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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi hpoohh. I believe that Mercedes-Benz Credit Corp.'s current base lease money factor and residual value for a 39 month, 10,000 miles per lease of the 2005 C230 Sport Sedan should be .00200 and 58%, respectively. I do not believe that Mercedes-Benz is currently providing any sort of dealer cash on the 2005 C-Class.

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  • briegelbriegel Member Posts: 139
    Thanks Car_man! Is the Seattle, Washington area considered the Portland region? And does the $500 cash back apply to a lease also? Just curious!
  • CRJCRJ Member Posts: 15
    Thanks for the info Car_Man.

    I do have one more question for you. Is the residual value figured on the original MSRP or the selling price? The reason I ask is because we went to visit the dealer and he gave us a lease price of $525/month. He was willing to come down to the $35,750 selling price. He showed us his figures and the money factor, residual percentage, and mileage are all the same as yours, but the monthly payment isn't. I used Edmunds lease calculator to study the figures and from what I can tell the dealer must be using the selling price to figure the payment, while you are using the MSRP. Which would be correct?

    Again, thanks for your input.
  • coreys32coreys32 Member Posts: 1
    Carman,

    I want to return a new car that i have not signed lease paperwork on, but have traded my previous vehicle on..Do you foresee any problems being that I signed no binding contracts, if I just want my previous vehicle back?
  • edward68edward68 Member Posts: 4
    Car_Man - Thanks for the help! I've decided to look at the Tribute S only - MSRP $ 26,995.00 - Purchase Price $ 23,846.00) This does not included the $ 1000.00 rebate.

    Can you also working numbers on the Honda CR-V LX (LX - MSRP $ 23,100.00 - Purchase Price $21,995.00)?

    I would like my payment to be under $ 300.00 per month and the lease to be 42 or 48 months. I do not want to put any money down or pay any fees.

    Thanks again! Edward
  • zachjarzachjar Member Posts: 1
    Carman, Can you tell me the current money factor and residual values for 2004 Porsche Cayenne V6 and Cayenne S? For 3 years and 15k miles.

    Also, Does the information change for the 2005 models? 15k and 3 years.
    Thank you.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome, briegel. I believe that Toyota divides the west coast into three regions, the Los Angeles region, the San Francisco region, and the Portland region and that Washington State is in the Portland area. If Toyota is not providing any special lease money factors on the 2005 Corolla in your area then you should be able to use the $500 customer cash on a lease of this car. However, if there is some sort of special lease program in your area that I am not aware of, which is definitely a possibility because the Corolla has supported lease programs on it in a number of other regions, then you probably can not use the $500.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome, CRJ. Vehicles' residual values are based upon a percentage of their full MSRP including the destination charge plus the MSRPs of any options that can be residualized. If you want to calculate this car's lease payment on your own rather than use the calculator, you can learn how to do so by reading the following article that is available on this site: Calculate Your Own Lease Payment.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi coreys32. Most likely, whether or not the dealer that you are working with gives you a hard time in trying to unwind this deal depends upon why you are trying to get out of it. What exactly happened to make you no longer want the car that you agreed to lease (but haven't signed the paperwork on yet)? As you said in your post, if you haven't signed any lease contract yet you may be able to get out of this deal, but if you are just trying to get out of it because you think that you can get this car elsewhere for less money you may find that the dealer that you are working with will really give you a hard time about canceling it, especially if you have put mileage on your new car or truck.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're very welcome, Edward. Let's work up a couple of sample lease payments for you and see what we come up with. According to my calculations, if you were to lease a 2005 Mazda Tribute S 4WD with an MSRP of $26,995 and a selling price of $22,846 through its captive finance company right now for 42 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $273.

    If you were to lease a 2005 Honda CR-V LX 4WD with an MSRP of $23,100 and a selling price of $21,995 through American Honda Finance Corp. right now for 48 months with 12,000 miles per year, its zero down, pre-tax monthly payment should be right around $285.

    At lease signing for both of these leases you would not have to make any sort of down payment, but you will owe these trucks' first month's payment, a security deposit equal to that payment rounded up to the nearest $25 or $50 increment, and a lease acquisition fee of $595 for AHFC and $475 for Mazda (these charges are higher for residents of NY).

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    I sure can, zachjar. If you were to lease a 2005 Porsche Cayenne V6 with an automatic transmission through Porsche Credit this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00210 and 54%, respectively. The money factor for an otherwise identical lease of a 2005 Porsche Cayenne S would be the same, but the residual value would be 57%. The factors would also be the same for leases of the 2004 versions of these trucks, but the residual values would fall to 51% for the '04 Cayenne V6 & 52% for the Cayenne S.

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  • bobp7bobp7 Member Posts: 41
    where i live, ny, my dealer will not lease due to the liability issues; they will only give an equity deal. it is structured like a lease with down pay, monthly payments, option to buy or return at the end. but is there any disadvantage? seems like it is better than a lease since the car is titled in my name and i have equity interest subject to the lender's lien.
    pls tell me if i am missing something.
    thx
    bobp7
  • jim53jim53 Member Posts: 118
    Does Lexus FS allow multple security deposits to buy down the money factor? I did this with BMW and found it to be a great ROI.
  • soccerpwssoccerpws Member Posts: 34
    it is structured like a lease with down pay, monthly payments, option to buy or return at the end. but is there any disadvantage?

    IMHO the most significant disadvantage is having to pay sales tax on the entire price of the car, rather than just on the portion of the car that you are leasing. Also, you must make sure the ballon contract specifies they are obligated to buy the car back from you at the residual price (or you can pay off the ballon).

    Assuming a 24,000 car with a 50% residual on a 36 month term, in a lease you would only pay tax on the lease payment (12,000 + financing portion of that). In a ballon you would pay tax on the full $24,000. Its not twice as much (because of having to pay tax on the financing portion), but your sales tax bill at these financing rates is 60-70% higher with a ballon than a lease.
  • briegelbriegel Member Posts: 139
    Thanks again for your help Car_man!
  • edward68edward68 Member Posts: 4
    Car-Man,

    This information really helped this morning at the dealerships!!

    Is it also possible to let me know the money factor for Honda and Mazda?

    Edward
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello bobp7. Balloon notes are very similar to leases in that they provide consumers with low monthly payments and an option to purchase the vehicle that they have a note on at a pre-determined price at the end of their contract. The main difference between leases and balloon notes is that with leases, the bank's name is on the vehicle's title, while with balloon notes, the driver's name is. Balloon notes have become more popular than leases in the states that vicarious liability lawsuits are allowed in, like New York, because they keep banks' names off of vehicles titles and do not leave them exposed to potential lawsuits. Like with a lease, you really aren't developing any equity if you enter into a balloon note. If you decide that you like the vehicle that you have a balloon note on, you still have to purchase it from the bank that holds your note at a price that was estimated to be its future value. The one advantage that balloon notes have over leases is that I believe that most banks do not charge an acquisition fee on balloon notes like they do on leases. This fee often amounts to $500 to $1,000 dollars. However, this savings is often more than offset by the additional taxes that some states charge on balloon notes. Sales tax rules vary from area to area so this is difficult to generalize about though.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Yes, jim53, Lexus Financial Services does have a multiple security deposit program for leases. This program is available in every state but New York. It allows lessees to make up to a maximum of 9 additional deposits, with each one lowering their vehicle's money factor by .00010.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're very welcome, briegel. Make sure to let me know if you have any other questions.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    I am glad that I was able to help you out, Edward. I already provided you with the details of the Tribute's lease program in an earlier post. AHFC's base lease money factor and residual value for a 4 year, 12,000 miles per lease of a 2005 Honda CR-V LX 4WD should be .00225 and 50%, respectively.

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  • kenneywkenneyw Member Posts: 1
    Dear Car_Man,
    Could you provide the residual factors and rate or money factors for a 36 month, 12k/year lease of the following vehicles: '05 Subaru Legacy 2.5i sedan with AT; '05 Hyundai Sonata LX; and an '05 Pontiac G6 sedan. I assume that I'll be leasing through a manufacturer sponsored program. One more question: If the "acquisition fee" is a fee, why must one pay sales tax on this "fee" if it is prepaid? There's no sales tax on the "documentation fee."
    Thanks for the help
  • cgcolecgcole Member Posts: 6
    Could you please provide me with the residual values and money factors for the 2005 Passat GLX 4Motion Wagon as follows: 36 months with 15K miles per year; 39 months with same annual mileage; and 42 months with same annual mileage.

    Thanks.
  • sudiptasudipta Member Posts: 6
    Thanks for the info. Can you let me know what residual value did you use to compute this lease and what interest rate/money factor?

    Regards

    Sudipta
  • cauthementcauthement Member Posts: 4
    BMW 325i lease with premium package, 3 yrs., 12,000 miles, residual $20,150, total price $33,500, $2,500 down, $434 month including tax, about $3,300 total due at signing. Is this a good deal?
  • edward68edward68 Member Posts: 4
    Car-man,

    Thanks so much for all your help! I am going to close a deal on a Honda CR-V/EX for $ 283.00 a month. $ 1250 out of pocket for first month, fees, etc.

    I was able to save over $ 100 a month with all your help - from my original quotes of $ 385.00. Hopefully all goes well tommorow.

    Edward
  • angela26angela26 Member Posts: 4
    I have a 2004 Lexus IS300 with 15k miles and a 27k buyout option. I am trying to sell this car due to the high car payment & insurance. I have been contacted by a person from a Los Angeles-based company called Automotive Specialist. He says that he has pre-qualified buyers ready to take over my payments of my lease with a 100% payment guarantee. What are the pros & cons of going with a program like this? Can anything come back to me (and my credit) when the lease is up, or is everything transferred into the new leasee's name, and my name is cleared of any responsibility in connection with the Lexus? Help! Thank you very much for your help. I know I can always turn to Edmunds (as I have many times before) when I need advice or help.
  • creshandocreshando Member Posts: 7
    Could you please post the residuals for 24 & 36 month leases (15k/yr) on a 2005 325i sedan? Can I assume that the money factor is the same as you mentioned in previous posts (.00125)?

    Thank you
  • turbotorqueturbotorque Member Posts: 45
    CarMan:

    I hope you can give a quick response to this:

    What is the money factor/residual for the 2004 and 2005 Passat GLS 1.8T models? 36 months, 12k and 15k miles per year.

    Thanks!
  • jsrowejsrowe Member Posts: 9
    I've read some posts regarding 2004 Arc deals (low, low moneyfactor, $4k lease cash) and I'm about to start negotiations on a 2004.

    Someone else pointed out that the lease on these cars is hurt by the low residual (55%/45%/38% on 2/3/4 yr leases) - and they thought the 2005's might be materially higher. Does anyone know what the 2/3/4 yr residuals (and moneyfactors) are on the 05 Arcs?

    Thanks!
  • mdx_fanmdx_fan Member Posts: 2
    Hey Car_man!

    I am looking at leasing a 2005 Acura MDX with the Touring package. I received the following quote from a local dealer with no haggling, no down payment or trade-in:

    MSRP: $40,095
    CAP COST: $37,949
    RESIDUAL: 60% = $24057.00
    MONEY FACTOR: .00220 WITH 0 SEC DEPOSIT
    DUE AT SIGNING: 1ST PAYMENT AND LICENSE $1096.66

    This is what I figured it out to be:

    Depreciation Fee (37949 - 24057)/39 = $356.21
    Finance Fee (37949 + 24057)x .0022 = $136.41
    Total Lease Payment = $492.62 + tax (6.5%) = $524.64

    It seems like a pretty good deal to me, what do you think?

    Thanks!
  • master83master83 Member Posts: 1
    I recently leased a new 04 maxima this past august.. (SE with leather, fully loaded with sun shades NOT a moving moon roof) Dark Blue exterior with black leather interior) leasing a car is very easy and it is sorta like buying one.. do not be nervous.. YES you can haggle the lease price and even the money down.. do not settle... i didnt and i have the lowest lease payment out of anyone i know with the same car...($360/a month).. I am actually looking to transfer my lease to someone due to the fact of a new job i will be starting next month that will put a lot of millage on my car, now i only have 5,000 miles but if i start this job its gonna put mme over... so be careful with the millage... i took 15,000 a year but its not enough for me so unfortunately i must get rid of the car :-( but good luck in your shopping!! mail me with questions you may have!
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Greetings kenneyw. Let's take a look at the lease programs for the vehicles that you are interested in. According to the latest information that I have seen, if you were to lease a 2005 Subaru Legacy 2.5i sedan through its captive finance company right now for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00150 and 48%, respectively. When negotiating your lease on this car, keep in mind that Subaru is providing $1,500 lease cash on it. This money will help you to negotiate an attractive capitalized cost.

    If you were to lease a 2005 Pontiac G6 through General Motors Acceptance Corp. right now for 3 years with 12,000 miles per, its base lease rate and residual value should be 3.5% and 58%, respectively in most of the country. As you can see, GMAC publishes what are known as lease rates rather than money factors for the vehicles that it leases. You can convert its lease rates into approximate money factor equivalents by dividing them by 2400. GM is providing $500 lease cash on this model.

    Lastly we have the 2005 Hyundai Sonata LX. I do not believe that Hyundai is providing any sort of lease support on this car at this time. As a result if you want to lease it you will probably have to do so through an independent bank. If you decide to go this route, you can use the $1,500 customer cash that Hyundai is providing on this car this month to negotiate an attractive capitalized cost.

    Each state has its own rules on what parts of deals are and are not subject to taxation. It is difficult for me to explain the logic behind why your state taxes one of the fees that you mentioned but not the other.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Here is the information that you are looking for, cgcole. If you were to lease a 2005 Volkswagen Passat GLX 4Motion Wagon through Volkswagen Credit this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00106 and 50%, respectively. The numbers for an otherwise identical 39 month lease should be .00106 and 48%. I haven't seen this model's 42 month lease program, but if I had to make an educated guess as to what it was like, I would say that it is .00106 and 46%.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    No problem, Sudipta. AHFC's current 4 year, 15,000 miles per base lease money factor and residual value for the 2005 Honda Odyssey EX-L are .00225 and 53%.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello cauthement. In order for me to give you my opinion of the deal that you were quoted, I really need to know this car's MSRP. I need this number for two reasons. The first is that it is necessary to calculate a lease payment. The second is that without it it is difficult for me to tell what sort of a discount you are being given on this car. I will be more than happy to give you my opinion on this deal if you can provide me with this number.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're very welcome, Edward. You were able to get the dealer down $100 per month over their original payment quote?!? Great job. I am glad that I was able to help you out. Good luck in finalizing your deal.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi angela26. The main problem with having someone take over your lease payments on your car or truck is that with many banks the original lessee is still on the hook, so to speak. That means that in many cases if the person who takes over your lease fails to make their payments that you will have to make them or it will reflect negatively on your credit score. This is a big negative in my book. Furthermore, a number of banks, American Honda Finance Corp. for one comes to mind, do not allow the transfer of payments at all. You need to place a call directly to Lexus Financial Services, or whichever bank that you are leasing your car through, to find out exactly what their policy is on this matter.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Here you go, creshando. If you were to lease a 2005 BMW 325i through BMW Financial Services right now for 2 years with 15,000 miles per, its base lease money factor and residual value should be .00125 and 68%, respectively. The numbers for an otherwise identical 3 year lease of this car should be .00125 and 60%.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Turbotorque, if you were to lease a 2005 Volkswagen Passat GLS 1.8T sedan through Volkswagen Credit this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00003 and 51%. The factor for an otherwise identical lease with 12,000 miles per year should be the same, but the residual value for this term would increase to 53%.

    If you were to lease a 2004 Volkswagen Passat GLS 1.8T sedan through Volkswagen Credit this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00205 and 42%. The 12,000 miles per residual would be 2% higher. As you can see, VW is no longer providing any sort of lease support on 2004 models. This is bad news because the lease program is obviously worse than it is on an equivalent '05 model, but it is good news in that the $2,500 dealer cash that is available on the '04 Passat can be used in conjunction with the unsupported lease program to help you to negotiate a more attractive capitalized cost.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi jsrowe. You're right that Saab's residual values are higher for its 2005 models than they are for its 2004 models at this point. Right now Saab is providing $3,000 lease cash on the '05 9-5 Arc Sedan. Its 2, 3, and 4 year, 15,000 miles per base lease money factors and residual values for this car are currently .00020 / 58%, .00042 / 46%, and .00100 / 37%.

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  • cauthementcauthement Member Posts: 4
    Car_man, the MSRP is $32,295 according to Edumunds. Any insight you can give me is greatly appreciated as I know very little about leasing and how everything is calculated. Thanks!
  • leapfrogleapfrog Member Posts: 4
    Car_man,

    The Honda Odyssey EX-L-RES with a MSRP of $32,410 and a purchase price of $30,303, what would a 36 month lease payment look like with 15000 miles and no-money down?

    What lease money factor would you use and residual value?

    Thanks
  • pherzypherzy Member Posts: 1
    You said in the body of your message '05 9-5 Arc but I thought subject was about '05 9-3 Arc..which one is it and what are the '05 9-3 Linear 12/36/48 residuals for 10K and 12k with money factors...THANKS!!!
  • jim53jim53 Member Posts: 118
    Car Man, the Lexus sales person claims that the .00195 money factor is last months number and that this months's number is .00205. Is it possible to verify this?

    As always, thanks for the help.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey mdx_fan. You certainly have an appropriate user name. The lease program that you were quoted is right in line with American Honda Finance Corp.'s base lease program for this model right now. Furthermore, the selling price that you were able to negotiate looks reasonable as well. However, the payment that you calculated is off. You are underestimating the depreciation portion of this truck's lease payment. It is around $386 per month instead of the $357 per month that you calculated. This increases this model's total zero down, pre-tax lease payment to around $523. For more informaiton on exactly how lease payments are calculated, make sure to check out the following article that is available here at Edmunds.com: Calculate Your Own Lease Payment.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Thanks for the additional information, cauthement. Something does not seem right here though. In your earlier post you stated that this car has a selling price of $33,500 now you are saying that it has a full MSRP of only $32,295. Perhaps one of these figures is not correct, because if they both are then you are being charged way too much for this car and definitely need to shop around.

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  • galant00galant00 Member Posts: 12
    hey carman. i was wondering about the 05 pathfinder nissan has a lease offering 329 for 4x4 12,000 miles a year. they want 1670 down plus 329 for the first month payment no security deposit. edmunds tmv is 2,000 lower than sticker price. so with that 2,000 does than mean i can get the truck for no money down with the first month included. i am going to pay for tax, titles, and all other fees up front out of my own pocket. thanks in advance
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Leapfrog, if you were to lease a 2005 Honda Odyssey EX-L-RES through American Honda Finance Corp. right now for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00250 and 61%, respectively. Using these numbers, an MSRP of $32,410, and a selling price of $30,303 (which is very reasonable BTW considering that the new version of this van was just introduced and it has been very well received by the buying public), I estimate that this model has a zero down, pre-tax monthly lease payment of right around $418.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Sorry about that, pherzy. I replied to the message about the 9-3 but for some reason thought that it was about the 9-5. OK, Saab is currently providing $1,000 lease cash on the 2005 9-3 Arc Sedan. Its base lease money factors and residual values for 24, 36, and 48 month, 15,000 miles per year leases of this car are .00001 / 60%, .00026 / 50%, and .00080 / 41%, respectively. Saab is providing $2,500 lease cash on the 2005 9-3 Linear Sedan. Its base lease money factors and residual values for 24, 36, and 48 month, 15,000 miles per year leases of this car are .00001 / 58%, .00036 / 48%, and .00080 / 40%, respectively. If you were to lease either of these cars with only 10,000 miles per year, its residual values would be 1% higher.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    I suppose that it is possible that Lexus Financial Services recently raised its standard lease money factors, but the last time that I saw it, its standard money factor for consumers with credit scores of higher than 730 was .00195. Its score for consumers with scores from 690 to 729 was .00205. If you qualify for its top tier and are being told that the base money factor is higher than .00195, you can always do some comparison shopping with another dealer or two in your area to see if there was indeed an increase.

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