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You may have been asked this before - have you thought about making the money factors and residuals available through a database on the website? I am in the process of looking for a new car and don't want to waste your time asking about a new model every time my fiance likes a new model
My purchase option is $21,900. Kelleys Blue Book gives a retail price of about $25K.
I have no intention of buying the Jeep or flipping it as I just received a 2001 Odyssey and don't want the hassle/risk. But given its great condition and low mileage do I have some room to negotiate with the numerous local Jeep/Dodge/Chrysler dealers on the their having the "privilege" of their getting me to turn in my Jeep to them?
My assumptions are that a low mileage, cherry condition vehicle would move off their lot quickly for a top price; the low cost to a dealer of prepping the vehicle for resale (detailing, oil/fluids/filters, computer diagnostics, etc.); and the ability of the Jeep dealer to buy it from Gold Key/Chrysler Finance for less than $21,900.
Everythings negotiable right?
Or am I smoking crack to think that a dealer might pay me to take my Jeep?
I recently was made a proposal by my BMW dealer who offered to discount the rate on my lease by .0001 for each additional security deposit I put down, for a max of 9 extra deposits or .0009 reduction. The pitch is I get the money back, but sans interest.
It seems logical to me, and I am considering it. Security deposits are refundable, should the car be totalled or stolen, that money is protected. Additionally, I worked out on a spread sheet the "return" on that money based on the monthly payment savings. It figured to be a whopping 36% for the 3 years! There is no financial vehicle that I know of that will provide such a beefy return with 0 risk.
Am I missing something? Thanks.
Car_Man
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am i missing something?
20% percent with no risk(?) and no fed/state/local income tax stomps all over a 3.5% after-tax return on the bank deposit.
ace
Hello. I'm being told by the dealer that the residual for a 2001 Jetta, Wolfsburg edition is 60% of MSRP on a 39 month lease with a money factor of .005. This sounds inflated to me. Am I mistaken? Also, I was told that I had excellent credit and my finance rate would be around 6%. Doesn't that equate to a money factor of .0025 (.06/24) and not .005? I feel as though I'm negotiating for a fair price on the car and the dealer is trying to keep my monthly payments low by hiding their profit in other places.
Please let me know what you think.
Thanks,
ja
* 6 add'l security deposits @ $600 = $3,600 "invested"
* Lease rate reduces by .0060, causing payment to be reduced from $635/mo. to $600/mo.
* Over 36 mo. lease term, reduction in payments is $1,260 = "return" on $3,600 "invested"
* rate of return approx 36% (?), with no tax implications (?)
I hope I am STILL not missing anything ... I am suspect because it was suggested by the dealer. Thanks!
Back again to ask for MF and res. values on Olds Silhouette Premiere vans. I am watching the market, and have seen Olds offering what appears to be a pretty well subsidized lease. With no money down, and based on MSRP, they are offering a 36 mos. lease at $493 a month. With some negotiation and a little money down, the payments begin to enter the realm of possibility. Your thoughts?
Thanks,
SST
could be heavily discounted if paying cash was an option?
Pappas... Can you please provide the actual amount?
A 2+% rate reduction will result in much more than $35 savings per month. I am guessing in the $65 to $75 range. Without all of the facts and figures, this is just guesswork, though.
ace
Do most captive finance co.'s charge origination fees, or are they hit and miss? Should I pay one or not when I lease either a Passat or A4 shortly (probably through Audi Financial or VW financial).
Car_Man
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Thanks for the quick response to my inquiry (#407). So, when the dealer is telling me the MF is .005 because the car is a Wolfsburg, is that garbage? Am I understanding that the money factor has nothing to do with the type of car and only with the finance rate?
Dealer also told me the residual was fixed at 60% and "by LAW" couldn't be moved, yet other dealers have told me that residual should be between 49 and 52%. Is something rotten here?
Here is the way the deal is being presented to me:
MSRP=21,490
Down payment and fees=2500
Monthly payments=277.54 + tax (299.94)
Term=39 months
Residual=12890
I do not know what the final money factor is here (but, as I said, the dealer originally quoted .005) and believe that while I think the monthly payments are lower than originally quoted($431/month... what a joke!) because I am negotiating a better bottom line price, the paymnts are actually lower because the dealer is lowering the money factor from the originally inflated .005 to a more realistic figure and/ or he is inflating the residual. Is that possible, ethical, legal???
At this point I THINK I have the negotiated price (would this be the cap cost?) down to about $20,690, BUT I just feel something not quite right is going on here.
Any insight you could lend would be greatly appreciated.
Thanks again.
ja
Earlier you told me in this forum that the lease money factor on the 2001 A6 2.7T was .0026 for 36 months. Does you know what it is for 48 months? And does this rate also exire at the end of February?
Thanks
Lesley
Car_Man
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Using the numbers that you provided in your last post if you were to lease a 2001 VW Jetta Wolfsburg with an MSRP of $21,490 and a selling price of $20,690 for 39 months with 12,000 miles per year your $2,500 down pre-tax monthly lease payment should be right around $240 per month. It still looks to me as though you have some room to negotiate. Perhaps you should get price quotes on similar cars from a couple of other VW dealerships for comparison sake.
Car_Man
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With regard to my earlier question about leasing an Olds, what residuals are you seeing for a 36 month/12k a year lease? Looking at the $493/36 month lease, if I set the interest to 5.15%, the residual ends up at around 60%. Does that sound right to you?
Assuming that this is correct, and that Olds doesn't have some weird rule that drives the interest up or the residual down if your cap cost is below MSRP, I should be able to get a paymeny I like.
Thanks,
SST
Thanks.
Can you give me an idea on what a 24mon, 10K/yr lease would be on a '01 Miata.
MSRP= 21,660 Negotiated price = 19,744. Should I consider a one time payment option? My wife and I just want a toy before we decide to have kids in 2 years!
Do you think it would be cheaper to by used? Lease used? Any advice you give would be greatly appreciated!
Thanks!!!
More information on the lease Olds has posted on their site.
In the fine print for the lease, only the MSRP and the total payment amounts (after $0 down/$1000 down/$1500 down) are listed. When I read this, I assumed (never assume, never assume) that the cap. cost for the lease was also the MSRP, hence some of my comments to you.
In trying to use this information as a starting point for negotiating a lower payment, two dealers have come back stating that the cap. cost for the deal is actually lower, at $30600.88. I called GMAC to check this claim out, and was told that, no, the "gross cap. cost" for the lease offer was, in fact, MSRP.
Something's not right, but I'm not sure how to proceed. Any light you can shine here would be most appreciated.
SST
Thanks for your quick response on the 530i MF. .0035 doesn't seem to be a supported rate as compared to the MF they are offering on the 525 which is about .0027 or .0028. This is 8.4% and I thought it would have dropped with the prime rate since December when I started shopping. Especially since they are offering 5.9% financing on both.
Pappas, the rates your dealer is quoting sound high by about .00015, but I guess rates could vary by state.
I don't want to fall victum to this practice nor any of your readers. Is there a place on the web to get up to date rates from all auto companies so some of us won't be wasting your time? Thank you in advance.
I am coming to the end of my 3 year lease with Mazda and I'm at a crossroads about what to do with either buying my 1998 Mazda B4000 Ex Cab or leasing a 2001 edition. Here's my dilemma: The '98 currently has 24,000 miles on it, hail damage to the tune of $2,300, the front bumper is damaged to the tune of $400. With my deductible too high to afford fixing everything I have no choice, but to leave it in its present condition on the outside. The truck has run beautifully mechanically speaking for me. Oil Changes and Checks done every 4 months (averaged through the lease period) so I don't have any worries buying it mechanically speaking. I am confused and need advice from people who have gone through end of lease negotiations dealing with damage to vehicles and how that affects the "Purchase Option" at End of Lease. Do I add on the damage amounts to the Purchase Option and that is what I have to Finance to buy the truck outright or do I work with the Purchase Option price set at inception regarding financing this vehicle for buy out???
Now, if I lease again do all the damage costs get tacked on to the next lease and be looking at serious trouble there??
If anyone has advice or can enlighten me on their experiences with End of Lease Options, preferably through Mazda or if your situation resembled mine currently I'd be grateful to hear about it.
Thanks!
Chad
Chad
This might be your only option considering the damage issue. The advantage is you have a low mileage vehicle.
The best thing to do is call the lease company and ask them about end of lease options. No need to mention the damage, just check out what it would be like to purchase the vehicle and what the residual would be. Also ask if there is any special financing rates that you could utilize. When our lease is up we can finance the vehicle at the residual amount for 1.9% up to 60 months! Very enticing indeed.
If the damage to the vehicle is what you say..approx $2700..and, let's hope that's by a reputable body shop...What is going to happen is, that Mazda, or whoever the lease company is will bill you at the close of the lease.
Just keep in mind, this vehicle ( in their minds ) is not a retail piece for a dealer..or at the auction . .. in other words, they really dont want it... so your options are ...1) Buy the vehicle at -close end- of the lease ( they wont care what it looks like )..or. 2) lease a new one, and wait for the leasing company to run the the vehicle at auction ...and wait for a potential bill of $3,000 or $4,000+ it's a gamble .
Any discussions about what you may do, should be done with the Leasing company...not the dealer, a lot of times you will get much further that way.
I hope this helps
Terry.
Any other advice or thoughts from anyone?
Thanks for your help guys, I appreciate it alot!
Chad
You don't ask......You don't get.
They do not care what the vehicle is like as long as they get their money.
Hope this is clear. Best thing to do is call Mazda finance and ask them how to purchase the vehicle at the end of the lease. Watch out for the "disposition fee" it should be waived if you purchase the truck.
Thanks guys for helping out, you've been great!
Chad
What happens when you lease a car and the leasing company goes bankrupt? One happy Daewoo owner says that you get to keep the car and don't have to make any more payments. Others then tried to explain that the loan will merely be sold to another financial organization. He insists that because there will be no maintenance service or warranty facilities that the loan can't be transfered. The latest twist says that before the lease can be sold to another lender, the person who is leasing the car in question must be offered the opportunity to buy the vehicle.
Could anyone shed any light on this? I'd appreciate it. Since this has been such a long and unclear post, I'll repeat the essential question: What happens when you lease a car and the leasing company (Daewoo) goes bankrupt?
Everyone should be careful when turning in a lease as part of a trade. YOU are responsible to the finance company, not the dealer, that the vehicle is in excellent condition and wear and tear is normal. In other words, a dealer could give you the purchase price of the truck in a trade, thus "paying off the lease". When they turn it in to Mazda Credit, you could end up getting a bill after the fact for wear and tear or damages. The dealer is not going to pay, because your contract states you are liable for those charges.
Deal strictly with the finance company before you go to the dealer.
*This is true even when "in-house" financing is used,i.e. Mazda dealer, Mazda Credit*
Curt
I don't know how the warranty issue would play out, other than it represents a kind of "obligation". It may be that a judge would order Daewoo to pay a cash settlement to owners (as in, "here's $500. Now you don't have a warranty"). Bankrupcy is about a company being unable to meet its obligations, so its possible if Daewoo goes bankrupt, you completely lose your warranty and won't get a penny.
Yes, there is a great potential of being able to purchase this vehicle for - less - than what it states on the contract...with or without damage to the vehicle. It happens everyday Fomoco, Honda, Chrysler, GMAC, Toyota, Volvo, etc.
Call Mazda Leasing on monday...and get your exact pay-off / purchase figure .....and then find out who the Regional / District Mgr is....and call him/her and say...."Hey Bubba, I kind of like this truck, and I think I would like to buy it....But.... the purchase figure is a little high (let's say $12,500 )...and I would like you to check..and find out what Mazda Leasing can do for me, being the good customer I am. Because Bubba, I know that you or the Dealer can go to the auction and buy one just like mine for under $10,000, and I'm sure Mazda doesn't need another tax right off....I have helped you buy leasing it, So please help me purchase it".
If worse comes to worse, after a couple of days of negotiations..if... they don't want to work with you - That's when you kinda of mention the - Oh, bye the way...did I mention the $2700 of damage to the truck because of the hail storm..?
All the lease co is trying to do is...cut their losses..and not spend all the BS time, to inventory the vehicle...get it ready for auction, which as a rule, means it will stand 2 or 3 weeks
and as it sits...the market moves on. I dont recommend getting the dealer involved at all...and you certainly don't need the vehicle appraised until the very last day of turn in....If...it even comes to that. Remember keep it-- k. i. s. s. ...
I hope this clarifys some things
Terry.
would you please provide me with the lease money factor and residual on an MB E430 36 and 48 months with 12k miles.
The numbers seem to be about right, and they are just pulling that $14,500 to $15,500 figure at the auctions.
The best thing you can do is...work with the Leasing company - hopefully its Chrysler...they do work pretty well with the customer...and they realize that a lot of Grand Cherokees are going to the block.....so if you get a chance read my post #445...but just make sure you get a "descision maker" there....and see what they will do for you.
I hope this helps,
Terry.
About 90 days before maturity date you'll receive paperwork outlining the procedures for turning in your vehicle. Included will be information about a vehicle inspection that will be mandatory. Infiniti sent me detailed info on what is considered wear and tear and what is damage that I would be liable for. They also told me what exact steps need to be taken to turn in my vehicle.
Many finance companies hire an outside company to administer the inspection. The company used by Infiniti Financial Services came to my work after they called and made an appointment for inspection. My vehicle had some minor body damage that was noted and a charge was indicated. The inspector determined what the charge was going to be (don't ask me how). He gave me copies of the paperwork which I was to relinquish when the vehicle was turned in.
I was not required to turn in my vehicle on an exact date (although they asked for a specific date). I also was not required to commit to turning in the vehicle to a specific dealer (although I told them who I'd likely go to). I could have extended my lease for a few months if I wanted to. This may be benefical if you are planning to have work done on the vehicle to mitigate any damage-related charges.
The day I turned in my Infiniti was the day I bought my new car. The dealer I turned in my Infiniti to was closest to the new car dealer, not my usual servicing dealer. I called the Infiniti dealer the day before and made arrangements to meet the person who handles terminations. I took my vehicle to him, he filled out some paperwork, I got copies and was on my way - took 10 minutes.
A couple weeks later I got a final bill in the mail requesting payment for the damages and the disposition fee. I sent a check, they sent a "thank you" letter and that was that.
BTW, I did try to negotiate a lower buyout price since the residual was highly inflated. I spoke to a supervisor at IFS and they told me no negotiations. But I do know that some finance companies will negotiate the buyout.
Hope all this helps. Best o' luck.
The point illustrated earlier with Chad's situation is this: It may be more affordable to buy the vehicle outright than pay damages and fees associated with turning the lease vehicle in.
Also, most lease companies do not negotiate on the lease end value. A dealer may give some incentive towards another vehicle (loyalty discount) or may give a higher trade in value than what is owed on the car.
But yes, Most lease companies will negotiate the final price ( it kinda leaves the dealer out..and of course, they don't like that )
depending on the market , time of the year, vehicle, etc. the lease co. will drop in price from $100 to sometimes $2500 depending on those variables. Now Infiniti....they are on a planet all by themselves -- they had a horrible experience with the leasing market from 1996 to 1999...their residuals were way off, resale value
was nil, so now Infiniti has changed their marketing by 180 degrees....and I'm thinking they won't let that happen again.-Bretfraz- brought up a very good point on the 30/60/90 day inspections..some of the lease companies, are going to this outside inspection services..remember - most are in a big hurry, have limited experience..and can miss a vehicles value by a bunch - so there is some need of concern in that area, also the dealer themselves can have the same problem...Bretfraz had a great experience ( as it should be ) but there is a minority that have seen a lease co. bill for $1500 on $100 of wear and tear...so just be wary, it's just good business.
I hope this helps.
Terry.
Let's say Mazda Credit says no deals, you buy the truck for $11,300, then I have no worries about being billed for the damage then correct??? Even if the dealer inspects it and all that and I inform them I'm buying the truck, there will be no bills for the damage, right or wrong??
I'm sorry if I sound uneducated on this, but this is my maiden voyage into leasing and I'm 25 and so far I'm not very keen on leases myself at this point and that's why I'll be happy to get outta this situation, buy the truck that I've had no problems with and with some repairs in the future to it and my low mileage travels, will be useful for trade-in in even 3 years if all goes as planned. I just don't wanna get screwed royally making my way through this so all your help and advice is soooooo welcomed everyone.
Thanks again!
Chad