Lease Questions - Ask Here

sfcharlie · January 2005

Hey, Car_Man:

Actually, following your advice and looking back at Sept 04 postings, someone using the handle "pimpwgn" was shopping a 325i 2yr or 3yr lease. So, pimpwgn, if you're out there, what kind of deal did you get? I paid $33,620 for a 2004 325i sedan (Premium and Cold Weather packages, leather, and steptronic trans). Pay $525 per month on 2 yr lease, with .00229 money factor and residual set at $24,222.

Regards,

SFCharlie

jbaer · January 2005

Ahhh of course. Thanks so much.

rachel rad · January 2005

I have a 27 month lease, 16 months into it. I'd like to increase it to 36 months, and have my monthly payments lowered. Is this possible? What are the pros and cons?

It's a 2004 audi A4 1.8T Quattro. I put no money down.

Thanks for any advice!

scott31 · January 2005

I'm sorry Car_Man, brain fart. I forgot to mention I need the 36 and 39 month figures with 12k miles per year. Sorry about that. And I just need to clarify. If I lease thru Volvo, I'll get $1500 cash back. If I lease thru someone else, I'll get the $2500 AND the $1500?

lycanthris · January 2005

Thanks so much!

postnewbie · January 2005

Hi All,

I have always financed my vehicles and finally convinced myself to lease, so I would like my first lease experience to be good. The only fear I have (like many) is the whole "excessive wear and tear" clause.

I am looking at the following leases from the Manufacturer's: Honda Accord, BMW 325i, and Mercedes C230 (all sedans). From reading on the forums here, Honda seems lenient towards the "excessive wear and tear" clause. I have not found to many opinons on the other two premium makes.

So I would like to ask if there is any type of consensus on how BMW and Mercedes treats their lesees?

I would really like to get a BMW for the free maintenace or the Mercedes for the cool factor but I did not want to be raked over the coals with hidden costs.

Any advice from you gurus will be greatly appreciated!!!

seacarfan · January 2005

Thanks Car_man:

You've given me some ammo to bring back to the dealership should I choose to pursue this car.

I don't know if you give opinions on leases, but if I can get the payment down to your number of around $735 + tax, would you consider it a good lease??

It is, after all, an 04, with about 550 miles on it. I don't know if you remember the scenerio, but the car was PUT IN SERVICE 9/30/04, meaning that the warranty started that date. They are telling me that the vehicle was 'purchased' by the dealership, but not titled yet. Thus, the actual warranty I would be getting would be several months less than the norm of 48 months.

Again, just wanted to know what you think, should you be willing to share your opinion.

Thanks again,

seacarfan

corral · January 2005

I have leased with all three credit companies. First off honda is very liberal and there is no disposition fee and $1500 damage allowance. Next Bmw financial they have a fair guideline for return damage I had a few dents, wheel scratches, and small window marks no charge, and they waived the disposal fee when i entered into an new lease. Last Mercedes credit they have someting called the first class finish basically if you can hide the damage with a credit card it's acceptable. Think about damage large enough to be hidden by a credit card on a Mercedes is moer than $1500. Look at all 3 companies web pages. They all have sections talking about returning leases and acceptable damage.

easymo · January 2005

Hi,

New to the forum and I am ready to lease my first car. Looking seriously at 2005 g35 but our local dealer has several leftover 2004s on the lot that they will substantially discount. What can I expect for the money factor and residual on a 04 g35 2wd sedan? Would I be better off going with the 2005 on a lease?

lovepanda · January 2005

Hello Help!!

Thanks for the wonderful service you provide.

Dealer has offered me 22,945 (MSRP= 24,960)

I am told by a salesman of the car I want who sells them in another state (CA, I'm in TX) that the dealer incentive on the 05 GLI is 1175. Invoice I am told is 22,945 (invoice, so they say) - 400 off the dealer incentive for a grand total of 22,545 to buy the car.

I'm trying to lease the car for an amount of time that will keep me under the warranty and keep me under 300/mo without putting much down at all. Am I dreaming?

I'm told these cars are going fast because of the incentives offered and the fact that what the dealers have is all they will be getting because of the new model coming out in March. Herein lies my dilema: I probably won't e able to put mch more than 700-900 down in the next week or so. Will I still be able to stay under 300/mo without putting more tan possible down?

thank you so much ... I REALY APPRECIATE YOUR HELP!!!

Michael

ds3a17 · January 2005

I was wondering why the dealers invoice price is higher than the invoice price that I got from Kelly Blue Book? What is the markup price for the mercedes dealership? The dealership says it's 5%, is that true or not? The base msrp for the slk 350 is 45,500 and the the dealer invoice price was 43,225 and KBB invoice price was 42,315, why the difference in price between KBB invoice and dealer invoice? Is the KBB source reliable and are there hidden fees in the dealers invoice that we don't know about? Please someone help...

Kirstie_H · January 2005

First, did you check the invoice price on Edmunds.com? I am not entirely familiar with KBB's process, but perhaps their invoice price listing excludes destination & advertising fees added on to the factory invoice.

kyfdx · January 2005

KBB actually has a very good program for figuring MSRP and invoice pricing.. It is very good at not letting you add options that are included in the packages that you have already selected, etc.. I use it a lot..

But, you aren't adding the destination charges on.. I just checked KBB and the MSRP is $46,220 with destination and the invoice is $43,035... A difference of only $190 from what your dealer quoted you.. that could be an advertising charge of some kind..

All cars have a destination charge on the MSRP and the invoice... You have to consider them as part of the base price..

KBB prices are usually right on the money.

regards,

kyfdx

Kirstie_H · January 2005

Thanks - that was basically what I was indicating, that the KBB invoice price might not include the advertising and/or destination fee.

kirstie_h

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lycanthris · January 2005

Car_man:

My girlfriend is now interested in a Honda Civic as well. She is considering either the LX or EX sedan. Can you provide me with the MF and residuals for 24/12k and 36/12k?

Thanks!

brummett88 · January 2005

Hey Carman, I'm considering my first lease. Looking at an 05 Accord LX. Could you please provide me with the residual value % on a 36 months/12k year lease, money factor, and estimated monthly payment with $0 down. Thanks Carman, I greatly appreciate it.

lovepanda · January 2005

hello car_man!

I was wondering about the question I posted at 12:42am this morning ... message 16591. Any help is greatly appreciated. Thanks!

lovepanda

Kirstie_H · January 2005

Whoa! Your post is only a few messages back. Car_man gets to posts as soon as he can, but sadly, he can't watch for questions 24 hours a day. If it appears that he's in here answering questions and yours has been overlooked in that batch, then re-post. Otherwise, we'll just urge you to be patient - leasing/purchasing a car is a BIG decision & a BIG expense. No need to rush into it.

In the interim, please have a look at this similar request:

ssmike, "Lease Questions - Ask Here" #16324, 20 Jan 2005 4:48 pm

brianm1 · January 2005

I need help in neg. 3 yr, 15000 mpy, 0 down lease for a 2005 Dodge Durango 4x2 Limited with Hemi package. Specifically, I need help with the lease rate (MF), residual values and cap cost. I was quoted $500 month (tax included) on a vehicle with a MSRP of $37,200, 39 months, residual 44%, MF .0018, cap cost of $33,400 (2500 rebate included). Residual appears low and the MF too high. Any help would be greatly appreciated. Thanks!

wantg35c · January 2005

what is the g35 coupe 6mt with premium money factor for 36 months and what is the current residuals. Thanks

postnewbie · January 2005

Corral

I've never heard of that first class finish before and after visiting the Mercedes website it is a pretty neat concept.

Now from reading the website I read you can lease pre-owned vehicles. This is a broad question but is it a good idea to lease pre-owned vehicles or should I avoid it?

Again thanks for all of your help!!

nupeskee · January 2005

Car_Man

My dealer is telling me tha the residual on the Odyssey Touring with NAV/RES is 55% for 36/15k and 57% for 36/12K. Is this correct? Also The dealer is offering a sale price of $36559 on this van at a rate of .0026 (a little higher rate to wave the security deposit) for 36/15K and quoting a payment of $638 which is different from my calculation of $616 for the same price. I am wrong? These are the numbers from the deal.

MSRP $38810

MF: .0026

Residual: 55% ($21,345.50)

Selling Price: $36,559

Acq Fee: $595

Total Additional Cap cost: $670 (what is this?)

Total sales tax: $1607.76

Adjusted Cap cost $37299.00

Term: 36 months

base rental: $593.50

Monthly tax: @ 7.525%: 44.66

Total payment: $638.16

amout due at start: $685.66

mdorf · January 2005

car man-- we're about to lease a volvo xc90 2.5awd with premium, versatility, climate, metallic paint and rse (rear entertainment dvd). we've got a volvo s60 coming back end of march (1 payment left) from a 4 year lease (big mistake. needs new tires and more) so the dealer is going to buy the car from volvo at "no" cost to us. they are folding into the lease $850 for mileage, last payment and arlington, va, personal property tax that's due on the car. it's still a better deal for us, we think, than bringing the car back and fixing some stuff and buying new tires.

we've got a price of 42250 from one dealer plus the 850. for 36 months, 15k per year they want 671. another dealer is offering 651. both are no money down with only first month due. it includes $28 a month for virginia personal property tax (we think a good deal because the actual cost is much higher)

how we doin'?

thanks

paulsfca · January 2005

Thank you, Car_man!!!!!

paulsfca · January 2005

Carman,

You have provided us with great information on money factors and residual values for Saab 9-3 Arc and Subaru Forester XT w/Premium Package. We have a budget number we are trying to stay within, and wondering what 48 month month money factors and residual %'s are for these cars vs. 36 months. Previous info was:

2005 Subaru Forester XT

3 years with 12,000 miles per

Base lease money factor and residual value should be .00130 and 50%, respectively.

2005 Saab 9-3 Arc Sedan

3 years with 12,000 miles per

Base lease money factor and residual value should be .00049 and 49%

Saab is also providing $2,500 lease cash on this car that will help to negotiate an attractive capitalized cost.

Thanks,

Paul

sysman0 · January 2005

MR CAR_MAN,

I would appreciatte the help. I am looking at a 2005 Nissan Titan LE Crewcab, I have been working the dealers and they are really tough. Here are the terms I am looking for: 3k down, 39 or 42 months, 12,000 miles per yr. The MSRP is somwhere around 33000, I have brought them down to 30500. The residual I was given on this vehicle is 53%. I brought them down to 495/mth incl tax and paying no more than 3k down (which would include 1st pymt, etc.). Can you work this out for me and let me know the best I can get also if this is a good deal.

I was pushing for 380/mth incl. taxes but they pretty much wouldnt budge.

Thanks for your help.

barry6 · January 2005

I am a resident of NH and I drove my leased car to GA and I keep my leased vehicle in GA to use while I am there visiting with my children. I registered my car in GA since I planned on keeping it there for over 30 days. My leasing company wants me to pay GA sales tax on my lease. Am I required to do so since I am still a resident of NH where there is no sales tax ?

caromba · January 2005

I have a friend who wants to get out of a lease on his Mercedes. Two questions: Is the extended warranty transferable, and can I prepay the 18 months remaining, and not have to go through credit checks etc?

nowhere2005 · January 2005

Looking to close a deal on a new A4 with the following:



2005 A4 1.8T 6spd SE w/cold weather pkg. & metallic paint.



MSRP w/dest = 31170

First swag cap cost = 29180 + 720 dest



Just have to decide 12k or 15k/yr



Thanks

suebeedux · January 2005

How much should I be paying for a 2005 fully loaded Armada MSRP $47270, invoice $42,700? What best lease terms should I expect? (Residual?, Money Factor? How do I know if the dealer is padding the misc. fees such as destination, gap insurance, etc.)?

I have seen people in this forum paying under invoice for the 2005.

CarMan@Edmunds · January 2005

Welcome to the wonderful world of leasing, mellie007. Let me begin by saying that since you are new to leasing, it would be in your best interest to check out the following informative articles on the subject that are available here at Edmunds.com: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment. These articles contain a lot of great information and will answer a number of questions that you have on this subject.

Now I will address the specific questions that you mentioned in your post. Yes, you can trade in your current vehicle when leasing a new one. You can use any equity that you have in your vehicle, the positive difference between what you owe on it and how much the dealer is willing to give you for it, as a down payment on your leased vehicle. Having said this, you would be better off having the dealer that you are leasing your vehicle through cut you a check for your trade rather than using the proceeds as a down payment. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your leased car or truck would be exactly the same, regardless of whether you had put all of the proceeds from your trade down, or had made absolutely no down payment at all. Consumers can and should lease any vehicle that they are interested in without making any sort of capitalized cost reduction, aka down payment. The only things that you should have to pay at lease signing are your vehicle's first month's payment, a security deposit that is equivalent to that down payment rounded up to the nearest $25 or $50 increment, and the lease acquisition fee that the bank that you are leasing through charges.

The advertised lease that Nissan has on the 2005 Pathfinder right now is a pretty good deal. Having said this, most manufacturers' advertised lease payments leave a little room for negotiation, price-wise. I suspect that this is the case with this truck as well. Adding additional options to the truck that is advertised would increase its lease payment. The exact payment increase that will result from the addition of this option will depend upon the exact MSRP and selling price of the truck. If you let me know these numbers for the Pathfinder that you want as you want it equipped, I would be more than happy to work up a sample lease payment on it for you. If you can only find this truck's MSRP, we can estimate its selling price.

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CarMan@Edmunds · January 2005

Hi smile41. I am very very sorry to hear about your loss. Unfortunately, whether or not the remaining lease payments on this vehicle have to be made is completely between your husband's estate and the bank that he was leasing it through. It sounds as though you have already called the bank that this vehicle is being leased through and were told that the estate is responsible. You may want to escalate this matter to a manager at the bank if you have not already done so. The only other thing that I can think of to do is to consult an attorney to see what your legal options are.

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CarMan@Edmunds · January 2005

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

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CarMan@Edmunds · January 2005

Thanks for the additional information, roon. Here is the info that you are looking for. If you were to lease a 2005 Honda Odyssey Touring without the rear entertainment or navigation systems through American Honda Finance Corp. prior to the end of February for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00250 and 59%, respectively.

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CarMan@Edmunds · January 2005

Jbaer, it is very difficult to generalize about how much a switch from 12,000 miles per year to 15,000 miles per year will increase a vehicle's lease payment. The exact impact that this will have will depend upon how expensive the vehicle is, how long you are leasing it for, and what bank it is being leased through. Some banks' 12,000 miles per year residual values are 1% higher than their 15,000 miles per year residuals, while others are 2% or 3%. If you give me all of the necessary info to work up a lease payment for you I can tell you the exact cost for the additional mileage.

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CarMan@Edmunds · January 2005

Hi rachel rad. I am sorry to say that once you have signed a lease for a vehicle, it is impossible to change its length. Some banks will allow their lessees to extend their leases several months at the same monthly payment, but that is not exactly what you are looking for. You also may be able to re-lease your current car or truck at the end of your 27 month term, but you would probably would have to do so for longer than the total of 36 months that you are looking for. Furthermore, used vehicle leases are not always the best deals.

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CarMan@Edmunds · January 2005

Don't worry about it, scott31. This sort of thing happens all the time. Volvo's dealer cash usually can not be used in conjunction with its special lease money factors. So, if you were to lease this car through Volvo Finance, you would not be able to take advantage of any dealer cash. I wonder though about whether the $2,500 for leasing through independent banks can be combined with the $1,500 dealer cash. At first I thought no, it is instead of the $1,500, but I am not positive because dealer cash is normally compatible with leases through independent banks.

As far as this car's lease program goes, if you were to lease a 2005 Volvo S40 T5 AWD through Volvo Finance right now for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00185 and 53%, respectively. The numbers for an otherwise identical 39 month lease should be .00185 and 50%.

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CarMan@Edmunds · January 2005

Thanks dawnied.

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CarMan@Edmunds · January 2005

You're very welcome, lycanthris.

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CarMan@Edmunds · January 2005

Hi postnewbie. Most manufacturers' captive finance companies, banks that are owned by automakers, are fairly lenient when evaluating leased vehicles for excess wear and tear at the ends of their terms. This is because it is in their best interest to keep you as a happy and hopefully for its parent company's sake a loyal customer rather than nickel and diming you to death. Having said this, if your vehicle is really messed up, you will get charged for it.

I have a lot of personal experience with American Honda Finance Corp. and they definitely are pretty lenient when evaluating vehicles at lease-end, but all of the banks that you mentioned, BMW Financial Services, Mercedes-Benz Credit Corp., and AHFC will treat you very fairly.

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CarMan@Edmunds · January 2005

No problem, seacarfan. You definitely would be getting a good deal if you can lease this car for $735 per month.

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CarMan@Edmunds · January 2005

Welcome easymo. I would be more than happy to give you an idea of what the lease program is currently like on the car that you are interested in. However, in order for me to do so I need you to tell me how long you want to lease it for and how many miles per year you need to be able to drive it.

Unlike many manufacturers, Infiniti still has a relative attractive lease program on 2004 models at this time. When you combine this decent lease program, the $500 dealer cash that is available on leases of 2004 G35 2WD models, and what will most likely be an attractive selling price you actually may be better off leasing an '04 than an '05 right now.

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CarMan@Edmunds · January 2005

Hello Michael. Volkswagen has an incredible lease program on the Jetta GLI right now. The salesperson who you spoke with was being very straightforward with you about the dealer cash. Volkswagen is indeed currently providing $1,175 dealer cash on leases of 2005 Jetta GLI Sedans through VW Credit. Having said this, a measly $400 discount in addition to the use of this dealer cash is definitely not a low enough price on this car. Volkswagen is introducing a redesigned Jetta in the not so distant future. You should be able to lease one right now for fairly close to invoice prior to the deduction of any available cash incentives if you do some comparison shopping.

You should be able to lease this car for less than $300 per month, but let's work up a sample lease payment on the it just to make sure. VWs come with a 4 year basic warranty, so I will base my calculations on 4 year leases. If you were to lease a 2005 VW Jetta GLI Sedan with an MSRP of $24,960 and a selling price of $22,270($22,945 invoice - $1,175 dealer cash + $500) through VW Credit for 4 years with 12,000 miles per, your zero down, pre-tax monthly payment should be around $226.

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CarMan@Edmunds · January 2005

Here you go, lycanthris. If your girlfriend was to lease a 2005 Honda Civic Sedan LX or EX through American Honda Finance Corp. right now for 2 years with 12,000 miles per, its base lease money factor and residual value should be .00136 and 62%, respectively. The numbers for an otherwise identical 3 year lease should be .00136 and 56%.

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CarMan@Edmunds · January 2005

Hello brummett88. I would be more than happy to give you an idea of what this car's lease program is like right now, however in order for me to calculate a sample lease payment on it for you I need you to tell me how long you want to lease it for and how many miles per year you need to be able to drive it. If you were to lease a 2005 Honda Accord LX 4-cylinder Sedan through American Honda Finance Corp. prior to the end of February for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00077 and 55%, respectively.

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CarMan@Edmunds · January 2005

Hi brianm1. Let's compare Chrysler Financial's actual lease program for this truck with the one that you were quoted. According to the latest information that I have seen, if you were to lease a 2005 Dodge Durango Limited 2WD through Chrysler Financial right now for 39 months with 15,000 miles per year, its base lease money factor and residual value should indeed be .00180 and 44%. As you can see, the salesperson who you are working with is being very straightforward with you about this truck's lease program. Domestic vehicles, which is what the Durango sort of is, generally do not have the best residual values so I am not at all surprised by the 44%. The $2,500 lease cash that you were quoted on this truck is correct as well. However what wasn't mentioned is that DaimlerChrysler is providing an additional $1,000 bonus for 2005 Dodge Durango models that are financed or leased through Chrysler Financial right now. As far as what sort of selling price you should expect on this truck, I am not intimately familiar with what the market is currently like for it in your area. Having said this, the Durango is not setting the world on fire, sales-wise. I suspect that if you shop around you should be able to get one for around $500 over invoice minus any available incentives if you are in an area where there is any competition for your business. For more feedback on this truck's price, you may want to visit the following discussion: "Dodge Durango: Prices Paid & Buying Experience". It's not very active, but you may be able to pick up a nugget of information there.

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CarMan@Edmunds · January 2005

Here is the information that you are looking for, wantg35c. If you were to lease a 2005 Infiniti G35 Coupe through Infiniti Financial Services on or before January 31st for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00215 and 61%, respectively.

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CarMan@Edmunds · January 2005

Hey nupeskee. The information about the residual values for this van that the salesperson who you spoke with gave you is correct. After taking the security deposit waiver into account, the money factor that you were quoted is right as well. Using all of the information that you provided in your post, I come up with a zero down, pre-tax monthly payment of around $574. The difference in the payments that you and your dealer came up with may be in the calculation of sales tax.

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CarMan@Edmunds · January 2005

Hi mdorf. I would be more than happy to calculate a sample lease payment or two on the XC90s that you are considering for you so that you can compare them to the lease payments that you have been quoted. However, in order for me to do so I need you to provide me with their full MSRPs, including destination charges.

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CarMan@Edmunds · January 2005

No problem, paulsfca. I am glad that I was able to help you out.

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