It should not matter what is on the contract. The warranty is on the car and starts with the in-service date - the date the car is reported sold. As long as your car is NEW then you will have the full warranty.
One trick you can do - go to www.carfax.com and put in your VIN. It should ID what the year, make, and model of the car is and report there are 0 records on it. This is an indicator that it is has never been titled before. You can also call the customer service department of the company that makes your car and give them the VIN - they can confirm either the in-service date (if it has been turned in) or tell you it has not yet been turned in.
The only "bad" reason I can see for a dealer checking the used box is to get you to pay a used car money factor on the lease.
The same dealer that checked the used car box on the contract? Sounds like they don't do too many lease deals.
I would say no. You have a bill of sale and a contract and it does not include this fee then that is too bad. Maybe another honest mistake, but maybe another way to get folks to sign then hit them with the fee. The acquisition fee is due, but it is not listed on the itemized list of what was due at signing and you wrote a check for that amount, then they should pay it for you.
Now, you also have to count on them to do the registration, etc so I guess they could get nasty if you don't pay.
This is my first time returning a lease car. The question and concern I have may sounds silly. But I am looking forwards for any advise and comments.
I have a Audi 2002 A6 that will return to the dealer in Sept. The hood has some chipped paint due to freeway drive and the both front tires are 75% used. 1 yr ago, I got into an accident with this car. Everything were fixed with Audi parts and the car is running fine since then.
When I first start the lease, I paid all of the statement in advance. Now my new car will be arrived in mid May.
Also, I am pretty use up all the mileage under the contract.
Here is my concern:
1) If I return the car in Sept, should I fix the chipped paints and the replace the front tires?
2) Since the rear tires still have 50% rubbers left, do I need to replace them as well?
3) Will the dealer or leasing company will charge me for the accident I had, although everything is fixed to original condition?
4) Is it better off for me to return the car before Sept and not repair/replace anything?
Hi - I have a 2003 Forester with its lease up in July. It has 56,000 miles (20K over!). The sale price at the end of the lease is $11,300. What is my best negotiation strategy for this situation? Thanks, April
Dennis, thanks for your reply. Okay, so here's the real deal. According to the dealer, my contract was supposed to be for 12,000 miles/year. The dealer made another mistake and gave me 15,000 miles/year instead of 12,000 miles/year. He now wants me to sign another contract that will change the contract to 12,000 miles/year, a higher residual, add on the $550 acq fee and change the warranty to NEW. To ensure my payments will stay the same (they were even reduced by about 25 cents) I'll have a reduced money factor.
My concern was that if I didn't sign I would not have a new car warranty and they would then demand that I pay them the acq fee. You' ve answered those questions already. So does it make sense for me to sign the new contract?
By the way, I entered the VIN# on Car Fax, and there is 1 record. But keep in mind, I have my license plate already - and they have already paid off my trade-in. We bought the car a month ago. I might add that I gave them the wrong payoff amount on my car, and they owe me a refund.
You should be OK. They expect SOME normal wear and tear on the car - it is no longer new. I think most lease banks would require something more than 3/32 or so of tread of they charge you for the tire, so it sounds like you are OK there as well. The idea is to get a pre lease turn in inspection. This is where they go over the car to see if everything is OK. They will note the size and number of dings, dents, scratches, condition of tires, etc and how much (if anything) it would cost to fix. Then you have the option of fixing the items they list yourself before the actual turn in or just turn in the car and pay.
If you lease bank does not do pre turn in inspections, maybe your dealer could look it over anyway. I know BMWFS sends you a self evaluation kit so you do the inspection yourself. It includes a plastic tool to measure the dings and stuff.
There is no need to fix stuff you don't have to, but there is also no need to pay a high price for something you could easily fix. That is where the inspection comes in.
Negotiating a 36-month lease on a 2005 X3 3.0i - metallic paint, premium pkg., xenon, sat. radio prep., privacy glass. MSRP $40,495 (incl. dest.), I offered $38,200. Dealer lease quote: 61% residual, $625 assignment fee, $389.50 dealer admin. and $68.50 tire/rent/batt. Instead of money factor, dealer has SR and BR of 0.1350%. Have no idea what SR and BR are. Also, there's no acquisition fee. Will only owe first month payment on delivery and there is no trade in. Is this a good deal?
If it has been a month, the 1 record on CarFax is probably you.
Did the lease fund? In other words, did the bank pay the dealer for the car? You will know because you should have to make a 2nd payment by now. Have you gotten a bill for the 2nd month yet? If not, then it is likely that the lease did not yet fund and the dealer does not have the money for the car. You could try calling the lease bank and see if they have your account. If so, get the account number and payment address so you can get your 2nd payment in before it is late. If the lease never funded, then that is a different deal.
How much to they owe you? I would have thought if they over paid the lease bank the refund would go to you. What must have happened is you told them $11k and they checked before they paid and found out $10.5k and paid that much. Since $11k was worked into the deal they "owe" you the money. I guess what you do depends on how much they owe you. If it is $50 or something VS the $550 fee then if you can get out of the fee then let them have the $50.
You have a new car with a new car warranty, sounds like to me. So I would not worry about the check box on the contract.
I don't understand when you say you will get a lower MF to make the payment the same. Either they put down 15k but used the 12k residual or they put down 15k and used the 15k residual. If they did the former, then your payment is right and "in theory" you have free miles. If the did the latter, then your old payment would be too high and just putting the proper numbers down on the new contract would net you a lower payment. In this case the monthly savings might make it work out in your favor or wash out the $550. Or are you saying they are lowering the MF so your payment is the same and you do not pay the $550 fee?
You could:
1) Get a lawyer's advice about what to do
2) Tell them to un-wind the deal. Give you back your old car, give them back the new one, and find a better dealer that knows how to fill out the paperwork. The miles and wear and tear on the new car is on the dealer. There is normally a form you sign that says if the finance does not go through then the deal is off. Some (crooked) dealers have a clause that says if that happens YOU owe them for each mile and day you put on or had the car. In this case, the un-wind can get expensive. But for most deals, there is no penalty to un-do the deal.
3) Tell them you want the contract as is and to get your lease funded. If the lease is already funded you could just make the payments and tell them to forget about it.
4) Tell them you will sign the new contract, but they will have to pay the acq fee out of their end. Optionally tell them you want it dated the date you sign the new one and have them include the current miles on the car as the starting miles for the lease. This will give you the first month and miles "free" for them having messed up so bad.
5) Be a trusting soul and just sign the new contact. I would have someone who knows leasing go over the original and this new one to make sure they are not messing you up somehow.
I don't know all the details, but this dealer is either really dumb or shady. I know folks make mistakes all the time, but they hosed the miles and hosed the acq fee and didn't check the payoff before doing the contract and didn't catch this for a month. If it were me, I would try to give them back the new car and go some place else. You didn't give us any details, but they may have ripped you off with a bad deal, inflated money factor, and poor value on your trade.
"Strategy" ? Start saving for the over mile charges?
You have two options return the car and pay, or buy the car at the end of the lease (or now). $0.15 is a normal over mile charge and 20k would be $3,000 - plus the mile you put on between now and then. So you should save quick.
If you check the true market value retail and trade on the car with the high mile (here and Edmunds, for example) and compare that to the $11,300 buy out. If the car is worth more trade or retail than the buy out, then you could buy it out and sell it - or have a dealer buy it out. To avoid sales tax if you sell, you would have to go through a dealer and pay them to do the paperwork. If the current value of the car is close to the buy out, call and get a current buy out and see about trading it in now. If the buy out is more than trade, you can either pay that out of pocket or roll it into the new car (not a good idea, but.....). Be sure to get an itemized buy out since they may include sales tax in the number they give you. If you go through or sell to a dealer you would not pay tax.
Trying to lease base Infiniti M35 with satellite radio. 39 months/12K. Which line on the lease is the "true cost" or price of the vehicle?? Thanks in advance.
Brother is interested in 36/48 month lease at 10 or 12k miles a year. Can you tell me current MF and residuals for the leftover MKIV Jettas? I hear the low money factors are gone. Also, what is a fair price to offer below sticker now that the MKV is out?
I'm looking to lease a new vehicle - not sure what exactly yet, but probably a minivan of some kind. I have a 99 Audi A4 that I want to trade in that still has a KBB value of around 9000, but it has to go (Audis start to fall apart big time after 6 years on the road and I would feel guilty privately trading it for just that reason). How can I avoid the big downpayment trap where I lose my 9K (the trade in value on the Audi) if I total the lease car or it is stolen - I've read about balloon note finance in NY state, but are these programs available elsewhere, and would that be one way to finance it. Alternatively, could I get the dealer to give me cash for the Audi, but I only use a small portion for downpayment, and use the rest toward future payments? Advice much appreciated. steve :confuse: :confuse:
Hi jdg345. Some banks allow the transfer of leases to another individual while others do not. The exact policy on this matter varies from bank to bank. You need to contact the bank that you are leasing your car or truck through to find out whether they allow this sort of transaction and if so how to do it. One of the main problems with transferring leases is being able to find someone who wants to take over your deal. Savvy shoppers are often able to lease similar, brand new vehicles for the same money as, or even less than the ones that many consumers try to get out of. As a result, many people find that if they want to convince anyone to take over their lease they have to subsidize their deal out of their own pocket.
Hello smith83. Here is the information that you are looking for. If you were to lease a 2005 Lexus RX 330 FWD w/navigation but without the rear entertainment system through Lexus financial Services right now for 36 months with 15,000 miles per year, its base lease money factor and residual value should be .00146 and 53%, respectively. Using these numbers, an MSRP of $46,503, and a selling price of $42,346, I estimate that this truck has a zero down, pre-tax monthly payment of around $590.
If you were to lease a 2005 Acura MDX Touring AWD w/DVD through American Honda Finance Corp. right now for 36 months with 15,000 miles per year, its base lease money factor and residual value should be .00196 and 58%, respectively. Using these numbers, an MSRP of $41,795, and a selling price of $39,398, I estimate that this truck should have a zero down, pre-tax monthly payment of around $546.
Miamimike1, the lease payment that Honda is advertising on the Accord that you are interested in is probably based upon a higher selling price than they one that you gave me to calculate the sample lease payment for you. The higher a vehicle's selling price is, the higher its lease payment will be.
Hi Karl. It looks to me as though the lease money factor that you were quoted is a little high. Nissan Motor Acceptance Corp.'s current base lease money factor and residual value for a 36 month, 15,000 miles per year lease of a 2005 Nissan Frontier XE King Cab 2WD are .00189 and 58%, respectively. You need to pay a security deposit and qualify for NMAC's top couple of credit tiers to qualify for this program. Using these numbers, an MSRP of $18,240 and a selling price of $17,427, I estimate that this truck should have a zero down, pre-tax monthly payment of around $244. A selling price of $300 over invoice is good, but something about the payment that you were quoted doesn't add up.
Hi jvigil88. The down payment that you were quoted on the first deal is too high for my taste. 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 your Pilot would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all.
I will down up zero down lease payments on both of these trucks for you using Honda's base lease program so that you can compare them to the ones that you were quoted. According to my calculations, if you were to lease a 2005 Honda Pilot EX without navigation or rear entertainment with an MSRP of $30,635 and a selling price of $28,100 through American Honda Finance Corp. right now for 3 years with 12,000 miles per, your zero down, pre-tax monthly payment should be around $318. A down payment of $2,500 would reduce this payment to around $245.
If you were to lease a 2005 Honda Pilot EX-L without navigation or rear entertainment with an MSRP of $32,635 and a selling price of $29,980 through AHFC right now for 36 months with 12,000 miles per, your zero down, pre-tax monthly payment should be around $366.
Greetings garuch. You never mentioned the selling price or MSRP of the car 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 car that you are interested in for you if you let me know what these numbers are.
No problem, Gary. I am not sure if Audi has some sort of contract that you have to sign to lock in a lease program on your car, but the dealer that you are working with really does not have any incentive to keep you from locking in the current lease program. If the program on this car gets worse and you're not locked in, they risk losing your sale.
Aloha cwbrow2. Most banks have switched from using dealers to inspect vehicles at lease-end to using independent inspection companies. Ford Credit may still use dealer employees though. Either way, captive finance companies' lease-end inspections are usually pretty fair when evaluating the condition of vehicles at lease-end. The last think an automaker wants to do is leave a bad taste in a potential future customer's mouth by nickel and diming them to death at the end of a lease. I'm not saying that you won't get charged if your car is damaged, just that they normally are fair. For more information on Ford Credit's specific lease-end process, check out the following site: Ford Credit - Lease End Process.
Hey seden. Why are you leasing the vehicle that you are interested in through an independent company? More often than not, consumers are able to negotiate better deals on their new vehicles all by themselves. What model are you interested in leasing?
Hey jetfan. All of the cars that you mentioned are nice. If one takes the dealer cash incentives that are available on them into account, I would say that of the vehicles that you mentioned you probably will be able to get the best deal on the 2005 BMW 3-Series AWD and 2005 Mercedes-Benz C240 4-Matic right now. The reason why the dealer that you are working with on the Mercedes-Benz wants you to lease for 39 months instead of for 36 months is that Mercedes-Benz Credit has a special program that allows the use of its 36 month lease program for 39 month terms, providing a lower lease payment than a 36 month lease would. Leasing with 10,000 miles per year instead of 12,000 will also lower your car's lease payment, but it is not a good idea to go with the 10K lease if you think that you will drive more than that.
Negotiating by phone & email. 05 MDX Touring. MSRP $40,295.. 36 mos lease of $470 out the door.. Total of $650 down includes 1st month payment & fees. Was able to buy at $36,500, MSRP $40,295, 12k miles per year. Please verify I am there, or is there still room.
The salesperson's offer to negotiate a deal based upon the 2005 model's price and then adjust accordingly for the more expensive 2006 model sounds reasonable to me as well. You are absolutely right, you really will not be able to negotiate the terms of your lease until you know what Mercedes-Benz Credit's program is like on it in September. As one would expect with a model that is currently not available, MBC does not currently have a lease program for this car. It is very very unlikely that the lease and cash support that are currently available on the C240 will be available on the 2005 C240 right now will be available on the 2006 C280 when it first arrives. This car's residual value will probably be based upon its full MSRP here in the U.S. Different banks have different rules as to how they work leasing vehicles that were purchased through European Delivery programs. Some banks charge a slightly higher lease money factor on vehicles leased through this program, but then waive the first month or two's lease payment so that you are not paying for a vehicle that is in transit. You need to speak with the dealer that you are working with to find out exactly how Mercedes-Benz Credit's program works. If you are currently leasing though MBC you should be able to get them to waive their disposition fee on your current vehicle if you lease another one through them, they may waive your security deposit on your new car as well, but I doubt that they will waive their acquisition fee.
You're welcome, Chigirl. Mazda is not offering 39 month leases on the 2005 Mazda3s Sedan right now, but it is running a 38 month lease program on it. Its 48 month, 12,000 miles per base lease money factor and residual value for this car should be .00082 and 40%, respectively. I am not sure what lease calculators you have been using, but you should try the one that is available here at Edmunds.com. Here is a link for your convenience: Edmunds.com Lease Calculator.
Honda's special lease program on the 2005 Accord is only available for leases up to 36 months in length. If you lease one for longer than that you will have to pay a higher lease money factor (interest rate).
For more information on fun, exciting to drive sedans you should stop by the sedans forum or read the reviews that are available here at Edmunds.com.
Hi djocks. The main problem with assuming someone else's lease is that it often turns out that one can lease a similar brand new vehicle for the same money as, or even less then, a lot of the vehicles that are available on these sites. There are some consumers out there who end up subsidizing vehicles out of their own pocket to make assumption of them more attractive. If you can find a lease that is more attractive than the deal that would be available on a similar new car or truck on one of these sites, there's nothing wrong with using them.
I decided to get some quotes (both the purchase price first then the lease price) on both the EX and EX-L (we are not picky on color). With the Indianapolis dealers (Penske, Ed Martin, Indy Honda, and Honda West) and also CarsDirect, this is what I have received so far.
From Penske Honda:
EX $28,111 $367/mo for 12 K lease and $384/mo for 15 K lease (only 1st month down) EX-L $30,088 $418/mo for 12 K lease and $436/mo for 15 K lease (ditto)
Here are the purchase prices from CarsDirect (have not heard back about lease numbers), plus CD wanted me to choose one model or the other before they went much further.
EX $27,611 EX-L $29,588 (both are invoice and $500 less than Penske)
I was wondering what advice people have about replying to Penske? I am thinking about offering the following numbers (5% profit of estimated dealers net cost= invoice-holdback-dealer incentive+$515 destination): EX: $27,255 EX-L $29,262
Should I make Penske these ~$300 below invoice offers and tell them they have a deal if they accept? I am not going to sweat over $300, but it would be sweet to get one of these guys below invoice and I doubt CarsDirect will go below invoice. We are leaning toward the EX-L since Penske has both models in red and we like red the best. Just wanted to keep my options open with either model...
Still need to hear from other dealers plus do you think it would be wise to get the dealer that showed me the Pilots involved at Penske to see if he can compete with his internet sales team? Any predictions of what to expect a regular dealer being able to compete with the same dealerships internet sales guy? Let me know if anyone has some suggestions!! Thanks.
I am in the last 5 months of a BMW 330i lease. I definately need more space , probably more than the new 3 can provide. Before I go look at things like Maxima's and Murano's I have a question I've been looking for advice on for a while....
i have seen all over these lease assumptions. Lease trader, Lease swapper etc... Can you offer any advice in regards to these being safe and resonable or not? And would you personally ever consider such an option?
1) The $625 "assignment fee" is the acquisition fee.. standard on all BMWFS leases.
2) The $389.50 "dealer admin" is pure padding..dealer profit
3) $68.50 tire/rent/batt... No idea what this could be... some states have a tire fee to deal with used tires.. that is usually under $10.
4) SR and BR.. buy rate and sell rate... this is the money factor.. The "buy rate" or base rate is .00115 with security deposit waived.. the "sell rate" (what you are paying) is probably marked up by .0002 to the .00135 quoted..
I live in Manhattan-- no real need for a car. We've rented a house at the Jersey Shore for six months this summer. We will need a car available seven days a week (the car will be kept in NJ). I've looked into buying, leasing, renting, etc.
Do any dealerships offer short term (6 mos.) leases and/or rentals on used vehicles? We'd be willing to pay a premium.
What's the best way to approach a dealer about such a deal?
Your best bet would probably be Enterprise... They would likely cut you a deal, especially if you rent for 7 days per week, as a lot of their cars sit idle on weekends.. If you'll take something small (basic transportation), you could probably get a deal for $100/week with a little negotiation..
I doubt you could get a new car dealer to help you with this.. Most of them use Enterprise for their loaner cars..
I am looking to buy a 2005 Mazda3S in May '05. Using Edmonds Pricing System the price with the options, ATI,1AB,SIL,1TP & MCT came to $18,252 invoice. The TMV price is $18,797 and MSRP is $19,695. What is the lease money factor and residual value? I want to lease for 36-39 mos. and no money down, SIGN and DRIVE. My beacon is around 760. What is the best I can expect? Thanks
Haven't read the entire forum, so if I'm redundant ... just direct me to the right message. I want to lease a car when my STS lease expires in August. I'm leaning toward a 2006 Infiniti M35x, though still considering a new STS or a GS300 AWD. Cadillac will let me out of my lease early and give me an aggressive deal to keep me in an STS. Unfortunately the Infiniti dealer tells me that I need to wait until July and see what deals are available. They claim they can't commit on a price or a lease. If I special order a car, I can lock in the price, but not the lease. What's a guy to do? I don't want the uncertainty of not knowing what I'm really getting and at what price, but I don't want to pass up the GM incentives if I stay with them. Can't a dealer commit to a deal on a lease 3 months out?
You could look on the lease trade type sites and see if someone in the area has a suitable car nearing the end of lease. Then you take over the lease for the last 6 months or so then turn it in at the end. Just make sure you have enough miles to go with the months.
Places like www.leasetrade.com , www.swapalease.com , etc would be places to check.
You could also buy something cheap and reliable and sell it and the end of summer. This would require more money out, but I would think would be the cheapest in the long run. Get a car for a nice price from a private party and sell it yourself when done. With just a few more miles on it and 6 months later it should not have depreciated too much.
I’m looking to lease a car in a couple of months and will need 15k miles a year. With a 3 year lease I should have close to 45K miles on the car. Other than the luxury brands (Lexus, Infiniti, etc.) most car's bumper to bumper warranty is 3yrs/36K miles. This would mean that for other than the engine and transmission the car would be out of warranty for the last 9K miles that I lease it. I don’t want to have to pay for repairs on a car that I’m not going to have for several more months should anything go during those last 9K miles. Since many people seem to lease cars for 3 years with 15K miles, what do you do about keeping warranty coverage above 36K miles but within the 3 year lease?
I just found out that you can lease a used BMW. Is this a smart thing to do? Do they offer a warranty? I was almost set on leasing a Honda Pilot but I am such an indecisive person I can not decide what I want. I am now exploring other options. I need something that is roomy but also gets good gas mileage and I need a good deal. :-)
Extended warranty, I guess. Something like HondaCare that is good at any Honda dealer and is factory backed (no headaches like "Warranty Gold" going broke). Most of them the warranty is funded on a pro-rated basis, so buy it as late as you can then cancel it once you turn the car in. With some (GMPP, etc) the price is the cheapest ONLY if you buy it the same day as you buy your car - but you don't have to buy the warranty from the same dealer, just the same day. With others (Ford, Honda, etc) you can wait up to a certain point in the miles/months before you have to pay extra. By getting it late, you maximize the pro rated amount of the refund. Of course, if you buy a 50k extended warranty and drive 45k miles there will not be much to refund.
Of just take a chance - most modern cars can fly right past 36k or even 45k without any problem.
Of just avoid the GM and Ford brands - they are pretty much the only ones with a 3/36 warranty on the powertrain. Honda does as well, but most of the other imports offer longer power train warranties.
You can lease pretty much any used car - get a free online quote from leasecompare.com . Has to be MY2002 or newer right now and pass a pre-lease inspection. If by "they" you mean BMW then yes they have a CPO program. The warranty is 48/50k then the CPO takes it 2 more years and up to 100k miles. The CPO does not cover everything the warranty does and has a $50 deductible. Lexus, MB, and other luxury brands and even some not-so-luxury brands have similar deals. They often will have discounted financing or leasing to help move these CPO cars.
Enough room for what? A Pilot does not get very good mileage - 17mpg or so city and 21-22 mpg highway in EPA tests, real world is probably WORSE. Any BMW you get new or used will require premium fuel - and the "premium" on premium can be 10% or more per gallon - so that is like getting 10% worse mileage because you can't run the cheap stuff.
A new Accord is very roomy, large back seat and large trunk. Cheaper than the Pilot in most trims and the I4 gets better city mileage than the Pilot gets on the highway.
An indecisive person might be the wrong person for leasing. Changing you mind after you sign the paperwork can be VERY expensive with a lease
Most 3rd party lease banks will only accept a spouse as a co-signer on a lease. "Who knows" what the captive financing companies might do - I would guess they would be more inclined to accept a parent.
Some lease banks are pass fail - you are good enough or not, there is one rate and if you just qualify you get the same rate as someone with perfect credit. With others it is a tiered system - the better your credit the lower your rate. It is possible you could qualify for a lease on your own but at a slightly higher rate. "Not A+" leaves a lot of room - all the way from A down to F, so it is hard to say
I am looking to lease an 05 JGC Laredo, and I'm ready to make an offer. In a meeting with the "finance guy", he tells me that the Upfront Fees include:
Utah Title & Registration $200 Vehicle Theft Registry $189.50 Doc Fee $299 (waived since I'm "affiliate reward") CFC Acquisition Fee $700 First Payment
Are these legitimate costs that I should pay?? Another local dealer broke down a different set of fees, and the Title & Registration fee was only $47, they didn't list a Theft Registry Fee, and they tried to make me pay the Doc Fee (no way).
Is there a way out of the $700 Acq Fee?? This adds almost 1% to the money factor.
Thank you for all of your help... I have a few questions about the 2005 Nissan Altima SE-R. What is the money factor and residual value for a 36 month, 15,000 mile lease. Also what is the acquisition fee in New York, and is there any rebates or dealer cash available on a lease in NY? Are recent college graduate rebates available on a lease?
I also need your advice. I leased a car two days ago, and the dealer called me today and said that they forgot to charge me the acquisition fee, and that I still owe them money. However, the deal is signed and I have been driving the car for two days... I really can not afford any more money (I would not have bought the car if I knew it was going to cost so much)... what should I do? I think that the dealer should pay for any mistake they made... what do you think?
I realize the importance of residual value in determining the lease payments on a car. Unfortunately, I was so focused on getting a good overall price for the Toyota Sienna XLE 2005 that I forgot to ask about the residual value after 36 months. Since I got a decent price on the car, I'm suspicious they may tell me a lower residual value than the bank determines it to be, thereby increasing my lease payments. Can they do that? How can I find out the residual value on this car so I can prevent paying larger monthly payments? Thanks, Hecht
I realize the importance of residual value in determining the lease payments on a car. Unfortunately, I was so focused on getting a good overall price for the Toyota Sienna XLE 2005 that I forgot to ask about the residual value after 36 months. Since I got a decent price on the car, I'm suspicious they may tell me a lower residual value than the bank determines it to be, thereby increasing my lease payments. Can they do that? How can I find out the residual value on this car so I can prevent paying larger monthly payments? Thanks, Hecht
The dealer does not set the residual, only the lease bank sets that.
The dealer can and often does jack up the money factor for extra profit. The residual the dealer gives you on the contract will be the right one. You need to know the buy rate money factor so they do not mark it up.
One thing to note, I suppose a bad dealer could tell you "the residual is 60%" so you calculate a low payment. Then when you go to sign the lease contract the residual is lower and your payments are higher - the the residual on the contract is the right one.
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One trick you can do - go to www.carfax.com and put in your VIN. It should ID what the year, make, and model of the car is and report there are 0 records on it. This is an indicator that it is has never been titled before. You can also call the customer service department of the company that makes your car and give them the VIN - they can confirm either the in-service date (if it has been turned in) or tell you it has not yet been turned in.
The only "bad" reason I can see for a dealer checking the used box is to get you to pay a used car money factor on the lease.
Probably just a mistake.
Dennis
I would say no. You have a bill of sale and a contract and it does not include this fee then that is too bad. Maybe another honest mistake, but maybe another way to get folks to sign then hit them with the fee. The acquisition fee is due, but it is not listed on the itemized list of what was due at signing and you wrote a check for that amount, then they should pay it for you.
Now, you also have to count on them to do the registration, etc so I guess they could get nasty if you don't pay.
Dennis
I have a Audi 2002 A6 that will return to the dealer in Sept. The hood has some chipped paint due to freeway drive and the both front tires are 75% used. 1 yr ago, I got into an accident with this car. Everything were fixed with Audi parts and the car is running fine since then.
When I first start the lease, I paid all of the statement in advance. Now my new car will be arrived in mid May.
Also, I am pretty use up all the mileage under the contract.
Here is my concern:
1) If I return the car in Sept, should I fix the chipped paints and the replace the front tires?
2) Since the rear tires still have 50% rubbers left, do I need to replace them as well?
3) Will the dealer or leasing company will charge me for the accident I had, although everything is fixed to original condition?
4) Is it better off for me to return the car before Sept and not repair/replace anything?
My concern was that if I didn't sign I would not have a new car warranty and they would then demand that I pay them the acq fee. You' ve answered those questions already. So does it make sense for me to sign the new contract?
By the way, I entered the VIN# on Car Fax, and there is 1 record. But keep in mind, I have my license plate already - and they have already paid off my trade-in. We bought the car a month ago. I might add that I gave them the wrong payoff amount on my car, and they owe me a refund.
If you lease bank does not do pre turn in inspections, maybe your dealer could look it over anyway. I know BMWFS sends you a self evaluation kit so you do the inspection yourself. It includes a plastic tool to measure the dings and stuff.
There is no need to fix stuff you don't have to, but there is also no need to pay a high price for something you could easily fix. That is where the inspection comes in.
Dennis
Did the lease fund? In other words, did the bank pay the dealer for the car? You will know because you should have to make a 2nd payment by now. Have you gotten a bill for the 2nd month yet? If not, then it is likely that the lease did not yet fund and the dealer does not have the money for the car. You could try calling the lease bank and see if they have your account. If so, get the account number and payment address so you can get your 2nd payment in before it is late. If the lease never funded, then that is a different deal.
How much to they owe you? I would have thought if they over paid the lease bank the refund would go to you. What must have happened is you told them $11k and they checked before they paid and found out $10.5k and paid that much. Since $11k was worked into the deal they "owe" you the money. I guess what you do depends on how much they owe you. If it is $50 or something VS the $550 fee then if you can get out of the fee then let them have the $50.
You have a new car with a new car warranty, sounds like to me. So I would not worry about the check box on the contract.
I don't understand when you say you will get a lower MF to make the payment the same. Either they put down 15k but used the 12k residual or they put down 15k and used the 15k residual. If they did the former, then your payment is right and "in theory" you have free miles. If the did the latter, then your old payment would be too high and just putting the proper numbers down on the new contract would net you a lower payment. In this case the monthly savings might make it work out in your favor or wash out the $550. Or are you saying they are lowering the MF so your payment is the same and you do not pay the $550 fee?
You could:
1) Get a lawyer's advice about what to do
2) Tell them to un-wind the deal. Give you back your old car, give them back the new one, and find a better dealer that knows how to fill out the paperwork. The miles and wear and tear on the new car is on the dealer. There is normally a form you sign that says if the finance does not go through then the deal is off. Some (crooked) dealers have a clause that says if that happens YOU owe them for each mile and day you put on or had the car. In this case, the un-wind can get expensive. But for most deals, there is no penalty to un-do the deal.
3) Tell them you want the contract as is and to get your lease funded. If the lease is already funded you could just make the payments and tell them to forget about it.
4) Tell them you will sign the new contract, but they will have to pay the acq fee out of their end. Optionally tell them you want it dated the date you sign the new one and have them include the current miles on the car as the starting miles for the lease. This will give you the first month and miles "free" for them having messed up so bad.
5) Be a trusting soul and just sign the new contact. I would have someone who knows leasing go over the original and this new one to make sure they are not messing you up somehow.
I don't know all the details, but this dealer is either really dumb or shady. I know folks make mistakes all the time, but they hosed the miles and hosed the acq fee and didn't check the payoff before doing the contract and didn't catch this for a month. If it were me, I would try to give them back the new car and go some place else. You didn't give us any details, but they may have ripped you off with a bad deal, inflated money factor, and poor value on your trade.
Dennis
You have two options return the car and pay, or buy the car at the end of the lease (or now). $0.15 is a normal over mile charge and 20k would be $3,000 - plus the mile you put on between now and then. So you should save quick.
If you check the true market value retail and trade on the car with the high mile (here and Edmunds, for example) and compare that to the $11,300 buy out. If the car is worth more trade or retail than the buy out, then you could buy it out and sell it - or have a dealer buy it out. To avoid sales tax if you sell, you would have to go through a dealer and pay them to do the paperwork. If the current value of the car is close to the buy out, call and get a current buy out and see about trading it in now. If the buy out is more than trade, you can either pay that out of pocket or roll it into the new car (not a good idea, but.....). Be sure to get an itemized buy out since they may include sales tax in the number they give you. If you go through or sell to a dealer you would not pay tax.
Dennis
How can I avoid the big downpayment trap where I lose my 9K (the trade in value on the Audi) if I total the lease car or it is stolen - I've read about balloon note finance in NY state, but are these programs available elsewhere, and would that be one way to finance it. Alternatively, could I get the dealer to give me cash for the Audi, but I only use a small portion for downpayment, and use the rest toward future payments?
Advice much appreciated.
steve
:confuse: :confuse:
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If you were to lease a 2005 Acura MDX Touring AWD w/DVD through American Honda Finance Corp. right now for 36 months with 15,000 miles per year, its base lease money factor and residual value should be .00196 and 58%, respectively. Using these numbers, an MSRP of $41,795, and a selling price of $39,398, I estimate that this truck should have a zero down, pre-tax monthly payment of around $546.
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I will down up zero down lease payments on both of these trucks for you using Honda's base lease program so that you can compare them to the ones that you were quoted. According to my calculations, if you were to lease a 2005 Honda Pilot EX without navigation or rear entertainment with an MSRP of $30,635 and a selling price of $28,100 through American Honda Finance Corp. right now for 3 years with 12,000 miles per, your zero down, pre-tax monthly payment should be around $318. A down payment of $2,500 would reduce this payment to around $245.
If you were to lease a 2005 Honda Pilot EX-L without navigation or rear entertainment with an MSRP of $32,635 and a selling price of $29,980 through AHFC right now for 36 months with 12,000 miles per, your zero down, pre-tax monthly payment should be around $366.
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Thanks,
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Honda's special lease program on the 2005 Accord is only available for leases up to 36 months in length. If you lease one for longer than that you will have to pay a higher lease money factor (interest rate).
For more information on fun, exciting to drive sedans you should stop by the sedans forum or read the reviews that are available here at Edmunds.com.
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From Penske Honda:
EX $28,111 $367/mo for 12 K lease and $384/mo for 15 K lease (only 1st month down)
EX-L $30,088 $418/mo for 12 K lease and $436/mo for 15 K lease (ditto)
Here are the purchase prices from CarsDirect (have not heard back about lease numbers), plus CD wanted me to choose one model or the other before they went much further.
EX $27,611
EX-L $29,588 (both are invoice and $500 less than Penske)
I was wondering what advice people have about replying to Penske? I am thinking about offering the following numbers (5% profit of estimated dealers net cost= invoice-holdback-dealer incentive+$515 destination):
EX: $27,255
EX-L $29,262
Should I make Penske these ~$300 below invoice offers and tell them they have a deal if they accept? I am not going to sweat over $300, but it would be sweet to get one of these guys below invoice and I doubt CarsDirect will go below invoice. We are leaning toward the EX-L since Penske has both models in red and we like red the best. Just wanted to keep my options open with either model...
Still need to hear from other dealers plus do you think it would be wise to get the dealer that showed me the Pilots involved at Penske to see if he can compete with his internet sales team? Any predictions of what to expect a regular dealer being able to compete with the same dealerships internet sales guy? Let me know if anyone has some suggestions!!
Thanks.
I am in the last 5 months of a BMW 330i lease. I definately need more space , probably more than the new 3 can provide. Before I go look at things like Maxima's and Murano's I have a question I've been looking for advice on for a while....
i have seen all over these lease assumptions. Lease trader, Lease swapper etc... Can you offer any advice in regards to these being safe and resonable or not? And would you personally ever consider such an option?
Thanks,
djocks
2) The $389.50 "dealer admin" is pure padding..dealer profit
3) $68.50 tire/rent/batt... No idea what this could be... some states have a tire fee to deal with used tires.. that is usually under $10.
4) SR and BR.. buy rate and sell rate... this is the money factor.. The "buy rate" or base rate is .00115 with security deposit waived.. the "sell rate" (what you are paying) is probably marked up by .0002 to the .00135 quoted..
Hope this helps,
kyfdx
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Do any dealerships offer short term (6 mos.) leases and/or rentals on used vehicles? We'd be willing to pay a premium.
What's the best way to approach a dealer about such a deal?
I doubt you could get a new car dealer to help you with this.. Most of them use Enterprise for their loaner cars..
regards,
kyfdx
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Places like www.leasetrade.com , www.swapalease.com , etc would be places to check.
You could also buy something cheap and reliable and sell it and the end of summer. This would require more money out, but I would think would be the cheapest in the long run. Get a car for a nice price from a private party and sell it yourself when done. With just a few more miles on it and 6 months later it should not have depreciated too much.
Dennis
Of just take a chance - most modern cars can fly right past 36k or even 45k without any problem.
Of just avoid the GM and Ford brands - they are pretty much the only ones with a 3/36 warranty on the powertrain. Honda does as well, but most of the other imports offer longer power train warranties.
Dennis
Enough room for what? A Pilot does not get very good mileage - 17mpg or so city and 21-22 mpg highway in EPA tests, real world is probably WORSE. Any BMW you get new or used will require premium fuel - and the "premium" on premium can be 10% or more per gallon - so that is like getting 10% worse mileage because you can't run the cheap stuff.
A new Accord is very roomy, large back seat and large trunk. Cheaper than the Pilot in most trims and the I4 gets better city mileage than the Pilot gets on the highway.
An indecisive person might be the wrong person for leasing. Changing you mind after you sign the paperwork can be VERY expensive with a lease
Dennis
Janell
Some lease banks are pass fail - you are good enough or not, there is one rate and if you just qualify you get the same rate as someone with perfect credit. With others it is a tiered system - the better your credit the lower your rate. It is possible you could qualify for a lease on your own but at a slightly higher rate. "Not A+" leaves a lot of room - all the way from A down to F, so it is hard to say
Dennis
Utah Title & Registration $200
Vehicle Theft Registry $189.50
Doc Fee $299 (waived since I'm "affiliate reward")
CFC Acquisition Fee $700
First Payment
Are these legitimate costs that I should pay?? Another local dealer broke down a different set of fees, and the Title & Registration fee was only $47, they didn't list a Theft Registry Fee, and they tried to make me pay the Doc Fee (no way).
Is there a way out of the $700 Acq Fee?? This adds almost 1% to the money factor.
Thanks in advance for your help.
Thank you for all of your help... I have a few questions about the 2005 Nissan Altima SE-R. What is the money factor and residual value for a 36 month, 15,000 mile lease. Also what is the acquisition fee in New York, and is there any rebates or dealer cash available on a lease in NY? Are recent college graduate rebates available on a lease?
I also need your advice. I leased a car two days ago, and the dealer called me today and said that they forgot to charge me the acquisition fee, and that I still owe them money. However, the deal is signed and I have been driving the car for two days... I really can not afford any more money (I would not have bought the car if I knew it was going to cost so much)... what should I do? I think that the dealer should pay for any mistake they made... what do you think?
Thanks,
Caleb
What are the residuals on the A4 3.2 and money factor for a 3yr/30k lease? And is any one getting these below MSRP?
I have been leasing cars for almost 15 years with perfect credit.
Recently Ihave been sued in small claims for $500 court on May 5th, 2005.
If I lose in court - will this affect my leasing credit, even if I pay the judgement on time?
Should I pay before going to court, eventhough I think it is wrong, just avoid a bad credit rating for leasing a new car?
The dealer does not set the residual, only the lease bank sets that.
The dealer can and often does jack up the money factor for extra profit. The residual the dealer gives you on the contract will be the right one. You need to know the buy rate money factor so they do not mark it up.
One thing to note, I suppose a bad dealer could tell you "the residual is 60%" so you calculate a low payment. Then when you go to sign the lease contract the residual is lower and your payments are higher - the the residual on the contract is the right one.
Dennis