Lease Questions - Ask Here

CarMan@Edmunds · July 2005

Here you go spigot66. If you were to lease a 2005.5 A4 2.0T Quattro through Audi Financial Services in July for 36 months with 15,000 miles per year, its base lease money factor and residual value should be .00135 and 56%, respectively. Audi has published a lease program for the 2006 version of this car. The numbers for an otherwise identical lease of an '06 model should be .00240 and 58%.

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CarMan@Edmunds · July 2005

Hi bluhway. 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.

If you are going to be way over your car's mileage allowance, the only way that you can avoid paying a substantial penalty for excess miles is to purchase it at lease end. It is to your advantage to wait until the scheduled end of your lease to buy your car because not only are automakers more willing to negotiate the purchase prices of leased vehicles at the ends of leases than they are in the middle, but you never know what will happen to your car between now and the end of your lease. If it is in an accident or if you start having mechanical problems with it, you would be in a better position if you were able to gust give the car back than if you already owned it.

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CarMan@Edmunds · July 2005

Hey italia233. I believe that I already responded to this post. Let me know if you can't find my response and I will be happy to try to find it for you or answer any questions that you have again. Thanks.

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CarMan@Edmunds · July 2005

Hi th9599. I am sorry to hear about your situation. Unfortunately, it is usually fairly expensive for consumers to get out of leases well before their scheduled ends. In order for you to get out of your Durango lease, you would have to purchase your truck and either trade it in or sell it on your own. The problem with doing this at this point is that you are likely upside down on this truck, meaning that you owe more on it than it is worth on the open market. This is even more likely to be the case if you rolled the payments from another vehicle into this lease. Your least expensive option is probably to continue leasing your Durango and to lease or finance a less expensive vehicle when this deal is over. I am sorry that I don't have better news for you.

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CarMan@Edmunds · July 2005

Hello grossie. Yes, Infiniti does lease the G35 AWD Sedan through its captive finance company, Infiniti Financial Services. It is running a special lease on this car for the month of July. I would be more than happy to give you an idea of what this car's current special lease program is like, 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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christina271 · July 2005

what would the monthly payment be for an 05 RX330 with an msrp of 45,083 be for 36 months 12k and 15k???$0 down...car will be registered in NJ

and what about one with an msrp of 42,733???

thanks

tiger93 · July 2005

Hi Car_man....what is the July IFS residual % on a 36 or 39 month lease with 18,000 miles and also with 20,000 miles? I'm assuming MF would remain the same at .00211. Thanks for checking!

grossie · July 2005

Car Man- thanks for the response. I'm thinking 36 mos, 12k per yr.

Thanks again.

davidw2 · July 2005

Carman,

Thanks for the response. Here's the additional information:

2005 Acura TL with Navigation.
MSRP: $35,100.
Destination charge: $570.
State sales tax: 6%
36 month lease, 12,000 miles per year, no money down.
Assume a selling price of $32,800 (which includes the destination charge).
Money due at signing includes a "Bank Fee" of $595, a "tax" on the Bank Fee of $53.55, "Tag fees" of $123.50, and the first month's payment.

What should my monthly lease payments be?

Thanks for your help, Carman!!!!

tazjoplin · July 2005

I've had my fill of buying used cars but can't afford a new car payment.

I'm considering leasing with the intent to purchase after the lease. I know my mileage may be a factor at the end as I typically drive 20,000 a year, so is this a wise choice? Can I turn around and buy the car at the end of the lease without penalties. Or is this flirting with disaster.

kyfdx · July 2005

If you can't afford the 60 month payment on a new car, then leasing to buy is a bad idea...

What you are basically doing is financing your car for 84 months...

I don't think anyone would say that is a good idea..

Flirting with disaster... is an apt description...

Look for a cheaper car that matches your budget....

regards,
kyfdx

ksccts · July 2005

Thanks!

mbx4steve · July 2005

Thanks Car-man. A friend of mine that works in the car business told me to "jump" in now if I want a good deal for 2005 models. The 2006 Volvos are here and they are not much different. But the factory is not offering incentives for 2006 models, not yet. And he also suspects that the incentives for the 2005's will be less in August as the clearence sale is going well.

This is a lease quote I got from a dealer for a S60 2.5T with just the premium package...

MSRP...$34,900
Cap Cost...$27,375
Residual...46%
Down...$2,850
M.F.... .00195
12K miles/yr for 36 months...$310 + tax

I think this is a good deal!

weninfl · July 2005

What should my monthly payments be on an Acura TL 4-door w/navigation, 12,000 miles, 36 months?

weninfl · July 2005

Did you ever get a reply to this? I have the same question, but don't see an answer...

cacic · July 2005

I can tell you about my recent experience. I leased my first car in 2001 and it was a four year 15k per year lease (Subaru outback limited) and my payments were $425 per month. I went to the dealer last week, gave them back the '01 with two payments remaining and 17,700 over my mileage. I leased a new '05 Subaru outback limited for four years, 15k per year for $446 per month. They covered 1 month payment, 1 covered the other and the overmileage was rolled into the new lease. My bottom line was this: I had a four year old car that I simply gave back and drove out in a new one for $20 more per month or $5 more per year from what I was paying and in four years, I am going to do it again! I thought it was perfect and at the end of the day, I had paid $20,400 to drive a new limited for four years. Might not work for everyone, but I was pretty happy.

rbevz67 · July 2005

Hi Carman and everyone,

Could you please provide the residual values for the 2005 Altima SE and SE-R along with those for the Maxima SE and SL assuming 3Yr/15,000miles? Also, are you aware of any incentives that can be applied to someone who chooses to lease one of these?

Thanks!

PS: Any1 know if the 2006 Maxima will have a redesigned interior?

fisher54188 · July 2005

Hi guys!

I will work in California for a short period of time (3-6months). I'm trying to find a lease or similar program that supports such a short time period. Of course, the cheaper the better...

Is there any leasing program that fits my needs?

Thanks!!

Jim

domer · July 2005

This is the email from the sales guy...advice? Thanks for your help!

I talked to my manager and I got him to lower the price on the Car. Here are the new numbers.

2006 Infiniti M35 sport/ Msrp $50,090

39 month lease/ 15k miles per year/ $700+tax per month/ with 1st payment+ttl+doc due.

State is MN --

tcoop25 · July 2005

Car Man-
I am looking at a couple cars, and have gotten quotes for leases for a Nissan Maxima SE and a Honda Civic Hybrid (Auto). The cars are almost 10k apart in price, yet the leases (15k per year, 3 year, 0 down) seem to be too similar in monthly payments. Here is the quote for the Maxima...

'05 Nissan Maxima
32,287 MSRP
28,500 Selling Price
437.50 Per Month
15k miles per year
0 Due at signing (sign and drive)

Now for the Honda Civic Hybrid
21,415 MSRP
20,832 Selling Price
397.60 Per Month + tax
15k miles per year
0 Down

How can cars with such different selling prices be so close in monthly payments?

Thanks,
tcoop25

pelequero · July 2005

Thanks for the help. One more question about the S2000 lease: You quoted the money factor as being .00073, which is roughly 1.75%. Is that right? Why such a low interest rate? Also, will a balloon loan have a much higher interest rate? or maybe just a few points higher? Thanks

kyfdx · July 2005

The low money factor is to incentivize the sale of the car... It is just another tool, like rebates or dealer cash... The low money factor is one of the reasons the S2000 is such a good lease deal, right now..

Typically, balloon notes carry pretty substantial interest rates... I have no info on Honda, specifically, but with other makes, I've seen balloon note interest rates as high as 7.9%, even while lease and conventional finance rates remain low...

regards,
kyfdx

tiger93 · July 2005

Jim - you may be able to assume someone's lease through one of these companies:

http://www.leasetrader.com/
http://www.swapalease.com/

I did check out leasetrader.com about 3 years ago but didn't pursue any cars there. Obviously, you have to be very wary of the vehicle's mileage and condition because once you assume a lease, it becomes your lease. Best scenario would be to find a local car you can inspect and verify. Maybe some other forum members have had first hand experience??

tiger93 · July 2005

domer - did the salesman give you the purchase price, Money Factor, and Residual Value for this car? If not, you should email him back and ask for those specific items. Are you dealing with Lupient Infiniti or Luther Infiniti? I'm in the Twin Cities and am considering this car as well as the RL.

I think I saw some numbers from Car_man a few days ago that put the MF at .00211 and residual at 61% with Infinity Financial Services. With these numbers, even if you paid STICKER for it, you'd be looking at $670 +tax per month. Assuming he "talked to the manager" and got him to lower the price, you should be lower than $670 if my numbers are correct. Car_man can verify them.

nick25 · July 2005

Hi Car Man, I'd really appreciate your advice:

I'm about ready to sign for a 36m/12k lease on a 2005 Nissan Maxima SE. Onyx, black cloth int, power sliding sunroof, spoiler, traction control, 6CD Bose audio package for $335/month w $1500 down, all tax, fees, etc. included. MSRP should = $30,250, I've read residuals on 2005 Maxima after 36/12k would range 52% and up.

Should I sign or am I getting a bad deal?

Thank you for your time and advice,

Nick

viperz4 · July 2005

Hi Carman. Here is the details on the deal I am looking at:
2005 Acura MDX premium model (BASE)
MSRP $37,410
negotiated selling price: $34900
36 months /36000 miles (12000 / year)
Total out of pocket expense for driving that car out of the lot: $1500.

They have told me the residual value will be around $23000. I have qualified for their preferrred rate which is 0.00176 I think?

Best quote I have so far is $465 / month. I made a mistake during my negotiation and told him a payment I am comfortable with. Now I suspect he may be working with numbers to come up with this payment. Can you please let me know what your think is a fair deal?

Thanks much!

tiger93 · July 2005

Congratulations on the new VUE. Don't worry about doing all the maintenance at your dealer. It's your choice where to have the car serviced. Just save your receipts for documentation. Also, I would certainly follow the manufacturer's maintenance schedule over the dealer's schedule. You won't be charged for any wear and tear so long as you have performed the manufacturer's recommended service.

bp714 · July 2005

Thanks for the info, Car man. I'll report back on the final deal when the car arrives--around thirty days.

Glad to see you back on your feet.

jfbk · July 2005

Would like to know if the following sounds like a good deal. Thanks

2005 Cadillac CTS
MSRP 39,100 approx
final price of 34400

48 month/ 15 K a year for $490 a month. Only thing due is first month payment ($490) at signing.

CarMan@Edmunds · July 2005

Hey deejay2099. $200 per month is not very much money when talking about a 3 year lease without any sort of down payment. If I was looking for an inexpensive family sedan, I personally would check out the Toyota Corolla and Honda Civic. These are the least expensive, quality sedans that I have seen advertised lease payments of less than $200 a month for.

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CarMan@Edmunds · July 2005

Greetings Chris. Unfortunately, since balloon notes are much less popular than leases I do not personally keep tabs on banks' balloon current note programs. I would be more than happy to tell you what this car's current lease program is like if you want. I suspect that when converted to interest rates, its lease money factors are fairly similar to the rates that Saab charges on balloon notes.

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CarMan@Edmunds · July 2005

I see that you are a big Nissan fan, rbevz67. They make quality vehicles so I don't blame you. Let's take a look at the lease programs for the cars that you are interested in. If you were to lease a 2005 Nissan Altima SE through Nissan Motor Acceptance Corp. right now for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00227 and 57%, respectively. The numbers for an otherwise identical lease of an '05 Altima SE-R should be .00227 and 54%. When negotiating your lease on the Altima, make sure to keep in mind that Nissan is providing $1,500 lease cash on it that will help you to negotiate an attractive capitalized cost. As far as the Maxima goes, if you were to lease a 2005 Nissan Maxima through NMAC right now for 3 years with 15,000 miles per, its base money factor and residual value should be .00065 and 52%, respectively. Nissan is providing $500 lease cash on this car.

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CarMan@Edmunds · July 2005

Hi ern16. I believe that I already answered your questions. Scroll back and take a look. If you can't find it, let me know and I would be happy to answer them for you again.

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CarMan@Edmunds · July 2005

Welcome tinker1121. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

Once you have checked out these articles, stop back and I will be more than happy to answer any specific questions that you have about the Nissan Pathfinder's current lease program. I will even calculate an approximate lease payment on the truck that you are interested in for you if you provide me with its full MSRP (including destination charges) and an approximate selling price, or at least its dealer invoice price.

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CarMan@Edmunds · July 2005

Hello hsp. As usual, BMW is not providing any sort of lease support on the MINI Cooper. This means that if you were to lease one through its captive finance company, you would have to use its standard lease money factors. Right now the base standard money factor on leases of MINIs is .00270 for any length lease. The 36 month and 48 month, 12,000 miles per year residual values for a 2005 Cooper should be 64% and 55%, respectively.

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CarMan@Edmunds · July 2005

Hi sage23. I believe that Wisconsin is in Toyota's Chicago region. According to the latest information that I have seen, if you were to lease a 2005 Toyota Sequoia SR5 4WD through Toyota Financial Services in your area right now for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00178 and 64%, respectively.

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CarMan@Edmunds · July 2005

I would be more than happy to give you an idea of what sort of money factor and residual value were used to arrive at the advertised lease payment that you saw, buster6. If you were to lease a 2005 Infiniti FX45 through Infiniti Financial Services right now for 39 months with 10,000 miles per year (I believe that the advertised payment's mileage limit is 10K, correct me if I am wrong) its base lease money factor and residual value should be .00148 and 60%, respectively. The residual value for an otherwise identical lease with 15,000 miles per year would be 58%.

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rbevz67 · July 2005

THanks so much! Any difference between the Maxima SE and SL as far as money factor and residual?

CarMan@Edmunds · July 2005

In answer to your second question, buster6. If you were to lease a 2006 Infiniti M35 2WD Sedan through Infiniti Financial Services right now for 2 years with 15,000 miles per, its base lease money factor and residual value should be .00193 and 73%, respectively. The numbers for an otherwise identical 3 year lease of this car should be .00202 and 62%. IFS' numbers for 2 and 3 year, 15k leases of the 2006 M45 Sedan should be .00193 / 72% and .00201 / 62%.

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CarMan@Edmunds · July 2005

Thanks for the additional information, viperz4. According to my calculations, if you were to lease a base 2005 Acura MDX with an MSRP of $37,410 and a selling price of $34,900 through American Honda Finance Corp. right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $439.

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CarMan@Edmunds · July 2005

Hey will2702. If you were to lease a 2005 Mazda RX-8 with an automatic transmission through Mazda's captive finance company right now for 2 years with 12,000 miles per, its base lease money factor and residual value should be .00019 and 54%, respectively. In additional to this special lease money factor, Mazda is providing $1,000 lease cash on this car in July. This money will help you to negotiate an attractive capitalized cost.

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domer · July 2005

Checking on the info. The funny thing is the first quote he gave me was at 739. The guys name is evan henderson at Lupient.

Waiting for a reply. Thanks.

kyfdx · July 2005

Wow.... that is one crappy lease program...

Then again, the RX-8 with an automatic is one crappy driving experience...

kurtamaxxguy · July 2005

Hi. Do any leases allow for more than 12K of mileage per year?

kyfdx · July 2005

Every make has 15K leases available....

Most have programs to allow for extra miles over that.. but, some of them are cost-prohibitive...

carnaught · July 2005

Lease deal on an ordered '06 BMW 325i. This is a PREPAID lease at my request:

24 month and 18000 mi./yr. MSRP is $39145 with lease price of $37800 and total drive-off of $17464 (includes taxes/fees)

adjusted residual is $27173

A good deal?

Thank you.

bdr127 · July 2005

Are dealers really discounting the M35? Do they really have to in order for them to sell?

mjs212 · July 2005

Hello Car_man,

I am currently leasing a 2004 Honda Civic EX (Automatic) base model and live in New York (Long Island). I have leased it so far 16 months and have 20 months remaining. The car is in excellent condition and has 9,900 miles.

This past week I received a letter from my dealer asking for owners of Hondas to meet with them to discuss buying out my car for a new 2005 model. The reason they explained is that they need previously owned cars to open a used car lot and want to sell certifed previously owned Hondas.

My question is what would a fair monthly lease payment be for a 2005 Honda Civic EX (base model) without any money down?

Thank you.

fisher54188 · July 2005

thanks Tiger93. The two websites you provided are very helpful... I'll keep my eye on them to find a good deal

mnjoe · July 2005

I dealt with Lupient and Luther for months and finally gave up. The experience was terribly frustrating.

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