Lease Questions - Ask Here

mercedesstinks · May 2005

Stick to car advice and leave our New York Yankees alone!!!!!!!!!!!!!!
We are just experiencing for the last month what most every other baseball city goes through EVERY YEAR

jsyaruss · May 2005

excellent jdg345 - thanks so much for the info from leasecompare -- i was able to recreate the #s just as you were so now i understand better.

Also, to ikramerica -- yes indeed. thanks for the info about the c280 -- I agree that it sounds like a much better package... i have a fear that it may come in outside my budget, but budgets are made to be changed, no ;-)

Again, thanks much. The other car I'm strongly considering is a Volvo S60 and I see there are some posts about those here as well, so I'm gonna read those now.

Thanks!
S

tsb · May 2005

Hi. I'm looking for lease numbers for the Toyota 4Runner Sport Edition V6 4X4 and Scion tC with a manual transmission. Both leases will be for 36 months and 15K miles per year. Does Toyota offer 39 month leases? I am located in New Jersey. Thanks for your help.

ct1211 · May 2005

Hi Carman, you are so much help its amazing! I am now looking at the Acura RL and maybe the TL. They seem to offer so much for the money. I am not crazy abouth the FWD TL issue though. Can you tell me what the may money factors and residuals are for both of these cars with the Nav packages?? I am looking at 24 & 36 month 15K leases. also are Aura dealers willing to negotiate on pricing for these cars?

Thanks Mucho!!

dwynne · May 2005

Any money you put down to reduce the cost of the car is called "cap cost reduction" and gets you a lower monthly payment. The money is not returned at the end of the lease.

A security deposit is refundable when you return the car in good condition.

Dennis

andy2812 · May 2005

Car_man,

I'm not sure if you saw my earlier post, as I had seen that you had answered some other people after I posted my earlier request (#19905), so if not, here it is again. If you've seen my post already please disregard this one.

Can you please tell me the MF and Residual for a Maxima SE. I need them for either 24 or 27 or 30 months with 15K miles a year. I can't go for a longer term on this car since the car would be passed the 36K warranty before the lease is up based on me driving 15K miles a year and I don't think that leasing a car past the warranty period makes any sense.

Also, can you tell me the MF and Residual for an '05 Infiniti G35x for:
36 months and 15K miles a year.

Thanks in advance for your help.

ltaze · May 2005

I was wondering what would be the best time to turn in my lease early? I have a year left on a 48 month lease. The car is an Acura MDX, but I am ready to change it. I was thinking I might get the best deal in late September on a 2005 model since the 2006's would be on the lot by then, and on trading in this one. When I spoke with an Acura dealership recently, they told me I was about $2000 upside down in my car, due to "wear and tear" Someone keyed the car three months after I got it, and someone else scratched my bumper in a parking lot (I have had terrible luck with this car). Yet the dealer's biggest gripe was that I needed new tires, which I just got. They said my tires alone were almost $1,000 of the wear and tear (I paid half that for the same brand of tires). I figure that if I wait until late September I can get a good price on a new 2005 car (I was thinking the Acura TL or the Lexus RX 330) and that I could turn in the car free and clear (without having to pay anything out of pocket to turn it in). Will I have a better chance in September/October or should I try to trade in sooner? Should I stick with Acura to get the best deal because I currently have one, or will that not make a difference?

I won't be going back to the same dealership I just spoke with, since they are rip-off artists there, but would it be possible to get out of the lease without paying somewhere else? It's a 2002 MDX with 32k miles on it, and I pay 523.54 a month including taxes. The dealer told me the buy-out price for them was 23,000 (they first said it was 25k, and then a few minutes later said that American Honda would give it to them for 23k so I am assuming that 23k is the real buyout) and they said my car was worth only 21k because of the tires and two scratches. I appreciate any advice that you all can offer.

ewegleitner · May 2005

Don't know if you caught this earlier:

Car_Man,

I have been offered the following V70R lease(s):

4yr/12k miles
MSRP 43440, cap cost 35995
MF of .00189
$1k total out of pocket - 503mo. (with tax here in NC)

3yr/12k miles
same MSRP and cap cost
MF of .00214
$1k total out of pocket - 548/mo. (with tax here in NC)

CarMan@Edmunds · May 2005

Greetings jsyaruss and you're welcome. Mercedes-Benz is no longer providing any sort of lease money factor support on the 2005 C240 Sedan. As a result, if you were to lease one through Mercedes-Benz Credit, you would have to use its standard lease money factors. I believe that MBC's base standard lease money factor for consumers who qualify for its Tier 1 credit tier is currently around .00330. The residual value that you were quoted looks good as does the fact that you are taking advantage of Mercedes' "value added" lease program by using the 36 month lease parameters for a 39 month lease. As you already seem to be aware, Mercedes is providing $2,000 dealer cash on this car in May. Make sure to take this cash into account when negotiating your lease.

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jsyaruss · May 2005

Hi Car Man - Thanks so much for the very helpful response. I'm with you now on all the numbers for the MB -- a beautiful car, but I think I'm finding myself moving in another direction...

SO, that's why I posted the Qs about the Volvos -- I posted them on the wrong forum before, sorry about that, but now I think I've got the right place... When it's convenient, I'd love to know about the MF and Lease info on an S60R... I see that somebody just requested info on a V70R -- and my #s are almost identical...

MSRP: 43410
Cap cost: 35258.07
Mos: 39
Resid: .467 (seems low!)
MF: .00205
Init Pmt: 1387.90 (1st month plus sec plus reg)
Pmt: 547.90

Thoughts? Thx!
S

CarMan@Edmunds · May 2005

Here is the information that you are looking for, andy2812. If you were to lease a 2005 Nissan Maxima SE through Nissan Motor Acceptance Corp. right now for 24 months with 15,000 miles per year, its base lease money factor and residual value should be .00213 and 61%, respectively. I don't believe that NMAC offers 27 or 30 month leases on this car, but its most attractive lease program on it is 36 months. Its 36 month, 15K base factor and residual are .00045 and 52%. When negotiating your lease on this car, keep in mind that Nissan is providing $500 lease cash on it.

If you were to lease a 2005 Infiniti G35x through Infiniti Financial Services for 36 months with 15,000 miles per year, its base lease money factor and residual value should be .00205 and 60%, respectively.

Car_man
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CarMan@Edmunds · May 2005

Hello Edwin. The lease money factors that you were quoted for this vehicle look a little higher than Volvo Finance's base factors for it. Perhaps the dealer that you are working with is running your lease through an independent bank. Volvo is providing a whopping $5,750 lease cash for leases of the V70 through banks other than Volvo Finance in May. Volvo Finance's 3 and 4 year base money factors for the '05 V70R are .00125 and .00135, respectively. Using these numbers and the prices that you mentioned in your post, I come up with zero down, pre-tax monthly payments of $435 for 4 years and $446 for 3 years. Having said this, if the third party lease cash was used to arrive at the attractive capitalized cost that you were quoted these payments are not valid because this cash cannot be combined with Volvo finance's lease program.

Car_man
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CarMan@Edmunds · May 2005

Hi roadking1. Audi Financial Services' 3 year residual value for the 2005.5 A4 2.0T Sedan with quattro is 1% higher than its residual value for an equivalent 2WD model. Its base lease money factor for 3 year leases of both of these cars is currently .00135. This factor assumes that you pay a security deposit that is equivalent to your car's first month's payment rounded up to the nearest $50 increment at lease signing. I would be happy to calculate a sample lease payment on the car that you are interested in for you if you let me know what its full MSRP is.

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CarMan@Edmunds · May 2005

Hello rarrieta. Audi Financial Services' current base lease money factor for a 3 year lease of the 2005 A4 2.0T Avant is .00135. This factor assumes that you pay a security deposit that is equivalent to your car's first month's payment rounded up to the nearest $50 increment at lease signing. This factor is equivalent to an interest rate of around 3.24%. As you can see, the factor that you were quoted looks to be a little high. I would be more than happy to work up a sample lease payment on this vehicle for you using Audi's base lease program, but in order for me to do so I need you to tell me its full MSRP.

Car_man
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CarMan@Edmunds · May 2005

No problem, Doug. If you were to lease a 2005 Volvo S60 2.5T through Volvo Finance right now for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00019 and 52%, respectively.

Car_man
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CarMan@Edmunds · May 2005

Hey Damon. Sorry, I didn't see your post when I was on-line yesterday. Here is the info that you are looking for. If your mother was to lease a 2005 Jeep Cherokee Laredo 4x4 through Chrysler Financial right now for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00206 and 53%, respectively. The numbers for an otherwise identical 39 month lease should be .00214 and 52%. I don't believe that Chrysler Financial offers leases with only 10,000 miles per year. Its base lease acquisition fee in your state is currently $550. DaimlerChrysler is currently providing $2,500 lease cash plus an additional $1,000 bonus for going through Chrysler Financial, $3,500 total, that will help you to negotiate an attractive capitalized cost on this truck. If you can find one that has been on a dealer's lot since July 1 of last year or earlier, there is an additional $2,000 bonus on it.

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CarMan@Edmunds · May 2005

Here you go, shayna. If you were to lease a 2005 Volvo XC90 2.5T AWD through Volvo Finance right now for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00148 and 58%, respectively. I don't believe that Volvo is offering any free option packages or dealer cash incentives that can be used in conjunction with this special lease program at this time.

Car_man
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CarMan@Edmunds · May 2005

Hello Kevin. Even though the $4,200 that you have to pay at lease signing includes a number of different items, there is still a substantial down payment or capitalized cost reduction in that number. 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 Audi Cabrio would be exactly the same, regardless of whether you had put several thousand dollars, or had made absolutely no down payment at all

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.

Car_man
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CarMan@Edmunds · May 2005

Don't worry about it, farmdog. This sort of thing happens all the time. OK, let's take a look at these trucks' lease programs. If you were to lease a 2005 BMW 2005 BMW X5 3.0i through BMW Financial Services right now for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00125 and 60%, respectively. If you were to lease a 2005 Land Rover L3 HSE5 through its captive finance company right now for 3 years with 12,000 miles per, its base factor and residual value should be .00261 and 57%, respectively. Lastly, if you were to lease a 2005 Lexus RX 330 4WD without the navigation or rear entertainment systems through Lexus financial Services right now for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00146 and 58%, respectively.

Car_man
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CarMan@Edmunds · May 2005

Ckiggins, I just double checked your calculations and I came up with the exact same payment that you did

.

Car_man
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CarMan@Edmunds · May 2005

I am glad that you enjoy this discussion so much, munchmouth. Infiniti's lease money factors have never been good on the G35 Coupe. In fact, this is only the first month that I have ever seen any lease support on this car at all, and it isn't much. IFS' current base lease money factors for 24, 36 and 39 month leases of this car are .00192, .00199, and .00200, respectively. A number of cars have decent lease programs, or dealer cash support on them right now. A few that come to mind include the BMW 3-Series, Volvo S60, Saab 9-5, Nissan Maxima, Honda Accord and Volkswagen Passat (both are pretty nice when loaded up).

Car_man
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CarMan@Edmunds · May 2005

Chigirl, you definitely should be able to lease a Honda Accord for less than $400 per month. I'm not sure about the IS 300 though and I doubt that the TSX would be less than that, but you never know until we work out the payments. If you provide me with approximate selling prices and MSRPs for these cars and can work up some payments on them for you.

Car_man
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CarMan@Edmunds · May 2005

Here is the information that you are looking for, ewegleitner. If you were to lease a 2005 Saab 9-5 Aero Sedan through Saab Financial Services Corp. right now for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00029 and 45%, respectively. The numbers for an otherwise identical 4 year lease should be .00060 and 36%. When negotiating your deal on this car, make sure to take the $1,000 bonus cash and $2,000 lease cash, $3,000 total, that are available on it into account.

Car_man
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CarMan@Edmunds · May 2005

You're very welcome, hgiles.

Car_man
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dwynne · May 2005

Is AHFS your lease bank? If so, then you should have the standard $1,500 worth of "we forgive" built into the lease contract. I don't recall when they started putting that in all the contracts, but hopefully yours has this - check the details on the back and it is all spelled out if it is there.

Next step is to call the lease bank (whoever it is) and get a current buyout price for yourself. Make sure you get a break down of the price, since this could contain the buyout, early exit penalties, and tax. If you sell the car to a dealer or trade it you need not pay the taxes. Once you have the buyout price (w/o tax) then check the trade in value here and KBB for your truck, then see if you are upside down or not (taking into account the condition of the truck) based on the trade numbers and your buyout. If you are not, then you can look to trade now. If you are upside down, but close then maybe a few more months will get you right side up?

You should have filed a claim with your insurance when your truck was damaged and gotten it repaired. With my company, vandalism is cover with $0 deductible (no matter what your deductible is normally).

Dennis

dwynne · May 2005

Like car_man said, they must be giving you the factory money to get the price so low. I looked at leasecompare.com and they will do 0.00210 for the 3/36k for a payment of $534+tax/month - or $503 for 39 months. So the rate sounds pretty good. The weak residual makes the lease a little steep, even with the low cap cost.

Dennis

munchmouth · May 2005

Car_man, thank you for the money factors. Do you have the residual values for 12,000 miles 24, 36 and 39?

Just started looking at the Volvo S60 yesterday. Without even asking, the sales manager offered to take $5,000 off if leased, and $3,000 off if purchased on a T5 with a MSRP of $38,000. I was just looking at the car and he made this offer. Surprised the heck out of me!

roadking1 · May 2005

Carman, thanks. The retail price on the vehicle is $31020. The are will to sell the car for $30K. I am looking for a 12K lease, 36mos. Leaning towards the non quattro version because I live in phx. thanks again.

andy2812 · May 2005

Car_man

Thank you again for your help. You provide a very valuable service and take the mystery out of leasing.

jdg345 · May 2005

andy2812,

Something to consider when leasing beyond the warranty period: Extended Warranties. The price of them are usually negoitiable and any unused portion is usually prorated. The trick is to buy them at the last possible moment and then sell them when you turn the lease back in. This is typically what I do ... piece of mind and all that.

dwynne · May 2005

I answered this once before.

The money you put down to get a lower payment will not be given back to you. Just like buying a car with a loan, this just reduces the amount you owe so the payments are lower.

Most folks agree that paying much, if anything down on a lease is not a good idea. If you car was stolen or "totalled" in a crash the insurance would pay of the lease bank and you would lose all the money you put into the lease. A better idea is to limit yourself to what you can afford - or take your extra money and keep it in your savings account and use it to help make the payments if you need to.

Dennis

ltaze · May 2005

Hi Dennis,

Thanks for your response. I do have AHFS as the lease bank. The problem with the $1500 of wear and tear that they don't tell you is that no one scratch or damaged area can cost more than $500 to repair. You get $1500 total as long as everything is under $500 to fix. So if my bumper is $800 to fix or the keyed door, then it no longer is covered under the $1500 wear and tear policy. I found that little clause in my papers when I was looking at them not too long ago.

Another quick question, is my buyout price different from the dealer price? The salesman I spoke with told me they got a "special dealer buyout price" Is that true or is the price the same? Thanks again.

zed1 · May 2005

Hi there,

I have an 2002 Accord coming off lease at the end of this month and am looking at the Highlander or Pilot as a replacement. Can you provide me with the May MF and Residuals for:

1) Honda Pilot EX (no Leather)
2) Toyota Highlander AWD/V6 (not Limited)

State of purchase is New Jersey, lease will be 36 mo, 12,000/yr. Also, my understanding is that TFS does something weird when calculating the residual, as in using the base MSRP plus 28% of the MSRP of options?

Thanks,
Zed

pgill · May 2005

Carman -

Can you please provide the MF and residual for 2005 Lexus GX470 and Volvo XC90 V8? Both with Nav and rear entertainment if that makes a difference. Term is for 36 months 12k miles per year located in NJ. If either has attractive 39 or 42 month offers, please note that as well.

Thanks in advance for your help.

Peter

dwynne · May 2005

I guess I need to re-read the fine print

Seems like if the bumper cost to repair was $800 then you would just owe $300 - since they would forgive the first $500. But that might be my interpretation of it....

I would get the actual itemized buy out cost from the bank. No tax is due if you get a dealer to buy it (outright or as a trade in). After each payment is credited get another buy out itemized quote. Then you know for sure where you stand.

I have been told the AHFS does not negotiate the buyout price at lease end, but will accept an offer by the turn in dealer - this could be less than the buy out offer. Nothing says they have to take it, however.

Normally the dealer just wants you to take a new car off their hands, so a lot will tell you about anything to do so - even quoting a "special price" if the mood strikes them.

Get the real number and compare to the value of the truck. Even with the damage, I think you posted it had low miles. Then, at least, if you do trade in you will know how much is going to pay off the old truck and nothing will be hidden from you.

Dennis

oscalcis1 · May 2005

A friend of mine has a Volvo that the lease is up next month. I was wanting to pay her buy out price for the vehicle. Do I have to go through the leasing company or can I give her the money that she needs to buy it out?
Thanks
An

ewegleitner · May 2005

- Volvo numbers were done through an independent bank.
- Thanks for the Saab numbers!

jun2 · May 2005

Hi, my lease for 2002 expires in July and the dealer gave me the following information for 2005 BMW 32xi lease in NJ.

MSRP : 35,690 which includes some options.

Here's the informaton he gave me

Vehicle Cost : $33,695.00
MF . 2.2 (.0022???)
Residual: 57% ($20,343.30)
Mileage: 10,000/yr, He will give me back my 500 security deposit, but i can use it also in downpayment.
Due on signing is $1,000 as I asked for which have reduction cap cost of $138.
Monthly is $519/mo.

IS THIS A GOOD DEAL? or do you think they will allow me to negotiate 2,000 less of the vehicle cost. I would like to have less than 500/mo without changing my $1,000 due on signing.
Please advise.
Thank you very much!

Jun

dwynne · May 2005

In most states, the lessee (your friend) or a car dealer are the only one who can take title on a leased vehicle. In most states, when she takes title she will have to pay says tax on the purchase, then when you buy the vehicle you will have to pay sales tax again. The reasons for this are full sales tax was not paid up front and the car is titled in the lease bank's name. So the title has to be put in your name and tax is due.

You can get around this by using a dealer or car broker to handle the paperwork for a "nominal fee". You buy the car from the dealer, they buy the car from the lease bank (with your friend's permission) and no extra tax has to be paid. I did this with my BMW 330i that was coming off lease, it worth more than the buyout price so I sold it. I paid about $300 for the transaction to the dealer, which included overnight fees (the buyer was in a different city) and temporary tags.

Dennis

dwynne · May 2005

Is this a 3/30k lease?

The residual should be 58%, I think. 57% is right for 3/36k. The buy rate money factor is 0.00200 so the dealer has jacked that up by 0.0002 (0.48%) for extra profit.

With an MSRP of $35,690 the invoice should be around $33,100 AND there is a $4,000 dealer incentive on this car - so $33,695 is too much to pay. Getting it for invoice would still net the dealer a lot of profit.

Does the $519/mo include taxes? Since the payment on just the car w/o fees or cap cost reduction is $489.76 . There should be a security deposit (maybe) the lease acq fee, and first month's payment. Looks like they may have hidden some more profit in the cap cost, since I have to raise it to $34,695 to get that payment w/o tax.

I would think you could do better on the price on the car, and ask them to give you the buy rate on the lease.

Dennis

a6_to_m35 · May 2005

Do you have the new May numbers for leasing an M35x?

testykaren · May 2005

Car man:

Do you have the numbers for the 2006 ml 350 yet? What is the residual on it after 12K for three years, and what is their tier one money factor?

ericdkauff1 · May 2005

Car_man -

Was hoping you could provide me with the money factor & residual for the GMC Envoy SLT (not the XL or the Denali). I would be looking at 36 months & 12,000 miles/year, or would be willing to do 39 months/39,000 miles if that worked out a little better. I'm in Chicago, if there's any regional variation. I can work up the lease numbers, but need the money factor & residual to get started.

Help is sincerely appreciated!!!

jrdoa · May 2005

I have an '02 Acura RL with it's lease ending the first week of July. I am looking at purchasing a different make vehicle. My questions are:

1. Is it better for me to turn the leased car into the original dealer and close that lease out or trade the car into the new dealer I am purchasing the new car through?

2. Is it too early, or better yet, will I lose out on money if I did this transaction now or within the month, or should I wait as long as I can before purchasing this new car?

Jeff

briana · May 2005

I was interested in this answer as well as I'm probably about to lease an 05 Grand Cherokee (not sure about Laredo or Limited yet). Two questions though..

1. Do the money factor or residual change at all b/t Laredo and Limited? I assume not, but figured I'd ask.

2. You talked about a $1000 bonus for going through Chrysler Financial. That extra grand is available for people who lease as well?

Thanks a lot.

kyfdx · May 2005

I think the incentive is only $1500 on the 325xi..

ca_man · May 2005

Hi Car_Man

As for the A4, we want to lease a 2005 A4 2.0T Quattro, and for the A6, we want to lease a 2005 A6 3.2 Quattro.
Thanks for your help, as always !!

kmgts · May 2005

We are looking into leasing a truck or a SUV and were wondering how credit affects that process. If we did lease a Chevrolet Equinox for 36 12,000 miles..what should the price range be? We are willing to pay at least 3000 at signing. Thankyou!

dwynne · May 2005

I think the incentive is only $1500 on the 325xi..

You are correct. When I checked it earlier (here on Edmunds) it showed $4,000 for both the 330xi and the 325xi, now it shows $1,500 which sounds like the proper number. The dealer is STILL trying to rip that man/woman off, just not as bad

Dennis

buster6 · May 2005

Hi Car_man,

Could you help me out on the may 2 year 15k lease #'s for an Infiniti m35 (with nav) and the Lexus GS300 (with nav). Thanks a bunch--and congrats on having over 20,000 posts on this forum.

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