Hi Bill..thanks for the straight up info. I had called AHFC and spoke to them about the buyout. Is it true that Honda does not negotiate their buy out prices?? Any suggestions as to where the best place is to go to finance the buy out? I work for a car dealership and you're so honest? (My father used to be a wholesale used car dealer..believe it or not...one of the only honest ones I think there was!) gerri
Hi Bill..thanks for the straight up info. I had called AHFC and spoke to them about the buyout. Is it true that Honda does not negotiate their buy out prices?? Any suggestions as to where the best place is to go to finance the buy out? You work for a car dealership and you're so honest? (My father used to be a wholesale used car dealer..believe it or not...one of the few honest ones!) LOL have a great nite. gerri
Good morning everyone. As you may have been able to tell, I have been away on vacation for the past several days. I think that the best way to handle answering all of your questions is for those of you who are still looking for answers to re-post your messages by either cutting and pasting a previous message or by writing a new one in this discussion. Thanks.
Hi Bill, thanks for the quick response! I hadn't thought of the consequence of wrecking the car. Hope you don't mind some further pondering about this....
- In Canada (and perhaps the US?) I can get a standard rider to my insurance for the first 2 years (for about $40CDN) called Depreciation Waiver Coverage. As the insurance assoc. states: "Has your car been written-off in an accident within the first 24 months of the original delivery date? This optional coverage ensures that you will receive the full value of what you paid for the car -- without depreciation."
Would that not eliminate the risk you outline, at least for the first two years?
- For the remaining year (or years with a longer lease), it seems to boil down to the following - in exchange for ensuring you won't lose any down payment in case of totalling your car, you end up paying quite a bit more in interest costs.
To take a real example, a $5,000 (Canadian) down payment would save me about $1,319.44, over the life of a 3 year lease. That's fairly expensive insurance, particularly for a risk that only can occur in the last year of my lease (I realise it would be longer with a 4 year lease). In essence, do I want to pay $1,319.44 (in higher costs) to save myself $5,000 minus the extra interest I've paid upto the date I wreck the car?
- Lastly, it also seems that this risk is the same for those who buy a car - in essence, you risk losing the depreciation. I realise that leasing offers a way of avoiding that loss, but it doens't seem cheap!
Is my thinking right? I realise everyone will have different risk tolerances, etc. - I just want to make sure I'm outlining it correctly.
Can you get me the current money factor and residuals for the Saab 9-3 (SE 5-door) and 9-5 (all three versions). 12,000 miles/year. Any help is much appreciated.
Also, I have a general question about residuals. Is the residual percentage applied to the cap cost, MSRP, invoice, or something else entirely? If the residual is, say, 45%, what figure do I multiply by .45?
The problem isn't with the insurance coverage it is that you aren't the owner of the car even though YOU pay INSURANCE and GAP INSURANCE if the car is totaled on a lease YOU will not SEE A DIME. That is why you shouldn't put big cash down. if you want to reduce the payments look at doing Multiple security deposits to lower your MF that way you will get the money back no matter what and save on monthly payments. Hope This helps.
Can you tell me the residual and money factor for a 2002 GMC Sonoma 4 dr Crew Cab SLS 4WD shortbed? I am interested in a 36 month, 15,000 mile per year lease? Also I see there is a $3,000 rebate on this truck, can I use that towards the lease downpayment???
I had a great time. Thank you for asking, parnola. Here is the information that you are looking for. If you were to lease a 2002 Honda CR-V LX 4WD through American Honda Finance Corp. this month for 3 years with 15,000 miles per, their base lease money factor and residual value should be .00240 and 59%, respectively. The residual value for a 2002 CR-V EX 4WD would be 60%. Both models residuals would increase 2% if you were to lower your mileage allowance to 12,000 miles per year. As far as the 2002 Toyota Toyota RAV4 goes, if you were to lease one with 4WD this month through Toyota Financial Services for 3 years with 15,000 miles per, their base lease money factor and residual value should be .00280 and 60%, respectively. The 12,000 miles per year residual value for this truck if it was leased for three years should be 62%.
Good morning, jefepro2. I would be more than happy to help you out. If you were to lease a 2002 Nissan Pathfinder LE 4WD (let me know if you are interested in the 2WD model instead) for 36 months with 15,000 miles per, this month's Nissan Motor Acceptance Corp. base lease money factor and residual value should be .00185 and 51%, respectively. If you were to lease this same truck for 39 months, the numbers would change to .00175 and 52%. If you were to lease a 2002 Infiniti QX4 4WD (again let me know if you are interested in the 2WD model instead) through Infiniti Financial Services for 36 months and with 15,000 miles per year prior to May 31st, the base lease money factor and residual value should be .00113 and 52%, respectively. The 39 month numbers for this truck should currently be .00133 and 51%. These programs are only scheduled to run through May 31st. When negotiating a lease on either of these models, it is important to keep in mind that Nissan has $1,000 lease cash available on the 2002 Pathfinder and $500 on the 2002 QX4.
Hi kevin110. Thanks for re-posting your original message. If you were to lease a 2002 Saab 9-3 SE 5-door through Saab Financial Services Corp. this month for 3 years with 12,000 miles per, their base lease money factor and residual value should be .00083 and 46%, respectively. If you were to lease a 2002 Saab 9-5 Linear Sedan for identical terms the numbers should be .00036 and 44%. If you were to lease a 2002 9-5 Arc Sedan the numbers should be .00025 and 47%. Lastly, if you were to lease a 2002 9-5 Aero Sedan the numbers should be .00086 and 50%. All vehicles' residual values, including the ones that I just mentioned, are based upon a percentage of their full MSRPs, including any options that may be residualized. When negotiating a lease on these models, keep in mind that Saab is providing $3,000 lease cash on the 9-3 SE 5-door, $4,000 on the 9-5 Linear Sedan, and $2,000 on both the 9-5 Arc and Aero Sedans that may be used to reduce these vehicles' capitalized costs.
Hello Leland. If you were to lease any 2002 GMC Sonoma through General Motors Acceptance Corp. this month for 3 years with 15,000 miles per, their base lease rate should be 3.5%. All 2002 Somoma Crew Cab models should have a supported 36 month, 15,000 miles per year residual value of 52% through GMAC right now. General Motors is providing $3,000 consumer cash on the 2002 GMC Sonoma through July 1st. However, unfortunately this money may not be used in conjunction with GMAC leases so it may not be used to reduce your truck's capitalized cost.
Here's a repost of my questions. Thanks in advance.
I have a 3yr lease on a 1999 Trooper that ends in the 1st week of August. The residual is the buyout price of $15,495. It has about 41,000 miles by then which is 5,000 over the lease at .15 a mile or $750. It's in very good shape with a couple of door dings and some scratches that I imagine I'd be charged for. It's a 4-wheel drive model with an automatic. The options are: nerf bars (like running boards), floor mats, cargo mat, bug shield, and a 6 disc, indash CD player. I've also added a trailer hitch, but I could take that off. I like the vehicle and will buy it if it's a good deal. I've looked in the newspaper here in Denver,CO and on-line on the Auto Trader. The lowest asking prices from private parties and dealers that I am seeing is about $17,500 with asking prices up to $19,000. Anything lower than $17,500 has a lot more miles. The TMV comes in much lower so I don't know if I should rely on say a value of $16,750 for August as a "market value". Here are my questions: 1)What is a good "market value # to compare to my buy out price of $15,495? 2)I will attempt to negotiate a lower price no matter what. What should I offer below the buy out. I'm thinking of offering $13,500 and accepting up to $14,500. Should I wait until the last minute to offer it? How do I get past a customer service rep and talk to someone who can negotiate? Will it help me in my negotiations to take financing with the leasing company GE Capital? I have excellent credit with a very high score. Has anyone had experience negotiating with GE Capital. This was a very good lease rated as "Gold Star" by Intelilease so I imagine there are a bunch of them coming due now. Any tips would be appreciated? 3) Some here has suggested not buying out a lease and having the dealer buy the vehicle at auction and then buy it back from them for a lower price? Is this a good plan? Can I be assured the dealer can get it? I assume they would have a pretty good idea of what they would have to pay for it. What would be a fair mark up to pay for them doing this?
Thanks a bunch. I'm looking forward to an education. Mark
Carman; do you have any experience with American Honda Finance Corp? I am think of leasing a 2002 Civic for 3 years. In 1996 I leased a Civic and had real problems with AHFC and what I owed. They charged for every ding, road chip and what they called excessive wear. The lease price is excellent but I am not sure of AHFC. Comments?
Hi Car Man, I am currently considering the 2003 Honda Pilot for a lease. The Honda rep stated that three year residuals on the Pilot should be over 60% based on the high residuals on Odessey's and MDX's. Also the fact that it is a 03' should help even more. Is this accurate? Also do you have the current residuals and money factors for a Highlander LTD. 2wd and the 02 Explorer XLT?Thanks
My family is considering leasing one of two vehicles: a 2002 Honda Civic, or a 2002 Volkswagen Jetta. I need to know what the minimum liability insurance requirements for the two leasing companies (VW Credit and Honda Credit)are for the state of Louisiana.
Hi Mark. Thanks for taking the time to post this message again. Taking a look at the Edmunds.com TMV for an identical vehicle would be one good way for you to get an idea of what sort of deal your lease-end purchase price is. Another way would be to hop over to the Smart Shopper Message Board and ask Bill and Terry in the Real World Trade In Values discussion their opinion of your vehicle's purchase price. They are very knowledgeable and are nice enough to give people their opinions of deals. When attempting to lower a vehicle's lease-end purchase price it usually is important to try to speak with someone up the ladder a few rungs at the bank that you are leasing it through. Most likely they will not ask you for an offer, but rather tell you the lowest amount that they are willing to let you purchase your truck for. It is possible that you can work with your dealership to try to get your truck for less than its set purchase price, but if your purchase price is already a pretty good deal it is unlikely that you will be able to do much better by adding the dealer, who wants to make money off of any transaction that they assist you with, to your equation.
Hello miiames. I actually am very familiar with American Honda Finance Corp. It is interesting that AHFC was so strict with you when you leased your Civic several years ago. Perhaps they have loosened up a bit, or perhaps you just were dealing with someone there who was in a bad mood. I personally have leased two vehicles through AHFC and have been charged absolutely nothing at lease-end for excess wear and tear when I definitely expected that I would be, given the condition of my vehicles.
Hey terry07. I have not seen residual values for the 2003 Honda Pilot yet. However, since their current lease program is only scheduled to run through the end of May, they may issue residuals for their new truck in their June program. We will see next week if they actually do. I suspect that the Pilot will indeed have pretty high residual values when it is introduced. The 2002 Honda Odyssey currently has 3 year 15,000 miles per residuals or right around 60%, so it would not surprise me in the least if the 2003 Pilot had residuals that were at least that high. I would be more than happy to give you an idea of what the lease programs should be like for the Highlander and Explorer right now, but I am going to need you to tell me how long you plan on leasing these trucks for and how many miles per year you plan on driving them first.
Thanks to everyone who replied to my earlier query about leasing, and explained why you avoid putting down a large down payment in a lease.
However, I'm now stumped on how to avoid paying all that extra interest that will come with putting down little, or no, money. How do I use the cash I have on hand (quite a bit) to lower the lease costs, without putting it at such risk?
If I could (safely) make the up front payment (or the like) I'm able to, I could save over $2,500 on a 3 year lease. There's also the issue of optics with my better half... She'll go nuts if she sees a large lease payment every month, but would be quite happy with the smaller one that would result with a decent up front payment.
Will making a quite large security deposit make a similar difference, as was suggested? Is there a risk that the leasing company will try to use up the large security deposit at lease end?
As Bill had posted quite a few times. It all depends on which car you are planning to lease, and also depends on what time of the year you are planning to lease it. Some company do not allow multiple security deposit to lower the money factor. While others will. Hopefully Bill will see your post and give you more info.
Figure you get .00010 to .00015 off for every EXTRA security deposit you place.
Sooo... say it is a $25K cap cost and like a $13K residual.
$136.80 saved on this deal over 36 months for every, say, $450 security deposit (I am assuming a MF of .00250 so we have a $428 payment) at a .00010 discount. At a .00015 discount ya save $205.20 for every extra $450 security deposit.
In other words.. say a $4,500 investment will "return" you $1,368.00 or $2,052.00 over 3 years, effectively tax-free.
Even at .00010, that's 10% or so a year... And at .00015 that's closing on a 15% annual return.
Bill, many, many thanks for your help! Your choice of, uh, opening language was very appropriate - we are talking about a very germanic "people's car"! The alternate is an Acura. Since this is in Canada, I don't expect you'll have the rates, etc., but you're example was really helpful. That is indeed not a bad deal!
A question, though - what happens to security deposits if I total the car or it gets stolen? Do I still get my security deposit back??? If not, I'm back to where I was in the first place, with no safe place to put my money down :-(
Again, many thanks for your info. & calculations - if you ever get tired of cars, perhaps you have a second calling ;-)
Wouldn't the cheap waiver of depreciation insurance solve your problem?
I'm looking at an actual lease file right now where the guy put $5,000 down. Cap cost (selling price) was $34,600. Monthly payments were $475.23. If it would've been totaled after making one payment the payout to Ford Credit would've been $29,323.51.
With the waiver of depreciation insurance, this person's insurance company would be cutting a cheque for $34,600. $29,323.51 would go to payout the lease, leaving $5,276.49 for the customer.
Hi Landru2 - that's exactly the point I was trying to make earlier in my post #3855. However, clpurnell in 3859 seemed to think all the money would go to the leasing company directly.
The more I think about it however, I wonder about this. It seems to me that as long as I pay for the value of the car, the leasing company shouldn't get a windfall (or shortfall) from my insurance. I think I'll call my insurance company.....
Bill aka Brentwoodvolvo - any views on this? Do you agree with landru2?
What happens anyway if a leased car is stolen or wrecked? Does the leasing company simply take the cash from the insurance and GAP insurance and say "thanks - see ya later", do they replace the car, etc?
I'm not sure if this a Canada-U.S. thing or not. I've read many times on here from posters including Bill, that downpayments will be lost if you total a leased vehicle. Perhaps the waiver of depreciation insurance is not available in the U.S.? I do know that I had not heard of the multiple security deposit scenario like Bill outlined. Perhaps that isn't available in Canada or perhaps I've just never heard of it.
Without the waiver of depreciation, the insurance will pay the leasing company the determined market value of the car with the leasing company absorbing however much it takes to add up to the payout (Gap insurance). So, the transaction takes place only between the insurance and leasing companies. This is when a downpayment could be lost.
With the waiver of depreciation insurance, the insurance company will give the customer a check, usually made payable to the customer and the leasing company. Then, the leasing company will refund you any difference between the payout and the insurance check. No windfall goes to the leasing company, just the lease payout.
Hey guys thanks for all your assistance! I was seriously wondering how I was going to lease if my downpayment was at risk, but I've now got some reassurance with the waiver of depreciation. Too bad it's not available in the US!
Landru2 - I too handn't seen much talk of multiple security deposits, but certain dealers refer to it on their web sites, newspaper ads, etc. I saw one such ad from BMW a few days ago.
I just came back from a local Audi dealer that offered me the following on an Audi TT lease for a 225 hp model with the audio package option, 12000 mi a year - no money down (just pay the inceptions which amount to $1500 out of pocket)
39 month lease at $509.00 plus tax. They based it on a 55% residual and a money factor of .002150 (Audi financial). I feel I can do better - any suggestions on how to get a better deal?
Hey topgun7. To the best of my knowledge, the lease program that Lexus was offering during the month of May was scheduled to expire on the 31st. I have not had an opportunity to take a look at their June lease program for the LS430 yet. However, I should have had an opportunity to take a look at it by the end of the week. Please feel free to check back with me then.
Good morning, jnijankin. I would be more than happy to calculate a sample lease payment for you on this car, however I have not seen Audi's June lease program yet. I should have had an opportunity to take a look at it by mid-week. Please feel free to check back with me then and I will tell you exactly what the lease payment should be like for a similar vehicle. When you check back with me, it would be a huge help if you provided me with the state that you plan on leasing this car in, its full MSRP, and the price that you have been able to negotiate on it. Talk to you soon.
Thanks Carman for the quick reply - I will check back with you but to answer your questions the state is Florida and in this case the numbers calculated are strange. He showed me a selling price of $37,945.00 which is actual MSRP for this car with Audio Package option. The salesperson then gave me the residual and money factor after I had to ask for it which was 55% and .002150 respectively. But he also showed me the residual that was calculated at $21,628.65. I did not negotiate a price (b.c wanted to see first what was offered), but after trying to figure out the MSRP from the residual it appears to be about $39,324.81 - Is this right? He told me a rate of 38 months x $509.00 + tax, but I cannot figure out how they came up with this number?? Looks like the MSRP is inflated and then I am being charged the actual MSRP - if I am right I should be able to get a much better number.... Your thoughts are appreciated as always.
My lease on my 99 Maxima will be up in about 5 months and I am looking to purchase another car from a different dealer. I can only put 1500 more miles on my car. Since I will obviously go over in miles and be forced to pay .15 each mile over, not to mention the other wear and tear - would it be in my best interest to buy the car and then inturn sell it, or use it as a trade-in to purchase my next car?
Hi Car_Man, I posted back in the beginning of May asking about lease rates for the BMW. I locked in the lease rates in May for a 330i 15k/yr 36 months. However, I heard that BMW FS lowered their lease rates for the 330i in the June program. Can you verify that for me please? I got a money factor of 245 for the 330i - the base 205 plus 40 extra for the dealer (bay area... dealer won't bulge). Thanks!
What is the money factor/residual on the Acura RL lease that is currently offered? One Houston dealer is currently quoting a capitalized cost of $38,300-will this go lower by the end of the Summer?
Whether you would be better off continuing to drive your current car or purchasing it and trading it in or selling it on your own will completely depend upon two main factors, the amount of money that it will cost you to purchase your car at this point in time and the amount of money that you can realistically expect to get for it as a trade. You can find out exactly how much money it will cost you to purchase your Maxima by contacting the bank that you are leasing it through (probably Nissan Motor Acceptance Corp.). Although there certainly is no guarantee that they will be willing to work with you, make sure to try to negotiate your vehicle's purchase price with your bank. Sometimes this requires moving up the corporate ladder a few rungs. Again, banks often will not negotiate purchase prices' of vehicles, but it certainly is worth a shot. Once you have that number, compare it to the Edmunds.com True Market Value for your car and perhaps run it past the helpful gentlemen over in the Real World Trade In Values discussion on the Smart Shopper Message Board. If you are certain that you can get more money for your car than it will cost you to purchase it then you may want to consider buying it now rather than running up all sorts of excess mileage on it.
Hi again galun1. I have not seen BMW's June lease program yet. I should have had an opportunity to check it out within the next couple of days. Please feel free to check back with me late this week and I would be more than happy to tell you exactly what their June program is like. Talk to you then.
Good morning, jpyle1. Acura's current lease program is scheduled to run through July 1st, so I would be able to give you an idea of what Acura's current lease program for the RL is like right now. However, I first need you to tell me how long you plan on leasing this car for and how many miles per year you wish to drive without penalty. Once I have this information I will be able to give you an idea of what the current lease parameters for this car should be like. As far as this car's capitalized cost goes, yes it is entirely possible that your dealer will be willing to lower their asking price for this car as the model year progresses. However, there are two negative things that could happen if you wait. One is that they could sell many of their remaining 2002 RLs, leaving a slim selection for you to choose from and forcing you to select a color that you might not normally choose. The second bad thing that could happen if you wait is this car's lease residual values could fall after the current lease program expires on July 1st. If the residual values do fall, which is very likely, and Acura does not increase their support proportionally to make up for this drop, then it will be more expensive to lease this car than it would have been.
Again, I will fill you in on the particulars of this car's current lease program as soon as you give me the additional information that I need. Talk to you soon.
Thanks for the additional information, jpyle1. According to the latest information that I have seen, if you were to lease a 2002 Acura RL without Navigation through American Honda Finance Corp. right now for 39 months with 15,000 miles per year, their base lease money factor and residual value should be .00035 and 46%, respectively. Just in case you are interested, Acura is advertising a sample lease on the 2002 RL (MSRP: $43,650 / Cap Cost: $39,265) right now for $499 per month over 39 months with $1,000 down and 12,000 miles per year. Please let me know if you have any other questions.
Regarding my post Nr. 3888 - do you have any thoughts on it? I spoke again with Audi and they reduced the cap cost to the mid $35,000 (in their words)and with inception fees of $1500 and out of pocket of $1000.00 the lease comes to $469.49 per month + tax. Is it possible to actually pay the tax up front and not assume it in thelease? Is this worthwhile? I live in FL.
Jnijankin, some states do allow the payment of tax on leased vehicles in advance, but I do not know exactly what the lease tax laws are like in the states of Florida. Your may be able to find out an answer to this question by speaking with your dealer or your local Department of Motor Vehicles. As far as this vehicle's capitalized cost goes, your dealership is legally obligated to disclose this number to you when you lease a new vehicle. Make sure to find out exactly what they are charging you for this car prior to signing any sort of binding lease agreement. You also should find out this car's exact full MSRP. With those two numbers, I can calculate a sample lease payment on this TT for you and tell you exactly how much your monthly lease payments should be on one in your area during the month of June.
I am new to the list (this is my first post). What is the residual and money factor for the Acura MDX and Lincoln's Navigator? My wife and I love each vehicle and are trying to learn if it would advantagous to us to lease one of these new models. Thanks for your advice.
Good afternoon carman. I am hoping you can assist me with leasing information for a 300M. My wife would like to lease one for 3 years at 15k per year. The major options on it would be leather and a sunroof. Could you please advise me of the current residual on this vehicle as well as the money factor. I am going to go elsewhere on your site and determine any incentives. It would be leased in NJ if that makes a difference as well. Thank you and have a good day.
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gerri
have a great nite.
gerri
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- In Canada (and perhaps the US?) I can get a standard rider to my insurance for the first 2 years (for about $40CDN) called Depreciation Waiver Coverage. As the insurance assoc. states: "Has your car been written-off in an accident within the first 24 months of the original delivery date? This optional coverage ensures that you will receive the full value of what you paid for the car -- without depreciation."
Would that not eliminate the risk you outline, at least for the first two years?
- For the remaining year (or years with a longer lease), it seems to boil down to the following - in exchange for ensuring you won't lose any down payment in case of totalling your car, you end up paying quite a bit more in interest costs.
To take a real example, a $5,000 (Canadian) down payment would save me about $1,319.44, over the life of a 3 year lease. That's fairly expensive insurance, particularly for a risk that only can occur in the last year of my lease (I realise it would be longer with a 4 year lease). In essence, do I want to pay $1,319.44 (in higher costs) to save myself $5,000 minus the extra interest I've paid upto the date I wreck the car?
- Lastly, it also seems that this risk is the same for those who buy a car - in essence, you risk losing the depreciation. I realise that leasing offers a way of avoiding that loss, but it doens't seem cheap!
Is my thinking right? I realise everyone will have different risk tolerances, etc. - I just want to make sure I'm outlining it correctly.
Many Thanks,
Mike
May I have the residuals and money factors for the Honday CR-V and Toyota RAV4? 3-year, 12k and 15k would be great. Thank you!
Thanks for the Service!
Can you get me the current money factor and residuals for the Saab 9-3 (SE 5-door) and 9-5 (all three versions). 12,000 miles/year. Any help is much appreciated.
Also, I have a general question about residuals. Is the residual percentage applied to the cap cost, MSRP, invoice, or something else entirely? If the residual is, say, 45%, what figure do I multiply by .45?
Thanks much.
Can you tell me the residual and money factor for a 2002 GMC Sonoma 4 dr Crew Cab SLS 4WD shortbed? I am interested in a 36 month, 15,000 mile per year lease? Also I see there is a $3,000 rebate on this truck, can I use that towards the lease downpayment???
Thanks,
Leland
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Here's a repost of my questions. Thanks in advance.
I have a 3yr lease on a 1999 Trooper that ends in the 1st week of August. The residual is the buyout price of $15,495. It has about 41,000 miles by then which is 5,000 over the lease at .15 a mile or $750. It's in very good shape with a couple of door dings and some scratches that I imagine I'd be charged for. It's a 4-wheel drive model with an automatic. The options are: nerf bars (like running boards), floor mats, cargo mat, bug shield, and a 6 disc, indash CD player. I've also added a trailer hitch, but I could take that off. I like the vehicle and will buy it if it's a good deal. I've looked in the newspaper here in Denver,CO and on-line on the Auto Trader. The lowest asking prices from private parties and dealers that I am seeing is about $17,500 with asking prices up to $19,000. Anything lower than $17,500 has a lot more miles. The TMV comes in much lower so I don't know if I should rely on say a value of $16,750 for August as a "market value". Here are my questions: 1)What is a good "market value # to compare to my buy out price of $15,495? 2)I will attempt to negotiate a lower price no matter what. What should I offer below the buy out. I'm thinking of offering $13,500 and accepting up to $14,500. Should I wait until the last minute to offer it? How do I get past a customer service rep and talk to someone who can negotiate? Will it help me in my negotiations to take financing with the leasing company GE Capital? I have excellent credit with a very high score. Has anyone had experience negotiating with GE Capital. This was a very good lease rated as "Gold Star" by Intelilease so I imagine there are a bunch of them coming due now. Any tips would be appreciated? 3) Some here has suggested not buying out a lease and having the dealer buy the vehicle at auction and then buy it back from them for a lower price? Is this a good plan? Can I be assured the dealer can get it? I assume they would have a pretty good idea of what they would have to pay for it. What would be a fair mark up to pay for them doing this?
Thanks a bunch. I'm looking forward to an education. Mark
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However, I'm now stumped on how to avoid paying all that extra interest that will come with putting down little, or no, money. How do I use the cash I have on hand (quite a bit) to lower the lease costs, without putting it at such risk?
If I could (safely) make the up front payment (or the like) I'm able to, I could save over $2,500 on a 3 year lease. There's also the issue of optics with my better half... She'll go nuts if she sees a large lease payment every month, but would be quite happy with the smaller one that would result with a decent up front payment.
Will making a quite large security deposit make a similar difference, as was suggested? Is there a risk that the leasing company will try to use up the large security deposit at lease end?
Many Thanks in Advance....
Mike
Figure you get .00010 to .00015 off for every EXTRA security deposit you place.
Sooo... say it is a $25K cap cost and like a $13K residual.
$136.80 saved on this deal over 36 months for every, say, $450 security deposit (I am assuming a MF of .00250 so we have a $428 payment) at a .00010 discount. At a .00015 discount ya save $205.20 for every extra $450 security deposit.
In other words.. say a $4,500 investment will "return" you $1,368.00 or $2,052.00 over 3 years, effectively tax-free.
Even at .00010, that's 10% or so a year... And at .00015 that's closing on a 15% annual return.
Not a bad deal, eh?
Jeez..do I sound like an accountant or what?
Bill
A question, though - what happens to security deposits if I total the car or it gets stolen? Do I still get my security deposit back??? If not, I'm back to where I was in the first place, with no safe place to put my money down :-(
Again, many thanks for your info. & calculations - if you ever get tired of cars, perhaps you have a second calling ;-)
Cheers,
Mike
On a VW.. they do MSDs in America... Dunno about the Great White Northern Wilderness tho
If it gets totalled, you do get the sec deposits back...
Bill
I'm looking at an actual lease file right now where the guy put $5,000 down. Cap cost (selling price) was $34,600. Monthly payments were $475.23. If it would've been totaled after making one payment the payout to Ford Credit would've been $29,323.51.
With the waiver of depreciation insurance, this person's insurance company would be cutting a cheque for $34,600. $29,323.51 would go to payout the lease, leaving $5,276.49 for the customer.
How has he lost his downpayment?
The more I think about it however, I wonder about this. It seems to me that as long as I pay for the value of the car, the leasing company shouldn't get a windfall (or shortfall) from my insurance. I think I'll call my insurance company.....
Bill aka Brentwoodvolvo - any views on this? Do you agree with landru2?
What happens anyway if a leased car is stolen or wrecked? Does the leasing company simply take the cash from the insurance and GAP insurance and say "thanks - see ya later", do they replace the car, etc?
Curiously yours,
Mike
Without the waiver of depreciation, the insurance will pay the leasing company the determined market value of the car with the leasing company absorbing however much it takes to add up to the payout (Gap insurance). So, the transaction takes place only between the insurance and leasing companies. This is when a downpayment could be lost.
With the waiver of depreciation insurance, the insurance company will give the customer a check, usually made payable to the customer and the leasing company. Then, the leasing company will refund you any difference between the payout and the insurance check. No windfall goes to the leasing company, just the lease payout.
A Canadian thing
I have not heard of that kind of insurance, but it sounds like a deal to me. I wouldnt buy or lease a new car without it if I could get it..
Seriously.. on that insurance I have NO idea, but if its' the case... go for it.
Bill
Landru2 - I too handn't seen much talk of multiple security deposits, but certain dealers refer to it on their web sites, newspaper ads, etc. I saw one such ad from BMW a few days ago.
Thanks again,
Mike
I just came back from a local Audi dealer that offered me the following on an Audi TT lease for a 225 hp model with the audio package option, 12000 mi a year - no money down (just pay the inceptions which amount to $1500 out of pocket)
39 month lease at $509.00 plus tax. They based it on a 55% residual and a money factor of .002150 (Audi financial). I feel I can do better - any suggestions on how to get a better deal?
Thanks for the help!
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Touche
Acura RL lease that is currently offered? One Houston dealer is currently quoting a capitalized cost of $38,300-will this go lower by the end of the Summer?
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Again, I will fill you in on the particulars of this car's current lease program as soon as you give me the additional information that I need. Talk to you soon.
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Regarding my post Nr. 3888 - do you have any thoughts on it? I spoke again with Audi and they reduced the cap cost to the mid $35,000 (in their words)and with inception fees of $1500 and out of pocket of $1000.00 the lease comes to $469.49 per month + tax. Is it possible to actually pay the tax up front and not assume it in thelease? Is this worthwhile? I live in FL.
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I am new to the list (this is my first post). What is the residual and money factor for the Acura MDX and Lincoln's Navigator? My wife and I love each vehicle and are trying to learn if it would advantagous to us to lease one of these new models. Thanks for your advice.