Lease Questions - Ask Here

CarMan@Edmunds · May 2002

Hi campbellmi. I have already seen BMW's May lease program and I should have had an opportunity to take a look at Saab's new program by Monday or Tuesday. If you tell me how long you plan on leasing these cars for and how many miles per year you wish to drive I would be more than happy to give you an idea of what their current programs are like. Talk to you then.

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bfriedman21 · May 2002

thanks for your help
i see you have the may bmw info

im interested in a 2002 325xi 3yr 10k mi per year

b

galun1 · May 2002

Hi Car_man, thanks for the info. My friend who got a money factor of 205 - I don't think he did it through BMW FS. He said a BMW dealer in LA arranged a low money factor lease for him from some place in LA Japan Town. I am not exactly sure what he is talking about and I am waiting to hear back from him. A money factor of 205 does seem a little low in my opinion.

I have two more questions.
1. I forgot to ask about 3yr / 10000 miles.
2. Although this is not a lease, can you tell me a little about their owner's choice program? I have no idea what it is, and I cannot really find any educational material on line about this type of program. I feel that I might get ripped off if I walk in not knowing what this program is supposed to be. Pros / Cons of owner's choice vs leasing?

Thanks!

rlowrie · May 2002

Hi Car_Man. It appears the BMW lease info for May is available. What can you tell me about 36 month, 12 or 15K miles on a 540? Thanks!

galun1 · May 2002

Hi Car_man,

I re-read your reply and realized that you said BMW FS has a money factor of 205 for the 330i now. Can you give me the residual for that car? 3 years, 10k, 12k, 15k.

Thanks a lot!

dtwleungnyc · May 2002

Thank you for your info and help.

gracevw · May 2002

I apologize if this has been done to death, but there is something about where in the calculation of a monthly lease payment the tax is figured. I noticed that the tax is calculated after the money factor is calculated and added to the monthly price. Shouldn't this be done before the money factor is calculated? If not, then essentially, we are paying tax on the "rental fee". Is this correct?

Thank you very much for the time!

gracevw

im_brentwood · May 2002

What state are you in? Different states do it differently.

Bill

CarMan@Edmunds · May 2002

Yes, bfriedman21, I have had an opportunity to look at BMW's May lease program. If you were to lease a 2002 BMW 325xi through BMW Financial Services for 3 years with 10,000 miles per during the month of May, you should be able to use their base lease money factor and residual value of .00255 and 61%, respectively.

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CarMan@Edmunds · May 2002

You're welcome, galun1. In order to figure out BMW's 10,000 miles per year residual value for any vehicle, just add 3% to its 15,000 miles per year residual value. BMW's Owners Choice program is basically a balloon note program. Most balloon notes that are being offered by manufacturers' captive finance companies today are actually very similar to leases. They provide consumers with low monthly payments and usually have the option to walk away at the end of your term like leases do. To be honest with you, balloon notes really are not all that popular today, except for in states that have tax laws that make them more favorable than leases.

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CarMan@Edmunds · May 2002

Hi rlowrie. There certainly has been quite a few BMW questions today, hasn't there

. OK, if you were to lease a 2002 BMW 540i through BMW Financial Services during the month of May for 3 years with 15,000 miles per, their base lease money factor and residual value should be .00245 and 58%, respectively. Their 12,000 miles per year residual value for an otherwise identical lease would be 60%.

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gracevw · May 2002

brentwoodvolvo,

I am in New York - upstate.

gracevw

CarMan@Edmunds · May 2002

Hi again galun1. I would be happy to. The 3 year lease money factor that you posted for the 2002 BMW 330i is correct. The 3 year 15,000 miles per residual value for this car should be 59%, the 12,000 miles per residual for this term should be 61%, and the 10,000 miles per year residual should be 62%.

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CarMan@Edmunds · May 2002

No problem, dtwleungnyc. I am glad that I was able to help you out.

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CarMan@Edmunds · May 2002

Hi gracevw. Unfortunately there is not one standard method that is used to calculate sales tax on leased vehicles. Each state (and even sometimes each county within a particular state) has its own rules that it uses to calculate sales tax. In order to find out exactly how the tax on leased vehicles is calculated in your particular area, you will probably need to contact your local department of motor vehicles or comptroller's office. If you let us know what state you are in, perhaps one of us could provide you with more information on how sales tax is calculated in your area or at least point you in the right direction in your attempt to find out the answer to this question.

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galun1 · May 2002

You have been very helpful. Thanks! Now it's going to the dealership and fight the battle....

gracevw · May 2002

Car_Man,

Thanks for the info. My last post may have been lost in the shuffle, I am in New York.

gracevw

im_brentwood · May 2002

I believ, that in NY State the tax is on the depreciation amount.

I'd ask over in smart shopper.. I know afk_x at least is a dealer in NY State and should know.

Bill

gracevw · May 2002

Thanks for the suggestion. I will try over there.

jchris2000 · May 2002

Dear Car_Man:

I am new here and searching for the money factor and residual for the BMW X5 3.0i promotion from BMW FS which just expired on April 30, 2002 (I'm in Massachusetts). According to the promotion, you could lease a 2002 BMW X5 3.0i (MSRP $39,545) for $469 per month with no downpayment, 12k miles, 36 months. I went in to lease this vehicle on April 30, and the dealer told me that there was a .0022 with a 64% residual (residual, he said would be raised for dropping my mileage to 10,000 per year) yet my payments came out even higher, using this formula. Was this accurate??? I'm approved for the vehicle, yet I want to be sure I am getting the right deal before I give him my money. Please advise.

Thanks!
JC

beowulf7 · May 2002

I'm pretty sure I've read that either the lessee or an authorized car dealership can purchase a leased car. My question is that can the lessee take his leased vehicle, which he thinks is worth more than his buy-out price, to another dealership and use it as a trade-in?

For example, I believe that a leased Toyota car can be traded in at a Honda dealership for a new Honda car. Now my question is can you take that same Toyota car, instead of simply returning it when the lease matures, use it as a trade-in at the same or another Toyota dealership? This would be possible if you've researched that the car has high demand (and hence resale value) and you've kept the mileage low.

rroyce10 · May 2002

.......... Whether you trade your leased vehicle .. or a vehicle from the local Credit Union, it pretty much works the same way, and is done everyday.

You call the Lease Co. (not the dealer) ..and get a exact pay-off, you use that towards the trade value. Not much difference if any, if you have the vehicle financed through any local or national lender ...

I hope this helps ...

Terry.

youzer · May 2002

Car_man,

Need your help on this one. Could you let me know what the numbers work out to be on the following.

36 mo Lease Dodge Dakota 2WD Ext.Cab Manual
18k miles annually
Tempe, AZ

What's the residual & MF on this one?

Also, have Dodge leases changed in the last 3 years? I'm coming off a lease and the residuals seem to have changed... So I am contemplating purchase v. lease.

Much thanks!

jnijankin · May 2002

Hi Carman!

Can you please give me the skinny on the numbers to lease an Audi TT coupe, 225hp model, 6spd, with audio package, 17 rims and leather? I live in South Florida. My lease ends in July and am almost there. Is going through an online service the best way to the cheapest deal? Leasing has always given me the jitters, despite all teh research I have done...
Thanks for your help!

CarMan@Edmunds · May 2002

You're welcome, galun1. Good luck in your negotiations!

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CarMan@Edmunds · May 2002

You're right, gracevw. Sorry about that. Your response slipped in right in the middle of one of my mega question answering sessions and I missed it. Bill made an excellent suggestion about seeing if there are any salespeople over on the Smart Shoppers Message Board who are in New York. They would be very well versed in NY's tax laws and may be able to provide you with an answer to your question. You also may be able to find out an answer by visiting one of the following Web sites: New York Department of Motor Vehicles or New York Department of Taxation and Finance.

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CarMan@Edmunds · May 2002

Hello JC. The lease money factor and residual value that the dealership you are working with quoted you for the 2002 BMW X5 last month are right no the money. I am well aware of the sample lease payment that BMW was advertising on this truck last month, and in order to arrive at the $469 monthly lease payment, a down payment of $2,500 was required. This most likely explains why the lease payment that the dealership quoted you is higher than what you were expecting.

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CarMan@Edmunds · May 2002

Hey beowulf7. In most instances, a lessee can indeed trade in their leased vehicle prior to its scheduled termination date. Whether or not this can be done is up to the bank that you are leasing your car or truck through, so you will need to check with them to find out for certain. Unfortunately, the cost of purchasing a vehicle well before its scheduled termination date if usually higher than what it is worth on the open market at that time. As a result, most consumers would be upside down when trying to complete this sort of transaction. This sort of transaction works out much better when consumers are near the scheduled end of their leases. There are definitely times when consumers can actually come out ahead by trading in their vehicles at the end of their terms and it happens all the time. Just make sure that the lease-end purchase option price that your bank provides you with is less than the trade in allowance that the dealership you are working with is willing to give you for your leased vehicle.

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CarMan@Edmunds · May 2002

Hi youzer. I would be happy to help you out. If you were to lease a 2002 Dodge Dakota Club Cab 2WD through Chrysler Financial in Arizona this month for 3 years with 15,000 miles per, your base lease money factor and residual value should be .00315 and 44%, respectively. Chrysler Financial does not publish 18,000 miles per year residual values. In order to lease one with that many miles per year you may need to purchase excess miles in advance on a cents per unit basis. Keep in mind that Chrysler is providing $2,000 consumer cash on 2002 Dakotas this month. This cash may be used in conjunction with the aforementioned lease program. As you can see, Chrysler's lease program on this particular truck is not very good right now. I personally would not be surprised if you were to lease one for less money through a bank other than Chrysler Financial. If not, then you may actually be better off purchasing this truck instead.

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CarMan@Edmunds · May 2002

Good morning, jnijankin. If you were to lease a 2002 Audi TT 225 Coupe with quattro in the state of Florida this month for 3 years with 15,000 miles per, Audi Financial Services' base lease money factor and residual value should be .00200 and 57%, respectively. Audi almost always issues a new lease program at the beginning of every month. So there is a very good chance that their lease program in July will be different than the one that they are running right now. As far as how to negotiate the best deal goes. I personally believe that one should be able to get the best possible deal on the car or truck that they are looking for by doing some research on its pricing here at Edmunds, by speaking with other owners / shoppers here in the Town Hall and by looking at their vehicle's TMV, and then comparison shopping with their local dealerships.

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rxke · May 2002

Hi Carman

Could you please give me the latest(money factor and residuals) on leasing these vehicles with the following terms? I live in New York(Westchester)

39 months for 12,000 or 15,000 miles

Thank you in advance. You have been very helpful in the past.

rxke · May 2002

Hi Carman

I just saw that the interest rate in May for the A4 is 2.9 for up to 36 months and 3.9 for 39-48 months. Could you please send me the residuals and money factors for 36 as well as 39 months. I would like to see if the monthly lease cost for a 39 month lease might be the same as a 36 month lease because of the lower interest rate.

Thanks again

bmw_5_series · May 2002

Car Man,

I need to know the lease rates in Chicago for 3 years/10K miles:

Volvo V40
Volvo V70
Land Rover Freelander S
Jaguar X-Type 2.5
VW Passat 1.8T Wagon

Thanks,

Chicagoland

benji123 · May 2002

Car Man,

What are the lease numbers on the 2002 Honda Accord EX V6 Coupe for May? I asked once before for April but I didn't have a chance to go in. I am interested in 36 months, 12,000 miles per year. Thanks!

Ben

stuartbonia · May 2002

Wife wants the Taurus. MSRP is $25,610. The quote after taking into consideration the rebate is $20,597. All prices are without tax.

The following lease prices are with zero down.

2 years/24k - $410 per month
3 years/36k - $350 per month

Pay All Lease Payments Up Front:

2 year lease - $9,549 Imputed interest is 2.89%
3 year lease - $11,111 Imputed interest is 8.35%

Paying it all up front for the 3 year lease is kind of interesting. I would basically be getting 8.35% per year on my money tax free.

What do people think about paying the lease up front? Is it worth it?

Thanks

stuartbonia · May 2002

Car man:

I got a lease quote for 12k miles on a Pathfinder LE and would like your opinion.

MSRP $34,603
Sell Price $31,351

36 Month Factors:

52% residual and money at .002
Lease price is $483 plus tax
$570 up front (1st payment & some small fees)

39 Month Factors:

50% residual and money at .0019
Lease price is $463 month plus tax
$492 up front (1st payment & some small fees)

What do you think of these numbers?

Thanks

stevenbr · May 2002

Carman,
I want to run lease quotes by you:
Acura TL type S 2003
MSRP $31830
Selling price $29630 (including 550 bank fee)
money factor 0.0024
res. val 65%
Monthly payment according to dealer 386 (including tax), plus cap cost reduction of $1000, first month, and doc fees $150 totaling $1600. According to my calculations monthly payment should be $360. Am I missing something?

remy725 · May 2002

Hi Carman
Can you please tell me what the MF & resid. is for a Yukon SLT 4WD in NY if leased thru GMAC?
36M
12k p/y

P.S.
Is the $2000 customer cash available if leasing with GMAC?

Thanks Much
Remy

beowulf7 · May 2002

Terry and Car_man, thanks for your respective posts (#3672 and 3678) to my question (#3671).

The reason I asked that question was that I thought it may seem odd when I'm asking the dealer to appraise my car and telling him that I owe whatever money as if I'm financing it. And then when I'm ready to make the transactions (buy the new car, return my current leased car by giving it as a trade-in), he'd have to call the lease maturity center to get a buyout quote. Since you said this happens all the time, I guess I shouldn't get nervous about it thinking that the dealer will back off on the deal b/c it's a leased vehicle, not one that is financed as if originally purchased.

dtwleungnyc · May 2002

NEVER pre-pay a lease. Always avoid making a large downpayment for a lease.

CarMan@Edmunds · May 2002

Hi rxke. Here is the information that you are looking for. If you were to lease a 2002 Audi A4 1.8T Sedan with quattro through Audi Financial Services in the state of New York this month for 39 months with 15,000 miles per year, their base lease money factor and residual value should be .00235 and 55%, respectively. The 12,000 miles per year residual for an otherwise identical lease would increase to 57%. If you were to lease a 2002 BMW 325xi Sedan through BMW Financial Services during the month of May, their 36 month, 15,000 miles per base factor and residual value should be .00255 and 58%. The 12,000 miles per year residual would increase to 60%. Last but not least, if you were to lease a 2002 Jaguar X-Type 2.5 through Jaguar's captive finance company during May for 39 months with 15,000 miles per year, their base lease money factor and residual value should be .00113 and 51%, respectively. The 12,000 miles per residual value would increase to 52%.

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CarMan@Edmunds · May 2002

Rxke, 39 month lease terms are only offered on the Jaguar and Audi that you are interested in. Unlike their retail financing special interest rates, their lease rates for 36 and 39 month terms are very similar or identical. With both of these vehicles, you should be able to get a lower monthly lease payment by leasing them for 39 months instead of 36.

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CarMan@Edmunds · May 2002

Hi Chicagoland. You certainly are interested in a number of vehicles. In order for me to provide you with the exact lease money factor and residual value for the Volvo models that you are interested in, your need to tell me exactly what models you are interested in. The lease programs for these two vehicles vary by trim level and by what options they are equipped with. As far as the other models that you are interested in go, here are the base lease money factors and residual values for them if you were to lease them through their manufacturers' captive finance companies for 3 years with 10,000 miles per: Land Rover Freelander S .00190 / 60%, Jaguar X-Type 2.5L (see previous post), Volkswagen Passat 1.8T Wagon .00185 / 59%. Once I have that additional information I will be able to give you an idea of what the lease programs should currently be like for the Volvo models that you are interested in. Talk to you soon.

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CarMan@Edmunds · May 2002

Hi again Ben. I would be happy to help you out. There's plenty of time left in the month for you to get your new car. If you were to lease a 2002 Honda Accord EX V6 Coupe through American Honda Finance Corp. during the month of May for 3 years with 12,000 miles per, their base lease money factor and residual value should be .00135 and 57%, respectively.

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galun1 · May 2002

Hi Car_Man, I asked about rates for 330i and 330ci earlier. Can you give me the money factors for 325ci and 325i, 3yr/15k,12k,10k? Also, I asked the car dealership about money factors for 330ci and 330i, and they came back with a money factor of 265. Can you share with me where you got the data for 330i with money factor of 205? Thanks!

campbellmi · May 2002

Car Man,

I am still looking at the Saab 9-3 5-dr for
a lease 3 yr/15,000 miles. Have you gotten a
chance to find the residual and money factor for this car leasing through Saab?

Thanks!

bmw_5_series · May 2002

Thanks Car Man! I am looking for a second vehicle for my wife. I already have 2002 MB S500.

Here are the details for the Volvos.

V40 Base: $24,900.00
Options:

Cold Weather Package $850.00
Premium Plus Package $970.00

V70 Base: $30,025.00
Options:

Auto $1,000.00
Power Glass Sunroof w/ Slide/Tilt Positions, Sliding Sunshade and Auto-Open $1,200.00
Touring Package $925.00
Cold Weather Package $450.00

Thanks Again,

Chicagoland

P.S. - Car Man, how about the Toyota Highlander Auto 2.4L 4x2 and the Toyota Camry LE auto

CarMan@Edmunds · May 2002

I personally do not see anything wrong with pre-paying leases. Unlike down payments which essentially disappear when a vehicle is stolen and never recovered or totaled during a lease, any money paid for a pre-paid lease should be refunded. If the savings that you realize is greater than the investment income that you realistically can expect to gain from that money over the same period of time (it almost certainly would yield you less than 8% in today's economic environment) and you have the money to spare, pre-paid leases can actually be very attractive.

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CarMan@Edmunds · May 2002

Hi stuartbonia. Let's take a look at the lease that you were offered. Even though you didn't mention if this truck was 2WD or 4WD, for now I will assume the latter. If you were to lease a 2002 Nissan Pathfinder LE 4WD through Nissan Motor Acceptance Corp. this month for 3 years with 12,000 miles per, their base lease money factor and residual value should be .00185 and 52%. So it appears to me as though the dealership that you are working with may be marking up this truck's base lease money factor a little bit. Using the numbers that they quoted you for this lease, .00200 and 52%, I come up with a zero down, pre-tax monthly payment of right around $475. However, if we use NMAC's base lease program, the payment drops to $468 per month. NMAC's base lease program for a 39 month lease of this truck provides a factor and residual of .00175 and 51%. Using the numbers that they quoted you, I come up with a lease payment of $458 versus a payment from NMAC's lease program of $442. I personally think that there is some room to negotiate in the deals that you were presented. You may want to consider comparison shopping with a couple of other local dealerships to see if they can beat the deals that you have been offered.

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CarMan@Edmunds · May 2002

Stevenbr, the lease money factor and residual value that you were quoted for this car look great. However, in order for me to calculate a sample lease payment for you on this car, I need you to tell me how long you plan on leasing it for and how many miles per year you wish to be able to drive without penalty. Once I have those additional pieces of information, I will see what sort of monthly payment I come up with.

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