Lease Questions - Ask Here

sage23 · August 2005

Car_man:

I've noticed that you've mentioned that Dodge has some decent lease deals on the Grand Caravan SXT. Would you be able to provide me with the money factor & residual for this vehicle? Thanks a billion!

BTW, I'm in Wisconsin if that makes a difference.

dave328 · August 2005

Thanks for the info on Saab 9-5!

Dave

rozbor · August 2005

Car_man,

MSRP with dest charge for acura mdx is $40295.

thx a lot

sjmueller · August 2005

Car_man,
Thank you so much for your expert opinion. Turns out, my credit was not as good as I thought (Beacon 681). The deal changed because of this, but only by a couple of dollars. Here are the final numbers on my lease for a 2005 TL without navi:

Gross Capital Cost: $30508.34
Capitalized Cost Reduction: $238.72
Adjusted Capitalized Cost: $30269.62
Residual Value: $18855.20
Depreciation: $11414.42
Rent Charge: $4951.80
Total Base Payment: 16366.22
Number of Lease Payments: 42
Base Monthly Single Payment: $389.67
Sales Tax Monthly (Based on 6.5%): $25.33
Total Monthly Payment: $415.00

Here is the breakdown of the Amount Due at lease Signing:
CapCost Reduction: $238.72, Tax on this: $15.52
1st Month Payment: $415.00
Registration Fees: 120
Doc Fees + Tax: 637.94
FL Fees + Tax 72.82
Total Out of Pocket: $1500

So what do you think? Was this a good deal, or did it end up being only average?

scarlett987 · August 2005

Car Man - I'm addicted! I'm ready to roll into a new lease and can't stop reading the leasing forum.
I am thinking about an Acura RSX - I can't seem to find a pic of the '06 - Is there a large difference between '05 and '06?
When will the '06 come out and do you expect the 'support' behind them to be strong?
I have 3 mos left on current lease and can't wait to get out.
I know - many questions, but you always seem to have the answer!
Thanks

howard4 · August 2005

On their web site Audi is offering leases on 2005 A6 3.2 for 10K miles/yr starting at 569/mo with premium/conv pkg +tax. Any information on 15K miles and what current MF is? Feedback on recent leases since this has been announced? Thanks for help.

trishe · August 2005

Car Man

Thanks for your reply ... below is the revised info you needed in order to advise whether this is a good deal.

2005 Porsche Cayenne V6 Base

MSRP - 54,000
SELLING PRICE - 48,500
$2500 in total out of pocket startups - first month payment included in startup
39 month lease term
15,000 miles per year
745.50 monthly payment

Thanks for all your assistance ....

Bushwack · August 2005

Hi Car Man,

Would you please tell me if these numbers make for a good deal?

2005 Acura RL
MSRP $49,100
Destination charge $615
Negotiated purchase price: $43,000
Residual: 58% ($28,478)
Money factor: .00235
Lease term: 48 months/12,000 miles/yr
Sales tax 8.25% (Los Angeles)
Monthly payments: $392.04 + $32.34 sales tax = $424.38.

This will be my first lease so I find myself second and third guessing my calculations (in some ways buying my house seemed less stressful).

Initial out of pocket is first & last month payments and $3,170.90 for cap cost (totaling $4,000). I know it is preferred the cap cost be zero but for peace of mind Id rather have the monthly payment low. FWIW, my FICO is 740. Please advise if these numbers make sense.

Thanks for your time and the education I've received reading the past many, many posts.

dtr969 · August 2005

Where do you get your information with respect to "money factor" rates? I have been quoted .0030 and 60% residual on a 2006 330i. Does the money factor vary by State? By the way, my credit is solid.

lataste · August 2005

Car Man,

I just completed the deal and I am very happy with the result. My payment actually decreased even further because of my military non-resident discount. I think that I just got a deal of a lifetime...

Thanks again

CarMan@Edmunds · August 2005

Hello dubenez. Let's calculate a sample lease payment on the car that you are interested in and see what we come up with. According to my calculations, if you were to lease a 2005 Honda Accord LX 4-cylinder sedan with an MSRP of $21,090 and a selling price of $18,519 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 $211, which is a heck of a deal.

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CarMan@Edmunds · August 2005

Don't worry about it, jeeps4life. Community members leave out info all the time. As long as the Employee Purchase Price that you were quoted had the $2,000 customer cash that DaimlerChrysler is currently providing on the 2005 Jeep Grand Cherokee deducted from it, and it probably did, an additional $1,600 discount off of that is a heck of a good deal. You cannot use the fact that there are cash incentives out there that you do not qualify for to your advantage during negotiations. These incentives are paid for by DaimlerChrysler and have nothing to do with individual dealers. You cannot avoid paying sales tax on leased vehicles, if you are in a state that charges sales tax.

Let's work up a sample lease payment on the truck that you are interested in and see what we come up with. According to my calculations, if you were to lease a 2005 Jeep Grand Cherokee Laredo 4WD with an MSRP of $28,920 and a selling price of $24,274 (minus $4,000 in incentives for a cap cost of $20,274) through Chrysler Financial right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $227. The payment for an otherwise identical lease with 12,000 miles per year would drop to around $212.

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CarMan@Edmunds · August 2005

You're welcome lataste. Good luck.

Car_man
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CarMan@Edmunds · August 2005

Hi digitalgravel. This discussion is supposed to be about leasing, not financing, but I will answer your question quickly anyhow. The interest rates that you were quoted does sound a little high to me. Chances are that the dealers that quoted you these rates are marking them up to add additional back-end profit to your deal. My advice to you is to get pre-approved to finance the car that you want through a local bank, credit union, or a bank that conducts its business on-line, before doing any more negotiation on this car. Doing so will give you an idea of what sort of interest rate to expect and will possibly motivate the dealer that you are working with to beat the rate that you have already been approved at.

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CarMan@Edmunds · August 2005

Hi t_o_n_y. You never mentioned the selling price or MSRP of the vehicle that you are interested in leasing. 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 vehicle's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to work up a sample lease payment on the Pacifica that you are interested in for you if you let me know what these numbers are.

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CarMan@Edmunds · August 2005

Hey steve777. Unlike most banks which have 12,000 miles per year residual values that are 2% higher than their 15,000 miles per year residuals, Infiniti Financial Services' difference between its 15K and 12K residual values for any lease less than 4 years is only 1%. IFS charges $.15 per excess mile at lease end and $.10 per additional mile at lease signing. Consumers can only purchase additional miles at lease signing if they plan on exceeding 15,000 miles per year though.

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CarMan@Edmunds · August 2005

Hi tbird1. More often than not banks will not negotiate vehicles' purchase prices, but I still have seen tons of consumers negotiate lower lease end purchase prices on their vehicles. Give it a shot, you have nothing to lose. When you try to negotiate your vehicle's price deal directly with the bank that you are leasing it through and leave your dealer out of it. Give them a call a month or two before the scheduled end of your lease. If your initial contact at the bank is not willing to work with you, you may be able to get better results by working your way up the ladder to a manager. During your negotiations make sure to give them the impression that you are right around your mileage limit, not over and not under.

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CarMan@Edmunds · August 2005

I would be happy to give you an idea of what this van's current lease program is like, sage23. 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.

Car_man
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CarMan@Edmunds · August 2005

You're very welcome Dave.

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CarMan@Edmunds · August 2005

Thanks for the additional information rozbor. Let's work up a sample lease on this truck and see what we come up with. According to my calculations, if you were to lease a 2005 Acura MDX Touring without the navigation or entertainment systems with an MSRP of $40,295 and a selling price of $35,500 (which looks attractive to me) through American Honda Finance Corp. right now for 36 months (this is the longest term that the special lease program is available for) with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $453. If you decide not to take advantage of the special lease program and lease this truck for say 48 months, the payment would drop to around $443.

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CarMan@Edmunds · August 2005

Sjmueller, it looks like you did very well. Enjoy your new car.

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CarMan@Edmunds · August 2005

I'm glad that you find this discussion so addicting scarlett987

. I am not all that familiar with what changes Acura has in store for the 2006 RSX, but you should be able to find out by visiting the following discussion: "Acura RSX (All years/types)". Acura has been providing a decent level of lease support on the 2005 RSX for quite some time, so unless the '06 model has some radical changes that are extremely well received by the general public (which is unlikely) I suspect that Acura will continue to provide an attractive lease program on it.

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CarMan@Edmunds · August 2005

Greetings howard4. Audi Financial Services' special lease money factor for the 2005 Audi A6 3.2L sedan is currently .00110 for leases up to 36 months in length. I would be more than happy to calculate a sample lease payment on this car for a lease with 15,000 miles per year, but in order for me to do so I need you to provide me with its MSRP and selling price. This information may be available in the fine print of the advertised car that you mentioned.

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CarMan@Edmunds · August 2005

Thanks for the additional information trishe. You certainly are getting a substantial discount on this truck. Let's calculate a sample lease payment on it using Porsche Credit's current lease program and see what we come up with. According to my calculations, if you were to lease a 2005 Porsche Cayenne S with an MSRP of $54,000 and a selling price of $48,500 through Porsche Credit right now for 39 months with 15,000 miles per year, its zero down, pre-tax monthly payment should be around $740. As you can see, the payment that you were quoted for this truck looks about right.

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CarMan@Edmunds · August 2005

Welcome Bushwack. 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.

The selling price that you were quoted for this car and the lease money factor that is being used to calculate its monthly payment both look reasonable to me. The monthly payment looks good as well. As long as you like the car, and what's not to like - it's great, I don't see any reason not to lease it for $425 per month, including tax. Of course, as you are already aware I don't like cap cost reductions though.

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CarMan@Edmunds · August 2005

Dtr969, BMW financial Services' lease program is national and does not vary by state. It sounds to me as though the dealer that you are working with is trying to mark-up BMW FS' buy rate money factor for this car to add additional back-end profit to your deal.

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CarMan@Edmunds · August 2005

I'm glad to hear that everything worked out well for you, lataste. Enjoy your new car, I know I would - I love the G35 Coupe.

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tbird1 · August 2005

Thanks for the input Car Man.

petal1 · August 2005

I'm new at this game..." Car man " please help!

2006 BMW 325i lease

MSRP - $36 270
Cap/C - $35 770
Miles - 12 000
Destination - $695
Residual 63%
Money Factor - 0.00295
Down payment - $3000 total
36 month
monthly payment = $529.53 tax included

does this sound fair or is there anything else I can do.

atfryar · August 2005

Thanks for the info car_man. Let the negotiations begin!

kyfdx · August 2005

$48,500 at 5% for 60 months is only $915/mo.. I think I would do that, before leasing at $745/mo. for 39 months...

I don't think the spread in payments is worth leasing... Not even 20% less...

regards,
kyfdx

jeeps4life · August 2005

Car_man,

Yes, the dealer is taking $1600 off of the EP Price $25,874, then taking another $2000 off (the Cons Lease Cash from Jeep), and then another $2000 for a Trade-in rebate bringing Cap Cost to $20,274.

Thanks for your help, I feel better knowing that I already have a good deal on the table without further negotiating.

Regards,

Keith

Bushwack · August 2005

Car Man,

Thanks for the confirmation on the lease for the Acura RL (posts 23,103 & 23,120).

One more assist from you if I may. Im also considering leasing a
2005 Cadillac STS. The information I have for you is:

MSRP: $50,415 (STS V6 w/ Luxury performance package & 18" Wheels)
Negotiated price: $44,300 (includes GM discount & $695 destination charge).

Could you please tell me what the residual & money factor should be? Would these figures be the same whether going with a 48 month lease & 12,000 miles/yr (which is preferred) or a 36 month/12,000 miles/yr?

Lastly, with both Acura & GM incentives scheduled to end Sept 6., would I be better off closing a deal at the very end of this month or on Sept 6?

Thanks again.

rozbor · August 2005

thanks a lot car man

spacemagnet · August 2005

I currently own 2004 VW Touareg and am considering getting a newer model with less miles. I am wondering if leasing is better option than buying outright. I have never leased, only bought all my cars so its new ground for me. Both my wife and I have our own buisnesses so we could deduct the lease. I tend to put on alot of miles so I would need at least 15k a year for miles. Anyone have any info on which might be better? Thanks

mazda04rx8 · August 2005

I may be coming late into this but, to really compare should you not compare the payments based on the same period of the lease? The payments may only be 20% higher to purchase but you are using a 60 month term for the loan.

Also the lease payment most likely includes sales tax which on a purchase would have to be added to the loan amount or at least result in additional cash out of pocket.

If you want to use a 60 month payout I would amortize the loan and see what the balance is after 39 months, and compare this to the residual value of the car to purchase. Depending on the numbers then you can decide whether it makes more sense to purchase or lease the vehicle. The payment difference is not the real issue here.

Thanks for listening.

kyfdx · August 2005

You are correct.. it is not an apples to apples comparison...

But..

I don't believe her lease numbers included tax, as Car-man came up with virtually the same payment sans tax..

And... as a rough rule of thumb... a 36 month lease payment should be at least 30% less than the comparable 60 month finance payment... both assuming no downpayment...

That wasn't meant to imply that the two payments are apples to apples, just that when they are less than 20% apart, you are likely to be much better off with the 60 month loan..

Also, you can't really use the lease residual vs. the amortization on the loan as an apples to apples comparison, either.... As any car that depreciates over 50% of MSRP over three years is likely to be a poor choice to lease, anyway..

The best numbers to compare... MF on the lease vs. APR on a loan... And, residual on the lease vs. real world expectation ..

Anyway... the 30% less is just a rule of thumb.... comparing a 36 month lease vs. a 60 month finance payment.. If your payment isn't that much lower, then it is likely that one of the other comparisons listed above is the reason...

regards,
kyfdx

ibs · August 2005

Hey ibs. I have not personally seen Toyota Financial Services' lease program for the 2005 Sienna in its Chicago region, your area, this month. Having said this, the money factor that you were quoted to lease this van are in line with the August lease programs that are available in a number of other areas and seems reasonable. I should be able to tell you exactly what this vehicle's residual value is like if you let me know how long you want to lease it and how many miles per year you need to drive it again.

Sure. We're looking at 3 years 36,000 miles on the Sienna LE

vitb6 · August 2005

Ok I am ready to lease a new car. Went to the BMW dealer to look at the '06 330i. Love it. I wanted to start to negotiate a 48 mo lease, 15K miles, 3K down on a price of $40,000. The dealer didn't even want to price out a lease because he said that the MF wasn't even competitive right now and the rates are astronomical. He said that next month the MF will be much lower and I'll be able to save $150-$200 per month off of the lease.

First of all is this true?

Secondly, how much would I anticipate paying on this car. I really want my payments to be less than $500/month. What do you think?

VitB6

abarda · August 2005

I live in New Jersey and am going to lease a 2005 Tundra SR5 Double Cab
Could you provide me with the following please:

Money factor, lease residual percentage, and acquisition fee for a 36 month/36k mile lease? also for 36mo/45k miles

Also, should I have the taxes rolled into the lease or pay them upfront? I think that the money factor will be less than 2% (it seems like it doesnt matter when i pay them) Thanks for your anticipated timely response.

Andrew

skideeppow · August 2005

I have leased a 04 z 71 tahoe with an allowance of 15000 yr. I am not driving it at all (i have put about 17500 mile on it) and am wasting the mileage as well as my money. I have 17 months left, i am paying 429 month.
I called the guy i am leasing from and he has found someone who will buy out the rest of my lease for 25,800, my buy down amount is 27307 for a difference of 1507, I need a car so should i just get out of the lease and get a car from someone else, or should i stay with him and purchase another vehicleand do all the financing through him on a new lease, with lower mileage and a more fuel efficient car. I was looking at a subaru vdc outback. I trust this guy but i do not know if it is smarter to get the new car used somewhere else.
Any suggestions?

carnag · August 2005

Car Man,

I was wondering what the residuals, MF are for the following with 10-12k/yr and 36 months:

2006 BMW 325/330i and 2005 Infiniti G35 sedan Auto or manual for both.

Also, do you think the rates may improve in the next few months? Do you also know if Infiniti has gap coverage like BMW?

I've seen BMW's offer on the 325i for 399/mo, but what is the $2,500 down payment? Cap cost reduction?

Thanks for the help

djocks · August 2005

I see BMW is beginning to push the 325xi sport wagon. Do you know if they are offering lease programs on them yet and if so, what might they be?

Thanks, djocks

tguerino · August 2005

Carman,

Can you please tell me the residual value and money factor BMW is currently using for a 2006 BMW 750i for a 36 month lease with 12k mile per year. Also, can you tell me the residual value and interest rate if I go with BMW's Owners Choice program (similar to lease, but you own the car and have a balloon payment at the 36th month). Thanks in advance for all your help!

uconnhusky · August 2005

Hello,

I am looking to purchase a 2005 Inifiti g35x. I just finished college and this is my first car purchase!!!! My lease would be 36 months long for 15,000 miles a year.

I'm planning on visiting my Inifiti dealership in the next couple of days with more information. I was there today to find out my money factor and they gave me .0013. They also told me the residual, which is 58%. Would this sound right?

I'm going back with the invoice price I found here on Edmunds, which is 35,598. From my research I see that the acquisition fee would cost me $550. I understand that I also have to pay a security deposit and first months payment. Do you know how much the security deposit is? Also, are there any other fees I should expect to pay?

My goal is to only pay for my the security deposit and first months payment upfront and roll the acquisition fee into my lease payments. I dont want to pay any more than a $1,000 upfront. Does this sound good? Thank you so much, this site is great!!!!!!!

Best Regards,

Uconn

angelm · August 2005

I HAVE HEARD RUMORS THAT A CRX IS COMING OUT AROUND 07 I WAS WONDERING IF ITS TRUE :confuse:

trishe · August 2005

Car Man

I want to thank you for your input. I pulled the trigger on this deal as I felt it was a great deal as well.

dpham · August 2005

When I register a lease vehicle I have to pay the taxes on the purchase price. What is the taxes with the least payment then? It would seem to me that I'll be paying double taxes. Is this right?

CarMan@Edmunds · August 2005

No problem tbird1.

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CarMan@Edmunds · August 2005

Hi petal1. You did a good job providing a ton of important informaiton on this deal in your post. You are only being given around a $500 discount on the new BMW that you are interested in. If there is a decent level of competition for your business in your area, you may be able to beat this price. Stop by the following discussion to get an idea of how much others are paying for similar cars: "BMW 3-Series: Prices Paid & Buying Experience".

Furthermore, BMW Financial Services current buy rate lease money factor for a 3 year lease of a 2006 325i is only .00250. The money factor that was used to calculate your car's payment is higher than this. I suspect that the dealer that you are working with is marking up BMW FS' base lease money factor for this car to add additional back end profit to your deal. This is perfectly legal, but usually can be avoided through negotiating or shopping around if you know what the lowest possible factor for your car is.

Besides the selling price and money factor, another thing that I notice about your deal is the large down payment that you are making. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your 3-Series would be exactly the same, regardless of whether you had put $3,000 down, or had made absolutely no down payment at all.

The bottom line is that I believe you can do better by negotiating more or shopping around.

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