Lease Questions - Ask Here

mlattin · June 2002

I'm looking into a 48 month lease on an 02 xe automatic Xterra woth power, utility and sport packages (seattle area). The deal was panning out really well at first, they came down on the purchase price (though slightly), and are willing to pay off my ENTIRE upside down loan. (kbb trade value 3500, payoff amnt 6100). Then, they tack on a $1200 extended warranty. The sales guy said it would look better (don't know who to) since they were "taking a loss" on the deal. Then they figure my payments with a .0038 MF, when was thinking it would be closer to .0024 since my FICO score is 700+. Can you give me any advice? Should I stick with them because they'll pay off my entire trade in and try to get them to lower the MF? And what's the deal with the extended warranty?

Thanks,
Megan

halehouse · June 2002

This tire question is not about the amount of tread on the tires at turn in, but about the spare and whether it should match. I have 4 good Pirelli tires on my RAV4, but the spare tire is still the original from '97 (won't lease again, let alone 5 yr). Anyhow, beyond what seems like normal end of lease paranoia, the car is super clean, has a ding or two, and is under or will be just at the mileage. Should I buy one more tire and have it mounted just to have a matching set?

multiplechoice · June 2002

Don't be fooled by what the dealer says, they NEVER sell a vehicle at a loss (its a business, if they lose money, they go out of business) If you trade in your vehicle most any dealer will "pay-off" your residual. In actuality, the shortfall is rolled into your new lease-either as an increased capitalized cost or an increase in the money factor or both. It is usually wiser to stick it out till the end of your current lease and let the current leasor take the hit on the "upside-down" balance. That is unless there is a really good reason to want to get out of the lease before the end of the term.
By the way, in a few months (usually in Sept.)the '03 models will be coming out and there will typically be factory incentives to move out the remaining '02 models. I don't think that the Xterra is currently as hot a seller as when it first made its debut, did you check the TMV (true market value) on the Edmunds boards?
As an example, I just turned in my '99 Suburban after a 48mo. lease. The residual value was $23K, the current "blue book" on my truck was $16.5K, the leasing company had to eat the $6.5K loss. If I had traded in my Suburban, someone would have to make up for the $6.5K negative equity.

mney6 · June 2002

Nissan will do 110 % of MSRP plus T,T,L as a Cap Cost.
On a 48 month lease the money factor is .00244 and residual is 48 % on a 4x4 XE
Xterra also have 500.00 customer cash.
MSRP 25682
Invoice 24082
If you want a warranty all you need is a wrap of 48/60000 which should cost 795.00.
Contrary to some I have lost money on a car just to get it out of our inventory.

KCRam · June 2002

Hi halehouse

Don't sweat the spare tire. You are not required to return a "matching set" - meaning, a spare that matches the 4 on the ground. Think of it this way, cars with those mini-donuts certainly don't match do they?

As long as the spare is still serviceable (no damage, dry rot, or cracking), then you're fine.

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halehouse · June 2002

Actually, I went back and looked through the lease agreement and their "Excess wear and Tear Charge...includes, but is not limited to...Tires with less than 3/32 inch of tread remaining, or any tire not part of a matching set of 5 tires..." Maybe they still won't be picky on that?

Thanks

KCRam · June 2002

halehouse, I think I can make a safe assumption here and say a "matching set of 5" is intended to prevent things like turning in a vehicle that the lessee has installed 4 oversize off-road tires with the original spare, or 4 overwidth 20"-rim perfomance tires with a donut. If all 5 of your RAV's tires are the same size, regardless of the brand, you should be fine.

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CarMan@Edmunds · July 2002

Hi everyone. I just wanted to post a general note to let you all know that the lease programs for just about every single manufacturer that sells light vehicles in the United States have either just expired or are scheduled to expire in the next couple of days. As a result, I can not answer any specific questions about what a model's program should be like until the end of this week. Please feel free to check back with me then for answers to any specific questions. In the meantime, I will continue to respond to any non-specific questions.

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CarMan@Edmunds · July 2002

Jb_thecser, the reason why I provided you with two different lease money factors is because in one post you asked me for "Do you have residuals and MF's for VW Jetta Wagons?" and then you began to ask questions about the Passat. These two models have different lease programs. The 2003 Passat would have higher residual values, but also will have much less lease money factor support than the 2002 Passat would have at this point. Please feel free to check back with me at the end of this week and I would be more than happy to give you an idea of what VW's July lease program is like.

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CarMan@Edmunds · July 2002

Megan, remember that you can always shop around at a few different dealerships is you want to. It is usually a good idea for consumers to comparison shop at a few dealerships in their area to get an idea of what the market is like for the model that they are interested in prior to finalizing any deal. I personally doubt that this dealership will be "taking a loss" on this deal. Even though they are going to pay off your negative equity on your current vehicle, they will be making money on the extended warranty that they are selling you and they also look as though they will make a decent amount of money by marking up the lease money factor that they are going to charge you. I think that it would be in your best interest to comparison shop at another Nissan dealership or two to see if you can beat this deal, if not then it may be the best that you can get considering how upside down you are on your current vehicle.

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rxke · July 2002

Hi Carman

Could you please tell me the money factor and residuals for the Miata with 12,000 and 15,000 miles for 36 months. I live in ny. Also are their any incentives?

Thanks for your help. You have always been great.

CarMan@Edmunds · July 2002

Hi rxke. Mazda's lease program just expired and I have not seen their new July program yet. Please feel free to check back with me towards the end of the week and I may have had an opportunity to take a look at their program by them. From what I hear, Mazda is still going to be pushing a 24 month lease of the Miata. In June, and I suspect July as well, they were providing just over $1,700 lease cash that can only be used on 24 month leases of the Miata. Anyways, check back with me late this week and I may have the exact details for you. Talk to you then.

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rxke · July 2002

Hi

The two year lease might be interesting if the numbers are good. I would consider a 2 year instead of 36 months. Also, could you provide me with the numbers for an Infinity G35: 12,000 and 15,000 miles per year for 36 or 39 months. I live in NY(Westchester)

Thanks again you have always been very helpful to me and my friends. Having your information is really empowering when you have to negotiate with the dealers.

RXKE

CarMan@Edmunds · July 2002

You're welcome, RXKE. I am glad that you enjoy this discussion so much. I still have not seen Mazda's or Infiniti's July lease programs. I will probably have had an opportunity to take a look at them by late this week or early next week.

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bfriedman21 · July 2002

could you please forward the bmw financial services' july money factor and residual percentage for an 02 325xi at 10K miles per year?

thanks in advance

marc36 · July 2002

Most of my friends lease cars for three years and then turn it in and do it again. Because of my mileage needs (low at 4k/yr) and preferences, I like to buy cars that fit the profile of those coming off lease. Can I have a friend say they'll be buying theirs at lease-end but then I assume the purchase? I'd think financially it would be best not to have them turn it in, and then me buy it (probably with dealer mark-up). Would the lease buy-out price typically be better than market prices for an equivalent used car (with a BIG added benefit of me knowing who owned/drove it previously). Would a dealer allow a direct transfer to my name (to avoid paying sales tax on TWO transfers). Any advice/suggestions would be appreciated.

iamaddman · July 2002

High carman,

I asked a few weeks ago about money factors and residuals on the envoy. I am wondering if anything has changed for July. I see GM started $2500 rebates on the Envoy. Could you please check on July numbers.

3yr & 4yr lease, 12K/yr, money factor and residuals.

Thanks in advance

clpurnell · July 2002

looking for money factor and residuals for the following suv's 3yr 15k per in Houston, TX

Envoy XL
Trailblazer EXT
Toyota Seqouia
Honda Pilot

CarMan@Edmunds · July 2002

Hi bfriedman21. I have seen BMW's July lease program. If you were to lease a 2002 BMW 325xi through BMW Financial Services this month for 3 years with 10,000 miles per, their base lease money factor and residual value should be .00260 and 61%, respectively.

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wilkar67 · July 2002

I'm in the market to lease a 2002 Dodge Durango...the local dealer is telling me Chrysler Financial has a $700 bank acquisition fee. Sounds excessive, specifically since the 1999 300M Im driving that's coming off lease only had $350 bank fee.

Has anyone heard of this? or has insight to this? Thanks!

CarMan@Edmunds · July 2002

Marc36, whether or not a vehicle's lease-end purchase price is less than its current market value will depend upon the condition that it is in, how many miles it has on it, and most importantly what its residual value was when the lease agreement was originally signed. Many leased vehicles will indeed be good deals compared to vehicles on the open market, but some will not. One needs to realistically assess what a similar vehicle would sell for right now in order to decide if they should purchase it at its purchase option price. You are right when you said that knowing a vehicle's history makes purchasing it much more attractive. You are much better off buying a friend's off-lease vehicle if you know that they have treated it well and have not been in any accidents than you are purchasing a random vehicle with an unknown history. There is a great article on this particular subject right here at Edmunds.com: Buying Your Leased Car. You may be able to find out the answers to many of your questions by reading it. Please let us know if you have any questions that it does not answer.

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CarMan@Edmunds · July 2002

Hi again iamaddman. Even though General Motors revised their special financing and consumer cash incentives, they did not change their lease program. Their lease programs for Buick, Chevrolet, Cadillac, GMC, Oldsmobile, and Pontiac all began on May 1st, and are not scheduled to end until July 31st. The only change that they made was the addition of some 2003 models.

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hpowders · July 2002

Hello Car Man. I intend to lease a 2002 BMW 325 for 36 months, 36000 miles total. Would the July stats. be the same as you listed above for the 325xi? Thank you.
Howard

bimmer12 · July 2002

Hey Car_man- Looking to Lease an Acura TL Type-S w/o Navigation System- I would like it for 48 months with $2k down and 12k miles a year. Any idea of what good stats(monthly payments) would be for this car? Are there any lease deals out there on similarly priced vehicles that are too good to pass up (Audi A4, Infiniti G35, Lexus Is300, BMW 325i)?

Thanks in advance

phollie · July 2002

Car Man.
I'm curious about ways to get out of a Saab lease. I've got a 2001 Base 9-3 with approx. 25.5K payoff. Its got 20k miles (I'm already over) and I'm just concerned that with the commute that I now have, I'll blow away the miles and be left holding a big bag at the end. At least with another car, I'd be able to sell it for a reasonable amount. Trade in on the Saab is pretty weak right now (granted, I tried to trade it in on a 16k car). Do you have any thoughts? Or should I just take my medicine?

My payments are 450/month (with wa state tax credit). I've got approx. 33 more payments to go.
Thanks.

NurseMBH · July 2002

Happy 4th of July to all!
My 3 year lease on an Olds Alero is due to end in December. I am now getting numerous mailers from GM telling me about their "Pull-Ahead Lease Program" in which I can turn in my lease vehicle now and they will waive/forgive the rest of the payments. Apparently this holds true for anyone with a GMAC Lease that is due to expire anytime from now until February of next year. They state you must purchase or lease a new 2002 or 2003 when you turn it in, and that the excess wear and tear still applies, but otherwise there doesn't appear to be other restrictions? Obviously, they are trying to get the consumer to stick with GM for another lease term, but it seems like they would be losing money on all these "Forgiven" months of payments? Also, is this going to mean they will not negotiate at all when working up the new lease? I am told I can still use the Olds Loyalty certificate I received. I just think they money still owed on the old lease is going to end up in the new lease somehow?? Call me a skeptic!!
Anyone ever taken advantage of this program and how did it work?

CarMan@Edmunds · July 2002

Hi Howard. If you were to lease a 2002 BMW 325i through BMW Financial Services during the month of July for 3 years with 12,000 miles per, their base lease money factor and residual value should be identical to the numbers that I posted for the 325xi.

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CarMan@Edmunds · July 2002

Hi bimmer12. Out of all of the vehicles that you mentioned, the Audi A4 3.0L probably has the best lease program available on it at this time. I have not seen Acura's July lease program yet, but I should have had an opportunity to take a look at it by the middle of next week. Please feel free to check back with me then and I would be more than happy to give you an idea of what this vehicle's lease program is like. Talk to you then.

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CarMan@Edmunds · July 2002

Unfortunately, phollie. The fact that Saabs in general do not have very good resale values will probably prevent you from getting out of your current lease early without having to pay quite a bit of money. You certainly have the option to purchase your Saab from the bank that you are leasing it through and trade it in or sell it on your own. However, there is a very good chance that your purchase option price at this point is higher than what this car is actually worth. If you go significantly over your mileage allowance for this lease, you always can purchase your car at lease end and continue driving it. This will prevent you from having to pay a large lease-end penalty.

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rlowrie · July 2002

Car_man: any info on the latest lease programs for jaguar- esp the xk8. Looking at 36 months and 12k or 15k miles. Thanks

tlauro · July 2002

Car Man.....please help.

I'm in need of the rates or money factor and residuals for 2002's.

Mazda Tribute and Honda CRV's.

3 years, 12,000 miles per year please.

Thanks in Advance!

hpowders · July 2002

Hello Car Man. If I lease a BMW in Florida for 3 years and move to New York before the lease is over do I have to drive the car back to the original dealer in Florida when the lease is over? Thank you.
Howard

dayers · July 2002

Hi Car_man,

Looking for lease info on 2002 Jetta 1.8T model. 36 months, 36,000 miles. I live in Alabama.

Thanks

delrick · July 2002

GM has had early termination programs before.

I think one of the benefits to the company may be that in many leases they underwrite a very high residual.

By allowing these vehicles to come in earlier, they can resell them for more than waiting until lease end, and recoup a greater portion of the residual overallowance.

They also have a captive GM buyer given the conditions of the termination.

KCRam · July 2002

Hi Howard

If/when you move, you will need to contact your leasing company with the change of address - it's their vehicle after all, and they are responsible for the registration paperwork in your new state. At that time, you can find out from them who their authorized acceptance dealers near your new home are. Make sure you get copies in writing of whatever you may discuss over the phone.

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CarMan@Edmunds · July 2002

Hi Rlowrie. I have not had an opportunity to take a look at Jaguar's July lease program yet. I should have had an opportunity to check it out by mid to late this week. Please feel free to check back with me then for an answer to your question. Talk to you soon.

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CarMan@Edmunds · July 2002

Hello tlauro. If you were to lease a 2002 Honda CR-V EX 4WD through American Honda Finance Corp. for 3 years with 12,000 miles per this month, their base lease money factor and residual value should be .00240 and 61%, respectively. The money factors for the 2002 CR-V LX 4WD and 2WD models would be exactly the same, but the residual values for this term and mileage allowance should be 59% and 57%, respectively. As far as the Tribute goes, I have not seen its lease program for July yet. I should have had an opportunity to check it out by mid to late this week. Please feel free to check back with me then for an idea of what its July lease program is like. Talk to you soon.

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CarMan@Edmunds · July 2002

Hi hpowders. Fortunately, you should be able to return your leased BMW to any BMW dealership in the continental United States. So, you just need to contact your local BMW dealer and make arrangements to drop your car off with them. Make sure to talk with a representative of the bank that you are leasing your car through first (probably BMW Financial Services) to find out their exact lease return procedures.

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CarMan@Edmunds · July 2002

Hey dayers. I have not had an opportunity to take a look at Volkswagen's July lease program yet, but I suspect that I will be able to within then next day or two. Please check back with me for an answer to your question. Thanks.

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terry07 · July 2002

Hi Car Man, I leased a Pilot EX cloth a week and a half ago and here are the numbers I got (AHFC). Based on cap cost of MSRP of $29730 plus $550 acq. fee. money factor-.00245. residual-48 months@15,000 miles/year-57%. $537 out of pocket. $393 a month plus tax. I'm also getting a $100 check back from a internet coupon. I noticed your CRV numbers to another poster and saw the money factor of .00240. Is this applicable to all Honda vehicles? If so, it looks like only a couple of dollars per month difference.

butchbr73 · July 2002

Hi Car_man,
Can you please give me the July programs for the above 2 models. 12k/15k, 36/39 months. Residual and money factor. What are the cash back and/or dealer incentives to push the '02 models off the lot? I know the $1,000 ends today, I think. Is there anything greater coming? These aren't moving quick, the '03's are identical, and new body style out in '04.
thanks,
Brent

rxke · July 2002

Hi Carman

You have been very helpful to me and my friends in negotiations with dealers based on your numbers. Could you please provide me with the money factors and residuals for the A4 1.8 quattro and the G35 for 15,000 miles per year and either 36 or 39 months. I live in NY.

Thanks again for your help.

parnola · July 2002

Carman - I know you just posted numbers for the CRV, but I need EX 5-speed with 3 yr / 15k miles per year. Also do you have the money factor? Would you consider it prudent to lease this vehicle now or wait until the 2003's hit the lot (assumming they'd have a higher residual) since discounting seems virtually non-existant on the 2002's anyhow.

Thanks!

CarMan@Edmunds · July 2002

Terry07, the lease money factor that I posted for the 2002 CR-V is American Honda Finance Corp.'s current base standard money factor. Any unsupported vehicle leased through AHFC during the month of July for that term would have an identical base factor. However, you mentioned in your post that you leased your Pilot a week and a half ago. Most likely, you did so using June's lease program which had slightly higher base standard lease money factors for certain terms. Overall, the lease numbers that you were provided for this truck look good. Enjoy your new vehicle

!

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CarMan@Edmunds · July 2002

Hi Brent. I believe that the lease programs for both Nissan and Infiniti were scheduled to run through July 8th. Their new program is scheduled to be introduced today, so as you can imagine I have not had an opportunity to take a look at it yet. If you would like, please feel free to check back with me in a couple of days and I would be more than happy to give you an idea of what their new program is like. Talk to you soon.

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CarMan@Edmunds · July 2002

Hey rxke. I believe that Audi and Intiniti's lease programs were both scheduled to run through July 8th. I have not had an opportunity to take a look at their new programs yet, but I should be able to help you out in a couple of days. Please feel free to check back with me then.

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CarMan@Edmunds · July 2002

Parnola, given the fact that discounts are not readily available on 2002 CR-Vs and the fact that Honda is not currently providing any sort of support on it, you may indeed be better off waiting to lease a 2003 version of this truck. The main reason why waiting may be better is that the '03's will have higher residual values, resulting in lower lease payments if all other factors were equal. As far as the 2002 CR-V goes, if you were to lease an EX through AHFC for 3 years with 15,000 miles per, their base lease money factor and residual value should currently be .00240 and 59%.

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jefepro2 · July 2002

Afternoon Carman-
When you have the opportunity to look at Nissan's new finance rates that started today, could you give me the numbers for a Pathfinder LE 4x4 with 15k and 36-39 months? I would also like to know if they continued their $1000 cash back. I live in St. Louis.
Again thanks for the service!
Jeff

mellis · July 2002

Carman:

Could you please give me the numbers for a Maxima GXE and a Camry XLE 4 cyl auto. 2 and 3 years, 12,000 miles per year. Thanks!

Mark

michaellno · July 2002

Made the mistake of stopping by my local VW dealer yesterday (ostensibly to check out the '03 Passats). Found an '02 equipped just the way I want (1.8T, 5-speed, leather).

Anyhoo, in talking with the salesman (and his "team leader"), I found that they "might" be willing to let the car go for invoice ($23500, MSRP $25800).

I called them back later to get the money factor and residual percentages ... they gave me a MF of .00325 (4 years, 12K/year) and a residual percentage of 50%.

Are these numbers in line with what you've seen? I suspect that with the '03 Passats on the dealers lots, the residuals for the '02 model year would go down, but the MF seems a bit high (translates to 7.8%).

My calculations come up with a 0 down, pre-tax lease payment of $346.

Can you confirm the MF and residual percentages?

Thanks in advance for all your help.

Lease Questions - Ask Here

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