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  • 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?
  • 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 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.
  • 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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  • 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?
  • 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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  • 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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  • 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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  • 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.

    Car_man
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  • 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.

    Car_man
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  • Greetings halo19. I should be able to give you an idea of what sort of lease payment to expect on the Mazda3 that you are interested in if you tell me what its full MSRP and approximate selling price are. Mazda's August lease program is scheduled to run through September 6th. I should be able to get an idea of what its new September program is like a few days after that. Please feel free to post a reminder for me later on this week with the pricing information that I just mentioned and I will be happy to work up a sample lease payment for you.

    Car_man
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  • Hello foxyroxy. If you want to lease a BMW Z4 this month, a 24 month lease is definitely the way to go. BMW's lease money factors for that term are half of what they are for any other length lease. If you were to lease a 2005 BMW Z4 2.5i through BMW Financial Services right now for 24 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00100 and 65%, respectively. Negotiate as attractive a selling price as you can on the Z4 that you want, keeping in mind that BMW is currently providing $2,500 dealer cash on this model that will help you to arrive an attractive price. Once you have agreed upon a selling price, have the dealer calculate your car's lease payment using the aforementioned numbers. It is in your best interest not to make any sort of down payment on your lease. 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 Z4 would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all.

    Let me know if you have any other questions.

    Car_man
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  • I am looking at my options for leasing a car, that will be used as my primary transportation during the winter months (not going through another winter in my 350Z!). I don't have much of a clue as to what it is I "want", so am looking at it from a financial standpoint. Ideally, I'd like to stay in the sub $400 a month category, with as littke out of pocket as possible (don't see the point in trying to obtain the car of my dreams since it will only be used 3-4 months a year) and need something with 4WD/AWD to get me through the snow. Would also prefer a wagon or small SUV (non American), as the extra room would come in handy

    Any suggestions on what is out there that meets this criterion? As I said I am open to sugggestions and could literally go for anything from a Kia Sorento and Suzuki XL7 up to an Audi or BMW.

    thanks in advance everyone!
  • Hi genegray. You should be much better off if you waited until you are closer to the scheduled end of your C-Class lease to get a new vehicle, but if you have to get a new truck right now let's take a look at the deal that you are getting. It looks to me as though the price that you were quoted for the ML350 that you want is around $500 to $750 over invoice. This sounds like a very reasonable price for this model right now, but you may want to stop by the following discussion to see how much other community members have paid for one recently: "Mercedes Benz M-Class: Prices Paid & Buying Experience".

    Let's try to calculate a lease payment on this truck for you using Mercedes-Benz actual lease program. I believe that your truck's capitalized cost is ($43,148 selling price + $3,874.65 negative equity - $2,500 capitalized cost reduction). Is this number right? Let me know and I will try to find out what Mercedes-Benz Credit's current Tier 1 lease money factor and residual value are like for the truck that you are interested in so that we can estimate its payment.

    Car_man
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  • Hi legar. It is not difficult to tell how good a vehicle's lease money factor is. To convert a money factor into an approximate money factor equivalent, multiply it by 2400. For example, the money factor that you mentioned, .00290, is equivalent to an interest rate of just under seven percent. This is not very good. A 3 year, 12,000 miles per residual value 51% is OK, but vehicles with really strong residual values for a similar lease, like a BMW 3-Series, would be closer to 60%.

    Car_man
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  • Hello glockfan. Volvo is no longer providing lease support on the 2005 XC90 V8. It replaced its special lease money factors for this truck with $2,575 dealer cash. As a result, if you were to lease one through Volvo Finance right now, you would have to use its standard lease program, which is not very good. You would probably be better off using this dealer cash to negotiate as attractive a selling price as possible and then leasing it through an independent bank. What bank is the lease that you were quoted through? What sort of lease money factor and residual value were used to arrive at the payment that you were given? If you let me know, I can give you my opinion of them.

    Car_man
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  • Thanks Carman. I am also looking at a purchase of a Toyota 4-Runner. I wlll get the specifics if I go the Volvo route.
  • Car_man,

    Any word on new deals for September? Residuals and money factors for Tier 2 with Toyota and Standard Lease Terms for Honda Financial would help.

    Thanks,

    Chris 9/5/05
  • Hi tsb. I have not had an opportunity to take a look at Honda's new September lease program for this truck yet. I should have an opportunity to within the next couple of days. Post a quick reminder for me later on this week and I will be happy to fill you in on what I have been able to find out. Talk to you soon.

    Car_man
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  • Hi msdavis. Volkswagen was not providing any lease cash on the 2005 Phaeton in August. You are correct, its new September program is not scheduled to be published until the 7th. I do not know what it will be like yet, but I should be able to give you an idea of what it is like if you check back with me late this week.

    Car_man
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  • Hello motorista. Wow, what are the odds of having two questions about an expensive car like the Phaeton in a row? 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.

    If I was in your situation, I personally would finance this car rather than lease it. I can still tell you what VW's lease program for it is like, however its new September program will not be published until September 7th. Post a quick reminder for me towards the end of this week, with this car's full MSRP (with the destination charge added in) and I will be happy to give you my opinion of your deal and calculate a sample lease payment on the car that you are considering using VW Credit's new lease program.

    Car_man
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  • Check out a 4WD Toyota Matrix with first payment and taxes you should be under the $350 mark.
  • I have an Offer for an Infiniti 2005 G35 AWD for Edmunds Invoice Price. The Lease details are Money Factor of .00113 (2.7%); Residual of 59%, At signing owe $2365 which is (1st mo pmt; sales taxes; $750 Bank fee; $45 Dealer fee; 12.50 Tire Fee; $135 new plates) Is this a good lease offer? Seems to me better than most.

    Also, since NYS returns to traditional leasing tomorrow, is there any advantage to waiting? Infiniti says THIS deal is only on the table through tomorrow which seems consistent with their web site and TV offers.
  • I just signed a lease for a Infiniti M45 with Journey and NAV.

    MSRP 52510
    Cap cost 48999(invoice + 1000) + 550(acquisition fee) = 49549
    Drive off 1131 (first month payment + reg)
    42 months
    634.95 + 49.21 (7.75 CA tax) = 684.16/mo

    I am not sure what the residual is for 42mos, I think 57%. I was supposed to get the base MF of 0.00202. However, by my calculation, it seems a bit off. Did I get the promised MF or was there a last minute adjustment?

    Thanks.
  • Thanks for the response, Car_man.
    Yes, these are the numbers the dealer gave me for the new '06 ML350
    $43, 148 agreed selling price (with appearance and sunroof pack)
    $3,874.65 negative equity (from the '05 C240 lease)
    $2,500 total cash out.
    Please do estimate the monthly payment for this truck. Dealer said it's $780.03 (with tax based on 7.75% tax rate)
  • Here's the information that you're looking for techbiz. If you were to lease a 2006 BMW 530xi through BMW Financial Services right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00195 and 62%, respectively.

    Car_man
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  • Hello plym_rock. I would be more than happy to try to give you an idea of what sort of monthly payment you can expect to pay on the truck that you are interested in. However, in order for me to do so I need you to provide me with its full MSRP (with the destination charge added in) and selling price. Also, Lexus' August lease program was scheduled to run through September 5th. I have not had an opportunity to take a look at its new September program that is supposed to come out today yet. I should have a good idea of what it is like later on this week. Post a reminder for me then with the pricing info that I need and I will work up a sample lease payment for you.

    Car_man
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  • Hi kg6c. The reason why the low prices that you were quoted are not available on leases is that many manufacturers' cash incentives are not compatible with their special lease programs. This is the case with the VW Touareg. Volkswagen is currently providing $3,000 dealer cash on the V6 Touareg and $4,000 on the V8 Touareg. This dealer cash cannot be used in conjunction with its special lease program though. VW is actually scheduled to publish a new lease program tomorrow. If you check back with me in a few days, I can tell you what it is like. We can even calculate a sample lease payment on the truck that you are interested in if you would like.

    Car_man
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  • Welcome raysx5. Using Infiniti's August lease program and the prices that you mentioned in your post, an MSRP of $36,700 and a selling price of $34,100, I estimate that the car you are interested in should have a 36 month, 15,000 miles per year zero down, pre-tax monthly payment of around $466. For the car with navigation, MSRP $38,700 / selling price $34,900, I come up with a payment of around $459 for an otherwise identical lease. Both of the selling prices that you were quoted look reasonable to me, but you may want to stop by the following discussion to see how much other community members paid for similar cars lately: "Infiniti G35: Prices Paid & Buying Experience". I'm not sure why the lease calculator that you are using came up with different monthly payments. Where is the calculator located, on-line? Many of the on-line lease calculators are not very accurate because they do not use banks' actual money factors and residual values.

    Car_man
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  • Hi crg4. If Ford is providing a $2,000 cash incentive on leases of the truck that you are interested in, you need to take it into account when negotiating your vehicle's selling price. You cannot just automatically deduct it from the price that you were quoted because the dealer may already be taking it into account. A lease rate of 4.0% is a very reasonable interest rate to pay on a lease of this truck right now. Given how late it is in the model year, dealers will be anxious to unload any remaining 2005 models that they have on their lots. As a result, I am not surprised that '05 Escapes are going at or even slightly below invoice before the deduction of any available cash incentives. For more feedback on this truck's price, you may wan to stop by the following discussion: "Ford Escape/Mazda Tribute/Mercury Mariner: Prices Paid & Buying Experience".

    Car_man
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