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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey wing5nut. Let's compare the lease programs of these two very nice cars. Honda is providing a little lease support on the Accord, but it does not currently have any (nor do I expect it to introduce any in the near future) on the Acura TL. If you were to lease a 2005 Acura TL without navigation through American Honda Finance Corp. right now for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00235 and 61%, respectively. The numbers for an otherwise identical lease of a 2005 Honda Accord EX V6 without navigation should be .00192 and 57%. Honda is not currently providing cash incentives on either of these models.

     

    Car_man

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Here you go, mrr162. If you were to lease a 2004 Infiniti QX56 AWD through Infiniti Financial Services right now for 36 months with 15,000 miles per year, its base lease money factor and residual value should be .00158 and 53%, respectively. If I was in the market for this truck, I would lease it for 39 months instead of for 36. By doing so, you not only get a lower payment because you are spreading out the initial depreciation hit out over another three payments, but you also get to use a lower lease money factor of .00110 (and a residual value of 52).

     

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome, Mark. Volvo Finance's 3 year, 15,000 miles per residual value for a 2005 XC 90 T6 is 59%. Its 12,000 miles per year residual value for this term would be 2% higher.

     

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi Rickster. 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 this car using Volvo Finance's lease program if you let me know what its selling price is. You can compare the payment that I calculate to the one that you were quoted for a lease through U.S. Bank and see which one is better.

     

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello smh12. The selling price, lease money factor, residual value, and lease acquisition fee that you were quoted for this truck look great. I just worked up a sample lease payment on it using the numbers that you provided in your post and I came up with a 3 years, 12,000 miles per, payment of right around $461 before tax. I am not sure why they payment that you were quoted is higher than this. Other than that, the deal looks good to me.

     

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey gold233790. American Honda FInance Corp.'s standard lease money factors, which your sister would have to use if she was to lease an Acura TL right now, vary depending upon the length of the lease. Right now its base standard lease money factor is .00235 for 3 year and .00210 for 4 year leases.

     

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  • upndwnupndwn Member Posts: 44
    I guess my earlier request was overlooked after the software upgrade. That's OK. I am not in a hurry at this time. Still learning.

     

    Please provide me with the residual and money factor information for the TL and TSX for 15,000 miles per year. I would prefer 36 mos., but could go to 48 if it made a big enough difference in the payments as these are reliable cars.

     

    Also, I have learned here that the residuals of the TL are lower with navigation. I probably would not lease a TL with navi, because of the $2,000 higher MSRP and lower residual.

     

    If I pick the TSX, it will still bother me if this navi discrimination exists on it as well, but I probably could afford navi with the TSX. So, may I have the numbers for the TL, non-navi, and the TSX, both w/ and w/o navi.

     

    Thanks.
  • jodicjodic Member Posts: 3
    Hi Carman,

     

    I am negotiating a lease on a Volvo V50 online with a dealer and he quoted me an MSRP of $31,495.00. He also listed all the details of the lease as I requested and they all were in line with what I would expect. But when I ran my numbers on the car he found for me with the exact same options I got an MSRP of $29,484.00 (directly from Volvo's website).

     

    I wrote back and asked him about the $2011.00 difference he said "THERE ARE VALUE PACKAGES ON THE VEHICLE PRICING THAT ALLOWS YOU TO RAISE THE MSRP TO LOWER THE PAYMENT BECAUSE THE RESIDUAL VALUE IS BASED ON A PERCETAGE OF MSRP THE HIGHER THE MSRP THE LESS YOUR PAYMENT BECAUSE IT SHORTENS THE MONEY BETWEEN THE CAP COST AND THE RESIDUAL."

    (Sorry for the caps...he posted it that way to me)

     

    I have been leasing cars since 1985 and have never heard anything like that before. Sounds like bunk to me....is it?

     

    Thank You,

    Jodi
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi bluewolf. I am familiar with the advertised Volvo S40 lease that you are referring to. I believe that it is based upon a car with a full MSRP of $25,020 and a capitalized cost of $21,975. If one was to add the $2,495 down payment back into the capitalized cost, it would increase to $24,470. This new capitalized cost would increase the monthly lease payment for a 3 year, 10,000 miles per lease from $229 to around $298.

     

    If you were to lease a 2005 Saab 9-2X Linear through Saab Financial Services Corp. right now for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00001 and 49%, respectively. The numbers for an otherwise identical lease of a 2005 Saab 9-3 Linear should be .00034 and 48%.

     

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi eclipse2. The first thing that I notice about the lease that you mentioned is the whopping $3,500 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 Pathfinder would be exactly the same, regardless of whether you had put $3,500 down, or had made absolutely no down payment at all.

     

    Also, you never mentioned the selling price of the truck 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 this Pathfinder for you if you let me know what its selling price. I also need to know its full MSRP and how many miles per year you need to be able to drive it.

     

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  • upndwnupndwn Member Posts: 44
    NOT BUNK, IF THE CAPITALIZED COST DOES NOT GO UP WITH MSRP.

     

    Let me try to help and see if I understand how this works.

     

    Increasing MSRP (while maintaining the selling price) increases residual value. In a lease you only pay for the part of the value of the vehicle you are using, not the value that it will have for someone else to enjoy after you return it. If the car retains more of its value at lease end, (higher percentage of its MSRP), you pay less.

     

    In calculating a lease payment, you first determine depreciation and interest charges.

     

    Depreciation is calculated by multiplying MSRP by the residual %. Then, the residual is subtracted from the capitalized cost (negotiated selling price less any down payment (which should be as little as possible)). Dividing this number by the lease term you get monthly depreciation.

     

    Interest expense is capitalized cost plus residual value times the money factor.

     

    I assumed that you were offered a 36 month lease with a money factor of 0.0005. I assumed the selling price/capitalized cost was $28,000 and the MSRP was either $32,000 or $30,000. I ran the numbers with residuals of 45% and 55%.

     

    MSRP of $32,000 w/ 45% residual = $377 depreciation expense and $21.2 interest expense = $398.2/mos. before tax.

     

    MSRP $32,000 w/ 55% = $288.81 and $22.8 = $311.69/mos.

     

    MSRP $30,000 w/ 45% = $402 and $20.75 = $423.52

     

    MSRP $30,000 w/ 55% = $ 341.69 and $22.25 = $341.69

     

    So, either way higher MSRP does save on the net price.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're very welcome, terl. I am glad to hear that Carmax worked out for your trade and that you were able to negotiate a good deal on your new BMW. Thank you for taking the time to come back and let us all know how everything turned out. The dealer was correct that you need to make a security deposit that is equivalent to your car's monthly payment rounded up to the nearest $50 increment to qualify for this money factor. BMW FS will waive its security deposit requirement in exchange for an increase in this car's money factor though. At lease signing, you will also have to pay BMW FS' lease acquisition fee of $525 (this charge is higher in New York). BMW FS' acquisition fee is not scheduled to increase to $625 until January 1st, so it appears as though there may be a little padding going on there.

     

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    The information that the manager who you spoke with told you is correct. BMW does allow consumers to lock in special lease money factors on ordered vehicles, but only for a few months. If your ordered car does not come in by the time the rate lock expires then you will have to use the lease program that is available at the time of delivery. It is difficult to say what BMW's lease program will be like on this car in several months, but it may not necessarily be worse. There is a chance that it actually will end up being more attractive than it is now.

     

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello obrien040362. Manufacturers' special lease money factors are usually different than their special financing rates. Furthermore, I was not aware that Honda is offering 1.9% financing on the Pilot right now. Where did you hear about this? American Honda Finance Corp.'s current special lease money factor on the 2005 Pilot is currently .00149 for leases up to 42 months in length. I would be more than happy to work up a sample lease payment for you on the exact truck that you are interested in, however in order for me to do so I need you to tell me what its full MSRP is. I need to know this number because vehicles' residual values are based upon a percentage of their full MSRPs, including destination charges. AHFC charges a lease acquisition fee of $595 in most states. You can either pay this charge at lease signing or roll it into your vehicle's capitalized cost. You are correct about the security deposit, AHFC charges its lessees a deposit that is equivalent to your vehicle's monthly payment rounded up to the nearest $25 increment.

     

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi murphy4. Most banks will only finance up to a certain percentage of a vehicle's MSRP, such as 100%, 105%, or 110%. It is likely going to be very expensive for you to get out of your current lease well over a year prior to its scheduled termination date. As a result, you may not be able to roll the entire expense that is associated with getting out of your current lease into your next loan or lease. To be honest with you, you would be much much better off waiting until you are a lot closer to the scheduled end of your lease to get something new. At least the Passat Wagon is a relatively large vehicle. You would be in much worse shape if you has a sedan.

     

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome in advance, jefhack. Unfortunately, in order for me to give you my opinion of this deal I need to know this car's full MSRP. It is a necessary for me to calculate a sample lease payment to compare to the one that you were given.

     

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Your calculation is not correct, st7. Even though one is making all of their lease payments in advance with a single pay lease, the banks that offer this sort of deal still charge interest. They do however usually provide a break in the interest rate, i.e. the money factor, that is used to calculate the cost of one pay or single pay leases.

     

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi fxsport. BMW Financial Services' base lease money factor for a 2005 BMW 545i is currently .00125. One has to pay a lease security deposit to get this money factor though. BMW FS will waive its security deposit requirement in exchange for a slight increase, I believe either .00010 or .00015, in the money factor that is used to calculate a vehicle's payment. If you are paying a security deposit and an acquisition fee and your car's money factor is still higher than .00125 then the dealer that you are working with is lying to you and is marking-up BMW FS' base money factor to add additional back-end profit to your deal.

     

    I noticed in your post that you plan on making a down payment of almost $3,000 on this car. 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 545i would be exactly the same, regardless of whether you had put $3,000 down, or had made absolutely no down payment at all.

     

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey topgun7. Let me begin by saying that General Motors Acceptance Corp. publishes what are known in the industry as lease rates instead of money factors for the vehicles that it leases. You can convert its lease rates into equivalent money factors by dividing them by 2400. If you were to lease a 2004 Pontiac GTO through GMAC right now for 3 years with 15,000 miles per, its base lease rate and residual value should be 3.5% and 53%, respectively. When negotiating your deal on this car, keep in mind that General Motors is providing bonus cash on leases of it through GMAC right now. I believe that the exact amount of cash that is available in your area is $3,500.

     

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi there smh12. If you were to lease a 2005 Lexus RX 330 2WD with navigation through Lexus Financial Services right now for 3 years with 15,000 miles per, its base lease money factor and residual value would be .00165 and 54%, respectively. This truck's money factor is actually a little lower than this in certain areas. I am not sure exactly what LFS' excess mileage penalty is right now, but if I had to make an educated guess I would say $.20 per mile. You can check with the dealership that you are working with to find out for certain.

     

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    I am not 100% positive, but I am pretty sure that Lexus financial Services does indeed include gap insurance in its leases. You should check with them directly or with the dealership that you plan on getting your car from to make sure though.

     

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  • jodicjodic Member Posts: 3
    Hi upndwn,

     

    Thanks for taking the time to respond. I understand all the math involved. I ran his numbers and they look OK. It's that I saw the increase as a red flag. The dealer is RAISING the MSRP from what the real MSRP is according to volvocars.com. My current leased vehicle had a Value Package MSRP Discount with which I am familiar. Just never had an increase in MSRP with a Value Package. Something just seems fishy.

     

    Jodi
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi upndwn. I apologize if I didn't respond to your earlier post, I usually don't miss them. Perhaps it got lost in the shuffle when we implemented the software upgrade. Here is the information that you are looking for. If you were to lease a 2005 Acura TL without navigation 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 .00235 and 59%, respectively. The money factor for an otherwise lease of an '05 TSX would be the same, but the residual value should be 60%. The 4 year numbers for both the 2005 TL and TSX would be .00210 and 51%. You are correct, not only does navigation add to the price of these cars, but it lowers their residual values by 2% for 3 year and 3% for 4 year leases.

     

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  • lwhitelwhite Member Posts: 18
    Car_Man

     

    I've noticed on your previous posts that in order to get BMW FS lowest MF through your dealer a security deposit must be made. My question is does this apply to returning BMW FS customers? It is my understanding returning customers have this fee waived- and is the previous security deposit refunded or is this really a case of rolling over the deposit into the next lease.

     

    As always- Thanks.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi Jodi. If one was able to raise the MSRP of a vehicle without increasing its selling price it would indeed lower its monthly lease payment. However, usually the higher a vehicle's MSRP is, the higher its dealer cost and selling price are.

     

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  • jodicjodic Member Posts: 3
    Hi Carman,

     

    My point exactly! So doesn't it sound like a scam if the dealer's MSRP quote is higher than what the Volvo web site is quoting? Thank you for your response :)

     

    Jodi
  • jefhackjefhack Member Posts: 20
    Sorry for leaving that out... here's more detail on the 05 Accord Sedan EX:

     

    MSRP: $22,900

    Transmission: Automatic

     

    Thank you again!
  • jefhackjefhack Member Posts: 20
    Hey Carman... just found one more item. The destination charge is $515 according to edmunds, so that brings the total MSRP to: $23,415
  • RicksterRickster Member Posts: 40
    My bad, Car-man. The agreed upon selling price is $27,803.

     

    Thanks so much for your help.
  • bbgunsbbguns Member Posts: 4
    I am considering a smartlease or smartbuy for a 2005 Colorado, Crew, Z71.

    The actual sales price is pretty good, below invoice with a few coupons thrown in so no problem there.

    I want to know how the rebates work with the smartbuy/lease. The Colorado currently has a $2000 rebate (or low finance rate) and $1000 bonus cash if financed through GMAC. If you lease, do you get the $2k? If you get the $2k, does GMAC change the money factor to compensate?

    Thanks
  • obrien040362obrien040362 Member Posts: 134
    Thanks CarMan

     

    In October 2004 I was told for year end honda had a 1.9% lease. I was hopping they still had it today. Looks like you .00149 money factor is correct.

     

    yes if you don't mind can you work up a lease price for 2005 Pilox EX MSRP $30435, Sale Price $27,943 Term 42 months. Down payment 1999. Dealer answer is $248 with $3262 due at signing. Residual is 18,261 (60%).

     

    I don't have the 3262 breakdown but I assume it is something like this

     

    Downpayment 1999

    Security 300

    1st payment 248

    Documentation 100

    Loan acc 595

    Title
  • kyfdxkyfdx Moderator Posts: 265,441
    In one of your posts, you mentioned that there is an "MSRP discount" for the value package..

     

    It is possible that they deduct this from the MSRP on the website, but still allow the dealer to use the MSRP before the deduction to figure the residual amount on.

     

    If true, that would indeed benefit you by giving you a lower lease payment...

     

    Assuming the sale price you agree on remains the same, even if they were substituting a more expensive car, there is no downside to you.

     

    IOW, if they are running some kind of scam, they have it backwards... It is to your benefit.

     

    regards,

    kyfdx

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  • fxsportfxsport Member Posts: 13
    Wow, Thanks for the quick reply! Well, initially they were charging a $700 security deposit and the MF was .00140. Then when I went in to renegotiate they said they would apply the security dep to my cap cost reduction in order to decrease my payment some more, but there was no change in the money factor. What do you think?

     

    Also, I know your feelings on the downpayment and the absolutely make sense. But I have no interest in buying the car at the end- my only point is to lower my monthly payment, so thats why I'm giving them the $ they are giving me for the trade-

     

    SO do I do the security payment applied to the downpayment or do I tell them I know the MF is supposed to be lower than what they are quoting?

     

    You rock Car Man- THANKS!
  • jimpjimp Member Posts: 1
    Hi:

    My lease on a 2002 525i is ending in March.

       

    Need some help with my options.

    1. Re-lease (how much would this be)

    2. Lease a new '05 525i (auto trans+moonroof) - what would the lease payment be for this? I am not sure of the interest rate but MSRP is 43K.

    3. What would be a an equivalent Mercedes be?

    Thanks for your help.

    Jim P.
  • selmselm Member Posts: 122
    Hi Car_Man,

     

    I have enjoyed your insight into leasing. I am interested in a 2005 BMW 325I 5-speed manual for 24 months with 10,000 miles/year. Can you provide the residual percentage and the base money factor? If I wish to waive the $525 Acquisition Fee through BMWFS, how much will the money factor increase? Thanks in advance.

     

    -SE-
  • st7st7 Member Posts: 12
    Car_Man,

     

    Does the .00165 base money factor on the SC430 assume security deposit is paid (equal to one payment)?

     

    Does it increase to .00175 (i.e. by .0001) if security deposit is waived?

     

    Conversely, if I paid 9 refundable security deposits upfront, should the money factor decrease to .00075 (i.e. by .0001 x 9)?
  • tokytoky Member Posts: 9
    Thanks Car_man. I'm considering to do a 30 month lease (so that I can take full advantage of all possible incentives for 24 - 30 month leases) with 15,000 miles per year.

     

    I've searched the forum and found a bunch of information, and from that I was able to create a lease estimater using excel. Now I can just plug in numbers and get a rough estimate. Usually falls within + - $10/Month.

     

    When you stated on previous postings about why not to put money down, are you also referring to the Acquisition Fee, First Month, and Security Deposit?



    Some of the different quotes the dealer gave me, did not have any security deposit required. After haggling for a bit (lowering the money factor), the security fee was introduced.



    What is the total annual fees for?



    Do the total initial fee consist of the title, registration, and doc fees?



     

    The dealer was telling that most people just put the security depsoit in to the lease, instead of paying for it. Is that a good idea?

     

    Also, what do you think of Mazda's AVP (Assured Value Program) program?

     

    Kind regards,

     

    Joel
  • smh12smh12 Member Posts: 13
    Car_man,

     

    Thanks for all your help. I picked up the rx330 last night. You were right about the $.20 per mile. I was able after a lot of headache to get a money factor of .00135 and $500 off dealer invoice.
  • briegelbriegel Member Posts: 139
    smh12 -- That is a great money factor and price! Can you tell me how you got a .00135 money factor? The best I have found from Lexus Financial Services is .00155 with Tier-1+ credit. Thanks!
  • tranceboytranceboy Member Posts: 1
    Hi,

     

    I have an opportunity to purchase a previously titled 2004 545i at significant savings compared to a new 2004 or 2005 545i. I am still trying to make a decision on whether or not I will lease the car. I have been using sites to like leasecompare.com and autoleasedirect.com to try to make a buy vs. lease decision.

     

    One thing that I'm having a tough time understanding is how the residual value on this car would be calculated. Would the residual value be based on my purchase price or would it be based on a new car price? It seems that there's a "standard" residual value on leases for used cars (2003 and older.)

     

    Any insight would be much appreciated!

     

    Thanks,

     

    Cheers,

    TB
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome, Jodi. Options packages usually have lower dealer invoice prices as well as lower MSRPs. Unless there is some sort of special incentive that makes it beneficial to lease a vehicle that does not have any options packages then I don't see how increasing the overall cost of the vehicle will ultimately provide you with a better deal. Having said this, if the dealer that you are working with is somehow able to increase this car's MSRP without raising its selling price it would indeed lower its lease payment.

     

    Car_man

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Don't worry about it, jefhack. It happens all the time. OK, let's work up a sample lease payment on this car and see what we come up with. According to my calculations, if you were to lease a 2005 Honda Accord Sedan EX with an MSRP of $23,415 and a selling price of $21,259 through American Honda Finance Corp. right now for 3 years with 12,000 miles per, its zero down, pre-tax monthly payment should be around $287. As you can see, this payment is much less than the $335 per month that you were quoted, even if one was to take tax into account. The payment that I calculated for you assumes that you will pay a security deposit that is equivalent to that payment rounded up to the nearest $25 increment and AHFC's lease acquisition fee of $1,095 at lease signing. If you were to have either of these charges waived or added into this car's capitalized cost it would raise its payment as well.

     

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  • itsajoke2000itsajoke2000 Member Posts: 1
    I've never leased before, but am considering a lease for a 2005 Honda CR-V Ex. I need to arm myself with some info prior to negotiating with the dealer.

     

    Does anyone know what the approximate residual value would be for a 3 year lease (15,000 miles/year)? Also, what money factor is Honda currently using? If I go over 15,000/year, what would should I expect to pay for miles?

     

    Any applicable information would be helpful.

     

    Thanks,

     

    itsajoke2000
  • jefhackjefhack Member Posts: 20
    Thanks Car_man! I actually did some of my own calculations based on Edmunds' formulas from years ago, and got back to a figure close to yours. Of course, here on Long Island NY our total sales tax is 8.75% (ouch). I'm leaning towards rolling the tax into the monthly payment, and paying the bank fee upfront in cash. Unless you think that's a bad idea...

    Jeff
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    No problem, Rickster. Let's work up a sample lease payment on this car using Volvo Finance's current lease program so that you can compare it to the U.S. Bank lease that you were quoted. According to my calculations, if you were to lease a 2005 Volvo S40 T5 2WD with an MSRP of $32,058 and a selling price of $29,653 (I added the $1,850 dealer cash that Volvo is providing on this car back into the price that you were quoted because it is not compatible with this lease program) through Volvo Finance for 39 months with 12,000 miles per year, your zero down, pre-tax monthly payment would be right around $415. So as you can see, you are definitely better off leasing this car through an independent bank and taking advantage of the dealer cash.

     

    Car_man

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Very good question, bbguns . Most manufacturers' cash incentives are different on leased vehicles than they are on vehicles that one was to pay cash for or finance through an independent bank. This is the case with General Motors and the Chevrolet Colorado. If you were to lease a 2005 Chevrolet Colorado Crew Cab through General Motors Acceptance Corp. right now, you would be able to take advantage of $1,250 lease cash and whatever GMAC bonus cash is available in your area.

     

    Car_man

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome, obrien040362. I still wouldn't put the two grand down on this truck if I was in your situation, but since you seem inclined to do so I will take it into account on the following sample lease payment. According to my calculations, if you were to lease a 2005 Honda Pilot EX without navigation or the rear entertainment system with an MSRP of $30,435 and a selling price of $27,943 through AHFC right now for 42 months with 12,000 miles per year, your zero down, pre-tax monthly payment would be right around $313. If you were to put $1,999 down, it would drop the payment for an otherwise identical lease to around $263.

     

    Car_man

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome, fxsport. It sounds to me as though they were initially marking-up the lease money factor that they are using to calculate your car's payment, but when they were having a tough time sealing the deal, rather than pocketing the money from the mark-up they used it to waive your security deposit. If you are interested in the lowest possible monthly payment, have this dealer use the .00125 money factor and pay the security deposit. Paying a security deposit is a much better use of your money than making a capitalized cost reduction. To take this a step further, BMW FS allows its lessees to make additional security deposits on leases. Each additional deposit reduces the money factor that is used to calculate their vehicle's payment by a certain amount. If you really want to lower your monthly payment and have the money, use it to make additional security deposits rather than a cap cost reduction. At least you get the security deposits back at the end of your lease.

     

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello Jim P. It is impossible for me to tell how much money it would cost you to re-lease your current car when its lease expires in March. The exact cost of doing so will depend upon the used vehicle lease programs that BMW is offering at that time. If you feel as though you may want to continue leasing your car, place a call to BMW Financial Services, or whichever bank you are leasing it through, a month or two before the scheduled end of your current lease and they should be able to tell you how much it would cost to lease it again.

     

    Similarly, the exact lease payment for a new BMW 525i will depend upon what sort of lease program BMW has available on it in March. If you provide me with an approximate selling price, the length of lease that you are interested in, and the number of miles per year you need to be able to drive this car I can tell you approximately how much money it would cost you to lease this car at this time. As I said earlier though, BMW's lease program for it will definitely be different in March than it is right now.

     

    If you are interested in getting a Mercedes-Benz instead of a new 5-Series, an equivelent model would probably be the E320 Sedan.

     

    Car_man

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  • RicksterRickster Member Posts: 40
    Thanks so much Car_man, I am very pumped about this car.

     

    I'm curious, though, why would Volvo have an incetive that only works when you don't use Volvo Finance? That makes no sense to me. What am I missing?
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