Lease Questions - Ask Here

CarMan@Edmunds · July 2002

Good morning, chrish11. If you were to lease a 2002 Audi A6 Avant through Audi Financial Services in the state of Pennsylvania right now, their 3 year 15,000 miles per base lease money factor and residual value should be .00090 and 50%, respectively. If you were to lease a 2002 Saab 9-5 through their captive finance company for the 3 years with 15,000 miles per this month, their base lease money factor should be .00069 for the 2002 9-5 Aero Wagon, .00040 for the 9-5 Arc Wagon, and .00056 for the Linear Wagon. The residual values for these vehicles should be 49%, 45%, and 42%, respectively.

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remy725 · July 2002

Hi car man
you've helped me many times in the past and I'm sure you will again.
What I'd like to know is what higher end vehicles ($40000+) have the lowest MF's and the highest residuals, both for 2 and 3 year leases?
I've always found subsidised leases of this sort the best.

Thanks again

Remy

krwest1 · July 2002

Car_Man,
I was just on the Mazda website running some lease numbers on a 2002 Tribute LX 4WD. The residuals I came up with for 24, 36, and 48 months (12k miles per year) were 53%, 46%, and 39%. The money factors I came up with were .00013, .00138, and .0017. I was just wondering if you could verify these. Also, does the current $1000 factory-to-dealer incentive apply to leases? If so, would I get these same money factors?

Thanks!

CarMan@Edmunds · July 2002

Hi Remy. As I mentioned in an earlier post, in many parts of the country Audi is providing a ton of lease support on A6s right now, especially the 3.0L. Also, Jaguar has some decent money factors available on the S-Type and X-Type this month. Lexus has some lease support again this month on the IS 300 and for the first time in a while on the GS 300. Porsche has special lease money factors on the 2002 Boxster for the first time that I can remember. Of course, Saab always has tons of support on both the 9-3 and the 9-5. These are the cars in your price range with the most lease support during the month of July that I can think of off of the top of my head.

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CarMan@Edmunds · July 2002

I would be happy to help you out, krwest1. If you were to lease a 2002 Tribute LX 4WD through Mazda's captive finance company right now for 2 years with 12,000 miles per, their base lease money factor and residual value should be .00010 and 55%. The 3 year numbers for this model should be .00134 and 48%. And last but not least, the 4 year numbers should be .00169 and 41%. Unfortunately, I do not believe that the cash support that Mazda is providing on the 2002 Tribute may be used in conjunction with their supported lease program.

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mtnmike · July 2002

I have a 2001 Ford F-150 Supercrew on a 24 month Red Carpet Lease. The lease ends on 08/29/02 and I will be making my final lease payment in two weeks. I have already placed an order for a 2003 Ford F-150 Supercrew which I intend to lease with a 24 month Ford Red Carpet Lease. I am buying from the same dealer at invoice getting the same deal I had on my 2001.

The current leased truck is "Pristine" and has 7,000 miles less than the 24,000 mile lease allowance (17,000 miles). The purchase option (residual price) is $19,600. I have a committed buyer (a close friend) for $23,600 at lease end. He will be financing his purchase through his credit union.

1. What is the process for accomplishing this transaction and getting the title from Ford to the buyer's lender?

2. Will sales tax have to be paid by me on the buyout price and at the same time sales tax be paid by my buyer on his purchase from me?

3. If so is there any way I can avoid paying sales tax on the buyout ($19,600) since the truck is going straight to my buyer and he is paying sales tax on his purchase ($23,600)? Seems like the city and state will be getting sales tax for $44,200 when in reality the truck is being sold for $23,600. There's got to be a way.

Thanks In Advance!!

Mike V

gperr · July 2002

Carman,

Can you please provide the MF & resid for the 2002 Buick Rendezvous (CXL AWD) and Acura MDX for 36 months 15K miles/year. Thanks

Gregg

jazzman_ · July 2002

MtnMike: Check with you State's DMV or Licensing Department...in some states I believe you can apply for a rebate on the sales tax if you have the vehicle for less than 10 days...but in others you have no choice but to pay the sales tax...they consider it as 2 seperate transactions.

rockinjul · July 2002

Car Man,

I live in Denver, and I'm interested in leasing the Acura 3.2TL Type S. Can you tell me what would be a good deal on a 36 month lease w/ 12k miles per year? Please include monthly payment, residual value and amount due at lease signing.

Thanks!!

rockinjul · July 2002

Car Man,

Recently, I looked into a lease special offered by Volvo. It was for the S60 2.4T model and included the following: monthly payment of $375/mo. for 39 mos., $2,495 cap. cost reduction, 12k miles per year and residual of $18,541 (based on 53% residual). The gross capitalized cost is $34,700.

I went on a test drive and decided on a specific S60 2.4T. I was then told by the dealership that the car I selected had approximately $3,300 in additional equipment which would cause the following changes: increase of $20 in monthly payment, increase in cap. cost reduction of $200 and increase in residual value of $990.

HELP! Based on the additional options, what would be a good deal on the revised monthly lease payment, cap. cost reduction and residual value? (The residual value is important to me because I plan to pay cash to buy the car at the end of the lease rather than putting out the capital now to finance the car with a direct purchase.) Also, is all "optional" equipment to be included in the residual value calculation?

NOTE: All numbers above are before any applicable sales tax.

Thanks!!

samsvr6 · July 2002

Car_man,

I am re-posting my earlier request for lease info on a 2002 Jetta GLI (post #4150). I am waiting for this info before I step into the dealer. I hope you will answer this time:

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.

Sam

KCRam · July 2002

Hi mtnmike

Since you are not titling the vehicle, you do not have to pay sales tax. You should be able to have your buyer (or in this case, his CU) write 2 checks: - one to Ford Credit for the payoff, one to you for the difference. When the title arrives, it will be signed by Ford - it can then be given to the buyer who will register and title it and pay the sales tax just once.

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footie · July 2002

Hi rockinjul,
The key numbers for Car-Man or Kcram will be the MSRP on the more expensive S60T. The first one seems to fit a profile of a Volvo ad where the sticker MSRP is 34,700. They price it at 31,900 and with the cap cost of $2495 the monthly pre-tax price comes in at $375 with a 53% residual and a money factor of .00185 or 4.4%.
If they really have another $3300 in options, they must have everything in the book on the car or its AWD or the T5.
Anyway, to make your other numbers work ($990 cap cost increase, $20 monthly payment and $200 more down) the residual has to go to 51%, the sticker would be $38000 and the cap cost would be around $33,750. Invoice for this vehicle, depending on exact configuration and option mix would be around $33K so you'd be paying a little over.
They must want to move the car and the 2003's are almost here. I don't think I'd pay over invoice on a 2002.
Plus this is a great time to shop for BMW's. A 325i sedan is similar to the S60 and is around $30K. The 330is $7K or so more.
Regards and good luck

mtnmike · July 2002

Jazzman and Kcram thanks for the input. Kcram I hear what you are saying but the end of lease buyout is technically a sale for the dealer who has to collect sales tax on the $19,600 purchase option. At the same time I am selling to the buyer for $23,600 which on paper is a second sale (I think) and I am afraid they will want sales tax on that also. I hope that's not the case but technically I have to buy it before I can sell it. Man this is kinda of confusing. I just don't want to lose $1,400 dollars paying sales tax to a dealer on a truck I will "Own" for only a few minutes!!!! I'll do some checking with both Colorado DMV and the Dealer on the suggestions you guys gave and keep my fingers crossed. I just needed some ideas going in. Anyone else with thoughts, comments, or experience in this area I would appreciate your input. How about you CARMAN any thoughts????

Thanks

Mtn Mike

CarMan@Edmunds · July 2002

Hi Mike V. It is occasionally possible to work with a dealership when selling a vehicle to someone at lease end in order to avoid paying sales tax twice. Many people are able to find dealers who for a small fee will purchase the vehicle at lease-end from the bank and then sell it to the party that you have recruited. If you are unable to find a dealership who is willing to do this for you, then you will need to contact the bank that you are leasing your truck through directly in order to find out their exact lease-end purchase procedures. There is an informative article on purchasing leased vehicles here at Edmunds.com. Please feel free to use the following link to check it out: Buying Your Leased Car.

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CarMan@Edmunds · July 2002

Hey Gregg. Here is the information that you are looking for. If you were to lease a 2002 Buick Rendezvous (CXL AWD) through General Motors Acceptance Corp. right now for 3 years with 15,000 miles per, their base lease rate and residual value should be 3.50% and I believe 52% or 53%. If you were to lease a 2002 Acura MDX (Non-Touring & Non-Navigation) this month through American Honda Finance Corp. for 3 years with 15,000 miles per, their base lease money factor and residual value should be .00230 and 62%.

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CarMan@Edmunds · July 2002

Hi rockinjul. Let's calculate a sample lease payment on this car for you and see what we come up with. According to my calculations, if you were to lease a 2003 Acura TL-S (without Navigation) with an MSRP of $31,830 at the Edmunds.com TMV price of $30,779 right now through American Honda Finance Corp. for 3 years with 12,000 miles per, you should have a zero down, pre-tax monthly lease payment of right around $399. Of course, if you are able to negotiate a lower capitalized cost for this car, then the monthly payment would be lower. As the money that would be due at lease signing goes, you would have to pay your first month's payment of $399, a security deposit of $400, and an acquisition fee of $550 for a grand total of $1,349.

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CarMan@Edmunds · July 2002

Hi again rockinjul. In order for me to calculate what the monthly lease payment should be like on the exact car that you are interested in, I am going to need you to provide me with this car's exact full MSRP and the price that the dealership you are working with is willing to sell it to you for. Once I have that additional information, I can tell you exactly how much money it should cost to lease at this time.

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CarMan@Edmunds · July 2002

Hey Sam. I didn't realize that I had missed your previous post. Sorry about that. If you were to lease a 2002 Volkswagen Jetta GLI through Volkswagen Credit this month for 3 years with 15,000 miles per, their base lease money factor and residual value should be .00120 and 54%. The 12,000 miles per year residual value for an otherwise identical lease would increase to 56%. Last month, Volkswagen was mailing current VW owners and lessees $500 loyalty coupons, but I do not believe that they have continued that particular program for the month of July. They do however have $1,250 dealer cash on the majority of their 2002 models.

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rockinjul · July 2002

Car Man,

Thanks for getting back to me regarding the Acura lease. In addition to the info. you provided, can you also tell me what the residual percentage should be for the Acura after a three year lease (12k miles per year)? Thanks.

chrish11 · July 2002

Thanks for the info CarMan. Do you know of any additional $$ incentives on these cars? Thanks.

chrish11 · July 2002

Hi CarMan,

Would you please post the money factor and residual for the M-B C320 Sport Wagon? 3 year/ 15k miles in Pennsylvania. Thanks.

mtnmike · July 2002

Car Man thanks for your input and the link. I don't know of it makes any difference with your answer, but this is a 24 month Ford Red Carpet lease through one of their Blue Oval dealers. Anything pertinent to Ford's leases concerning this that you may be aware of?

I have been very happy with the dealer, the 2001 F-150 Supercrew, and this lease. I just ordered a 2003 F-150 Supercrew and plan on another 24 month Red Carpet Lease from the same dealer. The day I ordered the new one I told the dealer (same fleet internet salesman I used on my last transaction) that I was trying to sell the current truck. He told me that was a great way to go if I could do it and they would extend the lease if I wished to accomplish that. We did not go into any further detail at that time. I am trying to gather as much info as I can before I sit down with them about this.

Thanks

muzhik · July 2002

Car Man, long time no see!

I am currently shopping for these two vehicles and would like to know their current MF and RV for 24 or 36 month lease with 12K/year. Would you happen to have this valuable information? If so, where do I send the beer?

CarMan@Edmunds · July 2002

Hi again, rockinjul. The 3 year 12,000 miles per residual value percentage for a 2003 TL-S right now is 65%.

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CarMan@Edmunds · July 2002

Chrish11, Audi is not providing any sort of cash on the 2002 A6 at this time. However, Saab is providing lease cash on the 2002 9-5. Specifically, in July they have $2,000 lease cash on the 2002 9-5 585, $3,000 on the 2002 9-5 575, and $5,000 on the 2002 9-5 525.

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CarMan@Edmunds · July 2002

Chrish11, if you were to lease a 2002 Mercedes-Benz C320S through Mercedes-Benz Credit Corp. this month for 3 years with 15,000 miles per, their base lease money factor and residual value should be .00339 and 57%, respectively. When negotiating on this particular vehicle, make sure to keep in mind that Mercedes is providing $3,000 dealer cash on it right now.

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samsvr6 · July 2002

HI Car man,
Thanks for the lease information provided on the 2002 Jetta GLI. I have more questions. Do you know if VW provide 18k or 20k miles/yr. leases? The VW website lease calculator only goes up to 15k miles/yr. Or can I purchase the additional miles upfront and how much per mile?

Thanks again.

CarMan@Edmunds · July 2002

Welcome back, muzhik. I would be happy to help you out. Right now, the two and three year base lease money factors for a 2002 Jetta Wagon 1.8T leased through Volkswagen Credit should both be .00115. The corresponding 12,000 miles per residual values for this car should be 65% and 56%.

As far as the 2003 Toyota Matrix goes, if you were to lease one through Toyota Motor Credit Corp. for two or three years, their current base lease money factor should be .00250 for both terms. Their corresponding 12,000 miles per year residual values should be 64% and 61% for the 2WD version and 66% and 63% for the 4WD version of this car.

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CarMan@Edmunds · July 2002

You're welcome, samsvr6. The highest residual values that VW Credit publishes are for 15,000 miles per year leases. However, they do allow consumers to purchase excess mileage in advance if they anticipate driving more than this. Unfortunately, I do not know exactly how much money they charge per additional mile. Most banks do provide a discount on mileage purchased at lease signing, so if you are certain that you will exceed your mileage allowance it is definitely in your best interest to purchase the miles now.

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muzhik · July 2002

Thank you very much for the information. I am wondering why the Edmunds Web site doesn't have this information published, like current incentives. That would have been an invaluable resource for lease junkies such as myself...

moorejwm · July 2002

Carman,

What is VW offering for incentives on the Jetta TDI, either sedan or wagon, 15K/yr, 36mo lease. Location is Michigan.

mtnmike · July 2002

Jazzman, Kcram, and Carman

Just to let you know I contacted the Ford Dealership's Finance Manager and got the answer I needed. Basically my buyer gets a check for the purchase from his Credit Union. We then both proceed to the dealership. The dealership pays Ford Credit the buy out amount ($19,600) directly from their Ford Dealer's account thus legally avoiding sales tax. The buyer then pays the dealer the selling amount ($23,600) and the Dealer cuts me a check back for the remaining $4,000. My buyer pays the sales tax on his $23,600 purchase just as he would if he were buying any other vehicle.

They do this without charging me a commission or any additional fees. I was told they provide this as a free service to all repeat customers with a good payment history. Since I have ordered a 2003 vehicle (my third one from them), which I also plan to "Red Carpet" lease they consider me a preferred repeat customer.

These guys have been great!! All my trucks have been bought from this dealer for INVOICE and I have been treated honestly and well. This just puts "icing on the cake". If I would have had to do the purchase then re-sell this vehicle it would have cost me $1,400 in sales tax which I can now legally avoid at no extra cost or commission.

Anyway that's the way it worked for me!

Thanks Guys for your input!!

Mike V

ct_yank · July 2002

Hi Carman
Awesome service you provide here. I am looking to lease either a SAAB 9-5 Aero Sedan or Audi A4 3.0 Quattro Sedan. Can you please provide the money factors and residual values for these cars. Also, do you know what the dealer incentives are on the SAAB? I live in CT.
Thanks in advance.

ct_yank · July 2002

Sorry. I forgot the lease terms for the Audi & SAAB in my previous post. I'm looking to lease for 36 months and 12k miles per year

samsvr6 · July 2002

Hi Car man,

Do you know if I can combine the $1250 dealer cash and the 2.88% lease APR for a 2002 Jetta GLI?

Thanks.

Sam

sergeym · July 2002

What are current residuals and money factor for 2002 Lexus GS 430 for 36 and 42 month and 12K/year
Thanks.

KCRam · July 2002

Sounds like you have a good quality dealer there. Nice to hear that they handle transactions of that nature for their top customers with no commission expected.

kcram
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CarMan@Edmunds · July 2002

You're welcome, muzhik. I am glad that I was able to help you out. Good luck in your quest for a new vehicle.

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CarMan@Edmunds · July 2002

Hi moorejwm. If you were to lease a 2002 Volkswagen Jetta GL TDI Sedan through Volkswagen Credit Corp. right now for 3 years with 15,000 miles per, their base lease money factor and residual value should be .00100 and 55%, respectively. The numbers for an otherwise identical lease of a 2002 Jetta GL TDI Wagon should currently be .00105 and 55%.

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CarMan@Edmunds · July 2002

Thanks for coming back to let us know how everything turned out, Mike. I thought that sales tax could legally be avoided by having the dealership assist you with this transaction. It's nice to see that they are willing to provide such a service to loyal customers for free. They sound like an excellent dealer to work with.

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CarMan@Edmunds · July 2002

I am glad to see that you enjoy visiting this message board so much, ct_yank. Thanks for the follow up post with the additional information. If you were to lease a 2002 Saab 9-5 Aero Sedan through Saab Financial Services Corp. for 3 years with 12,000 miles per, their base lease money factor and residual value should be .00055 and 49%, respectively. When negotiating a deal on this particular car, make sure to keep in mind that Saab is currently providing $3,000 lease cash on this model, in addition to their lease money factor support.

If you were to lease a 2002 Audi A4 3.0 Quattro Sedan through Audi Financial Services in the state of Connecticut this month for 3 years with 12,000 miles per, their base lease money factor and residual value should be .00130 and 55%, respectively.

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CarMan@Edmunds · July 2002

That is a very good question, Sam. Although I do not know a definite answer, if I had to make an educated guess I would say that this dealer cash probably can not be combined with the special financing or lease programs. You may want to hop over to one of the Jetta discussions on the Sedans Message Board to see if anyone there has an answer to this question.

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CarMan@Edmunds · July 2002

Hey SergeyM. Although Lexus is providing lease money factor support on the 2002 GS 300 right now, they are not providing any on the GS 430. So if you were to lease one through Lexus Financial Services this month, you would have to use their base standard lease money factor of .00260 for all terms. This is their top credit tier's factor, individuals with worse credit will have to use higher standard factors. The 36, 39, and 48 month 12,000 miles per year LFS residual values for the 2002 GS 430 without Navigation are currently 54%, 53%, and 48%. I have not seen the 42 month residual values for this car, but they would obviously fall somewhere between the 39 and 48 month residuals.

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augustrose · July 2002

Hi,
I am currently holding an up-side-down lease and will end in April 2003. I am thinking of bringing the car in and finance another one.
How do I come about to close out the lease earlier than the contract without losing a lot of money?

If you have come across this type of situation, please write about it. I would like to hear all opinions.
-Rose

mtnmike · July 2002

Anyone heard what the residual and money factor (interest)is for the new 2003 Ford F-150 Super Crew on a 2 year Red Carpet Lease? When I did a 2 year Red Carpet lease on my 2001 Super Crew in Aug of 2000 they gave 61% residual and a 9% interest rate. I don't think the residuals will be as high these days but am thinking the interest rate should be lower. My salesman could only hazard a guess as the truck won't be delivered until mid-September. He thought maybe 57% and 8% interest.

Thanks

Mike V

bradlake1 · July 2002

Hi-

Car_man, I have been quoted a lease rate of $694.49 (plus tax) for a SE model Discovery 15,000mi / 36 mo. Also, $571.31 (plus tax) for a S model Discovery same terms. I live in the Atlanta area, only money due at signing is first month's payment, tag, tax, and processing fee. Can you offer advice if this is a good deal or can you post money factor and residual? Thanks for your efforts!!!

kywon · July 2002

OMG carman, I've been looking for you for over 7 years now! Finally a place that I can get the actual answers to my leasing questions. Thank you so much!

I'm looking to lease a '02 Saab 9-3 SE convertible automatic in LA, California. The best information that I've received to date is that Saab Financial on a 3 yr/12k mi lease gives a 44% residual, roughly a 2% interest rate divided by 24 = .00083 money factor? and has a $6,000 dealer incentive on this particular car. Could you confirm this information for me please?

Also, just for kicks, could you let me know what the incentive and terms would be on a Viggen convertible? And do you have any information at all for August by any chance?

Again, thank you very much!

rmlinn · July 2002

What does $3000 lease cash really mean (for the Saab Lease)? Does that mean that $3000 will be deducted from negotiated cap cost and then the lease calculated? Or does it mean that $ 3000 is available after negotiated cap cost to defray "Down Payment" or other costs? Is this $3000 already figured into the current 9-5 program advertising $339/48 months with 3183 due at signing ? Or can one apply it and only pay $183 down, for example. And will this continue into next month? A lot of questions - thanks for all your help!

kywon · July 2002

In general, are the money factors and residuals that you quote require a certain cap cost reduction stated by that manufacturer's finance arm? Or can we get those same rates by putting down nothing?

And in particular, how does this apply to Saab and their rates?

Thanks again.

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