Lease Questions - Ask Here

CarMan@Edmunds · January 2005

You're welcome, Paul. Here is the 4 year lease information that you are looking for. According to the latest information that I have seen, if you were to lease a base 2005 Subaru Forester XT through its captive finance company on or before January 31st for 4 years with 12,000 miles per

its base lease money factor and residual value should be .00135 and 43%, respectively.

An otherwise identical lease of a 2005 Saab 9-3 Arc Sedan through Saab Financial Services Corp. on or before January 31st would have a base factor and resid of .00080 and 40%.

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CarMan@Edmunds · January 2005

Hi sysman0. Let me begin by saying that 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 Titan would be exactly the same, regardless of whether you had put $3,000 down, or had made absolutely no down payment at all.

Let's work up a couple of sample lease payments on this truck for you and see what we come up with. According to my calculations, if you were to lease a 2005 Nissan Titan Crew Cab LE 4WD with an MSRP of $33,000 and a selling price of $30,500 through Nissan Motor Acceptance Corp. on or before January 31st for 39 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $424. The payment for an otherwise identical 42 month lease of this truck should be around $416.

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CarMan@Edmunds · January 2005

Hi caromba. Extended warranties are usually, but not always, transferable. Some companies charge a nominal fee for the transfer of an extended warranty. I am not positive, but I doubt that whatever bank this car is being leased through will allow you to assume this lease without running some sort of credit check on you.

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CarMan@Edmunds · January 2005

Here is the information that you are looking for, nowhere2005. If you were to lease a 2005 Audi A4 1.8T Special Edition Sedan with quattro through Audi Financial Services right now for 3 years with 15,000 miles per year, its base lease money factor and residual value should be .00025 and 56%, respectively. Its residual value for an otherwise identical lease with only 12,000 miles per year would be 2% higher.

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CarMan@Edmunds · January 2005

Greetings suebeedux. I would be more than happy to give you an idea of what this truck's lease program is like and calculate a sample lease payment on it for you. 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.

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suebeedux · January 2005

I am looking to lease for either 36 months or 48 months. Not sure. Need 15,000 miles.

Can you also let me know what fees I should be or shouldn't be paying, such as gap insurance, acquistion, etc. I don't know what is legit and what is padding. And how do I know what is a reasonable charge.

What is reasonable to pay for miles over the 15,000?

How much do I pay for car. MSRP is $47,270, invoice is $42,700 and they are offering $1,000 incentive right now. I live in Massachusetts.

Thanks,

Subeedux

rjbpa · January 2005

Car_Man

BMW is advertising a special 39 month lease on the 2.5i. Do you know what they are using for residual and money factor on this lease?

hfang · January 2005

We're interested in leasing a new 05' Boxster S/non-S (not sure yet)- the lease rates I was quoted yesterday seemd outrageous- almost the same monthly payment as a purchase with nothing down! Do you know the money factor/residual on the new Boxster- Thanks!!!

edmundophile · January 2005

hi i got an infiniti FX35, touring, sports packages, wheel locks, mud quards, cargo mat for 37538. Reportedly its 2900 off the msrp.did i do well? I am now waiting of leasing terms for 39 mos, 15000miles, no money down. my credit score is around 750. what should the money factor be? what do i need to look for to see if they are ripping me off? thanks.

jbaer · January 2005

car_man

A few questions for you.

1) once I have negotiated the price on the car that I want to lease. What is next? I am planning on leasing a Honda Pilot and Accord. How do I shop around for leases and money factors? Will the dealer be able to set up the leasing thru AHFC? Do I need to get a lease BEFORE I negotiate the price?

2) Are residuals negotiable? What happens if I get the price I want on my 2 cars but when we start talking about leasing they give me a horrible residual? Do dealers do this or are residuals pretty much set in stone? Just so I know when I start my negotiations, what are the residuals on a 2005 Honda Pilot EX 3 year 15k and 12k lease? and the same for 2005 Honda accord EX-L 3 year 15k and 12k lease?

Thanks once again in advance!!

nowhere2005 · January 2005

Car_man,

Thanks for the info. How does my purchase price look ($29180 + Dest). Is there any dealer lease cash from Audi hiding that I should know about before signing?

Thanks

nw2K5

ltrojan · January 2005

Hi Car_Man,

I finally leased my 2005 C230 sedan over the weekend but when I got home I found 2 MAJOR errors on my lease contract:

1.) The VIN # on the leasing agreement did not match the window sticker/car VIN # that I have in my possession right now.

2.) Under the monthly payment section of the contract, it says "1st monthly payment will be due on the 1/30/05, followed by 38 payments of $425 due on the 1st of each month. Why does it say 1st of the month??? Does that mean I have to pay $425 on Feb. 1 (which means I'm getting ripped off), or Mar. 1 (which I don't mind, because then I get 2 days for free).

lovepanda · January 2005

thanks car_man! sorry about previous impatience!

I got 276/mo for 4 yrs ... the better half got swindled into the "extended warranty"!!! but all in all, my (your) numbers were right on ... it was also nice to observe the dealer do exactly what I expected them to do and then have an answer for it! (and to think this is my first new car purchase!!!)

thanks so much!

Michael

cjsot · January 2005

[non-permissible content removed]. Silver 745i with everything.

Lux seats , conv. pkg prem sound rear entertainment heated steering wheel rear sunshade & electric dark wood sat prep. MSRP 81220. They seem desperate and I can lease for 75000 @ .00125 does this seem normal or a good deal. I have been told the resale value on the 7s are as valuable as 3 day old guacamole. Thanks in advance.

tipo70 · January 2005

I'm told the residual values on these SUV's are pretty high. Would the residual value and money factor be on this car for 36 months? Thanks in advance..

mellie007 · January 2005

Car_Man-

Thanks a bunch for your reply. All of the information was SOOOOOO helpful. I don't have any numbers yet, since I am in the beginning stages of learning to lease, but I promise to run them by before making and decisions! Thanks!

edmundophile · January 2005

hi i got it last night. hurray -- its such a sports car.

bottom line price 37538 which is 2900 off the price. my 39 mos lease, no money down is about 560 monthly including tax. it calculates to 500 over invoice price. the money factor was 0.0022 thanks edmunds for all your guidance.

storkey7 · January 2005

Hi,

I live in NY and got quoted $298 month with $0 out of pocket if that helps. Also I think he was basing this on a selling price of $23,500

Marissa

ereynihc · January 2005

Car-man,

I've been looking through the last several post and only saw information for the 2004FX35 lease. Do you have any new information on the 2005 models? I'm looking at the 2005FX35 2WD Tour&Sport package for a 36 month lease with 15k annual mileage.

The dealer also has a 2004 FX35AWD (6000miles) on the lot. I have not inquired about it, but is this a better lease deal than a new 2005 model? The one on the lot has the color and options I want. It listed at $35,777.

What are you thoughts?

coby03 · January 2005

Car_man,

Edmunds shows a $1700 charge for a Gas Guzzler Tax on this vehicle. Assuming that is true, how is it handled when you are going to lease the vehicle? I suppose like any tax it can be paid off up front or rolled into the lease payment as part of the capitalized cost of the vehicle.

I took the car for a test drive and asked that he work up some numbers on a 36 month/12K per year lease. I think he must have added the Gas Guzzler Tax into the lease payment calculation and gave no discount off MSRP because the monthly payment he gave me was $680 (pre sales tax). The MSRP on the vehicle is $50,020. I calculate pretty close to $680/mo only if I add in the $1700 GGT. Do you confirm? I thought they would be offering some kind of a discount, or is the re-styling only going to be for the new A4 platform?

Thanks.

tm01 · January 2005

I was in the market to purchase a GM vehicle.

I have very bad credit so my interest rate would have beeen around 18%. The dealer said they could get me a lease through GMAC Financing. I took them up on the offer. It is a 4 year lease; at the end of the lease I will have the money to pay the vehicle off. At the signing of the lease I put no money down or a trade. I think I came out a lot better this way than financing a 22,000 vehicle at 18% with no money down. What additional costs other than the residual amount can I expect to purchase the vehicle?

rroyce10 · January 2005

.. **I have very bad credit so my interest rate would have been around 18%. The dealer said they could get me a lease through GMAC Financing. I took them up on the offer. It is a 4 year lease; at the end of the lease I will have the money to pay the vehicle off. At the signing of the lease I put no money down or a trade** ...

Sniff sniff .. Hmm, there's a whole lot more here than meets the eye ...

Terry.

tm01 · January 2005

I thought it sounded to good to be true also. I read the lease agreement completly and everything is in order.Its a gmac smartlease. I have had the vehicle for a year now. Maybe the dealership did some manipulating on their end.

brianm1 · January 2005

Dear Car Man,

Thank you very much for your response. I managed to negotiate the following:

MSRP: 37185

Price: 33,803

Bank Fee: 700

Cap: 34,503

Rebates: 4000 (extra 500 for LA Autoshow incentive)

Adj. Cap: 30,127

MF: .0018

Res. 45%

Cash down: 1516 (1st month + closing costs)

Terms: 36 months

Payment: 490.00 inc. tax

I think I still left some money on the table ($1000), but it was the best deal in the Los Angeles area I was able to find (Correct me if I am wrong). Thanks again and you probably mentioned this before, but I would advise never to negotiate any car deal (lease or buy) alone. If I took someone with me to be objective and also help crunch the numbers, I could have done much better.

prince812 · January 2005

Car Man,

Are the residual numbers in for the 05 Avalon yet? If so at an MSRP of 38,200 and selling at 37,600 what would a lease look like at 3 years and 15k per year? What would I need to put down (although I know it is better not to) in order to get the payments less than $600 (preferable around $575) per month with taxes etc. included?

Thanks in advance...

ajpbf7 · January 2005

Carman,

Could you give me the base MF's and residuals for the Mustang GT 5speed and the Corvette Coupe 6spd. Please assume 3yr lease with 10 or 12K per year. On the Mustang a 24 month term would be nice also. Thank you.

caromba · January 2005

Thanks alot for the prompt response. I'll let you know what happens.

Caromba

hsp · January 2005

Car_man,

We are looking for M3 lease. What is the MF and residual value for 3yrs 12K miles/year?

When is the good time to lease ?

Anyone know there is any left over 2004 M3 in upstate NY and NJ area ?

Thanks in advence

trneal276 · January 2005

I think I just had the worst leasing experience of my life and it has prompted me to let my new lease be my last. I just picked up a 2005 Ford Escape XLT, Leather interior, step bars, moon roof, etc. I turned in my current lease with approx $990 left on it. Not knowing better and also being anxious to get out of my current lease, the dealer ran the #'s and gave me a 39 month lease of $398. There was a $2000 rebate, $500 in renewal cash and $2000 down payment. The total selling price on the RCL contract was approx. $27,000 before those deductions. With the tax in NY being 8.625% and the APR at 6.75%, I truly feel like I got ripped. The MSRP was 26,605 and the invoice price was $23,500. Am I wrong or was this a bad decision.

seacarfan · January 2005

thanks! Car_man

I'm sure you already know it, but you do provide a good sense of security to us car shoppers!

seacarfan

chrisbeau · January 2005

Car_man,

I would like to know the current lease residuals and money factors on a 2005 pathfinder SE offroad 4X2, MSRP 32470. Looking at 36 or 39 months and possibly rolling a little neg. equity into it(2000-2500). Could you also figure up a payment (without the neg. equity!)? Sales price will be approx. 30350, 10,000 mi. per.

Thanks!

joec1210 · February 2005

I am looking to lease a new 2005 RX330 Lexus in the NJ area (w/Navigation/Premium Plus Package/Heated Seats/Levinson Stereo-MSRP 44,833.00) and was wondering if anyone could tell me what they are leasing for and what would be a good goal monthly payment (and for how long) to try to negotiate for?

carshopper22 · February 2005

Hello, we just got an offer for an Acura RSX Auto w/ Cloth for $275 a month before taxes for 36 months, 12k miles per year; with $500 up front money for the first month and misc charges . . . is this a good/fair deal? what are others paying for the same car?

thanks.

CarMan@Edmunds · February 2005

Hi Subeedux. Nissan Motor Acceptance Corp. charges an acquisition fee of $550 on every vehicle that it leases. This fee is a little higher than this in New York and Rhode Island. I am not 100% positive, but I believe it includes gap insurance in all of its leases at no additional charge. Most banks charge around $.15 plus or minus $.05 per additional mile purchased at lease signing. Luxury brands charge a little more than that.

Nissan's January lease program just expired yesterday. I have not had an opportunity to take a look at its new February program yet, but should be able to within the next couple of days. Please feel free to post a quick reminder containing a description of the informaiton that you are looking for in this discussion for me later this week and I will be more than happy to fill you in on what I have been able to find out about this truck's new February lease program.

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CarMan@Edmunds · February 2005

Hi rjbpa. I am familiar with the special lease that BMW was advertising on the Z4 2.5. BMW was using a lease money factor of .00100 and a residual value of 58% to arrive at that payment. This lease program was only scheduled to run through January 31st, though, and I haven't seen its new one yet.

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CarMan@Edmunds · February 2005

Hi hfang. While Porsche Credit's lease program is not that great, it is not outrageously bad either. This leads me to believe that the dealer that quoted you the lease program on this car was marking up its money factor to add additional back-end profit to your deal. This would not surprise me at all. Luxury brand dealers, like Porsche, BMW, and Mercedes-Benz, mark-up rates all the time. I can not tell you what the exact lease money factor and residual value should be for the car that you are interested in are without knowing how long you want to lease it for and how many miles per year you need to be able to drive it. I can tell you though that Porsche Credit's base lease money factor is currently .00230 for leases of three years or longer.

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CarMan@Edmunds · February 2005

Hi edmundophile. I am not intimately familiar with what the market is like for the 2005 Infiniti FX35 right now, but almost $3,000 off of its MSRP sounds like a reasonable discount to me. You may be able to get a better idea of how much this vehicle is going for by visiting the following discussion: "Infiniti FX45 / FX35: Prices Paid & Buying Experience".

As far as this vehicle's lease program goes, its January program just expired yesterday. Its new February numbers have not been published yet, but I expect to be able to take a look at them within the next couple of days. Feel free to post a reminder in this discussion for me in a few days and I will be more than happy to fill you in on what I have been able to find out about this model's new February numbers.

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howard2 · February 2005

Whats the story with MSD's? i see that lexus, bmw, volve among others allows this. What kind of monthly payment difference does it generally make? What happens if the car is totaled?

CarMan@Edmunds · February 2005

Jbaer, once you have negotiated an attractive selling price on the vehicle that you are interested in leasing, have the dealer calculate its lease payment using the "buy rate" or base lease money factor that American Honda Finance Corp. has published for it. Given the level of support that Honda is providing on leases of these models, you will not be able to lease one through an independent bank for less than you will be able to through AHFC. Vehicles' residual values are set in stone and are not negotiable.

Here is the specific lease info for the vehicles that you are interested in. According to the latest information that I have seen, if you were to lease a 2005 Honda Pilot EX without navigation or the rear entertainment system through AHFC right now for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00154 and 61%, respectively. The numbers for an otherwise identical lease of a 2005 Honda Accord EX without navigation should be .00118 and 53%. The residual values for leases of both of these models with only 12,000 miles per year would be 2% higher.

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CarMan@Edmunds · February 2005

Hi howard2. Multiple Security Deposits are a great way to lower vehicles' lease payments. They definitely are much better than down payments because lessees actually get their security deposits back at lease end. Each bank has its own policy as to how many additional security deposits can be made and how much of a reduction in vehicles' money factors each additional deposit provides. BMW's MSD program used to be very attractive, but it has since cut back on it. It now allows consumer to make up to 5 extra deposits, with each additional one providing a .00005 reduction in money factor. I believe that Lexus Financial Services still provides a reduction of .00010 per additional deposit. The exact impact that these reductions will have upon vehicles' lease payments will depend upon the length of the lease and how expensive the vehicle being leased is. If your vehicle is totaled in an accident during your lease, I believe that multiple security deposits should be completely refunded.

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CarMan@Edmunds · February 2005

You're welcome, nw2K5. It looks to me as though you have negotiated a price on this car that is around $700 or so over invoice, give or take a little. Given the fact that a completely redesigned version will be arriving at dealers in the very near future, you may be able to get another couple hundred dollars off of its price, but the one that you were quoted definitely is not bad. You may want to stop by the following discussion for more feedback on 2005 A4 pricing: "Audi A4: Prices Paid & Buying Experience".

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CarMan@Edmunds · February 2005

Hi ltrojan. The fact that the VIN on your lease contract does not match the VIN on your car could be a problem, but if you are happy with the car and nobody else has noticed this I don't see any reason to mention anything about it. If this eventually causes some sort of problem, let your dealer worry about it, it was their mistake. As far as when your payments are due, I suspect that you made your first payment on this car at lease-signing on January 30th. This payment should cover you for the month of February. I don't believe that your next lease payment would be due until the beginning of March.

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CarMan@Edmunds · February 2005

You're welcome, Michael. Enjoy your new car

.

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CarMan@Edmunds · February 2005

Hi cjsot. .00125 was BMW Financial Services' base lease money factor for the 2005 745i in January, which is a good thing. You seem to be getting a significant discount on this car as well, which obviously a good thing as well. If you like this car, I personally don't see any reason not to pull the trigger on this deal assuming every other aspect of it looks OK.

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CarMan@Edmunds · February 2005

You are absolutely right, tipo70. Hondas in general tend to have fairly high residual values. If you were to lease a 2005 Honda Pilot LX through American Honda Finance Corp. right now for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00154 and 61%, respectively.

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CarMan@Edmunds · February 2005

You're very welcome, mellie007. I am glad that you found my post so helpful. Let me know when you have more specific information about the vehicle that you want to lease and I will be more than happy to answer any questions that you have.

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CarMan@Edmunds · February 2005

Congratulations on your new ride, edmundophile. Thanks for taking the time to come back and let us all know how everything turned out. Enjoy!

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CarMan@Edmunds · February 2005

Hi ereynihc. I have seen Infiniti's lease program for the 2005 version of this vehicle. However, its January lease program expired yesterday and it has not published its new February numbers yet. I should have an opportunity to take a look at them within the next couple of days. At that time we can compare the difference between the lease programs for the '04 and '05 versions of the FX35. Please feel free to post a reminder for me in this discussion and I will let you know what I have been able to find out about the new program.

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CarMan@Edmunds · February 2005

Hey coby03. I believe that you are correct. Gas guzzler tax can be paid at lease signing or added into your vehicle's lease payment. I haven't heard anything about an S version of the redesigned Audi A4. I am sure that there will be one at some point, but perhaps not initially. If that is indeed the case, then the current version of the S4 would command a much higher price than if a redesigned one was going to begin arriving in showrooms soon.

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CarMan@Edmunds · February 2005

You're welcome, brianm1. Don't worry about this deal. I don't think that you did badly at all. Could you have squeezed another couple hundred dollars out of this truck's capitalized cost? Perhaps. It also appears that the dealership that you are working with marked up Chrysler Financial's lease acquisition fee by around $150. Still, you did fine and will be even wiser next time you are in the market. Enjoy your new truck.

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