Lease Questions - Ask Here

cgreen1 · May 2005

Thanks, Dennis. I think I'm just going to turn the Passat in since I really only have less than 1 day to shop for a new lease before the 31st. I'd say they'll make a good profit on it selling it used- low miles and it still looks brand new. Oh well. I guess I left it a little too late to really think about my options.

I think I'm going for the Saab 9-3. Thanks very much for your help.

munchmouth · May 2005

Car_man,

What are 24, 36 & 39 month money factors and residual values for an automatic 2005 Crossfire Limited with 12,000 miles per year.

Is Chrysler providing any lease support other than the current money incentives? If so, can I use both the money incentive and lease support or am I limited to one?

Just in case you need to know, I'm in Florida.

Thank you!

dwynne · May 2005

Another sweet part of the lease - turn it in a walk away with none of those trade in hassle. Makes new car shopping a whole lot easier. Let us know how you do with the 9-3.

Dennis

cgreen1 · May 2005

Definitely makes it easier!
Do you know the money factor and residual on a 15k mile, 36 mo lease for each of the 2005 VW Passat GLS 4Motion 1.8T and the 2005 Saab 9-3 Linear 2.0T?

dazdconfusd36 · May 2005

I am looking at getting a Jeep Liberty on a 2 year lease. I have checked into it slightly (and also from what my boyfriend has told me). I would get 24,000 miles for 2 years, and they have offered to pay off my loan that i currently have. I bought a car about 2 years ago and TOTALLY got ripped off (I have about $5500 more to pay on it) so I am a little bit leary of this whole process. My credit is, eh, okay, so I'm not sure that it would be beneficial for me to lease. My payments would be $229.00 a month. Help! what should i do?

kyfdx · May 2005

Just as a point of interest...

Local dealer here is advertising 39mo/39K Crossfire leases for $325/mo.+ tax, with only $325 + TTL due at signing..

This is for an approx. $35K '05 Crossfire Limited Coupe..

That is really a steal, if that is the car you are looking for..

regards,
kyfdx

munchmouth · May 2005

kyfdx,

Looks good! Did the ad mention how much in dealer incentives are included?

Thanks

CarMan@Edmunds · May 2005

No problem, fstlrnr. I know how you feel. I'm driving an automatic sedan instead of a manual coupe right now

. I don't know what the exact dealer invoice price is on the Accord that you are interested in, but you should look it up here at Edmunds.com before entering into any serious negotiations. You can do so in the New Vehicle Pricing section of this site. This is an important number to know because the market for Accords is fairly soft right now. This fact, combined with the dealer cash that Honda is currently providing on the Accord makes them pretty easily had for invoice or a little less.

Let's work up a sample lease payment on a typical Accord EX based upon dealer invoice as its selling price. According to my calculations, if you were to lease a 2005 Honda Accord EX V6 Sedan without navigation with an MSRP of $27,365 and a selling price of $24,674 through American Honda Finance Corp. right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $334. As you can see, you should be able to do better than $399 per month before tax.

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CarMan@Edmunds · May 2005

Hey jmcd0. You're right, I believe that Subaru's captive finance company switched from offering leases to offering balloon notes to New York residents. To the best of my knowledge, consumers who lease vehicles when they live outside New York and then move there do not have to pay any additional charges. Banks certainly cannot prevent you from moving there.

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CarMan@Edmunds · May 2005

You're welcome, cyman14. Yes, the $3,500 total in cash incentives on leases apply to any length lease of a 2005 Saab 9-3 Sedan through Saab Financial Services Corp. Its current 36 month, 15,000 miles per year base lease money factor and residual value for the 2005 Saab 9-3 Arc Sedan should be .00049 and 48%, respectively. Its 12,000 miles per year residual value for this term would be 1% higher.

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CarMan@Edmunds · May 2005

No problem, jitendra1. I have not seen Audi financial Services' 42 month lease program for this car, but I have seen its 39 month program. If you were to lease a 2005 Audi A8L through Audi Financial Services right now for 39 months with 12,000 miles per year, its base lease money factor and residual value should be .00125 and 52%, respectively.

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dwynne · May 2005

car_man has posted both of these recently, he said this about the (or a) Passat:

2005 Volkswagen Passat GLS 1.8T Sedan. If you were to lease this car through VW Credit right now for 2 years with 15,000 miles per, its base lease money factor and residual value should be .00003 and 53%, respectively. The numbers for an otherwise identical 3 year lease of this car should be .00003 and 46%. When negotiating your lease on the '05 Passat, keep in mind that Volkswagen is providing $750 dealer cash on leases of this car through VW Credit. This money will help you to negotiate an attractive capitalized cost.

I think he just posted numbers on the 9-3, if not I saw 0.00014 and 48% (pretty weak) for a 9-3 linear last month. I think these is customer and/or dealer cash on this as well.

Dennis

CarMan@Edmunds · May 2005

I should be able to give you an idea of what this car's current lease program is like, ej1111. However, in order for me to do so, I need you to tell me how long you want to lease it for and how many miles per year you need to be able to drive it.

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CarMan@Edmunds · May 2005

You're welcome, kdg. The selling price that you were quoted for this truck looks very attractive. It appears to be right around its dealer invoice price. Using the prices that you mentioned in your posts, an MSRP of $40,295 and a selling price of $36,095, I estimate that a 2005 Acura MDX Touring without navigation or the DVD system should have 36 month, 12,000 miles per year zero down, pre-tax monthly payment of around $428. Notice that the payment that I just calculated assumes that you made no capitalized cost reduction. With a cap cost reduction of $1,169, which I advise against, my estimated payment would drop to around $394 with a security deposit. If you were to have either your truck's security deposit or $595 acquisition fee waived, your monthly payment would be slightly higher.

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CarMan@Edmunds · May 2005

Hey andre1. I'm glad to hear that Cadillac dealers are starting to discount the CTS-V fairly significantly. It is a very nice car. Before I tell you about its current lease program, I need to let you know that General Motors Acceptance Corp.'s, GM's captive finance company, lease program is a little different than most banks' programs. Instead of money factors, it publishes what are known as lease rates for vehicles. You can convert its lease rates into approximate money factor equivalents by dividing them by 2400. OK, if you were to lease a 2005 Cadillac CTS-V through GMAC right now for 36 months with 15,000 miles per year, its base lease rate and residual value should be 3.95% and 53%. The lease rate for an otherwise identical lease with only 12,000 miles per year would be the same, but the residual value would be 3% higher. I do not believe that GMAC is currently offering 39 month leases on this model. When negotiating your lease on this car, keep in mind that GM is providing $2,500 lease cash plus an additional 41,000 bonus cash, $3,500 total, on it this month. This money will help you to negotiate an attractive capitalized cost.

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CarMan@Edmunds · May 2005

Kd270, you never mentioned the selling price or MSRP of the vehicle 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 vehicle'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 FX35 that you are interested in for you if you let me know what these numbers are.

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kyfdx · May 2005

Nope.... I'm assuming that is with all incentives and rebates signed over to the dealer, though...

I doubt there would be much left, as far as further discounts.. They are selling $35K '04 Crossfires for $23,250.. If I wanted to buy one, that is the way I would go...

regards,
kyfdx

CarMan@Edmunds · May 2005

Greetings tcg. Whether you should wait to lease a new BMW 330i or get one now depends upon how badly you need a new car at this time. People who have to be the first ones on their block to get a new model are always going to pay more for it than people who wait several months to get one. Eventually the initial hype surrounding the redesigned 3-Series will die down some, dealers will begin providing larger discounts on them, and BMW will increase its lease support on them. Just how long that will take is anyone's guess, but it will at least be another couple of months.

If you plan on trading in a car that you have equity in when you lease your new BMW, you would be better off having the dealer that you trade it in to cut you a check for it rather than using your equity as a capitalized cost reduction on your lease. 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 new 3-Series would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all.

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CarMan@Edmunds · May 2005

Hi michael10. Ford Credit's lease program often varies depending upon what part of the country one is in. I will be able to give you a more accurate idea of what this truck's current lease program is like if you let me know what state you are in.

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CarMan@Edmunds · May 2005

Hello reechz. According to the latest information that I have seen, American Honda Finance Corp.'s base lease money factor and residual value for a 36 month, 15,000 miles per year lease of a 2005 Accord LX Sedan with the 4-cylinder engine should be .00031 and 52%, respectively.

I am having a difficult time evaluating your deal because 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

Greetings and salutations inbjce. I'm glad that you find this discussion so informative. Let's work up a sample lease payment on the car that you are considering for you so that we can evaluate the payment that you were quoted. According to my calculations, if you were to lease a 2005 Lexus ES 330 without navigation with an MSRP of $37,709 and a selling price of $35,000 through Lexus Financial Services right now for 48 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $435. I used a money factor of .00155 and a residual value of 48% to arrive at this payment. Exactly how good your deal is depends upon how much more equity than $3,800 you believe that you have in your trade.

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cgreen1 · May 2005

Thanks very much, Dennis. That's very helpful.

CarMan@Edmunds · May 2005

Hi there John. For some reason, Jaguar is no longer providing lease support on the 2005 X-Type 2.5L. It replaced all of its lease support on this car with $4,500 dealer cash. If you were to lease one through Jaguar Credit right now you would have to use its standard lease program, which I have not sen lately but is probably not very good. You may be better off using the dealer cash to negotiate an attractive selling price and then leasing this car through an independent bank.

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CarMan@Edmunds · May 2005

Hey Keith. I would be more than happy to calculate a sample lease payment on this car for you. Thank you for providing all of the necessary information to do so. According to my calculations, if you were to lease a 2005 Infiniti G35 Coupe with an MSRP of $34,310 and a selling price of $31,900 through Infiniti Financial Services right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $419. The payment for an otherwise identical 39 month lease would be around $404.

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CarMan@Edmunds · May 2005

Hi TrickyDick. I actually do need a little more informaiton to calculate a lease payment on this truck for you, namely its full MSRP. Just from looking at the selling price of this truck, I can tell you that it appears as though you are being charged a little over $1,000 over invoice for this truck. So depending upon the price of the running boards, this truck's actual price is probably around $500 to or so over invoice. $500 over invoice is a reasonable price for an '05 MDX, but you are in an ultra-competitive market, so shopping probably isn't a bad idea. Anyhow, if you let me know this truck's full MSRP, I'll work up a lease payment on it for you and we can compare what I come up with to what you were quoted.

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cdlow · May 2005

I'm looking at a 2005 Toyota Tacoma. The dealer offered $25,433. Do they take the whole price into consideration when coming up with a lease payment? I heard the monthly payment should be based on about 50% on the price of the vehicle.
I was offered $375/mo for 60 mos. 15,000 miles. I did the calculations using the "Basic Lease Calculator" and came up with $363....pretty darn close. I thought maybe the monthly lease payment would be lower because it is a lease. There wasn't much of a difference between leasing and buying. Any comments would be appreciated. Thanks!

CarMan@Edmunds · May 2005

I commend you for being a member of the armed services and appreciate all that you and your fellow soldiers are doing for all of us, gadarman. The exact policy on what happens to a leased vehicle if a member of the military is deployed overseas probably varies from bank to bank. You probably should contact the bank that you are planning on leasing your new car or truck through directly to find out their exact policy on this matter.

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CarMan@Edmunds · May 2005

Thanks for the additional information, Mike. A $2,000 discount on this car (I personally think that it is beautiful btw) sounds reasonable to me. The lease program that you were quoted looks a lot different than BMW Financial Services' lease program for this car. This is fine as long as it provides you with a more attractive payment. Let's work up sample leases on this car using both and see which one is better. According to my calculations, if you were to lease a 2005 BMW 645Ci with an MSRP of $77,000 and a selling price of $75,000 for 48 months with 15,000 miles per year using a money factor of .00173 and a residual value of 46%, its zero down, pre-tax monthly payment should be around $1,016. The payment for an otherwise identical lease through BMW Financial Services using a factor of .00270 and a residual of 55% should be around $998. As you can see, it appears as though BMW FS' higher residual actually makes its lease program better than the one that is being used to calculate your car's payment. You may want to ask your dealer about this.

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CarMan@Edmunds · May 2005

Hpowders, BMW Financial Services does indeed have a multiple security deposit program. It allows consumers to make up to five additional deposits on their leased vehicle, with each additional deposit providing a reduction of .00005 in the money factor that is being used to calculate their car's monthly payment.

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CarMan@Edmunds · May 2005

Congratulations on your new Pilot Zed. Thanks for taking the time to stop back and let us all know how everything turned out. Enjoy!

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CarMan@Edmunds · May 2005

No problem David D. Many banks have increased the acquisition fee that they charge on leased vehicles in the state of New York, or have completely stopped leasing vehicles on that state, because of the vicarious liability laws that exist there. Basically how leasing works is that the bank's name that you are leasing your vehicle through is on its title. The silly laws that are in effect in New York, actually make it possible for banks to be sued if a leased vehicle is involved in an accident because their name is on the title. Some banks jack up their acquisition fees to make up for this additional liability, while others try to steer consumers towards balloon noted. Balloon notes are similar to leases in that they provide consumers with low monthly payments and the option to purchase their vehicles at a pre-determined price after a certain period of time, however with balloon notes consumers' names are on vehicles' titles rather than banks'. There is nothing wrong with balloon notes, especially if one would be less expensive than a lease at this time on the vehicle that you are interested in. I do not believe that banks provide acquisition fee refunds on vehicles that are totaled for insurance purposes, so I suppose that one could look at them in similar light as capitalized cost reductions.

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trickydick · May 2005

Thanks Car_Man. The MSRP for the MDX Touring is $40,295. It's been tough to find Acura's price for the running boards. I've received offers of $482, $695, and $800 so there appears to be some wiggle room there. For your purposes, let's assume I can negotiate the $482 price with the dealer I choose.

Thanks...I honestly don't know how you have the time to answer all of these requests, but certainly appreciate the service!

TrickyDick

CarMan@Edmunds · May 2005

Hi leaseshopper. Despite the fact that the individual who contacted you claims to deal directly with vehicle manufacturers, auto brokers have to go through dealers to get vehicles, just like everyone else. In my opinion, if you do thorough research and shop around you should get exactly the same deal as the individual who contacted you and save yourself the $299 fee.

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CarMan@Edmunds · May 2005

Hi reechz. 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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davidd3 · May 2005

Thanks Car_Man. Your information and advice is highly appreciated.

David D

huma2 · May 2005

i am working a lease for a 2005 chrysler pacifica touring. msrp is 31,340. invoice $29,318 with $3,000 in rebates. the manager told me he is selling the car for $24,998 residual is 46% money factor is .00082. total lease payment is 353.51 per month (tax included)no money down. ( just first payment) i am holding out for $315 per month (tax included)
is their offer good, he is telling me he cannot go any lower he will be losing $2500. please let me know your thoughts. many thanks paul

kd270 · May 2005

Dear car_man the selling price is 40.000 and the MSRP is 42000 the destination charge is $ 690

boomguy · May 2005

Hi Car-man I'm a1st timer on this...I'd like to lease a 2005 300i.....can get it for $4000.00 below INV.........$35,730.00..( prem., xenon , heated seats, auto.) I need 20,000 miles per year on lease........ whats a ball park # I'd be paying? I live in NY 8.25 tax......min. $ down. great credit rating....

ribbonking · May 2005

Car_man,

You have been kind enough to help me twice before with leasing questions and I am considering another vehicle, the Lexus LS430. There appear to be some strong incentives on this vehicle now. List price for the car is $62,064 and cap cost would be $55,000. Term is 36 months at 15,000 miles annually. Located in Southern California. If you know the current money factors and residuals and would be willing to calculate a monthly payment I would appreciate it. Thanks in advance for your help.

dmc1 · May 2005

I too am in NY and looking at a lease proposal from the dealer. I am interested in a InfinitiG35 X. The purchase price quoted to me was $32,612.12. I have asked for 25,000miles/year for 36 months. The offer came back with a monthly payment of $535.26/month for 39 months with $2505 down. Am I getting a good deal? Not sure if you need it but the tax rate in my county is 8.25%.

Thanks

bobodreadrasta · May 2005

Wow this is a great service.

I am looking at bmw x5 3.0 with premium, nav, rear climate, auto and xenon. The dealers are offering 6500 down with 499 per month and 10k mls per year. Is this a good deal. They are willing to sell for about 47.5K.

Also looking at a xc90 with similar options. Will register the car in Maryland of Florida.

sharkala · May 2005

Hi again,
I am still shopping for the perfect lease price for a 2005 Nissan xterra SE, with splash guards, cargo cover, auto trans, 4 wheel drive, bumper guards-the MSRP is $28,800 and the selling price is $26,760-
Can you give me a lease price for 39months/12K a year
I only want to put $1000 down including tax , tags and 1st month-
thanks

cidchris · May 2005

I am very close to finalizing this deal in MA. Due to color combination wanted, the dealer will have to order. I think if I would choose a unit on their lot they would be even more aggressive.

'05 X5 3.0 - Premium, Nav, Rear Climate, Auto, Cold Weather, Htd Wheel

MSRP 50370
Cap 47970
Residual 60%
MF .00140 (acquisition fee of $825 waived)
Cap Reduction $0
Out of pocket $1649 (1st, sec, tags, etc)
$635/month incl MA 5% taxes

tkcane · May 2005

Carman - thanks for all your help. I am deciding whether or not to lease or buy my new Escalade. I have GMS pricing so the sale price on the ESV with a 65,000 sticker will be around 53,850 and the platinum with a 71,500 sticker will be about 59,500 .

What are the current residuals and money factors. Also, one dealer is telling me that they cant procide all of the incentived on a lease deal...is this b.s. or accurate.

thanks

tk :confuse:

ikramerica · May 2005

YMMV = Your Mileage May Vary

It's not my name. My name is Mike

CarMan@Edmunds · May 2005

Hi candlmeyer. You aren't going to receive a refund for your your unused miles, so you are smart to consider purchasing your leased vehicle. Of course, the fact that it has low mileage does not guarantee that it will be worth more than its purchase option price, but it doesn't hurt. In order to determine whether you should purchase your vehicle at the end of your lease, you need to compare its purchase price to its value on the open market at this time. Even though it states your car or truck's purchase option price on your lease contract, you should place a call to the bank that you are leasing it through just to make sure that you have the correct figure. When you do so, it never hurts to try to haggle with them. Some banks will negotiate the lease-end purchase prices of vehicles. If your initial contact at your bank is not willing to lower your vehicle's purchase price, you may have better luck if you work your way up the ladder to a manager. There is a good chance that they will not lower your vehicle's price, more often than not they will not, but you don't have anything to lose by asking. When speaking with them, don't give them the impression that you are way under your allotted mileage. This fact makes your van more attractive to them and less likely to lower its price.

As I said earlier, 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.

As you mentioned, another option would be to see if the dealer that you plan on getting your next vehicle from will give you more than your van's purchase option price for it as a trade.

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CarMan@Edmunds · May 2005

Hi tom43. You never mentioned the MSRP of the car that you are interested in leasing. This is an 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 the MSRP of the car that you want to lease it is difficult to tell how much of a discount you are being given on it. The second reason is that one needs the MSRP of the vehicle that they want to lease is that it is necessary 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 its MSRP is.

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CarMan@Edmunds · May 2005

You're welcome 3boy. It is difficult to say how long it will take before BMW dealers begin to start discounting the new 3-Series more. Perhaps prices will begin to drop by the fall, or perhaps it won't happen until the winter. I don't think waiting another month or two will make much of a difference in this car's selling price, but you never know.

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CarMan@Edmunds · May 2005

Hi mpklaf. According to the latest information that I have seen, if you were to lease a 2005 Acura TL without navigation prior to May 31st for 4 years with 15,000 miles per, its base lease money factor and residual value should be .00220 and 49%, respectively.

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CarMan@Edmunds · May 2005

Hello hpowders. According to the latest information that I have seen, if you were to lease a 2006 BMW 530i through BMW Financial Services for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00250 and 62%, respectively. If you are interested in the '06 530i, you may want to consider dropping down to the 525i. While it has a little less equipment and is tuned slightly differently, these two cars have exactly the same 5.3L engines. For some reason, BMW continued to call one the 525 even though it is no longer an accurate description.

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