Lease Questions - Ask Here

im_brentwood · May 2002

On a Ford Credit PrePay Lease... I think you can also do multiple security deposits too.

Which are another very effective way of reducing your net cost.

Bill

CarMan@Edmunds · May 2002

Hello Remy. If you were to lease a 2002 GMC Yukon through GMAC this month for 3 years with 12,000 miles per, their base lease rate and residual value should be 6.5% and 56%, respectively. Unfortunately, the $2,000 consumer cash that General Motors is providing on this truck right now may not be used in conjunction with GMAC's lease program.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · May 2002

Hi again, galun1. Here is the information for the other vehicles that you are interested in. If you were to lease a 2002 325ci through BMW Financial Services this month for 3 years with 12,000 miles per, their base lease money factor and residual value should be .00255 and 61%. The factor and residual for an otherwise identical lease of a 2002 BMW 325i this month should be .00255 and 60%, respectively. It appears to me as though the dealership that you are working with may be trying to mark up the base money factors for these two cars slightly.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · May 2002

I have had an opportunity to take a look at this month's lease program for Saab and would be happy to give you an idea of what the numbers should be like for this car right now. If you were to lease a 2002 Saab 9-3 5 Door SE through Saab Financial Services this month for 3 years with 15,000 miles per, their base lease money factor and residual value should be .00083 and 45%, respectively. When negotiating a deal on this car, keep in mind that Saab is providing $2,000 lease cash on it this month.

Car_man
Host
Smart Shoppers / FWI Message Boards

stevenbr · May 2002

Carman,
Sorry for not getting all needed information. Payment is based on 12k/36 month lease.

remy725 · May 2002

Hi again Carman
Thanks for the info on the Yukon.
I was quoted the same MF but the residual was 52% not 56% for 36M 12K p/y.
I would tend to believe you before the sales people at my local GMC dealer,but which is correct?
Also,can you please give me the same info for the GMC Envoy SLT 4WD?

Thanks
Remy

stuartbonia · May 2002

Thanks for the info on the Taurus and the Pathfinder.

Two years ago when I prepaid the wife's lease the effective interest was a little over 14%. I thought it was a good deal.

I'll probably prepay the 3 year lease and get over 8% on my money (tax free).

Brentwoodvolvo - Thanks for the idea on the security deposits. I'll give the dealer a call and see what he comes up with.

I know you both have heard this before. Thanks for all your efforts. It is very much appreciated.

troyy2k · May 2002

My lease is up the end of May (Chase Auto Finance), and as this is my first leased vehicle I have some questions about turning in my car:

1. My car has numerous scratches in the paint, and some dents on either side of the car. Do you recommend I have this damage repaired myself, or should I turn the vehicle in as-is and have them maske their assessments?

2. Are there any other general recommentations for lease-end, such as taking pictures of the car prior to turning it in? Any tips would be greatly appreciated.

km99cobra · May 2002

Car_Man,

Looking at all the numbers on a recent lease deal through Chrysler Financial, it appears that Chrysler adds a $250 "advertising fee" and a $700 "acquisition fee" to the bottom line. Can you verify this, or is this something the dealers tack on to bake more profit into the deal? Thanks as always.

Ken

im_brentwood · May 2002

No problem. If you cant do MSDs on a Cash Option Lease (Jaguar credit didnt allow it) you may want to look into multiple security deposits anyways.

When I was with Jaguar, you'd save about $2K in interest on a one-Pay lease (Also no Bank fee, so like $2,500 or so) but if you did 10 EXTRA Security deposits, say $8,000 or so, you'd save like $3K in interest. So it was net cheaper to do that plus you tied up less cash. OTOH, you also did have monthly payments...

Bill

im_brentwood · May 2002

The acquisistion fee should be closer to $500. They are charged by Banks on almost all leases. Sort of like a point on a mortgage I suppose.

The ad fee, is it onthe factory invoice? If it is, it is probably a legit part of the ionvoice (Manufacturer charges this to us dealers to pay for their ads, not ours..)

If it is being charged by the dealer and is not on the factory invoice, it is probably BS. Without seeing the car's invoice, its' tough to say.

Bill

CarMan@Edmunds · May 2002

Hi again Chicagoland. The lease money factors on the 2002 Volvo V40 are unbelievably low right now. If you were to lease a 2002 V40 Base (the ones that come with sunroof & leather have slightly higher factors) through Volvo Finance this month for 3 years with 15,000 miles per, their base lease money factor and residual value should be .00001 and 47%, respectively. If you were to lease a 2002 Volvo V70 Base through Volvo Finance for 3 years with 15,000 miles per, their base lease money factor and residual should be .00075 and around 55% (I am not sure of the exact resid). Toyota is not currently providing any sort of lease support on either the Highlander or the Camry in any of the regions that I have seen programs for. So if you were to lease either of these vehicles through Toyota Financial Services, you would have to use their standard lease money factors. I have not seen their standard factor lately, but should be able to find it out if you check back with me in a few days. The 3 year 15,000 miles per TFS residual values for these vehicles are 58% for the 2002 Highlander Base 2WD and 53% for the Camry.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · May 2002

No problem, stevenbr. I figured that it was a 3 year lease, but just wanted to make sure. OK let's work up a sample lease payment for you. If you were to lease a 2002 Acura TL Type S (MSRP: $31,830 / Cap: $29,630) through American Honda Finance Corp. this month for 3 years with 12,000 miles per, I come up with a zero down, pre-tax monthly lease payment of right around $402 or so. If you were to put $1,000 down on this same car, the monthly lease payment would fall to right around $371.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · May 2002

You're welcome, Remy. According to the information that I have seen, the 56% residual value that I quoted you is correct. If you were to lease a 2002 Envoy through GMAC for 3 years, the lease rate would be the same 6.5%, but the 12,000 miles per residual value should be 51%. That is unless you live in General Motors' Northeastern region where this program is enhanced to 3.5% and 52%.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · May 2002

Hey Ken. Bill is right. Chrysler Financial's base lease acquisition fee is actually $550, not the $700 that you were quoted. It sounds to me as though the dealership that you are working with it attempting to mark up this fee in an effort to bake additional profit into your deal.

Car_man
Host
Smart Shoppers / FWI Message Boards

zandozan · May 2002

Car_man, do you have the May residual and money factor for the 2002 Volvo S40 (those V40 rates were teasers!) and Passat GLS 1.8T? 3 year/36K, Ohio

Thanks from a long-time lurker

rlowrie · May 2002

Car_Man, thanks for the info on the BMW 540. Are the rate different for a 530? (3 yr, 15k)?

bmw_5_series · May 2002

Thank you!

Chicago area lease? I can get the X-Plan price for the Volvo V70.

Initial Dealer offer is $443.25 for 48 months/12K miles. Maybe this is
too long for a lease on Volvo wagon? Maybe 3yrs/12K?

Down Payment: $ .00 (Zero Down)
Monthly Payment: $443.25
Sec. Deposit: $450.00
Title Fees: $143.00 (Chicagoland)
_________________________
Total Out of Pocket: $1,036.25

What should the money factor and residual be at?
Base money factor and residual?

Thanks,

Chicagoland

haplology · May 2002

Can the GM Cash that is being advertised be used on a lease for the 2002 Escalade? Any idea when the 2003 is supposed to be released?

Thanks.

CarMan@Edmunds · May 2002

Zandozan, thanks for posting. Those S/V40 lease money factors sure are low this month. If you were to lease a 2002 S40 Base through Volvo Finance this month for 3 years with 12,000 miles per, their base lease money factor and residual value should be .00003 and 47%. If you were to lease a 2002 Volkswagen Passat GLS 1.8T Sedan through VW Credit for 3 years with 12,000 miles per, their base lease money factor and residual value should be .00185 and 57%, respectively.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · May 2002

You're welcome, rlowrie. The lease programs for the 2002 BMW 540i and 530i are exactly the same this month.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · May 2002

Hey Chicagoland. I personally feel that 4 years is a little to long to lease a vehicle for, but many people do lease for 48 months. In your post, I see that you stated that the V70 that you are interested in is loaded. However, the lease program for this vehicle actually depends upon what trim level you are getting, not its options. This month, Volvo Finance has different lease money factors for the V70 2.4T, V70 Base, V70 AWD, V70 AWD XC, V70 T5, and V70 XC Ocean Race. If you let me know which one of these you are interested in, I will be able to answer your question. It is probably a good idea to make sure that the dealership that you are working with is not trying to mark up the lease money factor that they use to calculate your monthly payment, but I personally doubt that they would mark up your factor on a X-Plan deal.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · May 2002

Haplology, unfortunately the $1,000 consumer cash that General Motors is providing on the 2002 Cadillac Escalade this month can not be used in conjunction with GMAC leases. I am not sure exactly when the 2003 version of this truck is scheduled to hit dealerships. Perhaps someone over on the SUV Message Board would know.

Car_man
Host
Smart Shoppers / FWI Message Boards

bmw_5_series · May 2002

Thank you! I was thinking the same thing about 4yrs, just might be to long for me. This is for a Volvo V70 Base (non-turbo 2.4 engine).

How about one more? A Mercedes-Benz C320 Wagon for
3yrs/10K and 3yrs/12K.

Thanks Again!

Chicagoland

benji123 · May 2002

Car Man,

Harbor City Honda is offering the following lease terms on a Accord EX-V6 Sedan Lease:

$4880 down, $119+tax per month, 36 months, 12,000 miles per year

Using the lease calculation method from Edmund's, I figured that they must be using a price of $21,900 or so to get to these numbers from the AHFC money factor and residual. Did I calculate that correctly? If so, that would seem to be a very good deal, wouldn't it? It's at least $1,200 less over the 3 years than any other offer I've seen in the last month. Please let me know if I'm seeing this correctly. Thanks!

gracevw · May 2002

Car Man,

Thanks for the tax info. I did a little looking around on the NYDMV and the NY Comptroller websites, but I haven't had much luck so far. I'm not really worried about it, I was mostly just curious.

Normally my husband and I go into a GM dealer and get whatever they are trying to unload at the time. We go around and tell them to give us their lowest OTD monthly price and that is the one we go with. This situation is a little different for me.

I have been doing the research and calculating lease payments using different price, money factor, etc., but I have no idea what the demand currently is for this car in my area or what money factor I can expect. My other concern is that I don't think I will be able to play the dealers off each other as there are only the two. I want to be comfortable with the offer I make. Am I making any sense??

gracevw

youzer · May 2002

Car_man,

Thanks for the Dakota info from before #3679 I have to find a better lease deal than Dodge is offering, that is for sure

Can I investigate w/ you what the numbers work out to be on the following.

36 mo Lease
2002 Chev Silverado 1500 Fullsize Ext. Cab 4dr LS 4WD SB (4.8L 8cy)
Manual Transmission
15k miles annually
Tempe, AZ

* What's the residual & MF?

* Whats the residual and MF it if I get it in 2WD and the 4.3L 6cyl?

* What's the $mile if over on milage?

* I take it per posting #3577 that the $2,002 incentive cannot be applied to this? Correct?

* Does gap insurance have to be figured in? Last month I test drove this truck and it came up in conversation. I currently have it endorsed to my auto insurance policy.

Thanks for the help. Reading these pages has been a good learning experience.

zandozan · May 2002

Thanks, Carman for the info on the Passat/Volvo. My wife is really looking forward to getting a Passat.

OTOH, I have been very close on several occassions to pulling the trigger on an Explorer XLT purchase through X plan. However, when navigating the Incentives and Rebates on edmunds, I noticed that Nissan has a lease deal on Pathfinders that has me stumped.

The money factor and residual % is missing but Edmunds claims that a 2002 4WD PAthfinder SE with Popular package can be had for 3/12000 for 320 a month with 679 down. I have got to be missing something... The cap cost says 19310 yet this model msrp's for around 30k.

Please explain the 'catch'. Do you know the residual % and mf. I'd like to know how this works out.

Thanks again!

youzer · May 2002

Car_man,

Hope you haven't started working on my question yet.

I meant to ask for help w/ #'s on an AUTOMATIC transmission. Sorry about that.

Thanks again.

icdchess · May 2002

Car_Man... You are my car leasing bible....
Jaguar X-Type. Looking for a 24 or 36 month lease, 15,000 miles, on a 3.0 with a MSRP of just about $42,000. No down payment and I am in New York and would like my 8.5% sales tax included. A few questions if you do not mind:
Money Factor?
Residual?
Are they still giving 2100 Lease Cash to the dealer?
Is there anything else I should know in order to make the best deal?
Thanks as usual!
Steve

Kirstie_H · May 2002

One major daily newspaper is looking for folks who drive 2002 or 2003 yellow or orange cars, and another major daily newspaper is looking for folks who successfully or unsuccessfully attempted to negotiate the purchase prices of their vehicles at the end of their lease terms. If you care to share your stories on either or both of these topics, please send an e-mail containing a short summary of your experience and your contact information to jfallon@edmunds.com no later than Tuesday, May 14.

Thanks much,

Jeannine Fallon
PR Director
Edmunds.com

CarMan@Edmunds · May 2002

No problem, Chicagoland. OK if you were to lease a 2002 Volvo V70 Base through Volvo Finance this month for either 36, 39, or 48 months their base lease money factor should be .00075. The corresponding 15,000 miles per year residual values for these vehicles are 54%, 52%, & 46%, respectively. The 12,000 miles per year residual values will increase to 56%, 54%, & 48%. I included the 39 month term in the information that I provided you with, because it is a nice compromise for consumers who want to lease for longer than 36 months.

If you were to lease a 2002 Mercedes-Benz C320S through Mercedes-Benz Credit Corp. for
3yrs with 12,000 miles per, their base lease money factor and residual value for May should be .00339, and 62%. The 10,000 miles per year residual value for this term would increase to 63%.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · May 2002

Hello benji123. Let me begin by saying that $4,880 is way too much money to put down on any lease. Consumers should be able to lease any car or truck out there today without putting any money down as a capitalized cost reduction. Making a large down payment on a lease leaves you vulnerable to losing that money if your vehicle is totaled in an accident or stolen and never recovered during your lease term. You should be able to lease a 2002 Honda Accord at very close to invoice, resulting in a 3 year 12,000 miles per, zero down, pre-tax monthly lease payment of right around $300. This is definitely the way to go with this particular car. To be honest with you, I don't even think that the deal that this dealership is advertising is possible. There must be some sort of catch.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · May 2002

You're welcome, gracevw. I am sorry that those Web sites did not have the information that you are looking for on them. Some states provide that sort of information on their sites and some don't. Your post definitely made sense. Competition for business almost always results in lower prices, in any market. If there are only two dealerships near your home that sell the type of vehicle that you are interested in you may indeed end up paying a higher price than someone who is in an area with intense competition. Of course, it still pays to research your purchase prior to doing any negotiating. I would be more than happy to give you an idea of what Volkswagen Credit's lease money factors and residual values should be like for the Beetle this month. However, in order for me to do so, I am going to need you to tell me exactly what model you are interested in, how long you want to lease it for, and how many miles per year you need. Talk to you soon.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · May 2002

I am glad that I was able to help you out, youzer. You are right about DaimlerChrysler's lease program, it is not very good. It hasn't been very good for a while now. That is why Chrysler Financial's lease penetration numbers are way down when compared to last year, and especially when compared to the numbers from several years ago. As far as the Chevrolet Silverado goes, if you were to lease any 2002 Silverado through General Motors Acceptance Corp. this month for 3 years, their base lease rate should be 6.5%. As you can see, this is not a very good lease program either. The 3 year, 15,000 miles per GMAC residual value for any 2002 Silverado 1500 Extended Cab pickup should be 51% this month. The residual values for the 3/4 Ton and 1 Ton Silverado trucks falls slightly to 49%. Although I have not seen what they charge per mile recently, the last time that I heard, GMAC was charging $.08 per each additional mile over 15,000 purchased in advance for all of its brands excluding Cadillac, which was $.15 per mile. You are correct, the consumer cash that General Motors is providing on the 2002 Silverado pay not be used in conjunction with GMAC's lease program. I do not know if GMAC includes gap insurance in its lease contracts. If I had to guess, I would say that they probably do, but you need to check with them to be certain.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · May 2002

You're welcome, zandozan. Nissan is advertising a decent lease on the 2002 Pathfinder this month. Right now they are touting a lease on the 2002 Pathfinder SE 4WD w/Popular Pkg & automatic transmission (MSRP: $29,888) for $325 per month with $1,650 down over 39 months with 12,000 miles per year. In order to arrive at this payment they were using $1,000 lease cash and a lease money factor of .00133.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · May 2002

I am glad that you enjoy this forum so much, Steve. Unfortunately, the dealer cash that Jaguar was providing on X-Type models that were equipped with the premium package was discontinued. However, they still have a relatively attractive lease program on this car. If you were to lease a 2002 Jaguar X-Type 3.0L through Jaguar Credit right now for 3 years with 15,000 miles per, their base lease money factor and residual value should be .00022 and 54%. Their 24 month numbers should be .00012 and 62%. Please let me know if you have any other questions.

Car_man
Host
Smart Shoppers / FWI Message Boards

gracevw · May 2002

OK, here's what I'm looking for...

The GLS trim with no options; the only addition would be the $100 for Northeast emissions. I don't really care about the color, but I'd prefer the green (I don't know if the color makes any difference in what's in demand). I did check Leasecompare.com they have the residual at $10,266 and a MF of 0.00263 - which I'm hoping is very high!

gracevw

youzer · May 2002

Car_man,

Then I guess my question is, for pickups or SUV's, is there an easy reference you can direct me to that indicates who has the best terms available in my area? Or do you know off hand a just couple? Kinda a bummer that the two manufactures I want are not very competitive at the moment.

Tempe, Arizona is where I am.

Gosh, I just may settle to finance the ole fashioned way.....

Thanks again for being a great resource!

im_brentwood · May 2002

If you're in NY...

Talk to the guys at Montclair Jaguar. I used to work there.. the sales Mgr is John Melone and as far as buying.. talk to Paul DeBlois. They should be able to beat any deal you can get out there.

Bill

bmw_5_series · May 2002

Thanks!

Chicagoland

winfred · May 2002

I am thinking to lease a car for a year, or a little more, I assume a used one will be a better choice, since I won't lose the 30% depreciation in the first year?
Any suggestion? I only need a car for a year, should i buy an used car and sell it after I am done, or just lease one and don't have to deal with the selling process?

im_brentwood · May 2002

Before we get too much further, figure out what ya need and your budget and see me and Terry over in Real-World Trade-In values in smart shopper. We can give you some ideas of what cars to look at (Low Depreciation.. a Kia Sephia bought new can drop as much in a year in $$$s as a Mercedes E320!)

As far as leasing.. used car leasing isnt what it used to be. And when it was strong (Gee I miss GECAL and Oxford Resources) none of them did 12-Month terms.

Volvo Finance did them on new and used, they still may, but the programs stunk.

You are better off carefully buying used and selling in a year.

Bill

winfred · May 2002

One more question, if I consider to buy a (Pre-certified) 99 beetle or a 2000 Celica, make any different to your advice?
Winfred

mlauricella · May 2002

Hello

I am new to the leasing game, and wondered what kind of numbers I can expect to see when my LTZ arrives at the dealer. 3 yr,15K per yr lease.

Can I expect a 51 or 52% residual?

Can I use GM's $1000 rebate with a lease?

About what will my payments be with 0 down?

Cap Cost of 32,578

arjun · May 2002

Car_Man - I need some help. Looking to lease the BMW 745i. Can you tell me the residual values and the money factor for a 3 year lease/ 12,000 miles a year. Also, I live in Illinois and understand that taxes are on the entire cap. cost. Is that correct? How is it calculated? Also, if so, would I be better off with the Owner's choice program.

Thanks a lot in advance.

im_brentwood · May 2002

Well... prolly not the best topic to get into it too much...

But, a Beetle will probably have the better resale of the two. Your best bet is to probably shop carefully and find one on an independent lot or froma private party. "Certified" pre-owned cars often are overpriced. I.E. As an Independent dealer I'm selling cars identical to the local Jaguar dealership for $4,000+++ less. And their "certification" costs them $900.

But shoot over to RWTIVs and we'll get ya some ##s to shop with.

Bill

rakeshmm · May 2002

is to better to buys a used 540i (say 99 model)and sell it after 2-3 years or is it better to lease the car for 2-3 years? i expect my duration of stay in the US to be around 2 to 3 years. i would like to know in which way would i loose less money.

CarMan@Edmunds · May 2002

Hi again, gracevw. Thanks for the additional information. Let's take a look at the numbers for the vehicle that you are interested in. If you were to lease a 2002 Volkswagen Beetle GLS (non-1.8T / non-TDI) through VW Credit this month for 3 years with 15,000 miles per, their base lease money factor and residual value should actually be .00165 and 56%.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · May 2002

Youzer, the main problem with the vehicles that you are interested in is their size. For whatever reason, perhaps it is because they are relatively popular compared to the small number of them that are being produced, large SUVs and full-size pickups never seem to have much in the way of lease support available on them. So vehicles like the F-Series, Suburban, Yukon, etc... really aren't going to be good candidates for leases. If you can add mid-size SUVs and compact pickups to your search you will have a lot more options.

Car_man
Host
Smart Shoppers / FWI Message Boards

Lease Questions - Ask Here

Comments

Helpful Tools

Most popular vehicles