Lease Questions - Ask Here

lycanthris · February 2005

Thanks so much for your help with this. We picked up the car this weekend, and thier numbers matched mine exactly. Made the leasing process easier than I could have imagined. Thanks again.

chriscon · February 2005

Hi car_man,

Looks like you give out great advice here. What money factor and residual value can I expect on a 2005 Highlander 4x4 V6 in the philadephia region based on 15K miles year.

Thanks for the help

nickmo · February 2005

thanks Car_Man, the dealer gave me a "ballpark figure" of around $400 when i had stopped in, so it seems like he wasn't pulling my leg.

couchman57 · February 2005

I'll reply first by saying thank you for providing this detail....my research to date on this issue has come up with nothing.

My research does shows MSRP at $39,000 (rounded up) with all-wheel drive, nav, smart-key, rosewood, satellite-radio, leather (package "C")etc. I expect to pay near invoice at $36,000. With a residual from ALG reporting 58% with zero down, I am expecting a monthly payment range of $520 - $575 depending on the actual sale price. ALG does not report the number of miles used to calculate the redisidual. This calculation uses a money factor of .0019. If you can also provide:

> Residual
> Accurate Money Factor
> Infiniti Acquisition Fee - if any
> Disposition Fee - if any
> Applicable Cash Back or rebates - if any

I appreciate the data you can provid in helping us make the right decision on mileage and helping us get the right deal!

couchman57 · February 2005

While I knew not to put any dollars down, it is your advice that makes the reasons clear...thank you!

lmacmil · February 2005

From the same manufacturer? I am asking because I have seen recent quotes on Acuras with money factors of .00235 (TSX) and .0022 (TL). Since the money factor relates to interest rates, should they be the same from a given finance company?

coby03 · February 2005

Car_man,

Thanks for all your help. After many tough decisions, my wife and I decided on the 330Ci (with Performance Pkg, Premium Pkg, Xenons, and heated seats). The low money factor (0.0008) and high residual (60%) for a 3 year/ 12K per year lease won us over. Oh yeah, so did the car itself. First time bimmer, they seem to have something with that "Ultimate Driving Machine" stuff! In jet black, it's a real nice looking car too (and nice that I like to detail cars as well!). Anyway, paying $480/mo so it met the wife's "keep it under $500/mo and it's OK" test. Now we just have wait agonizingly for it to come in!

sundu17 · February 2005

Hello,

I am coming to the end of my 4 year lease on my 2001 Jetta V6. The car is in pretty good shape except for a few blemishes. Does anyone have an idea on what are the charges I can expect?

Would it make sense to sell the car? If I did sell the car, what do you think I should expect? If I was able to sell the car, what penalties might I expect to pay?

I would be really grateful for any input on this topic.

Thanks
Sundar

deca1980 · February 2005

In negotiating a potential lease I first set a price of approx. $31000. I am upside down on my current lease about $1000. The salesman quoted me about $50 more per month on a 2 year lease to wrap it in. However, when I inquired about a lesser car which had to be at least $1000 less in price it only dropped the monthly lease $10 per month. What gives? Also, any deals on a G35 auto lease? Thanks

carbert · February 2005

Thanks, CarMan. So, if the current mf on an S40 is .00018, that works out to 0.432%. If I get that reduced much for an advance payment lease, I'll be looking at a pretty good rate!

mattdal · February 2005

I am looking to purchase an XUV, but was talked into looking at the smartbuy program. I know what I am getting into with purchases, but the smartbuy #s have me confused. Here are the details. IT is a GMC Envoy XUV. MSRP with options is $40,745 (that includes the option discount of $3150). The purchase price is $37302 with taxes and fees. With trade and and cash down of $1800 the total financed is $35502. I was quoted a Smartlease payment of $476.68 for 47 months at 6.5% with a final payment of $20438. The main question I have is the finance rate. Is it inflated or can they do better? Thanks

CarMan@Edmunds · February 2005

No problem, prisch. If you were to lease a 2005.5 (I'll never understand why Audi didn't just make the redesigned A4 a 2006 model) Audi A4 2.0L Sedan with quattro through Audi Financial Services right now for 39 months with 10,000 miles per year, its base lease money factor and residual value should be .00155 and 55%, respectively.

The money factor and residual value that you were quoted to lease a C230 Sport Sedan are right in line with Mercedes-Benz Credit Corp.'s base lease program for this car. You should be able to negotiate an attractive selling price, but you won't be able to get a lower money factor than this.

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CarMan@Edmunds · February 2005

Hi grantchstr. I am not sure if Volvo Finance will negotiate the lease-end purchase prices of vehicles. You might as well give them a call and give it a shot. You don't have anything to lose by asking. If your initial contact there is not willing to work with you, you may get better results by working your way up the ladder to some sort of manager. Good luck and let us know how things turn out.

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CarMan@Edmunds · February 2005

Hi froydianslip. I am not aware of any Web site that provides the sort of information that you are looking for to the general public.

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CarMan@Edmunds · February 2005

Here is the information that you are looking for, nycguy3000. According to the latest information that I have seen, if you were to lease a 2005 Honda Accord Sedan EX V6 with navigation 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 .00118 and 51%, respectively.

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CarMan@Edmunds · February 2005

Hello bbrhs. You are definitely better off if you have the dealer that you get your new truck from cut you a check for your Bravada rather than using the proceeds from it as a down payment on your new lease. Since you are eligible for the General Motors' employee purchase price on your new Envoy you are getting a good deal on it.

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CarMan@Edmunds · February 2005

You're welcome, graphicguy. You're right, if I was in the market right now for a new Mustang I probably would not lease one.

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CarMan@Edmunds · February 2005

Greetings prewitt1. In order for me to give you an idea of what this car's lease program should be like 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. I also can estimate a lease payment on it for you, but in order to do this I need you to tell me its full MSRP, including destination charges.

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CarMan@Edmunds · February 2005

I sure can, maxim49. If you were to lease a 2005 Nissan Murano SL AWD through Nissan Motor Acceptance Corp. right now for 42 months with 12,000 miles per year (I have not seen any residual values for 10k leases through NMAC), its base lease money factor and residual value should be .00133 and 57%, respectively.

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CarMan@Edmunds · February 2005

I was thinking the exact same thing, kyfdx. That's not too bad a payment for a top of the line Cooper S Convertible, especially since BMW is not providing any sort of lease support on it. Its money factor is currently .00255 for any length lease. Its 3 year, 12,000 miles per year residual value for this car is 63%.

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CarMan@Edmunds · February 2005

You're very welcome, lycanthris. I am glad that I was able to help you out. Enjoy your new car!

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CarMan@Edmunds · February 2005

Thanks chriscon. I believe that Philadelphia is in Toyota's Central Atlantic region. If you were to lease a 2005 Toyota Highlander V6 4WD (not the Limited model) through Toyota Financial Services in that region right now for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00116 and 63%, respectively for Tier 1 customers.

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CarMan@Edmunds · February 2005

You're welcome, nickmo. You're right, it seems as though this dealer was being pretty straightforward with you.

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bbrhs · February 2005

Did you come with any advice on this deal? We have never leased a vehicle before.

Thanks bbrhs

mattdal · February 2005

I should have stated that the term would include 15k miles.

CarMan@Edmunds · February 2005

You're welcome, couchman57. Let's work up a sample lease payment on the car that you are interested in and see what we come up with. According to my calculations, if you were to lease a 2005 Infiniti G35 Sedan AWD with an MSRP of $39,000 (the exact MSRP would be better than one that was rounded up) and a selling price of $36,000 through Infiniti Financial Services for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $473. If you were to lease this car with only 12,000 miles per year, its 36 month payment would be around $463. If you were to lease it for this term with only 10,000 miles per year, its payment should be around $453. I used a lease money factor of .00172 and residual values of 58%, 59%, and 60% to calculate these payments.

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CarMan@Edmunds · February 2005

You're welcome, couchman57. Let me know if you have any other questions.

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CarMan@Edmunds · February 2005

Yes, lmacmil, most manufacturers' lease money factors vary from model to model. In fact, they often even vary by trim level and length of lease. Having said this, since neither of the cars that you mentioned in your post, the Acura TL and TSX, have lease support available on them right now, their money factors would be the same. American Honda Finance Corp.'s current base standard lease money factor is .00220 for consumers who qualify for its top credit tier. AHFC's standard lease money factors were enhanced in mid-February from the .00235 that you saw mentioned earlier.

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CarMan@Edmunds · February 2005

No problem, coby03. You definitely have chosen a sweet car. Make sure to stop back and tell us how you like it when it finally arrives.

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CarMan@Edmunds · February 2005

Hi Sundar. It is difficult for anyone to tell what sort of lease-end penalty for excess wear and tear you may or may not have to pay on your car without actually seeing it. Each bank uses its own set of guidelines as to what it considers to be excess wear and tear. As far as the "blemishes" that you mentioned go, generally speaking if they are small enough to be hidden by a conventional credit card, you probably will not be charged for them. In order to find out the exact lease-end process for your car, you need to place a call directly to Volkswagen Credit, or whichever bank you are leasing it through, to find out its exact procedure. Most banks will send out an independent inspector to take a look at your leased vehicle before you return it. This individual will be able to tell you whether you will owe any money for excess wear.

You can't actually sell your leased vehicle without first purchasing it from the bank that you are leasing it through. 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. 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.

If you end up purchasing your leased Jetta, you will not have to pay any excess mileage or wear and tear penalties.

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CarMan@Edmunds · February 2005

Hi deca1980. It is difficult for us to comment on the deals that you were quoted without knowing their details. Specifically, you never mentioned the selling prices or MSRPs of the cars 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 car'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 cars that you are interested in for you if you let me know what these numbers are.

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CarMan@Edmunds · February 2005

You're welcome, carbert. You'll be about as close to a 0% interest lease as one can get.

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CarMan@Edmunds · February 2005

Hello mattdal. I do not personally keep tabs on manufacturers' balloon note programs, but I can tell you that GMAC's base SmartLease rate for the 2005 GMC Envoy XUV is 4.5%. Using this number, an MSRP of $40,745, and a selling price of $37,302, I estimate that this truck should have 4 year, 12,000 miles per, a zero down, pre-tax monthly payment of around $454.

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chriscon · February 2005

Thanks for the help. I was at the toyota dealership last night and this was the price quoted to me.

MSRP $30,500
Selling price $28,500
Trade-In $ 2,750

I was quoted $385/mnth inc tax,15k/yr milage. Am I crazy, or were they trying to get me for $100/month more than what the payment should be? Thanks for the advice, this forum is great.

abcguy007 · February 2005

Hi. I understand that the leasing company owns the car, and their name is on the title, but whos name is actually on the registration? Thanks

prewitt1 · February 2005

Sorry for incomplete info. Lease would be 48 mo. term, 12k miles/yr and MSRP looks like $29,918.
Thxs

maryv · February 2005

You are totally right. Thanks. It's not my money, but still I guess I shouldn't be stupid about it! Thanks for putting me straight.

cstowe · February 2005

No problem and GOOD LUCK!

maryv · February 2005

Thanks, Car_man: It is so awesome all the valuable info you share with the public. I have since lost interest in the Jetta because of the poor reputation for reliability and lack of engine power. But I'll be writing you when I find out what I might be interested in next. Another question: I'm totally unexcited about any vehicles on the market right now, but I have to lease something soon (current lease up mid March). I'm thinking of getting only a 24 month lease because I'm going to have to settle for something a bit on the boring and reliable side. What are the pros or cons to leasing for 24 mos. v. 36 mos. or longer? Thanks!
Anyone know when the New Jetta is coming out??

spektre · February 2005

Not sure if this is the right place to ask this...

I'm looking for a 'REALLY GOOD' lease deal on just about any car. As I just need a 24 month lease, I'm not TOO worried about reliability and maintenance. I'm very easy on my cars, and definititely won't be keeping this one. My requirements are:

- No money down
- Auto transmission
- A/C
- good gas mileage
- 15K miles year
- lease payment as low as possible

Seems a bit broad, I know, but I'm open to all-comers.

Thanks!

iwants2000 · February 2005

Hi Carman, I think my previous post got lost. I would appreciat if you can help me out. I have tier 1 credit.

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

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

I was told from the dealer that Honda 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 should I just stick with HFS? Are their rates seasonal (when are the slowest months for dealers?) or just a function of the current interes rate environment? I want to get the car now, but should I wait and hope the rates would go down? Thanks in advance!

funky1020 · February 2005

I am looking to lease a BMW, either the 5 series or the x3. I want no money down and atleast 12,000 miles. I want both cars to have auto transmissions, preminm packages and cold weather packages. What will be a good lease rate for 24 months and 36 months? I have never leased a car and the dealers are very deceptive in my area. Thanks.

carbert · February 2005

I've known Volvo to say, at the end of a lease, that the car hasn't held up its value as well as they expected, and offer a lower residual. They've done that on their own, so I imagine they might also be willing to negotiate if the customer initiates the discussion.

ronald15 · February 2005

To those interested in a good lease deal for 24 months. Check out the Nissan Altima. They have a special 24 month lease till the end of February. Residuals are 70 percent for 12,000 miles and the money factor is .00021 which is less than one half percent. Also, check out car man's post #17103

abcguy007 · February 2005

In case anyone was wondering:
Total Monthly Payment (TMP) =
Depreciation Fee (DF) + Finance Fee (FF)
DF = (net cap cost - residual)/term
FF = (net cap cost + residual)* money factor

so the enite lease tmp formula is:
tmp = [(net cap cost - residual)/term] +
[(net cap cost + residual)* money factor]
oh and the money factor is multiplied by 2400 if you want to see its equivalent APR. Everyone probably knows this already but just in case.

emjay · February 2005

Has anyone ever heard of Prolease out of the Houston area?
www.prolease.net is their website, they claim to represent several dealers and can get the guaranteed lowest lease price for any new vehicle?

lmacmil · February 2005

I've seen a couple comments suggesting that the dealer might give a new lease holder cash for his trade? Is that very common? I have been thinking of leasing but don't look forward to selling my car to a private party. I'd be willing to give up a few hundred bucks if the dealer would just take it off my hands.

guiseppe · February 2005

Just closed a lease deal in CT for a 2005 Toyota Highlander ltd MSRP $35,400...traded my 1999 Plymouth G. Voyager SE with 89,000 miles - a very hard negotiation process to get $4,000 for the van - used this trade only, with no additional money. Came away with a 36 month, 12k/year lease for $325/month, $20,400 residual. I feel this was a solid deal, any thoughts...

shaun132 · February 2005

What is the residual value and money factor for the RX330 FWD for 36 months with 12k/year?

thanks in advance

old · February 2005

Hi Car_man,
I'm headed to the dealer tomorrow to try and negotiate a Lease deal.
I'm looking into a 36 month, 15K miles/year, with no more than $1500 down on an 05' Nissan Maxima.
The MSRP is $33180 and the TMV less $1000 rebate is $29603 (according to Edmunds.com).
I want to try and negotiate a monthly payment of ~ $350/month.
I'm just wondering if this is possible or am I out of my mind here? If so, what type of monthly payment should I expect? I have perfect credit. Thanks for any help.
Old

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