Lease Questions - Ask Here

hpowders · July 2002

Hello Car Man. I was given a worksheet(Tampa area dealer) where the capitalized cost for a 2002 BMW 325 includes the price of $$31195(1000 below MSRP which includes the options I want) but also a document fee of $269 and an assignment fee of $725 bringing the capitalized cost all the way up to $32189. This dealer's MF is 0.0026 with a 60% residual($19317). Other dealers charge an assignment fee of only $525 and a document fee of only $195 but raise the MF all the way up to 0.003. I calculate my monthly payment as $491.47. The residual and MF are in line with what you quoted for me recently. My questions are should I protest the high assignment and document fees or just be glad that I am not being soaked on the MF? and also is it standard procedure for the dealer to jack up the capitalized cost by adding these extra fees?
Thank you very much.
Howard

CarMan@Edmunds · July 2002

Hi Jeff. Nissan finally released their July lease program. Here is the information that you are looking for. If you were to lease a 2002 Nissan Pathfinder LE 4WD through Nissan Motor Acceptance Corp. for 3 years with 15,000 miles per, their base lease money factor and residual value should be .00185 and 51%, respectively. Their 39 month 15,000 miles per year numbers should be .00175 and 50%, respectively. In answer to your second question, yes Nissan did continue their $1,000 cash incentive on this truck. This $1,000 may be combined with both their special financing and lease programs.

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CarMan@Edmunds · July 2002

Hello Mark. If you were to lease a 2002 Nissan Maxima GXE through Nissan Motor Acceptance Corp. for 2 years with 12,000 miles per, their base lease money factor and residual value should be .00212 and 52%, respectively. The 36 month 12k numbers should be .00212 and 46%, respectively.

Interestingly enough, Toyota actually introduced supported lease money factors on the 2002 Camry in certain regions. If you let me know were you plan on leasing this car I can let you know if I am aware of any support in your area. If you were to lease a 2002 Camry XLE through Toyota Financial Services in an unsupported area, their 2 year base lease money factor and 12,000 miles per year residual value should be .00250 and 58%, respectively. The 3 year numbers should be .00250 and 54%.

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CarMan@Edmunds · July 2002

Michaell, window shopping is always a dangerous thing for us car people. You never know when the urge for a new vehicle will strike

. Unfortunately, it appears as though the dealership that you are working with is attempting to make part of their "good deal" back on you by marking up this car's base lease money factor. Right now, Volkswagen Credit's 4 year 12,000 miles per base lease money factor and residual value for a 2002 Passat GLS 1.8T should be .00165 and 50%, respectively. As you can see, there is a big difference between the number that they are trying to charge you and VW Credit's base factor.

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CarMan@Edmunds · July 2002

Hi Howard. The dealership that you are working with is charging you BMW Financial Services' base lease money factor for this car (.00260), but as you noticed they are attempting to make additional profit on your deal by marking up BMW FS' base lease acquisition fee of $525, $200 to $725. Many dealers do indeed try to make the prices that they quote consumers look better by marking up the money factor or acquisition fee. You certainly should try to get they to charge you BMW's base acquisition fee.

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mellis · July 2002

Carman:

Regarding the Camry XLE lease, I am in Maine.

Is the lease program available on the Solara or Camry XE as well? Thanks!

Mark

butchbr73 · July 2002

Hi Car_Man,
If you wouldnt mind going back a few days and helping me out with the I35/Maxima, I would appreciate it.... Looks like the July MF is lower than June. Is the 2003 models much different?

thanks,
Brent

michaellno · July 2002

Thanks for the info. Fortunately, I'm married to a woman who is much less emotional when it comes to cars. Told me to hold off until we're closer to our lease end (November).

However, it's good to know where I stand with regards to the MF and residual percentage.

CarMan@Edmunds · July 2002

Hi Mark. You certainly are way up there. I am sorry to say that I am not aware of any special money factors on the 2002 Camry in your area. This does not necessarily mean that definitely they are not available, just that they probably are not.

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bimmer12 · July 2002

Hey Carman! I was looking to lease a 2002 Lexus IS300- I belive Lexus has a $2250 down, $399 a month for 39 months (39k miles)+ tax deal out there. I was able to negotiate this down to $329. Can you explain to me the concepts of Money Factor and Residual...I have a pretty good knowledge of it but I want to ensure I fully understand the terminology. Is this a good deal and can you interpret this to me based on MF and Residual? I'm going to the dealership on Saturday and would appreciate your assistance.

Thanks in Advance!

rlowrie · July 2002

Car_Man, any news yet on the latest Jag program. Looking at xk8 or S Type for 36 month, 12k miles. Thanks

jazzman_ · July 2002

Car_Man.....just wondering if you have had a chance to look at the new programs for July...Looking at MF/ residual for 2003 Acura TL..non-nav...non-S type..and 2002 VW Passat GLXw/tip non 4motion.....looking at a 36 mo/12k yr...thanks for the help....also I'm in Colorado

CarMan@Edmunds · July 2002

You're welcome, z1128. I am glad that you enjoy it so much. If you were to lease a 2003 Honda Pilot EX or LX through American Honda Finance Corp. this month for 3 years with 12,000 miles per, their base lease money factor and residual value should both be .00230 and 63%, respectively. The numbers for otherwise identical leases of these trucks for 4 years with 12,000 miles per would have numbers of .00210 and 55%, respectively.

In answer to your second question, I am not personally familiar with Chrysler Financial's specific policy on negotiating vehicles' lease-end purchase prices. I wouldn't listen to your dealer, who has a vested interest in making sure that you purchase another new vehicle, but instead would place a telephone call directly to Chrysler Financial to see if they would be willing to work with you. Even if they won't, you never know until you ask. You have nothing to lose by doing so. If your initial contact there is not willing to negotiate, consumers are often able to get results by going up the ladder a few rungs. It's worth a shot.

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rxke · July 2002

Hi Carman

Any news on these two cars? Money factor and residuals for 36 or 39 months and 15,000 miles. I live in NY.

Thanks

pegasus17 · July 2002

For Jazzman et. al.

Acura TL lease rates for June (supposedly same for July): 48 months, 12k per year, residual=58% (wow!); MF(best)=.00245; monthly=362+tax with nothing down, sales price was $28,500 Good luck...

gperr · July 2002

Car_man,

Can you include both 24 and 36 month Res/MF on G35 (Lux leather and base) w/12K miles in Southern NJ (Philly region).

Thanks

Gregg

seattleseeker · July 2002

Hello Car_Man
If possible would like to get the money factors and residual values for the above. I live in the Seattle area. 3 year, 12k miles. Thanks

jazzman_ · July 2002

coppamc....Thanks for the info

rlowrie · July 2002

Car_Man- Curious about current Lexus SC430 lease program. 3 yr, 12k miles is my likely target. Thanks

rmlinn · July 2002

Can you help with A6 lease rates for 3.0 CVT and 2.7T for the next 60 days? 10K miles/yr, in Florida, prefer nothing down although Audi's last national program required 2000$ down. 3 or 4 years, either is fine, as Audi pays maintenance for 48 months.

CarMan@Edmunds · July 2002

Hi again, Brent. I would be happy to scroll back a few days and help you out. If you were to lease a 2002 Nissan Maxima through Nissan Motor Acceptance Corp. right now for 3 years with 15,000 miles per, their base lease money factor and residual value should be .00212 and 52% for the GLE, 45% for the GXE, and 49% for the SE. The 39 month 15,000 miles per year money factors and residual values for this car should be .00221, 51%, 44%, and 48%, respectively. The 12,000 miles per residual values for these vehicles should be 1% higher than the 36,000 miles per year residuals.

If you were to lease a 2002 Infiniti I35 through Infiniti Financial Services this month for 3 years with 15,000 miles per, their base lease money factor and residual value should be .00225 and 50%. The 39 month numbers should be .00228 and 49%. The 12,000 miles per year residual values should also be 1% higher.

As far as the cash incentives that are available on these cars go, Nissan continued the $1,000 cash that they had available on purchases and leases of the 2002 Maxima. Also, for the month of July, Infiniti also has $1,000 retail or lease cash on the 2002 I35.

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CarMan@Edmunds · July 2002

You're welcome michaell. I know how you feel, I'm in the same boat

.

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CarMan@Edmunds · July 2002

Hey bimmer12. I think that the following links contain the exact information that you are looking for:

- Leasing Basics - Edmunds' Do-It-Yourself Guide to Leasing

- The "Residual Value" of Leasing

- Leasing Glossary

- Calculate Your Own Lease Payment

- Car_man "The Return of "How to Calculate Monthly Lease Payments"" Jun 28, 2001 7:15pm

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CarMan@Edmunds · July 2002

Yep, rlowrie, I have had an opportunity to check out the Jaguar Credit lease program for the month of July. If you were to lease a base 2002 XJ8 through them for 3 years with 12,000 miles per, their base lease money factor and residual value should be .00295 and 43%, respectively. The program on 2002 XJ8s is not very good right now, because they have phased out lease support on '02s and are introducing it on '03 models. In lieu of lease support 2002 XJ8 models will receive $7,000 dealer cash. Let me know if you need the numbers for the 2003 XJ8.

As far as the 2002 S-Type goes, Jaguar has 4 trim levels the 3.0L, 3.0L Sport, 4.0L, and 4.0L Sport, all of which have different lease parameters. If you let me know exactly which one you are interested in and whether it is a 2002 or 2003 model I would be more than happy to give you an idea of what its lease program should be like at this time. Talk to you soon.

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CarMan@Edmunds · July 2002

Hi jazzman_. Here is the information that you are looking for. If you were to lease a 2003 Acura TL without Navigation through American Honda Finance Corp. this month for 3 years with 12,000 miles per, their base lease money factor and residual value should be .00230 and a solid 65%, respectively.

As far as the 2002 Volkswagen Passat GLX Sedan without 4-Motion goes, if you were to lease one through VW Credit right now for 3 years with 12,000 miles per, their base lease money factor and residual value should be .00155 and 55%, respectively.

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CarMan@Edmunds · July 2002

Yes, I have seen the information that you are looking for rxke. If you were to lease a 2003 Infiniti G35 Sedan through Infiniti Financial Services for 3 years with 15,000 miles per, their base lease money factor and residual value should be .00260 and 55%. The 39 month factor for this car would be the same, but the residual value would drop to 54%.

If you were to lease a 2002 Audi A4 1.8T Sedan with quattro through Audi Financial Services in the state of NY right now, their 3 year 15,000 miles per base lease money factor and residual value should be .00235 and 56%, respectively. The 39 month factor would be the same, but the residual value would fall to 54%.

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CarMan@Edmunds · July 2002

Hey Gregg. See post #4126 for the 3 year lease program for this car. The 24 month 15,000 miles per year base factor and residual value for the 2003 G35 Sedan should currently be .00260 and 66%. To change these 15,000 miles per year residual values to 12,000 miles per year, add 1%.

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CarMan@Edmunds · July 2002

Good morning seattleseeker. If you were to lease a 2002 Honda Accord SE through American Honda Finance Corp. this month for 3 years with 12,000 miles per, their base lease money factor and residual value should be .00240 and 53%, respectively. This money factor is not as good as it was a few months ago, because Honda discontinued its lease rate support on this car and replaced it with $1,250 dealer cash that may be used on purchased or leased vehicles.

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CarMan@Edmunds · July 2002

Neat choice in cars, rlowrie. As one might imagine, Lexus is not currently providing any sort of support on the 2002 SC 430. So if you were to lease one through Lexus Financial Services, you would have to use their standard lease money factors. Right now the exact LFS 3 year 12,000 miles per base factor and residual for this car should be .00260 and 61%, for consumers who qualify for their top credit tier.

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CarMan@Edmunds · July 2002

Rmlinn, regardless of what sort of lease payment a manufacturer is advertising on a particular vehicle, one can always lease without putting any money down if they choose to. Of course, not making a down payment results in a higher monthly lease payment, but is definitely the way to go in my opinion. If you were to lease a 2002 Audi A6 3.0L in the state of Florida between now and August 6th through Audi Financial Services for 3 years with 15,000 miles per, you should be able to use their outstanding base lease money factor of .00001 and a residual value of 50%. The numbers for an identical lease of a 2002 A6 2.7T should be .00038 and 51%.

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jazzman_ · July 2002

Car_Man......Thanks for the info...buying this week...

phollie · July 2002

Car_man,
I keep hearing commercials for VW. What's the lease and/or purchase incentive on a Jetta GLS 1.8? Is it any different for the 2.0 version??
Also, any info on a Civic EX? When it comes to making a decision, money matters.
Thanks.

pegasus17 · July 2002

Car_man,
Please confirm (12k per year) Acura TL lease rates: Residual 65% for 36 mo and 58% for 48 mo; MF is .00230 for 36 and xxxxx for 48 mo. THX!

pegasus17 · July 2002

Car_man,
edmunds.com used to have a page with subsidized lease programs of the OEMs that was quite helpful. Did that go away? Can it come back?

larrydea · July 2002

Carman...I know this may sound ridiculous but I am looking at so many different vehicles (SUV's excluded)right now that I thought I would just ask a general question...What are the best deals out there right now for someone who is looking for a vehicle in the 24k-34k range at a $300-400/month payment, zero down, 36-48 months, and 12k-15k. I welcome suggestions from anyone else who may want to comment. Also, just wanted to let you know that this is the third time that I will be using this board to lease a vehicle. Your info and input has saved me $$$ on both my leases. Thanks in advance.

CarMan@Edmunds · July 2002

You're welcome, jazzman_. Good luck in your negotiations and be sure to come back to let us know how everything turns out.

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CarMan@Edmunds · July 2002

Hi phollie. Volkswagen currently has lease money factors as low as .00090 (around 2.16%) on the 2002 Jetta. Of course the exact factors are higher for some terms and trim levels than others. Also, although I have not seen it in writing yet, I hear that Volkswagen is providing $1,250 dealer cash on the 2002 Jetta this month. Honda on the other hand is only currently providing $250 dealer cash on the 2002 Civic.

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CarMan@Edmunds · July 2002

Hi coppamc. The lease money factor that you posted for a 36 month lease of a 2003 Acura TL through AHFC is correct and also would be good for 48 month leases. The residual values that you posted are also correct for non-navigation models leased with 12,000 miles per year.

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CarMan@Edmunds · July 2002

Hi larrydea. In many parts of the country, Audi currently has outstanding lease money factors on the 2002 A6, especially the 3.0L Sedan. This is one of the best deals that I have noticed this month, but it would almost certainly cost you more than $400 per month to lease one. Also, Saab is almost always the king of lease support. They have tons of lease cash and special lease money factors on both the 9-3 and 9-5 right now. Even with their relatively low residual values, it's tough to lease a more expensive vehicle for a lower monthly payment than you can with Saab. Volkswagen has some pretty good money factors available on most of its models this month as well. A good deal is obviously a great thing, but how good a deal are you really getting if you force yourself to drive a vehicle that you really don't like? Perhaps you can provide me with a list of vehicles that you are fond of and I could tell you which ones have the best lease programs available on them right now.

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CarMan@Edmunds · July 2002

I remember the list that you are talking about, coppamc. I don't believe that it has been available on Edmunds.com for several years. If you would like, please feel free to use this form to suggest that Edmunds.com bring that feature back: Edmunds.com Feedback Form.

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phollie · July 2002

Thanks car_man. That info may just push me back toward the Jetta. I was leaning toward the Civic of late but the Jetta safety features and engineering keep me interested.
And you're right about the Saab lease. I'm about to get out of one shortly. The only problem is, the value is dropping so fast and I'm going to be more than 12k over miles (my situation has changed since I leased). Any other solution other than just paying the overage at 20 cents a click??

larrydea · July 2002

Thanks Carman...sorry for such an open ended question but I have driven a number of cars and am not as picky as most. I currently have a 99 Accord EX (4cyl) and am looking to upgrade. I like the Saab 9-5, Volkswagon Passat, and am most interested in Acura TL S but realize that type S is probably out of my range. My lease is not up until November so I have some time to price shop. I know you gave some numbers for Acura TL...are they the same for type S? Thanks in advance.

pegasus17 · July 2002

I have also been shopping the TL-S and provide the following: If you can get someone to sell you the $31830 car for $30250, you can get a 48 month (12k per year) lease payment down to $378 + tax with zero down. That assumes a MF of .00245 and a 58% residual. Good hunting!

larrydea · July 2002

Those numbers look very appealing. Did you get an actual quote from a dealer or are these numbers you are running based on money factor and residual? I am definitely going to visit local dealer and talk numbers. Thanks again.

coreypop · July 2002

We recently lease a 1999 durango for 39 months. We have 35 months to go and need to find a way out. I know that nothing in life is free but I do not want to get hosed either. My wife the lessee was recently diagnosed with cancer and will not be able to drive for at least a year not to mention getting in and out of a truck. Does anyone know of any loop holes that might help get us out of this lease and into a more practical car that I would than purchase.

chrish11 · July 2002

Hi Carman,

Would you please advise the money factor and residual for an Audi A6 Avant and the 3 levels of Saab 9-5 wagon? 36 months/15k miles. I am in Pennsylvania.

Thanks!

CarMan@Edmunds · July 2002

You're welcome, phollie. One can purchase their leased vehicle at the end of their term and trade it in on another vehicle or sell it on their own in an effort to avoid lease-end charges if their lease-end purchase price is low enough or if the bank that they are leasing it through is willing to lower it to an attractive price. Unfortunately, if your vehicle is worth less than its lease-end purchase option, which seems to be the case by looking at your post then your only option really is to pay your excess mileage charges.

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CarMan@Edmunds · July 2002

That's not a problem at all, larrydea. I completely understand what you were trying to do. The Saab 9-5 and Volkswagen Passat are both good vehicles to lease right now. As you can see by my earlier posts, Acura is not providing any sort of lease support on the TL, but their standard lease program for it is still decent. The lease parameters for the TL-S would be exactly the same as they are for the Base TL, other than the vehicle's price. Keep in mind though that the lease programs that are available right now will certainly be different than the ones that are available in November.

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CarMan@Edmunds · July 2002

Hello coreypop. I am very sorry to hear about your wife's illness. I personally do not know of any loophole in typical automotive leases that would let you out of your contract at this point, but keep in mind that every lease contract and every bank is different. I suggest that you place a few telephone calls to the bank that you are leasing your vehicle through. Perhaps they may be able to work with you in this difficult time if you are able to get high enough up the corporate ladder. There certainly are no guarantees, but it definitely is worth a shot. If that does not work, you may want to consider getting out of your other vehicle, assuming that you have two. Are you currently leasing your second car or truck? If not, then perhaps you could sell it and drive the Durango yourself. Just a thought. I am sorry that I could not be more helpful. Good luck in your quest to get out of your lease and make sure to come back and let us know how everything turns out.

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samsvr6 · July 2002

Hi Car_man,
You are indeed a very helpful person . Can you please provide me the money factor and residual value for a 2002 Jetta GLI?
I am looking for 12k/yr and 15k/yr. Both for 36 months.
Also, can you confirm that VW is providing $1250 dealer incentive and $500 customer loyalty rebate for current VW owners?
Thank you and keep up the good work.

Sam

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