Lease Questions - Ask Here

hsj1906 · August 2001

Car_Man, I wanted to get some info from you on the following 2001 models. Specifically, if its not too much trouble, I would like the residual values, money factors and estimated monthly payments on the following:

BMW 330ci $37k cap cost, 15k miles per year, 39 months.

Volvo S60 T5, $34k cap cost, 15k miles per year, 39 months

Audi A6, $34k cap cost, 15k miles per year, 39 months

Thanks. I am a regular board "lurker" and I enjoy reading all of your responses.

CarMan@Edmunds · August 2001

Hsj1906, I am glad to see that you enjoy this board. I can provide you with an idea of what the lease money factors and residual values should be like for the vehicles that you are interested in right now. However, in order to calculate some sample lease payments for you, I will need the full MSRPs of these cars as you want them equipped in addition to the cap costs.

I do not believe that BMW Financial Services is offering a 39 month lease on the 2001 330Ci right now. So here is the 36 month lease information for that car. Prior to September 4th, the base lease money factor should be .00250 and the 15,000 miles per year residual value should be 59%. The Volvo Car Finance 39 month base lease money factor and 15,000 miles per year residual value for the 2001 Volvo S60 T5 should be around .00084 and 49% respectively until the end of the month. The lease program for the Audi A6 will vary depending upon what exact model you want to get. Please let me know whether you want the A6 2.7T, A6 2.8L fwd, A6 2.8L quattro, or A6 4.2L. Once I have that Information I will be able to give you an idea of what the lease program should be like. Also, as soon as you give me the full MSRPs of these models as you want them equipped I can estimate some lease payments for you. Talk to you soon.

Car_Man
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hsj1906 · August 2001

Thanks for the information Car_Man. Here is the additional info. you requested to calculate monthly payments:

BMW 330ci $40,685 MSRP, $37,500 Cap, 36 months; 15k miles

Volvo S60 T5 $37,225 MSRP, $35,000 Cap, 39 months; 15k miles

Audi A6 2.8L fwd $39,125 MSRP, $37,000 Cap, 39 months; 15k miles

I hope this is everything. Thank you (in advance).

chaichai · August 2001

I have a 1998 Dodge leased through Chrysler financial (CF), and am interested in leasing a 2001 Jeep Grand Laredo. Currently, the promo is $2000 CF customer lease loyalty cash, plus $3000 in incentives for leasing a Jeep Grand. I am willing to put in $1300, plus roll over my security deposit to this new lease (same amount as before ~ $325).

Problem is that, I get a $40-$50 variance is mo. payments between the dealer (using CF) and the CF website (CF website is less). Dealer indicates that it just is not humanly possible, and tells me that I can't trust a website for things financial. (yeah, right) So, I called a different dealer, and get the same amount that the web is offering, but no Jeep, and can't get one before incentives run out (9/4).

Please help me understand what is so gooey.

MSRP $33,104
Sell Price $29,867 (not including incentives)
Incentives $5,000
Down Payment $1,350
terms 48mo/60K miles
NC tax 3%

Thanks for your help! Be Blessed!

topgun7 · August 2001

car_man, is there any rule of thumb regarding the difference between residual value of the same model of car or suv but different year? We got our Lexus SC430 last weekend (Blue/white and love it) and right now my wife is in the process of turning in her 01 RX300 (we are upside down now but because she used the RX for business, it is cheaper to turn it in (because of the tax benefit) rather than keeping it). We are debating whether it is better to get a 01 suv or 02 suv to replace the RX. Would the residual difference between 01 and 02 be generally in the 4-5% range? As an example, 01 Rx300 AWD with nav seem to have a residual value of about 45% now (for 4 yrs/15k per year). Should I expect the 02 RX300 AWD with nav to have a residual value of 49-50%? thanks.

max63 · August 2001

Sorry carman, i posted the incorrect term of the lease i wanted. I need the four year, money factor and res. (15k and 12k) on the c240 (2002). Also, I am now considering a 330i(2002), could i get those numbers to compare them with the c240. Also, what do you think of putting down multiple security deposits, it really seems like the way to go. Thanks for your help and imput.

gwarren · August 2001

Car_Man
As we approach month end, and new 2002's are arriving at the dealers and 2001's are being closed out. I will have to replace my current lease in one month or less. I am looking more aggressively at these two vehicles now. I know that there may be or probably will be changes in September.

1. Toyota Solara Convertible SLE model
2. Chrysler Sebring Convertible Limited.

The Particulars:
1. I am in South Florida, (but can buy in the NY area and have shipped down if it pays, as I will be in NY second week of September)
2. 12,000 miles per year, not 15,000
3. 36 Month Lease preferred,
39 months OK if that is where the deal is
4. 2002 Model preferred,
but will take a 2001 if there is either a better rebate, incentive, Money Factor, etc. that will cause the lease payments to be less
5. I like to put nothing down & just pay initial fees, 1st month, Bank Fee, License and tag.
6. Prefer Leases through the manufacturer.

Gary W.

CarMan@Edmunds · August 2001

Wow that was quick, hsj1906. OK, according to my calculations if you leased these cars with 15,000 miles per through their captive finance companies using their base lease money factors they would have zero down, pre-tax monthly lease payments of around $529 for the 2001 BMW 330Ci (36 mo.), $475 for the 2001 Volvo S60 T5 (39 mo.), and $532 for the 2001 A6 2.8L fwd (39 mo.).

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CarMan@Edmunds · August 2001

Hi chaichai. If you lease a 2001 Jeep Grand Cherokee in any part of the U.S. excluding the areas surrounding Boston, Cincinnati, Detroit, New York, Los Angeles, Philadelphia, Orlando, Syracuse, or Pittsburgh (where they have supported lease money factors) you would have to use Chrysler Financial's standard lease money factors. Using their standard factors, I come up with a 48 month, 60,000 miles lease payment of $356 on a 2001 Jeep Grand Cherokee Laredo 4WD with an MSRP of $33,104, a selling price of $29,867, $5,000 lease cash, and a $1,300 down payment. What are you and the dealers coming up with? If you live in one of the areas that has special lease money factors available in it, let me know and I will adjust my calculations accordingly.

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CarMan@Edmunds · August 2001

Topgun7, there really isn't one general rule that will allow you to figure out what the next model years' vehicles residual values will be like. The difference between a model's 2001 residuals and 2002 residuals will can vary significantly from manufacturer to manufacturer, from bank to bank, from brand to brand, and even from trim level to trim level. Other factors such as a major redesign will have an effect upon the difference between the two. I have never noticed a reliable pattern that would allow one to accurately figure out what the new models resids will be like. Still if I had to guess, I would say that the 2002 RX 300's residual values will probably be only 2% to 3% higher than those that are currently available on the 2001s.

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topgun7 · August 2001

Car_man, now I am busted. My wife is turning in her 01 RX tonight. I promised her that we can get a 02 rx with nav for about $540/mon if she choose to. I was counting on having a residual of 49-50%, money factor of 0.002 (with max deposit), and about $1000 over invoice . Now, I better try to convince her that I was a bad boy and should have an Accord instead (Heh! heh!). Thanks for all your help. I was lurking for the last 3-4 months and the information was very helpful for us to decide to go for the sc.

mannymoe · August 2001

Excellent site. This information is a tremendous help.
Here's my dilemma: My '99 9-3 lease expires in October. I will probably go with a RX300 or GS300. I may also look at the 5 series. Am I better trying to deal now while the 02's are on their way in and eat the extra 2 payments on the 9-3 ($690 total) or just wait it out since rates may head lower and with the economy looking worse, dealers may have added incentive to do something in 2 months? Also, is there any way to get an MDX closer to invoice than the markup most dealers are charging? Are they that in demand?
Finally, I saw the new X-type this evening. It is an extremely pretty car in this price range. Any idea what leases look like on them?
Thanks in advance, this board is awesome!

infinitimn · August 2001

Car_man, in message #1675 you said that the money factor on a Pathfinder LE lease is .0019. You also said that there is lease cash of $1,500.
Would these both be applicable at the same time or can you get only one of these?

mannymoe · August 2001

On the x-type, I am interested in a 36 mo. lease on the 2.5 with the X1, X3, and Nav options. Thanks in advance for any help you can offer.

arussell89 · August 2001

Carman,
I first wanted to thank you with the Honda Accord lease numbers that you helped me with approx. 4 months ago. We leased my wife a 2001 Accord, V6 EX for essentially invoice... 36 mo. 15k miles for $319 plus tax with nothing down. It took at least 5 trips to the dealer but I really wore him down!!!
2nd issue is concerning leases of 2002 Corvette Coupe with 1SA package (MSRP $41400 incl. dest.) Corvette sales are essentially dead according to Corvette forum and dealers are offering up to $3500 off of 2002 coupes. Can you help me with any lease numbers for a 36mo. 15k miles with only fees down. Thanks

bstreet · August 2001

I wonder if I could ask for some advice from everybody on the board...
I went to Toyota today to look into a 2001 SR5 2WD 4Runner. I want the base model that has the value package #1, cargo mat, and security system ($27,993 MSRP, $24,835 Invoice).
1. First off, I have a 98 Rodeo that I am leasing. My lease is up in May (02), but I want to turn it in early. I have been told that essentially I just will have to pay it off, which I hate doing, but i've had a bad experience with this car (LEMON). Anyway, the salesman I talked to told me that Toyota would buy it out and eat the remainder of the payments WITHOUT rolling the payments into a new car as long as I lease. He said if I buy, I will have to pay it, but if I lease, I won't. Is he right? I questioned him over and over, and he stuck with his story. Does anyone know if he's telling me the truth? Is what he is suggesting even a possibility? He told me they'd done it with someone who had 8 months remaining just last week?
2. I had a hard time nailing down a number from the salesman on purchase price of the 4Runner (cap cost). What is fair to assume that I should shoot for? Invoice? $200 over invoice? $500 over? What's fair???

Sorry for the long post, but I am not good with leasing and am scared of being taken. What i'm looking for is the model I stated, 36 months, 15K miles (residual 57%, mf .0033). I live in Florida. As far as I am aware, there are no incentives. Anyone? Thank you so much, as always.
becky

CarMan@Edmunds · August 2001

Hi mannymoe. It often turns out that it is cheaper to wait until the next model year's version of the car or truck that you are interested in is introduced to lease one because the new model will have higher residual values. However, that may not actually be the case with three of the vehicles that you mentioned. Lexus currently has supported lease money factors on most of its 2001 models that may actually cancel out the residual value advantage that the 2002 models will have. Furthermore, BMW recently enhanced its lease program on 2001 5-Series models that almost certainly makes leasing a 2001 better than waiting for a 2002 model. As far as the Acura MDX goes, they have sold very well ever since their introduction. Even though dealers may have managed to deliver this truck to most of the consumers that they had on their waiting lists already, don't expect to be able to negotiate much of a discount, if any, on the MDX at this time. You are going to be in the same boat with the new Jaguar X-Type. Dealers are basically selling every one of these cars that they can get their hands on right now for full MSRP. I haven't seen what the lease program is like on the new X-Type yet, but I doubt that Jaguar is providing any sort of lease support on it at this point so it won't be anything special.

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CarMan@Edmunds · August 2001

Don't worry about it Max. I would be happy to provide you with the new information that you're looking for. If you were to lease a new 2002 C240 through Mercedes-Benz Credit Corp. right now for four years, their base lease money factor for consumers who qualify for their top credit tier is .00329. The corresponding four year residual values for this car are a solid 57% for leases with 15,000 miles per year and 59% for leases with 12,000 miles per year. I have not seen the lease program for the 2002 3-Series yet, but suspect that I will see the factors and residuals for the 2002s when their September lease program is introduced next week. If you would like me to provide you with the lease program for the 2001 BMW 330i right now, please let me know.

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CarMan@Edmunds · August 2001

Gary, I am not aware of any special lease money factors on either of these cars right now. So if you would like to lease either of them through their captive finance companies, you would have to use their standard lease money factors. Furthermore, any incentives that are available on the Toyota Solara are not available on Convertible versions of the car, just the coupes. So if you go with the Solara Convertible you will not only have to use the standard lease program, but you will not be eligible for any cash incentives either. Fortunately, DaimlerChrysler just introduced $1,000 Lease Cash on the 2002 Sebring a few days ago. I believe that this cash may be used on the Convertible version of this car. In addition to the $1,000 Lease Cash, DaimlerChrysler is providing $1,0000 Owner Loyalty Cash on the 2002 Sebring Convertible.

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CarMan@Edmunds · August 2001

Infinitimn, the special lease money factors that are available on the 2001 Nissan Pathfinder will vary depending upon the trim level that you are interested in and the length of the lease that you choose. The $1,500 Lease Cash that is available the 2001 Pathfinder may be used in conjunction with the Nissan Motor Acceptance Corp. lease program.

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CarMan@Edmunds · August 2001

Hi again, arussell89. I am glad to see that everything went so well with your Accord Lease. When Honda was running their special lease program on the Accord, it was an amazing deal. It's hard to beat an attractive, reliable, loaded V6 car for only $319 per month! Chevrolet has not provided any sort of special lease rates on the Corvette for years. So if you choose to lease one through General Motors Acceptance Corp. right now, you will have to use their standard lease rates. The last that I heard, GMAC's lowest base lease rate for consumers with outstanding credit who lease through a dealership that does a tremendous amount of volume with GMAC was around 6.85%. Their rates go up from there. In fact, I would not be surprised if you were able to get a lower lease payment on this car by going through a bank other than GMAC.

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CarMan@Edmunds · August 2001

Becky, I doubt that Toyota Financial Services is running a program that would allow you to break your current Rodeo lease nine months early without owing a dime. The reason why the salesperson who you spoke with told you that you could only get out of your Rodeo if you leased a new Toyota is that he/she probably planned on burying your negative equity in your new lease. Either than or they planned on selling you the 4Runner for a much higher price than they normally would if you were not in a situation where you wanted to break an existing lease contract. Without any negative equity, you should not have any trouble purchasing a 2001 4Runner for a couple of hundred dollars over invoice ($400 to $500 perhaps). Keep in mind though that many regions have consumer cash of around $1,500 available on this truck that should enable you to purchase one for below invoice without much difficulty.

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bstreet · August 2001

Carman,
Thank you, once again, for helping me out. I did not think that what the salesman was suggesting was possible, and thank you for the reassurance. I REALLY hate this process of trying to lease/purchase a vehicle. I'm better armed thanks to you, though!
becky

gwarren · August 2001

Car_Man,
Thanks again for the info, and of course you were right on target. Here are the facts I obtained today.
1. on the Solara Convertible, not too many available and no support or rebates, etc. So the dealers that may happen to have one or two, are not really willing to deal. As a matter of fact they added a Separate sticker listed as "Market Availability" + $6,000. Of course they were willing to eliminate if I buy today and sell to me at MSRP.

2. On the Sebring Limited Convertibles one of the local dealers has inventory on both the 2001 and 2002. As they only have white left on the 2001 they are willing to really go under invoice by over $2000 (Chrysler Incentives) to sell today. But only on the one color they have lots of left

If I want a 2002 they did tell me that there currently (new programs) is a $1000 Loyalty and the $1000 Lease rebate. But they were not willing to take much more off of the MSRP. So the Lease was very high on a 2002. Told me Chrysler is not supporting leasing other than the $1000 rebate, and that a Chrysler lease was at least $70 a month higher than using other sources, such as a credit union. Also all Lease programs are 48 months, which is longer than I want to own any Chrysler vehicle.

So unless I can convince myself that I can be happy with the White exterior, with cream and blue interior, and Blue top, which I think I can get a great deal on. I will wait a couple of weeks to see if they will start to get more flexible on the 2002.

Any way to get info on Residual and Money Factors on the 2002?

im_brentwood · August 2001

I agree. My guess is that your lease payoff exceeds your vehicle's trade-in value... Sounds like they were doing some sort of numbers game methinks.

That money factor also seems a touch high... SE Toyota finance's rates onthe 4runners are below that If I remember right... Have you obtained your beacon score?

You mentioned Florida.. if you're in Orlando, you may want to try Kissimmee Toyota, they seem to be pretty straight-sell from what I hear and avoid the guys out by the fairgrounds...

Bill

moorejwm · August 2001

CarMan,

Thanks for the info on the Suburban and Expedition. Do you have the latest information
on the Excursion, rebates, residual, lease rate.

Thank you,

CarMan@Edmunds · August 2001

No problem, Gary. I am glad to see that the Chrysler dealer that you went to was at least very straightforward with you. Although most dealers are a lot more willing to be honest with you when they see that you know what you are talking about. As we have been saying, other than the Lease Cash, DaimlerChrysler is not providing any sort of lease support on the 2002 Sebring right now. So if you choose to lease one through Chrysler Financial you would have to use their standard lease money factor, which I believe is currently .00335. The corresponding 3 year 12,000 miles per residual values for the 2002 Sebring Convertible are 46% for the Limited & LX and 47% for the LXi.

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CarMan@Edmunds · August 2001

You're welcome, moorejwm. Ford is currently running different lease programs on the 2001 Excursion in different parts of the country. I remember in an earlier post that you stated you are in the midwestwern U.S. In that area the 36 month Ford Motor Credit lease rate for the 2001 Excursion is probably around 8.0%. As far as this truck's residual values go, the 3 year 15,000 miles per resid for a 2001 Excursion Limited should currently be 45% and for the XLT should be 44%. Even though the lease rate on this truck isn't that great, there is $2,500 Lease Cash on it in most areas that can be used to reduce its capitalized cost.

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moorejwm · August 2001

For anyone's interest.

We have reached a deal on a 3yr 45K lease of
an 2001 Expedition. (519+/mo)
List was 37000, XLT 4x4, 5.4L, comfort, tow, LSD
Selling price 32461 (X plan)
330 to extend 3yr warranty with rental to full 45K
total 32761.
Residual 43% (15910)
Rate 5.5%
2000 rebate
500 lease to lease
500 (dealer cash?)
3000 total cap reduction
out of pocket
180 mich tax on cap reduction
19 transfer fee
519 first payment
total out of pocket 718
less 450 security deposit from prior lease
cash paid 268
35 monthly payments of 519.

previous lease was only 425/mo
but then the residual on a new 1999
was ~65% at that time.
buyout was a ridiculous 23K

hsj1906 · August 2001

Thanks for the info. Carman. I am becoming addicted to the continuing discussion on this board and I am learning an awful lot!

I know that I asked you in a previous post about the BMW 330ci. Now, I would like the following information on the BMW 330i (sedan) if you have it:

a) residual value and money factor on a 36 month lease for the 2001 330i;

b) residual value and money factor on a 48 month lease for the 2001 330i.

Also, do you think it makes sense to lease a used car (e.g., is it basically the same from a financial standpoint as leasing a new car)?

Thanks Carman. I appreciate all you have done for me!

CarMan@Edmunds · August 2001

Thanks for coming back to share the details of your new lease, moorejwm. There's nothing better than real-world examples that one can look at when they are in the market for a new vehicle. Enjoy your new truck!

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CarMan@Edmunds · August 2001

Hsj1906, I am glad that you enjoy visiting this thread so much. The 330i actually has the most attractive lease money factors out of all of the 3-Series models right now. If you choose to lease a 2001 330i through BMW Financial Services for 3 years with 15,000 miles per prior to September 4th, the base lease money factor and residual value should be .00210 and 59% respectively. The special .00210 factor should be available all the way out to leases of 42 months in length, but if you opt for a 48 month lease on this car I believe that the factor jumps to .00365 (with a 46% residual value). Used vehicle leasing is sort of hit and miss. Some manufacturers do provide a little bit of support on certified used vehicle leases of certain models from time to time. However, in general used vehicle leases don't nearly receive the amount of manufacturer support that new vehicle leases do and in my opinion aren't usually a good option because they are frequently more expensive than I think they should be. Again, it is difficult to generalize about any topic as large as used vehicle leasing, but in general I personally believe that new vehicle leases are by far the better option in most instances.

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hsj1906 · August 2001

Thanks for the prompt response Carman.

If I take the 330i lease out to 39 months, what is the residual value? How about the residual value for 42 months?

Again, I am interested in getting 15k miles per year.

gwarren · August 2001

Car_Man
I would say only one more question, but I think that would be unrealistic. I am sure to have several more before I complete a deal. I went to the "Chrysler" web site today to get the particulars on the 2002 Limited, as neither this or any other site has any info yet.
After building my vehicle on the Chrysler site I was given the option to figure payments. It utilized the Gold Key Lease which was very high, figured as we did with the ridiculous M. F. and Residual.
It also gave figures for a "GOLD KEY PLUS", which used the 36 month term and MSRP. as selling price. It had no other costs other than amount financed as $29,640 (the full MSRP.). Instead of a residual value it showed a "Fixed Value Payment" of $13,634.40? A coincidence that this is amount represents 46% of the MSRP. which you gave me as the 36 month residual, I don't think so.

I called the dealer to ask about the "Gold Key Plus" Lease as it seems to fit my needs and was $150.00 a month less than the Gold Key Lease. I got the brush off as he told me that he did not know what it is and is not offered in this area. I find that strange as prior to giving me this info I was required to enter my Zip Code?

Can you enlighten me, is this a new type of program, and if so is it worth considering?

GARY

bstreet · August 2001

Hi guys. Thanks again for the info on the leasing and my current contract. I called the current leasing co today (GE Capital) to discuss my lease-end payment. Not a week ago, they told me i could pay the remaining payments and end the lease early, but today they tell me that is not possible, and my only option is to buy the car myself, have someone else buy it out, or have the dealer buy it. ????? Does anyone have a suggestion of what i can do now? I know that I could get the dealer to buy it and pay the difference between what they pay and what they sell it for, but i'm not really keen on that option (although the Dodge dealership i am dealing with is very fair and i know they would not take me). IS there any option, or am i stuck with this car? Thanks as always.

iggythecat · August 2001

Does it ever make sense to buy a car after a lease rather than turn it in and buy/lease something new? I've got a 99 Accord coupe EX V6 with the lease ending in Feb '02, and wouldn't mind keeping it (good condition, 36k miles at end of lease), but don't know if it is financially the wisest decision to pay for it for 6 1/2 years (3 yr lease + 3 1/2 years of financing). Would I be better off to buy a new car instead (financing for 5 years)? If I bought new, it would be an Accord sedan, lower trim level, either an LX with some options or an SE, to keep the price between 21-22K. Leasing another car is not an option due to mileage constraints.

s852 · August 2001

0 cap reduction, 36 months, 15K miles per year. What should the drive off costs and payments be based on VWs current lease program?

CarMan@Edmunds · August 2001

You're welcome, hsj1906. To the best of my knowledge, BMW did not issue 39 month residual values for its vehicles during the month of August. You may be able to modify the 36 month term to lease one for 39 months, but I am not certain that this can be done. The 42 month 15,000 miles per year residual value for a 2001 330i leased through BMW Financial Services should currently be 54%. Keep in mind though that this program is only scheduled to run through September 4th.

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CarMan@Edmunds · August 2001

Gary, the Chrysler Financial Gold Key Plus program is nothing more than a balloon note. I don't know how familiar you are with balloon notes, but they are very similar to leases. Actually, balloon note contracts are really not very popular. This may be why the salesperson who you spoke with claimed that they had no idea what you are talking about. Balloon notes seem to be used most frequently in a few small parts of the country that have strange tax laws that make them more affordible than normal leases. I don't see why the balloon note payment for the car that you are interested in would be much different than a normal lease payment for it. It certainly should not be $150 per month less than a lease, especially given the fact that balloon notes and leases usually use the exact same residual values to calculate their payments.

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acont99 · August 2001

Hi,
I was wondering if anyone has any thoughts about my current leasing. I started a lease with GMAC in 07/2000 for the SUV mentioned above with $359/month no downpayment.
Now I would really like to change to something else. Actually I was quite interested in a 2001 Oldsmobile Aurora 4.0. Something my dealership currently is offering for a sticker price of $26,400. My dealer now says he can do something about it but doesn't give me any details. My payoff for my Jimmy is currently around $ 23,000.
Thanks.

s852 · August 2001

Zero cap, 24 months, 15K miles per year. What should payments and drive off be for this car with Honda's lease program?

hsj1906 · August 2001

Carman, I know I am dipping in the proverbial well a little too often; however I was wondering if you can give me the residual value and money factor on the 2002 Lexus IS300 and the 2001 ES300 (each for 36 months and for 15k miles per year).

Thanks (in advance)

gwarren · August 2001

Car_Man,

Of Course you are right again, the sales person did contact me and said it is a balloon, and thought that I had to pay the residual amount at the end of the lease. I went back to the Chrysler web site and did get all of the info. It is really just like like a lease, only one extra option at the end of the term, they allow you to refinance the "Fixed Value Payment" which is the same as residual.
(but you do not have to purchase)

I also realized why it came out to $150.00 less,
"THEY DID NOT INCLUDE AN INTEREST RATE IN THE CALCULATION". That is left open and up to us, so once I put in 6-8% the rates were closer to the Gold Key Lease, but still a little less. So I don't know why this is not offered?

I will have to wait for Chrysler to get more reasonable and help out on this. I do have the month of September and hopefully they will lower the Money Factor. Thanks again

Gary

chris1506 · August 2001

Car Man:

I have seen posts on another consumer advocate website that indicates leasing used vehicles is the fast growing segment of automobile financing.

I find this hard to believe. I know leasing is not for everyone. Likewise, it can be good for some folks.

However, I would say 9 out of 10 posts on this other website about leasing is from folks one year into the lease wanting to know how to get out of it.

I don't know what the percentage is, but I would guess 80% of folks that lease don't have a clue about what they signed.

I would sure like for someone to explain how leasing a used vehicle makes any sense.

Can this really be the fastest growing segment of automobile financing?

Any thoughts?

Thanks.

Chris

CarMan@Edmunds · August 2001

Iggy, if you enjoy driving your Accord and haven't had any major problems with it then I definitely don't see anything wrong with purchasing it at lease-end. Hondas are very reliable vehicles and should last six and a half years without much difficulty if they are properly maintained. Whether you purchase your current car at lease-end or finance a new one really boils down to whether you want to drive a brand new vehicle. A good compromise in this situation might be to purchase your Accord at the end of your lease term and continue driving it until the redesigned Honda Accord is introduced for the 2003 model year, when they are expected to increase the V6 engine to 3.2L. By waiting you would be able to save enough money to purchase the higher trim level that you have become accustomed to.

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CarMan@Edmunds · August 2001

Hi s852. According to my calculations, if you were to lease a 2002 Passat GLX Sedan with an MSRP of $30,375 and a capitalized cost of $28,800 (the cap cost will vary depending upon what sort of deal you are able to negotiate) through VW Credit for 3 years with 15,000 miles per prior to September 4th you should be able to do so for a zero down, pre-tax monthly payment of around $444.

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CarMan@Edmunds · August 2001

Hello acont99. I am sorry to say that with slightly less than two years remaining on your current lease, it is probably going to be relatively expensive for you to break your contract to get into a new car or truck. In order to get you out of your current vehicle, the dealership that you are working with is going to have to buy out your lease. You are most likely upside down on your current truck, i.e. it will cost more for the dealership to buy it out than it is worth on the open market, and the dealership that buys it will likely roll its negative equity into your next transaction.

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CarMan@Edmunds · August 2001

Hi again s852. According to my calculations, if you were to lease a 2001 Accord EX V6 Coupe with an MSRP of $25,540 and a capitalized cost of $23,090 (the Edmunds.com True Market Value for this model) through American Honda Finance Corp. for two years with 15,000 miles per prior to September 4th, you should be able to get a zero down, pre-tax monthly lease payment of around $433.

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CarMan@Edmunds · August 2001

Don't worry about asking too many questions, hsj1906. I am always glad to help out. So you are interested in leasing a 2002 Lexus IS 300 or a 2001 ES 300. If you were to lease these cars through Lexus Financial Services for three years with 15,000 miles per prior to the end of the month the money factors and residual values should be as follows: 2002 IS 300, .00300 / 55%; 2001 ES 300 .00165 / 49% (the resid increases to 52% for models equipped with the Value Package).

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CarMan@Edmunds · August 2001

Chris, the only reason that I can see why used vehicle leasing would be the fastest growing segment in the world of automotive financing is that new vehicle leasing and financing are already mature markets. What I mean is that millions and millions of people already lease and finance new vehicles, so there really isn't much room for growth in that area because everyone already does it. Used vehicle leasing has become a little more popular over the past year or two as manufacturers have begun to promote their certified used vehicle programs. Many manufacturers provide a little lease support on certain certified used vehicle models in order to help sell them. However, support from manufacturers on used vehicle leases is certainly still the exception rather than the rule. This is why I personally think that leasing a used vehicle is usually not the best option for consumers. Of course, this is a very broad topic to generalize about and there are some reasonable used vehicle leases but overall I feel that new vehicle leasing is better. In fact, it often turns out that manufacturers' support on new models makes it less expensive for consumers who are at the end of a new vehicle lease to lease an equivalent brand new model than to re-lease their current car or truck as a used vehicle! Plus consumers who lease new vehicles have the advantage of being covered by a bumper-to-bumper warranty. Used vehicles' warranties have usually expired, so if the lessee has any sort of problems with it they will have to pay to fix them out of their own pockets prior to lease-end of face a penalty for excess wear and tear.

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