Lease Questions - Ask Here

CarMan@Edmunds · August 2005

Hi jasonhersh. I would be more than happy to give you my opinion on these deals and to calculate sample lease payments on the SUVs that you are interested in using their manufacturers' actual lease programs. However in order for me to do so I need you to provide me with both their full MSRPs (with the destination charges added in) and their selling prices. These are important numbers 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.

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sanders21 · August 2005

Thanks for the response Car man. Do you think Toyota will have better incentives or lease specials for August?

davidd3 · August 2005

Car_Man,

Today is August 1. Could you let me know the details of BMWFS' AUGUST lease program for the 2006 BMW 330i? I am interested in a 3 year lease with 15,000 miles per year. I am wanting to know the pertinent money factor, residual, and acquisition fee for NY.

I ordered a car in July. At that time I locked in the July lease program (money factor of .0025, residual of 59%, and NY acquisition fee of $900), with an option on the lease program in effect at the time of delivery (which will be either August or September). I am therefore wanting to know how the August lease program compares to the July lease program.

Thanks.

David D

evan2 · August 2005

I am trying to find out the base rate for those 2 cars on a 12k/36 lease.

mbx4steve · August 2005

Thanks Car_man. So the dealer was doing it right after all.

I am all done, for now. It's been a pleasure reading these helpful messages. I learned a lot and probably got myself a decent deal. Thanks everyone. :shades:

perrysdad · August 2005

Appreciate the response. Yes, the prices I was quoted were for a sale, not a lease. The prices were going to be higher when leasing with IFS. I actually bought the car with the higher sales price and financed it using the IFS loan program. But had I decided to go with a lease, the information that I was able to obtain utilizing this forum was very valuable.

steve777 · August 2005

Avineberg, I'm starting to look and also considering the M36 or a6. What kind of deals are you getting quoted?.

kywon · August 2005

Car_man-

Thanks for your help again. I leased an Acura TL over the weekend. The dealer actually went through Wells Fargo to lease this car because they had the same 56% residual on a 15k/3yr lease but the MF was much better at .00185 vs. .00235 through AHFC.

See you in 3 years!

kywon

drose224 · August 2005

Carman,

My father in law passed away last month. He had a lease with GMAC and he was the only person to sign the lease. My mother in law will have difficulty with the high lease payments. There are three years left on a four year lease. I called GMAC and they were not much help. They said the estate would have to honor the lease. Any way anyone has heard of breaking this lease?

Thank you

c21bryan · August 2005

thanks for the info car man but I was looking for the lease programs on the 2006 A8 L if you have them. thanks.

max19 · August 2005

2005 Pontiac GTO

I am wondering if someone can help me with the figures. The General Manager of the dealership is working with me personally and he told me to wait until August because the lease programs were going to be better. Right now this is how it look: Re

Residual: $16,408.00 or 48% of $34,185.00 with options (18 alloys)
Price Set to: $31,700.00 and 5.5% financing.
4/48 12k miles.

The GM employee price plus military rebate is included. Please let me know if there is going to be any other applicable rebates or incentives.

I want to know if this 48% residual or the rates are going to change by tomorrow August 2, 2005. Should I wait for the 2006s GTO?

Thanks in advance to whoever can answer this one.

imartin · August 2005

Agreed rroyce 10! I went back to the dealer and tore up the lease in exchange for a purchase with my credit union. They had not submitted the lease as yet thus allowing me to get right out of it. Yipee!!! Based on my calculations at four years I'll owe much less on it than my residual was going to be ($4250 less). Got 5.14% for 72 months at my CU. Done deal. Thanks all.....

ehw99 · August 2005

Hi, Car Man. We have used the lease calculator on Edmunds (and other websites)and have gotten numbers from the dealer and are unable to come up with consistent lease numbers. Here's our deal through VPP

M35X with Journey, Tech, mud flaps and full size spare

MSRP: 51,100
VPP Price: $46,577
Acquisition fee of 550 (which the dealer has indicated is taxable)
MD tax of 2,356.34
Registration fee of 210
Doc fee of 99
39 mos/15,000 per year
Total $ down: $5,000 (please calculate using this and using $4,000 as an alternative, even though I know that you don't recommend putting any money down)
Residual: $31,171.
No security deposit
Let's give the dealer the benefit of the doubt and assume they are using the MF of .00211, although the finance guy will not confirm.

Please let us know what the monthly payment should be under these 2 scenarios.

Thanks for your help!!!!

CarMan@Edmunds · August 2005

You're welcome sanders21. It is difficult to say what Toyota's August lease program will be like. It is scheduled to publish it today. I should have had an opportunity to take a look at it by the end of the week. Please feel free to post a quick reminder in this discussion for me then and I will be more than happy to fill you in on what I have been able to find out about the new program.

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CarMan@Edmunds · August 2005

Hey David D. BMW's July lease program was scheduled to run through August 1st. That means that its new August program will not be published until some time on the 2nd. BMW usually does not announce the details of its new incentives programs until it has published the previous month's sales results late in the day. I should have had an opportunity to take a look at BMW's new program by the end of the week. Please feel free to post a quick reminder in this discussion for me then and I will be more than happy to fill you in on what I have been able to find out about the new program. Talk to you then.

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CarMan@Edmunds · August 2005

Hello evan2. Acura and Honda are two of the few brands whose lease programs were actually not scheduled to expire at the beginning of August. If you were to lease a 2005 Acura RSX (not the Type-S version) through American Honda Finance Corp. right now for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00040 and 55%, respectively. If you were to lease a 2005 Honda Accord Coupe EX (the LX has a different program, let me know if that is the model that you want) through AHFC right now for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00112 and 53%, respectively.

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CarMan@Edmunds · August 2005

You're very welcome mbx4steve. I'm glad that I could shed some light on the situation for you.

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CarMan@Edmunds · August 2005

No problem perrysdad. I though that those prices looked a little low for leases. Enjoy your new car!

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CarMan@Edmunds · August 2005

You're welcome kywon. Thank you for taking the time to stop back and let us all know how everything turned out. Given the fact that Honda is not providing any sort of lease support on this car, I am not surprised that your lease was run through an independent bank. Enjoy your new TL, its a great car.

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CarMan@Edmunds · August 2005

Hi drose224. I am sorry for your loss. I have heard that some banks will allow the termination of leases that were made by individuals who passed away, but from your conversation with them it does not sound as though GMAC is one of them. In your conversations with GMAC, did you ever try to work your way up the ladder to some sort of manager. It might now be a bad idea to do so. They have more authority than the individuals who initially answer calls. You may want to discuss your mother-in-law's options with a lawyer that handles estates. I am sure that they have seen this sort of situation before and should be able to tell you how to proceed.

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CarMan@Edmunds · August 2005

Ah ha, sorry about that c21bryan. You're interested in a 2006 A8 already, huh. I've heard that the are already at dealers. Audi's July lease program was only scheduled to run through August 1st. I have not had an opportunity to take a look at its new August program yet, but should be able to by the end of the week. Please post a reminder in this discussion for me then and I will be more than happy to fill you in on what I have been able to find out about the new program. Talk to you soon.

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CarMan@Edmunds · August 2005

Hi max19. I was under the impression that the 2005 Pontiac GTO was not eligible for GM's employee purchase program in July. It is likely that GM's new August lease program, which is scheduled to be published at some point today, will be different than its July program. I should have had an opportunity to take a look at its new program within the next couple of days. Please feel free to post a quick reminder in this discussion for me towards the end of the week and I will be happy to try to give you an idea of what GM's new lease program for the GTO is like.

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CarMan@Edmunds · August 2005

Hey ehw99. I would be happy to calculate a sample lease payment on this car for you. However, it would make sense to wait a couple of days. Infiniti is scheduled to publish its new August lease program at some point late today. I should have an idea of what the new program is like in a day or two. Please feel free to post a reminder in this discussion for me towards the end of the week and I will be happy to fill you in on what I have been able to find out about the new program and calculate a sample lease payment on this car for you using it.

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max19 · August 2005

Thanks! I appreciate it. Somehow I got the General Manager to honor the GMAC and the trade in value we agreed on in June. A lot of people cannot beleive this but somehow he will honor his word. So he says.

cyclone4evr · August 2005

Car_man,

Thanks again for the help, closed on the pilot lease past week-end. The residual (61%) and MF (.00119) were spot-on. Details were...

MSRP - $30, 635 + $1,050 (Tow Package) = $31,685
Negotiated Price - $28,600
Dealer also kicked in wheel locks, all mats, cargo net, cargo mat, pin stripes, fender flare guards, splash/mud guards, fabric and paint sealent, etc. for no cost.
Up Front Costs - $1,196 (Acquisition Fee, Sec Deposit, First Month Payment)
No CAP...zero down
Monthly Payment: $359 (includes sales tax)

One caution...Honda does not allow you to residualize the tow package (i.e. add to the MSRP and then calc the residual). It is simply added to the negotiated price (in this case, $27,550 +1,050 = $28,600). This added $30/mo to the payment, but it is basically a wash (36 months times $30/mo = $1,080 versus paying $1,050 outright for the package). Strange that Honda does this...it allows you to residualize step bars, Nav Systems, DVD Systems, etc., but not the tow package. :confuse:

Thanks again...enjoying the pilot.

kyfdx · August 2005

Congratulations on the Pilot... that is a great deal.. Especially considering that it could have been $330/mo. without the tow package.. Dirt cheap for a $30K car..

regards,
kyfdx

evan2 · August 2005

Car_man,

Thanks for the quick reply. I am looking at the RSX Type S version as well. I suspect that the difference in monthly payment will be small between the regular version and the type s version. Could I trouble you for the type s numbers? thanks

birdbird · August 2005

Several years ago we leased an Acura RL at 608.00 per month and $1,100.00 down. 39 month closed end lease. That was the total cost including licensing and everything. Nothing more. I think the manufacturer was providing a lease deal at the time. I think the sticker price was about 45,000 but the adjusted capitalized cost was 41802.99, 15000 miles per year.

Now we've been offered a lease on a 2005 RL which I think has a sticker price of about 49,000. The offer is 599.00 per month and $2600.00 down. 12,000 miles per year. Didn't ask about mileage after 12,000 (usually need about 15,000 per year, but it is probably the standard 15¢ per mile). That is the total cost. 36 month closed end lease. That works out to be a total of 675.00 per month if all is put into the payment with nothing down. No other charge. Sounded pretty good considering the sticker price of 2005 acura is about 4,000.00 more than the 2002.

Question is: I haven't heard of any manufacturer offered deals on an RL. Doesn't the above offfer sound fairly reasonable considering it is a more expensive car than when leased before? And chances are any manufactuer offer coming down would only be marginally better? Do you guess that the lease price could go lower by waiting another month or two? Possibly a new incentive or deal from the manufactuer to dealer coming down? Or, would the difference likely be very small by waiting? Have you heard of any lease deals coming down soon from the manufactuer? If you have a guesstimate of how much lower the price might go, it doesn't seem like it could be too much, do you think? Any guess, feeling or estimate you have might have would be appreciated.

mwhdev · August 2005

Car_man,

Can you tell me if Infiniti has continued the July lease program for the G35 into August? If not what is the current rate be for a 36 or 39 month lease @ 12k miles a year.

Thanks!

max63 · August 2005

Hi Carman, could you calculate a payment for me on an FX35 RWD. Sticker price is $45,160 with a purchase price of $42,600. I would like to lease it for 36 months and 12k miles per year. Also, what is the minimum down with zero cap reduction.

Thanks for your time and help!

krwest1 · August 2005

Does anyone know if the lease special on the S2000 will continue for August? It was set to expire on 8/1. Thanks.

liandyk · August 2005

Hi Carman,
I had asked a question regarding Murano S lease last month. I did not act soon enough (I have been told) . Supposedly leases for Aug are worse. I was told the money factor is worse, with a lower residual and they are now offering better deals on the 42 month vs 39 ( again from a dealer who never seems to tell the truth). Is this true, I'm not really inclined to lease a car 6 months past it's warranty.

Thanks again for the info!

omeganet · August 2005

Hello Carman,

I just read through a couple of hundred posts for the last hour and have learned a lot. Thanks so much for your help to everyone here. I am interested in getting the money factor and residual values for the following cars:

2005 BMW 525i - MSRP $46295 - Purchase $45848
2005 MB e320 4matic - MSRP $56890 - Purchase $54841
2005 Infiniti G35 Sedan - MSRP $35110 - Purchase $33273
2005 Cadillac CTS - MSRP $33585 - Purchase $33000

Also I didn't see much discussion on the leasing of used vehicles. I was originally thinking of trying to find a 1-2 year old vehicle like the above with less than 30k miles. Would that be a wise decision or is it pretty much the same financially to go with a new vehicle?

And one last question. I was originally planning on waiting until October to make a purchase which would give me some time to sell my current vehicle to a private party rather than trade in. Is there any pro or con on waiting? (I saw a thread that said August / September is the best time to lease)

CarMan@Edmunds · August 2005

I thought that I would drop a quick news item in this discussion before tackling today's questions. Yesterday Congress and the Senate passed a new law that will eliminate the vicarious liability issues that existed in states like New York. This is good news for New Yorkers because it means that the banks that have extremely high lease acquisition fees in their state will likely begin to reduce them to their normal fees. In fact, Volkswagen Credit and Audi Financial Services have already reduced their acquisition fees for leases in New York. It also means that the banks that were pushing balloon notes to New York residents may begin to offer them leases again instead. For more information on the new Highway Bill, click on the following link: House, Senate Approve Hwy Bill with Amendment Removing Auto Leasing Companies from Vicarious Liability.

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CarMan@Edmunds · August 2005

You're welcome max19.

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CarMan@Edmunds · August 2005

No problem cyclone4evr. Thanks for taking the time to stop back and let us all know how everything turned out. Interesting information about the inability to residualize the tow package. Enjoy your new truck.

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CarMan@Edmunds · August 2005

You're very welcome evan2. AHFC's lease money factors for the RSX Type-S are the same as the base model's, but the Type-S's residual values are 3% higher for 36 month leases. The higher residual value makes the Type-S's lease program even more attractive.

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CarMan@Edmunds · August 2005

Hi birdbird. Acura is currently providing $2,500 dealer cash on leases of the 2005 RL. Since the selling prices of leased vehicles are negotiable, it is important that you take this cash into account when negotiating your lease on this car. Chances are that the lease payment that Acura is currently advertising on the '05 RL leaves a little meat on the bone so to speak. If you shop around, there is a good chance that you will be able to beat the advertised deal by a little bit. Acura's current program for this car is scheduled to run through September 6th. It is difficult to say whether its future lease programs on the RL will be more attractive. I have a feeling that Acura is fairly comfortable with the $599 monthly payment that it is currently promoting and will try to maintain it.

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CarMan@Edmunds · August 2005

Let's take a look at Infiniti's new August lease program, mwhdev. If you were to lease a 2005 Infiniti G35 2WD Sedan through Infiniti Financial Services right now for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00140 and 59%, respectively. The numbers for an otherwise identical 39 month lease should be .00171 and 58%.

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CarMan@Edmunds · August 2005

Let's work up a sample lease payment on the vehicle that you are interested in for you and see what we come up with, max63. According to my calculations, if you were to lease a 2005 Infiniti FX35 RWD with an MSRP of $45,160 and a selling price of $42,600 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 $542.

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CarMan@Edmunds · August 2005

Krwest1, Honda extended its special lease on the S2000 that was scheduled to end on August 1st through September 6th.

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CarMan@Edmunds · August 2005

What you were told is correct, liandyk. Nissan is pushing 42 month leases of the 2005 Murano in August instead of the 39 month leases that it was pushing in July.

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rablaw · August 2005

Car Man,

Can you please post the money factor and residual value for a 2005 Ford Five Hundred AWD,Ltd with safety package and rear view warning for 24 and 39 month leases?
(I thought I would go with the Subaru Forester, but those seats are too uncomfortable, as another poster mentioned).

Thanks
rablaw

CarMan@Edmunds · August 2005

Greetings omeganet. Most of the brands that you are interested in getting information on did not introduce their August lease programs until late yesterday. I have not had an opportunity to take a look at them yet, but should be able to by the end of the week. Please post a quick reminder in this discussion for me in a couple of days and I will be more than happy to fill you in on what I have been able to find out about these vehicles' new lease programs. Talk to you soon.

I do not personally keep tabs on manufacturers' used vehicle lease programs, but I can tell you that given the lease support that is often available on new vehicle leases and the lack of support that is usually available on used vehicle leases it frequently turns out that there is not a big price difference, if any, between leasing a used vehicle and an equivalent new model.

The problem with waiting until October to lease any of the vehicles that you mentioned is by then the residual values on 2005 models will be fairly low. So low in fact that a number of these automakers may have pulled the plug on their lease support by then, deciding that the low residual values make it too expensive to provide attractive lease payments on them. You may have to lease similar 2006 versions of these cars that late in the year in order to get a decent monthly payment.

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CarMan@Edmunds · August 2005

Hey rablaw. If you were to lease a 2005 Ford Five Hundred Limited AWD through Ford Credit right now for 24 months with 15,000 miles per year, its base lease rate and residual value should be 3.5% and 58%, respectively. The numbers for an otherwise identical 39 month lease should be 5.25% and 48%. As you can see, Ford Credit publishes lease rates instead of money factors for the vehicles that it leases. You can convert its published lease rates into approximate money factor equivalents by dividing them by 2400.

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rablaw · August 2005

Thank you Car_man!

rablaw

rablaw · August 2005

Car_man,

I should have also asked, how would the lease rate and residual value differ for a 2006 Ford Five Hundred, AWD, Ltd? There may not be enough 05s to choose from
Thanks again.
rablaw

zoltanap1 · August 2005

I plan to lease a 530xi w/ Premium pkg, prem sound, cold weather pkg, Nav, and sport.

Will be my first lease. (Always purchased in the past.) Need some advice:

1) how can I ensure I get the best deal
2) how do I negotiate... based on the price of the vehicle.. or the monthly payments
3) what are the money factor and residual (for a 3 year, 10K mile) lease

Thanks!

thatguyjosh · August 2005

Car_Man,

I am interested in leasing a 2005 TSX and was wondering what Acura's leasing specials are. Also, I am looking to get into a 2 door, 4 seater (preferably an import) and was wondering if there are any good lease specials or a web site I can check every month when the new specials come out?

One other question, I've seen people say don't put money down when you lease. Is that different from the 'up front costs' like acquisition fee, sec deposit, first month payment?

Thanks,
Josh

ibs · August 2005

Hey carman, after looking at a bunch of vehicles last month the wife and I decided to wait until August to avoid doubling-up on our lease payments in July. We hope that the gamble either paid off in the form of better leases or at least no change from July. Can you confirm whether the following figure from last month still apply, or if they have changed (all leases for 3 years, 12K miles per year and in Wisconsin):

1. Toyota Sienna LE: Money Factor .0014; Residual 61%
2. Honda Odyssey EX: Money Factor .00245; Residual 60%
3. Honda Pilot EX: Money Factor .00119; Residual 61%

Is there any deal dealer cash or available rebates on any of these vehicles?

Thanks again!!!!

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