Are you a current Michigan-based car shopper? A reporter would like to speak with you about your experience; please reach out to PR@Edmunds.com by 7/2 for details.
Options
Lease Questions - Ask Here
This discussion has been closed.
Comments
I was wondering if you could provide me with an idea of a reasonable lease rate and details regarding the current money factor, residual, etc., for a 2005 Acura TSX, automatic, without navigation.
Lease Term: 42 months and 12,000 miles per year
I plan to put down ONLY the first month's payment.
Is a payment around $380 reasonable?
I have the following information: MSRP: $27,560
Negotiated Price: $26,237
Thanks so much for your help!
so he offered me the Premium model at $37,770 - 42mths -15K/yr - $1,195 down =$465 & tx mth.
WHAT DO YOU THINK??. He also said he just got 2.9% interest rate if I was to buy but credit has to be better than great. Mine is real good but I'm sure they'd try to work me on that. If I had the option and it was close I would rather buy.
I think I should be able to get a better deal. Your thoughts............... please
I can't thank you enough for your help. I called Premier Honda in New Orleans East today and spoke with their internet guy - he listened to what I wanted, then told me to go to Edmunds.com and print the Invoice/TMV page and bring it in so we could use that as a reference. I ended up getting an EX-L with just the first month's payment down and T+L+R and a little tax on my trade. He explained everything to me, worked the numbers with me backward and forward until I was comfortable and understood everything, and echoed your same advice - a good lease deal means as little down as possible and negotiating the cost of the car up front to a fair amount.
We used Edmunds TMV "what others are paying" figure + Honda's lease acquisition fee of $595 and everything went smoothly from there. No hidden costs or surprises like I had at the other dealership. The entire experience was one of the best car-buying deals I've encountered in a long time. The dealer made a fair profit, I got a good deal on the car and my trade.
Thank you, thank you, thank you. If I run into a book-publisher I will pitch our idea.
happy holidays!
nolfilm
I will certainly double check the fine print on the lease. If the pay-out figure I was given doesn't include additional payments or other nasty unknowns, the "hit" is tolerable.
Re: 6000 pound SUV's for business use. The $100,000 loophole was effectively closed on October 22 or thereabouts. However, there is still a first year 25,000 Depreciation allowed on SUVS 6000 plus with bonus depreciation of 30 to 50% of the remaining cost (bonus depreciation ends this this year), plus you can deduct your regular first year depreciation. Verified with my CPA today. So if you happen to be upwards in the 35% bracket, you can chip away at what Uncle Sam gets. The bonus depreciation is a little confusing, so folks definitely need to check with their accountant. There's a good website on self employment that explains this much more effectively than me.
Thanks for your quick response.
Terry.
Did you have negative equity on a trade-in? You should be able to buy a car of that price for the same terms you leased it for.
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
My mileage is about 49,600.
I'm debating whether it makes sense to keep using my car (which has been a wonderful car) until the end of the lease (and shop for a lease on a remaining, current style, new 2005 Audi A4) or to turn it in now, essentially 2 months early.
I am not interested in the "new" 2005 Audi A4 being introduced in March (the one with the big mouth, similar to the grill on the new A6).
My Audi dealer has offered me the following terms. Would it be a good deal to lease this new car and turn in my current car? Or should I wait 2 more months?
2005 Audi A4 "Special Edition" with Quattro, 1.8 Turbo, 6 speed manual, winter package and XM Radio with first 3 months subscription included:
MSRP: $31,170
Residual percentage: 54%
Lease-end value: $16,831
Initial cap cost: $30,339.04
Acquisition fee: $575
Adjusted cap cost: $30,914.04
Term: 39 months
Money Factor Sell Rate: 0.00049
Documentation fee: $160
Title fee: $15
Transfer fee: $8
Total sales tax: $899.73
Monthly payment: $407.54 (total, including sales tax, with zero down and 15,000 miles per year).
Amount due at start = $407.54 + $160 + $15 + $8 = $590.54
Car_man
Host
Smart Shopper Forum
Car_man
Host
Smart Shopper Forum
The first thing I noticed about the lease that you signed is the large down payment that you made. 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 vehicle would be exactly the same, regardless of whether you had
put $5,500 down, or had made absolutely no down payment at all.
Also, you never mentioned the selling price of the car that you are interested in leasing. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash
for them. Without knowing the price of the car that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment.
You actually may be in luck if the bank that your lease is through rejected your contract. Rather than going back in and signing an identical lease, see if you can just pay cash for or finance your new vehicle. Make sure to research what price you should pay here at Edmunds.com before re-entering negotiations.
Car_man
Host
Smart Shopper Forum
Car_man
Host
Smart Shopper Forum
Aaaah, lets take a better view of this ... profit-yes, but that's only a small portion of the "why" of leasing, because dealers take as many small deals on lease vehicles as they do on an out-right purchase ..... what makes leasing "attractive" is, it expands the buying market, in this case, those who would have normally bought a vehicle, will lease it instead, and it's mostly the buyer who wanted, but couldn't afford an ABC vehicle or an XYZ will lease it for one reason and one reason only - Payments.
At one time the leasing market was 60%+ of the vehicle market, now it's less than 35% with a big upsurge .. and over time, those who have leased went through the good and the "bad" of it, off course that "short term" memory loss kicks in and it "seems" more and more are leasing .. that said, the age group is much younger now, and they have yet to experiment with it, a good example is BMW - they're showing some big numbers right now, drop those leases and those numbers will fall like a broken tree branch .. the question will be in 25/35 months from now, on how that market will react to a second go around - it all comes down to p-a-y-m-e-n-t-s, not profit ..............
Terry.
2005 Acura TL auto, no navigation system.
$368 / month incl tax lease for 42 months, 12K miles/yr
Selling price: $32038.29
Gross cap cost: $32795.83
Cost Reduction: $2518.50 (downpayment)
Adj.cap cost: $30277.33
Resdual value: $19412.60 (59%)
Money factor: .0022
Reg./title fee: $222.00
Doc fee: $189.00
Acqusition fee: $595.00
NJ tire fee: $7.50
First monthly fee: $368.00
Total due at delivery:
$3900.00
End of lease......
car purchase: $19412.60
extra milage: $0.15 per mile
is it a good deal?
Have been leasing for several years thru GMAC.
Several times I have been frustrated to discover that the juicy rebates and discounts they were offering to purchasers were not available to lease customers.
Have just become aware of the Smartbuy, the GMAC balloon financing program.
Since this is not technically a lease (or is it?), and you actually take title to the vehicle, does GMAC make their full purchase incentives available to Smartbuy customers?
Also, I believe you indicated that there is a GMAC pull forward, early out lease program for leases expiring prior to 7/31/2005.
When does this offer expire?
I'm sure your car has been wonderful, but I'm also sure that you are aware of their reputation for being extremely expensive to maintain out of warranty...
The big advantage of leasing now? You get out of your car before the warranty expires.. It would really be unfortunate to get stuck with a big repair bill just for an extra 3000 miles..
The lease terms are pretty good, but only $800 off MSRP? This is a really slow period... You might try to bargain a little harder on price.. Maybe, tell them you will go for it, if they will make your last payment?
regards,
kyfdx
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
I've never leased before, and was thinking about leasing a '05 Toyota Tacoma 4x2 Access Cab 4 cyl. 5-speed for 24 months/15K miles. I know nothing about leasing and was wondering what I can expect to pay a month to lease. Since this vehicle (4x2)is not available in the Great Lakes region according to Toyota, will this increase the costs since they would have to go into the South region to get one. I could put down $5K on the vehicle.
Thanks, Buckeyeman
regards,
kyfdx
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
I've found the information on this site to be extremely useful, especially the "the 10 steps a leasing a new car"
One area though i'm not quite sure about, is the sales tax.
I plan to lease a 2005, Nissan Altima in New York (11758 to be exact). I've been told by a friend that i'll only be liable for tax on the part that I lease. This is where i'm at a loss.
MSRP = 31,280
Cap Cost = 29,000
Net Cap Cost = 25,000 (4,000 approx. value of trade-in)
Residual = 16,250
How do i figure out what the total tax and % will be?
Should i incorporate it in the lease?
Thanks for the help!
The 9-2X isn't selling for Saab, shouldn't I be able to get a screaming deal on one?
On December 22nd, Acura introduced a special 2.9% financing rate for loans of up to 60 months on all of its models. If your credit is in good shape, you should be able to qualify for this promotion. In your post you mentioned that you would be interested in financing your MDX rather than leasing it if the deals were even close. This 2.9% financing rate is significantly lower than the special lease money factor that Acura is providing on this truck, so you may want to finance it instead of lease it.
Car_man
Host
Smart Shopper Forum
Car_man
Host
Smart Shopper Forum
Car_man
Host
Smart Shopper Forum
To be honest with you, getting out of one's current lease with payments remaining almost always hurts one's bargaining position on their next vehicle. Unless Audi is running some sort of official early lease termination program, which I do not believe it is, the dealer that you are working with is going to have to bury your two remaining $500 lease payments in your new deal, causing you to pay more money for it than if you had waited until the end of your current lease to get your new car.
Car_man
Host
Smart Shopper Forum
Car_man
Host
Smart Shopper Forum
Car_man
Host
Smart Shopper Forum
GMAC's SmartBuy program has similar restrictions to its SmartLease program in that GM's normal customer cash incentives can not be used in conjunction with it. GM provides different cash incentives for vehicles that are obtained through its SmartLease and SmartBuy programs. Having said this, its SmartBuy cash incentives are usually higher than its SmartLease cash incentives. Unfortunately, given the relative lack of popularity of balloon notes, even with the recent increased popularity of this sort of loan in states with vicarious liability issues like New York, I do not personally keep track of all of the details of automakers' balloon note programs.
General Motors' early lease termination program is currently scheduled to only run through January 3rd. It frequently runs this sort of program though and I would not be surprised if it reintroduced it shortly after its current offer expires.
Car_man
Host
Smart Shopper Forum
Car_man
Host
Smart Shopper Forum
Once you understand the basics of how leasing works, stop back in this discussion and I will be more than happy to work up a sample lease payment on the truck that you are interested in for you. In order for me to do so, I need you to tell me its full MSRP, including the destination charge, and an approximate selling price. You also can find this information out here at Edmunds.com. Visit the New Vehicle Pricing section of this site to find the MSRP. The pricing page for the Tacoma will also have information on its Edmunds.com True Market Value. This number will give you an idea of what sort of price you should pay for this truck. You may also want to stop by the following discussion to see what other community members who are in the market for or who have recently purchased similar trucks have paid: "Toyota Tacoma: Prices Paid & Buying Experience".
Car_man
Host
Smart Shopper Forum
Car_man
Host
Smart Shopper Forum
Car_man
Host
Smart Shopper Forum
As far as what you will have to pay at lease signing goes, you 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 increment, its lease acquisition fee of $600 (it is higher in New York and Rhode Island), and any down payment that you choose to make (ideally this would be $0).
Car_man
Host
Smart Shopper Forum
Car_man
Host
Smart Shopper Forum
I am glad I am now informed on this Ohio sales tax change but this is the deal breaker. I see no advantage to leasing my future Honda Pilot.
Hope you had a wonderful Xmas!
Would the MF remain .00159 for a 36 month lease of a 2005 Volvo XC 90 T6?
A4 1.8 Quattro Sedan, 6 Speed manual: $28,150
Special Edition Package: $ 1,200
Cold Weather Package: $ 650
Special Paint: $ 450
Total MSRP: $30,450
Invoice is : $28,231
Difference: $2,219
Please note that I did not include emissions and destination charges as the are the same MSRP=Invoice.
My question to you is how can I negotiate the Capitalize cost (MSRP)? How much is a fair price/profit over invoice to the dealer?
The advertised lease deal read as follows:
Down payment: $1,995
Ref. Security: $0.00
Acquisition fee: $575
1st Month pmt: $299
Total at inception: $2,869
42 months lease; $299 plus tax per month (I live in NJ).
is is a good deal as advertised? Should I negotiate the MSRP price on this deal?
Thank you.
Thank you both for your great insights.
This is what I'm thinking:
1. My lease expires end of February.
2. About 350 miles left until I hit 50,000 miles (putting me out of warranty).
3. I can use a very old minivan for the next 2 weeks (my son left it here while he's on vacation).
4. I'll be out of town for the first 2 weeks in February, knocking off 2 more weeks of Audi driving.
5. I've got a very old back up car (front wheel drive) that I can use.
6. My final answer to the problem: I'll drive the Audi only in really bad weather for the next 2 months, try not to reach 50,000 miles by the end of my lease period, turn the Audi in at the end of February, and then re-negotiate for a left over 2005 Audi.
...vicc
PS: Of course I'll make my annual pilgrimage to the Detroit auto show, but I'm 95% decided on the Audi.
Car_man
Host
Smart Shopper Forum
Car_man
Host
Smart Shopper Forum
Car_man
Host
Smart Shopper Forum
Car_man
Host
Smart Shopper Forum
I'm looking at the special lease programs that AHF is running for the 2005 RSX's - $199/mo for the base and $229 for the Type-S....I've never leased before, and as far as I can see, my best leverage is to get the price (cap cost) down as low as possible. Anyone have any tips on this? I have a $10,995 residual on the base, but can't find a residual $ on the S. I've already got online approval from AHF for $21K ( I guess a 740 FICO helps!)Thanks...!
Thanks very much for your fast resonse.
Please check the Dealer's 2005 RX-8 #'s below:
Dealer says he is throwing in the Spare Tire Kit.
MSRP with Options $32,899
36 Month Residual 52% ($17,107.48)
36 Month Money Factor .00295 (7.08% APR)
36 Month Payment $453 + 6% FL Sales Tax = $480.18
Dealer wants the following amounts up front:
1st Month's Payment $480.18
Bank / Acquisition $495.00
Registration & Tags $225.00
---------------------------
Total Up Front of $ 1200.18
---------------------------
According to my financial calculator the Dealer receives $28,582.61 from the lease for this car.
Also, my calculations reflect that this is $1,100 below their invoice price even after factoring in their 2% Holdback on the Base MSRP.
The question is are the any Incentives and/or Rebates on the 2005 RX-8 that we're just not seeing?
Please advise as soon as possible.
Thanks again.