Lease Questions - Ask Here

CarMan@Edmunds · November 2001

You're welcome, SSB. I just did a little more research and it turns out that my source for the X-Type residual values that I gave you provided me with the correct lease money factor, but the 42 month residual value instead of the 48 month residual. The dealer who you spoke with is correct, the 10k 48 month residual value for this car should be 51%. It certainly sounds as though you have found a very straightforward dealership to work with if they were willing to provide you accurate lease data right over the telephone. Good luck with your deal, and make sure to let us all know how it turns out. Have a happy Thanksgiving!

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CarMan@Edmunds · November 2001

Lebodde, the answer to your question is a resounding no. Actually it is in a consumer's best interest to put as little money possible down when they are leasing. There are several reasons why this is the case. One is that if you make a large down payment on the car or truck that you are leasing and it is totaled or stolen and not recovered during your term your insurance company pays off the bank that you are leasing through and your down payment essentially disappears. Another reason why making a large down payment on a lease is a bad idea is that regardless of how much money you put down on your leased vehicle its lease-end purchase price will always be the same. So if you decide that you like the vehicle that you have been leasing and want to buy it at the end of your term, it will cost exactly the same value to do so if you made a $10,000 down payment or absolutely no down payment!

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CarMan@Edmunds · November 2001

Hi Thankstoo. Many banks allow consumers to pre-pay leases on new vehicles. In exchange for all of the lease payments in advance, these banks provide a reduction in the lease money factor that they use to calculate how much it will cost to lease your vehicle. Whether or not the banks will allow you to pre-pay leases and how much of a discount they provide for doing so will very from bank to bank. Unfortunatley, I am not all that familiar with Ford Motor Credit's policy on the pre-payment of Red Carpet Leases in Canada. I suggest that you place a telephone call to them directly or to the dealership that you plan on getting your vehicle from to find out their exact policy.

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CarMan@Edmunds · November 2001

Hi Sarah. You are in pretty good shape if you only have 2 or 3 payments left on your current Civic lease. There are several ways that you can handle your situation. One would be to purchase your Civic from the company that you are leasing it through and try to sell it on your own for as much money as you can. This is probably not a good idea in this particular instance because it would be more trouble that it is worth and is relatively risky. You also could see if the dealership that you are working with would be willing to give you as much as (or more than) it would cost to purchase your Civic right now as a trade-in on your new Jetta. Option three would be to roll your remaining lease payments into your new lease. Your final option would be to just keep your Civic for the remaining two to three months and continue to pay for it since you are going to have to pay the remaining payments anyways. Of course, you could always wait a month or two until you are a little closer to your scheduled lease termination date to get your new car. I highly doubt that the deals on Jettas are going to be much different several months from now than they are today so there isn't much risk in waiting. I wouldn't worry about the lease-end process for your Civic if you are leasing it through American Honda Finance Corp. I have personally leased several vehicles through them and have interacted with many many others who have as well. They seem to be extremely fair when evaluating excess wear and tear at lease-end.

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CarMan@Edmunds · November 2001

You're welcome, baseballmom94. I am glad that you enjoy your visits to the Town Hall so much. I am sorry to say that General Motors is not providing any sort of lease rate support on the GMC Yukon that I am aware of at this time. That means that if you choose to lease one through General Motors Acceptance Corp. you would have to use their standard lease rates, which aren't all that great. Their standard rates can vary from dealership to dealership, but are as low as 6.75% for both 3 and 4 year lease terms right now. GMAC's 36 month 12,000 miles per year residual value for the 2002 Yukon should be around 55% and the 48 month 12k residual value should be around 44%. Toyota is not providing any sort of support on the 2002 Sequoia either. So if you were to lease one through Toyota Financial Services right now, you would have to use their standard lease money factor. The last that I heard it was right around .00300, which is not very good either. the 3 and 4 year 12,000 miles per residual values for all 2002 Toyota Sequoia SR5 models leased through Toyota Financial Services at this time should be 63% and 57%, respectively.

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CarMan@Edmunds · November 2001

Happy Thanksgiving (almost), alfollin. I am not quite sure that I understand your question. Are you saying that you are interested in leasing a new 2000 Volkswagen Passat that a dealership still has left over on its lot. I didn't think that there were any '00 Passats left out there. Volkswagen credit definitely discontinued their lease program on 2000 models several months ago. Perhaps I misunderstood you. As far as the lease information on the 2002 Dodge Caravan Sport goes, if you were to lease one for 48 months and with 12,000 miles per year through Chrysler Financial in any part of the country except for the Detroit area at this time you should be able to use a base lease money factor of .00325 and a residual value of only 33% (ouch). To help offset this van's horrible residual values, they are providing some lease cash on it. Specifically, the 2002 Caravan Sport is eligible for $3,200 in Lease Cash.

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CarMan@Edmunds · November 2001

Hi fgrethel. I'm here. Here is the info that you're looking for. If you were to lease a 2002 BMW 325iC Coupe through BMW Financial Services for 3 years with 12,000 miles per right now you should be able to use their base lease money factor and residual value of .00260 and 62%. If you were to lease a 2002 Mercedes-Benz C230 through Mercedes-Benz Credit Corp. for 3 years with 12,000 miles per right now the lease parameters should be .00339 and 65%. Thanks for the kind Thanksgiving wishes. I hope yours is great as well!

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sarah233 · November 2001

thanks so much, Car_man for your excellent advice. Even though I have done the "go get a new car" thing a couple of times now, it still makes me nervous. But now that I have done a bunch of reading and educating myself about leases, plus your help I feel like I'm going in with my eyes open.

CarMan@Edmunds · November 2001

Thanks for following up with me tas19. Enjoy your new Trailblazer!

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CarMan@Edmunds · November 2001

I agree, Passat lease information sure seems to be popular right now, blerner1. I wonder if that is an indication that this is a very popular vehicle to lease or just a coincidence. Hmmmmm. Volkswagen Credit's latest lease money factors for the 2002 Passat models that you are interested in are as follows: .00164 for the GLS 1.8T Sedan, .00170 for the GLS V6 Sedan, and .00178 for the GLX Sedan (non-4-Motion). The 3 year 15,000 miles per residual values for these models are 56%, 55%, and 54%, respectively. It is very difficult to predict exactly what a manufacturer will do with their future lease programs with 100% accuracy. If I had to guess I would say that I expect the Passat's lease money factors to remain relatively stable or perhaps decline slightly for the month of December.

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alfollin · November 2001

Thanks for the quick answer on a holiday eve. My question about the '00 Passat was because I own one now, and I am trying to get a feel for what it will likely be worth in 2 years. At that time it will be 4 years old, with about 30k miles on it. Hence the question about residual. Any idea what the residual was when leases were last available for '00 wagons?

Thanks again

Al

lebodde · November 2001

CarMan.

Thank you very much for your usual excellent advice. I appreciate it very much.

BTW, you may have posted this at some point a while ago, but, instead of having to do all this work researching lease rates for people on this board, would it not be easier to just point them to some web site that contains the major manufacturers leasing numbers? Or do they think this is top secret info that mere mortals better not get too aware of? ;-)

Just trying to ease your load a bit...

sshkurov · November 2001

Dear Car_Man,

Thanks again for your input. The car I'm looking for is not available in my area, but the dealer is expecting one at the beginning of December. Hopefully, the money factors and the residuals won't change much next month. I will keep you posted on how things go.

Happy Thanksgiving to all!

-SSB

CarMan@Edmunds · November 2001

Hi 93fsu1. I think that I have recovered enough from my post-turkey sleepiness enough to answer your question

. I am familiar with the advertised Acura CL lease that you mentioned in your post. It is actually a very good deal. In fact the lease money factor that is used in its calculation is slightly less than 3%. However, I thought that you should know that this deal is for the base CL, and not the CL - S that you seem to be interested in. As far as the lease money factor that is available on the CL goes, it will be exactly the same for both the CL and the CL - S, so both are technically still very good deals. The CL - S will just have a higher monthly lease payment because it is a more expensive vehicle. Having said this, manufacturers usually leave a little wiggle room in their advertised lease payments so that their dealers can still make a reasonable profit on the advertised deal. If you comparison shop a little bit, I would not be surprised if you were able to do slightly better than manufacturers' advertised lease payments on equivalent models in most cases.

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CarMan@Edmunds · November 2001

You're welcome, Sarah. I am glad that you were able to learn so much by visiting this forum.

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CarMan@Edmunds · November 2001

Ahhh, I see where you were going with your question now, Al. I am sorry to say that I really don't know what the residual values were like on the model that you currently own when you got it a couple of years ago.

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CarMan@Edmunds · November 2001

No problem, lebodde. And thanks for trying to ease my work load a little bit, but to the best of my knowledge there is no Web site out there that provides information on banks' current lease programs to the general public.

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gazza · November 2001

Car_Man,

You provide residual and moneyfactor info for 36 months. Do you have similar info on 24 month leases? I have approached 2 VW dealers and they quote different data for the 2002 Passat Wagon 1.8T GLS (Auto)?

Thanxs

93fsu1 · November 2001

Thanks for the advice. Go easy on that turkey.

rxke · November 2001

Do you have input on 39 month/12,000 mile leases for both the A4 and A6? I am looking to pick two cars up in Dec 2001.

rroyce10 · November 2001

..... All do respect here ... But.. Having a $212 over FAC, on a loaded up Protege' is far from "wiggle room" .... Do you think $397 over on a Buick Rendevous, $520 over on a $45,000 Eldo ETC or $305 over "FAC" on a Civic LX is wiggle room ...?

Most advertised lease programs by the manufacturers.. leave the dealers with about - Zip, to work with --- They don't care, it's up to a dealer and a quality sales force, to then try to hold any profit ... every one then wants the mats, keyless entry, CD, spoiler, Enkei wheels..etc, etc.. "thrown" in ......

In the last 4/5 years, the the profit margins have dropped to just a couple of hundred dollars per vehicle on lease and Factory Ad's --- the days of a 25% mark-up have long, long been gone ...

So yes, I did have to chuckle, and make a point of this ....

Terry.

alfollin · November 2001

Thanks anyway.

Al

sarah233 · November 2001

Hi Car_Man,

Yesterday I leased a 2002 Jetta GLS 1.8T, *almost* exactly what I wanted except i got green instead of blue. They were very impressed that I knew the money factor and residual, and it helped me a lot because they took me seriously and gave me a good deal ($500 over dealer invoice). Thanks again for answering my questions. They told me I should be on the other side of the desk.....

maureenk1 · November 2001

Hi--It's Maureen again--about two weeks ago, I asked a question about a Pathfinder and you also gave me a link for some general information. I now understand the terms a bit better. My question is this; If I do change cars about every 4 years, usually at the end of a loan, is it finacially better to lease or buy. I paid off my 96 Accord last spring.

Example, you had given me some rough figures for the Pathfinder lease. If I sell my current accord, have $9000.00 to put towards a new loan, it there an advantage to banking that money and going with the loan. I guess I am looking for some advice, since I do sell my cars about every 4 years. Hope that makes sense???

Thanks for all the time you spend helping us! Maureen

93fsu1 · November 2001

I have been given a price of $28,500 on a pathfinder LE wityh leather and micro-filter. What would be an expected lease amount with zero down? (36-39 mo.) Thanks. I have it narrowed down to this and the CL lease for 39 months at $349 per mo I inquired about earlier. The Acura dealer says they can do more because its the end of the month...blah blah. We shall see. Any help in sorting out my two very differrent choices would be appreciated.

stuartbonia · November 2001

Mind if I ask what dealership gave you that price?

CarsDirect.com show the following for that vehicle:

CarsDirect.com Price $31,761
MSRP $34,038
Invoice $31,261

Plugging $28,500 as the cost with zero down at www.nissandriven.com shows an estimated lease cost of:

36 months - $378.79/mo
39 months - $357.27/mo

Both of these are with miles of 15k/year.

Make sure you get the Pathfinder with the Limited Slip Differential. It will make all the difference.

Pathfinder v. Acura CL - Completely different worlds as you know. What do you want? If you go with the CL, make it a CL-S.

skobola · November 2001

Can anyone suggest a leasing company that I could use in Miami, Florida, including the online ones. I intend to lease a 2002 Mercedes-Benz C230K Coupe, which came to MSRP of $26,985 with options (Silver paint and C7). MB dealer told me that I will have to order it in early January 2002 to arrive at my current lease end on 4/3/2002 and that the lease would be calculated when the car arrives. My problem is that in my current tries I could not get this car for proportionally less than my current 1999 BMW 323i ($34,220 MSRP), which I lease for $456 = $466/month with tax. And of course, I would certainly like to lower the payments.

I appreciate your suggestions.

CarMan@Edmunds · November 2001

Hi gazza. If you were to lease a 2002 Volkswagen Passat through VW Credit prior to the end of the month you should be able to use their 3 year base lease money factor of .00164 and 15,000 miles per residual value of 57%. The corresponding values for a 2 year lease are .00190 and 64%.

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CarMan@Edmunds · November 2001

You're welcome, 93fsu1. Unfortunately, I did not go that easy on the turkey. Perhaps I'll try to exercise some self restraint on the leftovers instead

.

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CarMan@Edmunds · November 2001

Rxke, prior to being able to give you an idea of what the lease programs for the A4 and A6 are like, I am going to need a little more information from you. The lease programs for these cars often vary quite a bit depending upon what trim level you are interested in. The more specific you can be about the exact model that you are interested in, the better. Also, Audi issues a new lease program every month. So their November program will likely be at least a little different than their December program. You may want to check back with me next week to find out exactly what the December program is like. Talk to you soon.

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CarMan@Edmunds · November 2001

Terry, my mistake in my previous post was perhaps trying to generalize about a topic that is very difficult to make generalizations about. I suppose that I should have said that some manufacturers' advertised leases have room to negotiate in them. With all due respect, the models that you used as examples in your previous post, such as the Cadillac Eldorado and the Buick Rendezvous, have very little demand for them in the marketplace and naturally are difficult to sell for a major profit (by the way, I haven't seen a Civic lease price point being advertised by Honda in many many years). Other models that I have seen manufacturers' advertised leases for use capitalized costs which are almost laughable. Some Volvo ads are based on full MSRP. Again this is a difficult topic to make blanket statements about. I guess that my point was that don't automatically assume that there is no room left for negotiation in an advertised lease. It is important to investigate exactly what capitalized cost ads are based on to see if one can haggle a little bit.

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CarMan@Edmunds · November 2001

That's great, Sarah. I am glad to see that your negotiations went so well. It certainly sounds as though you got a great deal. Enjoy your new Jetta!

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CarMan@Edmunds · November 2001

Hi again, Maureen. I am glad that the links that I posted helped to clear things up for you. The problem with leasing a Nissan Pathfinder for 4 years is that Nissan only provides supported lease money factors on it for up to 39 month terms. I just looked at one trim level of this truck to use as an example. The lease money factor for a 2002 Pathfinder SE jumps from slightly below 3% to 6.3% if you go with the 48 month lease instead of the 39. So by using a longer term you are definitely getting a much worse deal. If you feel that you want to keep this truck for more than 3 years you are better off making a down payment and financing it or leasing it for a shorter term and then purchasing it at lease-end.

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fuzzywuzzy · November 2001

I have searched for this, but can't seem to find it. I need the money factor, & resduial for a 2002 Acura CL, or CL-S. Looking to lease in about 2 weeks.
Thanks

lspangler1 · November 2001

I have a Pathfinder leased through NMAC. I am only a year into the lease and would like to get out of it. My buyout is $22,000 and they are selling in the paper for about $25,000. If I were tofind a buyer, can I purchase the truck and sell it without registering it? Do I still have to pay sales tax? Can my buyer buy it directly from NMAC?

subrab · November 2001

Hello CarMan,

I'm new to this board and the info is tremendous! Wondering if you could give me the important lease numbers for the following vehicles: 2002 Honda Accord EX 4cyl automatic, 2002 Honda CR-V EX automatic. Both 36mo/15k miles per year.

Thinking of trading our '91 Accord EX coupe to bring down the cap cost. Hoping to get about 3k for it. Is this a good idea or should I sell it on my own and bank the money?

Thanks in advance for your hard work!!!

93fsu1 · November 2001

There is a $500 dealer incentive this month, so the price is basically invoice minus the dealer cash. Could be a lowball but we shall see. Thanks for the numbers on the leases. Puts it in the same ballpark as the CL price wise, and I fit into it better. I am absolutely in love with the CL but didn't like the height of the armrest and the steering wheel is too close to the dash - and I have to put the seat back all the way. The rear view mirror also blocks my view. My wife is the SUV nut, and the Pathfinder is the only one I could stand - and it is very comfortable. It will be a shock to buy gas since I will be leaving my Integra behind and it 30+ mpg....oh well.

I'll let you know all the details once I am sure it isn't a lowball.

93fsu1 · November 2001

By the way, it is the 2x4 not the 4x4 LE with leather. Sorry, we Floridians forget that the rest of the country isn't flat and paved like it is here.

csquare · November 2001

Hey Car_man,

You graciously supplied me with information re: QX4 leases about a week ago, but I decided against leasing one upon further review. I've now set my sights on the 2002 Audi A4--the front wheel drive 4 door sedan trim with the 1.8T CVT transmission. I am wondering if you would be so kind as to supply me with the current lease breakdowns on this model.

The salesman I spoke with claimed that Audi was offering the best deal for this model on a 48 month lease--I'd prefer to lease for 36 or 39 months instead. If you could let me know the relevant money factors/ residual values, I would most appreciate it.

Thanks again,

Jake

chrism123 · November 2001

Car Man, can you provide me with residual & m.f. values for an 02 Toyota Highlander and Jeep Grand Cherokee. Lease terms will be 3yr/12k.

Thanks,
Chris

CarMan@Edmunds · November 2001

Skobola, given the vast number of independent banks out there it is impossible for someone who doesn't have access to a special bank-tracking computer system like the ones that many dealerships use to tell if there are any that are running better deals than a manufacturers' captive finance company at any given time. Right now, the Mercedes-Benz Credit Corp. lease program for the C230K is nothing special. However, a lot can change between now and January. Please feel free to check back with me then and I will be able to give you an idea of what the MBCC lease program will be like on this car. Then you can use that program as a reference point to see if your dealership is able to find a bank that is able to beat it.

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CarMan@Edmunds · November 2001

Fuzzywuzzy, the Acura CL and CL-S are both eligible for the same special lease money factor, if they are leased through American Honda Finance Corp. Through January 2nd, the AHFC 3 year lease money factor for these cars is .00120 and the 3 year 15,000 miles per residual value should be 53%. Please let me know if you were looking for a different length lease or different mileage.

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CarMan@Edmunds · November 2001

Thanks, subrab. I am glad that you enjoy this board so much. If you were to lease a 2002 Honda Accord EX 4cyl through AHFC prior to the end of the month, the 3 year 15,000 miles per lease money factor and residual value should be .00126 and 57%. I haven't seen the lease program for the new CR-V yet, but I assume that if you were to lease one through AHFC at this time, you would have to use their standard lease money factors. Right now their 3 year standard money factor is .00240. I should have a better idea of what the residual values should be like for this truck by late next week. Please feel free to check back with me then. As far as your trade-in goes. I personally believe that you are better off putting the money that you get for it in the bank, rather than using it as a down payment on your lease. I say this for two main reasons. One is that if your leased vehicle is stolen and not recovered or totaled, your down payment essentially disappears. Also, down payments on leases do nothing to reduce vehicles' lease-end purchase prices. So if you choose to buy your leased Accord or CR-V at the end of your lease term, it will cost exactly the same price whether you have put several thousand dollars down or nothing down.

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CarMan@Edmunds · November 2001

Excellent choice, Jake. Even though they are rather different vehicles, if I didn't need the extra cargo space I personally would much rather drive a 2002 A4 than an Infiniti QX4. I suppose that your salesperson told you that the 48 month lease term is the best because it will provide you with the lowest monthly lease payment. I personally would go with the 36 or 39 month term on this car. The difference between the 48 and 36 month lease money factors is negligible (the 48 month factor is actually slightly higher). If you were to lease a 2002 A4 1.8T Sedan 2WD through Audi Financial Services prior to the end of the month, the 36 and 39 month lease money factors should both be .00250 and the corresponding 15,000 miles per year residual values should be 56% and 54%, respectively.

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CarMan@Edmunds · November 2001

Hi Chris. I would be happy to help you out. If you were to lease a 2002 Toyota Highlander through Toyota Financial Services for 3 years right now the base lease money factor would be either .00290 or .00300 depending upon which one of their regions you live in. The 3 year 15,000 miles per residual value for a 2002 Highlander 4WD Non-Limited model is currently 61%, let me know if you were interested in a different trim level. The lease parameters for the 2002 Jeep Grand Cherokee vary tremendously depending upon what part of the country you live in and what trim level vehicle you want. If you could provide me with those two pieces of additional information it would be a big help. As soon as I have that info I will fill you in on the details of the lease program. Talk to you soon.

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ubrsf · November 2001

I just sold My 98 vw Jetta 1 year earlier and made about $2300 off the deal. The interested party wrote a check to VW for the residual, and one to me for the difference. My payoff was $10,250 and I sold the car for $12,600. Once the title arrived (took about 5 days after VW cashed the cashier's check), we went to DMV did a transfer of titles, and signed a release of liability form and that is when the buyer paid the taxes and just like that wallaa!! leased car sold.

agillman · November 2001

Can you please provide the money factor and residual for the Dodge Durango SLT (both 2 wheel and four wheel drive models) for a 36 month lease at 12,000 miles per year? Also, can you please confirm that they are offering $3,000 lease cash plus $1,000 for return jeep/dodge customers?

Thank you.

kruitbosch · November 2001

Hi Car Man,

I am looking into leasing a 2002 Honda EX-LES. Can you provide me with current leasing info. I have been offered a cap cost of MSRP ($30,190), RV 59%, MF of .0025 on a 36 mo. lease assuming 15,000 mi/yr. Is this reasonable or could I find a better deal through an on-line leasing company? Also, my dealership told me that I pay sales tax on the WHOLE cost of the vehicle, which doesn't agree with the info. on the Edmunds.com web site. Is this true? Thanx in advance for your help.

Shane Kruitbosch

chrism123 · November 2001

I would be interested in the limited editions of the Highlander and JGC. I live in the northeast. I would be interested in a 3yr/12k lease (rather than a 15k). Thanks for your prompt response.

Chris

CarMan@Edmunds · November 2001

Agillman, DaimlerChrysler's lease money factors for the 2002 Dodge Durango vary depending upon which one of their regions you live in. It would be a big help if you would let me know where you live, prior to me providing you with this information. As far as the cash that is available on this truck goes. Dodge is offering between $2,000 and $3,000 lease cash on the 2002 Durango. Again the exact amount that is available on this truck will vary depending upon which region you are in. They also have $1,000 lease loyalty cash on it, which is enhanced to $2,000 in the Detroit area only. As soon as you let me know where you are I will fill you in on the specific details of this vehicle's lease program. Talk to you soon.

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