Lease Questions - Ask Here

CarMan@Edmunds · August 2005

You're very welcome atfryar. Good luck in your negotiations.

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CarMan@Edmunds · August 2005

You're welcome Keith. Let me know if you think of any other questions.

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CarMan@Edmunds · August 2005

No problem Bushwack. Let me begin by saying that GMAC publishes what are known in the industry as lease rates instead of money factors for the vehicles that it leases. You can convert its lease rates into approximate money factor equivalents by dividing them by 2400. GMAC's base lease rate for the 2005 Cadillac STS V6 is currently 4.2% for both 3 and 4 year terms. Its 12,000 miles per year residual values for these terms are 58% for 3 years and 49% for 4 years.

It is difficult to say what GM's and Acura's incentives incentives will be like when their current programs expire after Labor Day. If I was in the market to lease either of these vehicles and didn't need to wait to finish out an existing lease, I personally would pull the trigger now.

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CarMan@Edmunds · August 2005

No problem rozbor.

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CarMan@Edmunds · August 2005

Hi spacemagnet. Volkswagen has an attractive lease program on the 2005 Touareg right now, but it also has attractive incentives for vehicles that are financed or paid for with cash as well. As a result, whether you should lease this truck or buy it is more a matter of personal preference than which is the better deal.

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CarMan@Edmunds · August 2005

Thanks for the additional information ibs. According to the latest information that I have seen, if you were to lease a 2005 Toyota Sienna LE through Toyota Financial Services right now for 36 months with 12,000 miles per year, its residual value should be 61%.

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CarMan@Edmunds · August 2005

I agree, vitb6, the 2006 BMW 330i is a very nice car. Dealers are always trying to create a false sense of urgency to convince consumers to purchase or lease vehicles ASAP. If the dealer that you spoke with told you that you would actually be better off waiting until next month to lease this car then there is a good chance that this car's lease program will indeed improve. I would be more than happy to work up a sample lease payment on the car that you are interested in using BMW's actual August lease program, however in order for me to do so I need you to provide me with its MSRP (with the destination charge added in).

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CarMan@Edmunds · August 2005

Greetings Andrew. If you were to lease a 2005 Toyota Tundra SR5 Double Cab 4WD in your area right now for 36 months with 15,000 miles per year, its base lease money factor and residual value should be an amazingly low .00001 (that's as close to 0% as one can get on a lease) and 61%, respectively. The residual value for a lease with 12,000 miles per year would be 2% higher. If I was going to lease this truck in your area right now, I would have the sales tax rolled into the monthly payment.

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CarMan@Edmunds · August 2005

Hi skideeppow. It is usually fairly expensive for consumers to get out of their leased vehicles well before the scheduled ends of their deals. To a certain extent vehicle's residual values, an in turn their lease-end purchase prices, are based upon the number of miles per year that lessees are allowed to drive. There is an chance that your Tahoe will be worth more than it would cost you to purchase it at the end of your deal if you have very low mileage on it. You can always continue leasing your truck and then investigate whether you can make up for some of your unused mileage by purchasing it at lease end and selling it, trading it in, or continuing to drive it.

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CarMan@Edmunds · August 2005

Let's take a look at the lease programs for the cars that you are interested in, carnag. According to the latest information that I have seen, if you were to lease a 2006 BMW 325i through BMW Financial Services right now for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00250 and 63%, respectively. The numbers for an otherwise identical lease of a 2006 BMW 330i should be .00250 and 62%. Leases of either of these cars with only 10,000 miles per year would have residual values that are 1% higher.

If you were to lease a 2005 Infiniti G35 sedan 2WD 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. Again, this car's 10,000 miles per year residual value would be 1% higher.

There are rumors going around that BMW's lease program on the 2006 3-Series will improve in September, but I do not know for certain that this will happen. It is difficult to say if Infiniti's lease program on the G35 will get any better next month.

I believe that Infiniti Financial Services automatically includes gap insurance with its leases, but it would be best if you checked with them directly or your dealer to make certain that this is the case.

Yes the $2,500 down payment that you have seen in BMW's advertised lease is a capitalized cost reduction. Consumers can and should always lease vehicles without making any sort of cap cost reduction. Of course, leasing the advertised car without a down payment would make its monthly payment increase.

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CarMan@Edmunds · August 2005

Hi djocks. Are you talking about a 2006 model? I have not seen BMW's lease program for the 2006 version of this vehicle yet. I suspect that there will not be much in the way of lease support on it when it is first introduced.

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CarMan@Edmunds · August 2005

Here is the information that you are looking for, tguerino. If you were to lease a 2006 BMW 750i through BMW Financial Services right now for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00250 and 58%, respectively. Unfortunately I have not seen the details of BMW FS' balloon note, aka Owner's Choice, program lately.

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CarMan@Edmunds · August 2005

Congratulations on your graduation Uconn. That's quite a nice car you're looking at for a first vehicle. The lease money factor and residual value that you were quoted for it look about right. The security deposit for this car would be equivalent to its monthly lease payment rounded up to the nearest $25 or $50 increment. The acquisition fee that you mentioned and the security deposit are the only fees that Infiniti Financial Services will require you to pay on a lease of this car. You probably will have to pay other state taxes and fees. You are being smart by only paying the security deposit and first month's payment at lease signing. It sounds like you have a good grasp on how to get a good deal on a lease of this car.

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CarMan@Edmunds · August 2005

Hello angelm. I think that this is a more appropriate question for the Future Vehicles Forum. You stand a much better chance at getting an answer to it in that section of this site.

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CarMan@Edmunds · August 2005

You're very welcome trishe. Enjoy your new ride!

Car_man
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solaraman2003 · August 2005

Car_Man,

I'm 2 years into a 39 month lease of a 2003 Toyota Solara.

I'm considering ending lease early and getting into purchase or lease of 2005 or 2006.

My original salesman said that I CAN get out of lease now and get into new car by using the leased vehicle as a trade-in.

I would actually prefer to purchase/lease from a different dealership, if possible.

Question1: Is this original dealer that leased me this car (via Chase Auto) in any position to give me any better of a deal on a lease/purchase (& trade-in) than any other dealer?

Question2: Would I be in any better of a position if I were to do my next lease OR loan with Chase Auto (my current leasor)?

Thank you

dubenez · August 2005

I appreciate your help! In regard to leasing a Honda Accord LX with a selling price of $18,519 (MSRP of $21,090) I tried to get a quote on a lease payment and the dealership offered me $2,000 down with a monthly payment of $227 for 36 months, 12,000 miles. I didn't get any details other than that. Perhaps they didn't base the lease on the selling price they initially gave me? I guess I am confused because the advertised lease that Honda offers for an LX is $199 a month with over $2,400 down. How is it that I could get the car for less than that? As you can see, I am new to this. Thanks again so much for your help.

birdbird · August 2005

Hi Car_Man,

When leasing a 2005 RL through Honda Finance, can you add on an accessory such as a spoiler (really helps the otherwise bland appearance of the RL, improving its profile) and should be be listed in the lease so you don't get into any problem when you turn the car in? Or, how does that work? Same thing on Acura's optional back up sensor and steering wheel? Also, is it best to negotiate a lease price without these accessories first, and then offer to add onto the lease payment the amount that the parts department gives you on each item (cost of accessories divided by 36 months) and try not to let them include installation cost? Can accessories usually be rolled into the the monthly payments like tax, etc. if you don't want any down payment?

They tell me at parts department that the spoiler must be screwed in. Is that a problem for the finance company or does it complicate the lease, or would they normally even do it?

Any advice on how to handle accessories you might want on a lease would be much appreciated!

kyfdx · August 2005

You definitely want to negotiate any accessories at time of purchase... If they are genuine Acura accessories installed by the dealer before purchase, they may even be able to residualize some of the cost (but, not much of it).

You can also probably negotiate a better price upfront... later, you'll have to pay retail, plus installation.

As long as they are all Acura accessories, you won't have to worry about drilling holes, etc.... Just be aware that this can really jack up the price of your lease, if the accessories can't be residualized.. You are only paying for 40% of the base car on a lease, but you'll be paying 100% for the un-residualized accessories.

And, no... it doesn't complicate the lease for the dealer... it just might cost you quite a bit more..

regards,
kyfdx

bdr127 · August 2005

If you are looking at the BMW 325i, you might want to consider a 24 month lease.... With a very high residual (10k=76%, 12K=75%), you can have a lower monthly payment with a 24 mo vs 36 mo on the 325i. FYI

Bushwack · August 2005

Thank you Car Man for the information (re: post 23,128 & 23,148). Seems like a 3 year term is the far better deal for an STS (then a 4 year).

Going back to my lease question on an Acura RL (posts 23,103 & 23,120 ), please confirm that the residual is 58% for a 48 month term. After seeing a 49% residual for the same term for a Cadillac STS (selling price for both cars are nearly equal), it just seems too obvious which lease is the obvious choice (from an economic perspective).

Ill wait for a confirmation on the Acuras residual before I seal the deal.

Thanks again!

carnag · August 2005

Thanks for the tip, I'd have no problem doing a two year lease if possible. By the way, do you know if that would apply for the 330 as well and if infiniti offers 2 year leases? I know BMW is pretty good with regards to lease options.

sphere99 · August 2005

36 months and 15k miles and also for 39Kmiles and 15k miles.
Thanks! Also if you could, what would the payment be for 36 months with a selling price of $35,885 with zero down but first payment? oh and I live in texas (full taxes

)

birdbird · August 2005

I think the spoiler for the RL listed at acura's website is about 378.00 or something, I can't remember exactly. I was assuming that I would just divide that amount by the 36 months of the lease and and ask them to add that amount to each payment (as mentioned, I expect them to roll everything including tax and license into the payment with no down payment as I am pre approved for the lease). They wouldn't be likely to put a spoiler on at a cost that is less than is at their website would they? So is there any real negotiation to be done here? I think the wood steering wheel and back up sensors would be nice, but I know what you mean by how adding that all in would really jack the price up, so I was thinking about just the spoiler as it seems to really improve the bland look of the RL. In fact, I've noticed a couple dealers in this area have put spoiler on the cars they're try to sell!!!!!Any addition thoughts from you and/or car_man would be greatly appreciated.

tim62 · August 2005

Hi,
My Land Rover Discovery lease is up in Nov. I'm not real familiar with leasing....just wondering...can I return the vehicle to another dealership (i.e., Chevy, Toyota) if I am interested in leasing/purchasing a different make car? In addition, what should I expect from the car inspection? Is it better to just go back to Land Rover? HELP!! :confuse:

kyfdx · August 2005

If you want the spoiler, make it clear from the beginning, and have them include it in any negotiated sale price of the car... Don't try to separate it from any part of the deal...

You are likely to get it at the lowest possible price, that way, and you won't have to worry about what their costs might be...

regards,
kyfdx

t_o_n_y · August 2005

Sorry Car Man - I indicated it was employee price with a $2K rebate with no options. That translates into the following:

MSRP w/destination: $25,345
Less employee discount: ($2,648)
Less rebate: ($2,000)
Equals purchase price: $20,697

Hope this helps.

crandleman · August 2005

Car_Man,

I am looking at getting the following two cars. The first is a Jeep Grand Cherokee Laredo 4x2 with a MSRP of $27,050. The second is a Honda Civic Value Package with a MSRP of $15,460.

What would be a good price to get these vehicles at? I have been quoted $22,368 (I see others on here getting prices of $20,500) for the Jeep and $14,500 for the Honda. What would be a good monthly lease price on a 36 month term, 12,000 miles and $0 down for each vehicle?

I have gotten three or four dealers to give me a price for the Honda. The prices were all around $225 per month with all tax, title & license included. This seemed to be a little high to me. They were using a money factor of .00081 and a residual of 53%.

What would the money factor & residual be on the Jeep?

Thank you so much in advance for all of your help.

Chris

abarda · August 2005

Are the residuals different for the Double Cab limiteds? If so, could you provide me with the numbers?

carnag · August 2005

Car Man,

I was hoping you could "crunch" some numbers for me.

2005 G35 2wd sedan MSRP of $34,710, Price negotiated $31,800 (Sound good?)
36 month lease, 12k/yr and IL sales tax of 7.75% rolled into payments. Tags, security, etc only up front.I come up with a payment of around $463/mo. Does that sound right, and if so is it a "good" deal?

Also, What if I was to purchase this vehicle with Infiniti's current offer of 3.99% for 60 months what would my payments come out with the above info? Would I be better off to purchase or lease?

Thanks again, and once I get some BMW numbers I'll probably be back with more questions, but at this point it appears the Infiniti will be a much better deal. Tough to do for a current 3 series owner : )

Carnag

kyfdx · August 2005

Finance payment for 60 months at 3.99%... with 7.75% tax .. is $631/mo.

$31800
$2465 tax

$34,265 total

nick24 · August 2005

I leased an '05 Volvo V50 in Dec. It is a great car but too small for my family.We live on a lake and have always had an SUV.We now find that this car is too low to the ground for our lake access road also. I would like to switch to the Volvo Cross Country but my dealer indicated it would be extremely expensive to break said lease and then lease the Cross Country. Any insights would be appreciated.

uconnhusky · August 2005

Thank you for responding Car Man.

I called Infiniti today because I couldn't make it to their showroom. I told them that I wanted to pay nothing more than fees and first month deposit and security deposit up front for my car. I also told them that I wanted to roll my acquisition fee into the monthly payments. They said fine and gave me a monthly price of around $512.00 a month. It seems as if they are trying to rip me off.

I also asked the salesperson for a list of fees I would be paying up front not including the acquisition fee so I could crunch the numbers myself. The salesperson told me that the manager couldn't give out this information????

Also, I was just wondering if I should even pay for security deposit considering my credit score is around 730, or is that too low?

2005 G35x for 36 months at 15,000 miles a year

MSRP: $38,910

Invoice: $35,598

Money Factor: .0013

Residual: 58%

I might be young and everything, but I really watch my finances and have good credit, so I dont want these guys at Infiniti screwing me around!!!!!!! Please help Car Man

Thanks,

Uconn

samsone · August 2005

I am looking to lease something small and all wheel drive. I was thinking the Subaru Impreza Wagon or OBS, Saab 9-2x, CR-V, or RAV-4. I'm looking for a payment under $275 a month. What do you think I could get the best deal on for no money down and 24-36 month lease. Would you please include the lease numbers for whatever you recommend?

Thanks!

imacamdoc · August 2005

I am looking to lease a Nissan Murano for 36 months. As it is the end of the sales year, is there a general rule for leasing? In other words, am I more likely to get the better lease payments for the 2005 or the 2006 model? It would seem to me that, 3 years from now, the residual value of a 2005 will be less than the 2006, or is that too simplistic? Are there other factors which influence that decision?

smetzler · August 2005

I'm new to leasing. I have read a number of articles, but not sure I'm doing the numbers correctly.

I currently have a car payment of $444 that I have to make for another four years. I also have around $5,000 negative equity in the car. I was hoping to get a two or three year lease, turn the car back in and basically be at a starting point with no negative equity being transferred from car to car.

Is the amount I am going to pay the for lease on the amount I used during the two years of a lease? If I buy a $25,000 car and the residual value is $12,500 (50% of the MSRP), I'm only paying on the $12,500 (what I used during the two years). If I had $5,000 in negative equity, then it would be $17,500 that I would be paying on plus fees. Am I incorrect? I'm trying to get an idea if I'm understanding the numbers correctly.

For example, I plugged these numbers in some on-line calculators and found I got a payment of around $481 + $32.48 (tax) for $513.48.

MSRP - $25,000
Base Cap Cost (assume they give me $3,000 off) - $22,000
Costs Added to Lease (taxes, feed, negative equity) - $6,000
Cap Cost Reduction (assume no down payment) - $0
Adjust Cap Cost - $28,000
Residual Value (assume 50% which I know may be high) - $12,500
Money Factor - 0.00125 (3%)
Term - 36
Sales Tax - 6.75%

Any help would be greatly appreciated Thanks

Shawm

dloschiavo · August 2005

I am looking to lease an '05 Corolla CE with automatic transmission. I approached this by emailing the dealers in my area (Buffalo, NY) offering to sign a 3 year lease today based on invoice price ($13,484 I believe).

One dealer told me that Edmunds is incorrect and you have to add appr. $1000 dealer incentive???? or something like that. He is coming up with a monthly cost of $225 on his $14,500 BS invoice price.

I figure this
$13484 Invoice
$2000 down
$750 fees, registation, security
$500 trade in
3 years
51% residual
2.9% interest
8.25% tax
$200/month appr

Does this sound right? I am 100% new to this and I appreciate any help

steveo2 · August 2005

I have several questions on the Toyota Tundra lease specials. Are they available in my region (Ohio) and for how long? I have seen the recent posts for Tundra DC 4X4's, but what are the money factors and 36/15000 and 48/15000 residuals on Regular Cab, 2wd basic trucks? What about Access Cab 2wd or V6 models. I understand there is a $2000 incentive on certain models. Can this be combined with the lease special?

Thanks

earcom · August 2005

In the, Audi A4: Prices Paid & Buying Experience forum there is a report of an Audi A4 lease program (post #444) on an 05.5 A4 2.0T 6MT Quattro with a Money Factor = .00092 and a residual at 53% (42 months at 12K per year or 1% lower for FWD.) Would it be possible to confirm that this is either a national program or a program that is available in Utah?

Also, do you know if the $1000 Owner Loyalty customer bonus cash on 2005.5 A4s is available to current VW Passat owners? The Edmunds description says it is limited to current Audi owners?

Thank you very much for all of the assistance provided to everyone in these forums.

djocks · August 2005

Car_Man,

I sent an inquiry to D&M leasing about the upcoming car I am eventually going to need. Is there any pitfalls I should be aware of or is this and other independent leasing companies reputable?

thanks,
djocks

cartfan1 · August 2005

Hi. I just leased a 2005 WRX when I lived in SC. I moved to NY right after I bought it. My payment was $310 a month ($297 depreciation + $13 tax). Now it seems the payment has changed to $313 a month ($262 depreciation + $51 service charge). I called Chase and nobody there could tell me why it changed or what the service charge entails. Over the 48 month lease that means I'm pating $760 more than I was originally if you figure the original amount INCLUDED tax and the new amount doesn't. Any idea what is going on here? Please help. :sick:

marcz · August 2005

I'm looking to lease a fully loaded 2006 Land Rover LR3 HSE; either 3 or 4 years, 15,000 miles per year. Do you have information on the money factor and residual value for each? Thanks for your help.

dino001 · August 2005

Why would you do something like this to yourself? I don't know if your numbers are exactly right (the math looks reasonable to me, but I am not an expert), but your both money factor and residual seem to be quite optimistic.

So lets see what you get after the imaginary lease expires:

1. Higher (!) payment for next three years: ($513-$444)*36=$2484 more (!!!) in payments. (and it assumes very favorable lease terms!).
2. Zero equity vs. possible small equity on your current one (or perhaps very small negative equity if you were to trade your car to a dealer). I assume $444/mo is a loan. Equity comes late in your case, but it will come. I assume it was zero-down deal, thus your car was probably about $20-23K sticker (depends on interest you are paying). You can check your expected depreciation in Edmunds. Say it will be -$500 to +$2000 on the trade-in value, it all depends on the car you own. Thus, in your current loan you'll still owe something like $4500 and the car will be worth probably $4K-7K, depending on the make and model. Your $444 could also be on smaller load w/higher interest, but that would mean you are subprime borower and would definitely not qualify for good lease terms.

So let me get it straight: you are entertaining to pay extra $3500-4500 (or even more if the lease turns to be higher than expected) just to drive something one year newer and have nothing to owe after three years. Plus, you tie yourself for those three years (you can always sell your current car, even if you have negative equity - try to do it with the lease!).

Boy, I want a car dealer job next to your house

I don't want to sound to judgmental, but I beg you - look at your own post again and this time stop thinking about new car smell and start about your bank account. And you'll know the answer...

smetzler · August 2005

Thanks for the candid response. I really appreciate it. I need to rethink things based on your comments.

The car I have is a 2003 Hyundai SantFe LX with a 2.7 Litter (all the bells included). Right now I am getting around $12,500 for it which turns into around $5,000 in negative equity (I owe $17,500).

Right now I'm looking at a Trade In value (according to Edmunds) of $9,396 - $13,892 for trade in. Where do I find in Edmunds the value of the car in one year, two years, three years from now? I can't find it.

Thanks

Shawn

scott_barrett · August 2005

Thanks Car_man,

Here's a follow-up question:

The sales rep at Acura gave me the internal lease sheet, which has lots of good info on it, including invoice price, profit, etc. It does show three credit tiers. However, I spoke to the Finance Manager about my concerns (w/o allowing him to pull my credit, which can lower scores even more I guess), he told me that AHFC doesn't use traditional credit scores, but uses past auto loan finance history to calculate their own score. Does that make any sense/have you ever heard that?

Thanks.

dino001 · August 2005

Santa Fe is a relatively new model so it may be harder to find. How about "true cost to own" link? If it's there, it should have some depreciation info.

bdr127 · August 2005

Every state is different in the way they handle leases..... With my current lease, I have lived in MA, CT, PA, and now NC. My payment has ranged everywhere between $425 and $475. I believe it was CT that had a "fee" or something in addition to tax.... NC now is the cheapest of the bunch.

jkbarry · August 2005

In the past Ive leased most of my cars
'95 Pathfinder
'97 Pathfinder
'01 Pathfinder
I decided in 8/03 to puchase a 2003 Murano because I usually went over on my miles and I didnt want a hassle at the end of my lease. Now I have 49,000 miles on my car (only 2 years old) and I still owe $24,000 on my car which would put me upside-down on a trade in. Do I keep making car payments until I am on the right side or should I get out of my vehicle now before I have to start putting $$ in upkeep. It currently needs new tires ($700 right there) and brakes and 60,000 maint are right around the corner.

Am I crazy to go back to leasing if I put 20,000 + miles per year?

crandleman · August 2005

I have been car lease shopping the last two days and it is just ridiculous out there. I have gone to three seperate dealers with the same scenario. I want to lease a 2005 Jeep Grand Cherokee Laredo 4x2. The MSRP is $27,050 and the Cap Cost price is $20,800. I am asking them for a 36 month lease at 12,000 miles.

The first two came back and said it would be $400 per month with all of the tax,title & license. I almost lost it. I currently have a 2004 Jeep Grand Cherokee Special Edition that I bought at 4.5% with $23,000 financed and my payments are only $428 per month.

I asked them how in the hell can a lease for a vehicle that is cheaper than the one I own cost me only be $28 less. They all look at me dumbfounded. I told them to go back and give me the tier 1 credit rate from GMAC (50% residual & .00185 money factor) and they still come out wanting $340 per month.

Am I wrong or are they using some kind of Alien math? They must really think consumers are dumb. Let me know what you guys think.

pete5754 · August 2005

I have the opportunity to buy a new car at a great price, but it has to be within the next week. I am leasing a Saturn that needs to be returned by 12/08/05. The front tires need to be replaced but I don't want to buy new ones, so am looking to put on some used ones. I only have 33500 miles on it but am allowed 45000. What are my options? Anyone have any suggestions about the tires? Can I bring it back to the dealer early and not have to pay any more on the lease? Thanks

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