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  • petesamprspetesamprs Member Posts: 25
    This is a good question that I'd like a definitive answer to as well. Is destination included in MSRP when calculating residual value?
  • qbrozenqbrozen Member Posts: 32,889
    its probably even worse than "no value" and will, as a matter of fact, be negative equity that you will have to roll into the next lease.

    What you owe on the C240 is the final buyout price at the end of the lease (which you can find on your lease agreement) PLUS all the remaining lease payments. For example, if your lease is, say $400 a month for 36 months and the buyout at the end is $15K, then you owe $26,200 ($15K plus $11,200 in remaining payments). If the car is currently only worth $22,200, then you have $4K negative equity.

    '11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S

  • sponge_worthysponge_worthy Member Posts: 27
    What you owe on the C240 is the final buyout price at the end of the lease (which you can find on your lease agreement) PLUS all the remaining lease payments.

    This depends on the leasing company...I think some leasing companies waive all or a portion of the finance charge in the total of the monthly payments if you buy out early. I checked my buy out and it was significantly less that the total of remaining payments + residual. But I guess it depends on the bank, definitely something to consider before signing on the dotted line...
  • kyfdxkyfdx Moderator Posts: 235,186
    Almost always... The Toyota distributors have some weird policies regarding residuals... but, for everyone else, your answer is YES.

    regards,
    kyfdx

    Edmunds Price Checker
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  • joligranjoligran Member Posts: 2
    I am negotiating a Smart Buy through GMC. The current residual is 43% and the interest rate on the Smart Buy is 7.5%. I got an MSRP of $53,600 and I'm paying $43,895 (including rebates) for the car. When I try to calculate the monthly payments, I determine the residual value to be $23,048 ($53,600 x .43), so I see the amount I am financing at $20,847 ($43,895-$23,048). Multiply that by a 7.5% rate for 48 months and I get $595.70/month. The dealer is coming up with a different number.

    Are my calculations incorrect? Is there another "finance charge" that GMAC (or the dealer) is not disclosing?
  • toyotasalesg1toyotasalesg1 Member Posts: 15
    Chris,

    Toyota's leases just aren't as good as other manufacturers.
    I believe the don't residualize the destination charge or some of the optional equipment. With all the option packages Toyota puts on their cars this can get ugly. Luckily your Camry doesn't have a lot of extra equipment.
    You're on a 2005 Camry LE 4 cylinder. Optional equipment is floor mats.
    The 12,000 mile residual at 36 months IS $11,069. He's not lying.
    Invoice is $19,089. I'd offer invoice or less and compare the payment to a 60 month purchase to see which makes more sense to you. Good luck.
  • joligranjoligran Member Posts: 2
    I also have a Residual Value question (sorry, I posted on a new thread and I am new to this board so I was not sure about the best way to get a response)

    I am negotiating a Smart Buy through GMC. The current residual is 43% and the interest rate on the Smart Buy is 7.5%. I got an MSRP of $53,600 and I'm paying $43,895 (including rebates) for the car. When I try to calculate the monthly payments, I determine the residual value to be $23,048 ($53,600 x .43), so I see the amount I am financing at $20,847 ($43,895-$23,048). Multiply that by a 7.5% rate for 48 months and I get $595.70/month. The dealer is coming up with a different number.

    Are my calculations incorrect? Is there another "finance charge" that GMAC (or the dealer) is not disclosing?
  • qbrozenqbrozen Member Posts: 32,889
    i would email carman about those last 2 posts, but he's here enough that i'm sure they will be gone soon enough.

    '11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S

  • qbrozenqbrozen Member Posts: 32,889
    I'm REALLY surprised. I mean, they don't have to waive anything. They've got your signature on a contract for a set number of payments at a set price. If you know of a company that is so kind as to say "oh, if you don't want to pay it all, you don't have to." then I think that's a company you should stick with for life. I can tell you firsthand that Honda, Mazda, and Mitsubishi are not so forgiving.

    '11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S

  • halo19halo19 Member Posts: 2
    Hi,

    I'm looking to lease a 2005 Mazda 3 (manual transmission, 5 door hatch/wagon) for 24 months. What type of deal on a lease should I work towards or expect? I'm located in the SF area of California if that helps.

    Thanks.
  • mazdrvrmazdrvr Member Posts: 112
    Sorry if I didn't ask my questions in the right place & sorry to bother; Got some help elsewhere.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Congratulations on your new arrival, noahsdad. It sure changes things doesn't it? Take it from a former coupe owner ;) . If your Porsche was repaired properly then you should not have to worry about being charged for any excess wear and tear by Porsche Credit. You will probably get hit with a charge for the dent in your bumper if it is large enough, which it sounds like it is. Whether it would be better for you to trade your car in or just pay the excess wear and tear penalty depends upon the difference between what your car would cost to purchase at this point and how much the dealer that you are working with is willing to give you for it.

    $1,000 under invoice is definitely a good deal on a 2006 Mercedes-Benz E350 Wagon. I would be happy to calculate a lease payment on this vehicle for you using Mercedes-Benz Credit's actual lease program for it, but in order for me to do so I need you to provide me with its actual selling price. Furthermore, Mercedes is scheduled to publish its new September lease program within the next day or two. I should have an idea of what the new program is like sometime next week. Please feel free to post a reminder, containing the selling price, for me then and I will work up a lease payment for you.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You are very welcome. At $.15 per mile, it means that you would only receive a $750 discount on a car that already had 5,000 miles on it (most likely fairly hard miles). That's not enough of a discount for me, but I am sure that some would go for it.

    You never mentioned the selling price of the car that you are interested in leasing. This is an important number 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 the price of the car that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to work up a sample lease payment on the Passat that you are interested in for you if you let me know what its selling price is. Also, VW's August incentive program is scheduled to run through September 6th. If you do not plan on leasing this car before then, wait until later on next week and post a reminder for me. I should have an idea of what the new September program is like by then.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi surfd90. The selling prices of leased vehicles are negotiable, just as if you were paying cash or financing. However, if the current market for the vehicle that you are interested in dictates that it sells for full MSRP then that is the price that you would have to pay to lease one right now. You may want to shop around to see if you can find a dealer that will sell you this truck for less than full price, but given the fact that this is such a new model I am not completely surprised that dealers are getting close to full MSRP for it right now.

    Let's calculate a sample lease payment using Land Rover Capital Group's actual lease program and the prices that you mentioned in your post and see what we come up with. According to my calculations, if you were to lease a 2005 Land Rover Range Rover Sport HSE with an MSRP of $63,400 and a capitalized cost of $64,095 through LRCG right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around a whopping $1,063 per month. If the payment that you mentioned does not include tax then the dealer may be marking up this truck's money factor a little bit. The bottom line is that given the market for this truck, I'm not sure that you are going to be able to get a better deal on it, but you might as well shop around because you can't do much worse.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Greetings maxwella. If you were to lease a 2005 Audi TT 225 Roadster through Audi Financial Services on or before September 6th for 48 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00115 and 43%, respectively.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello thr61. The two places that you should focus your negotiations on are this car's selling price and the money factor that is being used to calculate your lease payment. Paying a security deposit and making sure that BMW Financial Services' buy rate of .00250 (this was the August lease program I have not seen the new September program yet) is used to calculate your payment will help lower it. You also may want to compare the selling price that you were quoted what others report paying for this car lately in the following discussion: "BMW 3-Series: Prices Paid & Buying Experience".

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi Jason. Toyota is not currently providing any sort of lease support on the Prius. This is a relatively expensive car to lease. If I was in the market for one, I probably pay cash for or finance it. If you let me know how long you want to lease it for and how many miles per year you need to be able to drive the Prius that you are interested in, I should be able to give you an idea of what its lease program is like. You may want to wait until late next week to get back to me though. By then, I should have an idea of what Toyota's new September lease program is like for this car.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello mazdrvr. If you want to purchase your vehicle at the end of your lease, deal directly with the bank that you are leasing it through rather than going to a dealer first. Dealers do not have the authority to lower your vehicle's purchase price. Not only that, but they will probably try to add some sort of profit to your purchase transaction for themselves. About a month or two before the scheduled end of your lease, place a call to the bank that you are leasing your vehicle through to see if they would be willing to negotiate its purchase price. If your initial contact there is not willing to work with you, try to work your way up the ladder to a manager. They often have more authority to work with lessees. In your discussions with them, give the impression that you are right at your vehicle's mileage limit. If you are way over they may want the excess mileage penalty that you will have to pay and if you are way under your car is more attractive for them to take back. There certainly is no guarantee that they will be willing to lower your vehicle's price. More often than not, banks won't. You have nothing to lose by trying though. Even if they will not lower your vehicle's price, you should still let them handle the details of purchasing your vehicle not a dealer.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome 108flat. Toyota is not scheduled to publish its new September lease program until September 7th. Please post a reminder for me late next week and I will be more than happy to give you an idea of what this truck's new lease program is like.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi bra. BMW was scheduled to publish a new September lease program yesterday. I have not had an opportunity to take a look at this new program yet, but should be able to within the next couple of days. Please post a reminder for me either here or in the new Lease Questions discussion that are being created over in the Prices Paid forum in a few days and I will let you know what I was able to find out about this truck's new September lease program and I can use it to calculate a lease payment on it for you.

    Car_man
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  • petesamprspetesamprs Member Posts: 25
    According to my dealer, Sept numbers did not change for 06 BMW models (05s might have changed).
  • thr61thr61 Member Posts: 19
    I am negotiating a 325i this month and there was a $600 msrp increase on the base: it is now $30,900.

    This is also reflected on the BMW web site.
  • genegraygenegray Member Posts: 17
    i put down $4000.
    pay off is $28800.
    trade in value is $25400
  • javnerjavner Member Posts: 23
    I signed the papers on a 2005 Accord LX last night in Indiana. Haven't picked up the car yet but I know that doesn't matter.

    Everything on the papers looked good and matched what we had negotiated. Since I had my 7month old daugher strapped to my chest and my wife chasing the other two around the showroom didn't get to read everything over (first mistake).

    So last night I'm reading the fine print and there is a box on the Honda FS Lease Agreement called "Estimated Fees and Taxes During Lease Term". The verbage is" I agree to pay when due or reimburse Lessor for all title/license/registration/official fees and taxes over the term of my Lease, whether paid at lease signing, included in my monthly payment or assessed otherwise". The estimated number they have is $1500.

    It is my understanding that in Indiana I only pay sales tax on the monthly which over the term is $588. I also know I pay the title and reg fees plus Indiana Excess Tax each year. The exice tax will be 250+217+189 or 217+189+163 depending on what age the BMV gives the car (I think they base it on model release or something).

    So I guess between the excise tax and sales tax I'm at 1245. Any ideas what else they could be including? Now that I due the math on the known fees I don't feel to bad, was just worried about getting a bill for $1500 next month. Will ask the dealer when I go to pick up, but thought I'd ask here too.

    Thanks!
  • petesamprspetesamprs Member Posts: 25
    Yes, should have clarified - lease numbers (residuals, MF) did not change.
  • foxyroxyfoxyroxy Member Posts: 10
    Hi Carman,

    I am looking this month to lease a BMW Z4 Roadster. Can you please tell me what the Money Factor and Residual Value is for September. They say they have a "deal" i.e., 24 months at $350.00 per month with $4K down total. Any suggestions would be greatly appreciated.

    :confuse:
  • genegraygenegray Member Posts: 17
    you're right, the negative equity is $3,874.65 (close to $4000) and it will be rolled over to the new lease program per dealer. Th MSRP of the ML350 that i'm looking at is $45,155.00( with appearance and sunroof package), the dealer is offering it to me for $43,148.00. Please tell me if this is a fair deal:

    as above
    $2500 total cash out
    39month lease, 12000 miles/yr
    $780.03 per month (inc tax)
    (the$3,874.65 roll over included in this deal)

    thanks
  • genegraygenegray Member Posts: 17
    i'm currently negotiating a deal with on an '06 ML350.
    I'm trading in my '05 C240 (leased thru MB)
    Dealer quoted the C240 payoff is $28,874, the negative equity is $3,874.65 (which will roll over to the new lease)
    '06 ML350 (appearnce & sunroof package) MSRP $45,155
    Dealer offer is $43,148
    --with a 39month lease, 12000 miles/yr, $2,500 cash out of pocket and rolling the negative equity ($3,874.65), the monthly payment is $723.93 ($780.03 with tax based on 7.75% tax rate)
    Dealer said these numbers are based on tier one credit(whatever that means) :confuse:

    Please tell me if this is a good/fair deal.

    Thanks
  • legarlegar Member Posts: 71
    Hey Car_man,

    What would be good residual and money factor values for a good lease deal?

    For example, I was looking at a 2006 Audi A3 for 3 years/36K, it had a residual of 51% and a .002897 money factor and thought those were good values for leasing. But I also heard that those were bad numbers.
    please help
  • kyfdxkyfdx Moderator Posts: 235,186
    You have nothing to worry about.. you seem to have a good handle on it..

    Basically, the legal mumbo-jumbo is telling you that you have the same obligations, as though you actually owned the car (instead of Honda Finance). That whatever taxes or fees are due by the owner of the car, will fall on you, and not the bank..

    I'm not sure why they picked $1500... maybe that is the standard verbiage...

    regards,
    kyfdx

    Edmunds Price Checker
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    Did you get a good deal? Be sure to come back and share!

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  • glockfanglockfan Member Posts: 30
    Carman,
    Please give me an idea on a 36 month lease 15k miles for a loaded 2005 XC90 V8. The sticker is approx $54k and the selling price is $44500. I was given a price of $600 a month for 36 months incl tax (7%) with approx $1k down..Is this a good deal? Thanks
  • tsbtsb Member Posts: 8
    Car_man,

    Could you please provide the money factor and residual for a 2005 CRV EX model for a 36 month lease with 12,000 miles/year? I am located in New Jersey. Thank you.
  • msdavismsdavis Member Posts: 11
    Dear Car Guy,

    Counld not close a deal on the phaeton last month. Fom What I understand the new lease program comes out on Sept 6. I have been slammed with calls trying to get me to lease this car for my dad on the 2nd and 3rd of sept. I have been told that the incentives are better, but no one wants to disclose what they are. I noticed that there is 7500 dealer cash on non vw financed purhases or leases. Could you tell me if there is any lease cash and if the rate and residual are the same. 36 month 45,000 miles rate= .00011 and residual is 53%. Thanks for all off the help you really help people get the most for thier money.
  • motoristamotorista Member Posts: 6
    Hello Carman,
    I'm in the market for a VW Phaeton, which I need for a weekly commute of approx. 800 miles. Since I have access to other cars, I can assume using the Phaeton for only about half the year (probably the winter months, considering 4-wheel drive). I've never leased before, and normally finance for 60 months and keep cars much longer, as long as 15 yrs, because I treat them exceptionally well and maintain them scrupulously.

    For a 2005 Phaeton with coldweather/comfort package and keyless access I have the following offer: selling price 68.5k zero down and:
    1) lease 48months, 20kmiles/year, monthly payment 969. or
    2) lease 36months, 20kmiles/year, monthly payment 1064. or
    3) buy, finance 66 months at 2.9% monthly payment 1185.
    I am leaning toward buyng because the monthly payment is close, and could be even closer by putting a few thousand down, and I would not have to worry about mileage plus possible excess wear and tear at lease end. However, I worry that if the car proves unreliable (complex electronics, air suspension, etc.) and expensive to maintain, I would likely be upside down with an almost unsaleable relatively high mileage trade.

    I would very much appreciate your advice re lease vs. buy and also whether these lease terms are reasonably good.
    Many thanks
    Motorista
  • techbiztechbiz Member Posts: 5
    Hi Car_man - yes still would love to know the #'s once you have the September 530xi numbers.
  • genegraygenegray Member Posts: 17
    Dear Car_man,
    i'm from Southern California.
    i'm currently negotiating a deal with on an '06 ML350.
    I'm trading in my '05 C240 (leased thru MB)
    Dealer quoted the C240 payoff is $28,874, the negative equity is $3,874.65 (which will roll over to the new lease)
    '06 ML350 (appearnce & sunroof package) MSRP $45,155
    Dealer offer is $43,148
    -->with a 39month lease, 12000 miles/yr, $2,500 cash out of pocket and rolling the negative equity ($3,874.65), the monthly payment is $723.93 ($780.03 with tax based on 7.75% tax rate)
    Dealer said these numbers are based on tier one credit(whatever that means) :confuse:

    Please tell me if this is a good/fair deal.

    Thanks
  • plym_rockplym_rock Member Posts: 17
    Dear Car_man,

    I am interested in leasing a 2006 Lexus RX 400h with heated seats from a local NJ dealer. The dealer is charging $1700.00 above invoice. The lease that fits me the best is 36 months and 15K/year.

    I want just pay fees plus the first month's payment. I would like the 6% sale tax in the lease payments.

    The dealer claims that Lexus has the best program. The residual, as of August, is 62% and the money factor is not discounted currently (I don't know what it is).

    I would like to spend close to $600/month.

    Please let me know what the present dealer offer is per month and how we can get to $600.

    Thanks
  • kg6ckg6c Member Posts: 18
    Could the host plese help me with my dilemma. I was able to negotiate $7000 of sticker for a V6 T-Reg and $10,000 for a V8 T-Reg. The problem I am having is that I do not want to finance this. So can someone please tell me how I can can translate these savings into a good lease. The dealer is saying that he cannot make the price less than invoice, for lease purposes. Please can someone give advice on this. It will be a huge help.

    Thanks
    K
  • raysx5raysx5 Member Posts: 3
    Hi Car man. I have been searching for a lease deal and found your informative forum. I am in process of negotiating with Infiniti dealer but confused as it seems the calculation result of car lease calculator is actually less than what's quoted from the dealer.

    My deals are
    A. G35 Coupe 6mt+premium pkg, MSRP $36,700, selling price $34,100 (invoice+$500), 36 month term, 15k miles/yr, $1,500 drive off, $488/month including 8.25% tax.
    B. The same as above but navi included, MSRP $38,700, selling price $34,900 (My calculation - I was told its $500 below invoice), 42 month, 15k, $1,500 drive off, $482/m incl tax.

    Q1. Lease calculator returns $465/m payment if I put $550 bank fee. What am I missing?
    Q2. What do you think of above deal? Deal B attracts me but is it really below invoice?

    Thanks!!!
  • crg4crg4 Member Posts: 8
    I've already posted this under another discussion specific to Ford but the thread has seen no replies. Would love a qualified opinion on the following:

    Having a devil of a time calculating a reliable lease quote on a 2005 Escape XLS (FWD, 4 cyl). There are 3 things that are fouling me up:

    1) How do I figure in the current $2000 cash back promo currently being offered by Ford (do I just deduct from the negotiated price)?
    2) What would constitute a reliable money factor and residual value for this SUV?
    3) According to TMV in my area (11209), other buyers are already paying below invoice (close to $600) before even factoring in the $2000. Any thoughts as to why so low?

    Using a -

    Negotiated price incl. destination = $18,685
    residual = .55
    interest rate = 4% (or .0016 money factor)

    I came up with a bottom line monthly payment of $259.97 (taxes not included) for 36 mo. lease w/ no money down.

    Any input would be greatly appreciated. Thanks in advance!
  • beemerluvbeemerluv Member Posts: 13
    finally closed a deal on an 06' 530 w/ sport, premium p., and sirius, final neg. price on the vehicle: $48940

    lease deal as follows: 36months/ 12k miles per year, $598.40 per. month (tax included)
    $2000 down
    $625 bank fee
    $600 sec.
    $598.40 first month
    $549 wheel/tire insurance/ life of the lease
    $145 reg./inspec.

    car man, kirstie h,kydh, and anyone else, your thoughts on this deal please?
  • someguy1someguy1 Member Posts: 42
    Car_Man,
    Just picked up my Acura RL. If possible can you tell me IF this is a good deal?

    1. $3000 total down, 15K a year, $588 a month (taxes included). Does this sound good?

    Thanks,
    JT
  • bdr127bdr127 Member Posts: 950
    I'm in the market for a VW Phaeton, which I need for a weekly commute of approx. 800 miles. Since I have access to other cars, I can assume using the Phaeton for only about half the year (probably the winter months, considering 4-wheel drive). I've never leased before, and normally finance for 60 months and keep cars much longer, as long as 15 yrs, because I treat them exceptionally well and maintain them scrupulously.

    If you drive over 40,000 miles/year (or even 1/2 the year for 20,000) and tend to keep your cars that long, leasing may not be for you. Considering you'll have years and years of no car payment, it would work out better financially in the long run to purchase/finance...... Not trying to tell you what to do, but this was my two cents based on your scenario.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi igork. The selling price that you were quoted for the Murano that you are interested in appears to be under dealer invoice. If this is indeed the case, you are getting it for an excellent price. For more feedback on this truck's selling price, make sure to stop by the following discussion: "Nissan Murano: Prices Paid & Buying Experience". I just calculated a sample lease payment on the truck that you are getting using Nissan's actual August lease program to compare with the payment that you were quoted. According to my calculations, if you were to lease a 2005 Nissan Murano S AWD with an MSRP of $30,600 and a selling price of $27,168 through Nissan Motor Acceptance Corp. right now for 42 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $276. With this deal, at lease signing you would have to pay your truck's first month's payment, a security deposit of $300, NMAC's acquisition fee of $550, and any required state taxes or fees. Since your lease is not through NMAC though this example is not very valid. Leasing you through an independent bank with an aggressive program and using the $500 customer cash that Nissan is providing on this truck right now probably resulted in a lower lease payment than leasing through NMAC without the cash. Let's say that your vehicle's selling price was $500 higher, it would increase the payment through NMAC to around $288. The bottom line is that I personally feel as though this is an attractive lease payment for this truck.

    Car_man
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  • harvptharvpt Member Posts: 40
    For several years NY has been exempt from standard leasing, instead offering balloon payment plans which aren't as favorable as leases. The law preventing leasing was repealed on August 11 and supposedly car makers are suppose to start offering leasing again.

    We've negotiated a good price on a Subaru Tribeca in Albany, NY. If it's only a matter of weeks, we'll stall the dealer (the car isn't due to arrive for another week). A regular lease will save us at least a $1000 in state taxes, well worth the wait.

    Anyone know the status of this?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome Chris. The dealer that you are working with is probably telling you the truth. While most banks residual values are based upon a percentage of vehicle's full MSRPs including destination charges plus the full MSRPs of any options, Toyota Financial Services calculates residual values a little differently. It places a limit upon which options can be residualized and caps on the amount of money that can be residualized for them. I would not be surprised if for some reason it calculated vehicles residual values based upon MSRPs not including destination. TFS is a strange animal.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi nm3a. This discussion is for community members to ask questions about leasing. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". One of our most knowledgeable community members, Terry, frequents that discussion and he is often kind enough to give community members who give him an accurate description of their vehicles with his opinion on their value.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey njdriver1. I believe that Infiniti Financial Services allows the full residualization of any factory installed options. So other than the fact that they would make your vehicle's MSRP and selling prices higher, factory installed options should not alter the way its lease payment is calculated. All of the lease programs that I mention in this discussion are from manufacturers' captive finance companies. Infiniti's August lease program is scheduled to run through September 6th.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello genegray. I am sorry to say that it is usually fairly expensive to get out of leases well before their scheduled end dates. In order to do so, you need to purchase the vehicle that you are currently leasing from the bank that you are leasing it through. It often turns out that it costs more to do so than your vehicle is worth on the open market. Furthermore, many banks expect consumers who end their leases early to still make all, or at least the depreciation portion of their remaining lease payments. As you can see, this can get very expensive.

    You can determine approximately how much it will cost you to get out of your current lease by comparing its purchase price to its value on the open market at this time. You should place a call to the bank that you are leasing your vehicle through to find out its exact price. Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". One of our most knowledgeable community members, Terry, frequents that discussion and he is often kind enough to give community members who give him an accurate description of their vehicles with his opinion on their value. Don't forget to check to see if you are still on the hook for your remaining lease payments. The difference between your leased vehicle's current value and how much it will cost you to buy it plus any remaining lease payments that you are obligated to pay will equal the cost of getting out of your lease right now. You may find that you are better off waiting until you are closer to the scheduled end of your lease to get another new vehicle.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey Adam & Roman. I like the new nicknames that you gave me :D. BMW's new September lease program for the car that you are interested in is fairly similar to its August program. If you were to lease a 2006 BMW 325i through BMW Financial Services in September for 36 months with 10,000 miles per year, its buy rate lease money factor and residual value should be .00250 and 64%, respectively. If you locked in August's lease program on the car that you ordered, you should have the option of using the old program or the current one on your car, but since I believe that they are virtually identical it probably doesn't make much of a difference.

    It is difficult for me to say if you could negotiate a better deal on this car without at least knowing its full MSRP. For more feedback on 325i pricing, make sure to stop by the following discussion: "BMW 3-Series: Prices Paid & Buying Experience". The one thing that I can tell you about your deal is that it would be in your best interest not to make such a large down payment. 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 325i would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all.

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