Car_man, Could you please give me the residual and money factor for the 2005 Pathfinder LE w/Nav & DVD? I will be looking for 36 months and 12,000 or 15,000 miles/year. Thanks.
Car_man, I am looking into leasing a 2004 G35 Coupe that has an MSRP of $36,690.00 and a selling price of $33,350.00 for 36 months with either 12k or 15K mile allowance per year. Could you kindly post the estimated payment including money factor and residual values?
Just wondering what your impression of the following lease is: Honda Pilot LX, 42 month closed end lease, $0. down. $315. per month, includes MA. sales tax. Out of door costs: $805., includes 1st month payment, security deposit, tags. Thanks in advance for your help.
I live in the Los Angeles area and am considering two leases right now. One is with Audi on the S4 due to the great money factor currently. The other interest is with a 2005 G35 sedan. I know the MF for Audi is .00055 but i am unsure about Infiniti. I have had dealers quote me anywhere between .0023 and .0029.
Please let me know what you think of the deals: 2005 S4 tiptronic/infotainment package MSRP of just under $52,000. They have offered a lease of 42mo/12k for 590/mo with a total drive off of $2500.
2005 G35 tiptronic/premium/sport suspension MSRP about $35,700. They have presented me with 36mo/15k lease for 580/mo and 2000 drive off, which i think is way too high for this level of car. Any thoughts are GREATLY appreciated.
lycanthris, Given your requirements, I just ran using CAR_man's numbers on a 2005 G35 coupe - .00215 (5.16%) money factor and 60% residual value on a 3 year 15K miles - your pre tax payment with NO money down should be $524.09 assuming your purchase price is MSRP. If you can negotiate for a lower price, your payment will obviously go down.
Can you please provide me with some information? Looking at a Saab 9-5 Aero or Arc, I can calculate the lease, but I need some information, apparently Saab released some new incentives.
I need: 36 and 48 month residuals and MF Saab incentive Acq cost with Saab
Hi, I'm new at this leasing thing but from what I see here, a low money factor is preferred. Am about to get an ordered Mercedes and I got lease quote from MB with a money factor of 0.00395 (!!?!) with a 64% residual. Does that sound right?
I'm also doing an online lease app and they are offering 0.00205 money factor before looking into my credit rating. According to Benz I'm a tier 2 credit rating. Any help in this matter is appreciated
calchris, Multiply the money factor with 2400 to arrive at your interest rate for the lease period - (.00395 * 2400) = 9.48% - do you think that reasonable?
Thanks for the formula Ashwen - looked it up after I posted. I wonder what they were thinking? "Let's take advantage of the lease newbie who's hot to get the new car ..." sheesh!
Car_Man, I would really appreciate your help in understanding the following lease quote from the dealer. By the way, the finance guy thought it was "so unusual" that I wanted to know the money factor and residual value! Thanks for educating me!
The agreed-to selling price is: $36,100
The dealer has added the following: $642 "Inception Fee"
$595.00 "Assignment Fee"
The money factor is: .001870 and the residual value is 58%.
My question is what is the Inception Fee and Assignment Fee and are these valid fees? Also it is strange because the dealer did not add any taxes to my price and the loan payment he quotes is only a few dollars more than the one I get when I use the Edmunds lease calculator. Is there something I'm missing or need to renegotiate with this lease? Thank you so much!
Hi Car_man - here is the lease info from the Volvo salesman (third party lease program)- what do you think of this?
Volvo S60R
MSRP: $44,075 CAP COST: $38,189 (Selling price - $4,000 incentive for third party lease)
RES ADDS: 105 (What is this?) ACQ FEE: $895 (Does anyone charge this high a fee?) No security deposit
LIC FEE: 305 MISC LIC: 9.00 Tire FEE: 5.00
He added the Doc Fee of $45 and the Acquisition Fee of $895 to get an adjusted cap cost of: $39,129
Adj residual: $22,090 Total Depreciation: $17,039
I think he misunderstood what I was asking for - I assume I do not want the acquisition fee and doc fee to be included in the cap cost. I can also ask if the money factor would be lower with a security deposit.
I negotiated a deal for a 2005 Odyssey EXL no NAV, no RES for $28855, MSRP 30810. Now I need to discuss financing for a lease. Can you advise what is the current 1. Residual value for (a) 12,000 x 36 mths (b) 15,000 x 36 mths 2. Money factor thx. I have never leased before and am still trying to grasp the intricacies of a lease so your forum has been most helpful.
Hi Lawrence. You certainly picked two very nice, recently redesigned cars. Unfortunately, the demand for both of them is such that their manufacturers are not providing any sort of support on them yet. This fact, combined with their new higher prices make both of them very expensive to lease. At least Audi finally caved in after weeks of dealer complaints that the residual values for the '05 A6 were too low and raised them a little bit.
According to the latest informaiton that I have seen, if you were to lease a 2005 Acura RL through American Honda Finance Corp. right now for 36 months with 15,000 miles per year, its base lease money factor and residual value should be .00235 and 56%. the numbers for an otherwise identical 39 month lease of this car should be .00235 and 53% and I believe that the numbers for a 42 month lease should be .00210 and 50%.
If you were to lease a 2005 Audi A6 3.2 through Audi Financial Services right now for 36 months with 15,000 miles per year, its base lease money factor and residual value should be .00140 and 55%, respectively. The numbers for an otherwise identical 39 month lease of this car should be .00140 and 49%. I have not seen this car's 42 month lease program.
If you were to lease either of these cars with more than 15,000 miles per year, you will have to purchase additional miles on a per-mile basis. It is less expensive to do so at lease signing than it is to pay an excess mileage penalty at lease-end.
You never specifically asked for sample lease payments for these cars, but I would be happy to work them up for you if you are interested. Just let me know.
Welcome to the wonderful world of leasing, motwani. Edmunds.com has a couple of articles that are must reads for consumers who have never leased before. Here are links to them: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment. You definitely should check them out prior to negotiating with any dealers.
One thing that hits me right off the bat about the deal that you were quoted is the $2,000 down payment. 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 TL would be exactly the same, regardless of whether you had put $2,000 down, or had made absolutely no down payment at all.
Also, you never mentioned the selling price of the car that you are interested in leasing. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the car that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to work up a sample lease payment on the car that you are interested in for you if you let me know what its selling price is.
You're welcome, brodway. Thanks for the additional information. Let's work up a sample lease payment on the vehicle that you are interested in and compare it to the payment that you were quoted. According to my calculations, if you were to lease a 2004 Infiniti G35 AWD with an MSRP of $35,890 and a selling price of $30,975 through Infiniti Financial Services right now for 42 months with 15,000 miles per year, your zero down, pre-tax monthly lease payment should be around $350. This is a little less than the payment that you were quoted, but if the one that you were given includes tax that would make up for a lot of the difference.
Greetings xplrer2. Vehicles' residual values are always based upon a percentage of their full MSRPs including destination charges plus the MSRPs of any options that can be residualized. If you were to negotiate a lower selling price for the vehicle that you are interested in leasing, which you can and definitely should do, your vehicles' reduced price will lower its monthly payment. However, the lower selling price that you negotiate will have absolutely no impact upon the purchase price of your vehicle at the end of your lease. At that time you will have the option to purchase your car from the bank that you are leasing it through at its residual value price. If this price is higher than what you could realistically expect to pay for it on the open market, you would be better off just turning it in and walking away from it.
While they are annoying, lease acquisition fees are indeed legitimate charges. They are levied by the bank that you are leasing your vehicle through and individual dealers do not have any authority to waive them. You should always know that the base acquisition fee for the bank that you are leasing through is though because dealers often have the authority to pad acquisition fees to add additional profit to deals. BMW Financial Services' base lease acquisition fee is currently $525 in every state but New York, but it supposedly is going to increase by $100 to $625 at the beginning of 2005. In New York, BMW's lease acquisition fee is higher at $800, soon to be $900, because of the extra liability that is associated with the vicarious liability laws that exit there. Since this is the only state in which BMW FS' acquisition fee is different it has to publish separate advertised lease payments for residents of NY.
Let's work up a sample lease payment on this truck for you, joeyproulx, and see what we come up with. According to my calculations, if you were to lease a 2005 Honda Pilot EX with leather, no DVD/Navi with an MSRP of $32,635 and a selling price of $29,409 through American Honda Finance Corp. this month for 3 years with 12,000 miles per, its zero down, pre-tax monthly lease payment should be right around $312.
You're welcome again, Lee. Yes, BMW's special lease money factors are usually available for leases of up to 42 months in length. If you were to lease a 2005 330Ci through BMW FS right now for 42 months with 15,000 miles per year, its base lease money factor and residual value should be .00080 and 52%, respectively.
It is difficult to predict what manufacturers will do with their future incentives programs. If I was in the market for this car I probably would pull the trigger some time before the end of the year, perhaps a little later in the month. Many dealerships are empty during this time of the year because all of their potential customers are busy holiday shopping and putting up decorations instead of buying new vehicles. As a result, I would not be surprised if you were able to negotiate a fairly attractive deal at this time. Furthermore, I expect BMW Financial Services' residual values for model models to drop in January. In order to keep its lease payments from increasing, BMw will have to increase its lease support. There is a chance that BMW will increase its support, but whether it is by enough to offset the drop in residuals is difficult to say.
Hey car_man...thanks tor the Saab lease info. I have another question....I know your feeling on lease down payments, but what about taxes?? Do you see any advantage of paying them up front as opposed to adding them into the monthly payment? Is the tax spread out evenly or is there "fuzzy math" involved?
Welcome to the wonderful world of leasing, cubanjes13. Edmunds.com has a couple of articles that are must reads for consumers who have never leased before. Here are links to them: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment. You definitely should check them out prior to negotiating with any dealers.
One thing that hits me right off the bat about the deal that you were quoted is the fact that you are using the proceeds from your trade-in as a down payment. 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 TL would be exactly the same, regardless of whether you had put all of the money that you get for your trade down, or had made absolutely no down payment at all. If you really don't want to deal with the hassle of selling your current vehicle privately, you can still trade it in, just make sure to have the dealership that you are working with cur you a check for it rather than using the proceeds as a capitalized cost reduction for your lease.
Also, you never mentioned the selling price or MSRP of the car that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the car that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price and MSRP of a vehicle that they want to lease is that they are necessary to calculate its lease payment. I would be more than happy to work up a sample lease payment on the car that you are interested in for you if you let me know what these numbers are.
Hi Ken. Lexus does not change its vehicles' residual values for its "December to Remember" sales event. Instead it provides lower than normal lease money factors on most of its models. It is difficult to say why this truck's residual values are lower now than they were several years ago but this is probably because the RX 330 is an older design now. Vehicles generally have their highest residual values at the beginning of their product cycle, meaning just after they are initially introduced or go through a major redesign. The RX 330 is probably just experiencing the natural drop in residual values that most products experience as they get older.
You're very welcome, Jeff. Here is the information that you are looking for. There is no 2005 Chrysler 300M, so I suspect that you are referring to the 2005 Chrysler 300. This car's exact lease program varies by trim level. For now I will assume that you are interested in the base model. If you want a different version of this car, let me know and I will provide you with the details of its program. If you were to lease a base 2005 Chrysler 300 through Chrysler Financial right now for 2 years with 15,000 miles per, its base lease money factor and residual value should be .00056 and 54%, respectively. The numbers for an otherwise identical 3 year lease of this car should be .00204 and 48%. If you were to lease it with only 12,000 miles per year, its residual values would increase to 55% for 2 years and 50% for 3 years. When negotiating your lease of this car, keep in mind that DaimlerChrysler is providing a $1,000 bonus for 2005 300 models that are financed or leased through Chrysler Financial. This money will help you to negotiate an attractive capitalized cost.
Here you go, chubby4. If you were to lease a 2005 BMW 325Ci through BMW Financial Services right now for 36 months with 15,000 miles per year, its base lease money factor and residual value should be .00100 and 58%, respectively.
Hi markm124. You certainly want your Pathfinder loaded up with toys, huh . If you were to lease a 2005 Nissan Pathfinder LE 4WD w/Nav & DVD through Nissan Motor Acceptance Corp. right now for 36 months with 15,000 miles/year, its base lease money factor and residual value should be .00214 and 57%, respectively. The residual value for an otherwise identical lease with only 12,000 miles per year would increase to 58%. Having said this, you would be much better off leasing this truck for 39 months instead of for 36 because its 39 month program is more attractive. Its 39 month / 15k numbers are .00170 and 57%, with the 12k residual value increasing to 58%.
Hello ashwen. Let's work up a sample lease payment on this car for you and see what we come up with. According to my calculations, if you were to lease a 2004 Infiniti G35 Coupe with an MSRP of $36,690 and a selling price of $33,350 through Infiniti Financial Services right now for 3 years with 15,000 miles per, its zero down, pre-tax monthly payment should be right around $472. If you were to lease this car with only 12,000 miles per year, its payment would drop to around $463. Just in case you are interested, its 39 month payments, which will be slightly lower, are around $453 for 15,000 miles per year and $445 with 12,000 miles per. If you are not completely married to the idea of leasing this car, you may want to consider taking advantage of the first special financing rates that Infiniti ever has offered on it. Late last month it began offering 1.9% financing for up to 3 years and 2.9% for 4 and 5 years on the 2004 G35 Coupe to help dealers unload their remaining models.
Car_Man, thanks for your help on the Cayenne #'s - I've determined it's outside what I'm willing to pay (for now).
I've decided I'll likely lease a Lexus RX330 (to replace my RX300) and have started getting quotes from a local dealer. I created a spreadsheet where I plug in #'s and it provides the payment and detail. My sample numbers match exactly with those output by various calculators on the 'Net. However, I'm having difficulty getting my payment calculation to come anywhere near what the dealer is offering.
Few questions:
Residual: The dealer claims the residual on a 36 month/12k miles lease of Lexus RX330 + PM package is 58%. I believe you posted a few days ago that the residual for this truck should be 59% - any ideas on the discrepancy?
Money Factor: The dealer initially offered a MF of .00245, which he's dropped first to .00215 and now .00195. All of these are higher than the .00165 you've previously posted. Btw, my credit score is ~780, so should qualify for the best terms. Is the dealer playing games on the MF?
Fees: What fees should be included in the Cap Cost and then be Residualized? I assumed it was the Destination Charge, and perhaps a fee for Advertising. But he's trying to say that the Doc Fee ($349) and License ($62) (and perhaps others yet to be named) must be in the payment calc, even if I pay for them out of pocket up front.
Lastly, they offered to sell me the RX330 + PM for $36,500, which is $1236 over invoice. I'll attempt to negotiate lower, but am wondering what holdback, if any, should I assume they're getting in support of the vehicle?
Thanks Car_Man. I was quoted (supposedly with the sale price at invoice) at $340/month for exactly what you stated. 05 EX-L (no dvd/nav), 3 year, 36k mile, only first payment down. Mind telling me what residual and money factor you used to arrive at $312/month?
Just as a point of reference, I just finalized this deal on an S80 -- the details are as follows
2005 Volvo S80 2.5T FWD Black Sapphire Exterior Paint Interior-beige leather Options: Premium Package, Climate Package, Sport Package, Convenience Package, Volvo Navigation System
The MSRP on this vehicle is $44,020 The Selling Price is $42,300 The residual for a 36 month lease with 12,000 miles per year is 55% The money factor is .00050 With 2500,00 down payment the monthly payment including State use tax is $513.77 The total due at lease signing would be $3,688.77
All numbers were based on approved credit through Volvo Car Finance.
Hmm... the numbers that I saw at the Acura dealer the other day for the RL were:
(All with $0 capital cost reduction and tax and tags paid up front)
36mo - came out to around $1000 per month, but I don't recall the mf that was used and if it included some negative equity that I later asked to have taken out of the calculations. The residual was 56%.
42mo,.00255mf,51% residual,17k miles = $797 per month (taxes paid up front)
48mo,.00255mf,47% residual,17k miles (I know I didn't ask you for this term) = $759 per month (taxes paid up front)
Could they be bumping the mf up above what Honda is really charging? BTW, they were charging $.10 a mile to go above 15k.
Regarding the calculations that I didn't ask for, should I trust the lease formulas and calculator on the leaseguide.com website? If not, would you mind running the A6 and RL numbers at MSRP for 36/42/48? I hope it's not asking too much.
From what I've seen it looks like the A6 will be the slightly cheaper alternative considering their lease terms and free maintenance for 4/50k...
Also, maybe I missed it, but I'm also interested in your answer to the question that was posted about paying taxes up front vs. rolling them into the lease payments.
Car_Man, Reading through the back posts, I see bits and pieces of information for these vehicles, but not the exact info I'm looking for. I need the 36 and 42 month (15,000 miles a year) December lease numbers (money factor and residual) for the following vehicles. Thanks.
2005 Honda Pilot EXL/RES (Entertainment System) 2005 Volvo XC90 T6
I noticed one dealer still has some 2004 M3 convertibles left over. I am in Southern California, but they say convertible season is over. You previously supplied M3 lease rates on M3's - any chance there is a special program for the left over 2004 M3 convertibles?
Thanks CAR_MAN for the numbers. I actually did buy the car at 2.9% but the monthly payments are a little too high for my "comfort" and hence have been looking into the leasing option. From your numbers I can walk out with a lease payment of ~$515 (including tax + acquisition + doc fee). That's atleast $150 lower than my payment and also the lower residual value puts me only $1000 off at the end of 39 months compared to buying.
From your earlier posts, you mentioned that one can try to negotiate (lower) the Lease-end Buying price with Infiniti. If I can lower it by $1000, I would break-even compared to buying with out the risk of "an over-depreciating vehicle" - not that it is likely given that G35 coupe currently has the best overall resale value in its category.
Surprise, surprise. I just calculated my lease deal on the '04 Sequoia SR5 4X4 and found that the dealer is padding the deal with some creative accounting to the tune of $2300 extra profit above the $500 profit he is making. I can't wait until someone from the F & I dept. calls me back..............it's been an hour and I'm still waiting patiently for now....................
You're welcome, rnpaul. Yes Lexus has different lease programs on IS 300 models with automatic transmissions and those that are equipped with manual transmissions. If you were to lease a 2005 Lexus IS 300 with a manual transmission through LFS right now for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00126 and 53%, respectively. The numbers for an otherwise identical 4 year lease should be .00132 and 44%.
Car_Man, Could u please confirm the numbers on a 2004 G35 Coupe? From the numbers you gave me, I calculated the money factor to be .00215 and residual vlaue of 55% for a 39 month lease with 15K/year. Is this right?
Hi lycanthris. You never mentioned the selling prices of the cars that you are interested in leasing. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the car that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs to know the selling price of a vehicle that they want to lease is that it is necessary to calculate a lease payment on it. I would be more than happy to work up sample lease payments on the cars that you are interested in that you can compare to the quotes that you have already been given if you let me know what their selling prices are.
Hello Matt. Here is the information that you are looking for. If you were to lease a 2005 Saab 9-5 Arc Sedan through Saab Financial Services Corp. right now for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00042 and 46%, respectively. The numbers for a 4 year lease of this car should be .00100 and 37%.
If you were to lease a 2005 Saab 9-5 Aero Sedan through SFSC for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00050 and 45%, respectively. The numbers for an otherwise identical 4 year lease should be .00100 and 36%.
Saab Financial Services Corp.'s lease acquisition fee is currently $595 in most states.
When negotiating your lease on either of these cars, keep in mind that Saab is providing $3,000 dealer cash on leases of them that will help you to negotiate an attractive selling price.
Hi calchris. A lease money factor of .00395 is a little on the high side. It is equivalent to an interest rate of almost 9.5%. Mercedes-Benz Credit Corp.'s base lease money factor for unsupported vehicles is .00310 for consumers with good credit, not necessarily ones that qualify for its best credit tier. I don't think that its standard money factor for tier 2 customers would be higher than .00350 to .00360. What model are you considering leasing? If you let me know I should be able to give you an idea of what its lease program is currently like.
Car_Man: Thank you for your response earlier! Here's the selling price for acura tl '05 w/ navi : Here is exactly what i was quoted : $34,697 + tax, tag, $499.50 dealer fee $2000 down (inlc !st mo payment) 42mo/12k miles lease $499+tax
I know you said to avoid paying the down payment, but what else can I negitiate??? This was the dealer first offer. I would appreciate the advice! Thanks!
I apologize if this has already been covered, but I'm considering a SmartBuy from GM instead of a lease. (Pontiac G6)
I plan on returning the car at the end of the term. I will NOT buy it. SmartBuy comes out with a lower monthly payment than a Lease. However, if I return the car at the end, what's the difference (in terms of dollars and cents) between SmartBuy and a lease?
Comments
Could you please give me the residual and money factor for the 2005 Pathfinder LE w/Nav & DVD? I will be looking for 36 months and 12,000 or 15,000 miles/year. Thanks.
I am looking into leasing a 2004 G35 Coupe that has an MSRP of $36,690.00 and a selling price of $33,350.00 for 36 months with either 12k or 15K mile allowance per year. Could you kindly post the estimated payment including money factor and residual values?
TIA
Honda Pilot LX, 42 month closed end lease, $0. down. $315. per month, includes MA. sales tax. Out of door costs: $805., includes 1st month payment, security deposit, tags.
Thanks in advance for your help.
Please let me know what you think of the deals:
2005 S4 tiptronic/infotainment package MSRP of just under $52,000. They have offered a lease of 42mo/12k for 590/mo with a total drive off of $2500.
2005 G35 tiptronic/premium/sport suspension MSRP about $35,700. They have presented me with 36mo/15k lease for 580/mo and 2000 drive off, which i think is way too high for this level of car.
Any thoughts are GREATLY appreciated.
Given your requirements, I just ran using CAR_man's numbers on a 2005 G35 coupe - .00215 (5.16%) money factor and 60% residual value on a 3 year 15K miles - your pre tax payment with NO money down should be $524.09 assuming your purchase price is MSRP. If you can negotiate for a lower price, your payment will obviously go down.
Can you please provide me with some information?
Looking at a Saab 9-5 Aero or Arc, I can calculate the lease, but I need some information, apparently Saab released some new incentives.
I need:
36 and 48 month residuals and MF
Saab incentive
Acq cost with Saab
Thank you very much for your invaluable help.
-Matt
I'm also doing an online lease app and they are offering 0.00205 money factor before looking into my credit rating. According to Benz I'm a tier 2 credit rating. Any help in this matter is appreciated
MSRP: 55,790
39 month lease/12,000 miles
in California
standard stuff i guess
Multiply the money factor with 2400 to arrive at your interest rate for the lease period - (.00395 * 2400) = 9.48% - do you think that reasonable?
Thanks for the formula Ashwen - looked it up after I posted. I wonder what they were thinking? "Let's take advantage of the lease newbie who's hot to get the new car ..." sheesh!
Or is that the new December lease program of MB?
I got these quotes from Peter's Honda in Nashua, NH today. Going down to get them in writing and maybe work out a deal Wednesday.
3 year, 36k mile, only first payment out the door.
05 EX cloth - $306/mo
05 EX leather - $340/mo
05 EX leather/dvd - $358/mo
05 EX leather/navi - $371
The woman said they were leasing at invoice. *shrug*
The agreed-to selling price is: $36,100
The dealer has added the following: $642 "Inception Fee"
$595.00 "Assignment Fee"
The money factor is: .001870 and the residual value is 58%.
My question is what is the Inception Fee and Assignment Fee and are these valid fees? Also it is strange because the dealer did not add any taxes to my price and the loan payment he quotes is only a few dollars more than the one I get when I use the Edmunds lease calculator. Is there something I'm missing or need to renegotiate with this lease? Thank you so much!
Volvo S60R
MSRP: $44,075
CAP COST: $38,189 (Selling price - $4,000 incentive for third party lease)
RES ADDS: 105 (What is this?)
ACQ FEE: $895 (Does anyone charge this high a fee?)
No security deposit
LIC FEE: 305
MISC LIC: 9.00
Tire FEE: 5.00
He added the Doc Fee of $45 and the Acquisition Fee of $895 to get an adjusted cap cost of:
$39,129
Adj residual: $22,090
Total Depreciation: $17,039
I think he misunderstood what I was asking for - I assume I do not want the acquisition fee and doc fee to be included in the cap cost. I can also ask if the money factor would be lower with a security deposit.
Money Factor: .00190
Monthly Depreciation: 405.69
Mo lease chg: 116.32
7.75% tax: 40.46
Total Monthly Paymt: 562.47
42 mos/15k miles/yr
Cash due at signing: 900.47
18 cents/mile over 15k mi/yr
Thanks,
Lee
december numbers for Volvo Finances MF's on an 2.5T s60 FWD for 36 month 12k thanks
Can you advise what is the current
1. Residual value for
(a) 12,000 x 36 mths
(b) 15,000 x 36 mths
2. Money factor
thx. I have never leased before and am still trying to grasp the intricacies of a lease so your forum has been most helpful.
According to the latest informaiton that I have seen, if you were to lease a 2005 Acura RL through American Honda Finance Corp. right now for 36 months with 15,000 miles per year, its base lease money factor and residual value should be .00235 and 56%. the numbers for an otherwise identical 39 month lease of this car should be .00235 and 53% and I believe that the numbers for a 42 month lease should be .00210 and 50%.
If you were to lease a 2005 Audi A6 3.2 through Audi Financial Services right now for 36 months with 15,000 miles per year, its base lease money factor and residual value should be .00140 and 55%, respectively. The numbers for an otherwise identical 39 month lease of this car should be .00140 and 49%. I have not seen this car's 42 month lease program.
If you were to lease either of these cars with more than 15,000 miles per year, you will have to purchase additional miles on a per-mile basis. It is less expensive to do so at lease signing than it is to pay an excess mileage penalty at lease-end.
You never specifically asked for sample lease payments for these cars, but I would be happy to work them up for you if you are interested. Just let me know.
Car_man
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One thing that hits me right off the bat about the deal that you were quoted is the $2,000 down payment. 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 TL would be exactly the same, regardless of whether you had put $2,000 down, or had made absolutely no down payment at all.
Also, you never mentioned the selling price of the car that you are interested in leasing. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the car that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to work up a sample lease payment on the car that you are interested in for you if you let me know what its selling price is.
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While they are annoying, lease acquisition fees are indeed legitimate charges. They are levied by the bank that you are leasing your vehicle through and individual dealers do not have any authority to waive them. You should always know that the base acquisition fee for the bank that you are leasing through is though because dealers often have the authority to pad acquisition fees to add additional profit to deals. BMW Financial Services' base lease acquisition fee is currently $525 in every state but New York, but it supposedly is going to increase by $100 to $625 at the beginning of 2005. In New York, BMW's lease acquisition fee is higher at $800, soon to be $900, because of the extra liability that is associated with the vicarious liability laws that exit there. Since this is the only state in which BMW FS' acquisition fee is different it has to publish separate advertised lease payments for residents of NY.
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It is difficult to predict what manufacturers will do with their future incentives programs. If I was in the market for this car I probably would pull the trigger some time before the end of the year, perhaps a little later in the month. Many dealerships are empty during this time of the year because all of their potential customers are busy holiday shopping and putting up decorations instead of buying new vehicles. As a result, I would not be surprised if you were able to negotiate a fairly attractive deal at this time. Furthermore, I expect BMW Financial Services' residual values for model models to drop in January. In order to keep its lease payments from increasing, BMw will have to increase its lease support. There is a chance that BMW will increase its support, but whether it is by enough to offset the drop in residuals is difficult to say.
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I have another question....I know your feeling on lease down payments, but what about taxes?? Do you see any advantage of paying them up front as opposed to adding them into the monthly payment? Is the tax spread out evenly or is there "fuzzy math" involved?
One thing that hits me right off the bat about the deal that you were quoted is the fact that you are using the proceeds from your trade-in as a down payment. 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 TL would be exactly the same, regardless of whether you had put all of the money that you get for your trade down, or had made absolutely no down payment at all. If you really don't want to deal with the hassle of selling your current vehicle privately, you can still trade it in, just make sure to have the dealership that you are working with cur you a check for it rather than using the proceeds as a capitalized cost reduction for your lease.
Also, you never mentioned the selling price or MSRP of the car that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the car that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price and MSRP of a vehicle that they want to lease is that they are necessary to calculate its lease payment. I would be more than happy to work up a sample lease payment on the car that you are interested in for you if you let me know what these numbers are.
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Car_Man, thanks for your help on the Cayenne #'s - I've determined it's outside what I'm willing to pay (for now).
I've decided I'll likely lease a Lexus RX330 (to replace my RX300) and have started getting quotes from a local dealer. I created a spreadsheet where I plug in #'s and it provides the payment and detail. My sample numbers match exactly with those output by various calculators on the 'Net. However, I'm having difficulty getting my payment calculation to come anywhere near what the dealer is offering.
Few questions:
Residual: The dealer claims the residual on a 36 month/12k miles lease of Lexus RX330 + PM package is 58%. I believe you posted a few days ago that the residual for this truck should be 59% - any ideas on the discrepancy?
Money Factor: The dealer initially offered a MF of .00245, which he's dropped first to .00215 and now .00195. All of these are higher than the .00165 you've previously posted. Btw, my credit score is ~780, so should qualify for the best terms. Is the dealer playing games on the MF?
Fees: What fees should be included in the Cap Cost and then be Residualized? I assumed it was the Destination Charge, and perhaps a fee for Advertising. But he's trying to say that the Doc Fee ($349) and License ($62) (and perhaps others yet to be named) must be in the payment calc, even if I pay for them out of pocket up front.
Lastly, they offered to sell me the RX330 + PM for $36,500, which is $1236 over invoice. I'll attempt to negotiate lower, but am wondering what holdback, if any, should I assume they're getting in support of the vehicle?
Thanks in advance for your help.
Best,
Ken
Thank you!!!
Just as a point of reference, I just finalized this deal on an S80 -- the details are as follows
2005 Volvo S80 2.5T FWD
Black Sapphire Exterior Paint
Interior-beige leather
Options:
Premium Package, Climate Package, Sport Package,
Convenience Package, Volvo Navigation System
The MSRP on this vehicle is $44,020
The Selling Price is $42,300
The residual for a 36 month lease with 12,000 miles per year is 55%
The money factor is .00050
With 2500,00 down payment the monthly payment including State use tax is $513.77
The total due at lease signing would be $3,688.77
All numbers were based on approved credit through Volvo Car Finance.
Thank you for the reply.
Hmm... the numbers that I saw at the Acura dealer the other day for the RL were:
(All with $0 capital cost reduction and tax and tags paid up front)
36mo - came out to around $1000 per month, but I don't recall the mf that was used and if it included some negative equity that I later asked to have taken out of the calculations. The residual was 56%.
42mo,.00255mf,51% residual,17k miles = $797 per month (taxes paid up front)
48mo,.00255mf,47% residual,17k miles (I know I didn't ask you for this term) = $759 per month (taxes paid up front)
Could they be bumping the mf up above what Honda is really charging? BTW, they were charging $.10 a mile to go above 15k.
Regarding the calculations that I didn't ask for, should I trust the lease formulas and calculator on the leaseguide.com website? If not, would you mind running the A6 and RL numbers at MSRP for 36/42/48? I hope it's not asking too much.
From what I've seen it looks like the A6 will be the slightly cheaper alternative considering their lease terms and free maintenance for 4/50k...
Also, maybe I missed it, but I'm also interested in your answer to the question that was posted about paying taxes up front vs. rolling them into the lease payments.
Thanks,
Lawrence
Reading through the back posts, I see bits and pieces of information for these vehicles, but not the exact info I'm looking for. I need the 36 and 42 month (15,000 miles a year) December lease numbers (money factor and residual) for the following vehicles. Thanks.
2005 Honda Pilot EXL/RES (Entertainment System)
2005 Volvo XC90 T6
I noticed one dealer still has some 2004 M3 convertibles left over. I am in Southern California, but they say convertible season is over. You previously supplied M3 lease rates on M3's - any chance there is a special program for the left over 2004 M3 convertibles?
Lee
From your earlier posts, you mentioned that one can try to negotiate (lower) the Lease-end Buying price with Infiniti. If I can lower it by $1000, I would break-even compared to buying with out the risk of "an over-depreciating vehicle" - not that it is likely given that G35 coupe currently has the best overall resale value in its category.
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Could u please confirm the numbers on a 2004 G35 Coupe? From the numbers you gave me, I calculated the money factor to be .00215 and residual vlaue of 55% for a 39 month lease with 15K/year. Is this right?
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If you were to lease a 2005 Saab 9-5 Aero Sedan through SFSC for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00050 and 45%, respectively. The numbers for an otherwise identical 4 year lease should be .00100 and 36%.
Saab Financial Services Corp.'s lease acquisition fee is currently $595 in most states.
When negotiating your lease on either of these cars, keep in mind that Saab is providing $3,000 dealer cash on leases of them that will help you to negotiate an attractive selling price.
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As always,
thanks...
kyfdx
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Thank you for your response earlier! Here's the selling price for acura tl '05 w/ navi :
Here is exactly what i was quoted :
$34,697 + tax, tag, $499.50 dealer fee
$2000 down (inlc !st mo payment)
42mo/12k miles lease
$499+tax
I know you said to avoid paying the down payment, but what else can I negitiate??? This was the dealer first offer. I would appreciate the advice!
Thanks!
I'd really appreciate it if you could calculate the monthly lease payments for me on the following vehicles:
Honda Accord V6 w/Navi - Gross Cap $27,762
Honda Accord EX-L w/Navi - Gross Cap $25.779
I prefer 3 years/12,000 miles but would consider Honda's 42 month lease special if the monthly payments are significantly lower.
Thanks in advance,
csf97
I plan on returning the car at the end of the term. I will NOT buy it. SmartBuy comes out with a lower monthly payment than a Lease. However, if I return the car at the end, what's the difference (in terms of dollars and cents) between SmartBuy and a lease?
Any advice would be much appreciated...
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Accord v6 w/Navi = $29,215
Accord EX-L w/Navi = $27,015
csf97
The selling price of the G35 is $32,700.
For the S4 they want $49,500. Both are 2005 models.
I would prefer to go 36/15k on either, but I know for Audi the best bet now seems to be for 42mo.
Please let me know what i SHOULD be paying and with what amount of drive-off.
Thanks!