you will be out of it.

Assuming it has to be fixed, and you will get it back: Treat it just like you owned it.. make sure it is fixed at a top-notch body shop with new parts... and, you should be fine..

Our '01 Accord was rear-ended to the tune of $9K, when it only had 11K miles. When the lease was up after three years, we just turned it in and walked away. They cannot charge you at lease turn-in, because of body work on the vehicle, assuming it was repaired correctly. Any diminished value will be their problem, not yours.

I know it is disheartening to have a vehicle severely damaged shortly after acquiring it, but be glad you leased it... If you owned it, you could sell it, but you would be out thousands of dollars in diminished value, even if it was fixed perfectly.

regards,
kyfdx
(not the expert)

sungod067 · November 2004

Hi. I am looking to move up from my current car to a SUV. My current car is being paid for from a car loan. The trade in value is $3000 and the amount we still owe is $6000. How would that work if we wanted to lease the new SUV? Can we trade in the car? Would that extra $3000 that we owe just be tacked on to the price of the lease? Or are the loan and lease seperate entities and would we have to essentially take out another loan for $3000 to pay off the car in addition to the lease that we would get for the SUV? Thanks for yor help!!

sebring95 · November 2004

It's possible they could roll the difference over onto the lease. Depends on how much profit the dealer can get on the new one.

They will basically payoff your loan, but will then add that into the lease deal somewhere. I wouldn't recommend it. Not only will you end up paying a lot more than the $3,000 difference, you'll be at the mercy of the dealer which isn't a good thing.

Your absolute best case scenario would be to sell the car for closer to your loan payoff and you'll have to cover the rest out of your pocket. If you have zero cash to work with, I would highly recommend you not get yourself into another car payment.

sergkn · November 2004

Thanks Car_man.

And one more question.
All my conversation with dealership are going through email. Last email when I mentioned that they gave me .00194 MF instead of .00179 they answered they quoted me with security deposit waived and simply made an error.
My question: Is it better insist on base MF or go as-is with security deposit? My thoughts are go with base MF and security. Am I right?

Thank you very much again.

upndwn · November 2004

A friend of mine recently purchased a slightly used A8. He bought a 2003 in Spring 2004 and I think it had about 30,000 miles. He paid $40,000.

He learned that the universe of people who buy high end luxury cars is small. The universe of buyers who would consider used is smaller still. Someone who will spend $60,000 on a vehicle usually is a new car buyer. Hence, there is a buyers' market for vehicles that are still that expensive and used. I presume if you buy one and decide you should have bought the BMW 7, you are going to be hurt selling the A8 after only a year. If a buyer breaches the lease or loan agreement, the bank may be bleeding, too. Either way the buyer of the car used should be smiling.

Long story short, I'd bet you can do better on the selling price.

Others have already said to put as little down as possible on a lease. Perhaps, you can use a third party lease company that will buy the mv at a discounted sales price and lease it to you.

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