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Lease Questions - Ask Here

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Greetings Shane. The lease residual value that you were quoted for this van is right on the money. However, American Honda Finance Corp.'s base lease money factor is currently .00240 for this term, not the .00250 that you were quoted. Even though this is an unsupported lease, I think that AHFC has probably the best standard lease program of all of the manufacturers' captive finance companies. Of course it is difficult to say whether you would be able to do better than this program through another bank with absolute certainty, but I have a feeling that this program is pretty tough to beat. As far as the tax that you will have to pay on this van goes, it will vary from state to state. If you let me know what state you live in I can probably direct you to a Web site that will explain its taxation policy to you.

    Car_Man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Thanks for the additional information, Chris. The current Toyota Financial Services 3 year 12,000 miles per lease money factor and residual value for a 2002 Highlander 4x4 (Non-Limited) should be .00290 and 63%. The Jeep Grand Cherokee's lease program is a little more difficult to generalize about. For me to provide you with this truck's current factors and residuals I will need you to let me know what state you are in and exactly what model Grand Cherokee you are interested in leasing. Once I have this additional information I will be able to help you out. Talk to you soon.

    Car_Man
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  • michaellnomichaellno Member Posts: 4,120
    36 and 48 month residual values and money factors, 12K and 15K miles per year on the following vehicles:

    Subaru Outback LL Bean Edition wagon
    VW Passat GLS V6 4Motion sedan

    Thanks!
  • agillmanagillman Member Posts: 30
    Carman,

    I'm in Orange County, California.

    Thank you again.
  • tinlittletinlittle Member Posts: 21
    Carman,

    I am in Bay Area, California. I remember back in 2 month ago, BMW advertised in local news paper about leasing deals on BMW 740s. I know the huge dealer incentive is still available. But if a good leasing terms is still available it will make leasing a BMW cheaper than a lexus.

    Do you know if there is a BMW backed good MF and residual value for 10k or 12k/year on 3 years term?

    I know BMW offers .00195 and 61% on X5 4.4. Although it is not listed in the incentive section on Edmund. But X5 is harder to find now and dealer seems not willing to budge on sharing some of the $2500 dealer incentive. While there might be still a chance in getting a 740/740iL before the end of the week.

    Thanks

    Tin
  • leboddelebodde Member Posts: 10
    Wow! Tinlittle, you are WAY ahead of everyone! Would you have any pictures by any chance? I am dying to see what the 20001 740s will look like.

    For that matter, you might want to send those pics to BMW also. I'm sure they'd be very interested.

    ;)
  • tinlittletinlittle Member Posts: 21
    Well, lebodde, you will have to live to see it, not dying !-)
  • kruitboschkruitbosch Member Posts: 5
    Car Man,

    Thanks for your advice regarding the lease from AHFC. I currently live in Texas. Is it possible that you are taxed based on the entire MSRP? Thank you again for your advice :)

    Shane Kruitbosch
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Michaell, if you were to lease a 2002 Subaru Outback LL Bean Edition through Subaru's captive finance company for 3 years it should have a base lease money factor of .00205, a 15,000 miles per residual value of 54%, and a 12,000 miles per residual value of 55%. The 4 year lease parameters should be .00240, 47%, and 49%, respectively. If you were to lease a 2002 Passat GLS V6 4Motion Sedan through Volkswagen Credit prior to the end of the month, its 3 year base lease money factor should be .00175, its 15,000 miles per year residual value should be 56%, and its 12,000 miles per year residual value should be 58%. The 4 year lease parameters for this car should be .00200, 49%, and 51%, respectively.

    Car_Man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Agillman, I believe that Orange County is near Los Angeles. Correct me if I am wrong. In DaimlerChrysler's Los Angeles zone right now, Chrysler Financial has 3 year 12,000 miles per base lease money factors and residual values of .00275 and 48% on the 2002 Dodge Durango SLT 2WD and .00280 / 47% on the 2002 Dodge Durango SLT 4WD. There also is $3,000 Lease Cash on this truck in your area that may be used on conjunction with the aforementioned lease data.

    Car_Man
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  • superman5superman5 Member Posts: 154
    i am thinking of leasing a mustang convertible, purchase price b4 tax is 26,000 , i want to lease it for 24 month or 36 month, will 24 or 36 month lease term make a big difference? longer the better? plz help me what would my payment be like, what would be the best amount of downpayment ?
  • chrism123chrism123 Member Posts: 47
    I live in New Hampshire. Looking at an 02 Jeep Grand Cherokee LTD w/ the V8 engine. Lease will be based on 3 yrs and 12k/yr.

    Thanks again,
    Chris
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi Tin. You are right. BMW has quite a bit of dealer cash available on 2001 7-Series models. Right now the exact amounts of dealer cash on 740 models are $5,500 on 2001 the 740i and $7,500 on 2001 the 740iL. Unfortunately, the lease money factors that are currently available on the 7-Series are not attractive as those that are available on the X5 at this time. If you were to lease a 2001 740i or 740iL through BMW FS for 3 years prior to the end of the month the base lease money factor should be .00260. The 3 year 12,000 miles per and 10,000 miles per residual values for these cars would be 54% and 55%, respectively.

    Car_Man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome, Shane. Texas has always had strange tax laws concerning the leasing of vehicles. You may want to check out the following links to see if you can find out exactly what the taxation policies are in your state: Texas Taxes or Texas Department of Transportation.

    Car_Man
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  • baseballmom94baseballmom94 Member Posts: 92
    Thank you so much for the numbers on the Yukon and Sequoia!
  • leboddelebodde Member Posts: 10
    OK, I was about to sign on the dotted line tonight but my dealer and I come up with different lease numbers. I was wondering if you could double check my numbers.

    2002 Passat GLS1.8T Luxury package, Monsoon, Homelink.
    Negotiated price: 22907
    MSRP: 24305
    The only thing I am paying for are the drive off fees of $567. There is no security deposit in exchange for a slightly higher money factor.
    Money factor.00205
    residual 56%
    Lease terms 48 months
    Sales tax in So. California 8%

    I come up with a monthly of $290 and he comes up with $331 both including taxes. (I base my calculations on the method described by CarMan)

    Who is right?

    Thank you very much for any help.
  • fuzzywuzzyfuzzywuzzy Member Posts: 958
    I got some lease rates. South FL. The numbers seem to work out different then the ones you gave me. I can't seem to figure out the resduial, but the money factor is 0.00130. Here are the terms:

    2002 Acura 3.2 CL-S non Nav, Silver
    Haggled price of $28,900
    15K miles a year
    39 months
    Money factor is 0.00130
    $392.89/month + 6% tax

    Is the dealer hoseing me on the resduial because of the low price of the car? I do not plan on keeping it. Sound like a good deal? Lowest price a can get down here. Went to 5 dealers.
  • rxkerxke Member Posts: 168
    Hi. I am considering getting an A6 quattro sedan with the convenience pkg, pref lux pkg, and bose(MSRP$41,005 Inv. $37,195)for 39 month 12,000 or 15,000 miles per year.

    I am also considering a second car to get, an A4 1.8 quattro sedan with a sun roof, bose, and xenon lights, 16" alloy all season tire(MSRP $30,975 Inv.$28,268) for 39 months with either 12,000 or 15,000 miles per year.

    I am a current Audi owner(loyalty program discounts?)in the NY metro area. Do you know what a good lease price would be for these cars?

    Thank you for your input.
  • rxkerxke Member Posts: 168
    Hi Lease Man

    Do you have any input on a BMW 325xi purchase or lease(in Dec) with an invoice price of $31,510 and MSRP of $34,793. Lease terms would be for 36 months with either 12,000 or 15,000 miles per year. I am in the NY metro area.

    Thank you for any input you could give me.
  • leboddelebodde Member Posts: 10
    Car_Man (or anyone else with a crystal ball...) here is a tough one. You had mentioned in an earlier post that, if anything, the VW lease numbers might go down a bit for December. Given the current situation, do you still feel the same way, two days before the end of the month?

    BTW, I read in another earlier post that VW numbers for a 02 Passat GLS 1.8T were 0.00164 and 57% for 3years/15K. I did not see you mention the number for 4years/15K. I have heard 0.00195 and 49%. Does this sound right to you? (I'm in L.A. if it makes a difference)

    Thank you very much once again.
  • 93fsu193fsu1 Member Posts: 97
    I never got the current money factor & residual on the Pathfinder LE 2x4 with Leather. I'm looking at the 39 month lease with 15,000 miles. If I get it I want to make sure the dealer's calculations are correct.

    The CL is fading from my dreams quickly.
  • stuartboniastuartbonia Member Posts: 56
    Using CarMans formula i also come up with $290. I wonder what the difference is?
  • cupholder1cupholder1 Member Posts: 231
    56% is for 3 years.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Superman5, the 36 month lease term will still allow you to be fully covered by your car's bumper-to-bumper warranty throughout your lease and also will provide you with a significantly lower payment than a 24 month lease of the same vehicle would. This is the length lease that I personally recommend. As far as the down payment goes, I usually advise consumers to put as little money down as possible on leases. Almost any vehicle can be leased without putting any money down. I advise against making down payments on leases for two main reasons. One is that if your car is stolen and not recovered or totaled in an accident during your lease term, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. Also, even if you put thousands of dollars down on the vehicle that you are leasing, it does nothing to reduce your leased car or truck's lease-end purchase price. I would be happy to let you know approximately how much money it would cost per month to lease this car through Ford Motor Credit. However, it would be a big help if you could first provide me with its full MSRP and how many miles per year you want to be able to drive. Thanks.

    Car_Man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi again, Chris. Hmmmm, New Hampshire, huh? I really am not sure which one of DaimlerChrysler's zones New Hampshire is in. It may be in the Boston zone, I suppose. If that is the case, then you would be eligible for Chrysler Financial's special lease program on this truck. If you were to lease a 2002 Jeep Grand Cherokee LTD 4WD through Chrysler Financial for 3 years with 12,000 miles per, I believe that the current base lease money factor and residual value in your area should be .00290 and 48%, respectively. There also should be $2,500 lease cash on this truck in your area that may be used to reduce its capitalized cost.

    Car_Man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome, baseballmom94. Have a great weekend!

    Car_Man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Lebodde, using all of the information that you provided in your post, I come up with a pre-tax monthly lease payment of $269 for this car. The payment that the dealership you are working with quoted you definitely sounds on the high side to me.

    Car_Man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Fuzzywuzzy, I believe that the .00120 lease money factor that American Honda Finance Corp. has on this car for up to 39 month terms is a national program and should be available in your area. The 39 month 15,000 miles per year residual value for a 2002 Acura CL leased through AHFC should presently be 52%. Individual dealerships do not have the authority to alter a bank's residual values, so chances are the dealer is not trying to make any additional money off you there. They may be trying to mark up your car's lease money factor slightly though. According to my calculations, if you were to lease a 2002 Acura CL-S without Navigation (MSRP: $30,860 & Cap Cost: $28,900) through AHFC for 39 months and with 15,000 miles per year at this time, your zero down pre-tax monthly lease payment should be right around $384. This is slightly lower than the payment that you were quoted, perhaps because of the higher money factor that they seem to be using to calculate your payment. Even so, the payment that you were quoted for this car still seems reasonable to me.

    Car_Man
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  • fuzzywuzzyfuzzywuzzy Member Posts: 958
    I'm not going to go for a less then $10 difference. The prices I got are fine. Thanks Alot for the help. I do have 1 question though. Maybe it was asked before, maybe you can't tell me, or tell me then have to kill me after, but where do you get your rates?
  • superman5superman5 Member Posts: 154
    the msrp would be 28,000 but i been quoted for invoice price which is 26000, and mileage would be 15,000 at least.
  • KCRamKCRam Member Posts: 3,516
    Hi rxke

    My partner Car Man has a complete set of instructions in the discussion: The Return of "How to Calculate Monthly Lease Payments". Just use that link, and you'll be all set.

    kcram
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  • kruitboschkruitbosch Member Posts: 5
    Hello again Car_Man

    Thanx again for your help on the Odyssey lease. My dealer says that I have to put down a security deposit to get the .0024 rate. Otherwise, it is .0025. Is this true? Also, there is a $550.00 "acquisition" fee. What is this for? Is it a necessary evil? Thanx again.

    Shane Kruitbosch
  • rxkerxke Member Posts: 168
    Hi Car Man!

    Thank you for your guidance on figuring out how to determine a lease. Could you tell me the money factor and residual value on the 2002 BMW 325xi 4dr sedan and the 2002 Mercedes E320 4matic so I could figure out the lease prices for these two cars. I am looking at a Dec 2001 or Jan 2002 lease. Is there any benefit in doing this in Dec vs Jan?

    Thanks again for your help.
  • csquarecsquare Member Posts: 5
    Thank you so much for the info you provided on the 2002 A4 leases. I just leased one and your infomation saved me hundreds of dollars when the dealer tried to mark up the base money factor. You provide a great service!

    Thanks again,

    Jake
  • tinlittletinlittle Member Posts: 21
    Thanks Carman for the information. Looks like I missed the good X5 deal too. It expired on 11/30. Maybe I will have to wait for a year or buy one instead of leasing it.

    Tin
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi everyone. The lease programs for Audi, BMW, Volkswagen, and Nissan were all scheduled to expire at the end of November. I have not see the December lease programs for any of these brands yet, but would be happy to provide you with an idea of what their new programs should be like when I have had an opportunity to learn a little more about them. Chances are that I will be able to answer these questions for you by late this week. Please feel free to check back with me then.

    Car_Man
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  • agillmanagillman Member Posts: 30
    Carman,

    Can you please provide the money factors and residuals for a GMC Yukon SLT, 2 and 4 wheel drive, and the Chevy Tahoe LT, 2 and 4 wheel drive? Assume a 3 year, 12,000 mile lease.

    Also, can you confirm whether there are any incentives/cash or other incentives available with these models? I'm in the Los Angeles area.

    Thank you.
  • gazzagazza Member Posts: 3
    Car_man,

    I see you do not YET have the VW leasing calculation details for December. When you do, please will you post the Money Factor and Residual (%) for a 2002 VW Passat Wagon GLS 1.8T doing 12,000 miles p.a. for a 24 month period.

    Do you know of any special lease "deals" or incentives (last month a 27 month program appeared to be available)?

    Last month I was after a deal offering:
    - a residual of 66%
    - a money factor of 0.0019
    - up-front fees in the region of $200 (doc. fee and tags).

    I was able to obtain these parameters individually (and often 2 out of 3) but never all three in the same deal. When I did the math it appeared all the dealers were trying to get a further $1,000 to $2,000 out of the leasing alone.

    Many thanx (in advance)

    PS: If there is any reader out there who has recently leased a VW in the PA/NJ/NY area and can provide/recommend a good "dealers" details I would appreciate it. My purchasing options to-date have mostly yielded a good "Selling Price" but have eventually broken down due to "poor" lease terms (residual, money factor or up-front costs).
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome, Jake. I am glad that I was able to help you out. Enjoy your new Audi!

    Car_Man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Superman5, I just did a little research on the vehicle that you are interested in leasing. It does not appear as though Ford is currently providing any sort of lease rate support on the 2002 Mustang. As a result, it is likely going to be very expensive to lease one through Ford Motor Credit at this time. Using the rough numbers that you provided me, if you were to lease a 2002 Ford Mustang Coupe V6 (MSRP: $28,000 & Cap Cost: $26,000) through Ford Motor Credit for 3 years with 15,000 miles per right now, you would probably be looking at a zero down, pre-tax monthly lease payment of a little over $500! You would probably be much better off leasing one through a different lending institution.

    Car_Man
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  • superman5superman5 Member Posts: 154
    thank you for your info, i will probably look for another convertible then, z3 does look might goooooooood!
    thank you again carman , your help is ver appreicated !!!!
    happy holiday!
  • bluesky999bluesky999 Member Posts: 253
    Carman,

    I started looking seriously for a car to lease about 9 or so weeks ago, and you were quite helpful with your rates on the Saab you provided, along with the info you provided to others on the '02 Altima and the Passats and Accords. Thank you for your great service, and keep up the great work!

    Don't know if you're interested, but I'm an independent thinker, and when I considered all variables, I wound up buying a used Chrysler 300M, still under warranty, on which everything from the memory settings (seats/radio presets/mirror settings) to the defrosters to the autostick and tilting headrests work great. The prices on the used Chryslers (perhaps all used cars) are low, and felt it was a significantly better car than the alty/passat/saab/accord after driving them, so I went with it. Car and Driver drove one for 40K miles and found it to be one of the most reliable cars they ever tested, so I feel it's a reliable vehicle despite Chrysler's quality problems with other vehicles in the past.

    Pardon the long post, but I'm excited about my car and wanted to point out to others that there are some nice buys available now in the used market, some with warranty's still intact, and you can move up in class for the same or less money if you play it right. I never bought a used car before but so far it has been a great experience. Anyway, thanks again.

    Bluesky
  • gdumas1gdumas1 Member Posts: 3
    Sometimes I can't believe I did this, I traded in a 01 Focus Se for a lease on a 01 Sentra SE. I was paying $249 for my focus. Because I was upside down on my trade ,I am paying $328 for a 01 Sentra SE and this is for a lease. The finance manager told me I can trade it, or sell it in two years although my lease is for 5yrs. My question is: Should I convert my lease to a loan in 2 yrs or just trade it, or sell it. I know I will go over my aloted miles.
  • cupholder1cupholder1 Member Posts: 231
    A *5* YEAR LEASE?

    On a Nissan Sentra??

    Owww...
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi agillman. I am sorry to say the the Chevrolet Tahoe falls under the same category as the Ford Mustang that I mentioned in my previous post. General Motors is not providing any sort of lease rate support on the 2002 Chevrolet Tahoe at this time. So if you want to lease one through General Motors Acceptance Corp., you will have to use their standard lease rates. They can vary from dealership to dealership, but their lowest base lease rate is currently around 6.75%. At least the supported 3 year 12,000 miles per residual value for this truck is a decent 55%. GM is not offering any sort of lease cash on this truck right now either. You may find that it is actually cheaper to lease this particular vehicle through a bank other than GMAC. If I was in the market for a new Tahoe, I would probably take advantage of GM's special financing program. Right now they have 0.0% special financing for up to 36 months, 3.9% for 48 months, and 5.9% for 60 months on the 2002 Tahoe.

    Car_Man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome, superman5. To tell you the truth, except for the lack of space, I think that I personally would rather have a Z3 than a Mustang anyways. The Z3 has always had better lease deals on it than the Mustang.

    Car_Man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome, Bluesky. I am glad that I was able to help you out. It was nice of you to come back to let us know how everything turned out. I am always curious to see what community members who I have interacted with ended up doing with their vehicle purchase. You are absolutely right about used cars right now. The zero percent financing deals that are out there have had a tremendously negative impact on the used car market. There are some great deals to be had. Congratulations on your new car and good luck with it!

    Car_Man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Gdumas1, I hate to say this but I always strongly advise consumers against leasing anything for more than 39 months or so. A five year lease is a very long time to lease anything. Your vehicle's factory warranty will have expired a long time prior to the scheduled end of your lease. The finance manager that you were dealing with misled you if they gave you the impression that it would be easy or inexpensive to get out of your five year Sentra lease after only two years. In reality it will likely be very expensive for you to get out of your lease at that time, especially if you rolled negative equity from your Focus into your current deal. It is tough to say what your best option is in this particular situation. I believe that as painful as a five year lease many be, your best option may be to live with your Sentra lease for the next five years. Breaking your current contract several years early will likely only make your situation worse.

    Car_Man
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  • fgrethelfgrethel Member Posts: 24
    Car_Man, the local BMW dealer just informed me that BMW has lowered its lease money factors on the 3 series coupe. The sales guy who a week ago wanted to charge .0030 (7.2%) now will charge .00250 or 6%. Since he was marking up the old rate, I assume that he was marking up the new one. I really need your help to confirm whether or not the new BMW "buy" rate is .00210? This would be consistent with this dealer's propensity to mark up the rate by .00040. Thanks for your help. By the way, the sales guy said that the residuals did not move. Apparently they are still 62% for a 3 year 12,000 mile per year deal.
  • gatorfangatorfan Member Posts: 3
    Carman,

    I am looking to lease a 2002 X5 3.0. Can you give me the money factor and residual on the same for 36 and 48 months? I was looking at a 2001 pre 9/11 and decided to wait on a 2002 model. Salesman called today and said BMWNA announced lower lease rates but gave no details. I hope people appreciate the money you can save them by knowing these numbers in advance, I know I do. Thanks for your help.
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