Lease Questions - Ask Here

CarMan@Edmunds · January 2005

Here is the information that you are looking for, sreul. If you were to lease a 2005 Audi A4 Quattro 1.8T (not the Special Edition version) through Audi Financial Services right now for 30 months with 15,000 miles per year, its base lease money factor and residual value should be .00015 and 61%, respectively.

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CarMan@Edmunds · January 2005

Hey Chigirl. Let's work up a few of sample lease payments on these trucks for you and see what we come up with.

According to my calculations, if one was to lease a 2005 Nissan Titan SE Super Crew 2WD with an MSRP of $29,580 and a selling price of $28,374 (Edmunds.com TMV, the customer cash is not compatible with NMAC leases) through Nissan Motor Acceptance Corp. right now for 3 years with 15,000 miles per, its zero down, pre-tax monthly payment should be around $437.

An otherwise identical lease of a Nissan Titan LE Super Crew with an MSRP of $34,580 and a selling price of $33,127 (TMV) should have a payment of around $509.

If one was to do an otherwise identical lease of a 2005 Chevrolet Silverado 1500 LS Extended Cab with an MSRP of $29,317 and a selling price of $24,153 (TMV - $2,000 lease cash) through GMAC right now, its payment should be around $345. You mentioned in your post that your father currently has a Chevrolet. If that is the case, he would be eligible for an additional $750 loyalty incentive that would drop this truck's payment to around $323.

If your father was to do an otherwise identical lease of a 2005 Dodge Dakota Quad Cab SLT with an MSRP of $27,670 and a selling price of $25,188 (TMV - $500 lease cash), its payment should be around $388.

I believe that you mentioned that you live in Texas. Texas is in Toyota's Gulf States region. Unfortunately, I have not seen its lease program for the 2005 Tundra in that area so I cannot calculate a lease payment on this truck for you.

I suspect that on all of these models one should negotiate a selling price that is below the Edmunds.com True Market Value fairly easily.

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CarMan@Edmunds · January 2005

Hi cheng6991. I am not personally familiar with how sales tax is calculated in New York, but you may be able to find out by visiting one of the following sites: New York State Department of Motor Vehicles Internet Office or New York State Department of Taxation and Finance target=_blank>.

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CarMan@Edmunds · January 2005

Here is the information that you are looking for, nupeskee. According to the latest information that I have seen, if you were to lease a 2005 Honda Odyssey Touring and EXL with NAV and DVD through American Honda Finance Corp. right now for 36 months with 15,000 miles per year, its base lease money factor and residual value should be .00250 and 57%, respectively. The residual value for an otherwise identical lease with only 12,000 miles per year would be 2% higher. There doesn't seem to be any length lease that has a significantly more attractive lease program than this one.

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CarMan@Edmunds · January 2005

Hey jlsellers. Ahhh the BMW M3. I love this car. I can't understand why they quit offering a sedan version though. I might own one if they did. I guess the demand just wasn't there. Oh well. I haven't seen BMW Financial Services' lease program for 2004 models lately. I am not even sure if it is still leasing '04s. A number of captive finance companies have stopped doing so. If BMW FS is, there definitely is not any lease support. That means that you would have to use its standard lease money factor of .00250. The numbers that you mentioned for the 2005 version of this car are right on the money.

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CarMan@Edmunds · January 2005

Ahhh, the last piece of info. OK, here we go. According to my calculations, if you were to lease a 2005 Chevrolet Blazer 4-Door with an MSRP of $30,200 and a selling price $27,751 of through General Motors Acceptance Corp. in its Northeast region right now for 3 years with 12,000 miles per, its zero down, pre-tax monthly payment should be right around $385.

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CarMan@Edmunds · January 2005

Greetings twalter. Here is the info that you are looking for. If you were to lease a 2005 Nissan Altima 2.5 SL through Nissan Motor Acceptance Corp. right now for 2 years with 15,000 miles per, its base lease money factor and residual value should be .00199 and 67%, respectively. Its 3 year lease program is much more attractive and will provide you with a much lower lease payment. Its base factor and resid for a 3 year, 15k lease of this car should be .00082 and 57%.

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CarMan@Edmunds · January 2005

I have seen Toyota's lease program for your area, its San Francisco region, and I would be more than happy to help you out, 6422130. If you were to lease a 2005 Toyota Sienna XLE through Toyota Financial Services right now for 36 months with 15,000 miles per year, its base lease money factor and residual value should be an amazingly low, for this model anyways, .00061 and 62%. The money factor for an otherwise identical lease of an '05 Sienna Limited would be the same, but its residual value would drop to 57%. This special lease money factor is only available for leases up to 36 months, so it doesn't make sense to lease this van for any longer than that.

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rick11 · January 2005

I'm interested in finding a car for about 6 months. If I buy the end of a lease on one of these sites, is it as simple as:

(1) Pick up the car from the person

(2) Make the final 6 month or so of monthly payments

(3) Return the car to someone at the end of the 6 months

?

Or are there hidden costs, effort I'm not aware of?

Like

(a) repairs

(b) tires

(c) oil changes

(d) ending fees

(e) who pays for a small ding in the car?

etc?

Thanks,

Rick

chigirlintexas · January 2005

Hi Car-man,

Thanks for the great, detailed info. Now comes the sticky part. We have to trade my hubby's '97 F-150. We had to refinance it last year because we had to put in a new engine, so we are about (gulp!) $6K upside down. Yes, I know one of the options is to keep it and pay it off, but we are afraid the tranny is next to go, so we are prepared to pay a higher lease payment for 3 years, and then we are done with the thing. (I've finally convinced hubby that leasing is the only way to go). We looked at a Honda Accord EX V-6 w/Nav sedan (due to its very high residual) yesterday, and with the trade, it would be $575/mo for 3 years. This is palatable, since it is a very nice car, but he still would prefer a truck. There is enough incentive on the Accord to "carry" the negative equity on the F-150 with little out of pocket (about $800) on our part. So, even though the other trucks, like the Chevy for instance, have a lower payment, will their residuals and "carry" allow us to roll the negative equity into the deal and keep the payment about the same as the Honda deal? Hubby liked the Titan the best. We did find a dealer who didn't have ridiculously unnecessary add-on options for paint and fabric "sealants" like I mentioned in my other post, but I don't know if they have enough room in their incentives and markups to make a deal work.

Sorry for the very lengthy post. As always, thanks a million for your very helpful and money saving information.

Chigirl

Dallas area, Texas

kysusan · January 2005

To whomever: I would like to lease or buy a car. Should I buy using my home equity line, pay cash or take the car dealership deal? I plan to keep the car for 3+ years and drive ~20K/yr. Your thoughts?

sailorstac · January 2005

Car_man-- Can you please provide updated figures for money factors and residuals for the 2005 X5 3.0 and for the 2005 530? Last night, we were quoted a money factor equivalent to 4.3% by a BMW dealer, and I'm wondering if he marked it up. He said that leasing through another bank would be a bad idea, b/c BMW Finance includes gap insurance. Re the residuals, we are interested in a 36 month lease/12k miles/year. Thanks so much!

jlsellers · January 2005

Thanks for the X3 and M3 info. I was hoping that finding a very discounted 2004 M3 would mean a great lease payment, but I guess they do not want to compete with their 2005 sales. Now that I found this great board, I have another question. My partner special ordered a BMW 330xi in Dec, she gave a $1,000 deposit (refundable?), they quoted her the Dec lease factors but marked them up to the maximum allowed by BMWFS. Now, the car is not here, may not come in until Feb. Do you think that she should be able to insist on using the lease incentives in place during the month of delivery or is she stuck with the ordering month factors? Would the dealer be able to get this month's $3800 cash incentive if the vehicle comes in this month or is that only for "inventory?" If I can use the current month (Jan or Feb), then I can try to eliminate the "mark up." This is the same dealer that I shopped at and passed on for my X3 since they insisted on using the higher money factor and acquisition fee; another dealer in Phoenix, Camelback BMW, ended up giving me the par rates and a good price on the X3.

upndwn · January 2005

I came to the conclusion during my shopping that the special edition 24 months had a residual value of 70% and 36 months was 56%. Depending on model the 36 month can also be 53%.

You should ask Car_man the residual for you model at 24 and 36, too. If 30 months is not dead in the middle of the two other figures, it may tell you that money is to be saved in another lease term.

Good luck.

jmob · January 2005

Thanks in advance for your help. I've learned a lot from your replies - but maybe just enough to get myself in trouble.

I'm looking at leasing a 2005 LL BEAN XS Forester - price of $24864, MF of .00115, residual of 0.51. 36 month payment of $303 with $3500 down (including trade equity) and $195 in taxes/doc fees. Does this make sense?

corral · January 2005

I went through the same problem on an ordered x5 through bmw of san francisco. I ordered the car at msrp - 1000 and the lease buy rate for the month I ordered it. Then it came in there was dealer cash and a .0010 percent reduction in the factor and the same money factor. They refused to give me any price change or moneyfactor change. They would have been set to make a killing on that deal so I backed out. Nedless to say the car sat on the lot for over 3 months untill a co-worker had the dealer I bought my x3 from dealer trade the car and he purchased it for 750 over invoice and 2.9% for 60 months. My advice is to re negotiate the deal and have them reduce the money factor and the mark up get the dealer incentive or back out and find another car with more options at a lower price. I have a dealer in california that is honest has low mark up in ammount over invoice and you can allways get them to do a deal at the lease buy rate if you know it. even if you paid to shipp it to arizona you would have more $$ in your pocket.

Good luck

adrian1 · January 2005

Carman. First you are da man! you have excellent answers for everybody. I am looking at leasing a 05 Lexus LS 430 with Luxury package (w/o precollision system) and smart access. Invoice on car is $54689 in Arizona. Im looking at 15K mi year. I am in no hurry and want to get a smoking good deal. How do I find out what a good money factor would be and a good residual value. Also I know I can negotiate the car to get it just over invoice but how do I get it for below invoice and are the resiudal and money factor values negotable? Are there and websites that give current money facotrs or not? Show I use financing outside the dealership?

thanks

Adrian

clp091 · January 2005

Hi. Need help determining whether these are good lease deals in Wisconsin:

2005 Honda Pilot EX-L with DVD

Selling price: $32,074

36 months @18k per year

Money factor is .00154

Residentual of 57%

Security deposit waived

Approx. $2,500 at signing (includes 1st payment)

Lease Payment: $467.59

2005 4Runner Limited with 3rd row seats, running lights, rear spoiler, accessory kit Z1

Selling price of $34,725

36 months @ 18K per year

Money factor is .00121

Residentual is $20,756

$0 at signing

Fees: $147.00

Lease Payment $487.00

Thanks, need to make a decision soon.

Cathy

trneal276 · January 2005

I need some help. I am currently in the process of turning in my lease with 4 more payments to go in NYC. My current lease payment is $326. I am looking to lease a 2005 Escape. The price I was quoted was $26,605 (V6, leather interior, moon roof, step bars). There is currently a $2000 rebate on that car and I get $500 as a return customer. The dealership told me that $2000 out of my pocket which would cover the tax, registration, 1st payment etc. would give me a payment on the Escapte of $398. Is this # a bit or high or is it just me.

Any help would be appreciated.

Terry

trneal276 · January 2005

Just to add to it, that is for a 36 month lease with 10.5K miles per year.

rkaleal · January 2005

Hi. I live in the Cleveland, Ohio area, and when I turned 15 and 1/2, my parents helped me lease an '02 Honda Civic LX Coupe with automatic transmission. Unfortunately, the lease expires on May 1, 2005, and I dont leave for college until August 20. I need a car over the summer to get to work. The car only has 22,500 miles and is in fairly good condition, however, I was in a major accident in 2003 and there was $7,000 in bodywork done. I know that Honda will sometimes allow lease extension, but is this a good idea? Because my warranty expires May 1, should I be concerned that I might have major expenses this summer? Additionally, if I extend the lease, do I get allowance for extra "wear and tear"? If I extend, does my payment remain the same or change? We have not been able to get a hold of Honda and I cannot find any information on extension on their website.

In summary, is lease extension a good idea or is it just asking for problems?

THANKS

RKALEAL

sailorstac · January 2005

Car_man--

Well, we went to the Volvo dealer yesterday, and these are the numbers that the internet manager gave us, which don't seem to add up. MSRP is 50,858, our price is 45,707. He told us that the versatility pkg incentive isn't available through Volvo Finance on leased vehicles, so US Bank has the next best rates at .00173 at 59% residual, which he said was better than adding the $1800 for the versatility pkg back on to go through Volvo (which is .00121 and 60%). With no cap reductions, and California sales tax, he calculated the payments at $634.50 per month. Does that sound correct? In all the lease calculations I did, I came up lower.

Also, could you please run the monthly payment for the following (alternative) deal: BMW X5 3.0i, MSRP of $54,670, purchase price of $52,405, 36 month lease, 12k miles per year, CA sales tax. Thank you SOOO much!

rkaleal · January 2005

Hi, its Rkaleal again but I have an additional question. If I dont extend my lease, my father is considering getting an XC90 and letting me drive it until his S80 T6 lease expires in August. Does Edmunds TMV represent that Volvo is comping the Versatility Package? We would either get an XC90 2.5T AWD with Premium, Versatility and Climate packages and the premium sound system or an XC90 T6 with Versatility, Climate and Touring packages. What should be our price on these and any ideas on lease payments in Northeast Ohio? Also, this would be our third Volvo and if we leased the car through VFNA, are there additional discounts available to us to lower the rate?

THANKS AGAIN FOR ALL YOUR HELP.

jlsellers · January 2005

Thanks, corral. The only issue for my friend is that I am not sure about the refundability of the $1,000 deposit if she backs out. If she can get the deposit back then I think there is inventory in town and Camelback BMW will be straight up with price and not marking up the lease factors. Also, not sure when the car will be in. I am going to have her check both arrival and what the dealer's position is on cancellation and on using the current factors (they marked Dec rates up as she did not know what they should have been). I will report the results. Also waiting for car man's suggestions of course. I'm told the deposit issue is pretty much a dealer specific issue, no corporate policy.

ddlovejoy · January 2005

HI , Im leasing now..I was thinking on buying my next car so that I can give it to my son when he turns 17. If I timed it right it would be payed off by that time & I could give it to him & buy or lease a new car for myself. The dealer always wants me to come in early to ex-change lease I've done this once I know he tacks the money on the back end of the new loan. Should I wait untill the lease is up with this plan in mind or should I come in a year early as recommended by the dealer is there a big difference? ( I would be buying the new car from the same dealer. My miles are low ..the car is kept nice. I have excellent credit. He tells me there is no penalty but I want to avoid taking any of the residual to my new loan. Whats your advice? Ps Also Could I make an online Deal & turn my car in anywhere ? Or Do I have to take the car back to the dealer ? Thanks So much

bicycle · January 2005

Thanks Car man. Those are the same numbers as in December. So they must be keeping the same incentives going. Thanks!

Michael

chigirlintexas · January 2005

Hi Car-man,

Is GM offering some special lease rates? I could not get close to the figure you quoted, using the Edmunds lease calculator. Perhaps the residual amount is much higher than the one plugged in by the tool??

What would the payment be for a 36 month/15K lease on a 2WD Silverado Crew Cab LT, MSRP 36,745, paying 31,05 (including customer cash)? I have a hard time believing the residuals on domestic vehicles are high enough to support a decent lease payment (or am I just thinking of Fords?). If we then bury about $6K of negative equity, what's the payment? Tax here in Texas is 6.25%, so of course that needs to be added in. We were quoted $720 a month on a stripped SR5 Toyota Tundra with $1000 down, with the negative equity rolled in. As if!

Thanks again for your advice and help. It's amazing how much more empowered you feel with the right information, especially when it comes to leases. After two solid days of visiting dealershipd, though, I can't handle hearing one more guy say, "What'll it take to get your business today?" ARGHH!!!

nupeskee · January 2005

Car_Man

Toyota is running a lease special on Sequioa's for $379 per month with $2778 due at signing. Of course this price is only available on a specific model with selected options. I am interested in getting one but with different options and wanted to know if the special lease rate is available on all models. I would like to get the money factors and residuals for the SR5 and Limited 4WD @ 12k and 15k miles for 36 months. I am in the Kansas City area. Thanks.

kyfdx · January 2005

If you have the cash.. that would be the best way to go... Home equity lines generally have variable rates.. Leases of over 20K miles per year are generally not that good of a deal...

If you have to borrow money, check with a credit union.. Many loan money at 3.9% on new cars..

regards,

kyfdx

lsorensen · January 2005

I leased 2005 Pilot EX, and love the car,

from Honda World, Westminster, CA on 1/13/05



36 month, 12000 miles/yr lease from Honda Financial

$27432.00= invoice+destination freight fee

$595.00= acquisition fee

No $1999.00 cap cost reduction

No $350.00 security deposit

money factor 0.00159x2400=3.816% due to no security deposit,

would be 0.00149x2400=3.576% with security deposit

$337.25/mon= pymt (includes $24.26/month tax)

$294.75= Lic, doc, etc. fees

$632.00= drive off minus my 1993 Merc Sable Wgn w/ 115K miles trade for $1000.00

they will send me a check for $368 that will pay the additional $220 insurance increase until 7/05.

Net to me $148.00



End of lease residual $19,478.40



Got wheel locks, rear mud flaps.



Note: I got last years promotion that ended on 1/5/05 because I filled out the Credit Appl. on 1/3. I did this so that I could compare it to the new program which has a higher money factor.

Cathy, you can get essentialy this same lease package with a slightly higher money factor due to the new program. Of course your payments will be higher with the leather package. Are you sure you want leather in Wisconsin or is it the heated seats you want. Remember I am in SoCal.

sfcharlie · January 2005

Car_Man, in response to your "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"...The selling price is $25,900.

Thanks, again,

sfCharlie

kyfdx · January 2005

sfcharlie.. is that the MSRP, as well?

If so, it is an easy calculation... $392 + tax..

1st payment, security deposit and acquisition fee upfront.

sfcharlie · January 2005

Hey, Car_Man. I understand. Any chance you might suggest a reasonable monthly lease price on a 2005 325i, leased for 24months, if the MSRP was $34,000?

Thanks,

SFCharlie

sfcharlie · January 2005

Car_Man...My wife ordered the car, but we haven't negotiated the lease terms or given them any money. The document she took says that "the suggested price" is $25,900, with all the options she wanted. When I was at the dealership recently I saw a new Mini Convertible equipped almost identically to my wife's and the MSRP on the window sticker was the same. So, you've (helpfully) told me what to expect to pay, if the MSRP is $25,900. Do you think there's room to negotiate a lower selling price (is that the same as MSRP?)....SFCharlie

corral · January 2005

Check your state law, the dealer will try to make you believe it is non refundable, but most states stipulate a full refund. Go into this knowig you rights and don't get fooled by a dealer that is trying to get you to purchase a vehicle with tons of profit for them.

topgun7 · January 2005

Hello Carman, in Arizona, Chrslyer is advertising 05 PT Cruizer convertible with 0 percent finance for 4 year. Do you if the zero percent apply to the lease? What is the money factor and residual for 3 year, 15k Mi GT converible?

vcopell · January 2005

Thanks Car_Man:

Here is the deal that I was able to negotiate:

ES330 with Nav 2005:

- 17" Alloy wheels

- Navigation system/ 1 + 6 CD changer

- HID and rain sensing

- Power sun shade

- Wood and leather trim steering

- Cargo net/mat/wheel locks

- Heated seats with perforated leather seats

- Window tinting ($250)

- Color: Silver with Black interior

The best price in Dallas, TX I could get so far is $33,450 + ttl. No one is ready to go below this.

The one dealer I am dealing with says the Leasing will be as below:

- 36 months / 15,000 miles

- Dues $705

- $575/mth

- Residual $19,936.26 (using 54% since it includes Nav system. W/o Navit is 56%).

When I mentioned to him a Money Factor of 0.00145, he said that was not possible. He said that the Lexus Financing had a different rate. I forgot what he told that he used but I think he may have used something like 0.0024 or 0.0025.

I used the Edmunds' calc with these numbers ($33,500; 36 months; 15,000 miles, $19,936 resi; MF 0.0024; Acq fee $500, Security $600) and it gives me a payment of $580.29/mth.

Can you please let me know if this dealer is doing a snowjob at me wrt to the Money Factor? What is Lexus Financials standard rate in Dallas, TX (not sure if it varies by region)?

I want to be armed with the info this time I go there. I have already paid $500 to hold the car (not sure if he will refund that in case I back-out :-(.).

I plan on closing this deal today or tomorrow. Your guidance/answer will be much appreciated.

Much much appreciated, vick

CarMan@Edmunds · January 2005

Hi Rick. If you assume someone's lease on a vehicle, you would be responsible for any excess mileage or excess wear and tear penalties that are due on the it when you turn it in. So, naturally if you assume a lease with only six months left on it make sure that the vehicle is in good condition and not going to exceed its allotted mileage.

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CarMan@Edmunds · January 2005

You're very welcome, Chigirl. Your father is definitely in a tough position. Not only is he upside down on his current truck because he had to roll the cost of putting a new transmission in it into his next loan, but the fact that the transmission had to be replaced will probably actually hurt its resale value. While it may not seem fair, it makes sense if you think about it. I personally would rather purchase a truck that is in great condition over one that has had past transmission problems, regardless of how well the current owner claims it has been repaired.

I am surprised that you were able to roll all of the negative equity that this truck has into a lease of a Honda Accord. Honda is not currently providing any cash incentives on 2005 Accord Sedans and is only providing $500 on 2005 Accord Coupes. The dealer must be cutting this car's selling price to the bone and then trying to make up for that by marking up its lease money factor, and is possibly picking up extra money elsewhere as well. If you are trying to bury negative equity in a lease of a new truck, you want to choose a model that has as much lease cash as possible on it. This would likely mean going with a traditional domestic product, like the Chevrolet Silverado or the Dodge Dakota.

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CarMan@Edmunds · January 2005

Hi kysusan. Many people purchase new vehicles using home equity loans. Whether or not it is to your advantage to do so depends upon how much of a tax break doing so will provide you, what sort of interest rate you will have to pay on your home equity loan, the incentives that are available on the vehicle that you are considering, and what sort of interest rate you could get if you were to finance it through an independent bank.

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CarMan@Edmunds · January 2005

Greetings sailorstac. The interest rate that you were quoted by the BMW dealer that you spoke with is equivalent to a lease money factor of around .00179. Let's compare this number to BMW's actual lease program for these models. According to the latest information that I have seen, if you were to lease a 2005 BMW X5 3.0 through BMW Financial Services right now for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00125 and 60%, respectively. The numbers for an otherwise identical lease of a 2005 BMW 530 should be .00125 and 62%. To be eligible for these factors, you would have to pay BMW FS' acquisition fee and a security deposit. As you can see, the actual lease money factors for these vehicles are a little lower than the one that you were quoted. If you have to pay an acquisition fee and security deposit on these models there may be a little marking up of the rates going on here.

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CarMan@Edmunds · January 2005

You're welcome, jlsellers. The problem with leasing leftover vehicles, like the '04 M3 that you are considering, is that vehicles' residual values naturally fall as the model year progresses. The lower a vehicle's residual values are, the higher its lease payment will be. By this point, 2004 vehicles' residual values have dropped so much that it would be very expensive to lease one unless BMW provided a ton of lease support on it.

Consumers are always eligible to lease an ordered BMW with the lease program that is in effect the month that it is physically delivered. Furthermore, one should be able to lease any BMW 3-Series right now without the dealer marking-up its lease money factor at all. If I was in this situation, and the ordered vehicle came in this month I would renegotiate its selling price, taking the whopping $3,800 dealer cash into account and then make sure that the money factor that was used to calculate its payment was not marked up at all. It is difficult to say what BMW's February lease program will be like for this car, but I suspect that it will be at least as aggressive as its current program.

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CarMan@Edmunds · January 2005

Hi jmob. The first thing that I noticed about this deal is the large down payment that you are making. 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 Forester would be exactly the same, regardless of whether you had put $3,500 down, or had made absolutely no down payment at all. If you enjoy the convenience that trading your current vehicle in provides, just have the dealer that you are getting your new vehicle from cut you a check for it rather than using the proceeds as a capitalized cost reduction.

I would be more than happy to calculate a sample lease payment on this vehicle for you so that you can compare what I come up with to the payment that you estimated. However, in order for me to do so, I need you to tell me its full MSRP, including destination charges, and how many miles per year you need to be able to drive it.

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CarMan@Edmunds · January 2005

Thanks Adrian. I can tell you what this car's current lease money factor and residual value are. Unfortunately, you missed out on the attractive "December to Remember" lease program that Lexus was providing on it last month. Lexus is not currently providing any sort of lease support on this car. So if you were to lease one through Lexus Financial Services, you would have to use its standard lease program. I believe that its base standard money factor is currently .00205 for consumers who qualify for its "Tier 1" credit tier in most of the country. LFS' current residual value for a 3 year, 15,000 miles per lease of a 2005 LS 430, not the Custom or Ultra Luxury models and without Pre-Collision, is 56%. These numbers are not negotiable in that dealers do not have the authority to alter banks' published residual values or use a lower money factor that banks' base number. However, dealers usually do have the ability to mark-up banks' base money factors to add additional back-end profit to deals, so make sure that isn't happening in this situation.

If you are able to negotiate a selling price that is close to invoice on this car then you are getting a good deal. I highly doubt that you will be able to find a dealer that will be willing to lease you one for less than invoice at this time considering that Lexus is not providing any cash incentives on this model.

I am not aware of any source that provides accurate information on manufacturers' current lease programs to the general public.

Since there is no support on this car at this time, I would not be surprised if you were to lease one for less through an independent bank that you could through Lexus Financial Services.

Car_man

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CarMan@Edmunds · January 2005

Greetings Cathy. The lease programs that you were quoted for these trucks are right in line with the actual base lease programs that are being offered by their manufacturers at this time. This is a very good thing because it means that the dealers that you are working with are being very straightforward with you and are not trying to mark-up these truck's base money factors to add additional back-end profit to your deal. I cannot comment on these trucks' selling prices though because I do not know what they are in relation to their full MSRPs or dealer invoice prices. Similarly, I need their full MSRPs, including destination charges, to calculate lease payments on them to compare to the ones that you were quoted. If you provide me with these trucks' MSRPs I will be more than happy to give you additional feedback on these offers.

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CarMan@Edmunds · January 2005

Hello Terry. I would be more than happy to work up a sample lease payment for you on the truck that you are considering leasing. However, in order for me to do so, I need some additional information from you. This information includes this truck's full MSRP, including destination charges, how long you want to lease it for, and how many miles per year you need to be able to drive it. Once you provide me with this additional information, I will be able to give you my opinion on the selling price that you were quoted and calculate a lease payment that you can compare to the one that you have been quoted.

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P.S. I just noticed your subsequent post containing the lease term and mileage info, but I still need the MSRP.

vcopell · January 2005

I forgot to write the MSRP for this one. It comes to $36,443 (Edmunds). This does not include $250 for tinting.

Earlier posting was:

Here is the deal that I was able to negotiate:



ES330 with Nav 2005:

- 17" Alloy wheels

- Navigation system/ 1 + 6 CD changer

- HID and rain sensing

- Power sun shade

- Wood and leather trim steering

- Cargo net/mat/wheel locks

- Heated seats with perforated leather seats

- Window tinting ($250)

- Color: Silver with Black interior



The best price in Dallas, TX I could get so far is $33,450 + ttl. No one is ready to go below this.



The one dealer I am dealing with says the Leasing will be as below:

- 36 months / 15,000 miles

- Dues $705

- $575/mth

- Residual $19,936.26 (using 54% since it includes Nav system. W/o Navit is 56%).



When I mentioned to him a Money Factor of 0.00145, he said that was not possible. He said that the Lexus Financing had a different rate. I forgot what he told that he used but I think he may have used something like 0.0024 or 0.0025.



I used the Edmunds' calc with these numbers ($33,500; 36 months; 15,000 miles, $19,936 resi; MF 0.0024; Acq fee $500, Security $600) and it gives me a payment of $580.29/mth.



Can you please let me know if this dealer is doing a snowjob at me wrt to the Money Factor? What is Lexus Financials standard rate in Dallas, TX (not sure if it varies by region)?



I want to be armed with the info this time I go there. I have already paid $500 to hold the car (not sure if he will refund that in case I back-out :-(.).



I plan on closing this deal today or tomorrow. Your guidance/answer will be much appreciated.



Much much appreciated, vick

CarMan@Edmunds · January 2005

Hi RKALEAL. you are in a difficult position because unless you have a decent income as a student, you may end up having a difficult time leasing a new vehicle until you graduate and get a job. American Honda Finance Corp. will allow its lessees to extend their current leases several months at their current payment, so at least you have some time to figure out what you are going to do. Your options are to try to extend your current lease until you graduate, if you can even do so for that long, or to have your parents help you lease or purchase another new vehicle. If you currently have an allowance for excess wear and tear, extending your lease for a couple of months should not have an impact upon it. In your post you stated that you have been having difficulty getting in touch with AHFC. I have always found them to be very helpful. Give them a call and see what your options are. You can get its telephone number off of your bill or by visiting the following section of its web site: .

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CarMan@Edmunds · January 2005

Hey sailorstac. The person who you spoke with was correct. The free Versatility Package offer that Volvo is providing on the 2005 XC90 is not compatible with leases through Volvo Finance. You may indeed be better off leasing this truck through an independent bank and taking advantage of the free package offer. Using the information that you provided in your post, I come up with a three year, zero down, pre-tax monthly payment of around $568. Unless sales tax is very high in your area, in this case a whopping $67 per month, something does not seem right here.

As far as the BMW that you are considering goes, according to my calculation if you were to lease a 2005 BMW X5 3.0i with an MSRP of $54,670 and a purchase price of $52,405 through BMW Financial Services right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $652.

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CarMan@Edmunds · January 2005

Hi again rkaleal. No I do not believe that The Edmunds.com True Market Value for the XC90 takes into account the free Versatility Package offer that Volvo is currently running on this model. I am not personally all that familiar with what the market is like for this truck in your area right now, but you may be able to get an idea of what you should pay for one by visiting the following discussion: "Volvo XC90: Prices Paid & Buying Experience". Once you know the exact full MSRP, including destination charges, and selling price of the exact XC90 that you want, along with how long you want to lease it for and how many miles per year you need to be able to drive it, let me know and I will be more than happy to calculate a lease payment on it for you. I do not believe that Volvo has any special loyalty incentives for returning customers on the 2005 XC90 at this time, other than perhaps the waiver of its security deposit requirement for returning lessees.

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