Lease Questions - Ask Here

sbxyz · January 2005

Hi,

I am looking to get a 36mth 12k lease for Accord Auto EX. Currently have been using Honda Finance, looks like I can get a EX for around 21300, msrp 23415. What should I expect to pay for a lease with this price living in MA?

Thanks

ajpbf7 · January 2005

thanks carman, I appreciate it.. Thoose are pretty strong #'s considering it is a chevy. Let me know on the Tc if possible and has Ford come up with better MF's on the Mustang for this month?

rnw · January 2005

Car man, I appreciate all your help. I did close this deal and signed the lease. I will certainly recommend this forum to others that seek advice.

Thank you,

Ray

jeffsauls · January 2005

Car_Man

Just a reminder on this car. I posted last week looking for residual and money factors for 12k/yr for 24, 30 and 36 months. This would be for an A4 Special Edition Quattro w/automatic. Thanks for your assistance.

wagagog · January 2005

Hi Car Man,

I noticed that Subaru has continued their "Sign and Drive Lease Offer" through January 31st. They are advertising a 2005 Legacy GT Sedan w/manual transmission for $315 w/0$ down, no first month's payment, and (I think) no security deposit. Problem is, some of the details were missing, and I hoped you might be able to fill them in.

For instance, the lease term isn't mentioned, and not surprisingly, neither is the residual or MF. But it sounds like a pretty decent deal.

This is what I'm looking for:

2005 Legacy GT wagon w/manual or a 2005 Legacy 2.5i wagon w/manual. (NOT the sedan)

Do you know what the residual % and MF are for this car? I'm in Pittsburgh, PA. 12k miles per year and a term of 36-48 months (I would go with whatever term had the best numbers).

Also, there must be some kind of rebate or dealer cash to get the monthly payment down to the advertised $315. Do you know what that is/how they arrive at the $315 figure?

You helped me out with my last car (03 Civic Si), and we got a great deal. I would describe myself as a "very experienced" lessee. Thanks again for your past help and for all the great assistance you provide in this forum.

joe44 · January 2005

Car Man-

Based on your figures of money factor and residual, please take a look at this lease for corrections/ approval of a good deal.

2005 GMC Yukon

MSRP 43380

Negotiated Price 38105

Minus Rebate 2500

Minus Dealer Loyalty 750

Cost 34855

Using 53% Residual, Zero Down, 36 Months

Pretax Lease of $461

Do my numbers sound right?Am I missing anything? Does this sound like a good deal?

THANKS

sailorstac · January 2005

Have the 2005 Volvo lease programs been released yet? I'm looking at a 36 month lease on a T6, and comparing it to a 36 month lease on a BMW X3 3.0, if you could provide any insight on 2005 lease programs for both. Thanks!

jbaer · January 2005

Forgive me for my ignorance but I have never bought a car before. This June I will need to lease 2 new cars. We have already decided on an Accord EX sedan and a Pilot EX. Unfortunately we will also be moving to Seattle at this time and need the cars to be ready for us when we get there. What is the best way to line up a lease in a city 2k miles away? Should I just fax all the dealers in the area one month ahead of time and ask for their best lease deals? Is that enough time? Call the dealers directly? Anybody ever used leasecompare.com? Any advice would be greatly appreciated. Thanks.

ltrojan · January 2005

Hi CarMan,

This is going to be my first time leasing a car and I need some help. I'm currently considering the 2005 Mercedes C230 sedan OR a 2005 Volvo S40 T5 FWD. What is the money factor and residual for:

36 or 39 Month Lease

12K miles per year

with a FICO score of 730

Are there any dealer incentives or rebates out yet for the month of January?

Thanks for all your help.

CarMan@Edmunds · January 2005

No problem, Don. Here is the information on the latest car that you are considering. Mercedes-Benz is not currently providing any sort of lease support on the SLK. As a result, if you were to lease one through Mercedes-Benz Credit, you would have to use its standard lease money factors. Its standard factor for consumers who qualify for its "Tier 1" credit tier is .00310 for 36 and 39 month leases. Its 36 and 39 month, 10,000 miles per year residual values for the 2005 SLK 350 are currently 65% for both terms.

Car_man

Host

Smart Shopper Forum

CarMan@Edmunds · January 2005

Hello wifrbr. Ford carried over its December lease program through yesterday, January 10th. It is scheduled to publish a new program today. Please feel free to check back with me in a day or two and I should be able to give you an idea of what its new lease program is like on the 2005 Escape. I have not seen Mazda's current lease program on the Mazda6 yet either. I'll do some digging and see what I come up with for you. Mention the 6 in your reminder about the Escape and i will fill you in on what I have been able to find out about it as well. Talk to you soon.

Car_man

Host

Smart Shopper Forum

CarMan@Edmunds · January 2005

Hi wifrbr. A number of vehicles have attractive lease programs available on them at this time. What sort of vehicle are you in the market for? A car? A truck? What are your needs and likes? Good cars that have pretty good lease programs available on them now include the Honda Civic, Honda Accord, Toyota Corolla, Saab 9-2X, Saab 9-3, Toyota Camry, Acura RSX, and the Nissan Altima to name a few. This is just the tip of the iceberg though. If you can be a little more specific about your needs I may be able to narrow down the list for you.

Car_man

Host

Smart Shopper Forum

CarMan@Edmunds · January 2005

You're welcome again, prince812. Vehicles' security deposits are always their monthly payments rounded up to the nearest $25 or $50 increment. The payment on the Acura that you are considering actually increases when one changes from a 36 to a 39 month lease because the way its residual values are currently structured, there is a significant drop, I believe around 4 points, between the residuals for these terms. The drop in resides between these two terms is not as steep on the ES 330. I have not seen the TL's 42 month lease program so I can not help you out there. Lexus' lease program on the ES 330 is definitely more attractive than Acura's program on the TL at this time.

Car_man

Host

Smart Shopper Forum

CarMan@Edmunds · January 2005

Tha lease rate, residual value, and lease cash that I mentioned in my previous message to you are good on all 2005 Cobalt models, stever12. The 4 year, 15,000 miles per lease rate and residual value for this car should be 3.5% and 47%. Its residual value would be 3% higher for a lease with only 12,000 miles per year.

Car_man

Host

Smart Shopper Forum

CarMan@Edmunds · January 2005

Here is the information that you are looking for, nupeskee. According to the latest info that I have seen, if you were to lease a 2005 Lexus GX 470 without navigation or the rear entertainment system though Lexus Financial Services for 36 months with 15,000 miles per year, its base lease money factor and residual value should be .00185 and 57%, respectively for consumers who qualify for its "Tier 1" credit tier. The numbers for an otherwise identical 39 month lease would be .00185 and 53%. The numbers for an otherwise identical 48 month lease should be .00185 and 47%. Its residual values for leases with only 12,000 miles per year would be 2% higher.

Car_man

Host

Smart Shopper Forum

CarMan@Edmunds · January 2005

I am glad that you have enjoyed this discussion so much, redman4. Let's take a look at the lease program for the vehicle that you are considering. According to the latest information that I have seen, if you were to lease a 2005 Acura MDX Touring w/Nav through American Honda Finance Corp. right now for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00196 and 61%, respectively. Acura is not providing lease support on 42 or 48 month leases of this model, but for the sake of comparison, its 48 month numbers would be .00210 and 53%. Using these numbers, an MSRP of $42,845, and a selling price of $39,200, I come up with a zero down, pre-tax monthly payment of around $491 for 36 months and $474 for 48 months.

Car_man

Host

Smart Shopper Forum

CarMan@Edmunds · January 2005

Your vehicle's lease-end purchase option price should be listed right on its contract, regardless of what it is actually worth on the open market at this time. It might be called "residual value." In order to see if you will be able to purchase your leased vehicle for less than this price, you have to contact the bank that you are leasing it through directly.

Car_man

Host

Smart Shopper Forum

CarMan@Edmunds · January 2005

Hi sbxyz. Let's work up a sample lease payment on this car for you and see what we come up with. According to my calculations, if you were to lease 2005 Honda Accord EX Sedan without navigation with an MSRP of $23,415 and a selling price of $21,300 through American Honda Finance Corp. right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be right around $275, which is a heck of a deal for a nice car.

Car_man

Host

Smart Shopper Forum

CarMan@Edmunds · January 2005

You're welcome, Ray. Congratulations on your new ride.

Car_man

Host

Smart Shopper Forum

CarMan@Edmunds · January 2005

Thanks for the reminder, jeffsauls. Here is the info that you are looking for. If you were to lease a 2005 Audi A4 1.8T Special Edition Sedan through Audi Financial Services right now for 24 months with 12,000 miles per year, its base lease money factor and residual value should be .00025 and 69%, respectively. The numbers for an otherwise identical 30 month lease should be .00025 and 63%. The numbers for an otherwise identical 36 month lease should be .00025 and 58%.

Car_man

Host

Smart Shopper Forum

CarMan@Edmunds · January 2005

Hi wagagog. Subaru is still providing a decent amount of lease support on the 2005 Legacy in January. I will make some calls and see if I can find out the exact money factors and residual values for the models that you are interested in for you. Please post a reminder in this discussion for me tomorrow and I will be more than happy to fill you in on what I have been able to find out for you. Talk to you then.

Car_man

Host

Smart Shopper Forum

CarMan@Edmunds · January 2005

Hi joe44. the first problem that I see with your calculations is that you are deducting the $2,500 customer cash that GM is providing on the 2005 GMC Yukon from its capitalized cost. This cash cannot be used in conjunction with GMAC leases. Its cash incentive for leases of this truck through GMAC is only $1,000. Using this lower cash incentive, a 5.5% lease rate, a 53% residual value, and the prices that you mentioned in your post, I come up with a zero down, pre-tax monthly payment of around $530.

Car_man

Host

Smart Shopper Forum

CarMan@Edmunds · January 2005

Yes, Volvo has published its new January lease program, sailorstac. If you were to lease a 2005 Volvo XC90 T6 through Volvo Finance right now for 36 months with 15,000 miles per year, its base lease money factor and residual value should be .00121 and 58%, respectively. This compares with a money factor and residual value of .00125 and 57% for the 2005 BMW X3 3.0 leased for the same term. As you can see, these two trucks' lease programs are very similar.

Car_man

Host

Smart Shopper Forum

CarMan@Edmunds · January 2005

Hi jbaer. If I was in your situation, the first thing that I would do is thoroughly research how leasing works. You can gain a great deal of knowledge on this subject by reading the following articles that are available here at Edmunds.com: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment. Once you have a general understanding of how leasing works, research how much money you want to pay for these vehicles on this site by looking up their Edmunds.com True Market Values in the New Vehicle Pricing section of this site or by visiting the following discussions: "Honda Accord: Prices Paid & Buying Experience" and "Honda Pilot: Prices Paid & Buying Experience". When you have a good idea of the MSRPs and selling prices of these vehicles, stop back here and I can help you estimate their lease payments. Then armed with this information you can call several dealers near your new home, explain your situation to them, negotiate an attractive deal, and arrange to pick up your new car and truck when you get to the West coast.

Car_man

Host

Smart Shopper Forum

CarMan@Edmunds · January 2005

Hello ltrojan. If you were to lease a 2005 Mercedes-Benz C230 sedan through Mercedes Benz Credit right now for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00220 and 59%, respectively. The numbers for a 39 month lease of this car would be exactly the same.

If you were to lease a Volvo S40 T5 FWD through Volvo Finance at this time for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00185 and 53%. The numbers for an otherwise identical 39 month lease of this car should be .00185 and 50%.

Neither of these cars currently have dealer cash incentives on them that can be combined with their lease programs.

Car_man

Host

Smart Shopper Forum

storkey7 · January 2005

Hello,

Can you tell me how much I should be paying a month for an EX V6 Accord for 36 months 15,000 miles and I live in NY So I belive the sales tax is around 8.25.

Thank You,

Marissa

llil19 · January 2005

Is it a problem? I just found out (due to misinformation by AAA insurance agents)I did not have insurance on a new car I leased and took possession of 7 days ago. The policy went into effect today. Does this present a problem with the lease? Has anyone been in this situation before? No claim was made during this time the vehicle was uninsured but I'm just wondering if I have violated any gap waiver or lease stipulations in any way.

sailorstac · January 2005

What difference would it make in the residuals at 12,000 miles per year, please? Thank you!

gwudc · January 2005

Car_Man,

First, just wanted to say thanks for your help with a previous question about an Acura TSX.

Also, I was wondering if you could provide the money factor (assuming previous Honda lease, I think it is same as having security deposit) and the current residual for an 2005 Acura TL, NO NAVIGATION, for 36,39, and 42 months, assuming 12,000 miles per year.

Thanks so much for the help!

jbaer · January 2005

Car_Man -

Thanks for your advice. TMV price on the Pilot we want is $29,200. We are looking for 15k a year miles and a 4yr lease. The accord TMV price is $23,000 and again we are looking for 15k a year and 4yr lease.

Another question for you is this. AHFC is offering leasing on the same Pilot EX for $279mo x 36 months with 12k a year and a 2k down payment. The accord for $259mo x 36 months with 12k a year and a 1k down payment. Now I know in general you don't want to put any money down so could I go to the dealer and ask them to add the down payment into the monthly but basically get that same deal? By my math the Pilot would then be $333mo with no down and the accord $286 with no down payment.

Thanks for all your help !!

kyfdx · January 2005

Add in about $3 per month for a higher finance charge... and you will be right on the money... No money down increases the amount subject to the money factor.. You have a good handle on it.

jwilliams2 · January 2005

Don't forget to add the upcharge for the increase to 15k miles...

ante148 · January 2005

Car-Man-

I am in the market for a used A4. I won't be driving this car during the week or to work. I have been shopping around on the web and the approx price of certified used A4's are approx $24K with around 30K miles. With 20% down this will cost me about $400 a month for 60 months.

On the other hand they are advertsing the same cars described above with leases in the $275 per month range.

What is the best way to go? Is leasing a used car appropriate.

Thanks,

mike

dieselg4 · January 2005

Hello CarMan,

I'm nearing the end of my lease on a 2002 VW Golf GLS TDI. This was my first leaseever, and although I like the golf, I'm ready for something more weather ready (i'm in SW Pennsylvania) and with more power (the golf has 90HP). I like the hauling capability of a hatch/wagon and really like the interior of the Forester. I saw on Subaru's website the "sign and drive" $0 down $249 per month leaseon a Forester X manual. I don't drive alot (<8000 mi/year) and prefer a manual, and would like ABS, so the Subaru seems perfect. 2 questions - would I need steller credit to get this type of promotion? What kind of residual can I expect at the ened of the lease? I'd assume an all new Forester would be out by 2008. Thanks in advance.

prince812 · January 2005

Car_man,

I'm almost there. Thanks to you, I am feeling more and more like a smart shopper.

What makes the Lexus lease program more attractive right now than the Acura program? Residual? Money factor? Other factors?

dieselg4 · January 2005

Wagagog -

Saw your post on the Legacy - I'm also in Pittsburgh. Just curious, have you shopped around any Pittsburgh dealers yet? I've only done Sunday afternoon drive throughs to peruse inventory. I was also interested in the "sign and drive", especially since it is no money down. I'm looking at the forester X, though.

CarMan@Edmunds · January 2005

Hello Marissa. You never mentioned the selling price or MSRP of the car that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the car that you want to lease and its MSRP you don't know how much of a discount you are being given on it. The second reason that one needs these prices is that they are necessary to calculate a 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 and MSRP are.

Car_man

Host

Smart Shopper Forum

CarMan@Edmunds · January 2005

Hi llil19. while it definitely is dangerous, and in some cases illegal, to drive a new vehicle without insurance, I do not think that you have a problem with the week gap in coverage for your leased car if the bank that you were leasing it through did not say anything to you about this situation already.

Car_man

Host

Smart Shopper Forum

CarMan@Edmunds · January 2005

Sailorstac, Volvo Finance's residual values for vehicles lease with 12,000 miles per year are 2% higher than its 15,000 miles per year residual values.

Car_man

Host

Smart Shopper Forum

CarMan@Edmunds · January 2005

You're very welcome, gwudc. Here is the information on the TL that you are interested in. If you were to lease a 2005 Acura TL without navigation through AHFC right now for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00235 and 60%, respectively. The numbers for an otherwise identical 39 month lease should be .00235 and 56%. It have not seen this car's 42 month numbers.

Car_man

Host

Smart Shopper Forum

CarMan@Edmunds · January 2005

No problem, jbaer. You definitely can get the same lease specials that Honda is advertising on the 2005 Pilot and 2005 Accord without making any sort of down payment. As you suspected your monthly payment would be a little higher if you don't make any cap cost reduction though. The payments for these vehicles without down payments would not be calculated by dividing the down payment by the number of months and adding it to the lease payment. The vehicles' lease payments would have to be recalculated based upon a higher capitalized cost. Consumers are actually frequently able to beat the selling prices that manufacturers' advertised lease payments are based upon by shopping around.

Thanks for providing these vehicles' TMVs. If you provide me with their full MSRPs, including destination charges, I would be more than happy to calculate some lease payments for you.

Car_man

Host

Smart Shopper Forum

CarMan@Edmunds · January 2005

Greetings Mike. The main problem with leasing used vehicles is that given the lack of support that many manufacturers provide on used vehicle leases and the high level of support that they provide on new vehicle leases, used vehicles often end up being as expensive, or even more expensive, to lease than similar new vehicles. Having said this, a number of manufacturers do provide support on the leases of Certified Used Vehicles, especially European luxury brands. If I was going to lease this A4, I would want to know exactly what lease money factor is being used to calculate its lease payment. The money factor will tell you essentially what interest rate you are being charged. You can convert a lease money factor into an approximate lease money factor equivalent by multiplying it by 2400.

Car_man

Host

Smart Shopper Forum

CarMan@Edmunds · January 2005

Hello dieselg4. I am not sure exactly what credit rating is required to qualify for Subaru's best lease program, but if your credit is in decent shape you should qualify for it. I am familiar with the advertised lease on the Subaru Forester that you mentioned in your post. It is a 4 year lease on a 2005 Subaru Forester X that allows 12,000 miles per year. The lease payment for this vehicle was calculated using a lease money factor of .00090 and a residual value of 41%. This means that you are paying an interest rate of around 2.16% on this lease, which is very attractive. If you wanted to purchase this vehicle at the end of your lease, its lease-end purchase price would be 41% of its $21,890 MSRP, or around $8,975, assuming that Subaru's captive finance company will not negotiate this number with you.

I would be more than happy to calculate a sample lease payment on the exact Forester model that you are considering. Let me know the full MSRP, including destination charges, and an approximate selling price (the selling prices of leased vehicles are negotiable), for the Forester X that you want as you want it equipped and I will work up a payment for you.

Car_man

Host

Smart Shopper Forum

CarMan@Edmunds · January 2005

I am glad that you feel as though you have learned a lot from this discussion, prince812. The two factors, other than selling price and MSRP, that have an impact upon lease payments are vehicles' lease money factors and residual values. A high residual value is desirable because the higher a vehicle's residual value percentage is, the less depreciation you pay for in your lease. A high residual value will make your leased vehicle more expensive to purchase at lease-end, but who cares if your monthly payment was low.

The lease money factor essentially is the interest rate that you are paying in your lease. Naturally, the lower a vehicle's money factor is, the less interest you are paying, and the lower your lease payment will be.

The reason why I stated that the lease program on the Lexus ES 330 is more attractive than the lease program on the Acura TL right now is because the Lexus has a much lower money factor than the Acura. The money factor on a 3 year lease of an '05 TL is .00235. this compares with a 3 year money factor of .00145 on the '05 ES 330. The TL's money factor is .00090 higher than the ES 330's. This is equivalent to around 2.15% in interest. The TL's residual values are higher than the ES 330's though so one has to take this into account when evaluating these programs.

Car_man

Host

Smart Shopper Forum

jbaer · January 2005

kyfdx and jwilliams2 - thanks for the tips!

dieselg4 · January 2005

Thanks CarMan, they leave alot of that information out on their website.

The specific Forester I'm interested in would be exactly that - the base X model, manual, @ $21,890.
However, if the payment isn't much more, and the terms are reasonable, I'd certainly split for an XS for the substantial upgrades (heated mirrors, better fabric, alloys, 6-CD changer.) I'd add the moonroof (+1000) for a grand total of $25,270. Edmunds lists the XS w/ moonroof TMV price as $23883, and there is a $1300 rebate from Subaru for a final price of $22583. I would prefer a 3 yr lease but 4 is ok. I'd go with 4 to get the special rate on the X model anyway.

As for a conventional lease on the X model, I priced a Manual X w/ Equip Group 3, Prem. Sound Pckg 2, Lthr Shift Knob @ $22480. TWV is $21124, w/ $2000 rebate from Subaru comes to $19124. Again, I'd prefer 3 yrs, but 4 is acceptable.

Thanks again!

storkey7 · January 2005

Hello,

The MSRP is $26,800. The TMV is $24,744 and alot of people on Edmunds have been saying that they have been purchasing them for like $23,450. Also could I figure out the risidual value or is that something that is out of my hands?

Thank You for your help.

Marissa

prince812 · January 2005

Car_man,

1. Which of the two factors- money factor or residual- is the most advantageous in the overall picture when considering the lease? In my scenario is it better to take the lower money factor offered or the higher residual?

2. Have you heard anything about the selling prices of the TL vs. the ES330 as far as their willingness to negotiate? I am not sure if one or both of them are selling for MSRP or above. If so that will affect the decision. I am in Northern California near Sacramento.

Thanks once again.

wagagog · January 2005

Hi dieselg4,

I just did the Sunday thing, as well . . . at Langston. Sounds like the Forester X has a good MF (.0009) and with that rebate, you're bound to get a lot of car for the money. We have had 3 much loved Foresters in the family and I helped negotiate leases on two of them. Very functional haulers, although a bit tall/soft for my taste. My wife and I are used to sportier rides, and she feels uncomfortable driving the Forester. That's why the Legacy (esp. GT) appeals to me. I have heard that the handling on the 05s is excellent. I'll find out for myself some time this week.

Some notes from my experience with the Forester:

Great cargo room, but terrible rear seat leg/foot room. My 03 Civic Si has more legroom in back. If you are putting adults in the back seat regularly, I highly recommend testing an Outback or Legacy. The Legacy/Outback has a bit more legroom in back. But if cargo is a bigger concern, the taller Forester is a great choice. Also, My father (who owns a Forester) says the gas mileage is not great, certainly lower than advertised.

Other than that, I highly recommend it. But if you are going to put adults in the back seat, I guarantee it will be painful for them. Even my 5'1' wife complains.

I hope the money factor on the Legacy is as good as the Forester. I was surprised to hear from Car Man that the 4 year residual on the Forester is only 41%. The other (older) Foresters I've negotiated had better residuals. The upside to the low residual (as C_Man mentioned) is that if you plan to buy after your term, you get a great deal on a "used" car. Downside, of course, is higher lease payments . . . about $5 or so more for each 1% lower in residual value.

Good luck, and please let us know how the buying experience goes.

wagagog · January 2005

Hi Car Man,

I'm just posting the requested reminder on the 2005 Legacy GT and 2.5i wagons in Pittsburgh, PA. Any word yet on the money factors, residuals, and rebates/dealer cash for 36-48 month terms?

I was able to verify that the advertised lease special on the Legacy GT sedan ($315/month) is a 48 month term. The wagon's weren't given a monthly payment number, but the Subaru site says the "Sign and Drive Lease Offer" is good on "All Legacy models (excludes Outback)", so I'm hoping the deal on the wagon is good, too.

Thanks for looking into this. I'm always amazed at (and grateful for) the amount of work you do for all of us bewildered consumers.

Lease Questions - Ask Here

Comments

Helpful Tools

Most popular vehicles