Lease Questions - Ask Here

dawner · May 2005

sorry... the factor is 0.00185 instead of 0.000185

dawner · May 2005

Car_man or anyone else....

Re: 2005.5 Jetta 2.5L Package 1

I just got off the phone with the finance manager to clear up a few things for me.

He said the buy rate = .00110
Then once the aquisition fee is put in, the money factor changes to .00170.

I have the option to pay the security deposit of 350 up front, which they tell me I will get back at the end.
If I don't pay the sec up front, then the money factor goes up to .00185.

Should I pay it, should I not???

Can anyone please help me make sense of this... my head is spinning!!!

smith83 · May 2005

I think I am going to go with an MDX. The Acura folks are much easier to deal with and do not hide numbers. They actually walked me through the various lease payments, etc. on the salesman's computer. It's nice to actually see the calculations in front of you. At the Lexus dealership they still use the method of going back to the "tower" for numbers and hide the calculations.

The tax rate in NC is 7%. I guess the acquisition fee and deposit were rolled in the payment as well. It still sounds like Lexus is adding some extra profit in the deal.

What are the residual and MF on an MDX Touring w/NAV and DVD?

smith83.

dwynne · May 2005

Like I said, even with 7% tax you would have to raise the new cap cost by a lot of money to get the payment they quoted you. With a jacked up MF AND "mystery" money added to you cap cost sounds like doing financing with them would be a tricky affair.

You can still get the Lexus, if you want. I checked at leasecompare.com and they are doing 54% and 0.00196 on a 36/45k lease of a loaded up RX330. You might also could find a local lease broker to do the lease - or use leasecompare or leas-by-tel to do the deal. They would buy the truck at your negotiated price and lease it to you.

On the MDX front, it looks like a loaded one is 0.00196 and 56% (the residual gets lower the more loaded the truck, it appears). This is probably the last day for this rate and "who knows" what it will be next month. If the Acura dealer messes you around too, leasecompare.com is showing 54% and 0.00210 on this truck now.

Good luck - and don't let them "win" by getting you to sign for something that is not right

Dennis

jaybee85 · May 2005

Thanks to a good education from car_man, Dennis and many posters, we signed a lease a few days ago on a 2005 Honda Accord LX under good terms. We negotiated a monthly payment of $190 (36 months, 12,000 miles, AHFC) including NJ tax (@$11/month) and a security system installed (@$300MSRP or $5/month), against $2000 cash including all fees, first month payment, motor vehicle and some cap cost. We wanted the lower monthly payment, so traded cash to achieve that.
With my numbers before me, I called the local dealer in Madison NJ (Flavia) and in maybe 5 minutes concluded a straightforward discussion and closed the deal with a credit card charge, with final payment, dox and pickup 2 days later.
They, and all other dealers I suppose, want to move cars as the Honda lease program ends today and they want the dealer incentive payments for volume sales. Maybe you'll do better.
I realize that the program might - or might not- be extended, but we wanted this deal now, and preferred not to roll the dice.
Thanks again guys and gals!

CarMan@Edmunds · May 2005

No problem, smith83. I suspect that you were quoted a higher lease money factor on this truck because either A) you are having your security deposit or acquisition fee waived,

the dealer that you are working with is marking it up to add additional back-end profit to your deal, or C) All of the above. Using the prices that you were quoted, an MSRP of $46,503 and a selling price of $43,503 a base 2005 Lexus RX 330 4WD leased through LFS for 3 years with 15,000 miles per should have a zero down, pre-tax monthly payment of around $587. As you can see, the monthly payment that you were quoted to lease this truck looks a little high.

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CarMan@Edmunds · May 2005

Dawner, how much dealers charge for doc fees is completely up to them. These fees really aren't much more than a profit center for dealers. Even if they claim that they cannot waive their doc fee for you, just have them reduce your vehicle's selling price by the amount that you want the doc fee reduced by. I haven't seen any lease payments for similar cars mentioned by other community members recently, but I can work up an approximate lease payment on this car for you. According to my calculations, if you were to lease a 2005.5 Volkswagen Jetta 2.5L Sedan with an MSRP of $22,189 and a capitalized cost of $20,689 (a $1,000 discount which you should be able to beat minus the $500 loyalty) through VW Credit right now for 4 years with 15,000 miles per, your zero down, pre-tax monthly payment should be around $253.

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CarMan@Edmunds · May 2005

Congratulations on your new car, miamimike1. Thanks for taking the time to stop back and let us all know how everything turned out.

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CarMan@Edmunds · May 2005

Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment. Once you have a general understanding of how leasing works, stop back and I will be more than happy to answer any specific questions that you have.

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CarMan@Edmunds · May 2005

Dawner, I personally pay security deposits on the vehicles that I lease. You need to pay one in order to get the lowest possible lease money factor. I would rather pay a deposit that I will eventually get back than just throw away money on a higher payment each month. To qualify for the .00110 lease money factor that VW is providing on this car, you also have to pay VW Credit's lease acquisition fee of $575 at signing.

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CarMan@Edmunds · May 2005

Hey smith83. Acura's April lease program on the 2005 MDX was scheduled to expire at the end of today, May 2nd. I haven't had an opportunity to take a look at its new lease program yet, but should be able to by the end of the week. Please post a quick reminder in this discussion for me then and I will be more than happy to fill you in on what I have been able to find out.

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CarMan@Edmunds · May 2005

Hey jaybee85. I am glad that you learned so much by visiting this discussion. Congratulations on your new car. Thanks for taking the time to stop back and let us all know how everything turned out. Enjoy!

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johnnyb_m · May 2005

I'm trying to find a good deal on a near luxury/luxury SUV. The number's I'm getting from dealers are higher than any calculations I can come up with. When I dig into the numbers, the residual values are lower than what I expected.

I'm specifically looking for a 24 or 30 month lease. I'm considering the GX470, Toureg, Landcruiser, or Cayenne (the XC90 is on the list, but at the bottom). On the Landcruiser, the residual value for a 2 year term was quoted in the low 50's%. I expected that to be the number for a 3 or 4 year lease.

I'm not particular as to which of these I buy, but I'm looking for the best lease deal. I think the residual value is going to be the biggest factor (assuming MF and other terms are negotiated properly).

What's the residuals on these vehicles. I'd prefer the V8 versions, but if there is significant financial benefits to going with a V6, I'd consider it.

I'll be turning this vehicle in, so I want the residual to be high. 12k or 15k miles a year would be fine.

Any suggestions/ideas on how to rank these options?

Thanks
john

CarMan@Edmunds · May 2005

Hi John. The residual value that you were quoted to lease a Toyota Land Cruiser looks a little low to me as well. Toyota Financial Services' 2 year, 15,000 miles per residual value for this truck is currently 61%. Even its 3 year residual value for it is 56%. Given the fact that Toyota has not been providing any sort of lease support on the Land Cruiser, I would not be surprised if the dealer that you are speaking with is running your lease of it through an independent bank. Still, the independent bank would have to have one heck of a low money factor on this vehicle to make up for the low residual value that you were quoted.

Lexus Financial Services' current base lease money factor and residual value for a 3 year, 15,000 miles per lease of a 2005 GX 470 without navigation or the rear entertainment system should be .00225 and 57%.

Porsche Credit's current base lease money factor and residual value for a 3 year, 15,000 miles per lease of a 2005 Cayenne S should be .00260 and 55%.

Volkswagen is scheduled to publish a new lease program for the Touareg in the next day or two. Given the lack of support on the other trucks that you mentioned and the fact that VW is providing dealer cash and lease support on the '05 Touareg, I have a feeling that this might be the least expensive of your list to lease right now. Feel free to post a reminder for me late this week and I will try to give you an idea of what VW's May lease program is like for this truck.

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fish8 · May 2005

Can anyone give me an idea of when Chrysler will provide new incentives on their Town and Country vehicles? I noticed they expired yesterday. Thanks for any info you can provide.

ddelise · May 2005

In New Jersey, my mom went shopping for a Highlander AWD.

The dealer provided the base money factor (.00106) and residual value of 62%, as well as a very fair selling price ($50 over invoice). However, they computed the residual value not on the full value of the MSRP ($31,690), but in the following way:
62% of base MSRP (before options) of $27,590 = $17,105.80.
Approximately 28% of options of $4,100 = $1,148.
Total = $18253.80, instead of 62% of $31,690 = $19,647.

Is this standard Toyota Financial practice? Is this something the dealer has the option of doing? In other words, is it negotiable to have them residualize the entire dollar amount of the options/entire amount of the MSRP? Obviously, if this is done, then the lease amount will be lower (approximately $30-40/month or so).

Thanks for your help.

Damon

frank310 · May 2005

I'm looking for help on acquiring my first BMW and I want to know if the following price is good on a new 2005 545.
Options:
Steptronic
Cold Weather Package
Premium Sound Package
Sports Package
Nav System
SAT Radio

MSRP: $64,740
Sale Price $62,000 (sales rep said he can go a little lower)
Total Down Payment: $2,785 (nothing else out of pocket)
Monthly Payment: $776.97 (36 months 36k miles)
Taxes are in monthly payment, I live in NJ taxes are 6%

Thanks for the help I want to close today.

keystone · May 2005

I'm leasing a new Honda Pilot EX-L today. Can you tell me the AHFC current money factor and res.% for 36mo. x 12k yr.?

dwynne · May 2005

The April lease deals ended yesterday and I have not seen the May numbers - so you are own your own

Dennis

keystone · May 2005

Thanks anyway! Please let me know if you see them before 5PM. KERRY

dwynne · May 2005

"A day late and a dollar short" may apply to you today, but I failed to tell you what the rates WERE:

0.00154 and 60% for 36/36k on the EX-L (no NAV)
0.00154 and 58% for 36/36k on the EX-L (w/NAV)

If the dealer offers you a lot higher rate, you might wait and see if some new specials come out from Honda in the next few days.

Dennis

steevo · May 2005

Are the new MF and Res numbers out yet for May on the Altima and Maxima? SE models.
Also, In NY,When you trade in a vehicle its value is used against the purchase price of the new vehicle when figuring sales tax....DOes this benefit extend to leasing? I have not traded in on last few cars I leased and don't remember..Planning to trade this time.

ALso..Does the Altima SE lease program include the SE-R model?

ch7656 · May 2005

Car_man-
Thanks for the info last week on the April Odyssey rates...I'm still in the market and would like to know how things look for May.

Specifically I would appreciate MF and residual info on a 36 month 12k lease in SoCal. Both for the Touring Model and the EX Leather.

Thanks!

ltrain · May 2005

hi car_man,
i'd like the MF and Residual on an 05.5 A4 2.0t Avant Quattro for 36 mos @ 15k yr.
is it the same as April's #'s at .00015 and 56%? i got a good quote from a dealer fo one equipped w\ premium, cold and lighting packages for $35, 925 w\ an MSRP $36, 625 and am looking to move quickly.

thanks in advance,
ltrain

toy4me · May 2005

I know this will probably be a stupid question but I don't know much about leasing! How do you, or can you, negotiate a "money factor?" I have perfect credit and can get a very low rate on financing through Costco/Capital One (in the 5% range for a 36 month loan).

I'm interested in getting a 2005 Toyota Sequoia (not sure yet which trim level but probably Limited RWD), which I will probably keep for only a couple of years, until the new version comes out (or the Lexus version, if there ever is one). I'd like to invest as little as possible on this vehicle, since I'll buy the next one and keep it for a long time. My wife will be the primary driver (stay-at-home mom) so mileage restriction isn't a problem. The "lease vs. buy" part says that I should buy because I'll save about $2.00/month, but I'm not sure if I can negotiate the money factor to my advantage for a lease.

We're upside down on my wife's 2001 Highlander (bad lease prior to our new marriage) by about $5000 but we need a bigger vehicle for our blended family. What do you recommend we do? Thank you for your help.

johnnyb_m · May 2005

Carman,

I just noticed that Volvo seems to be subsidizing the XC90 as well. Have you looked at this lease? I know it was at the bottom of my list, but the 3rd seat is starting to win favor with my wife.

I'd appreciate your opinion on the terms for this lease and your thoughts on being able to negotiate a lower cap cost.

Lastly, I assume these terms can't be applied to other XC90 models (either the T6 or the V8).

I'm anxiously awaiting the VW release of their latest offers as well.

thanks
john

ddelise · May 2005

In New Jersey, my mom went shopping for a Highlander AWD.

The dealer provided the base money factor (.00106) and residual value of 62%, as well as a very fair selling price ($50 over invoice). However, they computed the residual value not on the full value of the MSRP ($31,690), but in the following way:
62% of base MSRP (before options) of $27,590 = $17,105.80.
Approximately 28% of options of $4,100 = $1,148.
Total = $18253.80, instead of 62% of $31,690 = $19,647.

Is this standard Toyota Financial practice? Is this something the dealer has the option of doing? In other words, is it negotiable to have them residualize the entire dollar amount of the options/entire amount of the MSRP? Obviously, if this is done, then the lease amount will be lower (approximately $30-40/month or so).

Also, now that we are into May, can I get the updated 36 month, 12k (and 10k if available) residual and money factor for the Highlander 4x4 6 cylinder (NOT Limited)?

Thanks for your help.

Damon

gwarrenfl · May 2005

Car_Man
While answering post 19786 re. Audi lease rates, please include this. My A4 Cabriolet, that was order came in to the dealer yesterday

Salesman says "I MUST SIGN CONTRACT AND TAKE DELIVERY TODAY!" :confuse: .
Unfortunately it will mean I have to take the entire day today as I now have to get the transaction together for ending my current Chrysler Sebring lease early.
I had put together an agreement for Carmax to buy car directly from Leasing company, and I will not have any liability

I will have to get everything redone as I will need a new appraisal and then Carmax has to get in touch with leasing manager etc etc. Then I will have to get my New Audi and finalize.

So is the Salesman correct in saying that it has to be done today? On Monday the same salesman said " the car is being shipped and should be in May 9th, and I would have the same lease deal that we agreed on" . So does the car being at the dealer change there ability to hold a lease program?
Need to know ASAP as I would have to make this my activity for today?
As always thanks,

Gary W

CarMan@Edmunds · May 2005

Hi fish8. This particular discussion is for community members who want to discuss leasing. For answer to questions about automakers' incentive programs, visit the following discussion: "Rebates, Incentives, APRs - Questions & Comments". Thanks.

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CarMan@Edmunds · May 2005

Damon, the salesperson that your mother was working with was unfortunately telling the truth. While most banks calculate vehicles' residual values using a percentage of their full MSRPs, Toyota Financial Services' residual values are based upon a percentage of vehicles base MSRPs. It places limits on the amount of money that can be residualized for many options. This often makes vehicles a little more expensive to lease through TFS than they would be using the same program, but another bank's residualization policy. Individual dealers do not have the option to change this.

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CarMan@Edmunds · May 2005

Hi frank310. BMW just introduced its new May lease program yesterday. I have not had an opportunity to take a close look at it yet. If you would like, please feel free to post a reminder in this discussion for me later on this week and I will be more than happy to fill you in on what I have been able to find out about the new program.

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CarMan@Edmunds · May 2005

Hi keystone. Honda just introduced its new May lease program yesterday. I have not had an opportunity to take a close look at it yet. If you would like, please feel free to post a reminder in this discussion for me later on this week and I will be more than happy to fill you in on what I have been able to find out about the new program.

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CarMan@Edmunds · May 2005

Hi steevo. Nissan just introduced its new May lease program very late yesterday. I have not had an opportunity to take a close look at it yet. If you would like, please feel free to post a reminder in this discussion for me later on this week and I will be more than happy to fill you in on what I have been able to find out about the new program.

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CarMan@Edmunds · May 2005

You're welcome, ch7656. I haven't seen the new May program yet, but I expect to within the next couple of days. Check back with me late this week and I should be able to tell you what the Odyssey's new lease program is like. Talk to you soon.

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CarMan@Edmunds · May 2005

Hi ltrain. Audi's April lease program is still in effect through May 4th. So if you were to lease this vehicle today you would have to use the April numbers that you mentioned.

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CarMan@Edmunds · May 2005

Greetings toy4me. Since you seem to be new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

As far as the ability to negotiate a vehicle's money factor goes, individual dealers do not have the authority to lower banks' published money factors for vehicles. Where the negotiation comes in is you need to make sure that the dealer that you are working with is not "marking-up" the base money factor for the car or truck that you want. Dealers are often allowed to mark-up banks' buy rates to add additional back-end profit to deals.

If you are currently $5,000 upside down on your Highlander, by far your least expensive option would be to wait until you are closer to the end of that lease. If that is absolutely not an option, you should be able to bury some of the money that you are upside down in a lease of a new Toyota Sienna. I said some because most banks will not let consumers lease or finance much more than the full MSRPs of vehicles. Even if you are able to negotiate several thousand dollars off of the price of your new Sienna, you still would have to pay money out of your own pocket to get out of your Highlander this early. Not to mention the fact that your Sienna will be much more expensive to lease than if you had done so without any negative equity.

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CarMan@Edmunds · May 2005

John, Volvo has been providing lease support on the 2005 XC90 lately. You're right, the T6 and V8 variants of this truck will likely have different lease programs. Its April lease program just expired yesterday and I have not had an opportunity to take a look at its new May numbers yet. Please feel free to check back with me late this week and I should be able to give you a good idea of what the new lease program for this model is like. Talk to you soon.

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CarMan@Edmunds · May 2005

Hey Gary W. Audi's April lease program is scheduled to run through May 4th. You should be able to lease this car using that program at any time prior to the 5th. Even if your car comes in after that date, you may be able to lock in the April program if you want to because your Cabrio was ordered. If you can't lock the current program in, then yes you would have to finalize your deal by today to take advantage of the April program. It is difficult to say what the new May lease program for this car will be like, but a number of automakers have cut back on their lease support on convertible models as summer rapidly approaches.

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gwarrenfl · May 2005

Car_ man,

Sorry maybe I wasn't clear in my last post.

THE CAR IS AT THE DEALERSHIP AND READY FOR DELIVERY.
Salesman said I MUST TAKE DELIVERY TODAY or the deal is whatever the rates and factors are tomorrow!. So it sounds like he may be justified, and I better take what I know to be a very fair lease program.

So off to the dealership!

ae5555 · May 2005

Car_Man, can you please post May info for the Acura TL 2005 WITH Navigation 36/12K lease.

Also, do you know if AHFC charges a bank fee in NY?

Thanks a lot!

eva3b · May 2005

Quoted from dealer on Long Island, NY an 05 Pilot EX-L with 12K, 36 months. Sign and drive in terms of down payment (nothing down, just pay 1st month payment of $ 410.00). Was orignally 390 per month, but 410 a month with dealer installed alarm in addition to the factory security system. May sound like much but Civic was recently stolen and totaled, and it had no alarm, do not want to go through that again. Any information would be appreciated, thank you ???

kyfdx · May 2005

AHFC bank fee in NY is $1095...

jdg345 · May 2005

Just my thinking, but $20 month for 36 months comes out to $720. I'm pretty sure you can get an aftermarket alarm from any number of retailers for a fraction of that. A friend of mine just had an alarm installed for $300.00 (total price including alarm modules and activation) that includes two 2-way wireless controls, a little color LCD fob that will show you a picture of the zones on the car, remote start, glass break, motion detection, etc. I don't know what the factory alarm comes with, but I'd wager it's just something that goes beep-beep.

d_nyholm · May 2005

Thanks for the help!!

Sorry for being a pain, but would you happen to know if the residuals or money factors changed from april??

36 mo
12K miles
15K miles

30 mo
12K miles
15K miles
??
Thanks in advance!!

dbrad · May 2005

Hello,

Does anyone have information on May Volvo lease incentives? I'm still considering leasing an S60.

Thanks.

Doug

dwynne · May 2005

Like the spring brings an outburst of flowers, the first of the month brings an outburst of "what are the numbers for ______ for this month".

I am sure car_man will post them later in the week when he has them....

Dennis

rolson1 · May 2005

Vehicle is reg in the state in which you reside or hold residence (your a full time traveler and just hang your hat there)

rosales1 · May 2005

i am going to lease a rx8 the security deposit and first month is 2,598. is the deposit refundable. on what part of the sale do you pay taxes on. what should i know about excess wear and tear like scratches ( will they charge for that)

dwynne · May 2005

That $2,598 at signing is just the promo lease to get the payments to be exactly $299 a month. You could put down less or more as you desire and still do the lease (with higher or lower payments).

The security deposit is refundable, when you turn the car back in if there is any excessive wear and tear charges it comes out of the deposit then you get the rest (if any) back.

Each lease bank has different standards on what is "Excessive" - but normally small scratches and dings are OK, larger ones or pits/chips in the glass are not.

Most captive lease banks (like Mazda credit) tend to be more lenient when it comes to excessive. If they get too tough then folks would not lease from them again.

Dennis

rosales1 · May 2005

THANKS SO MUCH FOR YOUR HELP, THAT WAS A QUICK RESPONSE

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