Lease Questions - Ask Here

CarMan@Edmunds · February 2005

Ah ha, I thought so, rxke

. The RL is a really nice car. The only problem with it is that its lack of support makes it fairly expensive to lease. Acura is not currently providing any sort of lease money factor support at all on the redesigned RL. As a result, if you were to lease one through American Honda Finance Corp. right now, you would have to use its standard lease money factors. The last time that I saw it, AHFC's standard money factor for 36 month leases was .00235. Its corresponding 12,000 miles per year residual value should be 57%. I would be more than happy to use Acura's base lease program to estimate a lease payment for you if you let me know this car's full MSRP, including destination, and selling price.

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rxke · February 2005

Hi Car Man

The Acura dealership gave me a selling price of $47,500, 56% residual value(Your figure says it should be 57%) and a money factor of .00235 with 12k per year. The MSRP for this car is $49,470, which includes destination. I live in NY(Westchester county). I am thinking that I could buy this car at a dealer in NJ for $46,500. Could you figure out the monthly lease for 39 months and 15K per year? If not could you figure the monthly lease for 36 months and 12K(apples to apples.

Thanks. You have really helped me in the past negotiate with the dealers.

ddelise · February 2005

Hello -

I am looking for the 36 months lease rate, residual, and any incentives on the 2005 Vibe Base, moon and tunes package, power package, and automatic.

I need 12,000 miles/year. I am located in FL.

Thanks! Damon

lycanthris · February 2005

Actually Car_man the accord DOES have leather but no navigation. Does that change anything?

Thanks again, you have been extremely helpful through this process.

sulimios · February 2005

Hey car man:

I am looking at the audi tt 225 coupe for 36 mos/15k.

The residual I am being quoted is 51% and the money factor is .00075. The price: $38,100 (MSRP is $40,070). I've asked around and have been told that this is a good deal. Any thoughts? Curious as to why the residual is so low (which appears to be the case w/ many of the audis as compared to the bmw and infiniti). I guess what I'm wondering is if I can talk them down, where? price? residual?

thanks!!

brickyarddog · February 2005

Car_man,

What a great forum you have here! Looks like you've been doing this for over 4 years now (based on the date of the first post). Thanks for providing such a great service!

I'm looking for MF's and residuals from GMAC on a 2005 Envoy and a 2005 Tahoe. 12K miles, 36 mos.

Thanks again,

Brickyard Dog

rodist · February 2005

Car_Man can you please supply me with the Money Factors and Residuals on these 2 vehicals

Audi A4 1.8 Cabriolet

36 / 12K / 15 K

42 / 12K / 15 K

48 / 12K

Audi A4 2005 A4 1.8 T quattro® Special Edition

36/12K

36/15K

Just to let you know, my first visit today to a Audi dealership the salesperson quoted me on the Cabriolet. (Did not discuss price yet)

15k mileage Residuals 36/57%, 39/54% 42/49% and 48/47%.

He said MF = .0020 then said they need to make a point on that and said it would be .0032.

I told him .002 = 4.8% interest and .0032 = 7.68%, I said that didn't add up to a point in my book and left. He called me on my cell within 5 minutes but I haven't returned his call till I get my numbers down. <Thanks for your help on this. I know I'm asking for alot of information.

kman1 · February 2005

CarMan,

Great discussion. I'm coming up on the end of my 2002 Highlander AWD V6 lease, and can purchase at 17,500 (including 6% PA tax). Car only has 36K, and is in great condition: Edmunds says 20,417 on a trade/21,710 to private seller. What are your thoughts on buying/flipping versus using the equity to reduce payments on a lease for a 2005 Highlander V6 Limited AWD? Any info on current Toyota lease terms, assuming 12,000 miles per year? Thanks

briegel · February 2005

If you can negotiate a good selling price and get reasonable lease terms (MF) on a new one, use the equity for additional multiple security deposits (which you get back at lease end!) to reduce the money factor and go for a 2005! I know you can do this on a Lexus (I did with my new RX 330)...check to see if you can on a Toyota also. It should reduce the MF by .0001 per additional deposit. I'd really be interested in what you come up with! Good luck!

bama12 · February 2005

Hi Car Man-

I'm looking at leasing an 05 Caddilac STS through GMAC at a local dealer. Here are the details:

05 STS V8

Luxury Performance Package

Adaptive Cruise

MSRP: $61,085

Cap Cost (GMS Employee Price): $53,816

36 mos or 48 mos

15k per year

Can you provide the money factor as well as 36 and 48 month residuals?

Also, is the residual computed based on MSRP or the selling price/cap cost?

Thanks!

cjsot · February 2005

Carman,

The ? that I have is comparing two leases

80370 Msrp

74700 sale price

.00125 MF

Compared to the dealer lease program

799 mth with 3500 down and 5080 due at signing which include taxes tags and other normal things.

I was wondering what the better deal is???????

Thanks guess I wasn't clear enough

CarMan@Edmunds · February 2005

Hi jur. I would be more than happy to give you my opinion on this deal. However, you never mentioned the selling price or MSRP of the XC90 that you are interested in leasing. These are important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this truck's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to work up a sample lease payment on the XC90 that you are interested in for you if you let me know what these numbers are.

One thing that I notice about this deal right off the bat is the $2,000 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 this XC90 would be exactly the same, regardless of whether you had put $2,000 down, or had made absolutely no down payment at all.

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CarMan@Edmunds · February 2005

Hello cmks02. I am sorry to hear about the problems that you are having with your new car. Not to rub salt in your wound, but if I had noticed any major paint defect on my new car during inspection at delivery I personally would have probably asked for a different car or tried to unwind the deal. As long as you have this paint issue repaired properly by your dealer, you should not owe any sort of penalty for excess wear and tear for it when you return your leased vehicle down the road.

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CarMan@Edmunds · February 2005

So you're back to the 300C again, huh, coby03. That's fine with me, (as if you were seeking my approval

) I really like this car. I'm a big fan of its dramatic styling, which seem to be love it or hate it, plus it has a Hemi. $500 over invoice is a pretty good deal on it too. Chrysler Financial's current base lease money factor is actually higher and its residual value lower for a 39 month lease of this car than they are for a 36 month lease of it. They are .00283 and 53%, respectively for the 39 month term with 12,000 miles per year. The reason why a 39 month lease of this car has a lower monthly payment than a 36 month lease of it is that when leasing for 39 months its large initial depreciation hit is spread out over 3 more payments.

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CarMan@Edmunds · February 2005

I am glad that you enjoy this discussion so much, sethi. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

To put your mind at ease about the lease-end process, most manufacturers' captive finance companies, banks that are owned by automakers, are fairly lenient when evaluating vehicles for excess wear and tear at lease-end. In all of the years that I have been hosting this discussion, I don't recall ever seeing a complaint from a consumer about how they were treated when they returned a vehicle that was leased through Toyota Financial Services.

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CarMan@Edmunds · February 2005

Hi namja007. Here is the information that you are looking for. If you were to lease a 2005 Audi S4 Cabriolet through Audi Financial Services right now for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00065 and 54%, respectively. If you were to lease a 2005 BMW 330 Cic through BMW Financial Services right now for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00150 and 61%, respectively. I believe that the redesigned Audi A4 is scheduled to hit dealers in early March. In fact, Audi has already published a lease program for it. There will not initially be an "S" version of the redesigned A4, but I suspect that Audi will introduce one down the road.

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CarMan@Edmunds · February 2005

Here you go, rxke. According to my calculations, if you were to lease a 2005 Acura RL with an MSRP of $49,470, a selling price of $47,500, a money factor of .00235, and a residual value of 57%, I estimate that you would have a zero down, pre-tax monthly payment of around $715. A selling price of $46,500 for an otherwise identical lease would drop the monthly payment to around $684. The aforementioned payments are for leases with 12,000 miles per year. If you were to lease this car with 15,000 miles per year, its payments would increase to around $740 and $710, respectively.

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CarMan@Edmunds · February 2005

Hey Damon. If you were to lease a 2005 Pontiac Vibe through GMAC right now for 3 years with 12,000 miles per, its base lease rate and residual value should be 5.0% and 54%, respectively.

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CarMan@Edmunds · February 2005

Sorry for the confusion, lycanthris. It really does not matter anyhow because while the navigation system has an impact upon this car's lease program, leather does not.

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CarMan@Edmunds · February 2005

Hi sulimios. The lease money factor and residual value that you were quoted for this car are right in line with Audi Financial Services' base program for it. The selling price looks reasonable as well. If you like the car, I personally don't see any reason not to pull the trigger on this deal. The only place that you might have a chance at negotiating a little more is this car's selling price, but it is pretty low already. Any residual value over 50% for a 3 year, 15,000 miles per lease is pretty decent. You are right that this car's residual value is not as high as BMW's are for the Z4 for instance. I have heard that BMW artificially inflates their vehicles' residual values in some instances to hide lease support. Perhaps Audi is just using lease money factor support instead of residual value support.

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ocuihs · February 2005

Car_man:

any good leases for 3 years/36k to 45k including GAP insurance? ($0 down, and minimum up front fees in New Jersey)

cap cost is at invoice. No cap cost reductions.

Thanks!

seden · February 2005

Carman....thanks for the reply and sorry I was in the wrong room. My biggest concern is whether or not to lease at all right now. I am upside down about 2000 with my 97 Lexus and have 2 more years on my loan. I don't know if I should take advantage of the enticing lease offer with Honda and eat the 2000 or wait a year or 2 and hopefully get close to payoff with a trade. I love my Lexus,but am nervous about how old it is. I don't want to get stuck with high repair bills. If I do lease the Accord, would it be best to roll that 2000 into the lease, or pay it off first? Thanks for any advice and hope I made some sense.

cmks02 · February 2005

Car-Man:

Thanks for your reply and advice.

Well...I received the verdict from the Lexus dealer today. The left rear quarter panel and C pillar have to be repainted. They tried wet sanding but that didn't correct the paint defect. Since the paint defect was a major issue when I was doing my delivery inspection, the dealer said whatever happens after the car is "made right" and I have an opportunity to inspect, he wants me to be a satisfied customer. My starting point in the negotiations is a new car. They have one in stock and will hold it for me until the repaint job is done later this week. Then they will give me an opportunity to inspect the job, and decide from that point how to resolve the issue. I'm fairly confident the paint job will be professionally done, but I have this emotional thing about a brand new car being repainted and me knowing it has been repainted. At the same time, I am willing to accept a reasonable compromise, assuming the dealer would warrant the paint job for the 48 month lease term. Would it be reasonable, assuming the paint job turns out OK, to ask for all 5K mile routine service at no charge ("we owe") for the 48 month lease period, rather than going to the extreme of demanding a new car. What is the dealer cost to perform these services, mindful that the car is a Lexus ES330, and based on what I have learned so far, routine service isn't cheap. Also, what is involved on the dealers side in taking back a car (unwinding the deal) and giving me a new car.

rodist · February 2005

Hi Car_Man

I'm trying to cut this deal today if at all possible and would like to ask you if you could please supply me with these numbers

Audi A4 1.8 Cabriolet

MF and Residual for a 3year/12K and 4year/12K

Lease.

Sticker is $40,870, Invoice is $ 37,683 I'm shooting for 38,600.

Thanks for your help.

CarMan@Edmunds · February 2005

Hey Brickyard Dog. You don't by any chance know the Junkyard Dog (an old WWF reference, I know that it was terrible

)? I am glad to see that you enjoy this discussion so much. Yep, I've been at this for quite some time. You're making me feel old

. Let's take a look at the lease programs for the trucks that you are interested in. Before I get into specific about their lease programs, I need to tell you that GMAC, General Motors' captive finance company, publishes what are known in the industry as lease rates instead of money factors for the vehicles that it leases. You can convert its lease rates into approximate money factor equivalents by dividing them by 2400. If you were to lease a 2005 GMC Envoy right now through GMAC for 3 years with 12,000 miles per, its base lease rate and residual value should be 4.5% and 58%, respectively. If you were to lease a 2005 Chevrolet Tahoe through GMAC right now for 3 years with 12,000 miles per, its base lease money factor and residual value should be 5.5% and 56% in most regions. General Motors is providing bonus cash that can be used to reduce these trucks capitalized costs in certain regions. If you let me know what state you are in, I would be happy to give you an idea of what sort of bonus cash is available on them in your area.

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CarMan@Edmunds · February 2005

Hi rodist. I assume that you cut and pasted the names of these cars from some place rather than feeling the need to put the registered trademark symbol (®) next to the word quattro

. Here is the information that you are looking for. If you were to lease a 2005 Audi A4 1.8 Cabriolet through Audi Financial Services right now for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00200 and 57%, respectively. The numbers for an otherwise identical 39 month lease (I have not seen the 42 month program) should be .00220 and 54%. The numbers for an otherwise identical 48 month lease should be .00240 and 47%. The money factors for leases with 12,000 miles per year would be the same, but their residual values would increase by 2%.

If you were to lease a 2005 Audi A4 2005 A4 1.8 T quattro® Special Edition Sedan through Audi Financial Services right now for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00025 and 56%. Again, the money factor for a lease with 12,000 miles per year would be the same, but the residual value would increase by 2%.

I wouldn't allow them to if I was in your situation, but at least the dealer that you are working with told you that they are marking up this car's lease money factor. By the way, you're right adding .00100 to a car's money factor does not increase it by a point of interest, but by almost 2.5%.

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CarMan@Edmunds · February 2005

Welcome, kman1. I am glad to hear that you enjoy this discussion so much. In order to determine whether it is better to purchase your vehicle at the end of your lease, you need to compare its purchase price to its value on the open market at this time. Even though it states your car or truck's purchase option price on your lease contract, you should place a call to the bank that you are leasing it through just to make sure that you have the correct figure. When you do so, it never hurts to try to haggle with them. Some banks will negotiate the lease-end purchase prices of vehicles. If your initial contact at your bank is not willing to lower your vehicle's purchase price, you may have better luck if you work your way up the ladder to a manager. There is a good chance that they will not lower your vehicle's price, more often than not they will not, but you don't have anything to lose by asking.

As I said earlier, once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site, which you have already done. You also may want to stop by the following discussion: "Real-World Trade-In Values". One of our most knowledgeable community members, Terry, frequents that discussion and he is often kind enough to give community members who give him an accurate description of their vehicles with his opinion on their value.

I would be more than happy to try to give you an idea of what Toyota's current lease program is like on the Highlander, but this often varies depending upon which one of its twelve regions one is in. Let me know what state you are in and I will see if I can find out what this truck's program is like in your area.

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CarMan@Edmunds · February 2005

Hi bama12. Vehicles' residual values are based upon a percentage of their full MSRPs, including destination charges. Before I tell you what this car's lease program is like you should know that GMAC publishes what are known as lease rates rather than money factors for the vehicles that it leases. You can convert its lease rates into approximate money factor equivalents by dividing them by 2400. OK, right now GMAC's 3 year, 15,000 miles per lease rate and residual value for the 2005 STS V8 are 4.75% and 56%, respectively. The numbers for an otherwise identical 4 year lease should be 4.75% and 47%. Using these numbers, an MSRP of $61,085, and a selling price of $53,816, I come up with zero down, pre-tax monthly payments of around $719 for 3 years and $687 for 4 years.

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carbert · February 2005

CarMan,

What are your thoughts on the Volvo Advance Payment Lease for an S40? Is the single payment structured as a capital cost reduction, or a true lease payment? What happens if the car is stolen or totaled during the lease? Are there any downsides to the program? What sort of money factor would one expect to see under this program, versus a traditional lease?

Thanks.

sis2 · February 2005

Hello CarMan,

Will you give me the residual and money factor for this car with navigation(LP Package)? (I saw your previous post w/o it). Tier 1 for 24 months. I was/am planning to buy at end of March.??

But,I need some suggestions/advice.

1.Should I lease for 2 years until the redesign ('07??)? (from the talk, I think I might a sleeker, more Benzlike look).

2. If I do lease first, does this help me when I buy later?

3. When redesigns come out are the prices negotiable? If so,when?

What's your take?

Appreciated it.

Sis

kman1 · February 2005

Thanks for the prompt response. My region would be Pennsylvania, and I'd be looking at the Highlander Limited v6 AWD w/ Touring Package and leather seats for a 36 month/12,000 miles per year term.

Meanwhile, I'll drop in on the other discussion. Thanks again.

wilt1 · February 2005

Car- man, I live in New Jersey and was just quoted a lease deal of 428.00 per month for 42 months with 2,000.00 out of pocket on a 2005 Acura TL w/o navigation. The dealer offered to sell me the car outright for 31,100.00. This lease sounds a little high to me is it? The monthly payment does include tax.

bs0 · February 2005

Hi,

Sorry for missing details!

sell - 23022

msrp - 25120

state - illinois

dest charge - 525

hope you see this soon as i need to decide buy or sell by 7pm tonight.

thanks

wifrbr · February 2005

Thanks Car_Man

Couple other questions. Where did you get these #'s. I ask because when I am negotiating the price how do I prove to the salesman that these are the #'s he/she should use. Also looking at VW Credit website, they mention another option, Drivers Option, do you know anything about this?

Thanks again

wifrbr

brickyarddog · February 2005

Well, I'm not familiar with the WWF reference, but I did have that phrase in mind when I created my name. I do mean brickyard, as in the Indianapolis Motor Speedway, which puts me in GM's North Central region. I believe the current bonus cash offers (and rebates) total $3500 for the Envoy and $4000 for the Yukon. Let me know if this jives with your information.

I have access to GMS pricing, so with the information you've provided, and the information from gmfamilyfirst.com, I can "build my own" and come up with a lease payment without even talking to a dealership. (sweet)

Thanks for all of your help.

camil82 · February 2005

Car_man:

Am considering leasing a 2005 BMW 530i from a Ft. Lauderdale dealership. Term is 36 months, w/15K annual miles. MSRP is $53,865. Dealer indicates capitalized cost would be $52,000, money factor is .00180, and residual is 60% of MSRP. Monthly payment is approx $725.

I'd appreciate any thoughts you have on the above lease terms.

kirk123 · February 2005

My 3 year Honda lease on 03 Accord ends in November. My tires look pretty worn. Is the leasing company likely to charge me for 4 new tires? Is it a good idea to buy new tires now?

rxke · February 2005

HI

Thanks for your help. I will keep you informed as to how I am doing.

kyfdx · February 2005

Your leasing company (Honda Finance?) will give you a pre-turn-in inspection about one month before the end of your term.. They will measure the tread depth, and if it passes.. no tires needed.. If it fails, then you have time to get the tires replaced before turn-in.

However, November is 9 months off.. If the tires already look bad, you might have a safety issue. If you are positive the tires will be worn out by November, you might as well buy new ones now, and benefit from driving on the new tires for the next nine months...

macp · February 2005

I am considering an Infiniti 2006 M45 Sport. The dealer of course wants full sticker. They have quoted me around a $58k price + tax.

I also got a lease quote which was $859 for 36 months with 15k miles/year. Lease factor of .0019 with a residual of 60%.

Is this a fair deal? I am thinking of going with the lease because of the high residual being very optimistic on Infiniti's part. I can pay cash, if necesary with trading my '03 Lexus GX470.

Your thoughts please.

twoof1 · February 2005

Car_man,

First of all let me tell you that I greatly appreciate the advice and service you are providing here.

Now to my question; I am wondering what your opinion is of utilizing multiple security deposits to lower the money factor is? Here's my situation:

2005 Lexus RX330 FWD 36 month 12,000 mile lease

Base money factor (770 FICO)= .00135 (3.24%)

with minimal drive off ($852.00) my payments would be $503.61 per month.

I can place up to 9 additional security deposits @ $525.00 each for a total of $4,725.00 which is fully refunded at lease end. This would reduce my money factor to .00045 (1.08%) which would reduce my monthly payment to $428.18 per month for a net savings of $75.43 per month x 36 months= $2,715.48 total savings. That would represent a 57% return on my $4,725.00 deposit if I were to invest it (which I probably could not match in todays market).

It all seems to make good financial sense to me and I'm just wondering what your thoughts are or if I'm missing something?

TIA

fbayr · February 2005

Car_man,

I want to purchase a 2005 Escalade AWD with an MSRP of $62685. My dealer is offering a lease of 36 months with 15K annual miles for $907.05 which includes tax. The sale price is $58300, the rate is 3.35% and the residual is $31050. Can I do better, or is this about right?

briegel · February 2005

I did the same thing with my 2005 RX 330 AWD lease with LFS, but only two additional deposits for a total of $1000. I believe it is a good way to go with a good return on your money! Anyone else with thoughts or comments?

rodist · February 2005

Hello Chicago area buyers.

I just got bait and switched by Schaumburg Audi.

Went in today, spent 2 hours with the salesman and agreed on a deal on a 2005 A4 1.8 Quatro.

Final numbers were 420/month 3 year lease 15K first and security down. MSRP 32,370.

Salesman was agitated I had base lease figures and a disclosure statement I created in excel(Thanks Car_Man for my numbers) in hand during negotiations.

Went around with the Base money factor for a while and came to an agreement. Left with the intent to come back with my wife and 10 year old to pick up the new ride. Returned 3 hours later after he phoned me to see what time I was coming and had us look at the car (Only thing I didn't like was the silver interior but that model is running low) Came back to his desk to do the paper work and he told me the car was sold to someone else and would I like to look at the A.4 Quatro in the show room for 36,300 (No Special edition and loaded) He knew I eye balled that car throughout the day.(Sport package, Ebony interior, and the aluminum trim and bose system was nice) Said he would make me a great deal on. Nice deal 500 under list MF @ .0025 and a payment 499 with 500 down.

Think I used the MF saying but not as Money Factor and walked out. 2 minutes later a man from Napelton Audi called found me an A.4 Dolphin with Ebony SpecialEdition, Cold Weather Pack, Bose system and without batting an eye tells me 428/month 3 year 15K lease First and Acquisition down, no security deposit. I'm in Illinois and this price includes full tax built into the cap cost ($2,201)

Deal Is MSRP 33370 Sell 31450 (400 over invoice)

7% tax on that leaves 33661 Adjusted cap cost.

56% residual and a money factor of .00025

Bingo $ 428.76.

Sorry for the long story but I needed to vent.

My wife is really pissed, yet happy.

Thank for all your help everyone!

krohrer2 · February 2005

Car_Man:

Interested in learning the Toyota Financial Services MF and residual for a 2005 Toyota Highlander 4x4 V6 (Model #6928)-- 36 months, 12K miles a year. I live in northern Virginia. Have seen advertised nationally for $269/mo (1,999 due at signing)

Thanks.

KR

qizzy · February 2005

My company is offering a "prize" to top achievers: a leased BMW 3 series, or Merc or Lexus, (all smallest 4 door basic standard equip only models)for twelve months. All other costs to be paid by me. (18k mileage). I may be liable for penalties at lease end...what other costs could I be stuck with? What do I do at the end of this lease? The alternative is to buy a new car and they would pay the equivalent of lease pmts for one year. That seems better, is it? I would appreciate any input, as I have not leased a car before. Also, I am not driven by the glamor of driving a "luxury" car enough to overlook financial pitfalls.

jur · February 2005

THanks, Carman...obviously, leasing is new to me. I will check into this further. My husband and I have always paid cash for cars, but with three children in college and huge tuition bills, we thought this might be an option and a good way to keep out cash fl. I tried to find the response to my question, but it was not on the board i had posted. Sorry for being such a newbie, but how do I find your response in these forums. I thought I would go to my original post and it would be under my question/post, but I just found your response while perusing the boards.

gwudc · February 2005

Thanks for the information Car_man! It has been extremely helpful.

Thanks again.

jbtwo · February 2005

Just started to look for a new car and headed over to a local Lexus dealer. They quoted the following and was curious if it was a good deal.

2005 Lexus ES330

MSRP - $35,419

Lease payment of $498.00 per month.

Lease term - 36 months/36,000 miles.

Lease payment includes sales tax for Illinois.

Only first payment is required for start of lease.

Sorry I don't have any other information.

CarMan@Edmunds · February 2005

Hi carbert. I am not all that familiar with Volvo's specific Advance Payment lease program, but I can tell you in general how advance pay leases work. They actually are very similar to normal leases, except for the fact that all of the lease payments for the vehicle that you want are added up into one lump sum that is due at signing. Consumers who opt for this sort of lease are given a reduction in the money factor that is used to calculate the interest portion of their lease, but advance pay leases are usually not interest free. I am not sure of the exact deduction that Volvo Finance provides for this sort of program. If your vehicle is for some reason considered a total loss for insurance purposes during your lease, you would receive a pro-rated refund for the unused portion of your lease.

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