Lease Questions - Ask Here

CarMan@Edmunds · June 2005

Pingpng50, I am not aware of any incentives that are available on the Lexus LS 430 at this time. The last time that I saw it, Lexus Financial Services' base lease money factor for consumers who qualify for its top credit tier and pay a security deposit was around .00240. You should not have to pay any more than the dealer's buy rate to lease the car that you are interested in. If they insist upon marking up your car's factor, you can always threaten to take your business elsewhere, though this may be a little harder to do on an ordered car. This model's residual value will vary depending upon how long you lease it for and how many miles per year you need to be able to drive it. If you tell me these two pieces of information, I should be able to give you an idea of what its residual is currently like.

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P.S. I'll take mint chocolate chip...or a cold beer, but not together. They're not a very good combination.

CarMan@Edmunds · June 2005

Ah ha, I just saw your subsequent post, Pingpng50. Lexus Financial Services' current 48 month, 15,000 miles per year residual value for a base 2005 LS 430, without the Custom Luxury, Ultra Luxury Packages or Navigation system, is 43%.

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CarMan@Edmunds · June 2005

Hey TrickyDick. You certainly have a very appropriate username considering the fact that the true identity of deep throat was just revealed. You're not him are you? The selling price that you were quoted for this truck looks fair to me. Using these prices, an MSRP of $40,845 ($40,295 + $550 for the running boards) and a selling price of ($36,355 + $482 for the running boards), I estimate that a 2005 Acura MDX Touring without the navigation or rear entertainment system options should have a three year, 12,000 miles per zero down, pre-tax monthly payment of around $442. With this deal, at lease signing you would have to pay your truck's first month's payment, its security deposit, AHFC's acquisition fee of $595, and any required state taxes or fees.

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CarMan@Edmunds · June 2005

Greetings shiva7. Banks that lease vehicles provide dealers with lists that contain residual value percentages for the vehicles that they lease. Vehicles' residual value percentages vary from bank to bank and depend upon how long you lease for and how many miles per year you need to be able to drive your vehicle. I would be happy to give you an idea of what American Honda FInance Corp.'s, Honda's captive finance company, residual values are like this month for the car that you are interested in if you let me know long a lease you want and what mileage allowance you need (15,000 miles per year or 12,000 miles per year).

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CarMan@Edmunds · June 2005

Hi conanc. Though you never mentioned how long you want to lease this car for or how many miles per year you need to be able to drive it, the lease program that you were quoted is in line with a 39 month, 12,000 miles per year lease of a 2005 Honda Accord LX 4-cylinder through American Honda FInance Corp. Correct me if I am wrong. Either way, the most important part of the lease program, the money factor that you were quoted, is right on the money for a lease of this model with its security deposit waived right now. The selling price that you were quoted looks very reasonable to me, but if there is a decent amount of competition in your area you might be able to grind out another couple hundred dollars if you really wanted to.

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CarMan@Edmunds · June 2005

Hello jmcclenahan. I mentioned the details of the 2005 Volvo XC90's lease program a few posts ago. Look there for the information that you need on that particular model. As far as the 2005 BMW X5 3.0i goes, if you were to lease one through BMW Financial Services this month for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00125 and 60%, respectively.

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CarMan@Edmunds · June 2005

Hello rorog. 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 Acura TSX that you are interested in for you if you let me know what these numbers are.

Don't worry about doing the 40,000 miles service on your leased Passat. As long as you have changed your car's oil on a semi-regular basis you should be fine. The things that VW Credit's inspector might hit you with excess wear and tear charges on include excessively worn tires, dents, scratches, and things of that nature.

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junelease · June 2005

Hello Carman,

I have a dealer in Newyork state quote $199/mo; $2000 down(this is the total out of pocket) for a 2005 Honda Accord LX. This is for a 36 month, 12000 miles/year lease. Do you think this is a fair deal?

I did get the quote from multiple dealers around my area but none of them come close to this. Even comparable models of Altima/Mazda6 are being quoted higher.

Yours as well as other members opinion would be appreciated..

Thanks

pauliep · June 2005

"$432 vs. $21.. You make the choice..

To be fair to the dealer, they are comparing making the security deposit to making a cap cost reduction... In that case, the cap cost reduction will knock about $20/mo. off the payment vs. the $12/mo. you save making the security deposit. What they conveniently ignore is that you get the security deposit returned at the end of the lease...
"

______

Yeah, I made the same mistake trying to figure it out. What is the deposit security for, and what are the chances they try to keep it?

Btw, another dealer just "offered" me a .0015 money factor with security deposit, a $20 per month markup. Now I understand leasing, thanks to you folks on this forum. It's so confusing, the average buyers are probably giving the dealers a lot of extra profit.

Thanks again

pingpng50 · June 2005

I do have the navigation system car man, it comes with the modern package. please tell me the residual hasnt dropped to 43%. thank you. would you like fresh strawberries with your ice cream?

pipesaez · June 2005

I'm trying to narrow down my choice between the Volvo S60R and the G35 Sedan. Do you have the 15,0000 mile numbers for the Volvo? I got the numbers for the G35 from an earlier post..., I guessing the coupe and sedan numbers are the same?

Thanks for the help

andy2812 · June 2005

Car_man:

Thanks again for the info you provided. This will be very helpful and I'll let you know how I make out at the end of the month when my current lease is up. I notice that there are several adds in the newspaper for the G35x with a 27 month lease. Are you aware of any special promotions that Infiniti has on a 27 month lease and if so, do you have the MF and Residual for 27 months.

andy2812

conanc · June 2005

Hi Car_man,

Thanks for the information. This is such a great service that you are doing and it is very much appreciated! The Honday Accord LX lease was for 36 months and 36,000 miles. Does that change anything? We live in RI if that matters. We are looking at this lease, as well as a Saab lease at this time.

Thanks!

gperr · June 2005

Car_man,

Am I correct that 12k miles adds 1% to residual % you previously posted for G35x.

Is there any difference in MF or Res for adding Navigation to G35x.?

Thanks

gperr

gi2indking · June 2005

Hey Car_man... I saw a pretty attractive looking lease deal for the 2005 Honda S2000 being advertised by Honda... here is what it states:

2005 S2000 Special AHFC Special Featured $299 Lease Terms

* $299.00 per month for 36 months.
* $2,499.00 capitalized cost reduction.
* $3,693.00 total due at lease signing (includes first months payment, security deposit, capitalized cost reduction and AHFC upfront acquisition fee; total net capitalized cost and base monthly payment does not include tax, license, registration, options and the like).

Now, it says that it is not available in NY??? Is that because the acquisition fee is higher here? I also saw a dealer on an S2000 forum offer a .00083 money factor. Is that the money factor Honda is using? Could you make me up a quote for the following: I AM in NY..

2005 Honda S2000
MSRP - $33,665
Selling Price - $30,500
12k miles per year, 3 years

Thanks again!

brentkhack · June 2005

What available rebates would apply to this vehicle for a lease? Plus, what is the residual for 36/36 and 36/45 and the MF? The Expedition turned out to be rather bad, so I will try this route. Thanks.

topgun7 · June 2005

Hello Car_man, what is the 24 and 36 month 15k miles per year interest rate and residual for 05 pontiac GTO AT in AZ? thanks.

newbee3 · June 2005

Car_man,

Thank you for your reply. The information you provided is very helpful. I talked to the Pontiac dealer, and they are charging GMAC Administrative Fees of $690, and doc fees of $399 on G6 lease. Is this what I should expect, or is it high in your view?

Also from reading different posts, I have gathered that most people prefer to minimize the Cap Cost reduction (put down less $$). Do you know the reason for doing so?

Once again thank you for your help. This mesage board is very informative.

jmjinnj · June 2005

Thank you for your reply CAR_MAN,

Here are few details I got from dealer about Audi A8 lease. MSRP is 75570. Selling price is 74439. Inceptions are NJ tax plus MV fees. And residual is 43502.
My lease payments are 967/month for 36 months. Does this sound right?
What if I just went for car with no added options. Then MSRP would be 70800, & my selling price would be 69800. How much less my payments would be?

Thank you very much for your advice.

cyman14 · June 2005

Car_Man--

My local Saab dealer last night worked up a lease for me on a Saab 9-3 Arc, MSRP $36,0454, employee purchase price 30,600. However, the employee purchase price for the lease is 32,945, plus $3500 in lease assist to be used as cap reduction. My question is: Is there a different employee purchase price for outright purchases and leases? It obviously makes a big difference in the lease payment.

I'm looking at 36 mo/15k lease--here's the quote
MSRP $36054
Sell price 32,945
Residual 16,581
Tax (about 675) title license fees included
$0 down
929.11 due at signing (payment 459.11 plus 475 sec deposit )

Any thoughts?

dcferro · June 2005

Hey Car_man,

I am trying to lease a Murano SL FWD touring MSRP 34,140. Invoice should be around 31,400. Residual is 59%, with a .00077 money factor. I need a 36 mo. 12k lease and am willing to put down inceptions of 1000-1250 with first payment included. What would be a reasonable tax included payment. I am in florida where tax is 6%. Thank you. I am having a tough time negotiating a deal with dealers right now, any suggestions.

jimmr · June 2005

Hi Car_man,
Do you know the residual value % according to AHFC of the 2005 Honda Element after a 3 yr., 12,000/yr. mile lease on the models below?
LX 2WD A.T.
LX 4WD A.T.
EX 2WD A.T.
EX 4WD A.T.

Thanks man, you're the best.

I plan on going to the dealer this weekend, if I get something I'll post all the specifics here.

zheka212 · June 2005

Ok, I have just confirmed this with Progressive (you would have to speak with an actual credit adjuster at your insurance company in order to find out for sure).

Additional security deposits are treated as cap cost reduction (down payments) by the insurance company. What that means, is if the car is declared a total loss in an accident, any money you put as down payment or security deposit is forever lost to you -- the insurance company works that amount into the payment to the leasing bank.

Naturally, none of us ever plan on totalling a car, but the big question is "If this does happen, and I have an additional $1000 invested with the car, plus the $1000 deductible I have on the policy, can I take the hit?"

andre1 · June 2005

CarMan,
Thanks again for the information. I just wanted to verify that the lease information you listed based on my request is for the CTS-V; your response listed it as the CTS. I would think that residuals would be different between the CTS and the CTS-V.

kyfdx · June 2005

Not that I'm an expert...

But, my first inclination is that the Progressive rep you spoke to is wrong about security deposits.. Correct about downpayments or cap cost reductions, however..

But, what possible difference could your payoff or whether you made cap cost reductions, additional security deposits, etc. have to do with what they pay the leasing bank? They are required to pay ACV for the car, minus your deductible. Any shortfall is then made up by your GAP insurance, which comes from (in this case) BMWFS. Now, if you have GAP insurance through your car insurer, then that may open up a whole other can of worms...

It is no different than if you have a loan on your car... The insurance company pays ACV (actual cash value), and the amount you owe on the car has nothing to do with it.

Once your insurer settles with the leasing bank, they are out of it.. They have no right or access to your security deposits.. The disposition of your lease is then between you and the leasing bank.. If you have GAP insurance (which every BMW lease has), then that will make up any shortfall.. Your security deposits will come back to you, as they would at the disposition of any lease. If there is no other responsible party (meaning another driver who caused the accident), then all you will be out is your deductible.. Your deposits are not at risk.

As always, I reserve the right to be utterly and completely wrong...

regards,
kyfdx

ramair1 · June 2005

First off, Car_Man, your advice is awesome...thanks!

I'm new to leasing...so be gentle. I've been trying to lease a 2005 Odyssey Touring with DVD and RES for a month now. I've received (last week) numbers based on the following: "A 48 month lease with 15,000 miles per year and $1,500.00 Out of Pocket is $542.00 per month including tax.
The MSRP for the vehicle is $39,010.00. Sell price of vehicle, $36,137.00. Gap insurance is included. The Bank Fee is $795.00, Documentation Fee is $138.50, $0 Security Deposit, the Disposition Fee is $300.00. There is no down payment for this lease. The Money Factor is 0.001800 and the Residual Amount is $16,384.20. Destination is included in price."

What troubles me if the use of $39,010. Honda lists the MSRP as $38,495, yet many dealers use the higher number as the MSRP...why?

I also am concerned with the low residual. Is this accurate?

Finally, I would imagine that the residual drops during the model year, which should increase the monthly payments of the lease, since you are leasing "more" of the vehicle. If this is true, does it not make sense to lease the next model year, in this case a 2006, since the residual should be the highest in August when the '06 arrives on the lot? What incentive is there for a person to lease a '05 at the end of the model year?

Any help is greatly appreciated...thanks

kyfdx · June 2005

What troubles me if the use of $39,010. Honda lists the MSRP as $38,495, yet many dealers use the higher number as the MSRP...why?

Plus $515 destination charge?

zheka212 · June 2005

You are correct -- your point of view makes sence to me.

What got me thinking about this, is the fact that most everybody (dealers) tried to talk me out of it. I thought this had something to do with the dealer making money on the actual MF assigned to a deal -- but if they do not mark it up, then it really should not make a difference to them.

Infiniti (my current choice) was the one that mentioned the risks involved with multiple security deposits.

I followed up with Progressive, spend a considerable time on the phone, and finally their combined department consensus was -- multiple security deposits to them are one and the same as cap cost reductions. It's obviously just another way for them to make money off you at the worst possible time, and it is also possible this is just Progressive's policy. The trouble is -- everyone else's quotes are about $500/year higher then Pro, so any savings I would see from multiple deposits would disappear into the insurance premium.

If anyone finds insuarers that treat deposits differently -- please share with the group.

And to the person trying to lease on Odyssey -- something tells me the lease you are being quoted is not though Honda Finance -- their aqcuisition fee is 595 (exept for NY & RI, where its 1095), they have no disposition, and they give you a $1500 waiver for damages to the car outside normal wear and tear -- my in-laws went about 1k miles over the lease allowence, and paid nothing -- Honda returned their check with a waiver letter.

pipesaez · June 2005

When leasing a car in California is tax assessed on the entire purchase or only the usage?

ger3sf · June 2005

Only on the usage...sales tax is added in each monthly payment. So if the monthly lease payment is $200, with a 5% sales tax rate as an example, the total monthly payment will be $210. The sales tax rate is based on your home address, not the location of the dealer.

If you choose to make a capitalized cost reduction, sales tax will be calculated on it as well. If the cap cost reduction is $1,000, the sales tax amt on it will be $50.

crj1 · June 2005

I am a GM buypower manager at a dealership in Michigan, do not pay the admin fee or doc fee of $399.00, the most they can charge on this program per GM is a $75.00 doc fee.

paul138 · June 2005

Car_Man:

I wanted your opinion on a lease quote i received on
the Nissan Maxima SE with no additional options.
msrp is 27910
selling price 25854
2500.00 down (includes all fees and first payment)
15k miles a year
36 month lease
315.00 a month
residual price is 14,513

(i have not even begun to negotiate)

I would like to get the same monthly payment with less of a down payment,
do you think thats possible? and is the residual price negotable?
also is there a generall rule of thumb if you add up your down payment
and monthly payments should it be a certain percentage of the msrp?
thanks....Paul

sandytoast · June 2005

Car_man,
Do you know if saab is offering any lease cash back on the 9-3 Arc right now?
I saw in may it was $3500 (1500 + 2000).

I'm starting negotiations now and I was told they only offer $1000 right now.

thanks

CarMan@Edmunds · June 2005

Hi lumbar. I suppose that one could look at dealers as the middle men in lease transactions because they sell the vehicle that you are leasing o a bank and then you make your payment to that bank every month. However, it is important to realize that it is up to you to negotiate as low a selling price as possible on the vehicle that you are interested in leasing. The bank will not do this for you.

You were correct when you stated that dealers' two main profit centers on leased vehicles are the selling price and any mark-up of the money factor that is used to calculate its payment. All banks that lease vehicles to consumers require that an acquisition fee, aka a bank fee, be paid. All of this money goes directly to the bank and individual dealers do not have the authority to waive this charge. They can however in certain instances nark-up banks' base acquisition fees to add additional profit to deals. This is why it is important to know exactly what acquisition fee the bank that you are considering leasing through charges.

The incentives that are available on leased vehicles would be the same as those that are available on them if they were purchased or financed, IF the lease is through an independent bank. If your lease is through an automakers' captive finance company, your vehicle may not be eligible for the same incentives as if it was purchased. This is because most automakers have special lease programs that are available on their vehicles when they are leased through their own banks. In many instances, the low interest rates that are provided through these specials are so costly that automakers do not allow them to be combined with cash incentives. The exact cash incentives that are available on leased vehicles varies from company to company.

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CarMan@Edmunds · June 2005

Here you go hpowders. If you were to lease a 2005 Infiniti M45 non-sport 2WD through Infiniti Financial Services right now for 3 years with 12,000 miles per, its vase lease money factor and residual value should be .00219 and 64%, respectively. The numbers for an otherwise identical lease of a 2005 Infiniti M45 Sport should be .00199 ad 62%, respectively.

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hpowders · June 2005

Thank you very much Car_man!

mazdax605 · June 2005

Hey Car_Man,

Long time no chat.I was thinking of maybe trying to get out of my lease early,and looked into a lease swapping website.The thing is it lists mazda credit as a lessor that still holds the original lessee accountable.What sort of liability would I have with this sort of thing,and is it worth their liability free program?I still love the car(04 Mazda RX-8),but think the $300 a month would come in handy to pay for our addition to our home.I currently pay $309 a month with 14 months left including all taxes.I am allowed 12K miles a year,and my current mileage is 8700.This is a 24 month lease.I also called mazdas automated system,and they say the buyout is $19xxx,but I am sure I will have to also pay the remaining payments,and a buyout fee($200).The remaining payments are $4326.Am I right in saying I will owe the remaining payments?I would love to just keep the car,and I am pretty sure that is what financially makes sense,but I am just trying to minimize my montly bills.I don't need this car either,so it does not need to be replaced.Thanks in advance,and Oh yeah I am very happy with my first ever lease,and would do it again.

Chris

sphere99 · June 2005

the FX35 2WD $38900 and 15k Miles thanks!!!

stixpixx · June 2005

Car_Man,

I am shopping for an Infiniti M35 Sport. Hoping to pull the trigger in June. Do you have MF and residuals for a 36 and 39 month lease from IFS on this vehicle with 12k and 15k miles per year. Your assistance is greatly appreciated.

Rafael

lease_is_up · June 2005

Car Man: As you requested, i am posting a reminder on my question:

"Car_Man: Can you help me out with MF and Residual for 2006 E350 4matic, 12k/yr for 36mos? You helped me on this few months ago but it was new model and there was zero lease support at time. Hoping June is better time... Thanks a lot for helping everyone here out!!"

Thanks again!

llepky · June 2005

Carman,

Can you please give me the MF and residual for both a 4runner Limited V8 4WD w/ Nav and a GX w/ Nav for 3 years and 36K miles. This is for New Jersey.
Also are there any good deals on these (eg 39/42 months)?

Thanks in advance,
llepky

desgnconcpts · June 2005

Dear Car_Man,
I posted this a few days ago but you must have missed it -- I know you're busy but would really appreciate your help. You recently (last Oct) helped me on a lease for my Dad's Rendezvous. With the GM Empl Discounts, I'm looking for myself now!

Saab 9-7x ARC, MSRP 40,990, GM Empl Price 36233
Can you provide the MF/Residual and your calculated lease cost on the above truck
24 mos/12,000 mi yr and 24 mos/15,000 mi yr
36 mos/12,000 mi yr and 36 mos/15,000 mi yr
Many thanks in advance for your help.
Desgnconcpts

chridennshan · June 2005

Carman,
I posted a question about the lease rates and what I was quoted a few days ago. Can you look at the previous post and let me know your opinion? In addition, I have another question. I was told that the 3 year residual is 56% and the rate is 5.75, and the 4 year residual is 50% and the rate is the same 5.75.

Would it be of any benefit to take the 4 year lease if it is the same rate, even though the residual goes down? FYI, the payment on the 48 month only goes down about $40 per month.

Thanks for your help with this.

leroybrown71 · June 2005

Car_Man,
Thank you for your help earlier. If you would be so kind, could I please have the current information on the 05 Lincoln Navigator 4x2 Ultimate , both with & without Navigation?
Terms I'm considering are 39 month / 12k per yr and also ( probably not ) 48 month / 12k per yr.
Thanks!

leroybrown71 · June 2005

Sorry for the 2nd post - but I noticed that there are some 06 Navi's out too. If the leasing info is different on those - please let me know. Thanks so much!

LB

a6lover · June 2005

Hi I would like to know where to start in negotiating a 2005 A6 (lease), I am currently leasing a 2002 A6, my end date is Sept 30. I would like to turn it in earlier, one dealer said there were lease incentives to turn it in early, another dealer said there wasn't. Each time the sales person asks what are my current payments, I don't tell them, I just ask for the price of the new car. How should I be handling this? Thanks

prisch · June 2005

hey Car_Man,

I'm looking for the MF and residuals for the XLT and EB editions--6 cylinder engine-rear wheel drive and any Ford incentives out there that can be paired with a lease. Thanks very much.

mnjoe · June 2005

Is gap coverage included in a lease of an M35 from Infiniti?

LDegrelle · June 2005

Could you find the Money Factor and residual value for a 36 month lease with 12k and 15k miles? And are any Nissan incentives available at this time with a lease?

THANKS!

zheka212 · June 2005

I was told by several dealers that it is.
It should be listed on the lease (possibly on reverse).
Infiniti financial should be able to answer that question for sure.

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