Lease Questions - Ask Here

jasmith52 · May 2005

Just an observation on the 9-2X lease. were you aware that there are a total of $7000 in various rebate incentives this month on the 9-2X Aero, but only if you PURCHASE the car. With that in mind lets look at what a 60 month purchase using credit union rates would be:

Base priice of $27645 (MSRP) on 9-2X Aero
Negotiated discount of say $1500 ==> net price of $26145
add tax and license of say 10 percent ==> $28759
reduce by your down payment ($1550) ==> $27209
less rebates ($7000) ==> $20209

==> total financed price ($20209)

at credit union rates (around 4.0 % APR) your 60 month payment including upfront sales taxes is around $374/month.

Now don't you think that is a better car (The Aero not the Linear) at a better monthly payment. If you get tired of the car after 24 months then just sell it. You should only owe about $ $12500 and based on your residual numbers the car should be worth around $15000 at that time. Just maybe you could drive a better car and come out maybe $2500 better (than a lease) after 24 months.

By the way if you must have the lesser Linear model, the incentives are $1500 less on a purchase. In that case the numbers aren't quite as favorable.

- Just a thought to keep in mind

cadderly · May 2005

Hi there,
Thanks to all the mod's for the invaluble info!!

I'm looking to get a G35 6MT coupe with premium only on lease (36-48 mo, whichever is best deal) with no money down, allowance of 12K miles/year.

Questions:
What are the money factors and residual values for this car?
What can I expect deal-wise? It looks like this should be available 500-1000 $ over invoice of 32600?

Thanks!

ct1211 · May 2005

Hi Carman the hunt goes on....can you supply the money factor and residuals for the Infiniti M35 and the A6 3.0 for 24 & 36 month terms with 15K Miles? I read in an earlier post of yours there might be a new set of numbers for the A6 aftet May 16th.

As always thanks so much for your efforts!!

dwynne · May 2005

I think if you run the numbers for this 400h VS the RX330 you would find that you will not be driving this truck enough to EVER pay for the difference in fuel savings. It might take 3x or more the miles allowed on the lease to just break even.

I would leave it, for sure on a lease - and probably on a purchase. Just too much money at MSRP (or over) VS a similar truck for less than MSRP.

Dennis

bdr127 · May 2005

I just moved to Winston-Salem, North Carolina, and I'm trying to figure out their leasing fees. The state website seems to indicate that there is no sales tax on leases but there is a "Highway Use Tax." I am familiar with the way Pennsylvania works (6% sales tax + 3% use tax = 9% total tax), but NC seems to do things differently..... Could anyone with some knowledge on this part of the country help me out please? Thanks!

vector6 · May 2005

Car_Man-

You broke out some lease figures for me which some dealers have responded favorably to, and others have ignored. Their loss. One last question: When you say "zero down" I assume you really mean "zero down" and not the dealer "zero down" which sometimes includes a drive-off fee, a coffee-in-styrofoam-cups fee, etc.

I'm heading into a dealership later this week to drive the XC90 and 70, and, armed with your info, plan on not shedding too much blood.

Thanks again for the help.

kyfdx · May 2005

$49K borrowed for 60 months at 4.9%...

Payment = $923/mo.

I would do that before leasing at $853/mo..

At the end of three years, you would only owe $21K.. Even taking into account the extra $2500 in monthly payments over the three years, you would be way ahead, I would think..

mcho3 · May 2005

:shades: can any one help me if you have bmw 645 or know of a person who has one and how much they got it for. thanks.. :shades:

cyninhi · May 2005

Is this a good deal?

Honda Odyssey EX, $28,710 is the MSRP and $28,210 is the Internet pricing. The residual percentage is set by American Honda and is 52% for 12,000 annual miles and $50% for 15,000. I would pay around $460 for 15,000 miles for four years.

I live on Oahu, Hawaii (Honolulu).

Thanks,
Cyn in HI

timoth31 · May 2005

Looks like I'm in the market for a new car. For a number of reasons leasing looks like the way to go for me. Just one thing I'm worried about:

The last car I leased got smashed up by a college kid in a Budget truck as it was parked on the street. Budget (the kid's insurer) paid for my repairs, but I had to sue for diminished value (this was in DC). The judge basically said justice was on my side, but the law wasn't. So I settled for a pittance. I have a fixed trade-in value at lease end, but will take a hefty hit on resale if I unload the car before that.

For this and other reasons, I moved out of DC. The drawback of living with incompetent government/bad laws finally trumped my taste for city life.

So before I lease a car in Maryland, two questions: (a) is the typical lease contract here written so that I can turn the car in for the named residual amount at lease end, even if it gets smashed up but fixed at a reputable shop, and (b) would Maryland law have allowed me as lessee of the car to sue the kid in the Budget truck for diminished value? (If any of you know a lawyer or dealer who could answer this question, I'd appreciate the info).

Thanks to one and all in advance for any useful information on this question.

Tim

CarMan@Edmunds · May 2005

No problem, conanc. Some consumers have success getting good deals on new vehicles by shopping over the Internet, but nothing seems to work as well as the good old fashioned way of walking into a dealer and negotiating face to face. Many dealers are reluctant to give firm price quoted in writing via e-mail because they know that 99% of the consumers out there will just turn around and shop their price around with a ton of other dealers.

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CarMan@Edmunds · May 2005

Hey danf1. Are you asking what Chrysler Financial's residual values for the 2005 Dodge Magnum are? If so, I need to know what term and mileage allowance you are interested in. If not, what model are you asking about?

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CarMan@Edmunds · May 2005

Hey shackman. To figure out what sort of lease payment you can expect on the vehicle that you are interested in, take its money factor and residual value, along with its full MSRP and selling price and plug them into the following lease calculator: Basic Lease Calculator. Vehicles' residual value percentages are used to calculate their lease-end purchase prices. Multiply the residual value for the vehicle that you are leasing times its full MSRP, including destination charges any any options that are allowed to be residualized, to find out your purchase option price. The only time that your car or truck's lease-end purchase option price would be different than this number is if the bank that you are leasing it through is willing to negotiate its purchase price with you. It is in consumers' best interest to lease through manufacturers' captive finance companies when there is lease support available on the vehicle that they want. Since Lexus is not currently providing any sort of support on the 400h, there is a chance that an independent bank has a better lease program on it than Lexus Financial Services does at this time.

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CarMan@Edmunds · May 2005

You're welcome, apress12. It's difficult to say whether the difference in money factors makes up for the way that Toyota Financial Services calculates vehicles residual values.

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CarMan@Edmunds · May 2005

No problem, nj00dstarz. I was confused by the "nj" part of your username

. I believe that Detroit is in Toyota's Cincinnati region. Toyota Financial Services' lease money factors and residual values for the 2005 4Runner should be the same in the Cinci region as they are in the New York region.

Most dealers probably will not care what sort of selling price you were quoted from Web sites like CarsDirect. Rather than using a computer printout to shop around, you would be better off comparison shopping with a few Toyota dealers in your area and going with the one that offers you the most attractive price, provided that you feel comfortable with them.

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CarMan@Edmunds · May 2005

Hey a6_to_m35. In order to give you an idea of what the lease programs are like on the vehicles that you are interested in, I need you to be more specific about the trim levels that you want, i.e. a 2005 Audi A4 1.8T Cabriolet, a A4 3.0L Cabriolet 2WD, etc...

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CarMan@Edmunds · May 2005

I believe that I already answered your questions, vector6. Let me know if you can't find my response and I will try to direct you to them or answer them for you again.

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CarMan@Edmunds · May 2005

Hi lucas2. 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.

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CarMan@Edmunds · May 2005

Yes, mnwild18, banks' lease money factors are based upon consumers' credit scores. Banks either have one supported lease program that consumers either qualify for or don't or they have tiered lease money factors that vary a little depending upon which one of its credit tiers you qualify for. With a credit score of over 700, you should qualify for most banks' top credit tiers. Yes, most leases today, including those through Chrysler Financial, are closed-end leases.

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CarMan@Edmunds · May 2005

Hello flie713. I am sorry to say that it is usually fairly expensive to get out of leases well before their scheduled end dates. In order to do so, you need to purchase the vehicle that you are currently leasing from the bank that you are leasing it through. It often turns out that it costs more to do so than your vehicle is worth on the open market. Furthermore, many banks expect consumers who end their leases early to still make all, or at least the depreciation portion of their remaining lease payments. As you can see, this can get very expensive.

You can determine approximately how much it will cost you to get out of your current lease by comparing its purchase price to its value on the open market at this time. You should place a call to the bank that you are leasing your vehicle through to find out its exact price. Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". One of our most knowledgeable community members, Terry, frequents that discussion and he is often kind enough to give community members who give him an accurate description of their vehicles with his opinion on their value. Don't forget to check to see if you are still on the hook for your remaining lease payments. The difference between your leased vehicle's current value and how much it will cost you to buy it plus any remaining lease payments that you are obligated to pay will equal the cost of getting out of your lease right now. You may find that you are better off waiting until you are closer to the scheduled end of your lease to get another new vehicle.

Mercedes-Benz is running an early lease termination program for current C-Class lessees who lease a new C-, CLK-, or S-Class, but even this program only waives three remaining lease payments.

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adi4runner · May 2005

Do you know the money factor/residual on the new VW lease for a Touareg (v6 base, in jacksonville FL)? Also, since I qualify for the VW supplier purchase progam, which claims I get the vehicle at dealer invoice, what would the lease look like then?

thanks

CarMan@Edmunds · May 2005

Hi vector6. It is true that most manufacturers' customer cash incentives cannot be combined with their special lease programs. A number of manufacturers have special lease cash incentives on vehicles that can be used in conjunction with special lease money factors, but Volvo does not have them at this time in your area on the models that you are considering. As a result, if you were to pay cash for or finance these vehicles you would be able to take advantage of the dealer cash that is available on them, but if you were to lease them through Volvo finance you would not. You need to negotiate the lowest possible selling prices for these vehicles, without the cash incentives, and then have the dealer that you are working with calculate sample lease payments on them. To get an idea of how much you should pay for these vehicles, stop by the following discussions: "Volvo XC70/V70: Prices Paid & Buying Experience" and "Volvo XC90: Prices Paid & Buying Experience".

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CarMan@Edmunds · May 2005

Paulyballs, on-line lease calculators, such as the one that is available on this site, do not have access to automakers' actual lease money factors and residual values. If they provide them, they are usually an industry average money factor and the residual values that are published by a company called ALG, which most regard as the industry standard for unsupported residual value data. Using these numbers, rather than banks' actual lease programs, will result in a different lease payment.

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CarMan@Edmunds · May 2005

Hello mcho3. The Mercedes-Benz CLK500 and the BMW 645Ci are both very nice cars. I'm jealous

. You never mentioned the selling price or MSRP of the cars 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 these cars' selling prices in relation to their MSRPs you don't know how much of a discount you are getting on them. The second reason is that one needs the selling price and MSRP, including the destination charge, of vehicles to calculate their lease payments. I would be more than happy to work up a sample lease payment on the cars that you are interested in for you if you let me know what these numbers are.

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leaseshopper · May 2005

I am looking to lease a BMW 325i and wondered what a good $ amount above invoice is a reasonable offer? Also, my credit score is 785 so what would be a good money factor to shoot for? Because the 06 has been out a very short time, Edmunds doesn't offer a TMV for this model at this time (actually they just show the MSRP for the TMV). Is it true that the residual value should be around 59%? Is that of the purchase price or the MSRP? I've never leased before so this is a new process for me. All of the info on the website has been very helpful. Thanks!

CarMan@Edmunds · May 2005

Hi kd270. 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 Infiniti that you want 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 are having trouble getting approved to lease the car that you want, you would be better off financing it and making a large down payment.

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CarMan@Edmunds · May 2005

Hi Robert. I know how you feel, computers certainly can be frustrating sometimes

. You can recreate the Excel file that you had by using the formula that is outlined in the following article: Calculate Your Own Lease Payment or you can just use the lease calculator that is available here at Edmunds.com: Basic Lease Calculator.

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CarMan@Edmunds · May 2005

Hi karilyn. I am not personally all that familiar with what the market is like for the Volkswagen Touareg in your area, but a base Touareg V8 has a $4,000 spread between its full MSRP and dealer invoice prices. It appears as though you received a discount of $1,700 on your truck. There was still some room there, but I don't know if dealers in your area would have been willing to go lower. You may want to stop by the following discussion here at Edmunds.com: "Volkswagen Touareg: Prices Paid & Buying Experience". There you will find other community members who have either recently purchased similar trucks or who are in the market for one. I can calculate a sample lease payment on this truck for you using the prices that you paid and VW Credit's published lease program to make sure that your payment looks OK. According to my calculations, if you were to lease a 2005 VW Touareg V8 with an MSRP of $42,820 and a selling price of $41,119 through VW Credit right now for 4 years with 12,000 miles per, your zero down, pre-tax monthly payment should be around $496. A $1,000 down payment would lower this vehicle's lease payment to around $474. As you can see, your payment is much better than this. I'm not sure why this is the case, perhaps your lease is being run through a bank other than VW Credit.

You originally agreed to give them your trade in this deal. your dealer may insist upon you getting your car out of impound and giving it to them. If it was only worth $500 to them you may be able to convince them to just let you give them a check for $500 though. $19 extra per month is way too much to pay for excess wear and tear insurance. Most manufacturers' captive finance companies, like VW Credit (if that is who your lease is through), are fairly lenient in their lease-end evaluations of vehicles for excess wear. If course, if your truck was keyed or has huge dents you would get charged for them, but in general I feel as though excess wear and tear coverage is not necessary.

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CarMan@Edmunds · May 2005

Hello miiames. Unfortunately, General Motors normal customer cash incentives cannot be used in conjunction with leases through its captive finance company, GMAC. GM is providing $1,000 lease cash plus an additional $1,000 bonus cash plus another $500 lease cash on Tahoe LS models this month that you can use to negotiate an attractive capitalized cost. It is providing $1,000 lease cash plus $1,000 bonus cash on the 2005 Chevrolet Suburban. In addition to these cash incentives, GM is providing additional incentives ($500 on the Tahoe and $1,000 on the Suburban) on trucks that have been on dealer lost since January 1st or earlier. If you can find a Tahoe or Suburban that has been around for a while you can get a better deal on it.

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hweaver · May 2005

MSRP for the EXL RES is $33820 + dest charge of $515
VS
Invoice
30,422 +515

I don't need any options really, simple things like floor mats and maybe a moonroof guard, I can pay those things extra if needed.
I currently have a great rate from AM HOnda finance Co (buy) 3.25%
I know I can get that again if I buy. I just like the payments of a lease.
You said you did not think that they would lease at invoice, why?
also, it's getting late in 05 to get an 05. Shouldn't I just wait for an 06??
what if there are changes/colors, etc that I wish I had, + isn't 1 yr newer worth more?
or in a lease, does it not matter? they just chaged a TON to 05' so I doubt that 06 will be different, but they will be coming out soon; should I wait? or will the .00137 MF not be there for new models???

thanks
heidi

fstlrnr · May 2005

I have been looking at a lease on a 2005 Nissan Titan LE Crew Cab (4X2). After an hour or so of negotiating I walked out after getting the impression that my salesperson (and the manager who he had sit with us) were dodging my questions regarding certain fees/costs and shifting around numbers. The deal left on the table was as follows:
48 month lease, 15K miles per; $3K down (I know you advise against it, but humor me please, I want to get the monthly down as low as possible)
MSRP $32,980; Price $29,333.42; Residual: 41% (lease-end value 13,521); Money Factr: .00164; Adjusted Cap Cost 28,044.69; Under 'Security Deposit: a 'Ttl.Ann. up/frt: $123.35 and Ttl In. up/frt: 466.49 (fees); and 'Total Adds/Cap': $550 (they did little to explain these last 3 items)
monthly payment (w/o tax): $370.73

I asked them how the price of $29,333.42 less my $3K down, ended back up at $28,044.69 and I got one answer out at the sales desk and a completely different one in the manager's office. The manager came back with a list of other fees including a $1,299 lease inception fee among others. We took the price down from the MSRP to 32, then 31, then 30,500, and then he started adjusting other numbers on the screen b/f we ended up at the $29,333.42. I may be just paranoid and over-cautious, but I've read enough to know that a lot of dealers are having trouble moving Titans and b/c the cost of maintenance (gas) will be so pricey, I want to get out of there with the best montly payment I can. Could they be playing w/ the numbers, and shouldn't these other 'fees' be negotiable? Please help...

a6_to_m35 · May 2005

The car is a A4 3.0 Quattro Cabrio, fully loaded....

Perhaps Chase or another bank has a better lease for me?

jmcd0 · May 2005

Car Man,

Thank you for your service! I have a few questions about leasing since I am new to the game:

Is the residual value a percentage of the MSRP or Invoice price?

Is gap insurance a good idea when leasing?

I am looking at leasing a Subaru Outback 2.5i automatic wagon. The dealership I went to is basing the lease price off invoice minus the $500 incentive. This sounds like a good deal, however, I see ads for Outbacks for even less. Should I negotiate or be happy with their offer? Second, I am looking to lease at the end of May or early June. Subaru currently has a $500 incentive on Outbacks, but do you think the incentives will get even better next month (and the money factor and residual value) when the new models arrive?

Thanks!

dwynne · May 2005

But $49k + sales tax (7% for me) would be $987 a month, so if the $853 included tax then a lot extra money over the course of the lease.

But as I said, no way would I lease a hybrid at this kind of premium over the non-hybrid price. You would NEVER save the money back in gas if you drove the truck for 200k miles or more - much less for the shorter term of the lease.

Dennis

dwynne · May 2005

I would think any lease turn in would not care if the car was repaired properly. I blame CarMax for all this "diminished value" stuff - no one wants to take a car with any paint or body work done on it. It is pretty hard for EVERY car to go through life untouched. Most body shops and your insurance company will guarantee the repair - so if at turn in time the lease bank inspector has a problem, then the body shop and insurance need to make it right.

Diminished value should never enter into a lease equation, and probably would not if you are trading your car in (that you own) to a dealer. Some private party sales might be hurt if they detect body work, then you might have a claim. Heck, a lot of cars are damaged in transit from the factory to the depot to the dealer and have to be "touched up". On plant tours they have employees who do nothing but touch up and fix mistakes in the paint and body. The notion of a "perfect car" is something that has little merit to me.

Dennis

kyfdx · May 2005

Agreed... too expensive for what you get.. but purely from a financial perspective, I'm still not going to lease for only a 14% discount to a purchase payment....

To put it in an average buyer's perspective... I woudn't lease at $344/mo. for three years, if I can purchase the same car at $400/mo. for five years..

I need at least a 25% discount from a purchase payment, before I consider leasing..

regards,
kyfdx

kyfdx · May 2005

This is the best part of a lease.. Our car sustained $9K of damage, just 11 months into the lease.. It was repaired properly at a good body shop...

At the end of the lease, passed inspection.. and not one hiccup.. The inspector said he could tell it had body work, but the repair was done properly, and that is all that is required...

Now, if I owned that car, and went to sell it.. I would have taken a hit....

regards,
kyfdx

dwynne · May 2005

Nice score, congrats.

0.00255 or 6.12% is the buy rate on the 2006 325i for 24 and 36 month leases. BMW dealers are notorious for marking up the money factor, so watch out. I think BMW is pass/fail, so everyone gets the same rate.

The 36/45k residual should be 61%, 63% for 36/36k, and 64% for 36/30k.

You might be better off going with a 3rd party lease. Looks like the ALG residual is 59% on the 36/36k, but with your score you should be able to do a 0.00210 MF or so. Run the numbers and see which is cheaper.

I have no idea what dealers are doing on the new 3s, but I bet close to full MSRP.

I would strongly advise against getting a new 3 now. BMWs have been pretty bad in reliability lately and the new 5 was just TERRIBLE. I would be afraid the new 3 will have the same track record. The old 3 is a proven car, has much better money factor, and has $1,500 to over $4,000 in dealer money on it. A MUCH better and safer deal.

Dennis

dwynne · May 2005

Residual is a percentage of MSRP including destination charge. So this is set, you negotiate the price for the car you want as low as you can. The lease payment is based on the difference between your low price and the residual - which does not change based on your price.

Check with your insurance agent/company - on mine if I tell them it is a lease then I get "gap" protection for free with the insurance. A lot of captive lease banks are including this in the lease contracts now as well - so there probably is no reason for you to pay extra for this.

"Who knows" what the incentives will do - could be more or less next month.

When I put in a Subaru Outback 2.5i in carsdirect.com with an ATL area ZIP code, the price comes up about $1,400 UNDER invoice - so sounds like you could do better on price as well.

Dennis

andre1 · May 2005

bdr127, I have a lease in NC. Basically, in NC you pay 3% on the lease payment for taxes. This is what they call the 'usage' tax. No state tax is assessed. Therefore, on a $500/month lease payment, you would pay an additional $15/month for the tax, making your payment $515/month. Also, you will still pay yearly personal property taxes on the vehicle, so it's no bargain for sure.

headly21 · May 2005

Living in Florida, my wife and I are financing a 2002 Toyota Camry and leasing a 2005 MINI Cooper S. Our insurance company told us that we need to carry the same liability coverage amounts for both cars (under the same policy). That means that the liability for the Camry will go up from 25/50/25 to 100/300/50, the same as the MINI.
Is this correct, and what insurance is necessary and unnecessary for the lease? For the MINI lease, I currently have the following:
Liability--100/300/50, PIP--10,000, Comp & Collision--"Actual Cash Value", and Loan Lease Payoff--"25% of the Actual Cash Value". No roadside assistance, as everything is covered under lease warranty and no uninsured/underinsured motorist coverage.
Same for the Camry, which is financed.
Thanks!
Ed

kyfdx · May 2005

1) Every insurance company will require that all vehicles in the household carry the same liability coverage..

2) You really need those higher limits.. If it takes leasing a car to prompt you to get the higher coverage, then so be it.. You were seriously under insured before..

The state minimums are a joke... Consider yourself lucky..

regards,
kyfdx

burgermac · May 2005

I am beginning to think the $825 is written stone. Even dealers from out of state are quoting it, and I'm having trouble getting anyone to deviate from the .0012 money factor ("Our finance department needs to make money too") Anyway, is there another source out there that can either confirm or deny that Tennessee lessees pay a marked up acquisition fee? I sent a lengthy request for bid via email to 18 dealers and only 3 have gotten back to me. Perhaps others are going to get around to it eventually, but I have to imagine that most dealers are interested in moving x3 3.0's becuase the new, more powerful engine is right around the corner. The saga continues...

jonnyjazz · May 2005

Thanks for the info! Will do! Can you get the cash with the lease?

There's $1,250 rebate on the SLs.

jonnyjazz · May 2005

Found the answer back in early May posts. $500 cash on SE lease. $12,50 SL can't apply.

Did all my testing on SL - now need to check SE vs. Accord.

Great info here! Thanks.

kyfdx · May 2005

The base acquisition fee is $625 for every state but NY.. Your dealers are marking it up..

This happens more often than not at BMW dealers... You really have to expand your search and get a competitive bid from elsewhere... Some dealers don't seem to care that they are losing business..

Shopping for BMWs can be frustrating..

regards,
kyfdx

jmcd0 · May 2005

Thanks Dennis!

paulyballs · May 2005

Hi CarMan,

Can you give me the residual value and money factor on these 2 cars for a 36 month lease?

2005 Volvo S40 T5 FWD - MSRP $30,833
Metallic Paint $475 $408 $428
MC502 Select Package
MC550 Climate Package
000438 Bi-Xenon Headlamps

Acura TSX MSRP $27,190
I guess they don't allow you to choose any options, although the Acura website has a few to choose from.

Thanks in advance.

dwynne · May 2005

You may be right.

I e-mailed the salesman I got my 330i from and my boss got his 540ia from (in 2000 and 2003) and while he can deal low on the price, even HIS finance department is marking up the lease numbers "a little".

I can pass along his contact info if you would like. It is possible you could save enough on the price of the truck that it would still be a good deal with inflated "a little" lease numbers.

Dennis

lucas2 · May 2005

Thanks Car_man.

Here's the deal. When I got this lease quote a few days ago, I was new to the leasing scene, so I just asked for a 39 mo lease w/ 20,000 miles on an M35x that had a list price of $51,830.

What I got from the dealer was $768/mo (including PA sales tax of 9%) + $1,584 down, which includes 1st mo plus $550 bank charge plus $266 for tags/processing.

subsequently, I educated myself on car leasing (how its calculated, etc.) and now know that I should start negotiating the deal just like a cash deal and then apply the residual and MF into the calculation to arrive at my lease price.

I'm ready to go back to the dealer ( and other dealers) and start that process, but I have one problem. I don't know the residual or money factor on a 39 mo, 20,000 mile lease.

My dealer represented to me that his MF was "around" .002. Thats fine, if he's telling the truth, but thats only part of the equation. I need the residual too. I want to be prepared when I go back in to negotiate.

MSRP is $51,830, Invoice is $47,088. I'd like to pay 48,588 (1,500 over invoice).

what would my lease payment be on a sales price of 48,588 on a 39 mo , 20,000 mi lease.

Oh also, if you know anything about PA sales tax on leases. My NJ dealer says 9% in PA. Is this right?

Thanks for your help Car_man.

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