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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    I am glad to see that you are getting the hang of posting, Rose. If you are able to get a dealership to give you more than what you currently owe on your pickup, then yes you could use the difference as a down payment on a loan or a lease of a new truck. It would be an excellent idea to use any sort of equity that you have in your current vehicle as a down payment on a traditional loan for a new truck. However, I usually advise consumers against making a large down payment on leases. I say this for several reasons. One is that if your leased vehicle is totaled or stolen and not recovered during your lease term, your down payment essentially disappears. Another reason is that down payments on leases do nothing to establish equity in the vehicle that you are driving. Lease down payments only serve to reduce the amount of interest that you pay over your lease term. Your vehicle's lease-end purchase option will end up being exactly the same if you make no down payment or a $10,000 down payment! You definitely can achieve your target payment of $250 per month if you put enough money down on any vehicle. How much money you will need to put down to do so will depend upon how much money you get for your trade and what sort of price you are able to get on your new truck.

    Car_Man
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  • mmcbride1mmcbride1 Member Posts: 861
    If you sell the car, you have to pay sales tax, too.
  • jbudro1jbudro1 Member Posts: 5
    Car man, any word on lower money factors for the sportcoupe?
  • cupholder1cupholder1 Member Posts: 231
    True. But at least you get a higher price yourself.

    The thing this person wants to do is pay off her lease first and THEN trade it in to the dealer. That makes no sense at all. If she trades it in directly to the dealer, she pays no sales tax at all.
  • akanglakangl Member Posts: 3,282
    Thanks, but here in Alaska we don't have sales tax on vehicles. I may put it in the paper for $16,500 but I do have an offer of $15,500 from a dealer. It doesn't really matter which way I do it, but I will pay if off first since I am so buried in it.
  • mmcbride1mmcbride1 Member Posts: 861
    Gotcha. In Colorado, it's different.
  • lotus18lotus18 Member Posts: 37
    Car_man,
    The last thing I want to ask you before heading to the dealer to sign my first lease is about 'insurance'.
    I read about some kind of special insurance called the 'gap insurance'. Do I buy that from my own insurance agent who has been handling my usual auto/home insurance? Is that a 'mandatory' or 'recommended' insurance for all leasee? What kind of insurance paperworks to show to the dealer before they will let me drive away the car I leased?
    Thanks
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Yes, there is a difference between the Saab Financial Services lease program for a 2001 9-5 Aero and the 2001 9-5 2.3L and 9-5 V6 SE, the latter models' have lower money factors. These two cars have 3 year lease money factors through the end of the month of .00074 and .00141, respectively. Unfortunately, their residual values are slightly lower than the Aero's. The 3 year 15,000 miles per residual values for these cars are 41% and 45%, respectively. All of these models are still eligible for the $5,000 Lease Cash.

    Car_Man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Cupholder1, the Mercedes-Benz dealer who sent you that e-mail was telling you the truth. However, the information that I provided you with is so current that .00319 is the new lease money factor for all non-supported Mercedes-Benz vehicles leased through MBCC. Keep in mind though that they do have lease money factor support on certain E-Class and S-Class models.

    Car_Man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Thanks for the additional information, Bluesky. The lease money factor and residual value for a 2001 Saab 9-3 5-Door Base leased through Saab Financial Services right now for 3 years with 15,000 miles per should be .00047 and 40%, respectively. The 12,000 miles per year residual value for the same term would be 41%.

    Car_Man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome, Kelly. Enjoy your new car! I am jealous, I've had my eye on a TT roadster for a while now but haven't pulled the trigger, yet. :)

    Car_Man
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  • mannymoemannymoe Member Posts: 15
    Thanks for the new numbers for the ES 300 lease.
    I have test drove a RL, TL-S, X-Type 2.5, I-35, RX 300, and ES 300. The ES continues to be my favorite and I am close to signing papers.

    Do you know the residuals for the 39 month program at both 12k and 15k per year? I have not been able to get the dealer below MSRP but they said lease programs at 39 months were much better than 36 months? Any insight or advice on this?

    As always, I really appreciate your help.
  • hsj1906hsj1906 Member Posts: 42
    Thanks for everything Carman. After months of research and asking you questions, I finally bit the bullet and leased a Saab 9-5 aero yesterday.

    Thanks again for all of your help. Talk to you in three years. :-)
  • bryancalhounbryancalhoun Member Posts: 13
    Thanks!!!
  • art37art37 Member Posts: 8
    Really appreciate your patience w/ me and your consideration in explaining this step by step and your lifeline of help... you have given me some thoughts to work w/ and will mull this puzzle o/v some more.... THANK YOU big time!! rose
  • lelandclelandc Member Posts: 26
    Carman,

    Can you give me the residual and money factor on a 2002 Toyota 4Runner LTD (4X4)? Interested in a 3 year lease with 15,000 miles per year.

    I see that these are really being discounted like 5K off of MSRP. Wondering if a nice lease deal can be had?

    Leland
  • drew37drew37 Member Posts: 62
    Car_man, do you have lease information for the 2002 Audi A4's? I would be interested to know the residual and money factor for both the 1.8T and 3.0. Both would be with quattro and auto. transmission, 36 months, 12,000 miles/yr. Thanks.
  • lotus18lotus18 Member Posts: 37
    Car_man,
    Last week you mentioned that BMW is running an incentive for 01' X5 3.0i, you quoted 0.0022 for 36/15k. Is it the same factor for 36/12k ? How about the residual value , is it still 61% as for 36/15k ?
    I also find out BMW offers up to 9 'multiple security deposit' to lower the factor. Am I correct that the security deposit does not lower the capitalized cost, it only serves to lower the factor?
    Thanks.
  • hiwaysanityhiwaysanity Member Posts: 216
    Is there a reliable lease calculation site or spreadsheet that can be used to calculate payments on a lease from money factor, cap, term, etc.?

    Or is it a straightforward formula?
  • garykinggaryking Member Posts: 47
    Go to http://www.carbuyingtips.com/download.htm.


    They have some excellent free spreadsheets you can download to do all your calculations. I've been using them for years, and they really help.

  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Nope, jbudro1. I am sorry to say that Mercedes-Benz is not currently providing any sort of support on the C-Class.

    Car_Man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Lotus18, gap insurance covers the spread between what your insurance company will pay for your vehicle if it is stolen or totaled in an accident and what you still owe on it. Some banks automatically include gap insurance in your monthly lease payment. However, others charge a slight premium for it over your normal payment. One can usually purchase gap insurance for their leased vehicle right through the bank that they are leasing it through. I believe that it is possible to get gap insurance through a source other than the bank that you are leasing your vehicle through, but I do not have much experience with this sort of transaction. Gap insurance is not mandatory and in my opinion is a take it or leave it option. Some people enjoy having it, while others would rather roll the dice.

    As far as your vehicle's insurance goes, you will likely have to have someone at the dealership that you get your car from fax some sort of proof of purchase to your insurance company, like the window sticker. While you are at the dealership, you can have your insurance agent fax you a temporary insurance card so that you can drive off in your new vehicle.

    Car_Man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Mannymoe, the 39 month 15,000 and 12,000 miles per year residual values for a 2002 ES 300 leased through Lexus Financial services right now should be 56% and 58%, respectively. The 36 and 39 month Lexus Financial Services lease money factors for this particular model should be exactly the same. The only difference is that with the 39 month term, you get to spread out the vehicle's initial depreciation hit over three additional months creating a slightly lower lease payment. Of course, there's no guarantee that they are running your lease through Lexus Financial Services. It may be that they are leasing your your car through a totally different bank that has attractive 39 month leases.

    Car_Man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    you're welcome, hsj1906. I am glad that i was able to help you out. Don't be a stranger, now. Make sure to come back and let us know how you like your new ride.

    Car_Man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Bryan, it would be a big help if you were a little more specific. Where do you live (generally), how long do you plan on leasing these vehicles for, how many miles per year do you want, etc... Thanks.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    No problem, Rose. Leasing certainly be a confusing process, I am glad that I was able to shed a little more light on it for you.

    Car_Man
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  • bryancalhounbryancalhoun Member Posts: 13
    -Prerunner V6 Xcab 2002
    -Wrangler Sport 2002

    36 or 48 months, 15K

    Bay Area

    The Chrysler Financial numbers for the wrangler are terrible. Any ideas of residuals with other lenders.
  • bluesky999bluesky999 Member Posts: 253
    CarMan,

    I greatly appreciate the numbers you've provided on the Saab 9-3 -- thank you. I'll let you know if I go for it or not. I'm going to make some kind of move before the end of this year, hopefully sooner rather than later.

    Bluesky
  • mannymoemannymoe Member Posts: 15
    As always, thanks for the quick information on the ES programs.
  • mannymoemannymoe Member Posts: 15
    As always, thanks for the quick information on the ES programs.

    One final number (I hope!) that would be useful to me in my calculations would be the residual for 36 months at 12k miles per year. I am sorry I did not think to ask for this in my previous post. I am analyzing my numbers thru the LeaseWizard software and I am trying for the best deal possible; I know that will only happen if I am armed with all of the data. One other question, any suggestions on how best to negotiate on a new model with good demand like the ES? I haven't had luck below the sticker.

    Thanks again.
  • hiwaysanityhiwaysanity Member Posts: 216
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Leland, Toyota divides the country into something like 12 different regions and has different incentives programs in each one of them. As a result, it is difficult to keep track of all of the special lease money factors that they offer. I still may be able to give you a good idea of what the money factor for the 4Runner that you are interested in might be like if you let me know where you live.

    Car_Man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi Drew. Audi has finally released its lease program for the 2002 A4. If you choose to lease a 2002 A4 1.8T quattro or 3.0L quattro through Audi Financial Services for 3 years the lease money factors should be .00295 and .00270, respectively. The corresponding 12,000 miles per year residual values should be 61% and 59%, respectively. I personally think that Audi has done an outstanding job with the redesign for the A4. It has much more interior room, a better engine, and cooler styling than the previous generation A4 which wasn't a bad car to begin with.

    Car_Man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Lotus18, you would still be able to use the same lease money factor if you were to lease this truck for 3 years with 15,000 miles per, however its residual value would be 2% lower for the higher mileage lease. You are correct about how multiple security deposits on leases work. They do not serve to reduce your vehicle's capitalized cost, but rather are used to buy-down the interest rate (money factor) that is being offered to you by the bank that you plan on leasing through.

    Car_Man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Thanks for the additional information, Bryan. As I mentioned in a recent post, it is difficult to keep track of all of the special lease money factors that Toyota has out there because they divide the country into so many different regions. You reside in their San Francisco region. To the best of my knowledge, Toyota is not currently offering any sort of lease money factor support on the 2002 PreRunner in your area. Even is they did have special factors on the Tacoma, the PreRunner is usually not eligible for them anyways. So if you choose to lease one through Toyota Motor Credit Corp., you will likely have to use their standard lease money factor, which was recently reduced to .00270. The 3 year 15,000 miles per residual values for this truck should be around 55% for the PreRunner Regular Cab, 58% for the XCab, and 60% for the DCab. For a 4 year lease they would fall to 48%, 51%, and 53%, respectively.

    You are right about Chrysler Financial's Jeep Wrangler lease program, it's not that great. They don't have any sort of lease money factor support on the Jeep Wrangler right now and their standard lease money factor for 36 and 48 month terms is .00325. They did reduce the 39 month factor to .00315 a short time ago, but that still isn't anything to write home about. The 3 year 15,000 miles per Chrysler Financial residual values for the 2002 Jeep Wrangler should currently be 54% for the Sahara, 52% for the SE, and 53% for the Sport. The 4 year values should be 45%, 46%, and 46%, respectively. There are so many other banks out there that offer leases on these vehicles that it would be impossible for me to keep track of them. Your dealer should have an idea if there are any attractive leases on either of these vehicles that are being offered by outside lending institutions right now. If you shop around a little bit to keep them honest you should be in good shape.

    Car_Man
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  • shaker58shaker58 Member Posts: 130
    went to bmw dealer said they no longer do it. Is that correct????
  • im_brentwoodim_brentwood Member Posts: 4,883
    Unless they just killed it off... That's news to me.

    Tried calling another dealer? Or ask to speak to the finence manager at the store you're working with now.

    Bill
  • cupholder1cupholder1 Member Posts: 231
    Car Man:

    Could you please tell me the residual/money factor for an '02 VW GTI, 36 (or 39) month lease, 15k miles a year. Thanks.
  • shaker58shaker58 Member Posts: 130
    will try another dealer
  • dgraves1dgraves1 Member Posts: 414
    I guess my request got lost back there. Do you have residual value and money factors for a 36 month/12K lease on a Toyota Sequoia?
  • mannymoemannymoe Member Posts: 15
    Per your post (#2173) on residuals for new ES's: I spoke with the dealer and confirmed the program he mentioned to me was, in fact, thru LFS. He said the money factor was 0.00270 as you have said in previous posts, but the residual in a 39 month, 12k miles per year is 56% thru LFS (not the 58% as in your post). The difference in residuals changes the payment from $581 to $599 per month. He said he will run LeaseLink numbers in the morning to see if anyone else is carrying a higher residual and questioned where I got my info. I also made sure that all options on the car are being residualized (chrome wheels are the only option that are not residualized). He made sure to note that although another finance company may carry a higher residual at the same money factor, they will nickel and dime me at the end of the lease for every scratch and ding (whereas LFS will be more amiable to entice me into another Lexus).

    I really want this car, but I do not want to pay an extra $18 a month, on top of the fact that I am at full MSRP (I haven't been able to do any better on this new model). Any advice on the residual or any other factors that might help me?

    I am looking to do something soon so please let me know as soon as you have a chance. Thanks in advance for your help in guiding us rookies thru the leasing maze.
  • bryancalhounbryancalhoun Member Posts: 13
    carman,

    Stil in Bay Area and looking at 36/48, 15k.

    Is there anything special right now on either the Tribute ES 4wd or Base Outback (Legacy)?

    Gracias!!!
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome, mannymoe. Don't worry about asking so many questions, I am always glad to help out. The 3 year 12,000 miles per Lexus Financial Services lease money factor for a 2002 ES 300 should currently be 60%. As far as the price of this car goes, you are experiencing one of the main rules of economics: items that are in low supply and high demand will have high prices. Many dealerships have quite a few orders for the ES 300 that they have not filled yet. The ones that have the 2002 ES 300 in stock aren't having any trouble selling them very quickly to consumers who are willing to pay close to full MSRP to be the first on their block to have one. As time progresses, the production of this model will begin to ramp up and dealerships have more in inventory, not to mention the fact that this will not be as new and hot a product, Lexus dealers will likely begin negotiating price more. Until then, the best thing that you can do is comparison shop at a couple of different dealerships to see what the best price that you can get in your area is.

    Car_Man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Sure thing, cupholder. If you were to lease a 2002 Volkswagen GTI through VW Credit this month for 3 years you would be able to use base lease money factors of .00218 for the GTI VR6 and of .00210 for all other GTI models. The 3 year 15,000 miles per residual values for the 2002 GTI are 59% for the GLS and 58% for the GLX.

    Car_Man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Sorry about that dgraves1. Toyota is not providing any incentives on the Sequoia right now. So if you choose to lease one through TFS you would have to use their standard lease money factor of .00270. The 3 year 12,000 miles per residual values for this truck are 61% for the Base model and 55% for the Limited.

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  • lotus18lotus18 Member Posts: 37
    Car_man,
    I took your info about the lease incentive for the 01' X5 3.0i to a Houston BMW dealer. However I was sold on a pre-owned 01' X5 3.0i with 3k miles on it. Here is the figures I was quoted on paper word for word:
    Adjusted Cap Cost:$44,348.69
    Lease-end value: $25,840.20
    Selling price:$41,000
    money factor rate:0.00375
    Monthly payment:$777.33
    terms:36 months/10k
    ****************************
    Upfront Lic. fees:$156.05
    tax window:$2668.69
    Acquisition fee:$680
    Amount due at start:$933.38
    *****************************
    They also offered to lower the money factor by 0.0001 per extra security deposit.
    **********************************
    I think the money factor of 0.00375 is too high to begin with, and I have no idea about the residual value of a pre-owned BMW.
    With your expertise, can you help me to verify the money factor and residual value ?
    Please comment on this offer as soon as you can and let me know what should I prepare to negotiate when I return to sign the deal.
    Thanks.
  • lotus18lotus18 Member Posts: 37
    Car_man,
    I have 2 more questions:
    1. As far as I understand, TTL stands for tax, title and license fee. Do I pay the tax on the whole purchasing price upfront? If so, what about the sale price added to each monthly payment? It seems to me that I have to pay tax twice if I pay one lump sum upfront and again with each month's payment.
    2. The above quote on question#2196 shows that my 'amount due at start, $933.38 is the sum of upfront lic fees plus the first month payment only.($156.05 + $777.33), What is that 'tax window' of '$2668.69?
    Why this amount of $2668.69 is not part of the 'amount due at start'?
    Sorry for so many questions because I am really excited (actually nervous) about my first potential lease. I don't want to fail this.
    Thanks.
  • mannymoemannymoe Member Posts: 15
    Carman, Thanks for gettting the ES info to me so quickly. In summary, I want to confirm I have my facts correct before I walk from this dealer. From my various inquiries to you, I believe the following to be the case: LFS current money factor for either 36 or 39 month lease is 0.00270; residual for 2002 ES, 36 months at 12k/year, 60%; 39 months at 12k per year, 58%; 39 months at 12k/year, 58%; 39 months at 15k/year, 56%.

    Please let me know if I have any of this wrong. As I said before, I really appreciate your help. I love this car but since I'm paying MSRP, I don't want the lease marked up as well.

    I wish I had access to all the info you do so I wouldn't have to keep asking. Thanks so much.
  • cupholder1cupholder1 Member Posts: 231
    Car Man:

    Thank you for the GTI numbers. I knew that VW offered favorable leases, but these numbers you gave me are quite amazing.

    One other question. Actually, two other questions. What is VW credit's standard mileage penalty, and what is the current residual/money factor for the '02 Passat?

    Thanks.
  • dgraves1dgraves1 Member Posts: 414
    Thanks a lot Car_man.
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