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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey Sis. Unfortunately the 2005 LS 430 is one of the few models that Lexus is currently not providing any sort of lease support on. As a result, if you were to lease one through Lexus Financial Services, you would have to use its standard lease money factor of .00205. LFS' residual value for a 2 year, 15,000 miles per lease of an '05 LS 430 with navigation is currently 60%. This lease program is scheduled to run through March 31st, but of course manufacturers always reserve the right to make unscheduled changes to their programs.

     

    If you are interested in getting the redesigned version of this car when it comes out, there's nothing wrong with leasing the current version for two years. Keep in mind though generally speaking, the shorter a lease is, the higher your monthly payment will be. This is because new vehicles experience their highest rate of depreciation during the first year of ownership. The longer your lease is, the larger the number of payments you have to spread out this substantial initial depreciation hit.

     

    Leasing usually does not help consumers get a better deal on their vehicle down the road if they want to buy it. Vehicles' lease-end purchase prices are based upon banks' residual values. Many banks use unrealistically high residual values for some models, making them more expensive to purchase at lease-end than an equivalent used model that was not being leased. Some banks are willing to negotiate lease-end purchase prices, but more often than not they won't.

     

    Dealers usually will not provide much of a discount on new or redesigned vehicles that are well received by consumers. This makes sense if you think about it. They have a finite supply of vehicles. If someone out there will be willing to pay full price for a model, why would a dealer want to discount it for you? It is difficult to say at this point how well received the redesigned LS 430 will be when it is introduced, or even what its MSRP will be like at this point. As a result, we can only guess what its selling prices will be like. I suspect that Lexus dealers initially will not be providing much in the way of discounts on it, but it is difficult to say how long this trend will last.

     

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome, kman1. Pennsylvania is in Toyota's Central Atlantic region. According to the latest informaiton that I have seen, if you were to lease a 2005 Toyota Highlander Limited V6 AWD through Toyota Financial Services in this area for 3 years with 12,000 miles per, its base "Tier 1" money factor and residual value should be .00116 and 58%, respectively.

     

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello wilt1. I would be more than happy to work up a sample lease payment on this car that you can compare to the quote that you have been given. 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 this lease is for, 15,000 or 12,000.

     

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    No problem, bs0. It happens all the time. Let's work up a sample lease payment on this truck for you. According to my calculations, if you were to lease a 2005 Toyota RAV4 4WD with an MSRP of $25,120 (does this number already include destination?) and a selling price of $23,022 through Toyota Financial Services right now for 3 years with 12,000 miles per, your zero down, pre-tax monthly payment should be around $250.

     

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome, wifrbr. Trust me these numbers are definitely right. You will not have to prove anything to the salesperson that you are negotiating with because you both will know that these numbers are right and if he claims otherwise he is trying to mislead you. Volkswagen's Driver's Option program is what is known in the industry as a balloon note program. Balloon notes are very similar to leases in that they provide consumers with low monthly payments and an option to purchase their vehicles at the end of a specific period of time for a certain price. The main difference between leases and balloon notes is with leases the bank's name is on vehicles' titles while with balloon notes the consumer's name is. Balloon notes have become more common lately in states that have vicarious liability laws, like New York, because the protect banks against being sued in the even that a leased vehicle was involved in an accident.

     

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Ah ha, I should have know that your name was a motorsport reference, brickyarddog. The cash incentives that you mentioned for the 2005 GMC Envoy and Yukon are customer cash, which is not compatible with GMAC's lease program. In its North Central region, General Motors is providing a $1,000 bonus for '05 Yukon models that are financed or leased through GMAC and $1,500 bonus cash on the '05 Envoy for any type of purchase. You definitely should take these allowances into account when negotiating these trucks' capitalized costs. Dealers will be extra motivated to sell you these SUVs this month because General Motors has a number of behind-the-scenes dealer incentives on them in February.

     

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi camil82. It definitely appears as though the dealer that you are working with is trying to mark-up BMW Financial Services' base lease money factor for this car to add additional back-end profit to your deal. BMW FS' base lease money factor for a 3 year lease of this car is currently only .00125. Using its actual base factor, an MSRP of $53,865 and a selling price of $52,000, I estimate that this car should have a zero down, pre-tax monthly payment of around $653. As you can see, you definitely should shop around to see if you can beat the deal that you were quoted, or at lease do some more haggling with your current dealer.

     

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi kirk123. American Honda Finance Corp. is usually very lenient when evaluating lease vehicles for excess wear and tear at lease-end. Excess tire wear alone may not be enough to cause you to have to pay an excess wear and tear penalty, but if your car is in rough shape, you will have to pay a penalty. You can read all about AHFC's lease-end process and see the "The Self Inspection Reference Card" that is provides lessees to act as a guide for to estimate potential excess wear and use damage areas prior to your lease end inspection by clicking on the following link: AHFC Vehicle Inspection Process.

     

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're very welcome, rxke.

     

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  • kirk123kirk123 Member Posts: 3
    You are awesome! My car is in great shape and I will save $500 on new tires. Thanks
  • prischprisch Member Posts: 16
    Hello Car Man,

     

    Back in late December AFS had a real good money factor for their S4s for a 42 month lease. Do you know what the current money factor is for the lease and what the residual is for an S4--automatic/premium package--MSRP of 50,420--12K miles per year? Thanks for your help.

     

    Also, I thought I saw where you said Audi had published the rates (money factor/residual) for the new A4--if so, could you post those?
  • jurjur Member Posts: 4
    It is my understanding in Maryland you have to pay sales tax up front. Sales tax on a $38,000 (if we pay cash, the price is $36,999, plus tax and tags) car would be $1,900 – which with taxes and tags would be our down payment. By my calculations from your website, the MSRP is $42.375, Invoice $39,360. Will the dealer reflect this same MSRP?

     

     Also, regarding MSRP and invoice cost, is the exact number that significant, as long as we know what we would pay for the car if we paid cash for it.

     

    Thanks, Carman, for your input!
  • joy3joy3 Member Posts: 4
    I spent a good part of yesterday negotiating what I hope is a good price for a 2005 Dodge Grand Caravan SXT ($325 a month + $180 down) for 39 months (15K miles). I woke up this morning and realized I completely forgot to tell about my 2003 Civic trade-in. (Another dealer offered what came out to 2K on it.)

    I do remember hearing it was a good stategy to negotiate first but the truth is I really did forget. Now I feel guilty and don't know how to break it to this guy, unless someone can tell me that at this price he is still making a tidy profit and will even with my trade in. I don't want to begrudge someone their living, I just wanted to be able to afford the monthly payments pretty easily. Any thoughts??
  • wilt1wilt1 Member Posts: 13
    Carman The MSRP on the vehicle in question was 33,490.00 and it was for a 12,000 mile a year lease. Sorry kind of new to this. Thanks for your help.
  • jbaerjbaer Member Posts: 45
    Car_man -

    I was looking in the rebate/incentive section of intellichoice today and they reported that the special lease deals were on the Honda Accord's with Auto only. The manual's seemed to just have 2.9% APR. Is this possible? I am in market for 2 accords...one auto and one manual so that is why I am asking. Thanks in advance.
  • kman1kman1 Member Posts: 12
    You Da Man. Seriously, thanks.
  • dallas_samdallas_sam Member Posts: 2
    I leased my car through a third-party leasing company. The lease ended up being through FELCO (who is now out of the leasing business and turned over all remaining leases to a collection agency). When it came due this month, I was told to turn it in at a local auction house. I called them and asked to have it inspected prior to turning it in so I could have the opportunity to fix anything I would be charged for. They said that was impossible, I couldn't even be present for the inspection.
    Long story short, I was faxed the damage report yesterday. The auction house's inspectors list the damage at $1600, all for scratches and dings (nothing mechanical, mileage or interior related). I had the car professionally buffed at a body shop prior to turning it in and there wasn't a scratch on it. I also took it to a friend in the leasing business who inspected it and said it was "mint" and saw nothing I could be charged for. My question is do I have any recourse? Can I somehow dispute these charges? I didn't take pictures before turning it in, I just assumed they'd be honest. Big mistake I guess. I think they are trying to recoup some of the loss they are going to take (they way overestimated the residual value).
    Also, I was about 17k miles UNDER my mileage, does that give me any bargaining power?
  • jurjur Member Posts: 4
    HOw much haggling should I do with price if the dealer's lease offer and monthly payment, is satisfactory to me? On an XC90, AWD, Premium and Climate Package and Metallic Paint, 500/month with $2000 down for four years, 10,000 miles per year. I know in another post you said you would rather put $0 down, but if I rolled the tax into my monthly payment, then I would be paying interest on the tax through my monthly payment, right??

    I initially thought I would buy the car and pay cash...no financing, but the leasing is very appealing to me, but I have never leased and I want to be sure I am aware of any hidden costs or unknowns. Carman, you said I need to know the MSRP and selling price of the vehicle and I must say, this was never discussed, though I did call to find out the MSRP and was told $39,500, which sounds more like a selling price than the MSRP. On your site, the MSRP was $42,375, with an Invoice of $39,360 and a TMV of $38,860. Please advise quickly. I need to make a decision soon!. Thank you very much. I am very confused at this point
  • camil82camil82 Member Posts: 2
    Thanks for the input. I'm now talking with other dealers.
  • bja104bja104 Member Posts: 26
    Can you please tell me the Feb. money factor and residual for an '05 Acura TL without navigation, 36 month lease, 15,000 miles ($0 down).

    Thanks.
  • maryvmaryv Member Posts: 10
    Okay - car shopping today. Loved a VW Jetta. The msrp is 22500. Has leather and heated seats (!). According to the salesman, they are selling it to me for 20488, residual value = 11250 (50%), money factor = .00049. 36 month lease (15,000 miles) = 288 / month lease. I am getting a gift of $5000, which I plan to put down. They tell me my lease payment will then be $188.52 / month. Then I see a Saturn Vue. MSRP 21750, 36 month lease = 299 / month. Residual value = 59%, payment with $5000 down = $160 / mo. This makes no sense to me. According to Saturn salesman, the money factor = .75 (must be missing a few zeros). The VW is less sales price & lower money factor, albeit a lower residual % (50% v. 59%). Is someone at VW doing funny math with me? I really like the car, but I don't want to be had.
  • maxim49maxim49 Member Posts: 41
    Car_Man - can you please get me the residual and MF for a 2005 Toyota Rav4 AWD automatic. Either 10K miles/yr or 12K miles/yr for 36 or 48 months.
    By the way, I'm still loving my G35 coupe!

    Thanks!
  • bama12bama12 Member Posts: 17
    Car man- Thank you very much! You're awesome.
  • carbertcarbert Member Posts: 23
    CarMan,

    Thanks for the info on Volvo's Advance Payment Lease program. I'll find out what sort of reduction they offer.

    Volvo is advertisting an S40 lease deal at the moment: $23,721 cap cost reduction $2,850 36 months @ $229 +tax residual $13,005. So, should I be expecting a 55% residual value? And what is the MF they are using here.
  • ronald15ronald15 Member Posts: 21
    Car Man: Quoted the following on a 2005 Nissan Altima lease for 24 months and 12,000 miles per year; MSRP $22,590; Cap Cost $20,590 plus a $550 acquisition fee for total Cap of $21,140. Residual is $15,813 and the interest rate factor is .00021. Dealer quoted a monthly lease payment of $229.71 plus 5% sales tax for a total of $241.20. Up front fees are first month payment of $241.20, Doc fee of $297.00 plus registration and inspection fee of $117 for a total of $655.21 Dealer said offer good till February 28, 2005. Based on the above figures, is the monthly lease figure correct and is this a good deal??
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello macp. Infiniti Financial Services' current base lease money factor and residual value for a 3 year, 15,000 miles per lease of a 2006 M45 Sport are .00175 and 60%, respectively. This money factor assumes that you pay a security deposit. IFS will waive its security deposit requirement in exchange for a .00015 increase in the money factor that is used to calculate your car's payment. I would be more than happy to work up a sample lease payment on this car for you that you can compare with the payment that you were quoted, however in order for me to do so I need you to tell me this car's full MSRP.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Thank you very much twoof1. If you have the money to make multiple security deposits on your lease, it is a great way to lower your monthly payment. It is a ton better than making a down payment when leasing, because you actually get your security deposits back at lease-end. I am surprised that more consumers don't make additional deposits instead of making capitalized cost reductions. Of course, additional deposits don't go as far as they used to with many banks. A number of captive finance companies that used to provide .00010 deductions for additional deposits have reduced their deduction to .00005. All you need to do is decide if you can get a better return on your $4,000 than the savings that will result from using that money as additional deposits. According to my calculations a savings of $2,715.48 over the lift of your lease would be $905.16 per year, or a return of over 19% annually on your investment, which is pretty darn good.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi fbayr. General Motors Acceptance Corp.'s base lease rate and residual value for a 3 year, 15,000 miles per lease of a 2005 Cadillac Escalade are 3.1% and 50%, respectively. Using these numbers, an MSRP of $62,685, and a selling price of $58,300, I estimate that your zero down, pre-tax monthly lease payment should be around $865. Once tax is added in, this is pretty close to the payment that you were quoted.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    I am sorry to hear about your unpleasant shopping experience, rodist. At least everything worked out well at the end. Thanks for taking the time to come back and let us all know how everything turned out. Enjoy your new car.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey KR. I believe that Virginia is in Toyota's Central Atlantic region. If you were to lease a 2005 Highlander 4WD (non-Limited) through Toyota Financial Services in that area right now for 3 years with 12,000 miles per, your base lease money factor and residual value should be .00116 (Tier 1) and a whopping 65%, respectively. This is a pretty attractive lease program.

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  • bc2003bc2003 Member Posts: 1
    Hi Carman,

    Was wondering if I could get the February MF and Residual Percentage of the 2005 Acura TL w/o Nav. at an MSRP of $33,470, 15,000 miles/year, 36 month lease, with $3,000 down.

    Thanks for all your help!!!
  • cstowecstowe Member Posts: 101
    Mary,

    PLEASE dont put $5000 DOWN on a lease. Just dont.

    Put it in a savings account and take the $100 out every month to pay towards your lease if you have to.

    If you get in a wreck or your car is stolen then so is your $5K.
  • millikin54millikin54 Member Posts: 9
    Carman,

    I am hoping that you can provide me with the money factor and residual values for the 4X4 SLT and 4X4 Limited packages for 12k and 15k mile leases.

    I would also like to know if I am eligible for the $1000 rebate (in addition to the $2500 rebate) since my wife is financing a minivan through Chrysler Financial. The minivan is a buy though, and not a lease.

    Thank you.
  • wilt1wilt1 Member Posts: 13
    Carman the MSRP on ther vehicle quoted to me was 33490. The lease was for 42 months 12000 miles per year 428.00 per month including tax. 2000.00 down which included first month and mv fees
  • rbullrbull Member Posts: 1
    Considering leasing a 2005 Mini Cooper. $17,500. 48 month lease with a residual of $9,000.00. $1100.00 up front with a 7% interest rate. Lease payment would be $285.52 per month. Also, any information you have in regards to a business leasing verses paying mileage at .36 cents per mile/.

    Thanks,

    Rbull
  • indysoobindysoob Member Posts: 3
    Carman,

    Can you please give me the money factor and residuals for a '05 Nissan Murano SL 2WD and a Honda Pilot EX-no options. Looking for a 36-42mo term and 12k miles/year.

    Thanks! This forum is a great resource.
  • justice2justice2 Member Posts: 2
    The lease offer on this Pathfinder is $429 per month with $1999 down for 39 months. The MSRP is $38,930 with the capitalized cost at $35,471 which includes a $550 non-refundable acquisition fee. This is also a 12,000 mile lease. I saw people asking about the money factor. How do I know if this is a good lease? Can I try to get the vehicle cost reduced. The invoice price is around $35,400. Thank you
  • yazyaz Member Posts: 4
    Although it may be difficult to equate money factor to interest A.P.R., I heard a "quick and dirty" conversion factor is to multiply by 2.3 and that will get you an approximate interest rate for a leases. Is this in the ballpark??

    Thanks!
  • yk40yk40 Member Posts: 19
    Hi CarMan,

    Great help thanks!

    Can you please tell me the base MF and RV for

    a) BMW X3 2.5i at 36 Month and 12K/year
    b) BMW X3 3.0i at 36 Month and 12K/Year

    Thanks ...
  • kyfdxkyfdx Moderator Posts: 265,456
    Multiply the money factor by 2400 for an equivalent APR..

    Example:

    .0015 MF = 3.6% APR

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  • jririshjrirish Member Posts: 2
    Quick question: Is it true that any money "put down" at the time of a lease, which means separate from required tax, title, security, etc is a loss if the car is stolen or totaled?? Is it important to insist on gap insurance terms with a dealer to insure that you do not lose that money so to speak. I am having a debate with my wife over whether or not it pays to put down about 2500 (which includes tax, tags, title, first payment, along with cap cost reduction) for a lower payment because the cap cost reduction is essentially "lost" if the above mentioned occurs. This is separate from an entire other debate about monthly payment differential and what money would be saved or lost by reducing cap cost on the front end. But as with any marriage, I am taking it one disagreement at a time...feedback would be greatly appreciated. JR
  • danf1danf1 Member Posts: 897
    Putting money down on a lease only serves to lower your payment. You will not build equity as you are not buying the car. I typically recommend putting as little down on a lease as possible. Gap insurance is another issue. Most leases include it for you, if not then buy it.

    Unfortunately, dealing with cars is much easier than dealing with wives so I'm afraid I can't help much on that front.
  • cemmelcemmel Member Posts: 1
    Hello CarMan,

    I have a question regarding poor credit when leasing a vehicle. I do not have my credit score handy, but to give you an idea of what I'm dealing with, I have multiple 90-day+ late payments on credit cards and a repossessed vehicle in my history.

    With that said, I'm now working full-time, have paid off my debts, and have established a savings account. I've been looking into buying or leasing a car, and it looks like I can get a much better deal by leasing the car that I want.

    The question is: How much is my credit going to effect my ability to get a lease if I were to be able to put more than half of the total cost down up front? How much would it effect my ability to get a lease if I were to pay the entire cost up front?

    Thanks in advance...
  • balapbalap Member Posts: 12
    Hi kyfdx
    I just got a revised quote from the BMW dealership in Seattle, WA. The Black saphire BMW X3 3.0i with Premium package, Metallic (black color)/Gray leather, cold weather package and nav + auto trans. It has privacy glass as well. The MSRP was 42170 (incl destination charge). The deal on lease we were quoted was as follows for 12k/yr for 36 months :

    Sale price - $40,905 (could come down to $40,500)
    Downpayment - $817 (incl 1st payment
    Monthly $549.14 (pre tax)
    They claim the residual would be 61%.

    Does this deal look good ?

    Thanks.
  • balapbalap Member Posts: 12
    Hi car_man
    I just got a revised quote from the BMW dealership in Seattle, WA. The Black saphire BMW X3 3.0i with Premium package, Metallic (black color)/Gray leather, cold weather package and nav + auto trans. It has privacy glass as well. The MSRP was 42170 (incl destination charge). The deal on lease we were quoted was as follows for 12k/yr for 36 months :

    Sale price - $40,905 (could come down to $40,500)
    Downpayment - $817 (incl 1st payment
    Monthly $549.14 (pre tax)
    They claim the residual would be 61%.

    Does this deal look good ?

    Thanks
  • bake21bake21 Member Posts: 3
    Hi Car man,

    I'd like to know the MF and RV for the following cars:

    1. Infiniti G35 coupe 6spd, 36 & 39 month 15k.
    2. Pontiac GTO 6spd, 36 & 39 month 15k.

    Thank you.
  • iwants2000iwants2000 Member Posts: 6
    Hi Carman,

    I'm researching on an 05 Honda S2000 and would like to know Honda Financial Services' current money factors and residuals:

    - 36, 39, 48 month (for both 12K and 15k miles).

    I was told from the dealer that HFS changes their lease terms weekly. Do they really revise them that frequently? I understand Honda may not provide any lease support on this car now, so are there other banks that is competitive? Or just stick with HFS? Are their rates seasonal or just a function of the current interes rate environment? I want to get the car now, but should I just wait? Thanks in advance!
  • iwants2000iwants2000 Member Posts: 6
    Oh, I have tier 1 credit. What the range of credit score to quality for their best rates? Are they pretty strict on underwriting their leasees in the tiers?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome, jur. Wow, you have three children in college at the same time! Now that must be expensive. I commend you for helping all three of them out. In order to find responses to your posts, you have to read all of the new messages in the discussion that you posted it in. I always refer to the post that I am responding to in my message title.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    No problem, gwudc. I am glad that I was able to help you out.

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