Lease Questions - Ask Here

dwynne · May 2005

It depends on if you are over miles or not on your lease and what kind of shape the car is in. Call the lease bank and get an itemize buy out quote for the car now. If the quote includes sales tax you can discount that since if you get another dealer to buy it they will not pay that. Then compare the buyout price to the Edmunds and KBB trade in value for your car with the miles and condition and options given. Is this number more or less than the buyout? If it is less, then just stay in the lease and turn the car in as normal. If the car is worth more trade in, then anything you get a dealer to give you over the buyout price is your money. Either have them write you a check for this amount, or use it to pay the up front money on your next lease.

You can check again after they post your next lease payment and see how much this drops the buyout.

Dennis

cyman14 · May 2005

Looking for help with an 2005.5 Audi A4 2.0t quattro lease, 36 mo/36k
MSRP 36,570
Selling price 35,281
residual 21,210 (58%)
Tax 927
Add'l cap cost 1025 (includes acq fee, title/license, doc fee)
The dealer is quoting me 556.15/mo with 0 down, no deposit. He is using a MF of .0019. Does this sound right? I thought I read earlier on this forum that Audi was using a .00135 MF on the A4.

This forum is an incredible resource!

shayna · May 2005

Thanks Car_Man. Another question: To your knowledge are there any current free option packages or dealer cash if the vehicle is purchased? Thanks.

johnnyb_m · May 2005

Carman,

Just so I do my due diligence, what is the money factor and the residuals on a Lincoln Navigator 4x4 Ultimate w/DVD, Power Running Boards, Hitch, HID, Navigation (MSRP $65296)? 24/30 and 36/45.

Thanks!
john

a6_to_m35 · May 2005

I'm going in to the dealer tomorrow!

I would be greatful if anyone has the Infinity
money factor and residual details...

Thanks!

hiemi · May 2005

Hi Carman,

I had posted a message (19519) with figures that I had gotten from an audi dealership. I asked in post 19598 if this was a good deal, but never got a reply. I haven't leased the audi because I am waiting for your answer. Thank you for this service.

andy2812 · May 2005

Thanks jdg345 for that little tip. I have a couple of questions:

1. Who would I contact about an extended warranty after owning the car for a couple of years?
2. Is this an after market warranty or one sold thru the dealership?
3. How much should an extended warrranty cost and do all of them refund the prorated portion.?

vyacha1 · May 2005

Hello Car_man. Could you please, provide money factor and residuals for those
3 SUV for 36m/12K. Thank you in advance.

mikekx · May 2005

Hi.. I'm hoping people can help.

I need to lease a car in June, 15K miles, want to keep monthly below 500, shooting for 400 or below depending on the car. I would imaging 36 month is a lot cheaper than 24 month.

I would like a sedan, either a semi-lux or lux, although cars like the acura TL seem very attractive.

Does anyone have any specific advice regarding outstanding current deals? I saw the BMW 05' 3 series has $4000 man to dealer which seems like it would make for a good deal but I don't yet have a clear understanding of the finances in leasing.

My thoughts were the acura TL, infinity, lexus or BMW 3 series.

Any help?

jac77 · May 2005

Help!! I am considering a lease on a 2005 X# BMW. Sticker is $40,500 (sales tax 8.9%) for 36 months. With a deposit of $2500 they are quoting me 574 for 36 months including tax and license. Does this sound reasonable?

jac77 · May 2005

Help Again (Post 20022). Mileage allowance is 12,000 annual and model is X3.

jac77 · May 2005

I have been quoted $575 for a 36 month lease on an X3 BMW. Deposit is $2500, sticker is $40,500. Sales tax is 8.9% and mileage allowance is 12,000 per year. $575 includes taxes and license. I would live someone to let me know how this sounds - is it reasonable??

thanks all :confuse:

jun2 · May 2005

Hi there, thank you so much for the response.
it was 3/36k lease @ 529/month including taxes

Veh Cost $33,695
MSRP $35,690
Residual 57% ($20,343)
MF 2.2
I asked for 1,000 due on signing so the cash down is only 138, here's the breakdown:
529.50 1st payment
250.00 1st yrs fees
82.00 other fees
138.00 cap red
-----------------------------
1,000 due on signing

GFS CAP COST 35,158.60
NEET CAP COST 35,020.60
What are this costs???

I asked how much for 3/30k lease and the monthly went down to 519/month.
IS THIS A GOOD DEAL??

Other info:
Disposition Fee is $350
LIC Fee $250
ASSIGN Fee $625 ????
Doc Fee $75
Tax rate is 6% in NJ

How can I lower the monthly payment below 500/mth ($470/mo)

Thanks a lot for advise.

dwynne · May 2005

How can I lower the monthly payment below 500/mth ($470/mo)

1) Get the dealer to price the car less than $33,695
2) Get the dealer to give you the "buy rate" on the lease - the money factor should be 0.00200 and the dealer is charging you 0.00220
3) Get a 325i and not the 325xi
4) Get a car with fewer options
5) Go to another dealer who will deal better

Some combination of those should work.

Dennis

jdg345 · May 2005

I just usually go back to the dealer (and I'll call a few of them to see what they're willing to offer me). I always buy through the dealership (though I may not necessarily buy the manufacturer warranty). ime, cost depends on the vehicle and the proration works differently depending on the warranty (manufacturer, third party, etc).

As a reference, when I added the 96 month / 100k mile warrany to my Accord, it was a cost of like $1100 (list, I negotiated better) purchased after 20k miles. It was like $950 if I bought it before 20k miles (so something else to check into). It has a $50 deductible which is waived if I take it to the dealer family that sold the warranty and it is per visit, not per issue. In other words, if I have 5 things broken and I take them all in at the same time, it's $50. If I take them in one by one on different days, it's $250 total ($50 per visit).

The Pro-Rate for this one is based on the date purchased, not the effective date (which is why I waited until later to purchase it) so I'll get reimbursed for any mileage or time not used (whichever is the lesser rebate). So if I turn in the car with 50k miles within 4 years, I'll get back $550. Keep in mind that on most leases you should be better than 50% on either mileage or time, so you'd get back a little more. Also, the pro-rate is based on list in this case, not on what I paid. In this scenario, I might have to eat $550 which is a month and a half worth of a typical car payment, but I prefer to do that rather than have the tranmission fall out of the thing and have a $3000 bill to pay out of my pocket. Also, since I negotiated a better rate, I think I really end up eating around $300 in this scenario ... I'm not willing to bet that 'Murphy' won't show up sometime in the 5, 6, or 7 months for that dollar amount -- but that's just me.

I guess what I'm trying to say is, "It Depends". You can shop these around and negotiate the purchase price, etc. Make sure you understand the details of any deductible and the way pro-rate (or even transferability works). Most are transferrable, and that could be worthwhile if you get the dealer or private party to buy it back from you at lease end (because it's worth more than the residual). It's an extra 'option' so to speak.

jdg345 · May 2005

Car_Man recently posted a case where one manufacturer actually had a better deal on a 24 month lease ... it's a few pages or so back ... I'm pretty sure it was either Saab or Audi ...

Car_man, "Lease Questions - Ask Here" #19928, 8 May 2005 8:44 am

Just found it, it's post 19928

ddelise · May 2005

Car_Man -

You replied:
***
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.
***

And here is some interesting news.

The dealer gave my mom a money factor of .00015 (not .00214) for the 39 month lease, but in doing so she had to forgoe the extra $1000 lease cash. According to the dealer, if you take the lease cash you then need to take the higher money factor. He said he worked the numbers and it was to her advantage to do so this way.

Additionally, the acquisition fee was $700, not $550. But by paying the $700, my mom did not need to put down a security deposit.

Finally, for leases in NJ, it seems like most deals now include the sales tax as a limp sum into the lease vs. paying it monthly. So when people from NJ are reporting their deals and thinking they got ripped off, sometimes the cap cost includes $600 or more of sales tax - just something to keep in mind.

Anyway, my mom did Ok overall. She leased a 2005 Grand Cherokee 4x4 with an MSRP of $29,145 with 12k miles/yr. for $359/month and with no money out of pocket (all state fee, taxes, dealer fees, acquisition fees, 1st payment rolled into lease).

Thanks for all your help.

Damon

jun2 · May 2005

Hi Guys, what if dealer gave me buy rate.. does it mean I have to buy it at end of the lease ??? why did it call "buy rate" ??

Actually I tried to get a car with fewer options, but its not available.
I like 325xi so i dont get stuck in snow, like my friend drving millenia, he got stucked.

BTW, what do you think with 519/mo for 3/30k lease I mentioned earlier? Is the offer good? bad??

Thanks a lot!

dwynne · May 2005

The buy rate for the lease is the money factor the dealer gets from BMW Financial services. On this car that is 0.0020 and the dealer is raising it to 0.0022 to make extra money off of you. This means each month you pay more because of the dealer's greed.

So to get a lower payment you need to get the dealer to discount the car more and/or give you the 0.0020 money factor on the lease. If not, check with other BMW dealers and see if they will deal better.

Dennis

mustangmike02 · May 2005

Hey car_man

I've been looking into a leasing a 05 WRX w/Prem Package. I'm trying to keep my payments aound $300-330 a month for a 3yr(12k miles per yr). MSRP is $27,120 and invoice is $25,431. (Does Subaru have any lease incenitives the wrx?) What should/can I offer to get my payments at what I would like? Thanx in advance..

kcarter76 · May 2005

dwynne i dont think your comments about the dealer are fair to say you dont know what the beacon is being used to come up with the money factor as that plays a huge part

CarMan@Edmunds · May 2005

I'm glad that you enjoy this discussion so much, wsa10. 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 both full MSRP and selling prices of all the cars that you are interested in are. 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.

There's nothing wrong with balloon notes. In fact, they are very similar to leases in that they provide consumers with low monthly payments with an option to purchase their vehicles at a predetermined price after a specific period of time. the main difference between leases and balloon notes are that with leases the bank's name is on your vehicle's title, while with balloon notes yours is. Manufacturers' supported lease programs usually provide fairly similar monthly payments to their lease programs. Balloon notes are usually used on states that have vicarious liability laws, like New York, or in states that traditionally have had sales tax regulations that made leasing expensive, like Texas. Unfortunately, because they are so much less popular than leases, I do not personally keep tabs on the details of manufacturers' current balloon note programs.

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CarMan@Edmunds · May 2005

Hey Scoob. Zoinks, down payments on leases definitely are not returned after the lease is over. In fact, 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 the vehicle that you are leasing would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all. If you have the money on hand and want a lower monthly lease payment, see if the bank that you plan on leasing your new car or truck through allows consumers to make multiple down payments. Many banks offer their lessees a reduction in the money factor that is used to calculate their vehicle's monthly payment for each additional security deposit they make. One major upside of making multiple security deposits over making a down payment is that you actually get your additional deposits back at lease-end.

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CarMan@Edmunds · May 2005

You're very welcome, sickeds. Saab Financial Services' Corp.'s current base lease money factors and residual values for 24, 36 and 48 month, 12,000 miles per year leases of the 2005 Saab 903 Linear Convertible are .00040 / 63%, .00064 / 52%, and .00100 . 43%, respectively. when calculating leases on this car, don't forget the bonus cash that is available on it this month.

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CarMan@Edmunds · May 2005

Very true, very true. Don't get me wrong, I actually like the Yanks. I just am a big fan of player development and the minor leagues, which the Yanks haven't done much with in recent years. OK, back to cars. Let me know if you have any other questions.

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CarMan@Edmunds · May 2005

Hi tsb. According to the latest informaiton that I have seen, if you were to lease a 2005 Toyota 4Runner Sport Edition V6 4X4 through Toyota Financial Services in your area right now for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00171 and 61%, respectively. I have not seen Toyota Financial Services' residual values for the 2005 Scion tC lately, but given the fact that dealers do not have the authority to alter banks' residual values, the most important number about this car for you to know is its money factor. Toyota is not currently providing any sort of lease money factor support on the Scion tC. As a result, if you were to lease one through Toyota Financial Services, you would have to use its standard lease money factor of .00245 for Tier 1+ customers. This factor would be different if you qualify for a different credit tier.

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CarMan@Edmunds · May 2005

Thanks ct1211. Neither of the cars that you mentioned currently have any sort of lease support available on them. As a result, if you were to lease either one through American Honda Finance Corp. right now, you would have to use its standard lease money factors. Its standard 36 month money factor for consumers who qualify for its "Super Preferred" credit tier is .00240. Its 24 month standard factor is terrible so you don't want to lease either of these cars for that long. AHFC's 36 month, 15,000 miles per year residual values for all 2005 RLs is 58% and its residual for an otherwise identical lease of an '05 TL with navigation is 56%. In areas where there is a decent amount of competition Acura dealers seem to be very willing to negotiate these cars' prices.

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ct1211 · May 2005

Carman does a credit score of 720-730 qualify as top tier with many lease's over more years than I care to count??

dwynne · May 2005

BMWFS and a lot of the captive lease banks are pass/fail - you either qualify for the lease or you do not. If you do, then you CAN get the best rate. In the case of BMW, the dealers are "infamous" for marking up the buy rate. Often you have to go to a different BMW dealer (or get a 3rd party lease) to avoid this MF mark up.

Lease banks that have a tier system can and do have different rates based on score. Almost every, if not all 3rd party lease bank uses this system.

I would also think that at this point the person asking the question has just got a lease quote - they have not even filled out a credit app yet.

So there, now you know

Dennis

dwynne · May 2005

I think 730 and up is considered to be "A+" . Sometimes lease banks will use an "Auto enhanced" score which give more weight than normal to car loans and leases so with a long history of no lates and paid off loans/leases that would bump a 720 into the A+ range with ease. About the only thing that would give them pause is if someone had been leasing $15k cars and applied for a $50k RL - even with a 730 they might want to see a check stub to see the lessee just got a big raise

Dennis

burgermac · May 2005

I think it depends on which state you are leasing in. I'm in Tennessee and have been quoted, on an X3 3.0i w/Automatic, Black (non-metallic paint) w/Terracotta Brown Leather Interior (part of premium package), Satellite Radio prep and heated seats (MSRP $) 39,370. They are willing to sell me the car for $37,700 (Cap cost before reductions). Money factor is .0012 and residual is 62% (10K miles per year). 36 Month Term, Monthly payment of $422.84. That pmt is with $2500 cap cost reduction. With out cap cost reduction, monthly pmt is $500.35. I am not sure that mine is the best deal either... it seems that there are a number of the same model on the lot and dealer acts put out when negiotiating the price becomes the topic of discussion. My question for anyone who has leased an X3 (or any BMW, for that matter), is this: They are insisting on an $825 lease acquisition cost. It is being rolled into the cap cost (as opposed to being one of the up front costs like tax, title, doc prep and security deposit) and appears to be in addition to all the other up front costs which are not rolled into the cap cost. I have never seen this before- Car_Man, if you can enlighten me, is this fee standard or am I being ripped off. This is the only dealer for about 150 miles in any direction, so my thinking is that they feel that they can ask what they want since they have a somewhat captive audience. There's also a little bit of: "they're looking at a BMW, so they must be able to afford any fees we throw at them" going on as well. Please advise on this rogue $825 fee which makes no sense as far as lease arithmetic goes.

namssa · May 2005

What about taxes? Doesn't a down payment reduce the sales/use tax portion of the payment? In my state, the 5% I save is better than I would get if I left that money in the bank.

sickeds · May 2005

Thanks, Car Man. Appreciate your forum and the service you provide! I recall in your earlier message, you calculated a 24 month, 15K mi/yr lease for me at around $345/mo. So I figured a 12K mi/yr lease should be just a little less. But when I plugged the figures you listed in your latest message into the Edmunds Lease Calculator, I came up with a figure of $405/mo. Being a lease newbie, I must be running my figures incorrectly.

Here's what I used:
Selling price (b/f rebates): $36,319 [GM employee GMS price]
Sales Tax: $3,178 @ 8.75% [default figure from lease calculator for 60048 zip]
Title, Reg, other fees: $545 [default figure from lease calculator]
Rebates: $4,000 [3,000 total current rebates + 1,000 Oldsmobile rebate]
Down pymt.: 0
Trade-in: 0
Lease term: 24 mos.
Residual: 24,992 [63% of MSRP of 39,670]
MF: 0.0004
Mi/yr: 12,000
Acq. Fee: $500 [default figure from lease calculator]
Sec. Dep.: $600 [default figure from lease calculator]

Can you kindly review my figures above and let me know where I went wrong?

P.S. The dealer got back to me with a quote of $471/mo. w/ $1,000 down! This appears way off. I know GM employee pricing is fixed and non-negotiable, but maybe financing and lease terms are not?

Thanks again for your help!

jdg345 · May 2005

btw, you should be able to call dealers around the country and find the car for a better deal ... you can fly to pick it up and drive it back or worst case, have it shipped by DAP ... it's usually less than $1k to your door fully insured.

No need to lock yourself into the one local dealer ... maybe even pit the Internet/Remote dealer against your local one, have the local dealer match their price (or beat it), and it's a win/win.

CarMan@Edmunds · May 2005

Hi ltaze. The best time to turn in a leased vehicle is when your lease is over. Getting out of leased vehicles early is often very expensive. If you really have to get out of your leased vehicle now, I suppose it wouldn't hurt to do so at the end of the model year. At that time, dealers are usually anxious to unload leftover vehicles to make room for the new models and will often cut fairly attractive deals. Furthermore, manufacturers often offer additional incentives to help their dealers unload these vehicles. This statement applies to vehicles that are paid for with cash or financed, not leased. By the end of the model year, vehicles' residual values have fallen quite a bit which often makes them more expensive to lease than they had been earlier in the model year.

Your truck must be in rough shape if American Honda Finance corp. wants to hit you with a $2,000 bill for excess wear and tear. I have always found them to be very lenient when assessing leased vehicles for excess wear. You certainly can wait until the fall to get a new vehicle, but I highly doubt that you will be able to get out of your current lease for free. Even if you don't have to pay anything out of your own pocket to get out of your deal, burying your remaining lease payments and excess wear and tear charges in your next vehicle will severely hamper your ability to get a good deal.

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CarMan@Edmunds · May 2005

You're very welcome, jsyaruss. Let's take a look at the lease program for the Volvo that you are interested in. If you were to lease a 2005 Volvo S60 R through Volvo Finance right now for 36 months with 15,000 miles per, its base lease money factor and residual value should be .00040 and 49%, respectively. The numbers for an otherwise identical 39 month lease should be .00075 and 46%. As you can see, these money factors are a lot lower than the one that you were quoted. What is probably is happening here is the dealer that you are working with is running your lease through a bank other than Volvo Finance. It may be to your advantage to do so because Volvo is currently providing a whopping $7,250 cash incentive on lease of the '05 S60 R through banks other than Volvo Finance. Make sure to take this cash into account when negotiating your car's capitalized cost.

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CarMan@Edmunds · May 2005

No problem, munchmouth. Infiniti Financial Services' 12,000 miles per year residual values are 1% higher than its 15,000 miles per year residual values for the terms that you mentioned. See my previous post as to why the salesperson who you were speaking with was so willing to discount the S60 that you recently looked at.

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CarMan@Edmunds · May 2005

You're welcome, roadking1. Thank you for the additional information. OK, according to my calculations, if you were to lease a 2005.5 Audi A4 2.0T 2WD Sedan with an MSRP of $31,020 and a selling price of $30,000 through Audi Financial Services right now for 2 years with 12,000 miles per, its zero down, pre-tax monthly payment should be around $407.

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CarMan@Edmunds · May 2005

You're very welcome, andy2812. I am glad that you enjoy this discussion so much.

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CarMan@Edmunds · May 2005

Hey Henry. Consumers do not get the down payments that they make on leased vehicles back at lease-end. If you want to lower your monthly payment on the BMW Convertible that you are interested in you would be better off taking the money that you would have used as a down payment and making multiple security deposits with it. BMW Financial Services allows its lessees to make up to five additional security deposits on their vehicles, with each additional deposit lowering the money factor that is used to calculate their monthly payment by .00005. unlike with a down payment aka capitalized cost reduction, you will get your additional deposits back at lease-end.

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parrotheads · May 2005

Hello,
Sanity check on a lease proposal that I am contemplating:
MSRP: $34,335
Sale Price: $31,936 (supposedly dealer cost)
Residual: $20,257 (59%)
MF: .00137
Terms: 36 months/ 12,000 miles per year
Monthly payments of $450
Sign and drive -- no money down.

Sound good? Or too good to be true?

Many thanks for your input.

CarMan@Edmunds · May 2005

Greetings Zed. Let's take a look at the current lease programs for the trucks that you are interested in. If you were to lease a 2005 Honda Pilot EX without leather or navigation through American Honda Finance Corp. right now for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00137 and a solid 62%, respectively. If you were to lease a 2005 Toyota Highlander AWD (non-Limited) through Toyota Financial Services right now for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00120 and 64%, respectively. You are right, Toyota Financial Services' residual value percentages are based upon vehicles base MSRPs, without options. It has limits as to which and the cost of the options that can be residualized.

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CarMan@Edmunds · May 2005

Hi Peter. Here is the informaiton that you are looking for. If you were to lease a 2005 Lexus GX470 with navigation and rear entertainment through Lexus Financial Services right now for 36 months with 12,000 miles per year, its base lease money factor and residual value should be around .00235 and 57%, respectively. The money factor for an otherwise identical 39 month lease would be the same, but the residual value would drop to 54%

If you were to lease a 2005 Volvo XC90 V8 with navigation and rear entertainment through Volvo Finance right now for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00275 and 60%, respectively. The money factors for otherwise identical 39 and 42 month leases would be the same, but the residual values would be 57% and 55%, respectively.

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CarMan@Edmunds · May 2005

No problem, ewegleitner. Let me know if you have any other questions.

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burgermac · May 2005

I'm in Tennessee and have been quoted, on an X3 3.0i w/Automatic, Black (non-metallic paint) w/Terracotta Brown Leather Interior (part of premium package), Satellite Radio prep and heated seats (MSRP $) 39,370. They are willing to sell me the car for $37,700 (Cap cost before reductions). Money factor is .0012 and residual is 62% (10K miles per year). 36 Month Term, Monthly payment of $422.84. That pmt is with $2500 cap cost reduction. With out cap cost reduction, monthly pmt is $500.35. I am not sure that mine is the best deal either... it seems that there are a number of the same model on the lot and dealer acts put out when negiotiating the price becomes the topic of discussion. My question for anyone who has leased an X3 (or any BMW, for that matter), is this: They are insisting on an $825 lease acquisition cost. It is being rolled into the cap cost (as opposed to being one of the up front costs like tax, title, doc prep and security deposit) and appears to be in addition to all the other up front costs which are not rolled into the cap cost. I have never seen this before- Car_Man, if you can enlighten me, is this fee standard or am I being ripped off. This is the only dealer for about 150 miles in any direction, so my thinking is that they feel that they can ask what they want since they have a somewhat captive audience. There's also a little bit of: "they're looking at a BMW, so they must be able to afford any fees we throw at them" going on as well. Please advise on this rogue $825 fee which makes no sense as far as lease arithmetic goes

dhamilton · May 2005

According to the Acura website they are lease supporting the RL for $599.00 a month. I'm sure that works out to a decent money factor and residual...Dan Great car!!

nj00dstarz · May 2005

Hi, Need your advice on this lease option- if its worth or not?
Got a quote from a BMW dealer for a 2005 325i w/ C weather Pkg.. in MI
Car has around 7K miles (was a demo car).
Lease details:
$ 2500 down
15K miles/ year
Closing costs around $1000
3year/36 month lease for $ 400 a month.

Is it worth it or not?

Many thanks for your advise

dwynne · May 2005

Did you try BMW of Bowling Green? They are new and (I am told) very aggressive in pricing. Or I know a guy in Augusta, GA that will shoot you a good deal. I flew down and drove my 330i back and my boss did the same with his 540ia. Saved a LOT more than the cost of the ticket and my time.

Dennis

dwynne · May 2005

Depends on the state, but mine (for example) 7% state tax is due on the cap cost reduction and 7% is due on the monthly payment. Since the payment includes interest, you would sale a LITTLE by paying the money up front - but not much.

I just about any state tax is due on either the purchase price of the car in full or the depreciation of the car (the sale price - residual) - so in either case paying or not paying a lot of money up front will not change your tax obligation.

It is generally agreed that paying a lot of money "down" on a lease is not smart. If the car is stolen or totalled the insurance will pay of the lease and you lose your money.

Dennis

dwynne · May 2005

$30,976 is the invoice on the Pilot EX-L w/leather, so your price is about $1,000 too high. The dealer also gets 3% of the MSRP or $1,030.05 in hold back - so they will make more than $2k in profit if you sign at this price. A carsdirect.com no-haggle price in the Atlanta area (for example) shows $30,576 or $400 under invoice.

Does the $450 payment include tax or not? Without tax that makes your net cap cost about $33,900 or about $2k over your price. $595 of that would be the acquisition fee, then $450 for security deposit, and $450 for the first month's payment, then tags, taxes, dealer fees?

I would think you could do better.

Dennis

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