Recently negotiated a purchase price on a 2005 Audi A4 3.0. MSRP is $39,810, purchase price is $38,250.
I am looking to lease this for either 36 or 39 months, 15k miles per.
Additionally, could you give me the residual #'s and money factor for Infiniti G35 '05 AWD? It is the other option, but haven't received any pricing yet from infiniti (Audi is my first choice, unless the Infiniti prices out much cheaper on a lease deal).
I pulled the trigger on a Mazda 6 last night after reading the "10 step" and playing with the edmunds calculator all weekend after walking out with a leasing info sheet from one dealer on Saturday. I got an '04 Mazda 6 with a MSRP = $27490 sell price ($21450 after $790 below invoice and $3000 cash back on the balloon payment lease plan) $300 down (had to give them something) % Rate = 3.3 (.0013875) 299.89 /Month payment for 48 months includes 6% tax for 12K / year Residual and Balloon payment $10,996 (tax + fees included) I plan on paying the balloon payment and keeping the car.
How did I do ? Car_Man thanks for the links to the leasing info and calc they helped .
Should I be one? I am leasing a 2003, V8 4x4 Tundra Access Cab with TRD package. 18,000 mi, perfect condition. I put $3005 down and have paid $404/mo for 25 mos. The lease company has requested a price of $21,700 to end the lease now. Edmund's says the truck is $22,383 private, $25,174 retail. Bluebook: $24,555. I did a quick search on AutoTrader and average price was $26K, most were 29K with more miles than mine. I love the truck and can now afford to buy cash--should I? I just need a little reassurance or someone to tell me I'm way off track!
And if there is any way anyone can explain to me how they calculated that price, I'd be amazed! ;-)
I am sorry to hear about your unpleasant lease experience, nomoreleasing. There are basically three charges that you may end up having to pay at the end of your lease, a lease-end disposition or termination fee, an excess mileage charge, and an excess wear and tear charge. I believe that SE Toyota Finance charges a disposition fee of $350 on the vehicles that it leases. Since you will be under your vehicle's allowed mileage you will not have to pay any sort of excess mileage charge. That brings us to the excess wear and tear charge. While I do not personally have any experience with turning leased vehicles in to SE Toyota Finance, most major banks are fairly reasonable when evaluating leased vehicles for excess wear and tear. Most banks will provide their lessees with some sort of pamphlet that outlines their excess wear and tear guidelines if you ask for it. You may want to contact the bank that you are leasing your Camry through to see if they can give you a better idea of just what is considered to be excessive wear and tear. By doing so you will be able to get a good idea of whether you may owe a penalty and will have the opportunity to fix any potential chargeable items on your own before your vehicle is inspected.
You're welcome, explorer025. The problem with your calculation is that the bank that you are leasing your Explorer through owns it, not you. Even after you have paid all of your remaining lease payments, you still will not own your truck until you pay Ford Credit its purchase price. The total of its purchase price and your remaining payments will likely be well above your truck's current value on the open market. As a result, rather than getting $3,000 back by breaking your lease you likely will owe thousands of dollars.
I am sorry to hear about your unfortunate situation, rosebud1. As long as your leased vehicle is repaired properly, preferably with OEM parts, you can not be charged for excess wear and tear because of this accident by the bank that you are leasing it through when you turn it in at the end of your lease. This is actually one of the beautiful things about leasing. If you actually owned your Sentra and had it repaired after it was in an accident it would have diminished value compared to a similar car that was never hit. As a lessee, you can avoid this diminished value hit by simply turning in your vehicle at the end of your lease. As long as your car has been fixed properly, the bank will have to absorb the diminished value hit, not you. The fact that your car was in an accident does not allow you to terminate your lease early though.
Hello sungod067. If you owe $3,000 more on your current vehicle than it is currently worth you will have to either pay that money out of your own pocket or roll this negative equity into your next loan or lease to sell your car right now. Most banks will not loan more than a little over a vehicle's full MSRP, so in order to put $3,000 in negative equity into your next loan you would have to purchase or lease a vehicle that has more than a $3,000 difference between its full MSRP and selling price. This should not be a problem in today's competitive market where automakers are providing tons of incentives. Having said this, rolling negative equity into your next loan or lease is not really a good idea because rolling negative equity into your next vehicle will cause you to be even more upside down on your SUV than you were on your car. If I was in this situation and I could not afford to pay the negative equity on this car out of my own pocket, I probably would wait until I was less upside down on it to get something new.
On a side note, consumers are often able to get more for their vehicles by selling them on their own than they are by trading them in. This is especially the case with less expensive vehicles that most dealers would sent to auction rather than selling on their lots. You may be able to reduce your negative equity by selling your car privately.
No problem, sergkn. Banks offer the no security deposit option because many consumers are interested in driving off in their leased car or truck having to pay as little money as possible at lease signing. I personally would rather pay a security deposit that I will eventually get back than have a higher money factor used to calculate my lease payment, causing it to be higher.
Hi gold233790. Audi's October lease program is scheduled to run through today, November 3rd, and Infiniti's October lease program just expired. I have not had an opportunity to see their new November programs yet, but would be more than happy to try to give you an idea of what they are like if you check back with me in a few days. Post a quick reminder for me then and I'll let you know what I have been able to find out for you. Talk to you soon.
It's me again. The MSRP on the 2005 doesn't seem to be that much different from the 2004. Am I to assume that the residual would be higher on the 2005 and therefore alter the payment or am I way off base? In your opinion should I go for the 2004 or should I wait to see what the 2005 numbers look like? Also, I have a 2001 Jetta with 29,000 miles on it that I will be selling/trading. In your opinion should I trade it in against the lease or sell it as a separate transaction? My first instinct is to sell it. KBB says its worth around $10,000 and I only owe $6,000. Thanks again!
Do you have any idea if the money factors on the 2005 Civic (LX or EX) have changed now that we're into November? Anything else changed with the new month? I'm looking at a 24 or 36 month lease. Thanks.
Pay-offs are nothing more or nothing less than the "shadow" or the "echo" of the vehicle, it has nothing to do with the dealer ..
Hi Terry. While that's true, someone upside down on a loan/lease is going to be in a much less favorable bargaining position. There's a reason someone is upside down on a loan and rolling the balance onto another vehicle; they don't have any money! Someone in this situation and shopping for a payment is going to have limited options and the dealer will sniff that out right away. And the sales agreement will be really fun to decipher when it's getting rolled into a lease. This is why you see Camrys leased for 60 payments of $400.
part of the reason the car will be worth less (less of a book value) than the buyout number will be because i will be a good deal over the mileage limit. that is why i don't want to pay a $14,000 buyout amount when the car will probably only be worth $9,000 or $10,0000. the bank won't be able to sell it for the $14,000 buyout number, so won't they be willing to negotiate?
Thanks a lot Car_man. That was my thoughts as well. I was almost ready to agree but they came up with new numbers. "...........I would be able to offer you a 2004 Infiniti FX35 with Touring, Sport and Technology package. A 42/month lease with 12,000/miles a year at a monthly payment of $516 plus tax.
I answered that my numbers then should be around $485 plus tax. Or may be they meant 39/month lease then it should be around $513 plus tax. Any idea why MF went down?
Hi Car_Man, I tried to be very thorough with the information I provided, sorry if it's overkill... Could you please take a look at this lease and tell me your opinion. I live in Northern NJ and the bank is Chase Manhattan Auto. Assuming Tier 1 pricing due to Fico close to 800.
Price: 39242.90 Term: 42 Rate: .00200 MSRP: 43470.00 Residual: .57 (Residual on shorter term was .58 or .60...) No trade in or payoff Millage allowance: 12000 (should be sufficient) No cap cost reduction (as per your usual advice) - inital payment 2621.36 Residual: 25678.50 Monthly payment: 453.00
The price was presented by the salesperson as part of the lease work-up, I have not attempted to negotiate the price yet. As per the Edmunds TMV the price is about $750 over invoice accounting for free versatility package. If anyone has thoughts about the price please post that too.
With your help I was able to get a very good deal for my Dad on his 2005 Rendezvous (and just in time because after 11/1, the incentives were reduced)!
My Mom is looking at the 2005 Mercury Mariner 4WD and I want her to consider a lease as well. I see that Ford has just raised incentive from $1K to $2K on their Red Carpet Lease. She would not get the add'l $500 because this would be a new lease.
The model she's looking at is $28,460 MSRP with an Invoice of $26,764. Edmunds doesn't yet list a TMV price (new vehicle?) but since incentives were raised, I'm assuming I could strike a good deal of $500 or so over invoice.
Can you provide me with sample lease amount for 36mos 36K miles, no money down. I'd like to include the 7.75% county tax (Suburban Cook County, in IL) because I've followed your recommendation of putting NO money into the lease -- and the lease rate or money factor and residual %'s that Ford would be using. This way I can calculate a lease for different option sets.
.. **There's a reason someone is upside down on a loan** ....
Your absolutely right.! .. but it's usually because they didn't put enough money down to even cover half of their taxes, let alone the other $22,000 they financed and most will go LTF (Long Term Financing - 60/66/72 months+) then they want to trade in 28 months and that ain't happening, unless there is some big cash or some big payments .. of course we can always blame the dealer or the alignment with Mars in the latter portion of the equinox or they had a bad childhood, pick your poison .. "excuses always exceed reasons" ...........
"If you're not paying cap reduction, why is your initial payment $2621? Sounds VERY high."
The salesperson broke it down like this: 453.00 first payment 813.86 (NJ tax) 334.50 "motor vehicle fees incld. registration for next 31/2 years) 125.00 title fee 895.00 bank fee (which includes gap insurance)
went through Chase because of the free versatility package and they are currently waiving security deposit.
Does NJ require tax on their leases? Something in the back of my head tells me I didn't pay tax when I leased an Audi in '01 in central NJ....could be wrong, though.
I am planning on getting a Honda CRV for a field service job. I will be driving anywhere from 25k-50k miles per year. I will receive an allowance which will cover the lease payment and insurance. I also get mileage which will cover gas & maint. I only want to drive a vehicle for 3 years Should I buy with a very high payment or lease for 36m 20k miles/yr and stock money away for lease turn-in? I will have more than enough to cover excess mileage charges. Can I get hit with $5000 for excess wear? The MSRP on the vehicle is around $24K
Hi charlie1volley. If you enjoy driving your truck and can purchase it for less money than it is currently worth on the open market, then you may want to consider purchasing it from the bank that you are leasing it through at this time. In addition to the excellent sources that you have already checked to see what your truck is currently worth, you also may want to stop by the following discussion that appears here in the Smart Shopper forum: "Real-World Trade-In Values" . One of our most knowledgeable community members, Terry, hangs out in that section of this site and he is often kind enough to give community members his opinion of their vehicles' current value. Just make sure to post a detailed description of your Tundra, including its trim level, color, miles, options, condition, and your location.
Hi again, kally. Infiniti Financial Services' residual values for the 2005 Infiniti G35 Sedan are currently slightly higher, one percent, than its residual values for the 2004 model. All things being equal, namely selling price and money factor, the higher a vehicle's residual value is, the lower its lease payment will be. All things are not equal with the '05 and '04 versions of this car though. The 2004 currently model has lower money factors and you will probably be able to negotiate a lower selling price on a leftover '04 than you will be able to on an '05 at this time. If I had to make an educated guess, I would say that you will probably be able to lease an '04 G35 AWD for less than you would be able to lease an '05 model for at this time, but you might as well get payment quotes on both to find out for certain.
As far as your current car goes, you are better off selling it on your own or trading it in and having this dealer cut you a check for it rather than using the proceeds from it as a down payment on your lease. 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 G35 would be exactly the same, regardless of whether you had used the proceeds from your trade as a down payment, or had made absolutely no down payment at all.
Hey siemon321. Honda's lease program for the 2005 Civic has changed for the month of November. If you were to lease a 2005 Honda Civic LX Sedan or EX Sedan through American Honda Finance Corp. this month for 2 years with 15,000 miles per, its base lease money factor and residual value should be .00148 and 58%. The numbers for an otherwise identical 3 year lease should be .00148 and 53%.
You're very welcome, sergkn. Infiniti has a brand new November lease program out now so any payments that you worked up based upon its October program may no longer be valid.
Greetings kzybulew. The lease program that this dealer is using to calculate the payment on this XC90 is average, but nothing special. The selling price that you were quoted is reasonable though. Volvo just introduced a new lease program for this model for the month of November. Before pulling the trigger on this offer, you may want to see is Volvo Finance's new program better than the one that your dealer is currently using. I should be able to give you an idea of what it it like if you check back with me in a few days. One thing that I noticed about your deal is that the amount due at lease signing is a little on the high side. Typically consumers who are not making any sort of capitalized cost reduction have to pay their vehicle's first month's payment, a security deposit that is equivalent to that payment rounded up to the nearest $25 or $50 increment, and an acquisition fee of around $500 to $600 at signing. All of this would add up to around $1,500 to $1,600 on your deal. Are you paying any sort of taxes at lease signing? Perhaps this is why your amount due is higher.
just wanted to see if you got a look at the new residual values for Lexus yet...below was my original post:
Looking at a '05 Lexus IS 300 E-shift; Options are Lthr & Alcan Pkg, Htd seats, Spoiler, Skid Control.....Total MSRP is 33645, lets say we can get it for 30100. 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!
I am glad to hear that everything worked out well with your father's Buick Rendezvous lease, desgnconcpts. Even though the customer cash incentive on the 2005 Mercury Mariner was recently enhanced to $2,000, the lease cash on this vehicle is still only $1,000. I am not intimately familiar with what the market for this model is like in your area at this time, but if I had to make an educated guess, I would say that after taking the lease cash into account you should be able to lease one for right around invoice to perhaps $500 or so under. Let's work up a sample lease payment on this vehicle for you and see what we come up with. According to my calculations, if your mother was to lease a 2005 Mercury Mariner Luxury 4WD with an MSRP of $28,460 and a capitalized cost of $26,764 (invoice) through Ford Credit this month for 3 years with 12,000 miles per, her zero down, pre-tax monthly payment should be right around $412. I arrived at this payment using a lease rate of 6.25% and a residual value of 56%.
My fiance is looking at a G35 coupe, leasing for 36 months at 15k miles. The FMV is $32k, the MSRP is $34k. What kind of lease pymt are we looking at? What is the money factor right now and residual?
Yesterday I was quoted $750 below MSRP in Chicago West Suburbs using the Costco discount (which works out to $34,150 plus $570 destination/handling). The dealer quoted me a 42 month lease at $619 and a 39 month lease at $659, both with $2000 down. Dealer said it would take $1000 down, and would raise lease prices about $25 per month. The lease is through Honda and includes 15,000 miles per year.
Looking at other posts, these rates seem high. I haven't seen the worksheet yet, but I was told MF of .0026 and residual of 55% (which I think works out to $19,195). When I plug these numbers into the edmunds lease calculator, the payments are $582 for a 39 month lease. What am I missing?
This is my first time leasing and, despite reading up on it, I am getting confused. Is this dealer trying to rip me off?
Honda CR-Vs, even with high mileage, have a very high resale value.. The residual on a 15K lease may reflect this, but the excess mileage charges you would incur, even if buying the miles upfront would not..
I would advise buying the car on a 3 year loan term... $24K borrowed at 4% for 36 months is about $710/month.. I'd much rather pay that to drive the car for 100K miles, then possibly get $8K-$10K back in resale, than to pay $500/mo. for a 36mo/90K lease, then still get hit with possible mileage and wear/tear penalties..
You could even get the warranty extended to 100K for around $900-$1000.
Really high miles isn't a good situation for leasing, especially since you aren't sure of your mileage needs (25K-50K?).
Even if you pay a little more for the car than the total of your monthly expenses, you will be financially ahead in the long run.
Hi Car_man, Another poster questioned the amount due at lease, the salesperson broke it down like this: The salesperson broke it down like this:
453.00 first payment 813.86 (NJ tax) 334.50 "motor vehicle fees" incld. registration for next 3 1/2 years) 125.00 title fee 895.00 bank fee (which she said includes gap insurance)
I asked why she went through Chase instead of Volvo and she said because of the free versatility package and Chase is currently waiving security deposit. I met with her on Nov. 2nd.
Do you think the bank fee is unfairly high? I've seen you post that the dealer can inflate that # for profit. What would a fair amount of profit be for a dealer on this vehicle in Northern NJ? I'm fine with being fair, I just don't want to be taken advantage of... As per the Edmunds TMV the price is about $750 over invoice accounting for free versatility package, if they're adding another $300 or so to the bank fee that is already $1000 profit, not including holdback or other incentives I don't know about- my impression is that there should be some wiggle room in that figure - what would be reasonable?
Another poster questioned paying tax on the lease in NJ, do you have any knowledge of that?
Yes, NJ taxes leases.. I believe it is 6% on the depreciation portion of the lease, but not sure on the exact specifics..
$895 seems a little high, but independent banks do tend to have higher acquisition fees..
I'm sure Car-man didn't realize you were paying the taxes upfront in your lease.. I won't speak for him... but, that would change my opinion on the upfront costs..
That said (or written), I would see if I could roll some of those fees into the cap cost and pay them over the 36 months, instead of upfront. For sure, you could do that with the acquisition fee and probably the sales tax as well. The less paid upfront on a lease, the better.
Six days ago my wife and I leased a new 350Z. We liked the lease terms: Gross Capital Cost, Residual and payment.
Yesterday they called me and said that the leasing bank did not qualify us. But that they had another lender who did and could we please come back to sign a new lease agreement. I asked if all the terms and numbers were they same - they said yes. So my wife and I show up there tonight and I look over the new lease agreement and start to match up the numbers - they didn't match! The monthly payment was the same but the Gross Capital Cost (the cost of the vehicle) did not match the GCC of the old agreement - it was now $1000 more than the old agreement. And the Residual (what we'd owe) was now $1000 more than the old agreement. They had added $600 for an "aquisition cost" for the new lender and $400 added to the residual was unexplained. I didn't sign it. I still have the car and plan to show my terms to another dealer and see if they can match the old agreement. Anyone have experience/suggestions about this matter?
My mistake. The tax was rolled into the monthly payments on the lease, not paid up front. Which, as you should be able to do, is certainly the wise decision. If you pay the sales tax up front and the car is totalled or stolen, bye bye $. If you roll it in, you simply have the insurance co. pay off the lease (assuming gap, etc.), and walk away.
I think you need to realize the issue here. It is more legal than lease in nature.
THIS IS NOT TO BE CONSTRUED AS LEGAL ADVICE. THIS IS OFFERED ONLY AS PARTICIPATION IN A DISCUSSION BOARD. THE WRITER IS NOT FAMILIAR WITH DETAILS THAT MIGHT EFFECT YOUR RIGHTS, HAS NOT SEEN THE LEASE AGREEMENT YOU EXECUTED AND DOES NOT KNOW WHERE YOU RESIDE AND MAY BE UNFAMILIAR WITH THE LAWS OF THAT LOCATION. YOU SHOULD CONSULT WITH AN ATTORNEY LICENSED TO PRACTICE IN THE JURISDICTION IN WHICH YOU LIVE. RELY ON THE OPINIONS STATED HEREIN ONLY AT YOUR RISK.
If I read the post correctly, you went to a dealer who as agent of a lessor offered you lease terms that were acceptable. You accepted. You made a down payment, which is consideration. You have a valid contract.
Apparently, an assumption was made by the dealer that you would qualify for the program that they quoted and you accepted. This is the dealer's blunder and you do not need to hold them harmless. They seem to have acted outside of their authority as the lessor's agent. If they acted with authority, the lessor cannot make you reform the lease after it was executed by their agent.
The dealer probably has no way to get paid for the product. If a lessor needs to make another $1000 to write the deal it should come from the dealer, who probably was required to have had the lease approved and fully placed with a lender before delivery.
The only exception, I can think of, would occur if there was some explicit language in the sales or lease contract that indicates that the offer is subject to the buyer qualifying for the lease offered. But, an option in that case would be to simply return the car and walk away from the deal. They will make you a better offer if you say you are walking.
I would suppose your walking would cost the dealer money more than doing the deal by paying the additional $1,000 the new lender wants. After a week the car is not really new. How could they market it? If under your state's law it would have to be sold as used, the dealer will surely pay the $1,000 to keep you in your car. Probably the best option for them would be to make the car a demo if the manufacturer would allow it.
a double post 50 minutes apart? how does that happen? just curious.
anyway, i think upndown covered it pretty nicely. Give the original dealer a chance to straighten it out and by no means go lease another one until the current one is straightened out. You may end up with 2 leases. Only if they "unwind" the first deal should you go lease another one.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
That is without tax. There are different ways to handle taxes depending on the state you are in. In some states you pay tax on the entire cost of the car, some states only on the depreciation cost, and some states you pay tax on deprication plus the finance charge. The calculator above assumes the last scenario.
To give you an idea, I just finished leasing an MDX Touring with navi and res (top of the line) for 42 months/15k miles for $565 a month including taxes and 1800 out of pocket. That is with 6 percent tax here in NJ where you don't pay tax on the financing. Residual 56 percent and money factor .0023.
My advice to you, is to figure out your payment with tax, using the .0026 money factor with the corresponding residuals and $500-$1000 over invoice for 36, 39, and 42 months. Remember that money factors and residuals change depending on how many months and miles you are looking for. Usually Honda will offer the best money factor for x amount of months because they want stagger the end of lease terms so they don't get a whole bunch of cars coming back at the same time. In October and November for the MDX, it was .0023 for the 42 month program.
Then simply tell the dealer that is the monthly payment you are looking for and that you will pay everything else out of pocket, and let him play with numbers to match it.
Once you have his best offer, go to another dealer and ask them to beat it. Most times they will, especially if it's close to the end of the month and they have the car in stock.
It's not an easy thing to play one dealer against another if that is not your nature, but it's the best way to get a good deal. It also pales in comparison to the tricks they play on you. If this is your first time leasing, then definetely don't go with the first deal offered. Chances are you will get screwed.
I have a 2002 Nissan pathfinder lease(Nissan Motor Acceptance Sorp.) The residual is somewhere around 16K. I am leaning toward turning the truck into the dealership it came from and just finding myself a car elsewhere that I will own outright freeing myself of car payments. Would the dealership be selling the Pathfinder on their lot after the turn in for straight profit or would they owe the 16K residual to Nissan? I know they are going to try and talk me into a new lease, but I don't want a payment. Plus, if they have to cover the residual they won't want the truck back. Just trying to figure out what I'll be up against. Thanks
My dealer told me not to pay any out of pocket at all and to roll everything into the payment.
His reasoning is that gap insurance will cover the difference in case of total loss.
I know you defintely shouldn't put money down for cap reduction and I guess that can extend to taxes if you live in state where you tax is computed on depreciation and not the monthly payment, but what about the acquisition fee, dealer fees, and deposit????? If you roll them in, wouldn't you have to pay financing on them? I think he was feeding me BS.
Hi, I wanted to know if you could review the lease offer that I was given on a fully loaded 2004 SE AWD Murano (includes Sunroof, Premium Package, and SE Touring Package). I believe MSRP is $35,830.00 and I live on Long Island New York (high taxes 8.5% and $795 aquisition fee).
I was given a price of $424.00/month, 42 month lease, $990.00 down. ---or--- $367.00/month, 42 months lease, $3098.00 down.
I think they want to get rid of the remaining 2004's but I would like to know if this is a good deal or not. THANKS!
I have a quote from a dealer on a 2005 Civic LX, auto, w/o side airbags. Lease is 36 months, 15k mi/yr. I'm hoping you can take a look and let me know what you think:
MSRP: $16,825 Selling price: $15,622.98 Adjusted Cap. Cost: $16,181.62 (includes $595 assignment fee and $36.36 down payment) Cash up front: $571.22 (includes $532.50 "inception fees" - no idea what this means, and $36.36 in down payment, and $2.36 in down payment taxes) Money factor: .00158 Residual value: 53% ($8,917.25)
Total monthly payment is $241.45/mo plus 6.5% tax so grand total $257.14/mo.
How does this deal stack up? Am I missing anything big? Any costs they might try to hit me with that aren't captured here? Any thoughts would be great.
The dealer called back and apologized for the wrong numbers. My wife and I signed a new agreement that added the Gap Insurance cost to the previous Gross Cap Cost - I'm okay with adding Gap Ins. if that's what the lender wants. Also, they managed to reduce my monthly payment another $5/mo. so overall the GAP insurance will only cost me $300.
Comments
Recently negotiated a purchase price on a 2005 Audi A4 3.0. MSRP is $39,810, purchase price is $38,250.
I am looking to lease this for either 36 or 39 months, 15k miles per.
Additionally, could you give me the residual #'s and money factor for Infiniti G35 '05 AWD? It is the other option, but haven't received any pricing yet from infiniti (Audi is my first choice, unless the Infiniti prices out much cheaper on a lease deal).
Thanks.
Pay-offs are nothing more or nothing less than the "shadow" or the "echo" of the vehicle, it has nothing to do with the dealer ..
Terry.
I got an '04 Mazda 6 with a
MSRP = $27490
sell price ($21450 after $790 below invoice and $3000 cash back on the balloon payment lease plan)
$300 down (had to give them something)
% Rate = 3.3 (.0013875)
299.89 /Month payment for 48 months includes 6% tax for 12K / year
Residual and Balloon payment $10,996 (tax + fees included)
I plan on paying the balloon payment and keeping the car.
How did I do ? Car_Man thanks for the links to the leasing info and calc they helped .
I am leasing a 2003, V8 4x4 Tundra Access Cab with TRD package. 18,000 mi, perfect condition. I put $3005 down and have paid $404/mo for 25 mos. The lease company has requested a price of $21,700 to end the lease now. Edmund's says the truck is $22,383 private, $25,174 retail. Bluebook: $24,555. I did a quick search on AutoTrader and average price was $26K, most were 29K with more miles than mine. I love the truck and can now afford to buy cash--should I? I just need a little reassurance or someone to tell me I'm way off track!
And if there is any way anyone can explain to me how they calculated that price, I'd be amazed! ;-)
Thanks for any help! -c
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On a side note, consumers are often able to get more for their vehicles by selling them on their own than they are by trading them in. This is especially the case with less expensive vehicles that most dealers would sent to auction rather than selling on their lots. You may be able to reduce your negative equity by selling your car privately.
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It's me again. The MSRP on the 2005 doesn't seem to be that much different from the 2004. Am I to assume that the residual would be higher on the 2005 and therefore alter the payment or am I way off base? In your opinion should I go for the 2004 or should I wait to see what the 2005 numbers look like? Also, I have a 2001 Jetta with 29,000 miles on it that I will be selling/trading. In your opinion should I trade it in against the lease or sell it as a separate transaction? My first instinct is to sell it. KBB says its worth around $10,000 and I only owe $6,000. Thanks again!
Do you have any idea if the money factors on the 2005 Civic (LX or EX) have changed now that we're into November? Anything else changed with the new month? I'm looking at a 24 or 36 month lease. Thanks.
Hi Terry. While that's true, someone upside down on a loan/lease is going to be in a much less favorable bargaining position. There's a reason someone is upside down on a loan and rolling the balance onto another vehicle; they don't have any money! Someone in this situation and shopping for a payment is going to have limited options and the dealer will sniff that out right away. And the sales agreement will be really fun to decipher when it's getting rolled into a lease. This is why you see Camrys leased for 60 payments of $400.
I was almost ready to agree but they came up with new numbers.
"...........I would be able to offer you a 2004 Infiniti FX35 with Touring, Sport and
Technology package. A 42/month lease with 12,000/miles a year at a monthly
payment of $516 plus tax.
Money Factor .00163
Residual 55% / $25,047.00........."
I answered that my numbers then should be around $485 plus tax. Or may be they meant 39/month lease
then it should be around $513 plus tax.
Any idea why MF went down?
Thanks.
I tried to be very thorough with the information I provided, sorry if it's overkill...
Could you please take a look at this lease and tell me your opinion.
I live in Northern NJ and the bank is Chase Manhattan Auto. Assuming Tier 1 pricing due to Fico close to 800.
2005 XC90 2.5T AWD
Premium Package, Climate Package, Versatility Package, Metallic Paint
Price: 39242.90
Term: 42
Rate: .00200
MSRP: 43470.00
Residual: .57 (Residual on shorter term was .58 or .60...)
No trade in or payoff
Millage allowance: 12000 (should be sufficient)
No cap cost reduction (as per your usual advice) - inital payment 2621.36
Residual: 25678.50
Monthly payment: 453.00
The price was presented by the salesperson as part of the lease work-up, I have not attempted to negotiate the price yet. As per the Edmunds TMV the price is about $750 over invoice accounting for free versatility package. If anyone has thoughts about the price please post that too.
Also, why are you going through Chase? Volvo Financial has better rates. Unless you can't get a free Versatilty package going through Volvo Financial.
Copper
With your help I was able to get a very good deal for my Dad on his 2005 Rendezvous (and just in time because after 11/1, the incentives were reduced)!
My Mom is looking at the 2005 Mercury Mariner 4WD and I want her to consider a lease as well. I see that Ford has just raised incentive from $1K to $2K on their Red Carpet Lease. She would not get the add'l $500 because this would be a new lease.
The model she's looking at is $28,460 MSRP with an Invoice of $26,764. Edmunds doesn't yet list a TMV price (new vehicle?) but since incentives were raised, I'm assuming I could strike a good deal of $500 or so over invoice.
Can you provide me with sample lease amount for 36mos 36K miles, no money down. I'd like to include the 7.75% county tax (Suburban Cook County, in IL) because I've followed your recommendation of putting NO money into the lease -- and the lease rate or money factor and residual %'s that Ford would be using. This way I can calculate a lease for different option sets.
Thank you!
Your absolutely right.! .. but it's usually because they didn't put enough money down to even cover half of their taxes, let alone the other $22,000 they financed and most will go LTF (Long Term Financing - 60/66/72 months+) then they want to trade in 28 months and that ain't happening, unless there is some big cash or some big payments .. of course we can always blame the dealer or the alignment with Mars in the latter portion of the equinox or they had a bad childhood, pick your poison .. "excuses always exceed reasons" ...........
Terry.
The salesperson broke it down like this:
453.00 first payment
813.86 (NJ tax)
334.50 "motor vehicle fees incld. registration for next 31/2 years)
125.00 title fee
895.00 bank fee (which includes gap insurance)
went through Chase because of the free versatility package and they are currently waiving security deposit.
25k-50k miles per year.
I will receive an allowance which will cover the lease payment and insurance. I also get mileage which will cover gas & maint.
I only want to drive a vehicle for 3 years
Should I buy with a very high payment or lease for 36m 20k miles/yr
and stock money away for lease turn-in?
I will have more than enough to cover excess mileage charges. Can I get hit with $5000 for excess wear? The MSRP on the vehicle is around $24K
Car_man
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As far as your current car goes, you are better off selling it on your own or trading it in and having this dealer cut you a check for it rather than using the proceeds from it as a down payment on your lease. 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 G35 would be exactly the same, regardless of whether you had used the proceeds from your trade as a down payment, or had made absolutely no down payment at all.
Car_man
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just wanted to see if you got a look at the new residual values for Lexus yet...below was my original post:
Looking at a '05 Lexus IS 300 E-shift; Options are Lthr & Alcan Pkg, Htd seats, Spoiler, Skid Control.....Total MSRP is 33645, lets say we can get it for 30100. 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!
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Do you have the numbers for the Honda lease program for the 2005 Civic EX for 36 and 38 months with 12,000 miles?
Thanks!
I'm interested in LS430 36-39m 10-12000 miles
Looking at other posts, these rates seem high. I haven't seen the worksheet yet, but I was told MF of .0026 and residual of 55% (which I think works out to $19,195). When I plug these numbers into the edmunds lease calculator, the payments are $582 for a 39 month lease. What am I missing?
This is my first time leasing and, despite reading up on it, I am getting confused. Is this dealer trying to rip me off?
Thanks in advance for any help.
Honda CR-Vs, even with high mileage, have a very high resale value.. The residual on a 15K lease may reflect this, but the excess mileage charges you would incur, even if buying the miles upfront would not..
I would advise buying the car on a 3 year loan term... $24K borrowed at 4% for 36 months is about $710/month.. I'd much rather pay that to drive the car for 100K miles, then possibly get $8K-$10K back in resale, than to pay $500/mo. for a 36mo/90K lease, then still get hit with possible mileage and wear/tear penalties..
You could even get the warranty extended to 100K for around $900-$1000.
Really high miles isn't a good situation for leasing, especially since you aren't sure of your mileage needs (25K-50K?).
Even if you pay a little more for the car than the total of your monthly expenses, you will be financially ahead in the long run.
regards,
kyfdx
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Another poster questioned the amount due at lease, the salesperson broke it down like this:
The salesperson broke it down like this:
453.00 first payment
813.86 (NJ tax)
334.50 "motor vehicle fees" incld. registration for next 3 1/2 years)
125.00 title fee
895.00 bank fee (which she said includes gap insurance)
I asked why she went through Chase instead of Volvo and she said because of the free versatility package and Chase is currently waiving security deposit. I met with her on Nov. 2nd.
Do you think the bank fee is unfairly high? I've seen you post that the dealer can inflate that # for profit. What would a fair amount of profit be for a dealer on this vehicle in Northern NJ? I'm fine with being fair, I just don't want to be taken advantage of... As per the Edmunds TMV the price is about $750 over invoice accounting for free versatility package, if they're adding another $300 or so to the bank fee that is already $1000 profit, not including holdback or other incentives I don't know about- my impression is that there should be some wiggle room in that figure - what would be reasonable?
Another poster questioned paying tax on the lease in NJ, do you have any knowledge of that?
Thanks so much,
kzybulew
Yes, NJ taxes leases.. I believe it is 6% on the depreciation portion of the lease, but not sure on the exact specifics..
$895 seems a little high, but independent banks do tend to have higher acquisition fees..
I'm sure Car-man didn't realize you were paying the taxes upfront in your lease.. I won't speak for him... but, that would change my opinion on the upfront costs..
That said (or written), I would see if I could roll some of those fees into the cap cost and pay them over the 36 months, instead of upfront. For sure, you could do that with the acquisition fee and probably the sales tax as well. The less paid upfront on a lease, the better.
regards,
kyfdx
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Six days ago my wife and I leased a new 350Z. We liked the lease terms: Gross Capital Cost, Residual and payment.
Yesterday they called me and said that the leasing bank did not qualify us. But that they had another lender who did and could we please come back to sign a new lease agreement. I asked if all the terms and numbers were they same - they said yes. So my wife and I show up there tonight and I look over the new lease agreement and start to match up the numbers - they didn't match! The monthly payment was the same but the Gross Capital Cost (the cost of the vehicle) did not match the GCC of the old agreement - it was now $1000 more than the old agreement. And the Residual (what we'd owe) was now $1000 more than the old agreement. They had added $600 for an "aquisition cost" for the new lender and $400 added to the residual was unexplained. I didn't sign it. I still have the car and plan to show my terms to another dealer and see if they can match the old agreement. Anyone have experience/suggestions about this matter?
THIS IS NOT TO BE CONSTRUED AS LEGAL ADVICE. THIS IS OFFERED ONLY AS PARTICIPATION IN A DISCUSSION BOARD. THE WRITER IS NOT FAMILIAR WITH DETAILS THAT MIGHT EFFECT YOUR RIGHTS, HAS NOT SEEN THE LEASE AGREEMENT YOU EXECUTED AND DOES NOT KNOW WHERE YOU RESIDE AND MAY BE UNFAMILIAR WITH THE LAWS OF THAT LOCATION. YOU SHOULD CONSULT WITH AN ATTORNEY LICENSED TO PRACTICE IN THE JURISDICTION IN WHICH YOU LIVE. RELY ON THE OPINIONS STATED HEREIN ONLY AT YOUR RISK.
If I read the post correctly, you went to a dealer who as agent of a lessor offered you lease terms that were acceptable. You accepted. You made a down payment, which is consideration. You have a valid contract.
Apparently, an assumption was made by the dealer that you would qualify for the program that they quoted and you accepted. This is the dealer's blunder and you do not need to hold them harmless. They seem to have acted outside of their authority as the lessor's agent. If they acted with authority, the lessor cannot make you reform the lease after it was executed by their agent.
The dealer probably has no way to get paid for the product. If a lessor needs to make another $1000 to write the deal it should come from the dealer, who probably was required to have had the lease approved and fully placed with a lender before delivery.
The only exception, I can think of, would occur if there was some explicit language in the sales or lease contract that indicates that the offer is subject to the buyer qualifying for the lease offered. But, an option in that case would be to simply return the car and walk away from the deal.
They will make you a better offer if you say you are walking.
I would suppose your walking would cost the dealer money more than doing the deal by paying the additional $1,000 the new lender wants. After a week the car is not really new. How could they market it? If under your state's law it would have to be sold as used, the dealer will surely pay the $1,000 to keep you in your car. Probably the best option for them would be to make the car a demo if the manufacturer would allow it.
Good luck.
anyway, i think upndown covered it pretty nicely. Give the original dealer a chance to straighten it out and by no means go lease another one until the current one is straightened out. You may end up with 2 leases. Only if they "unwind" the first deal should you go lease another one.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
-c
http://www.leaseguide.com/calc.htm
That is without tax. There are different ways to handle taxes depending on the state you are in. In some states you pay tax on the entire cost of the car, some states only on the depreciation cost, and some states you pay tax on deprication plus the finance charge. The calculator above assumes the last scenario.
To give you an idea, I just finished leasing an MDX Touring with navi and res (top of the line) for 42 months/15k miles for $565 a month including taxes and 1800 out of pocket. That is with 6 percent tax here in NJ where you don't pay tax on the financing. Residual 56 percent and money factor .0023.
My advice to you, is to figure out your payment with tax, using the .0026 money factor with the corresponding residuals and $500-$1000 over invoice for 36, 39, and 42 months. Remember that money factors and residuals change depending on how many months and miles you are looking for. Usually Honda will offer the best money factor for x amount of months because they want stagger the end of lease terms so they don't get a whole bunch of cars coming back at the same time. In October and November for the MDX, it was .0023 for the 42 month program.
Then simply tell the dealer that is the monthly payment you are looking for and that you will pay everything else out of pocket, and let him play with numbers to match it.
Once you have his best offer, go to another dealer and ask them to beat it. Most times they will, especially if it's close to the end of the month and they have the car in stock.
It's not an easy thing to play one dealer against another if that is not your nature, but it's the best way to get a good deal. It also pales in comparison to the tricks they play on you. If this is your first time leasing, then definetely don't go with the first deal offered. Chances are you will get screwed.
His reasoning is that gap insurance will cover the difference in case of total loss.
I know you defintely shouldn't put money down for cap reduction and I guess that can extend to taxes if you live in state where you tax is computed on depreciation and not the monthly payment, but what about the acquisition fee, dealer fees, and deposit????? If you roll them in, wouldn't you have to pay financing on them? I think he was feeding me BS.
I wanted to know if you could review the lease offer that I was given on a fully loaded 2004 SE AWD Murano (includes Sunroof, Premium Package, and SE Touring Package). I believe MSRP is $35,830.00 and I live on Long Island New York (high taxes 8.5% and $795 aquisition fee).
I was given a price of $424.00/month, 42 month lease, $990.00 down.
---or---
$367.00/month, 42 months lease, $3098.00 down.
I think they want to get rid of the remaining 2004's but I would like to know if this is a good deal or not. THANKS!
I have a quote from a dealer on a 2005 Civic LX, auto, w/o side airbags. Lease is 36 months, 15k mi/yr. I'm hoping you can take a look and let me know what you think:
MSRP: $16,825
Selling price: $15,622.98
Adjusted Cap. Cost: $16,181.62 (includes $595 assignment fee and $36.36 down payment)
Cash up front: $571.22 (includes $532.50 "inception fees" - no idea what this means, and $36.36 in down payment, and $2.36 in down payment taxes)
Money factor: .00158
Residual value: 53% ($8,917.25)
Total monthly payment is $241.45/mo plus 6.5% tax so grand total $257.14/mo.
How does this deal stack up? Am I missing anything big? Any costs they might try to hit me with that aren't captured here? Any thoughts would be great.
Thanks.
The dealer called back and apologized for the wrong numbers. My wife and I signed a new agreement that added the Gap Insurance cost to the previous Gross Cap Cost - I'm okay with adding Gap Ins. if that's what the lender wants. Also, they managed to reduce my monthly payment another $5/mo. so overall the GAP insurance will only cost me $300.