Lease Questions - Ask Here

addi · January 2005

Car man,

Thank you for your prompt reply. Yes you did answer my question. I appreciate.

Addi.

stevny · January 2005

Thanks in advance. I've done searches and read articles, but still having trouble calculating. I'll try to provide enough info for a response.

Looking to compare a lease on 05 Pacifica AWD base model.

Looking for a 36 month lease with 10,000 miles/year.

In Nassau County, NY where I believe they charge sales tax (8.875%)on only leased value and not total cost of vehicle.

MSRP: 29,255

Invoice: 27,788

Sales Price: 27,500 (before cash rebate)

Cash Rebate: 2,000

Bonus Cash: 1,000

Net Sales Price after Rebate: 24,500

Zero money down besides rebate.

Any help GREATLY appreciated.

shopperboy · January 2005

CAR- MAN hey thanks alot for your time and energy! just making sure the deal looks good .. i do feeel comfortable with the people at lexus in bayridge..just making sure with other experts. have GREAT DAY..J

chigirlintexas · January 2005

Hi Car-man,

Thanks for the advice, of course, you are correct about her down payment on the lease. She has decided to go with an Accord coupe, and I found some numbers you had quoted to someone else on the forum, and she is happily tooling about in her new coupe, an automatic, the little chicken. I myself would love to have an Infiniti FX if only they would make it with a manual, but doubt it will ever happen. That would be my dream vehicle.

Now, for my next question. Hubby needs a new truck in the worst way. His '97 F150 is about to bite the dust. He is interested in a 3 year/15K mile lease on one of the following 2WD models: Dodge Dakota SLT Quad Cab (V-8 Auto) MSRP 27,870, Chevy Silverado Extended Cab 1500 LS MSRP 29,897, Nissan Titan Crew Cab MSRP 29,750 or Toyota Tundra Double Cab SR5 MSRP 27,927. Any advice/info you can offer is greatly appreciated!

Chigirl

iwantasaturn · January 2005

Car-man:



As always, thanks for all the great advice on ALL the topics. Can you please give me some feedback on this transaction? I think my dealer is trying to get an extra $80 per month from me. It's my understanding, and please correct me if I'm wrong, that the lease is based primarily off of the amount the car depreciates over the term of the lease. In my example below, the car is only depreciating $5,500, but the dealer is trying to charge me $300 per month (incl. taxes) in lease payments. According to edmunds.com, leasetips.com, and my own math skills, the lease payment should be about $215 per month (incl. taxes). What am I missing here? I thought that Saturn was a "no haggle" and "honest" dealership. Please enlighten me and let me know where they are screwing me over.



I've used round numbers to make things easy.



CAR: 2005 Saturn Vue 6cyl FWD

MSRP: $25000

GM Employee Price: $22,500

Incentives: $3,500 cash

Net Price: $19,000

Residual: $13,500

Depreciation: $5,500

Interest Rate: 2.09% (PS - According to the dealer, they don't use money factors at Saturn anymore. If I divide 2.09% by 2400, I get .00087 money factor)

Term: 36 mos.

Mileage: 12,000

Tax Rate: 7.75%

THANKS FOR YOUR ADVICE!!!!

kyfdx · January 2005

Just my in-expert opinion..

I get $181/mo. + tax..

That is an ultra-low money factor... I wonder if it is compatible with the $3500 incentive? If not, that could be the difference..

regards,

kyfdx

bicycle · January 2005

Hi,

Was wondering what this month's money factor is on a 3 year lease of a 2005 BMW 530 with 12,000 miles. Thanks,

Michael

ackerman · January 2005

Car_Man,

My daughter has decided on a BMW 2005 Z4, 2.5i with Auto transmission.

Please post the BMW 30 and 36 Month Lease Money Factors and Residuals along with anything you know about the BMW Lease Aquisition Fee along with any Dealer and Consumer Incentives and / or Rebates.

Do BMW Dealers receive a Holdback from the manufacturer?

Thanks again,

Don Ackerman

sfcharlie · January 2005

I was away and just read your message. Thank you very much.

soflkurtz · January 2005

YOUR REPLY SAVED ME MONEY!! thanks.

but just one more question. i got the .00179 for the new G35 i am looking at. i am also a returning IFS leasee. do i get a break off the .00179?

the reason i ask is that when i was lied to with the original numbers, the finance guy started with .00260 for new customers and .00245 for returning lease holders.

is there an official IFS discount for returning customers?

also, in my case the dealer is buying out the lease on my 2003 G35. is there anything i should look out for regarding this portion of the deal? i just want to make sure i am protected regarding my existing and soon to be former lease.

thanks again.

CarMan@Edmunds · January 2005

You're very welcome, Addi. Let me know if you have any other questions.

Car_man

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sfcharlie · January 2005

Car Man ... We avoided the Prius as a leased car, partly based on your comments. Thanks, again.

My wife is looking at a 2005 Mini convertible (base model, not S model). MSRP is $25,900. She would lease for 36 months. When you get a chance, would you please run the numbers on that and let us know what factors you think we should keep our eye on, when negotiating the lease? Thanks, in advance.

CarMan@Edmunds · January 2005

You're welcome in advance, stevny

. Thanks for providing such a detailed post. I would be more than happy to work up a sample lease payment on this vehicle for you. If you were to lease a 2005 Chrysler Pacifica AWD base model with an MSRP of $29,255 and a selling price of $24,500 through Chrysler Financial right now for 36 months with 12,000 miles/year, your zero down, pre-tax monthly payment should be around $304. I have not seen this vehicle's 10,000 miles per lease progam, but if Chrysler Financial allows a lease with that little mileage, its payment would probably be around $296.

Car_man

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CarMan@Edmunds · January 2005

No problem, shopperboy. Good luck in your negotiations and make sure to let us all know how everything turns out.

Car_man

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CarMan@Edmunds · January 2005

You're welcome, Chigirl. I am glad that everything worked out well with the Accord lease. Out of the trucks that you mentioned, the lease programs seem to be the most attractive on the Nissan Titan and Toyota Tundra. I would be more than happy to work up lease payments on any of the trucks that your husband is considering for you, if you provide me with approximate selling prices for them. You should be able to get a good idea of what you will have to pay for these trucks by visiting the Prices Paid discussion that appears here in the Forums. If not, at least provide me with the dealer invoice prices of the trucks as your husband wants them equipped and I can approximate selling prices for you to use in my payment calculations.

Car_man

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sfcharlie · January 2005

I'd like to run some numbers by you, from an existing lease, to see if you think this dealer gave a reasonable deal.

2004 BMW 325i, leased 9-15-2004, for 24 months

Don't see "MSRP" on lease, but one line reads "Agreed upon value of vehicle at leasing" and that is $33,490. Then there is a line "other charges" that is $525, so...

Gross Cap Cost = $34,015

Cap Cost Reduction = $394.57

Adjusted Cap Cost = $33,620.43

Residual Value = $24,221.60

Decline in Value = $9,398.83

Rent Charge = $3,262,32

Decline in Value + Rent Charge = $12,661.15

# payments = 24

So, monthly payment came to $527.55

Sales Use Tax = $38.26

Total Monthly payment came to $565.81

Please let me know what you think. We'll keep in mind for next lease.

Best regards,

SFCharlie

CarMan@Edmunds · January 2005

Greetings iwantasaturn. The first problem that I see with your calculations is the $3,500 cash incentive that you are using to reduce the capitalized cost of this truck. Where did you get that number from? Saturn is currently only providing $750 customer cash on the 2005 VUE and this cash cannot even be used in conjunction with its special lease program. Saturn's lease rate on the 2005 VUE 6-cylinder 2WD is indeed currently 2.09%. According to my calculations, if you were to lease this truck, with an MSRP of $25,000 and a selling price of $22,500 through GMAC right now for 36 months with 12,000 miles per year, its zero down, pre-tax monthly payment should be around $289. If you actually were able to get a $3,500 cash incentive that is compatible with this lease program on this truck, the only way that I can think of that this would be possible is GM Card points, it would reduce the monthly payment to around $188 before tax.

Car_man

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512gq · January 2005

I have someone who wants to buy the 02 Acura 3.5 that I am leasing through Honda Finance. I understand Honda leasing doesn't handle third party. Their site states only the person leasing or dealership can buy the car. Can the seller pay me and then can I transfer title to them?

Thanks

ackerman · January 2005

Car_Man,

Don't know if I posted the request below correctly. So here it is again.

#16334 of 16344 BMW 2005 Z4, 2.5i Automatic by ackerman Jan 20, 2005 (9:38 pm)

Car_Man,

My daughter has decided on a BMW 2005 Z4, 2.5i with Auto transmission.

Please post the BMW 30 and 36 Month Lease Money Factors and Residuals along with anything you know about the BMW Lease Aquisition Fee along with any Dealer and Consumer Incentives and / or Rebates.

Do BMW Dealers receive a Holdback from the manufacturer?

Thanks again,

Don Ackerman

stalnaker · January 2005

Car_Man,

This is my first post ever on Edmunds.com. I currently have a 2002 Acura CL that I am leasing from Honda. My lease is up on April 30. I am looking at a few Acura/Honda vehicles; mainly the Honda Pilot, Acura TSX, Acura TL, and Acura MDX. I don't need an SUV, but the 4WD would be nice in the winter and Honda is currently having lease specials on both the Pilot & MDX. The TSX & TL aren't discounted at the moment. My dream vehicle would be the TL. I would only get the TSX if I could get it for significantly less than the MDX. Here are my questions:

- You can lease the Pilot EX currently for $1999 down & $279/month, and the MDX base for $999 down & $399/month. I remember last year that Honda/Acura came out with better lease specials in March/April. Do you think I would be wise to wait until then since my lease isn't up until April 30? I would hate to pay for 2 cars at the same time, even for just 2 months. And I would kick myself if a better deal came out just a month later. Shouldn't they offer better deals because of the "inventory tax" sales?

- Hubler Acura in Indianapolis, Indiana, quoted me a price of $520/month + tax for a TL (auto, no nav) with nothing down except acquisition & first payment. Is this the best I can hope to do on this car?

- Is it reasonable to ask an Acura dealer to start with invoice and add a certain percent to get a better deal on these leases? They seem to base all of their prices on MSRP, since the vehicles are popular. I'm wondering if I could get them to come down on even the MDX special by giving me a better price on the vehicle, then maybe it would be less than $399/month with the $999 down.

FYI, I'm probably going to do any lease with nothing down except acquisition & first payment.

Thanks for your help!

Ernest

iwantasaturn · January 2005

Car-man-

Thanks very much for the reply. FYI - Here's the breakdown of the $3,500 that I am getting.

1) $750 additional GM employee discount

2) $750 "custonmer choice" rebate in lieu of financing

3) $1,250 customer allowance in lieu of 5yr/60k mile warranty

4) $750 "customer loyalty" for current GM car owners

I should be able to reduce the cap cost by this $3,500, right? Therefore making my monthly payment $188+tax, like you said. Please let me know if I can directly apply this $3,500 to the cap cost. Thanks again, Car-man!

jbaer · January 2005

Car_man -

Is the residual very different on a 36mo/15k lease for a Honda Accord Sedan EX with auto versus manual? I would much prefer the manual but I have heard that dealers hate them since nobody is buying them, so I worry that the residual would be a lot lower for the manual. On the other hand I would imagine I could get a better deal on the initial price of the manual. Thanks in advance.

Jeff

kyfdx · January 2005

Residual is the same.. if it is the same model otherwise..

regards,

kyfdx

(not the expert)

upndwn · January 2005

Thanks. Makes sense. I don't expect any money back. I posted to advise others what their rights were in an over 90 day early VW lease return.

Most times it is not prudent to do what I am doing, but the deal I received on my new lease is good enough for me to take the $700 hit. Anything beyond this, was coming at lease end anyway. I have no over miles and in two prior VW leased vehicle returns I have not had any damage charges. It will help that I still have a Passat Wagon on lease and am leasing a new A4.

stevny · January 2005

Thanks Car_Man !! (not in advance this time...)

Can you direct me to where I can obtain each of the numbers you needed to calculate the lease?

upndwn · January 2005

Thanks to everyone posting on this board and Car_man, especially. I really feel that I had as much information as I needed to make a great deal. One internet sales manager replied to me by saying that over the years he never had seen a letter like mine (analyzing lease terms). I learned it all here. This is such a great tool and I appreciate it.

THE CAR - 2005 A4 1.8T, Special Edition = metal/pearl paint + premium package (roof, leather, trip computer) + cold weather package + 17" wheel package + rear spoiler and power passenger seat.



MSRP on A4 with as much of same equipment as available = $32,470 per Audi website.



MSRP on SE = $31,320 per website on special offers. Savings from Audi = $1,150 Actually, adding the power passenger seat and rear spoiler, which are unavailable otherwise, probably makes SE a savings of $2,000.



Current special advertised has a $1,999 capital cost reduction and is $299/mos. for 24 months with $10,000 miles/year.



My deal:

Security waived, previous VW lessee

No capital cost reduction

same $575 acquisition fee

1st month's payment

T, T & Reg.

36 mos./15,000 miles/year

$354/mos, before tax

56% residual and 0.00025 Money Factor [per Car_man (THANK YOU!!!)]



I am getting 50% more miles/year than in the advertised special.



I contacted internet sales managers and could have saved $200 more in up front charges AND $3-4/month. I left money on the table to reward the salesperson who actually spent the time to sell me the car, find the one I wanted and go get it.

Anyone looking for my information on the state of the A4 market, right now, can look at my post under Audi/A4/Prices Paid/Post #283.

Thanks, again.

sreul · January 2005

Hello Car_man, I need your assistance, I am in southern california area and looking at 30mth/15k/0 down lease on a 2005 Audi A4 Quattro 1.8T/Premium/Ultrasport/Lighting/Bose.

My question is what is the current AFS money factor/residual on this car?

thanks in advance,

chigirlintexas · January 2005

Hi Car-Man,

Here's what we're interested in:

Lease 2WD versions 36 month 15k miles:

Nissan Titan SE Super Crew MSRP 29,580, Invoice 26662, Edmunds TMV 28,374 less Customer Cash 1000, Net 27374

Nissan Titan LE Super Crew MSRP 34580, Invoice 31165, TMV 33127 less Cust Cash 1000, Net 32127

Toyota Tundra SR5 Double Cab MSRP 30565, Inv 27416, TMV 29136, Cust Cash 1500, Net 27636

Chevy Silverado 1500 LS Extended Cab, MSRP 29,317, Invoice 25,752, TMV 26,153 less cust cash 2000, Net 24,153

Dodge Dakota Quad Cab SLT, MSRP 27,670, Inv 25,159, TMV 25,688, Cust Cash 500, Net 25,188

All are 2WD models. I know these are a bit all over the place in terms of price. Dakota is in there because he can get a V-8; other small trucks don't have that. We ruled out Ford due to our experiences with depreciation as well as deterioration, and the Ram, while a nice truck, just too darn expensive. Titan is also pretty pricey, but if the residuals are attractive, then leasing may be a possibility. My dad bleeds Chevy and has a new '04 that he got in November and is very happy with...so he wants us to consider one. Hubby wants something he can enjoy driving, will hold up and will not tank in value in a year or two. Finding out the residual values is the key to determining the most attractive lease deals, since money factors are often negotiable.

Any help/advice from you, Car-man, is appreciated. You rock! We would never do any kind of deal without checking out Edmunds first.

Thanks!

Chigirl

jerhot · January 2005

>I have someone who wants to buy the 02 Acura 3.5

>that I am leasing through Honda Finance. I

>understand Honda leasing doesn't handle third

>party. Their site states only the person leasing

>or dealership can buy the car. Can the seller

>pay me and then can I transfer title to them?

I did this a year ago, but you have to be careful. If you buy the car, you have to pay sales tax to the state, and then your friend has to pay sales tax again when they buy it from you.

I went to a car dealer, and for a fee, they handled the transition from me to my buyer. The con is that it cost me about $200. The pro is that I know the lease got paid off and the title transferred properly because the dealer did all of the paperwork.

trommelprof · January 2005

I work and own a second home in Wisconsin, but am a legal resident of Illinois with an IL drivers license. I want to display Wisconsin plates.

If I lease a car from a local Wisconsin dealer using my Wisconsin address,and the vehicle is primarily kept in Wisconsin, does anyone know if the car can display Wisconsin plates?

Thanks.

Terry (trommelprof)

cheng6991 · January 2005

How is the sales tax calculated for leasing a car in New York state ?

nupeskee · January 2005

Car Man

I would like to get the lease rate and residuals for an 2005 Honda Odyssey Touring and EXL with NAV and DVD for 36 months for 12k and 15K miles per year. Also if there are different lease periods that are longer or shorter that have better lease rates please provide those also. I don't have the sale price yet but I will calculate on my own once I get it. Thanks.

jlsellers · January 2005

I had so much fun picking up an X3 for my wife; this helps get her on board for the REAL vehicle. I understand that the new 2005 M3 currently has a .002 money factor and a 61% residual for 36 mos/12k miles/yr. Could you tell me what the same factors are for a new 2004 M3? Looks like there are some demos out there going for well off MSRP but treated as new by BMWFS. If I am off on the 2005 numbers please correct me.

rbarone · January 2005

car-man i live in new york.

twalter · January 2005

Car Man,

Coupld you please give me the money factor and residuals for a 2005 Altima 2.5 SL. I would like to see the 24 month and 36 month rates for 15K/year. Thanks

6422130 · January 2005

There seem to be a lot of ads in the Bay area for Sienna LE's for 36 months at low rates. Is there anything special for the XLE or XLE Limited for 36 or 48 months - ie can you provide the Residual and Money Factor for 36/48 at 15K.

Thanks much!

rickk1 · January 2005

Thank you Car Man for the info. Very helpful.

I think I'll wait a month or so and see if Lexus renews their support.

Rick

CarMan@Edmunds · January 2005

Hee you go, bicycle. According to the latest informaiton that I have seen, if you were to lease a 2005 BMW 530i through BMW Financial Services for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00125 and 62%, respectively.

Car_man

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CarMan@Edmunds · January 2005

Hey Don. Here is everything that you ever wanted to know about leasing a BMW Z4. If your daughter was to lease a BMW 2005 Z4 2.5i through BMW financial Services right now for 30 months with 12,000 miles per year, its base lease money factor and reisdual value should be .00100 and 60%, respectively. The numbers for an otherwise identical 36 month lease should be .00100 and 57%. BMW FS recently raised its lease acquisition fee to $625 in every state but New York. BMW is not providing any dealer cash on this car at this time. You can find out more information on dealer holdback and specifically what it is for BMW by clicking on the following link: Dealer Holdback. Keep in mind though that mentioning dealer holdback during negotiations only serves to annoy dealers and may cause your negotiations to break down. Your best way to figure out how much you want to pay for this car is to do some research to see what sort of prices others have paid for it recently. You may be able to do so by visiting the following discussion: "BMW Z4: Prices Paid & Buying Experience".

Car_man

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CarMan@Edmunds · January 2005

Hey Don. Here is everything that you ever wanted to know about leasing a BMW Z4. If your daughter was to lease a BMW 2005 Z4 2.5i through BMW financial Services right now for 30 months with 12,000 miles per year, its base lease money factor and reisdual value should be .00100 and 60%, respectively. The numbers for an otherwise identical 36 month lease should be .00100 and 57%. BMW FS recently raised its lease acquisition fee to $625 in every state but New York. BMW is not providing any dealer cash on this car at this time. You can find out more information on dealer holdback and specifically what it is for BMW by clicking on the following link: Dealer Holdback. Keep in mind though that mentioning dealer holdback during negotiations only serves to annoy dealers and may cause your negotiations to break down. Your best way to figure out how much you want to pay for this car is to do some research to see what sort of prices others have paid for it recently. You may be able to do so by visiting the following discussion: "BMW Z4: Prices Paid & Buying Experience".

Car_man

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CarMan@Edmunds · January 2005

No problem, sfcharlie. Let me know if you have any other questions.

Car_man

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CarMan@Edmunds · January 2005

You're very welcome, soflkurtz. I do not believe that Infiniti Financial Services provides any sort of incentives to loyal customers, other than perhaps a waiver of its security deposit requirement. This would explain the difference in the numbers that this salesperson quoted you earlier. Both of the money factors that he gave you probably were for leases without any security deposit. I believe that IFS will waive its security deposit requirement for non-returning lessees in exchange for an increase of around .00015 in the money factor that is used to calculate your vehicle's payment. Your dealer should know how to get you out of your current Infiniti lease early without causing any problems. Of course, doing so will cause you to pay more for your new vehicle than if you had waited until the scheduled end of your current lease.

Car_man

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CarMan@Edmunds · January 2005

You're welcome, sfcharlie. I would be more than happy to give you an idea of what the lease program is currently like on the new vehicle that you are considering leasing. If you were to lease a 2005 Mini Cooper Convertible through its captive finance company right now for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00250 and 60%, respectively.

I would be more than happy to calculate a sample lease payment on this car for you, however in order for me to do so I need you to tell me what its selling price is. Always remember that the selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. You should be able to get an idea of how much you should pay for this car by visiting the following discussion "MINI Cooper: Prices Paid & Buying Experience". In many parts of the country, the market for Minis is fairly soft right now, especially for convertibles. This may not be as much the case with convertibles in California though. If you can't come up with an approximate selling price, at least provide me with this car's dealer invoice price and we can approximate a selling price for the purpose of working up a lease payment.

Car_man

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CarMan@Edmunds · January 2005

Hey SFCharlie. It is going to be difficult for me to evaluate the deal that you got on a vehicle that you leased back in September. Not only would I need to know this car's full MSRP, but I would have to know what its lease program was like on this car back then.

Car_man

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CarMan@Edmunds · January 2005

Hello 512gq. You can't transfer the title of a vehicle that you don't own to another individual. The bank that you are leasing your Acura through owns it until you or the dealer that you are working with purchase it from them. Even though American Honda Finance Corp. will not directly sell this vehicle to a third party, you may be able to get an Acura dealer to purchase it from AHFC and then sell it to your friend at a small profit.

Car_man

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CarMan@Edmunds · January 2005

Welcome aboard, Ernest. It costs money to get out of a lease early. Similarly, it will be expensive for you to pay to lease two vehicles at the same time. It is almost always better to wait until the scheduled end of your current lease to lease a new car or truck. I suspect that there is not any urgency to lease a new Pilot or MDX right now. There is no way to predict what automakers will do with their future incentives programs with 100% accuracy, but, Honda will probably still be offering lease support on these trucks when your current lease ends.

I would be more than happy to estimate a lease payment or two for you on the vehicles that you are interested in. However, in order for me to do so, I need you to provide me with the MSRP, selling price of the vehicle or vehicles that you want, along with how long you want to lease them for and how many miles per year you need to be able to drive them. There is a very good chance that you would be able to negotiate a lower selling price on the Acura and Honda models that you are considering than the ones that are being used to calculate their advertised lease payments.

Car_man

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CarMan@Edmunds · January 2005

Thanks for the additional information. You would indeed be eligible for several cash incentives if you were to lease this truck. This cash would be used to reduce its capitalized cost. The only one of the incentives that you mentioned that I do not believe can be combined with Saturn's lease program for the VUE is the "$750 'customer choice' rebate in lieu of financing."

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CarMan@Edmunds · January 2005

Jeff, you are right that some banks do indeed provide lower residual values on vehicles that have manual transmissions. However, I do not believe that the type of transmission that an Accord has an impact upon its lease program when leased through AHFC.

Car_man

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CarMan@Edmunds · January 2005

No problem, stevny. I am not aware of any source that provides information on manufacturers' current lease programs to the general public. I am usually able to give community members an idea of what the money factor and residual value should be like on the vehicle that they are interested in if they ask.

Car_man

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CarMan@Edmunds · January 2005

You're welcome, upndwn. I am glad that we were able to help you out. Thanks for sharing the details of your deal with all of us.

Car_man

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