Lease Questions - Ask Here

darthken · August 2002

Hi CarMan,

Thanks again for your assistance on the CRV EX. Was hoping to ask 3 more quick questions:

First, when do AHFC's August terms expire (Sept 1 or some other date)? Second, could you give MFs and residuals for a VW Jetta 1.8T -- GLS I suppose -- 3yr at 12k and 15k/yr (assuming 2002 model, but if you see numbers for 2003s please provide them as well)? Third, MFs and residuals, 3yr, 12k&15k, for a Subaru WRX sedan (same thing re: 2002/2003).

I really appreciate the service you are providing here. After this I'm ready to go shopping!

parker19 · August 2002

test drove a 2002 audi a-4 ... the sticker was 29 and change .. asked about a 3 year lease,15.000 miles .. they wanted 460 a month and 2 thousand down ... is it me or is this offer competely insulting ... thanks for your advice

CarMan@Edmunds · August 2002

Hey Mike. Volvo seems to have a decent amount of regional variation in their incentives this month, even more than they normally do. So it is important for us to look at the exact lease program for your area. I haven't seen it yet, but know someone who I should be able to get this information from. I will give them a call this afternoon. Please check back with me either tonight or tomorrow and I should have all of the information that you're looking for. Sorry about the delay. Talk to you soon.

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CarMan@Edmunds · August 2002

I am glad to hear that you find this discussion so helpful, Brian. According to the information that I have seen, if you were to lease a 2002 Mercedes-Benz 2002 C320S this month through Mercedes-Benz Credit Corporation for 3 years with 12,000 miles per, their base lease money factor and residual value should be .00314 and 59%, respectively. On a 4 year 12,000 miles per lease of this car, the factor would be exactly the same, but the residual value would drop to 52%.

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CarMan@Edmunds · August 2002

Hey Gregg. Yes, I have seen the August lease program for this car. If you were to lease a 2003 Infiniti G35 with Leather through Infiniti Financial Services this month for 2 years with 12,000 miles per, their base lease money factor and residual value should be .00260 and 67%, respectively. The 3 year numbers for an otherwise identical lease would be .00260 and 59%.

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CarMan@Edmunds · August 2002

Thanks for the additional information, Adam. I have done some checking and it appears to me as though General Motors may have done away with their supported lease program for 2002 vehicles. This certainly does not surprise me given the fact that they terminated their lease support on 2002 Saturns a month or two ago. So if you were to lease a 2002 Oldsmobile Silhouette through General Motors Acceptance Corp., I believe that you would have to use their standard lease program, which probably is not a very good idea. General Motors is not providing much in the way of lease support on any 2003 Oldsmobile models in certain regions right now. GM is providing a 3.5% lease rate on this minivan in some areas, but I do not believe that you are in one. Unfortunately, there is a good chance that you would have to use GMAC's standard lease program even to lease a 2003 Silhouette. As far as the GMC Envoy goes, GM is currently providing a 6.5% base lease rate and a residual value of 48% for a 3 year 15,000 miles per lease of one through General Motors Acceptance Corp.

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CarMan@Edmunds · August 2002

JP, you definitely should be able to get the entire $6,000 lease cash deducted from this car's price. As far as the pre-lease cash selling price goes, it is difficult to say whether you will be able to get this dealership to sell you this car at invoice. I personally think that a few hundred dollars over invoice is a much more likely price, but you never know. In your negotiations it certainly wound not hurt to see if you can get them to sell you this car at invoice, prior to having any incentives deducted. The worst thing that could happen would be that they say no.

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CarMan@Edmunds · August 2002

Steve, Saab has two different cash incentives available on its cars. One is called "Alternative Merchandising Assistance," which is basically a fancy name for dealer cash that can only be used on retail purchases that do not take advantage of their special financing or lease programs. The other cash incentive is lease cash that may be used in conjunction with their special lease money factors. I believe that you were interested in the 2002 Saab 9-5 524. On this particular model, Saab is providing $6,000 lease cash that may be used to reduce the capitalized cost of leased vehicles and $6,750 dealer cash for non-lease and non-special financing transactions. The exact amounts of their incentives very by trim level. If this was not the model that you are interested in, let me know and I will look into the exact cash incentives for any other models that you would like.

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multiplechoice · August 2002

Hi Car_Man, Can you provide the MF and residuals for the Audi TT convertible (both quatro and FWD) and also the Saab 9-3 convertible. I'm looking at 24 or 36 months @ 12k/yr. Thanks for all your help! (I'm in southern california.)

jpesci · August 2002

Car_man

I'm also looking at a 2002 9-3 SE Covertible. I'd like the MF and residuals an this as well for 24 and 36@ 15k/yr.

I've read they offer lease cash on this one too. Is that true?

JP

edisaac · August 2002

Car_Man

Seems like quite a few people are looking at the 9-5... Anyhow went in to see this car over the weekend and test drove both the 9-5 Linear and Aero station wagon models. I've read about the lease/special financing offers on the Linear. Have you heard of any such offers for the Aero? Also how negotiable are the miles and mileage penalty costs when using these lease deals. Thanks

force98 · August 2002

Did the dealership you went to have Aero sedans? If so, what city? If I get a 9-5, I want an Aero; however, there are no '02 Aeros available in Albuquerque, and have not been available for several months. They have an '03 inbound, but there will be no special incentives on it.

Car_man; what do you mean by 9-5 524? Saab 9-5 models are Linear, Arc, and Aero.

edisaac · August 2002

The lot only had an Aero station wagon. Fun ride.

italia10 · August 2002

Car_Man,
I am also interested in the lease deals available on this car, but in New Jersey. What is the mf, residual, etc for 39/12K? Also, what is the typical negotiable cap cost for this car with all packages (including 17" wheels)?
Thanks

CarMan@Edmunds · August 2002

Hi Remy. Volvo's lease program for the 2002 V70 XC varies by region. It would be a big help if you would let me know what part of the country you are in. Once I have that additional information, I will be able to provide you with an idea of what this model's current lease program should be like. Talk to you soon.

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CarMan@Edmunds · August 2002

I'd be happy to help you out with a couple more questions, darthken. I believe that AHFC's current lease program is only scheduled to run through the end of the month.

As far as the 2002 VW Jetta 1.8T GLS Sedan goes, if you were to lease one through VW Credit this month for 3 years with 15,000 miles per, their base lease money factor and residual value should be .00100 and 54%, respectively. The 12,000 miles per year residual would increase to 56%. The numbers for an otherwise identical lease of a 2003 version of this car should be .00180 and 58% with 15K and 60% with 12K.

Lastly, if you were to lease a 2002 Subaru WRX Sedan through their captive finance company for 3 years with 15,000 miles per, their base lease money factor and residual value should be .00210 and 49%. The 12,000 miles per year residual for this term would increase to 50%.

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CarMan@Edmunds · August 2002

Hi multiplechoice. The answer to your question is B

. I know that it's horrible, but I couldn't resist. Looking at all of these lease questions takes its toll on a man

. OK, so you're looking for information on leasing a 2002 Saab 9-3 Convertible SE. Well, if you were to lease one through Saab Financial Services Corp. for 2 or 3 years, their base lease money factor and residual value should be .00099. The 12,000 miles per residual values for this car should be, 49% and 44%, respectively. As far as the Audi goes, if you were to lease a 2002 TT 180 Roadster 2WD through Audi Financial Services this month in California for 2 or 3 years, their base lease money factor and residual value should be .00180. The 12,000 miles per residual values for this car should be 63% and 57%, respectively. The numbers for an otherwise identical lease of a 2002 TT 225 Roadster quattro should be .00145, 63%, and 57%.

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CarMan@Edmunds · August 2002

Hi again JP. Please see my previous post for this car's lease money factor. The 2 and 3 year 15,000 miles per residual values for the 2002 Saab 9-3 Convertible SE should be 48% and 43%, respectively. Also, there is indeed lease cash available on this car. Through the end of the month I believe that Saab is providing $5,000 lease cash on it.

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CarMan@Edmunds · August 2002

Hi edisaac. There certainly has been a number of Saab questions lately. In answer to your question, yes Saab is providing lease support on Aero models, both in the form of supported lease money factors and lease cash. Even though they are not providing as much support on the Aero as they are on the Linear or Arc, there is still a substantial amount of support on it. If you have any specific questions on this car's program, please let me know.

The main aspect of leases that can be negotiated is a vehicle's capitalized cost. Naturally, the lower a vehicle's capitalized cost (selling price) is, the lower its lease payments will be. Individual dealerships do not have any authority to alter a bank's excess mileage penalty charges or mileage allowances, so attempting to haggle on these items is a complete waste of time. Concentrate your efforts on getting a low price, making sure that you are only being charged Saab's base lease money factor, and that you are taking full advantage of all the available lease cash and you will assure yourself of getting a good deal.

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CarMan@Edmunds · August 2002

Force98, Saab has internal model designations for all of its vehicles. They call the 9-5 Linear Sedan the 524. I suppose that I should have used the more popular name for this car in my post. Sorry for the confusion.

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CarMan@Edmunds · August 2002

Hello italia10. If you were to lease a 2002 Volvo 2002 S60 2.4T AWD in New Jersey this month for 39 months with 12,000 miles per year, their base lease money factor and residual value should be an amazingly low .00001 and 55%, respectively. In order to get a good idea of what sort of price you will be able to negotiate on this car, I suggest that you look up its True Market Value in the Edmunds.com New Vehicle Pricing section of this site and consult with other owners and shoppers on the Station Wagons Message Board.

Car_man

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remy725 · August 2002

Hi Carman
Sorry about that.
I'm in NY.

Thanks Again
Remy

viking89 · August 2002

When a car company advertises an incecntive like 2.9% APR, does this apply to leases as well as if you are looking to buy the car?

gfelker · August 2002

Wow, carman--that is an amazing money factor for the new jersey area on this car--How about a residual and mf for north carolina?

aleksd1 · August 2002

Car_man,
Could you give me residuals and MF for 2002 4wd QX4? Is there any dealer or customer cash on QX4?
Also, do you have any info on residuals for 2003 models?
Thanks,
Alex

aleksd1 · August 2002

Sorry, I fogot to mention that I would like info on 24 and 36 month leases with 12k/year and also info on 2003 QX4 4wd.
Thanks again,
Alex

edisaac · August 2002

Car_man:

In respect to the Aero model...What kind of lease cash is available on this model; the salesperson told me there is about $6k on the Linear model. Also is the Saab financing (on a lease) more attractive than going elsewhere. They told me the money factor would be under 3. Lastly, what about the residual value on the Aero? Thanks again.. great consumer info.

art37 · August 2002

Hi!!!!!! Plese help - not sure what way to go.... have a 1999 Dodge Ram 1500 Quad w/ 75K and has drained our pocketbooks of additional monies w/ new trani and torque converter ....want to get rid of it so thinking of a trade (no trade-in value due to equal value owed).... don't know whether it is better to lease thinking of Toyota Tundra 4dr 2wd V8 or trade in and buy or lease w/ Dodge for one of similar style.... am trying to keep monthly payments low and have a reliable running truck ... when chkng out lesing the % rates seem exceptionally high 10%... have xcel credit report so was hoping could find some deals that offered low interest rates for Texas zip code of 75701... are there any deals out there w/ low monthly payments... what is a realistic % rate if buying a used 2000/01 truck??? am stumped as to which way to go - lease, buy new, or buy used.... thanks so much !!

kywon · August 2002

Car_man-

Hopefully you still have your Saab information out. Assuming that this information is different than the Aero Wagon from the post above, would you please give me the 3yr/12k mi money factor and residual on an '02 Saab 9-5 Aero Sedan in California. Also, how much lease cash are they offering? Thank you.

darthken · August 2002

Hi CarMan,

Just signed a lease for a CRV EX, and thanks to your numbers felt much more confident in the dealership! Just one thing to note: you quoted a MF of .0023, but the salesman said that rate was only available if I put down a security deposit of approximately one month's payment -- otherwise the rate was .0024.

Since made less than $4/mo difference I didn't push the issue and took the .0024, but for others out there about to negotiate a lease, you may want to check if the MF you have in mind is with/without security deposit. (Maybe this is commonly understood, or maybe the salesman was putting one over on me, but I'm happy with the purchase so all is well!)

Thanks again CarMan for all your great advice!

gperr · August 2002

Car_man,

A couple months ago I asked about the Infiniti Financial Services Bank Fee/Acquisition fee which is included on the lease calculation on every leased car through IFS. At the time you were not positive about the number.

Have you had any opportunity to find out this amount? If not, can you track it down for me.

Thanks again
Gregg

CarMan@Edmunds · August 2002

No problem, Remy. If you were to lease a 2002 Volvo V70 XC through Volvo Finance for 3 years with 15,000 miles per in the New York area right now, their base lease money factor and residual value should be .00083 and 57%, respectively. The 12,000 miles per year residual value for this term should increase to 59%. The 39 month numbers for an otherwise identical lease should be .00083, 55% with 15,000 miles per year, and 57% with 12,000 miles per year.

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CarMan@Edmunds · August 2002

Hi viking89. Unfortunately the special financing rates such as 2.9% APR or 0.0% financing that one sees advertised on television and in the newspapers only apply if one finances the vehicle with a normal loan. These identical rates can not be used on leases. However, if a company is providing special financing rates on a vehicle, there is a very good chance that they also are providing lease support on it, but the rates may be slightly different.

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CarMan@Edmunds · August 2002

You're right, gfelker, a lease money factor really can't get any lower than that. If I am not mistaken, I believe that the base lease money factor for a 2002 S60 2.4T AWD leased for 3 years in North Carolina should be around .00040, which is still very good.

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CarMan@Edmunds · August 2002

Thanks for providing the additional information in your second post, Alex. If you were to lease a 2002 Infiniti QX4 4WD through Infiniti Financial Services this month for 2 years with 15,000 miles per, their base lease money factor and residual value should be .00067 and 57%. The 3 year numbers for an otherwise identical lease should be .00067 and 49%. In addition to these special lease money factors, Infiniti is also providing $500 dealer lease cash on this truck during the month of August. I have not seen the lease program for the 2003 version of this truck yet, so I can't help you out there.

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CarMan@Edmunds · August 2002

Edisaac, during the month of August Saab is providing $3,000 lease cash on the 2002 9-5 Aero Sedan. Although it is difficult for me to say with 100% certainty that you would not be able to lease a Saab for less through some outside lending institution, I find it extremely difficult to believe that any bank out there could offer deals that are as attractive as the ones that are currently available through Saab Financial Services. I would be more than happy to give you an idea of what the residual value for this model should be like right now, but first I am going to need you to tell me how long you want to lease it for and how many miles per year you will need.

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CarMan@Edmunds · August 2002

OK, so we're looking at the 2002 9-5 Saab Aero Wagon now. The 3 year 12,000 miles per base lease money factor and residual value for this car should currently be .00069 and 50%, respectively, and the lease cash available on it should be $2,000.

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CarMan@Edmunds · August 2002

Hi Art. It certainly sounds to me as though the Dodge dealers that you have spoken with are really trying to mark up the lease money factor on this truck to bake a lot of additional profit into your deal (that is assuming that your credit is in excellent shape). The worst that Chrysler Financial's 3 year base lease money factors on the 2002 Ram Pickup 1500 should be is equivalent to an interest rate of right around 7.5% and they are significantly better than that in many parts of the country. Even the 2002 Toyota Tundra which has no lease support whatsoever available on it right now should have a base lease money factor of .00250 or so on it, which is equivalent to an interest rate of right around 6%. Having said this, neither of these trucks have particularly outstanding lease programs on them at this time. If I was in the market for one, I probably would finance or pay cash for it. This is especially true if you are trading a vehicle in because I am strongly against making large down payments on leased vehicles.

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CarMan@Edmunds · August 2002

Congratulations on the new truck, darthken! Yes, all leases that are run through American Honda Finance Corp. require a lease security deposit that is equivalent to the monthly payment rounded up to the nearest $50 or so (except for the Accord which has a special security deposit waiver program available on it at this time). This is typical in the industry. All banks require lease security deposits equivalent to rounded off monthly payments, unless they are running some sort of special security deposit waiver program. The amount that they increased this truck's money factor by to waive its security deposit looks to be correct. It is nice when one finds an honest dealership that is easy to work with, which certainly seems to be the case in your situation. Enjoy your new ride.

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CarMan@Edmunds · August 2002

Hey Gregg. I believe that Infiniti Financial Services' lease acquisition fee is currently $450.

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rxke · August 2002

Hi Carman

I think I am finally going to pull the trigger on an A4 1.8 sedan. I live in NY and currently own an Audi Avant. Could you please tell me the latest money factor and residuals for 39 months and 15,000 miles. Do they have anything for Audi owners. What I would like to do is lease the new Audi and trade in the old Audi so I get cash for that car. Any insights would be appreciated.

Thanks for your help.
RXKE

edisaac · August 2002

Car_Man

Looking at a 48 month lease with about 18k/yr in mileage.

italia10 · August 2002

Thanks Car_Man for the info...now the dealing begins!!

aleksd1 · August 2002

Car_Man,
Thank you very much for your quick response.
By the way, if you ever stumble upon any pricing or residiuals information on upcoming Nissan Murano, please let me know
Thanks,
Alex

analogkid1 · August 2002

Hi Carman,

I just recently negotiated a price on a new G35, Leather,Premium, winter, xenon, wood package and trunk mat. Selling price was $32,359. I feel the price is fair but it seems that the lease is a little high. They quoted me a monthly payment of $523.27, 39 mos, 18,000 miles, $1,500 out of pocket, Residual 56% and money factor is .00275. Does this seem reasonable? If not, what part can I negotiate. Any advice would be welcome. Thanks.(I received quotes on an Audi A6 with the same 39 mos. and 18K miles and that price was only $558/mth, but the car is $8,000 more than the G35, what gives!)

CarMan@Edmunds · August 2002

Hey RXKE. Here is the information that you are looking for. If you were to lease a 2002 Audi A4 1.8T Sedan with quattro through Audi Financial Services in the New York area this month for 39 months with 15,000 miles per year, their base lease money factor and residual value should be .00235 and 54%, respectively. As far as loyalty cash goes, Audi is currently providing $400 owner loyalty cash on 4-cylinder models.

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CarMan@Edmunds · August 2002

Thanks for the additional information, edisaac. If you were to lease a 2002 Saab 9-5 Aero Wagon through Saab Financial Services Corp. during the month of August for 48 months with 15,000 miles per year, their base lease money factor and residual value should be .00100 and 41%. This special lease money factor may be combined with the lease cash that we have already discussed. If you will need more than 15,000 miles per year with this car, you can purchase additional mileage on a per mile basis when you sign your lease contract and should be able to have the cost of those miles baked into your monthly lease payment.

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CarMan@Edmunds · August 2002

You're welcome, italia10. Good luck in your negotiations.

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CarMan@Edmunds · August 2002

No problem, Alex. I haven't seen any sort of pricing info on the Nissan Murano yet, but I will keep my eyes open for it.

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CarMan@Edmunds · August 2002

Hello analogkid1. Let me begin by saying that it appears as though the dealership that you are working with it marking up Infiniti Financial Services' base lease money factor for this car, in an effort to bake a little additional profit into your deal. Assuming that you qualify for IFS' top credit tier, their base lease money factor for a 39 month lease of a 2003 G35 should be .00260 at this time. The residual value that they quoted you is right on the money though. I would be more than happy to play with some numbers and calculate a sample lease payment on this car for you if you would like, but first I am going to need you to tell me what this car's full MSRP is. As far as the Audi having a similar lease payment even though it is a significantly more expensive car goes, it does not surprise me because Infiniti is not really providing any sort of lease support on the G35 right now, but Audi is providing some fairly attractive supported lease money factors on the 2002 A6.

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