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Comments

  • rroyce10rroyce10 Member Posts: 9,332
    ....... Usually on leases, it's either rate -or- rebate, it's very common ... S40's nice vehicles .............. :)

     

                                    Terry.
  • frommx5tomz3frommx5tomz3 Member Posts: 19
    You mentioned the ES330 Base Money factor might be lower than the .00165 used nationally based on my state. I am in Texas, would you be so kind as to let me know whether the MF would be even lower? Thanks again!
  • gold233790gold233790 Member Posts: 183
    Thanks for your help to this point, again, carman. One last question-

     

    To qualify for the .00235 MF (having to "qualify" for a 5%+ interest rate on a lease seems bad anyway), I was told we need to leave a security deposit or be a returning Honda finance customer. Otherwise, the rate is .00245. Is this true?

     

    It's not a huge deal if it is, since it really only adds $5 to the monthly payments and she'd prefer having the extra cash in her pocket.

     

    In the above scenario, she would only be responsible for first month payment and acquisition fee, correct?

     

    Thanks.
  • prasadprasad Member Posts: 5
    hi,

       I am planning to lease an 2005 Acura Tl. the sticker price is 31587.00 and monthly lease is 446$/month for 42 month lease with a residual value of 18743$ and inception fee of 1200$ including first month lease fee. What do you say about this deal. how is it. Is it any good. Anybody can answer.

     

    thank you

    prasad
  • leaserookleaserook Member Posts: 3
    Car-man; Thanks for the info. You provide a great service for the consumer. Forwarned is forarmed. Thanks again, Tony
  • wing5nutwing5nut Member Posts: 38
    Car_man,

     

    What's the MF & RV for the same vehicle for 48 months, 12k miles per year, in Ohio?

     

    Thanks!

    wing5nut
  • charliemcharliem Member Posts: 12
    I negotiated a lease on a fully loaded 2004 infiniti Qx56, minus the entertainment option. The sticker price is $53000. Got them down to 580/ month not including tax, with 15000 miles per year, 39 month lease, 4000 down plus fees. I live in PA. Sound like a good deal or should i hold out.

     

    Thank you charlie
  • sacdriversacdriver Member Posts: 33
    prasad- I don't know where your numbers came from. The sticker price for an '05 TL without navigation is $33470. If you meant that your negotiated price is $31.587, then that seems like a good deal and the resisual and monthly payment is about right. How many miles are you allowed under the 42 month lease? My Acura dealer said 10,000, 12,500, and 15,000 are available. I'm trying to figure out what number gets adjusted for the miles you select-- the residual?? My dealer quoted me the same residual but I am wondering if it is for only 10,000 miles a year-- I told him I wanted 15,000. Also, do they give you an extra 6 months worth of miles if you select a 42 month vs. 36 month lease?
  • rshlachterrshlachter Member Posts: 4
    Question about lease terms quoted:

     

    msrp: 35,649; cash price $32,075 (limited model with leather, upgraded sound, sunroof, etc), AWD.

     

    proposed lease terms: $2500 total paid at inception (including capital reduction, initial payment, etc.); $396 per month (no tax in Oregon), for 39 months, 12k miles/year.

      This seems a bit high based on present interest rates, and the capitalized cost/cash price.

      any thoughts or comments?

    thanks!!
  • newguy5newguy5 Member Posts: 3
    Hi

    I recently saw a TV ad for a Toyotathon year-end lease deal on the 2005 Highlander. If I remember correctly, they quoted a no-down price of $289 per month. I went to the Toyota web site but could find no further details on this. Do you know if this is a national manufacturer-subsidized lease program?

    TIA,

    newguy5
  • wing5nutwing5nut Member Posts: 38
    Many thanks, Car_man! I have widened my search to include the Acura TSX and the Lexus ES 330, thanks to your responses to others in this forum. I'm not sure how many test drives I'm willing to endure in this winter weather, but I'm enjoying the hunt from the warmth of my den as I track down the elusive "perfect car".

     

    Wishing you and your family a very Merry Christmas!

     

    wing5nut
  • obrien040362obrien040362 Member Posts: 134
    you quote 263 the dealership quotes 248. You must have the loan acquisation fee in you number?
  • scrapluvscrapluv Member Posts: 12
    I am currently negotiating a Lease for a 2005 Lex Rx 330 w. Navigation package. The rx330 w. nav are currently out of stock and on backorder. These are the current figures

    1. Term - 48 months/ 15000 miles 2. M.R.S.P. - 44,833 3. Res - 46% 4. B.C.C. - 42,232 5. bank fee - 600 6. adjusted cap cost - 42,881.32 7. sales tax 1,340.03 8. monthly pymnt - 555.79 9. reg fee - 24.50 10. doc fee - 129.00 11. total cap reduction - 1,283.21 amount due at start - 2,000. does this look like a fair deal? what areas could i continue to negotiate and what room do i have? appreciate any recommendation
  • prasadprasad Member Posts: 5
    Ya,

       The negotiated price is 31,587 and it is a 15000 mile per year lease. I have not asked the dealer regarding the miles for 6 months. I should remember to ask him. I have a question for you. what happens if i want to return the car before the lease ends as

    i may go to india for extended periods like 6 months and i would not like to pay monthly payments without

    using the car. Can i return the car before the lease

    ends. how much will be charged from me
  • smh12smh12 Member Posts: 13
    briegel-- I first got the money factor quote of .00135 from Mission Viejo Lexus in Orange County, Ca. They quoted me $200 under invoice. They did not have the White/Ivory color in stock. I called around and found Longo Lexus who would match/beat the price. They quoted the .00155 money factor you have been told. After a lot of phone calls they finally agreed to offer the same money factor? They couldn't believe the other dealer told me about that Lexus money factor. I doubt they would offer it after the end of yr.
  • briegelbriegel Member Posts: 139
    smh12--That's very interesting! I just got a quote from another LA-area dealer I was connected with thru an auto buying credit union in the Pacific Northwest (I am in the Seattle area) and they gave me a money factor of .00145 and a price that is $200-$300 over invoice (before advertising fees, which I believe may apply in that area). I have to pay for shipping but they are doing a "paper trade" on my currently-leased 2002 RX and then turning it over to the CU. This works well for me so I am probably going with it. Thanks for your info!
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    I am glad to hear that you enjoy this discussion so much, selm. Here is the information that you are looking for. If you were to lease a 2005 BMW 325i through BMW FS right now for 24 months with 10,000 miles/year, its base lease money factor and residual value should be .00080 and 71%, respectively. I believe that BMW FS will waive its lease acquisition fee requirement in exchange for an increase of .00015 in your car's money factor.

     

    Car_man

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Yes, st7, all of the lease money factors that I provide to consumers assume that they pay a security deposit that is equivalent to their vehicle's lease payment rounded up to the nearest $25 or $50 increment. Many banks will waive their security deposit requirements in exchange for a slight increase in their vehicle's money factor. Having said this, Lexus is waiving its lease security deposit requirement for all vehicles leased through Lexus Financial Services during its December to Remember promotion. So you will not have to pay a security deposit on this specific deal. I am not positive, but I believe that the deduction that LFS provides consumers who make additional security deposits is indeed .00010.

     

    Car_man

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome, Joel. When I advised you not to make any sort of down payment when leasing, I specifically meant not to make any sort of capitalized cost reduction. You still will have to pay your car's first month's payment, a security deposit that is equivalent to that payment rounded up to the nearest $25 or $50 increment, and the acquisition fee that is required by the bank that you are leasing through at lease signing. I personally prefer to pay a security deposit when leasing rather than have the dealer use a higher lease money factor to calculate my vehicle's payment because unlike a higher lease payment, you actually get your security deposit back at the end of your lease, assuming that your vehicle is under mileage and in good condition.

     

    Mazda's AVP program is what is known in the industry as a balloon note program. There is nothing wrong with balloon notes. They are very similar to leases in that they provide consumers with low monthly payments with an option to purchase their vehicle at a specific price at the end of a specific period of time. The main difference between balloon notes and leases is that with leases, the bank's name is on your vehicle's title, while with balloon notes yours is.

     

    Car_man

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Congratulations on your new Lexus, smh12. Thanks for taking the time to come back and let us all know how everything turned out. Enjoy!

     

    Car_man

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi tranceboy. I personally do not keep track of all of the details of manufacturers' used vehicle lease programs, but I can tell you how they work. Like new vehicle leases, used vehicle leases use money factors and residual values to calculate monthly payments. However, rather than using a percentage of the vehicle's MSRP to calculate the depreciation portion of your payment like one would with a lease of a new vehicle, the banks that lease used vehicles publish a list of dollar values to be used as vehicles' residual values. The exact dollar value of each vehicle varies depending upon the trim level, model year, mileage, and often the equipment that it has.

     

    Car_man

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Greetings itsajoke2000. I should be able to give you an idea of what this vehicle's lease program is currently like. According to the latest informaiton that I have seen, if you were to lease a 2005 Honda CR-V EX 4WD through American Honda Finance Corp. for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00250 and 60%, respectively. I am not sure exactly what AHFC's per-mile excess mileage penalty is, but I believe that it is around $0.15 to $0.20. The dealer that you get your new truck from will know for certain.

     

    Car_man

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome, jefhack. 8.75% sales tax, ouch is right. There's nothing wrong with rolling the taxes on your vehicle into its capitalized cost if you are allowed to do so, other than the fact that you will have to pay interest on it.

     

    Car_man

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're very welcome, Rickster. I know how you feel. Getting a new vehicle is a lot of fun. Many cash incentives are not compatible with leases through manufacturers' captive finance companies. This is because the automaker is already supporting the vehicle with low lease money factors, artificially inflated residual values, special lease cash, or some combination there of. It would become very expensive for the manufacturer if consumers were allowed to take advantage of all of this support and cash incentives as well.

     

    Car_man

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Frommx5tomz3, I am not aware of any special lease support that is available in your state that would allow the use of a lower lease money factor than the one that I mentioned earlier.

     

    Car_man

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    No problem, gold233790. What you were told is correct. All banks that lease vehicles to consumers require a security deposit to qualify for their lowest lease money factors, unless they are running some sort of special promotion, which Acura is not. American Honda Finance Corp. will waive its lease security deposit requirement in exchange for an increase of .00010 in the lease money factor that is used to calculate this car's monthly payment. Your sister would also have to pay her car's first month's payment and AHFC's lease acquisition fee of $595 (this charge is higher in New York) at lease signing.

     

    Car_man

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello prasad. 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 that you can compare to the quote that you have already been given if you let me know what its selling price is.

     

    Car_man

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're very welcome, Tony. Good luck in your negotiations and let me know if you have any other questions.

     

    Car_man

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Here you go, wing5nut. According to the latest information that I have seen, if you were to lease a 2005 Lexus ES 330 in your area through Lexus Financial Services right now for 4 years with 12,000 miles per, its base lease money factor and residual value should be around .00165 and 50%, respectively.

     

    Car_man

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi charliem. 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 that you can compare to the quote that you have already received if you let me know what its selling price is.

     

    Car_man

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Greetings rshlachter. The selling price that you were quoted for this truck is $3,500 under its MSRP. I am not intimately familiar with what the market is like for it right now, but that seems like a reasonable price to me. As far as the payment that you were quoted goes, Toyota's lease program varies depending upon which one of its twelve regions one is in. I would be more than happy to work up a sample lease payment on the truck that you are considering leasing that you can use to compare to the payment that you have already been quoted if you let me know what state you are in.

     

    Car_man

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi newguy5. Toyotas is offering a special lease on the 2005 Highlander in certain areas. Its exact incentives for this truck vary, depending upon which one of its twelve regions you are in. If you tell me what state you live in, I would be more than happy to try to give you an idea of what Toyota's lease program is like on this model in your area.

     

    Car_man

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Many welcomes, wing5nut :). Thanks for the warm holiday wishes and good luck in your quest for a new ride.

     

    Car_man

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Let's work up a sample lease payment on this truck for you, scrapluv, and see what we come up with. Using the lease program that is available in most areas, Lexus has enhanced its lease money factors on the 2005 RX 330 in select areas, if you were to lease a 2005 Lexus RX 330 4WD with navigation with an MSRP of $44,833 and a capitalized cost of $42,232 through Lexus Financial Services right now for 4 years with 15,000 miles per, your zero down, pre-tax monthly payment should be right around $554. If you were to make a $1,283 capitalized cost reduction, it would lower this truck's pre-tax lease payment to around $526.

     

    Car_man

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Prasad, it is usually fairly expensive to get out of a lease early. You can not just turn your leased vehicle in prior to the scheduled end of your lease without having to make all of your remaining lease payments. The only way that you would be able to get out of a lease early would be to purchase your leased vehicle and then try to sell it on your own or trade it in.

     

    Car_man

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  • newguy5newguy5 Member Posts: 3
    Thanks Car_man,

    I live in New Jersey. I've already contacted a couple of dealers in my area re: this lease offer but so far haven't gotten any calls back. I did see another TV ad this morning for 2005 Highlander at $259 per month with $1689 due at signing.

    Thanks,

    NewGuy5
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome, NewGuy5. OK, New Jersey is in Toyota's New York region. I believe that in that part of the country, Toyota is advertising the 2005 Toyota Highlander 4-cylinder 2WD for $259 per month over 36 months with $1,869 due at lease signing and 12,000 miles per year. I am not sure of the exact MSRP or selling price that were used to arrive at this payment, but I can tell you that a lease money factor of .00130 and a residual value of 64% were used to calculate it. As with most manufacturers' advertised leases, there probably is still a little meat on the bone so to speak with this deal. There should be plenty of competition for your business in your area so you should be able to beat this deal by shopping around a little bit.

     

    Car_man

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi everyone. Monthly lease payments are made up of two main components, the interest portion and the depreciation portion. The higher a vehicle's residual value is, the less depreciation you as a lessee have to pay, and the lower its lease payment will be. As a result, vehicles that have high residual values often make good vehicles to lease. I suspect that those of you who frequent this discussion may find the following new articles that are available here at Edmunds.com interesting:

     

    - Top 10 Cars With the Best Residual Value for 2005

     

    - Top 10 Trucks With the Best Residual Value for 2005

     

    - Top 10 Cars With the Worst Residual Value for 2005

     

    - Top 10 Trucks With the Worst Residual Value for 2005

     

    Car_man

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  • kyfdxkyfdx Moderator Posts: 265,218
    "I believe that BMW FS will waive its lease acquisition fee requirement in exchange for an increase of .00015 in your car's money factor."

     

    I'm not positive, but I think this is the bump up for security deposit waiver.. I think the bump-up for acquisition fee waiver is .00030

     

    Otherwise, it would be a no-brainer..

     

    regards,

    kyfdx

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  • rshlachterrshlachter Member Posts: 4
    Dear Car Host,

     

    Thanks so much. The state is oregon.

     

    assumptions: msrp 2005 Highlander ltd, $35624

        39 mo lease, 12k/year. no cap reduction (initial payment around $700). I was quoted residual as 57% and lease money factor of .260, which seems very high to me (e.g., Honda pilot is advertising in Oregon right now .1950).

     

    Thanks.

     

    Rob
  • powderdaypowderday Member Posts: 2
    I am just coming to the end (Jan 5 2005) of a Audi lease on a 2001 Audi S4. I have a bid document for a lease on a new 2005 S4. Their price is $50,270 with a 57% residual on a 36 month 12k miles per year. The money factor on the worksheet is .75 (not a miss print). They do not indicate who is providing the financing. The monthly payment is quoted at $699.22. Inception cost is $1,977.58 and includes first month payment, taxes (CT) and fees (no detail except first month payment). I am trying to secure a second bid from the other local dealer - should have this by tomorrow.

     

    I have a number of questions:

     

    1. I cannot convert the money factor to a APR that makes any sense. Can you help me convert this?

     

    2. The dealer has said that the gas guzzler tax of $1,700 cannot be residualized. Is this always true?

     

    3. MSRP according to Edmunds is within $200 of their quote. Their invoice is $47,805 according to Edmunds. Is it reasonable to expect to be able to find a sales price under $1,000 over their invoice for this car?

     

    Any other tips I should be aware when considering their deal??
  • darknight1darknight1 Member Posts: 13
    Money factor of 0.75 equates to 1800% interest. You can convert by multiplying the money factor by 2400.

     

    Let's hope that's a misprint, and it's missing at least two zeros. :)
  • kyfdxkyfdx Moderator Posts: 265,218
    I think it is missing three zeros.. as in, .00075

     

    .00075 X 2400 = 1.8%

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  • prasadprasad Member Posts: 5
    Thank you Car_man,

               I have the following details with me.

    Sale price- 33587.00

    Sticker price - 31587.00

    Residual price - 18743.20

    inception fee - 1200.00 including first month payment. and about 300$ for tag and other stuff

    monthly payment - 446$/42 months

     

     these are the deatils. The interest rate he said that they will be applying to me is 2.3 and that depends on my credit. Is it a good deal. This is for a Acura TL without navigation. This is not yet confirmed, I have a stable job and i draw about 3600$ per month. What do you think will i qualify for the 2.3 percentage.
  • powderdaypowderday Member Posts: 2
    Neither APR's make any sense. I'm reading the money factor right off the sheet they used to clculate the payment amount - it's lease worksheet from VW. Using my trusty HP 12C I backed into a calculated interest rate of 10.17% but I'm not 100% sure on the calculation. Any other ideas?
  • kyfdxkyfdx Moderator Posts: 265,218
    .00075 equates to 1.8%.

     

    Can't use a calculator if you don't understand the formula..

     

    Remember.. you are paying interest on an average of the cap cost and the residual... But, for simplification, the money factor is halved and the two amounts are added, rather than averaged..

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  • wing5nutwing5nut Member Posts: 38
    Thanks again, Car_man! It appears the ES 330 is quite competitive with the Acura TL this month. That should come in very handy when negotiating the price of the vehicle.

     

    Best Regards,

    wing5nut
  • singsingsingsing Member Posts: 5
    Car Man,

     

    Can you give me the residual and money factor for a BMW Z4. I would appreciate it if you could give them for both the 2.5 and 3.0 liter version:

     

    24 months

    12,000 miles and 15,000 miles/year
  • nolafilmnolafilm Member Posts: 12
    (also posted to Honda Pilot what people paid board)

     

    I spent 3 hours at a local New Orleans dealership last night trying to lease a Honda Pilot EX in accordance with Honda's current Pilot offer (on their website). The dealership's quotes for the base monthly price kept jumping around from $299 to $288 - everywhere but the $279 that the offer states. They explained to me that the base price they were quoting included tax on the cap cost reduction of $2k (it had been rolled in to the base monthly price over the lease term). I'd still need to add a monthly sales tax to that base figure as well. I finally got them to rework the numbers so the deal would accurately reflect Honda's offer.

     

    Here's the deal we finally worked out (I haven't agreed yet - was hoping to get some feedback from the friendly knowledgeable folks here first):

    12k mi/yr

     

    MSRP: 30, 435

    Initial Cap cost: 29, 137

    Cash cap reduction: 2,568.13

    Customer Cash down: 3,173

    Honda Assignment Fee: 595

    Adjusted Cap Cost: 27, 163.82

    Lease factor: 0.00149

    base monthly rental: 279.65

    monthly tax (9%): 25.17

    Total Monthly Payment: 304.82

    Security Deposit: 300

     

    Cash due at start: 3,173 + $381.64 (TLR of $150.50 + 231.14 tax on CCR).

     

    All I want to know is if you think this is a good deal? I was so confused by the time I left there last night. I love the car, but hate the idea of paying way more than I have to.

     

    thanks so much!
  • missidmissid Member Posts: 3
    Hi there! I appreciate any info anyone can give me. I've been offered a lease on a 05 Jetta GLS and "the numbers" i've been handed are $280/month for a 48 month lease.

    msrp is approx $21000

    Money factor i believe is around .0004 due to incentives

    residual value after 48 months...i have no idea and this is the important piece of info i need to figure this one out.

    thanks in advance to anyone who can help!
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