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Car_Man
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What would be an appropriate money factor, capitalized cost and residual value for the lease based on 12K miles per year? I live in Northern Virgina and have excellent credit.
I was trying to negotiate a lease last night for a 2001 Saab 9-3 base 5-dr, auto., leather, heated seats, metallic paint, 36-month/12,000.
Dealer insisted that in VA, you must pay sales tax on the entire value of the vehicle (negotiated cap cost plus rebate) instead of on the depreciation (which is how Edmunds calculates it).
His best offer was $380.06/month with $2,282.71 due at signing (which is 1st month, SD.., acquisition fee, and "cap cost" of 999 (not sure if this was supposed to be the sales tax not rolled in).
The negotiated price was $27,800 (which included a $2,000 rebate). Residual value was 15,441 (48%) and m.. was .00086. (MSRP 32170)
I calculated this to be about $390/month with $1300 due.
Have you heard about this sales tax issue in Virginia? Do you happen to know what a good lease rate for this car should be? Thanks for any help.
Forgot to mention. Alternatively, I could have bought the car for 25,718, which is $500 over invoice (after subtracting the 4700 incentive money). However, that is still 1500 over
Edmunds TMV. Is there any chance that the TMV could be wrong for this car? I spoke to 4 dealers and they all claimed that Edmunds' price was ridiculous because it was under invoice + rebate. (Also, I was looking at the power sunroof). Didn't know how to negotiate to get TMV when the numbers didn't seem to add up and didn't know how they would profit at that price.
Thanks for the help.
This truck's capitalized cost will depend upon two factors: the price that you are able to negotiate on one and how much money you put down on it. In order to get an idea of what this truck is selling for at this point, you may want to check out the Town Hall SUV Message Board and look up its True Market Value in the Edmunds.com New Vehicle Price Guide.
Car_Man
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It is possible that the TMV for the car that you are interested in is a little low. I am not intimately involved with True Market Value calculations so it is difficult for me to say for certain. Keep in mind though, that the TMV for a particular vehicle that is listed here at Edmunds.com usually does not include any sort of options. Additional options will naturally make a vehicle more expensive.
Car_Man
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Do you have the recent residual for a 3-year lease on a 2001 GLE with 15K miles/year and the current money rate? The dealer quoted me a payment yesterday of $438/mo plus tax of apprx. $50.mo. I'm not sure how he calculated the tax since I pay 6.5% in my state. The offered price on the car was $26796. Thanks
Nissan just taxed me a sample lease contract and I have some questions. Do I have to pay the sales tax on the entire car and also once again on the payments? Also, does Nissan have a disposition fee or acquisition fee?
Thanks
Do you know what the money factor and lease residuals are for the SR5 and Limited Toyota Sequoia for a 36 month 15k/year lease?
Thanks for your help.
Fwdrive, in answer to your second message, Nissan Motor Acceptance Corp. has a $350 acquisition fee, but I do not believe that they have a lease disposition fee. As far as the tax on your lease is concerned, this will vary significantly from state to state. Your local Department of Motor Vehicles may be able to provide you with more informaiton on your area's specific taxation policies.
Car_Man
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good luck, and don't put too much faith in the edmund's TMV, especially if you are dealing with lindsay lexus.
ace
36/39 months seem to be typical lease lengths. 48 months is too long a lease for me. Is there a such thing as a 24 month lease and how common is it? I'll be leasing for the first time soon(obviously); usually I just buy. Just curious, I've never heard anybody say they have a 24 month lease. If there is a lease like this, what are the fundamental differences? Thanks.
In an effort to negotiate on common numbers, I asked that he fill out the lease contract and ax it to me. The first time he resent the invoice the residual and price written on it. After a second request I got an "Auto lease work sheet" with the breakdowns but the addition was wrong on it (26358 + 450 + 50.48 + 1812.95 = 29121.43 huh?). Is it a Nissan rule that they can't let you look at their contract over night? They were more than willing to let me review the numbers while they looked over my shoulder.
Anyway, the dealer is belligerent and is more interested in trying to confuse me rather than just trying to negotiate a price. Actually, I would be willing to pay a higher negotiated car price but I hate it when they try to fool you by putting the money somewhere else. I hate to rant and rave about these dealers because they are not all like that but I refuse to buy a car from someone that cannot be honest.
I hate having to go through this experience evry 3 years. Thanks for letting me vent.
but it has to do with leasing,so I thought I
would ask it here. I have a car on lease,
through the financial arm of the
manufacturer. Recently I moved to another
state and the local dmv requested some
documents(titles etc.) from the finance company,
so that the registration could be transferred
to this state.
The problem is, the finance company does not
seem to be interested. I always get the answer
that the original title has been lost and a
duplicate has been applied for. This is going
on for three months now. I have spoken to
supervisors and I get the same canned answer.
Do I have any rights at all in this
situation? How can I gently but firmly
pursuade them to act?
Thanks
Also, what would the monthly payments come to on a lease today with a cap cost of $29,500 for this vehicle in the same situation described above? I have a friend who was thinking of getting one like mine and the dealer told him the residuals have dropped again from 49% to 44%...could it be that low already this time of year?
Also, do some banks charge on the contract what's referred to as a separate bank fee? One company had a lower interest rate (8.2% to 7%) and the dealer showed me on the contract that the lower interest rate at the one bank had an upfront $665 bank fee which brought the payment to $10 more a month than the bank with the 8.2% rate...was he pulling my leg to get me to sign at the higher rate? I remember what you said in an earlier post...that the monthly payment is the bottom line so I went with the finance guys opinion and went with the 8.2% rate on the lease.
You are absolutely correct to stay away from 48 month lease terms. There are several reasons why I feel as though it is not a good idea to lease for 48 months, but the main two are that most vehicles' warranties do not run for that long and most captive finance companies do not provide support on 48 month lease terms.
Car_Man
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I would be happy to let you know what the approximate monthly payment for your van would be like right now, but in order for me to provide you with an accurate estimate I will need to know what its full MSRP is, in addition to the cap cost that you already posted.
Different banks do charge different acquisition fees. Right now Chrysler Financial's official acquisition fee is $525. Other banks will change different fees, but I doubt that they would be much higher than that. Keep in mind though, that many lending institutions allow individual dealerships to mark-up their acquisition fee in order to bake additional profit into deals.
Car_Man
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Car_Man
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I've got one for you! I was wanting to lease a 2001 BMW 330i Sedan from my dealership here in my town, they were asking 41,155.00. O.K. try and follow me to see if this makes since to you, becuase it confuses me! I had a 1999 BMW Z3 2.3, with 18,000 miles on it in perfect condition, and it had everything: Fog lights,custom whls and tires,etc. I had a payoff of 27,965.00. I Blue booked off Edmunds.com for roughly 26,000.00. Now this where they try and screw with me, they only wanted to give me 23,500.00 for my car. Which I thought was weird. Because they sell BMWs. I had the lease already figured at home on what the payment would have been approx. 580.00 with tax. I got them to give me 25,500.00 for my car. They said that they would take 2000.00 off the new car. That leaves me -2465.00 in equity in my trade +500.00 I was going to put down= -1965.00 for equity. Then they were going to charge me 1721.38 for inception fees so 1965.00+1721.38=3686.38. Then 41,155.00+3686.38+550.00 assignment fee=45391.38. They gave me a Lease Information Sheet with above Info. They did not take the 2000.00 off the new car, then they try and tell me that they are only going to make 2100.00 on the new car! The payments they qouted me on were 717.50+%7.00=767.73 per month with tax for 48 months using a money factor of .003040. So could you please tell me if this is right because I am confused!!!
cooperdp "Real-World Trade-In Values" Aug 14, 2000 6:36pm
Sounds to me like 25.5 is fair for your trade. The gave you the 2K overallowance on your Z3. Don't know whre you got 26K for your car; KBB gave me 23075. Your post doesn't state they were giving you an additional 2K off the 330 as well as the overallow.
If Carman can come up with the residual we can calculate the payment. Is the money factor 003040 or 003400? All in all, sounds like the deal is correct: Full sticker on the 330, plus the $$ to get out of your Z3, plus full market price on the loan (8%+). Typical BMW deal, really.
Sales tax is charged based on where you live not where you buy. In MD they charge 5% on the purchase price. I don't have specific info on VA but nothing I have states you have to pay tax on the full price. Check closely.
Only question I have is why is the dealer leasing you the car for 27.8 but selling it to you at 25718? Both should be the same. And $500 over invoice is 25718? My numbers show invoice on the car you described is $28627 +500 over = 29127. The 4700 "incentive money" makes no sense to me so I left it out.
residual of the MSRP of 41155.00. I don't if they use the total Cap cost of 45,391.00 or 41,155.00 to come up with my payment. Maybe you can help me here! I have been seeing people on here with 40,000.00 cars with no money down and leasing them for 580.00 a month. How come there is big diff. in payments here we are talking almost 200.00. And I know BMW's hold there value well!
So whats the deal! Thanks bret fraz
They had an $840 rebate going on at the time which I believe is still in effect for leases...somebody on another board posted that there is a $2,600 rebate that started this week for leases only...that sounds too good to be true...even for a Chrysler...I mean this early in the year. They applied the $840 to my down payment to make it look like I put down $1,840...I signed a paper to turn over rebate to the dealer who in turn applied it to my deal. After the $1,840 down, the cap cost reduced to about $29,100...they told me the cost on vehicle before rebated was around $30,300...from a list of $33,160...don't know what went on in closing room...but do know that I checked almost every dealer in Florida and they were all quoting me payments like $520 + tax all the way up to $568 + tax for the same list price vehicle that we leased. Let me know...Thanks!!! Again, the lease rate was 8.20% according to my lease..Oh, yes...the disposition on my new lease is $300 and their is an early termination fee of I believe either $350 or $500...I forget what it was...doesn't matter...I don't plan on giving the vehicle back early. Oh, one more question. My lease that I am turning in...the Nissan...is with Chase Auto Finance. They will pick up my lease this week...they said they send out a company to come get it and it goes straight to the auction to be sold. Then , they send me a bill for damages...I am going to take a picture of the car...it's in pretty good shape except for the front bumper which was covered with lovebugs and most came off, but there are some embedded. Is this normal for a leasing company to get the car and then send me a bill afterwards...it seems like a lot of stuff could be charged to me without any recours once vehicle is sold. Sorry this is so long...I appreciate your help in advance..Thanks!!
Once again, I am looking at a RX300 with an MSRP of approximately $40700. Lease for 36 months and 12K per year. I noticed the money factor that you posted which lexus currently offers. So the information that would be helpful to me is the residual value for this vehicle.
I noticed that you commented on the special lease terms that lexus was offering in December and that it was not currently available. Is it your experience that lexus offers special lease terms for the RX300 with any frequency?
Thanks again for all your help.
Thanks
Now that you have an approximate cap cost we can play with this car's payments. I don't know where the dealership got the .00304 48 month lease money factor that they are supposedly using to calculate your payments, but it definitely was not through BMW FS. If you were to lease this car through them at this point you would use a special money factor of .00270 for up to 36 month terms, .00350 for 42 month terms, and standard factor of .00390 for 48 month terms. These money factors, in combination with BMS FS' residual values would result in pre-tax monthly payments of about $650 per month for 36 months, $678 for 42 months, and slightly less than $700 per month for 48 months. As you can see leasing this car using BMW Financial Services' supported 36 month term is by far the best way to go.
Car_Man
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As far as your Nissan that you are giving back to Chase is concerned, it is definitely a good idea to take pictures of it (with a witness present if possible) prior to returning it. Chase is a very big player in the automobile leasing industry and I have not heard any bad things about them, so they probably will be reasonable in assessing your vehicle. Most banks understand that there are going to be a few minor dings on any vehicle that has been driven on a regular basis for several years and take this into account when evaluating them. Still it never hurts to be careful and snap a few photos.
Car_Man
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Car_Man
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Car_Man
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Thank you for the info. I knew they were trying to pull one over on me! I hate dealing with car salesmen... I got a couple more questions regarding this matter. So do think I should pay for the Inception fees up front? Also, what is the residuals for this car, if you don't mind me asking and for the 325I sedan, because I think I might more interested in the 325I because it is less expensive. I really don't want to pay that high of a payment! They got that money factor from Bank of America. I think they do a search based on your credit rating to see what banks will bite on the cost of the loan. They told me that BMW FS would not touch my loan because of my trade. Is that true? Also, can I just go to BMWUSA.com and apply for the lease even if I have a trade. That way I don't have to deal with those guys no more!! Any advice???? Again, thinks alot for the info, I really appricate it!
It is very possible that BMW Financial Services will not allow consumers to roll that much negative equity over into a new lease. That certainly would explain why the dealership that you are working with ran your lease through another bank. It looks to me as though you may be better off selling your car on your own, covering the negative equity out of your own pocket, and then leasing this car through BMW FS.
Car_Man
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Car_Man
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Please help. Thanks
It is very possible that in your previous trransaction, you were so close to your termination date, AND your vehicle was in good condition that the value of the vehicle covered the fees. That may also be the case again, but I would first get some appraisals of the Explorer before I suggest going ahead. SUVs, and Explorers in particular, are a tough sell right now, thanks to high fuel prices, the tire fiasco, and a basic glut of availability.
If your Explorer is in good shape and you're not at risk of incurring mileage or wear fees, you are probably better off hanging on to it until June. You will probably have a better time finding a Pathfinder in the summer when SUVs are a tougherr sell (no snow/winter advantages to tout), and it's closer to the end of the model year.
kcram
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In answer to your specific question about the 2001 Mitsubishi Galant, here is a break down of Mitsubishi's incentives on this vehicle and their compatibility:
Customers with good credit can finance this car at 1.9% for up to 60 months OR they can finance it at 3.9% for up to 60 months and roll a substantial amount of negative equity into their loan OR they can finance it at 4.9% for up to 60 months AND take advantage of $650 dealer cash OR they can finance it at 4.9% for up to 48 months and 6.9% for 60 months and defer their first payment for half a year OR they can pay cash and receive $1,000 consumer cash OR they can take advantage of Mitsubishi's special lease rates without any sort of cash.
Pretty simple isn't it ?
Car_Man
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I've talked with my Honda salesman and he could care less, no offers or suggestions from him. Philosophically, I hate to put new tires on it and turn it in a few months from now. And I'd rather look for a small SUB that my wife likes (RAV4, Escape, or Tribute) now and BUY IT to avoid these lease termination issues. The 3 yr/36K lease sounds good at the beginning, but as life styles and jobs change sometimes so do the number of miles you need to drive.
What would you recommend at this point? Thanks.
To follow up..you mentioned special lease financing thru Mitsubishi..on a 2001 Galant Es-v6 with a cap cost of 20,000--how does that compare with 1.9 "free" money.Thanks again.
Thanks
Although I generally advise against the early termination of a lease, given the excess mileage and the tire wear on your vehicle this case is a little different than most. I personally have a problem with paying for the use of a vehicle and just turning it in though. I might actually be tempted to purchase something else and just let my Honda sit there for a couple of months rather than essentially paying for someone else to drive it >:O . Still, that's really just me. I certainly think that you would be justified in getting out of your car three months early and buying another vehicle right now.
Car_Man
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Car_Man
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When I ran the numbers on a '00 Aero sedan in October I came up with $550/mo with $2000 dn, 12K/36mo. And this was getting the car at invoice. $500/mo will need $4000 down.
CAN YOU GIVE ME THE RESIDUAL ON 330I SEDAN FOR 36 MONTHS? THANK YOU!
I'm hoping you can assist me with some numbers on a 2001 Sebring LTC convertible lease. Before I speak with a salesman, can you tell me what the residual is on the new design? Also, are you aware of who might have the better residual and money factor...is it Chrysler or another bank? I know the previous style had a poor residual and I'm hoping the new ones fare a little better. Oh, I almost forgot...standard 36 month, 12k a year lease. Your assistance is greatly appreciated....thank you!