Did you recently take on (or consider) a loan of 84 months or longer on a car purchase?
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Car_man
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As far as the Altima goes, if you were to lease a 2003 Nissan Altima 3.5 SE through Nissan Motor Acceptance Corp. this month for 3 years with 15,000 miles per, their base lease money factor and residual value should be .00260 and 53%, respectively.
Have a great weekend!
Car_man
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P.S. I just remembered, Lexus also is running a special promotion this month that allows consumers to lease vehicles for 39 months using their 36 month residual values. Doing is a good idea and so will enable you to reduce your monthly lease payment a little bit.
Happy Holidays
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In answer to your specific question, if you were to lease a 2003 Chevrolet Tahoe through General Motors Acceptance Corp. this month for 3 years with 12,000 miles per, their base lease rate and residual value should be 6.50% & 55%, respectively.
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Just wanted to thank you again for your help... the lease went smooth and now my wife is very happy to be a proud 'owner' of a 2003 Outback Limited.
Happy Holidays!!!
Returning the car early isn't an option. I'd still be required to pay the amount of the lease's remaining payements. I still haven't quite figured out how this is even legal. They're making you pay for a portion of time after which you would no longer even have the vehicle anymore. How can they get away with this?
If I wait until the lease is done, I will have to pay for mileage. My contract was for 5 years with a limit of 60000 miles. The car now has 62K on it, and at the end of the lease, I figure it'll have about 70K. At $.15 per mile, that's $1,500 I'll owe for that.
I'm not totally sure I completely understand this residual value thing. On my contract is says $7,659. I'm assuming that number has two meanings. If I elect to buy out the car at the end of the lease, that's how much I'll have to pay. It probably also means that if I choose to turn the car in, and if it's determined that the car is worth less than this amount, I'm sure I'll be stuck paying the difference. Of course for every little paint chip and ding they find, they're going depreciate the vehicle another grand, so they'll claim it's worth some ridiculously low amount. Maybe I'll suffer the least amount of loss by buying the car at the end of the lease, then selling it outright. It will still no doubt be a loss, but maybe not as much as if I turn it in.
I don't understand why paying for a new car requires so many people's hands in my pockets, or why they have to go so deep. There is no less painful way to do it, nor do I believe that a fair price can be had anymore when purchasing a new vehicle. Either you choose a lease to get reasonable payments, but then your stuck with the [non-permissible content removed] reeming of your life at the end of the lease, or you purchase the vehicle and you deal with payments as high as your house payments. This may be too much for me, and maybe I'll buy used next time. Of course now that my sphincter muscle is streatched out big enough to drive an 18 wheeler through, it shouldn't hurt anymore.......but it still does.
Would you know what the current residuals and money factors are for 36 or 39 month 10K miles/year for the Infiniti Q45, MB E320, Jag S-Type V6, and Lincoln LS V-8. I have a 2000 BMW 5 series coming off lease in Feb 2003. I know that sometimes competitors will offer "buyout" of one or two months to get you into one of their cars. I was at Jaguar yesterday and they have a $1000 offer to get someone out early if they are current BMW or MB leasees. Jaguar quoted me 54% residual and 0.00199 MF on a 39month 10K/year lease as part of their "Unwrap a Jag" promotion. They were also discounting the S-Type 4K from MSRP. Do you think this was a good deal? Your help is greatly appreciated.
They aren't trying to get away with anything. It's you that is trying to get away with not paying what you agreed to pay.
If you had decided to return the car after making two payments do you think you could just give it back and that would be the end of it?
If you want to end it early, the best thing would be to get a buyout quote, sell the car on your own, and pay the buyout amount from that.
There does seem to be one part that could be considered "unfair" -- by buying out the balance of the loan, you are basically paying all the interest charges on the money you "borrowed" for the full term of the loan, even though you're basically paying the money back early. Think of it as a loan with a really significant pre-payment penalty. Its not illegal (that I know of), but its definitely not the nicest clause in the world. That's just one of the pitfalls in almost every lease. That, and the fact that you are paying interest on both the total amount of the car AND the lease-end residual value, you're sort of paying interest on 150% of the car's value..
Car_man
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Car_man
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Unfortunately you are not going to be able to walk away from your leased car at this time. The bank that you are leasing it through is going to require you to make your remaining lease payments, unless you purchase your vehicle from them. It may be possible to purchase this car for less than the purchase option price that was established at lease signing. In order to find out if the bank that you are leasing it through would be willing to work with you on its price you are going to need to give them a call. When you do so, it often turns out that your initial contact has no authority to work with you on the price. If that is the case, you need to move a few rungs up the ladder to a manager who has the authority to negotiate with you. If you are able to buy your S80 cheap enough, you could avoid any mileage penalty and sell it for what you paid for it, or perhaps even a profit.
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I've figured the Capitalized cost for the GX470 to be 49,200 without the navigation system. My calculations give me a monthly payment of roughly $690 for 48 months. Is this accurate and how much will the tax in IL bring this number up per month? Is there anything else that I'm not thinking about that will affect this number? Thanks again for your assistance.
The money factor is the effective annual interest divided by 24 - not 12 as one might think, to get the monthly finance charge "interest rate". ( i.e. 6% year is a money factor of .0025 ).
The reason why its 24, not 12, is that you pay finance charge on the average amount financed. They compute the average by adding the cap cost to the residual and dividing by 2.
So in math terms:
average amount borrowed x monthly interest =
( cap cost + residual ) annual interest
----------------------- x ------------------- =
2 x 12
( cap cost + residual ) x annual interest
------------------------------------------ =
24
( cap cost + residual ) x money factor =
The monthly finance charge.
The monthly finance charge is added to monthly depreciation to get pre tax lease payment. The monthly depreciation is easier. It is ( cap cost - residual ) / leaseterm
There is your pre-tax lease payment.
According to the most recent Mercedes-Benz Credit Corp. lease program that I have seen, if you were to lease a 2003 Mercedes-Benz E320 Sedan this month for 3 years with 10,000 miles per their base factor and residual should be .00285 and a solid 70%.
Next, if you were to lease a 2003 Jaguar S-Type V6 (Non-Sport) through Jaguar Credit this month for 3 years with 10,000 miles per, their base factor and residual value should be .00202 and 56%.
Last but not least, we have the Lincoln LS. I have not seen the lease program for the 2003 LS yet. I believe that this car had a late 2003 model year introduction because of some sort of redesign. Ford does still have a lease program on the 2002 LS. Would you be interested in those numbers instead?
Jaguar definitely has some strong incentives out there right now. If you feel as though you would enjoy driving a new S-Type and can afford the payment I see no reason not to negotiate a good deal and pull the trigger on one.
Car_man
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Car_man
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The MSRP of the GX is 49,275 with out Navi. The selling price would be the same since the dealers have a 2 month wait list on the car and aren't moving off MSRP. I'm looking to lease for 48 months with 12K per.
My tax question was basically, are you taxed the same percentage on the full sale price of the vehicle as you are when you buy it, or are you only taxed on the % of the car that you use? Do you pay interest on the tax if it's added into the payment? Say the tax is 6.5%, how would it be figured into the numbers in the above example?
Looking to potentially lease a vehicle by the end of the month. What do you have for MF, Residuals on the 325xi, x-type 2.5, a4 3.0 quattro, pilot EX-L and wrx wagon for 36 or 39 months and 12,000 miles per year? I would want the 5sp on all except the pilot. I live in CT if that makes a difference.
Thanks for your help.
I'm now a high-mileage driver, and am contemplating different finance scenarios for a BMW 330xi, X5 Manual, or Audi 2.7t Manual.
Aside from the residual/MF questions, my big question is: Is the cost for extra miles (@.15/per) negotiable? If so, how low can they go??
Thanks!!
Dan
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I'm looking at getting a loaded BMW 330xi. The car runs a 60% residual for 36 months, and with multiple security deposits I can get the money down to around 1.5%
So ... I'm thinking that I should lease @ 15k miles a year, even though I know I'll probably buy the thing at the end of the lease since the note is practically 'interest free'.
If for some reason I decide not to purchase it, of course I can pay the mileage penalty and turn it in.
Make sense?
Dan
Is the 0.00135 rate you quoted above valid for the 330xi as well as the 330i??? I also assume you can further buy down the rate with extra security deposits. If so, what sort of residual on 36/12000 is there? Seems like it might be less expensive than the 325xi.
Thanks for all your help.
If you know you are going to exceed the lease mileage, you are tying your hands even further by leasing.
Do the math and see if the total interest paid on the lease/purchase option is actually less than making a big down payment and financing the rest. Doesn't BMW have some support for the loan rates as well that mimic what they did on the leases?
Thanks,
HiC
Car_man
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Happy Holidays,
Car_man
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Would you please advise the MF and residual for an Audi A6 3.0 Avant, 3yr with 15k mi/year in Pennsylvania? Any other lease cash or incentives for this wagon? Thanks!