They are screwing you. Go to www.vosshonda.com click on new inventory and then specials. They have the same pilot for $248/mo based on a 42 month lease.
Print it and tell them to match it or you will drive to Ohio and get it there. They don't need to know you have no desire to go to Ohio. Tell them you go there every year for Christmas anyway. After all they lie all the time.
Heres is the Voss deal and how I think the formulas work. If you wish you can adjust the down payment and get different monthly rates such as a rate with zero down and the loan acquisition fee included in the capital cost (which I think equates to $317/mo or so)
But for the 1999 down (capital reduction) deal
here is how a lease is calculated
MSRP is $30,435
Voss Discount is $2492
MSRP-discount = sale price = 27,943
in this case down payment is $1999
so capital cost to lease is 27943-1999=25944
quoted residual is 18,262
How the payment breaks down
depriciation portion of the payment is (25944-18261)/42 month lease term = 182.93 per month
interest portion of the payment is (25944+18261)x.00149 money factor= 65.87
you pay interest on the average. That is why you add the two numbers together
total payment is $182.93 + $65.87 = $248.80
With this deal $3262 is due at signing. I think the breakdown is something like this
Downpayment = $1999
Documentation Fee is $100
Loan acquisition fee is $595.00
Tag and Title is $20
1st month payment is $248
security deposite is $300
even though they say $3262 is due at signing. I think also tax is due on the down payment and the 1st month payment and is not in the 3262 number.
once again this is my assumpton of the breakdown I have not talked to them yet.
Are they giving you 36,000 miles on this 42 month lease or 42,000 since it is a 3 1/2 year lease? I would also negotiate mileage to 42,000 if it is not offered.
You're welcome, Rob. Toyota is providing lease support on the 2005 Highlander in most of its regions. You are in its Portland region. I have not seen its special lease program for that area, but there probably is lease support on the '05 Highlander there. Since I have not seen the specific program for your area, I can only make an educated guess as to what its lease money factor would be there. In most areas its special money factor on this truck is around .00130. Even if there wasn't any lease support in your area, Toyota Financial Services standard lease money factor for consumers who qualify for its tier one credit tier is still only .00215, so the .00260 that you were quoted definitely looks too high to me. Using TFS' standard lease program, an MSRP of $35,649, and a selling price of $32,075, I estimate that the 39 month, 12,000 miles per year lease payment for a 2005 Highlander Limited 4WD should be $406. This is a similar monthly payment to the one that you were quoted, but the money factor that you were told is definitely not right.
Hi powderday. Audi Financial Services' base lease money factor for the 2004 S4 sedan is currently .00055. I suspect that by .75, the salesperson who you are dealing with meant .00075. This is a little higher than AFS' base lease money factor. This difference may be a result of you having this car's security deposit waived. AFS will waive its security deposit requirement in exchange for a slight increase in the lease money factor that is used to calculate a vehicle's monthly payment. You can convert the .00075 lease money factor into an approximate interest rate equivalent by multiplying it by 2400 (1.8%).
While manufacturers do allow the residualization of most options, taxes and fees other than your vehicle's destination charge usually can not be residualized.
I am not personally all that familiar with what the market is like for the S4 right now, but you definitely can do better than $200 under MSRP for one. You may be able to find a few S4 shoppers and owners in the following discussion who can give you an idea of what you should pay for this car: "Audi A4: Prices Paid & Buying Experience" .
Thanks for the additional details of this deal, prasad. I suspect that when the salesperson who you are dealing with told you that the "rate" that they are using to calculate this lease payment was 2.3 he or she meant that they are using a lease money factor of .00230. You can convert lease money factors into approximate interest rate equivalents by multiplying them by 2400, so a money factor of .00230 would be equivelent to an interest rate of around just over 5.5%. This is right in line with American Honda Finance Corp.'s base lease money factor for this car.
I would be more than happy to try to work up a sample lease payment on this car for you, but something about the pricing that you provided me with does not make sense. You stated that this car has a "Sticker price" of $31,587 and a "Sale price" of $33,587. By sticker price I suspect that you mean MSRP. The selling prices of leased vehicles are negotiable, so there is no way that you should be paying over full MSRP for one. Double check these numbers to make sure that you have them right. Perhaps you just reversed them. Once you confirm the selling price and MSRP I will work up a payment for you.
Greetings singsing. Here is the information that you are looking for. If you were to lease a 2005 BMW Z4 through BMW Financial Services right now for 2 years with 15,000 miles per year, its base lease money factor and residual value should be .00100 and 62%, respectively for both the 2.5 and 3.0 versions. These cars' 12,000 miles per year residual values would be 2% higher.
Hi nolafilm. Manufacturers' advertised lease payments never include tax because the calculation of sales tax varies from area to area. A number of states add sales tax to vehicles' lease payments making them higher. This is why you were not able to get the payment that Honda is advertising on this truck after tax was taken into account.
The first thing that I noticed about the lease that you were quoted was the large 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 Honda Pilot would be exactly the same, regardless of whether you had
put $2,500 down, or had made absolutely no down payment at all.
The good news is that the dealership that you were dealing with was being straightforward with you about this truck's lease money factor. American Honda Finance Corp.'s base lease money factor for the '05 Pilot is indeed currently .00149.
I am not personally all that familiar with what the Honda Pilot is selling for right now. I do know that in most areas the days of them going for full MSRP are long gone. You were able to negotiate a discount of around $1,200 on a truck that typically has a gap of around $3,200 between its full MSRP and dealer invoice prices. I suspect that you may be able to get a Pilot with a slightly larger discount of there is a decent amount of competition for your business in your area and you comparison shop a little bit. Make sure to check back on the Priced Paid discussion for the Honda Pilot where you also posted this message to see what others have been paying for similar models lately.
Hi missid. 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.
I haven't seen the MDX by Acura talked about here. Just the TL and I am sensing there are no great lease deals at this time. Someone posted a lease proposal on another forum and I was wondering if YOU THOUGHT THIS WAS A GOOD DEAL to follow. I can see your against down payments on leases and that is how I've done it in the past. I would like to use this post as a guide if you think it's cool.
> the lease deal for the 05 MDX with NAV&RES. Do not take delivery for 10-14 days since dealership did not have color we wanted(Silver with Ebony interior). Lease details from purchase agreement below. Again, lease is for 42 months 12k/per yr. 15cent
Thanks very much Car_man. This is great information and will help me move forward with making a good deal. One last question: if the Honda lease offer states 3173 is due at signing, is it still possible for the dealer to waive that? Or do they have to abide by Honda's offer? Thanks again!
I think i got the numbers wrong. I enquired again. The price of the car is 33,587 and he was ready to reduce it by 2000$ to 31,587. for a TSX he was ready to reduce the price by 700$. My credit union is offering a car loan at 4.24%. is it better than the honda is offering. I was looking for TL, TSX or Infinti G35. What do you think is better. is there any way i can get a smaller monthly payments on this car.
Hi Car_man. I'm heading out to get a Christmas present for the Mrs. I'm looking at the Magnum listed above. I'd like to lease for 36 months, at 15,000 miles a year. We can get the car for 1% under invoice, and I'm aware that Chrysler Financial has $1,000 for financing through them.
The purchase price of the vehicle is $26,700. Can you help me out with what I can expect from Chrysler financial, for a mf and residual?
Ya i think i did not get the numbers right. I enquired again. He said the Price of the car was 33,587$ and he was reducing it by 2000$ so he was offering it me for 31,587. i enquired about TSX and he said that he can reduce the price of it only by 700$ from the MSRP. Is the Interest rate fine. i have talked with some credit union and also the credit union for the company i work is offering a new car loan of 4.24%. which one should i go for. I was looking at Acura TL or G35 or chrysler 300. but the chrysler guys have way too high lease numbers
There are other resources on Edmund's to help with the lease or buy decision. You are on this board presumably for information which can help you negotiate favorable terms when you lease a vehicle.
New cars loan APR and money factor rates are not exactly the same. They cannot be meaningfully compared. Monthly lease cost is effected greatly by the residual value of the vehicle, in addition to the money factor APR. Residual value effects the monthly price because the lessee only pays for that part of the car's value that is consumed during the lease term. Interest is charged on the lease term, but not on the entire value of the car. A new car loan causes the buyer (as opposed to lessee) to pay the entire cost of the vehicle. At the risk of seeming tautological, the lessee is responsible only for maintaining the vehicle and returning it with only reasonable wear and tear, an owner owns and therefore the vehicle is the owners worry. For example, my wife's Passat was in the body shop 2 months after an accident that included a bent frame. If I owned the car I'd be a lot more unhappy and would be wishing the vehicle was totalled. But, it will be VW's problem down the road because were surely returning it now. I don't plan on having to drive it as it ages. If the accident lessened the worth of the vehicle, it is not my worry.
Leasing is right for me for business/tax reasons and I like having new cars more often. I am looking at the TL and I think it is very, very nice. Honda knows this, it is Acura's biggest seller. I think 60,000 annual units in the USA, compared to 15,000 for the TSX.
As an aside, the TSX smaller sales numbers can mean that they are sometimes in scarce supply. I think that the $700 under MSRP reflects the high demand relative to available units compared to the TL. For the extra 70 horse power and with the discounting closing the price gap between the TL and TSX by $1,300, I think the TL is clearly the better value for the money. I also think that the TSX is much smaller than the Chrysler, feels smaller than the TL, but is pretty comparable size wise to the Infinity. However, Infiniti also knows they have a winner in the G35 and its lease price with options making it similarly equipped to the bigger TL are higher.
The TL money factor is high, but it has a high residual value compared to cars like, say, the Saab 9-3. Accordingly, lease payment is still pretty good if you like the vehicle. However, the 9-3 is an example, IMHO, that is either designed to be leased rather than owned or became that type of vehicle because of reliability concerns. GM jacks up MSRP, subsidizes the money factors to make them below market and provides lease cash, and the dealers offer substantial discounts on top. Still, I think my 36 months and 45,000 miles will be more happily spent behind the wheel of a TL.
Thanks again for your help. Just a quick update - I spoke with two dealers in the area - they say they can't budge from the deal I listed above because it's Honda's national program and they have to abide by this. They can't lower the down payment, or the monthly payments - they have to stick with the Honda program as Honda lists it on their website. Are the not telling me the whole story? Or do you think this is the best deal I can get (at least in this area)?
Thanks so much again - you should write a book with all your great advice. I think it could be a best seller!
Can you please tell me the calculation for the residual value of a 2004 Nissan XTerra, XE-V6, World Series option, MSRP 25,200, 36 month lease, 12,000 miles. Thank you.
Just wanted to thank you for all the information you provided to help me compare the numerous car options I had been considering. Finally made a decision and went with the 05' SC430. Without a doubt, I was able to get a much better deal than otherwise would have because of the Edmunds website, this forum, and especially the opportunity to ask you specific questions and get accurate and timely responses.
I don't know if this is the best place since everybody sounds like they are trying to find a lease. I am considering an early termination of a lease (Acura TL 2003) great car, great lease rate, but am considering a year end purchase of a SUV to take advantage of tax break for self-employed. What's my best bet to terminate? Buying out the car and then trying to sell it? Appreciate any info or feedback I can get. Thanks.
I read in this forum that putting multiple security deposits down on a BMW reduces the lease payment. I have three questions. (1) How does this work? (2) Are the security deposits refundable at the end of the lease? (3) How much is the payment reduced with each security deposit. For example if a BMW 5 Series cost $50,000 and someone puts down $20,000 in security deposits, what would the monthly payment be?
You're right, superep, I don't recall talking about the Acura MDX recently. The Acura TL is not a good model to judge the general level of lease support out there by because Acura hasn't provided lease support on it in years. Acura is actually providing a modest level of lease support on the 2005 MDX, which is better than nothing considering that it went a long time without providing any lease support on this truck and we are in the winter where SUVs normally sell fairly well.
I would be more than happy to give you my opinion on this lease, however you never mentioned the MSRP or selling price of the truck 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 selling price and MSRP of the model 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 these prices is that they are necessary to calculate lease payments. I would be more than happy to work up a sample lease payment on the truck that you are interested in for you if you let me know what its selling price and MSRP are.
You're very welcome, nolafilm. I am glad that you found the informaiton that I provided you with so helpful. Consumers are free to lease any vehicle they want without making any sort of capitalized cost reduction. The reason why manufacturers often include significant down payments in their advertised leases is that it enables them to flash a low monthly payment on the screen or put a low monthly lease payment in big bold print in the newspaper. In fact, it is actually in consumers' best interest not to make any sort of cap cost reduction when leasing. Keep in mind though that unless you are able to negotiate a more attractive selling price, eliminating the cap cost reduction from an advertised lease will make its monthly payment increase. Consumers usually only have to pay their vehicle's first month's payment, a security deposit that is equivalent to that payment rounded up to the nearest $25 or $50 increment, and their bank's lease acquisition fee at lease signing.
Hi rvd4. No it is not an especially good time to lease an Acura TL, at least in terms of the lease program that is currently available on it. Having said this, it is not an especially bad time to lease one either. Acura has not provided any sort of lease support on the TL in years. As a result, if you were to lease one through American Honda Finance Corp., Acura's captive finance company, you would have to use its standard lease program. Even though this car's lease program is nothing special, dealers usually tend to be fairly willing to deal during the month of December. Not only are they trying to finish up the year on a high note, but showroom traffic is usually fairly light during the holidays. So from a negotiating standpoint, this is a pretty good time to purchase or lease a new vehicle.
As far as how long to lease this car for goes, while there are certain exceptions to this rule, generally speaking the longer a lease is, the lower its monthly payment will be. This is because vehicles experience their fastest rate of depreciation during the first year of ownership. The longer your lease is, the larger the number of payments there is to spread out this large initial depreciation hit out over. I personally feel as though 36 to 39 month leases are ideal. Any longer than that and I personally get a little antsy and want something new. Furthermore, it is usually fairly expensive to get out of a lease early. The longer your commit to leasing a vehicle for, the more likely it is that something will happen to change your lifestyle, possibly causing you to need a larger vehicle, drive more miles than you originally thought that you would, etc...
You're welcome, missid. I believe that you are interested in leasing a 2005 Volkswagen Jetta GLS 2.0L Sedan. Correct me if I am wrong. If you were to lease this car through VW Credit right now for 4 years with 15,000 miles per year, its base lease money factor and residual value should be .00027 and 47%, respectively. You mentioned in your previous post that this car has an an MSRP of $21,170 and a selling price of $20,670. I personally feel as though a $500 discount definitely is not enough on this car. Given the fact that a redesigned version of the Jetta is going to be available in the near future, you should be able to easily negotiate at least $1,000 off of this car's MSRP is there is any competition for your business in your area. Using the prices that you provided and the aforementioned lease program, I estimate that this car should have a zero down, pre-tax monthly payment of around $232. If you were able to negotiate a selling price of $1,000 below MSRP, it would drop the payment to around $222. A selling price of $1,500 below MSRP would drop the payment to around $211. As you can see, I personally feel as though the lease payment that you were quoted is a little on the high side.
Bluewolf, I can not give you an idea of what this car's lease program should be like without knowing how many miles per year you need to be able to drive it.
You're very welcome, prasad. Ah ha, I think that you had the numbers reversed. No big deal. I suspected that was the case, but just wanted to make sure. OK, so you want to lease a 2005 Acura TL without navigation with an MSRP of $33,587 and a selling price of $31,587. If you were to lease this car through AHFC right now for 42 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be right around $425.
Acura is not offering special financing rates on either the TL or the TSX right now, so if you were to finance either of these cars through it, you would have to use its standard finance rates. I am not sure exactly what American Honda Finance Corp.'s standard finance rate is right now, but I suspect that it is right around 5%, which is higher than the rate that your credit union is offering.
All of the cars that you are interested in are good vehicles. If I was in the market for one of these models right now, I personally would go with either the TL or the G35. The fact that one can get the G35 with AWD is a big plus in my book. If you can still find a leftover 2004 G35 out there, Infiniti is provising special financing rates of 1.9% for up to 3 years and 2.9% for 4 to 5 years on it.
Hi ksuwildcat. The Mrs. must have been really good this year if she is getting a new car . One percent under invoice is a heck of a deal on a new Magnum, especially if that price is not taking the $1,000 bonus for financing through Chrysler Financial into account! The Magnum's exact lease program varies depending upon exactly what trim level you get, but just to give you an idea of what its program is like right now let's take a look at the numbers for the 2005 Dodge Magnum SXT AWD. Let me know if you are considering a different version of this model and I will tell you if its lease program is any different. If you were to lease the aforementioned vehicle through Chrysler Financial right now for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00174 and 49%.
That's not a dumb question at all, Ray. Most banks that lease vehicles publish three sets of residual values, ones for leases with 10,000 miles per year, one for leases with 12,000 miles per year, and one for leases with 15,000 miles per year. Specifically, Audi Financial Services' residual values for leases with 10,000 miles per year are 3% higher than its 15,000 miles per year residual values and leases through it with 12,000 miles per year are 2% higher than its 15k residuals. If you are positive that you will need at least 15,000 miles per year it is definitely in your best interest to sign a lease with that mileage allowance rather than to lease with a lower allowance and then have to pay a penalty for excess mileage at lease-end. If you feel as though 15,000 miles per year won't even be enough, you can purchase additional miles above this at lease signing on a per-mile basis. It is less expensive to buy them at lease signing than it is to wait until the end of your lease and have to pay a penalty. In this specific case, you would save $.10 per mile by purchasing them in advance. Just make sure that you don't purchase more miles than you need though because banks do not provide lessees with refunds for unused mileage.
You're welcome, nolafilm. I tell what, we'll go in 50-50, you write the book and get it published and I will give you all of the information on the industry that you need to know . Thanks for the update on your quest to lease a new Pilot. The line that dealers are forced to abide by Honda's advertised lease payment on the Pilot is absolutely false. If I was told this by a salesperson I would be extremely insulted. The selling prices of all leased vehicles are negotiable, unless they are in such great demand that dealers will not budge on their price, which is not the case with the Pilot. Shop around with several dealers in your area for the lowest possible selling price for this truck and then tell them that you want to lease it.
Hi millie. Let's take a look at the lease program for the truck that you are interested in. If you were to lease a 2004 Nissan Xterra, XE-V6 4WD through Nissan Motor Acceptance Corp. right now for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00135 and 54%, respectively. Vehicles' residual values are based upon a percentage of their MSRPs, so if you want to calculate the dollar residual value of this truck, multiply its MSRP by 54%.
You're very welcome, st7. Thank you for taking the time to come back and let us all know how everything turned out. Enjoy your sweet new car and Happy Holidays!
two things than - should I go for "buying this model" rather than lease it since there are no incentives?
-or-
go for the best lease I can.
(I do like a new vehicle every few years - so I will always have a payment) this is for my wife (and I know I'm gonna drive this baby more than her previous Grand Cherokee) I put a lot of miles on myself, so I drive a Maxima that I bought. (my original goal was to buy another vehicle and own two) but prices are high out there.
so back to number two scenario on a lease.
MSRP - $43,775 for 05 loaded as per Edmonds with dealer invoice around $40,000 w/ dist chrg.
I don't know what they are going to offer me.
- - I started by looking at a 04 Demo that they offered me for $36,492 plus Dealer fee of 499 plus tx & tag.. this was loaded also and my idea was to buy it.
The dealer then started talking lease on a new one......... They said an 05 would run me $515 42mths. w/ 12K....at which time I left on good terms as I was getting confused with all the numbers. I WOULD LIKE TO GO BACK IN PREPARED.
Just curious if you could recommend what to watch for when leasing a Pilot. We got some prices on the total cost of the vehicle, right around 29,000 before taxes and other fees, as we were discussing the purchase price first, lease second.
I have seen lease numbers anywhere from hi 2's to hi 3's, which I know is tied to what I put up front. My preference is to do as little as possible, but also I want to keep the payment under 350, if at all humanly possible.
Anything I should watch for?
The one sticking point, is right now, I probably go between 15 and 16k per year, but we might still lease for 12k per year, as the first place we went was quoting 20 cents per mile, regardless of pre or post-lease. Pay me now, pay me later, wouldn't save me any money.
Santa is getting irritated now. The little woman divulged last night that she wants the Hemi Durango. I looked online this morning, and found a new 2004 Durango SLT 4X4 Hemi for a decent price. I'll still get the 1% below invoice, plus the $4,500 rebate, plus the $1,000 from Chrysler Financial. If I go 36 months, can you help me with another mf and residual? I'd be ever so greatful! - ksuwildcat
Hi fl32459. You have the general idea of what one has to do to get out of a lease contract prior to its scheduled termination date. In order to do so, you need to purchase your car from the bank that you are leasing it through and then either sell it on your own or trade it in on your next vehicle. The problem with this sort of transaction is that vehicles that are purchased well before the scheduled end of a lease usually cost more to purchase than they are worth on the open market. As a result, you will end up losing money on the deal. Furthermore, many banks require their lessees to pay all, or at least a significant portion of the lease payments that they are contractually obligated to pay, in addition to paying their vehicle's purchase price. As you can imagine, it often ends up being fairly expensive to break leases early.
You mentioned in your post that you want to take advantage of the tax break for businesses that purchase SUVs prior to the end of the year. If I am not mistaken, when the government decided to close this loophole several months ago, it did so effective immediately. If this is indeed the case, then it is already too late to take advantage of this rule. Perhaps someone else out there can confirm this for us.
Hi bmwdoug. A number of banks allow their lessees to make multiple security deposits when leasing. Each additional deposit provides a discount in the money factor that is used to calculate a vehicle's payment. BMW used to have an outstanding multiple security deposit program a few years ago, but unfortunately it has since cut back on this program. Right now consumers who lease a new vehicle through BMW Financial Services can make up to five additional security deposits, with each one providing a reduction of .00005 in the money factor that is used to calculate their car or truck's monthly payment. This is down from the .00010 reduction for up to ten security deposits that BMW FS used to provide. As long as you are not assessed any excess mileage charge or excess wear and tear charge on your leased vehicle, you will get every security deposit that you make back in full.
You're welcome, superep. Acura's lease program on this truck isn't terrible, it is providing a little lease money factor support and its residual values are solid. So there is nothing wrong with leasing it if you want to lease your next vehicle. There just isn't an outstanding lease program on it that makes leasing one much more attractive than paying cash for or financing the MDX.
Thanks a lot for your help. Took a delivery of my new Black Sapphire 530i yesterday, the car is unbelievable and the fact that thank to you and others I got the best possible deal on it makes it even better.
You definitely are doing the right thing by discussing purchase price before getting into this truck's lease payment, rodmansju. In my opinion, the two most important numbers to negotiate when leasing are the vehicle's selling price and the lease money factor that is used to calculate its monthly payment. The selling prices of all leased vehicles are negotiable, just as if you were paying cash for or financing them. Lease money factors, aren't negotiable in this same way. By this I mean that individual dealers do not have the authority to lower banks' published residual values. They can however mark-up a vehicle's base lease money factor to add back-end profit to deals. This is why it is important to know what sort of lease money factor a vehicle's manufacturer is offering on it prior to finalizing a lease of a new car or truck. American Honda Finance Corp.'s current base lease money factor for the 2005 Pilot is .00149 for leases up to 42 months in length. You will have to pay a security deposit that is equivalent to your vehicle's lease payment rounded up to the nearest $25 increment to qualify for this factor.
As far as your truck's mileage allowance goes, leases through AHFC are based upon either 12,000 miles per year or 15,000 miles per year. The difference in payment between a 12,000 miles per year lease and a 15,000 miles per year lease will definitely cost you less than $.20 per mile.
So she wants the Hemi, huh, ksuwildcat? OK, let's start over again . It's tough leasing leftover models this late in the model year because vehicles' residual values gradually fall as the year progresses. The residual values for 2004 models are at their very lowest right now. In fact, a number of banks have completely stopped leasing '04 models at this point. DCX still has a lease program on them though. If you were to lease a 2005 Dodge Durango SLT 4WD Hemi through Chrysler Financial right now for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00154 and 47%, respectively. Happy Holidays, good luck in your quest for a new vehicle, and let me know if your wife changes her mind again .
Comments
thanks again
Print it and tell them to match it or you will drive to Ohio and get it there. They don't need to know you have no desire to go to Ohio. Tell them you go there every year for Christmas anyway. After all they lie all the time.
Heres is the Voss deal and how I think the formulas work. If you wish you can adjust the down payment and get different monthly rates such as a rate with zero down and the loan acquisition fee included in the capital cost (which I think equates to $317/mo or so)
But for the 1999 down (capital reduction) deal
here is how a lease is calculated
MSRP is $30,435
Voss Discount is $2492
MSRP-discount = sale price = 27,943
in this case down payment is $1999
so capital cost to lease is 27943-1999=25944
quoted residual is 18,262
How the payment breaks down
depriciation portion of the payment is (25944-18261)/42 month lease term = 182.93 per month
interest portion of the payment is (25944+18261)x.00149 money factor= 65.87
you pay interest on the average. That is why you add the two numbers together
total payment is $182.93 + $65.87 = $248.80
With this deal $3262 is due at signing. I think the breakdown is something like this
Downpayment = $1999
Documentation Fee is $100
Loan acquisition fee is $595.00
Tag and Title is $20
1st month payment is $248
security deposite is $300
even though they say $3262 is due at signing. I think also tax is due on the down payment and the 1st month payment and is not in the 3262 number.
once again this is my assumpton of the breakdown I have not talked to them yet.
Are they giving you 36,000 miles on this 42 month lease or 42,000 since it is a 3 1/2 year lease? I would also negotiate mileage to 42,000 if it is not offered.
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While manufacturers do allow the residualization of most options, taxes and fees other than your vehicle's destination charge usually can not be residualized.
I am not personally all that familiar with what the market is like for the S4 right now, but you definitely can do better than $200 under MSRP for one. You may be able to find a few S4 shoppers and owners in the following discussion who can give you an idea of what you should pay for this car: "Audi A4: Prices Paid & Buying Experience" .
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I would be more than happy to try to work up a sample lease payment on this car for you, but something about the pricing that you provided me with does not make sense. You stated that this car has a "Sticker price" of $31,587 and a "Sale price" of $33,587. By sticker price I suspect that you mean MSRP. The selling prices of leased vehicles are negotiable, so there is no way that you should be paying over full MSRP for one. Double check these numbers to make sure that you have them right. Perhaps you just reversed them. Once you confirm the selling price and MSRP I will work up a payment for you.
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The first thing that I noticed about the lease that you were quoted was the large 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 Honda Pilot would be exactly the same, regardless of whether you had
put $2,500 down, or had made absolutely no down payment at all.
The good news is that the dealership that you were dealing with was being straightforward with you about this truck's lease money factor. American Honda Finance Corp.'s base lease money factor for the '05 Pilot is indeed currently .00149.
I am not personally all that familiar with what the Honda Pilot is selling for right now. I do know that in most areas the days of them going for full MSRP are long gone. You were able to negotiate a discount of around $1,200 on a truck that typically has a gap of around $3,200 between its full MSRP and dealer invoice prices. I suspect that you may be able to get a Pilot with a slightly larger discount of there is a decent amount of competition for your business in your area and you comparison shop a little bit. Make sure to check back on the Priced Paid discussion for the Honda Pilot where you also posted this message to see what others have been paying for similar models lately.
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> the lease deal for the 05 MDX with NAV&RES. Do not take delivery for 10-14 days since dealership did not have color we wanted(Silver with Ebony interior). Lease details from purchase agreement below. Again, lease is for 42 months 12k/per yr. 15cent
(mileage penalty).
Residual Value: $25,001.20
Base Monthly Payment: $476.19
Sales Tax: $23.81
Total Monthly Payment:$500.00
Security Deposit: $0
Bank Acquisition Fee: $595.00
Capital Cost Reduction: $1990.95
Tax on Cap Cost Reduction: $129.30
Plates and Registration: $284.75
Total Amount Due: $3,500.00(Down Payment)
Total Monthly Payment:$500.00
> What do you think?
waiting down south 4 a good deal.
I really appreciate your response.
nolafilm
MSRP- 21,170
Selling Price- 20,670
Money Factor- .00055
$700 dollar trade with only approx $260 going towards my selling price after subtracting first months payment and $152 for title and licence.
monthly payments he's given me are $270.
thank you so much for your help!
oops..i almost forgot to mention that i'm getting 15k miles a month. i don't know if that changes anything. thanks!
Currently Saab is offering $2k lease cash and $1.5k conquest cash for VW owners, which I am.
Also offering $3k incentive on a purchase.
Trying to figure out whether it's better to lease or buy.
The advertised lease is $2999 down & $179/mo. I'd rather put less down and have a payment in the low-mid $200's.
Need residual & money factor so I can tell if the dealer is trying to give me a raw deal.
I think i got the numbers wrong. I enquired again. The price of the car is 33,587 and he was ready to reduce it by 2000$ to 31,587. for a TSX he was ready to reduce the price by 700$. My credit union is offering a car loan at 4.24%. is it better than the honda is offering. I was looking for TL, TSX or Infinti G35. What do you think is better. is there any way i can get a smaller monthly payments on this car.
The purchase price of the vehicle is $26,700. Can you help me out with what I can expect from Chrysler financial, for a mf and residual?
Thanks, Car_man!
OK – I have never leased a vehicle.
I am looking at a short term lease (2 years / $499 / 2005 Audi S4) that is 10,000 miles / year.
Fine Print includes: Over 10,000 miles = $0.25 / mile.
I typically drive 15 – 16,000 miles / year.
I asked what it would cost to buy miles “up front”. Answer = $0.15 / mile.
So – question is: Does buying miles “up front” make any sense?
Related – if so, how does it work? Single check for the total? Additional amount each month?
I have read a bunch or recent posts here, but did not see this topic. . .
Thanks,
- Ray
Also unsure of other things, but . . .
New cars loan APR and money factor rates are not exactly the same. They cannot be meaningfully compared. Monthly lease cost is effected greatly by the residual value of the vehicle, in addition to the money factor APR. Residual value effects the monthly price because the lessee only pays for that part of the car's value that is consumed during the lease term. Interest is charged on the lease term, but not on the entire value of the car. A new car loan causes the buyer (as opposed to lessee) to pay the entire cost of the vehicle. At the risk of seeming tautological, the lessee is responsible only for maintaining the vehicle and returning it with only reasonable wear and tear, an owner owns and therefore the vehicle is the owners worry. For example, my wife's Passat was in the body shop 2 months after an accident that included a bent frame. If I owned the car I'd be a lot more unhappy and would be wishing the vehicle was totalled. But, it will be VW's problem down the road because were surely returning it now. I don't plan on having to drive it as it ages. If the accident lessened the worth of the vehicle, it is not my worry.
Leasing is right for me for business/tax reasons and I like having new cars more often. I am looking at the TL and I think it is very, very nice. Honda knows this, it is Acura's biggest seller. I think 60,000 annual units in the USA, compared to 15,000 for the TSX.
As an aside, the TSX smaller sales numbers can mean that they are sometimes in scarce supply. I think that the $700 under MSRP reflects the high demand relative to available units compared to the TL. For the extra 70 horse power and with the discounting closing the price gap between the TL and TSX by $1,300, I think the TL is clearly the better value for the money. I also think that the TSX is much smaller than the Chrysler, feels smaller than the TL, but is pretty comparable size wise to the Infinity. However, Infiniti also knows they have a winner in the G35 and its lease price with options making it similarly equipped to the bigger TL are higher.
The TL money factor is high, but it has a high residual value compared to cars like, say, the Saab 9-3. Accordingly, lease payment is still pretty good if you like the vehicle. However, the 9-3 is an example, IMHO, that is either designed to be leased rather than owned or became that type of vehicle because of reliability concerns. GM jacks up MSRP, subsidizes the money factors to make them below market and provides lease cash, and the dealers offer substantial discounts on top. Still, I think my 36 months and 45,000 miles will be more happily spent behind the wheel of a TL.
Good luck.
Thanks again for your help. Just a quick update - I spoke with two dealers in the area - they say they can't budge from the deal I listed above because it's Honda's national program and they have to abide by this. They can't lower the down payment, or the monthly payments - they have to stick with the Honda program as Honda lists it on their website. Are the not telling me the whole story? Or do you think this is the best deal I can get (at least in this area)?
Thanks so much again - you should write a book with all your great advice. I think it could be a best seller!
nolafilm
Just wanted to thank you for all the information you provided to help me compare the numerous car options I had been considering. Finally made a decision and went with the 05' SC430. Without a doubt, I was able to get a much better deal than otherwise would have because of the Edmunds website, this forum, and especially the opportunity to ask you specific questions and get accurate and timely responses.
Thanks
I would be more than happy to give you my opinion on this lease, however you never mentioned the MSRP or selling price of the truck 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 selling price and MSRP of the model 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 these prices is that they are necessary to calculate lease payments. I would be more than happy to work up a sample lease payment on the truck that you are interested in for you if you let me know what its selling price and MSRP are.
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As far as how long to lease this car for goes, while there are certain exceptions to this rule, generally speaking the longer a lease is, the lower its monthly payment will be. This is because vehicles experience their fastest rate of depreciation during the first year of ownership. The longer your lease is, the larger the number of payments there is to spread out this large initial depreciation hit out over. I personally feel as though 36 to 39 month leases are ideal. Any longer than that and I personally get a little antsy and want something new. Furthermore, it is usually fairly expensive to get out of a lease early. The longer your commit to leasing a vehicle for, the more likely it is that something will happen to change your lifestyle, possibly causing you to need a larger vehicle, drive more miles than you originally thought that you would, etc...
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Acura is not offering special financing rates on either the TL or the TSX right now, so if you were to finance either of these cars through it, you would have to use its standard finance rates. I am not sure exactly what American Honda Finance Corp.'s standard finance rate is right now, but I suspect that it is right around 5%, which is higher than the rate that your credit union is offering.
All of the cars that you are interested in are good vehicles. If I was in the market for one of these models right now, I personally would go with either the TL or the G35. The fact that one can get the G35 with AWD is a big plus in my book. If you can still find a leftover 2004 G35 out there, Infiniti is provising special financing rates of 1.9% for up to 3 years and 2.9% for 4 to 5 years on it.
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two things than - should I go for "buying this model" rather than lease it since there are no incentives?
-or-
go for the best lease I can.
(I do like a new vehicle every few years - so I will always have a payment) this is for my wife (and I know I'm gonna drive this baby more than her previous Grand Cherokee) I put a lot of miles on myself, so I drive a Maxima that I bought. (my original goal was to buy another vehicle and own two) but prices are high out there.
so back to number two scenario on a lease.
MSRP - $43,775 for 05 loaded as per Edmonds with dealer invoice around $40,000 w/ dist chrg.
I don't know what they are going to offer me.
- - I started by looking at a 04 Demo that they offered me for $36,492 plus Dealer fee of 499 plus tx & tag.. this was loaded also and my idea was to buy it.
The dealer then started talking lease on a new one......... They said an 05 would run me $515 42mths. w/ 12K....at which time I left on good terms as I was getting confused with all the numbers. I WOULD LIKE TO GO BACK IN PREPARED.
Any help you can give is appreciated. Superep
I have seen lease numbers anywhere from hi 2's to hi 3's, which I know is tied to what I put up front. My preference is to do as little as possible, but also I want to keep the payment under 350, if at all humanly possible.
Anything I should watch for?
The one sticking point, is right now, I probably go between 15 and 16k per year, but we might still lease for 12k per year, as the first place we went was quoting 20 cents per mile, regardless of pre or post-lease. Pay me now, pay me later, wouldn't save me any money.
thanks
You mentioned in your post that you want to take advantage of the tax break for businesses that purchase SUVs prior to the end of the year. If I am not mistaken, when the government decided to close this loophole several months ago, it did so effective immediately. If this is indeed the case, then it is already too late to take advantage of this rule. Perhaps someone else out there can confirm this for us.
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Thanks a lot for your help. Took a delivery of my new Black Sapphire 530i yesterday, the car is unbelievable and the fact that thank to you and others I got the best possible deal on it makes it even better.
Thanks again and Happy Holidays everybody!!!
Alex
As far as your truck's mileage allowance goes, leases through AHFC are based upon either 12,000 miles per year or 15,000 miles per year. The difference in payment between a 12,000 miles per year lease and a 15,000 miles per year lease will definitely cost you less than $.20 per mile.
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