Lease Questions - Ask Here

CarMan@Edmunds · January 2003

Hello jburnette. It is good to see that you are already aware of the fact that leased vehicles' purchase prices are often negotiable. In order to get an idea of what you should be able to realistically expect to purchase your Accord for at the end of your term, you may want to hop on over to the Real World Trade-In Values Discussion over on the Smart Shoppers Message Board. One of our most knowledgeable community members, Terry, is often kind enough to share his thoughts on the what the appropriate purchase prices should be for leased vehicles at the end of their terms.

Car_man
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gperr · January 2003

Repost:
Residual and MF for 2003 Infiniti G35 Sedan (leather), 36, 39 and 42 months, 12K/year.
2003 Nissan Maxima GLE, 36 months 12K/year
2003 Acura TL (non-nav/non-S type). 36, 39, 42, 48 months 12K/year.

Thanks a million.

Gregg

CarMan@Edmunds · January 2003

Hey Gregg. Thanks for checking back with me. Unfortunately I have not seen any info on any of those manufacturers' lease programs yet. It will probably be a few more days before I do. Talk to you soon.

Car_man
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jagzbimmer · January 2003

Thanks Car_Man.

I do have one question. Your response indicates that the revised money factor will be .0001? Did you mean .001?

The factor I was quoted after the 5 security deposits was .00095 (based on December's numbers b/c I ordered the car on 12/30/02; Dec m/f was .00135, and with 5 sec deps came down to .00095 (first deposit does nothing to the money factor)). I am coming up with a final payment of around $435 (including 6% tax), while they are quoting me $455 (including 6% tax).

Here are all of the details again:
2003 BMW 330xi
MSRP: $38,320
Cap: $37,520
39 months
10,000 miles per year
No money down ($2500 in refundable securities)

My main concern was the $20 difference because, over 39 months, this comes to $780, which is just about the total of my remaining lease payments that they claim to be 'paying' for me.

Bottom line is I should be paying $435, not $455. I called the dealer and told them this and I am waiting for a reply. I will be faxing my lease calculation to them this evening.

Are my calculations correct? Also, was I right about the money factor thing (.001 vs .0001)?

Thanks again for all of your help!

CarMan@Edmunds · January 2003

Oops, one too many zeros. Yes the new lease money factor should be .00100. Thanks for catching that, jagzbimmer. It's good to see that you qualify to use December's lease program for this car because as you can see their money factors went up in January. OK, using the revised numbers that you provided me with, I come up with a zero down, pre-tax monthly lease payment of around $411, so I can see why you take exception with the payment that the dealership quoted you. Perhaps there is some difference in how you and they are calculating the tax on your vehicle. Either way, I suggest that you discuss this matter with them.

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jagzbimmer · January 2003

Thanks Car_Man.

I was a little nervous for a while when I saw that .0001!!

Talked to the dealership yesterday. Because they are making the remaining payments on my current lease, they were marking the money factor up to .00130. However, when I told them I was not happy with this, they agreed to bring the factor down to .00100 (my original quote, with 5 multiple secs, was .00095). The final payment I was quoted (and am now happy with) is $440.62 for 39 months, 10k per year. When I ran the numbers, I came up with $441.

So, to sum up, I am now convinced I am getting a decent deal, especially when I took a look at the Jan programs BMW has. No way I can get this type of vehicle for $440/mo. any other time of the year but December.

Again, thanks for all of your help Car_Man!

CarMan@Edmunds · January 2003

That's fantastic news, jagzbimmer. Good job at sleuthing out the fact that they were marking BMW FS' base lease money factor up in order to make a little additional profit on your deal. You definitely saved yourself some money by knowing what BMW's base program was. You also were fortunate that you finalized your deal prior to the end of their aggressive December program. It sounds to me as though you have done a great job negotiating this deal. Enjoy your new car!

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borg1of2 · January 2003

So, I have a question for the group, and this may belong on another board, but here goes. I have read by several posters that they were able to negotiate the deal, money factor, residual, etc. and then not take delivery. In my car buying experience I seem to have a hard time walking out or getting the best deal and then saying I'll come back tomorrow or next week to take delivery.

What methods are used to get the best deal and then walk out to pick it up later?

icdchess · January 2003

My experience is that you should do ALL of your negotiating over the phone. The hardest part is convincing the salesperson that you are a serious buyer. Once you do that, they should tell you what you want over the phone. It keeps you out of the lion's den, and you can much more easily hang-up because they can not get a deal without your signature. So they have to fax you the forms anyway. Once you hang up, you can analyse the numbers, come here, ask Car_Man (the most helpful guy on the Internet, in my opinion) and make a good, informed decision for yourself. Steve

hicaira · January 2003

Hi car man: Would you know the MF and residual for the Saab 9-3 Vector? (36 mo, 15k/yr). Depreciation is not normally a friend of Saabs so I wonder if that will be a deal killer.

Thanks,

HiC

CarMan@Edmunds · January 2003

Hey HiC. Has the 2003 Saab 9-3 Vector gone on sale yet? I ask because curiously Saab did not publish any lease numbers for this car in their January program which came out last week. The only 9-3 models that they published numbers for were the 9-3 Convertible SE and the 9-3 Linear Sedan.

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hicaira · January 2003

Yeah, it looks like it is not out yet. Their web site says yes, but no one has seen one yet. Do you have the numbers for the Linear (5 speed manual)?

Thanks,

HiC

mwertheim · January 2003

Hi Car_Man - I've looked back at your earlier post on the 36 month lease MF and residual. Can you let me know what the 39,42, and 48 month are(assuming BMW FS has 39 and 42 month programs). Thanks! You deliver an awesome service saving people a ton of money.

icdchess · January 2003

Hi Car_Man...
Any luck yet on the Highlander residuals?
Steve

chrish11 · January 2003

Re-post from a few days ago:

Hi Car Man,

Would you please advise the MF & residual for 3 yr/ 15k mi/year in Pennsylvania for an Audi A6 Avant and a Saab 9-5 wagon in Linear/Arc/Aero?

Thanks!

gqcal · January 2003

CarMan:

Can you please give me the residual and money factors on the 2003 Jeep Liberty 2WD 3.7 6cyl 4A with 4 wheel anti-lock,6 CD, sunroof and security
using 15 miles for lease? Also, what is the change if I switch to a Sport? Thanks. Oh, let me add I'm in Southern California and am planning a 39 mo. lease
Gavin

dealmkrjjd · January 2003

Car_man:

That lease deal of under $300/month seems very inticing so could you give me the #'s for a 2003 GC Overland on 24 & 36 months with 15k miles per year for Chicago? Thanks Again.

troyy2k · January 2003

I have heard that Nissan has adjusted their lease program on the Murano this past week, and that it is now a much more attractive deal than the lease figures you described for December. CarMan, could you check to see what the lease figures are for a 36 or 39 month lease (12k/year)? I would like to know if they are much improved over last month's rates. Thanks!

jxlxr · January 2003

I just came back from trying to make a deal on a Murano. What I got for 39 months and 12K miles is .55 residual and .00231 MF. I am not sure how better this is than last month. The residual and MF they quoted me on a bank lease, not NMAC, for 48 months was .46 and .00157. If you find diffent let me know. I'm still working on gettig the cap cost down.

gene1980 · January 2003

Car Man,

Thanks for the wonderful service you provide. Can you give me the money factors and residuals for Mercedes E and S class vehicles for 36 and 48 periods?

Thanks.

CarMan@Edmunds · January 2003

I kind of thought so, HiC. Here is the info on the Linear that you requested. If you were to lease a 2003 Saab 9-3 Linear Sedan through Saab Financial Services for 3 years with 15,000 miles per, their base lease money factor and residual value should be .00105 and 52%, respectively. In addition to this attractive lease program, Saab is also providing $1,000 dealer cash on this model.

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CarMan@Edmunds · January 2003

I am glad that you find this section of the Town Hall so helpful, mwertheim. Here is the info for the other terms. If you were to lease a 2003 BMW 530i through BMW Financial Services for 42 months with 15,000 miles per year, their base lease money factor and residual value should be .00150 and 52%, respectively. The numbers for an otherwise identical 48 month lease should be .00280 and 44%.

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CarMan@Edmunds · January 2003

Hi Steve. Unfortunately I have not seen Toyota Financial Services latest residual values yet. The reason why they are relatively tough to come by is that all Toyota dealers have computer systems that tell them the exact residual values, dollar wise, for every vehicle that they have in stock. So there is little reason for them to keep the residual value percentage sheets that TFS publishes. I will eventually find them, but it is a more difficult task than either of us would like.

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CarMan@Edmunds · January 2003

Thanks for the reminder, chrish11. Here is the information that you are looking for. If you were to lease a 2003 Audi A6 Avant through Audi Financial Services this month for 3 years with 15,000 miles per, their base lease money factor and residual value should be .00075 and 51%, respectively.

If you were to lease a 2003 Saab 9-5 Linear Wagon through Saab Financial Services Corp. for 3 years with 15,000 miles per, their base lease money factor and residual value should be .00014 and 46%, respectively. The numbers for an otherwise identical lease of the 2003 Saab 9-5 Aero Wagon should be .00037 and 51% and of the 9-5 Arc Wagon should be .00028 and 48%. Saab is also providing lease cash on these wagons that may be used to reduce their capitalized costs. The exact amounts of this cash are $1,000 on the 2003 9-5 Arc Wagon and $2,000 on the 9-5 Linear Wagon.

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CarMan@Edmunds · January 2003

Hi Gavin. DaimlerChrysler's lease program varies by region. I have not seen their lease program for California or Chicago yet. I will investigate these two programs this afternoon and post what I have been able to find out about them tonight. Talk to you soon.

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CarMan@Edmunds · January 2003

Hey troyy2k. Yes, Nissan did improve their lease program on the Murano for the month of January, but their change wasn't that dramatic. If you were to lease a 2003 Nissan Murano through Nissan Motor Acceptance Corp. this month for 3 years with 12,000 miles per, their base lease money factor and residual value should be .00231 and 56% for the SE, 55% for the SL 2WD, and 56% for the SL AWD. Their 39 month money factor should be exactly the same, but their residual values would fall one percent.

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CarMan@Edmunds · January 2003

You're welcome, gene1980. I am glad that you find the advice and information that I dispense so helpful. Interestingly enough Mercedes-Benz continued their December lease program through today. I should be able to find out what their January program is like at some point tomorrow. In order for me to tell you exactly what their money factors and residual values should be like, I am going to need you to tell me exactly what models you are interested in, i.e. E320 Sedan, etc... Once I have that additional information I should be able to help you out. Talk to you soon.

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gene1980 · January 2003

Car_Man,

I was looking at an E320 sedan or an S430 sedan with 12k/year on a 36, 42 or 48 month lease. I'm in Virginia if you need that. Also, could you provide the same for a Lexus LS430? I think they do a 39 month lease.

Thanks in advance!

borg1of2 · January 2003

Car_Man,

I was curious if you see better lease info on the Lexus GX? In December for a 15K 48 Mo. Lease, it was .00230 and 49% residual. The money factor is good, but the residual I was hoping would improve. Any update would be appreciated. Thanks!!

bfriedman · January 2003

could you please provide me with the residual and money factors for 36 mos/ 12000mi and 39 mos/ 12000 mi leases

thanks in advance

CarMan@Edmunds · January 2003

OK, Gavin, I was able to find the information that you are looking for. If you were to lease a 2003 Jeep Liberty Limited 2WD through Chrysler Financial for 39 months with 15,000 miles per year in their Los Angeles region, their base lease money factor and residual value should be .00224 and 45%, respectively. The numbers for an otherwise identical lease of a 2003 Jeep Liberty Sport 2WD should currently be .00214 and 45%.

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dal71 · January 2003

Hi Car Man,

Last week you asked me to repost this message. I am curious about the MF and residual for a 3.0, quattro A4 sedan in NY for both 36 and 48 months, both at 10,000 and 12,000 miles.

Also, I am wondering how taxes and fees are handled under a lease if they are not paid up front. Presumably I get charged interest on these. Do I add them them to both the sale price of the car and the residual price and then figure payments in the usual way?

Thanks for your help!

CarMan@Edmunds · January 2003

I was able to find out the information that you are looking for as well, dealmkrjjd. If you were to lease a 2003 Jeep Grand Cherokee Overland through Chrysler Financial for 2 years with 15,000 miles per in their Chicago region this month, their base lease money factor and residual value should be .00152 and 51%, respectively. The numbers for an otherwise identical 3 year lease of this truck should be .00168 and 43%.

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CarMan@Edmunds · January 2003

Thanks for the additional information, gene1980. Beginning tomorrow, if you were to lease a 2003 Mercedes-Benz E320 Sedan through Mercedes-Benz Credit Corp. for 36 month and 42 months, their base lease money factors should all be .00285. Their base 48 month money factor should be .00300. Their 12,000 miles per residual values should be 67% for 36 months, 63% for 42 months, and 59% for 48 months. The 2003 S430 would have the exact same base lease money factors, but its residual values should be 59% for 36 months, 55% for 42 months, and 51% for 48 months.

As far as the 2003 Lexus LS 430 goes, if you were to lease one (non-Navigation, Non-Custom Luxury, Non-Ultra Luxury) through Lexus Financial Services this month for 39 months with 12,000 miles per year, their base lease money factor and residual value should be .00200 and 54%, respectively.

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CarMan@Edmunds · January 2003

Hey borg1of2. Interestingly enough, Lexus did include the new GX 470 in its special lease program for the month of January. However, their residual values for this truck did not get any better. Generally speaking, vehicles' residual values tend to fall, not get better, as the model year progresses. If you were to lease a 2003 Lexus GX 470 without the Navigation and Rear Entertainment Systems, through Lexus Financial Services this month for 4 years with 15,000 miles per, their base lease money factor and residual value should be .00200 and 49%, respectively.

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CarMan@Edmunds · January 2003

Hello bfriedman. I would be more than happy to help you out. However in order for me to provide you with accurate residual value information for the Jetta that you are interested in, I am going to need you to tell me the exact trim level that you are interested in, i.e. Jetta GL 2.0L Sedan, Jetta GL 1.9 TDI Wagon, etc... Once I have this information I should be able to help you out. Talk to you soon.

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bfriedman · January 2003

gls and gl 1.8T sedans

thanks in advance

mfullmer · January 2003

Ok, so I haven't been able to read all of the posts of the last few weeks. Could you please help?

I'm working on a lease on a 2003 Chevrolet Tahoe LT 2WD. Zip code: 30345

My credit score is 763 and I have two other leases with GMAC (current)

What can I expect for a residual on a 24 month lease. What is reasonable for a money factor?

Thanks!

mfullmer · January 2003

I've seen many posts about "lease incentives". Why would these be different than regular incentives. For example: The vehicle I am about to lease (Chevrolet Tahoe) has special financing or $2,000.00 incentive. I get that incentive whether I lease, pay cash, or use my own financing.

Am I missing something?

kellgri22 · January 2003

Car_man,
Looking for the residual value and money factor for the new 2003 VW beetle convertible 12,000 miles/yr. for 60 months, and 48 mos.
Greatly appreciated
I'm in New York
Kelly

caramo · January 2003

Generally, GM treats incentive lease rates like the incentive financing rates, i.e. if you lease through GMAC, you do not get the rebate.

Tahoe 24 month residual is running 61% on the west coast, not sure about where you are. There are likely different lease incentives out here as well.

mfullmer · January 2003

So I take from that, since they have no incentive lease rates right now, if I lease at the standard rate, I get the rebate cash right?

I've never had a problem before but I just had the question. I've always taken the incentive as I was not using the special financing rates.

gperr · January 2003

Car-Man

Have you seen the rates for January for Acura TL (non-nav, non-s type)
36 months 12K miles
Res/MF and Bank Fee

and Maxima GLE

36, 39, 42, 48 mos 12K/year miles
Res/MF and bank fee

Thanks
Gregg
.ps I picked up that G35 Sedan- I am quite happy!!!

massappeal106 · January 2003

Car_man:

Thanks again for all your help. I'm looking for lease info for the following in zip 84105:

'03 A4 1.8 quatro with premium. 36 and 39 months with 15k/year.

'03 Passat GLS with leather. 36 and 39 months with 15k/year.

thanks,

CarMan@Edmunds · January 2003

Thanks for the additional information, bfriedman. If you were to lease a 2003 Volkswagen Jetta GLS 1.8T Sedan or GL 1.8T Sedan through Volkswagen Credit, their base 36 month lease money factor should be .00140 and their base 39 month factor should be .00175. The 12,000 miles per year residual values for both the 2003 Jetta 1.8T GLS Sedan and the GL 1.8T sedan should be 58% and 56%, respectively.

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CarMan@Edmunds · January 2003

Hi mfullmer. Don't worry about being able to scroll back through all of the previously posted messages, I am more than happy to help you out. Lease rate wise, GMAC's lease program is actually fairly simple. They offer one of two lease interest rates on the majority of their vehicles, 3.5% or 6.5%. Most larger trucks, like the 2003 Chevrolet Tahoe will have the 6.5% rate, which is the case here. Their supported 2 year 12,000 miles per residual value for this truck should be 62%.

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CarMan@Edmunds · January 2003

Mfullmer, just like the $2,000 consumer cash incentive that General Motors is providing on the 2003 Chevrolet Tahoe can not be combined with their special financing program, it also may not be combined with GMAC's special lease program. Certain models do have what is known as lease cash that may be used in conjunction with GMAC's special lease rates and residual values, but unfortunately the 2003 Chevrolet Tahoe is not one of these models.

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CarMan@Edmunds · January 2003

Hi Kelly. Let me begin by saying that I personally feel as though 60 months is way too long to lease a vehicle for. There are several reasons why I say this. One is that five years years is a long time to be committed to one particular vehicle. If your lifestyle changes during the next 60 months, you could end up way over your allotted mileage limit and owe a ton of money for excess mileage charges at lease end. Furthermore, the longer one leases a vehicle through Volkswagen Credit, the higher the interest rate they will be charged. You will end up paying a lot more interest over the length of a 5 year lease than you would over the length of a 36 or 39 month lease.

Having said this, here is the information that you are looking for. If you were to lease a 2003 Volkswagen Beetle Convertible GLS 1.8T, neat car by the way, through Volkswagen Credit this month for 48 months with 12,000 miles per year, their base lease money factor and residual value should be .00240 and 49%, respectively. The numbers for an otherwise identical 60 month lease of this car should be .00290 and 43%.

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delrick · January 2003

Hi Carman

Can you provide cost factors for leasing a 2003 MDX?

Interested in both a 36 and 48 month lease.

Also, impact for mileage, 12, 15, 18K

Thanks

dal71 · January 2003

Hi Car Man,

I posted this message yesterday, but as it appeared in the middle of a long sequence of responses from you, I was afraid that you might not have seen it. It is copied below:

------------------------------------------------
Hi Car Man,

Last week you asked me to repost this message. I am curious about the MF and residual for a 3.0, quattro A4 sedan in NY for both 36 and 48 months, both at 10,000 and 12,000 miles.

Also, I am wondering how taxes and fees are handled under a lease if they are not paid up front. Presumably I get charged interest on these. Do I add them them to both the sale price of the car and the residual price and then figure payments in the usual way?

Thanks for your help!

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