Did you recently take on (or consider) a loan of 84 months or longer on a car purchase?
A reporter would like to speak with you about your experience; please reach out to PR@Edmunds.com by 7/22 for details.
Options

Lease Questions - Ask Here

1…910121415…468

Comments

  • rroyce10rroyce10 Member Posts: 9,332
    ....Food for thought, If you are going to trade it in...and I will use today's numbers...and It's a GS-T with auto ..and I will use - let's say 40K...tires are like new..and it needs - O - the Vehicle is worth approx $11,000 to $12,000 -- real money -- , to a dealer -- that's why I just recommended just trying to sell it yourself ( you might be able to retreive $13,000-$14,000 )..which shouldn't take too long...What's most important, is what your pay off is today.....

    I hope this helps
  • rroyce10rroyce10 Member Posts: 9,332
    You are quite welcome....Maybe in 2 years we can talk you into a Mercedes..l..o..l..

    Good luck..

    Terry.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Expedition2, sorry for the confusion. I meant that you got a lower monthly lease payment through the bank that you are leasing with than you would have been able to get if you had leased through GMAC.

    Car_Man
    Host
    Smart Shoppers / FWI Message Boards
  • fieldcrestfieldcrest Member Posts: 1
    Has anyone made a deal on car and at lease signing found that an additional non negotiated charge had been added. I recently leased a 2001 DeVille DHS and thought the deal was all set. When I went to sign for the car I found that an additional $500 had been added to the agreed upon residual. The only explanation was that GM was protecting it's dealers.
  • atomtanatomtan Member Posts: 4
    I have 24 hours left on leasing a 1998 626lx 4 cyl.manual trans and am considering purchasing it.The residual is 10.9k on a car which whole sale ranges from 7.7k to 9.2k. Mazda American credit will not budge on the residual price. How are 626's doing at the autoauctions? Should I extend my lease @ 262.00 a month for 6 mo.'s banking on m.a.c. following an industrywide trend on residual reductions and possibly negotiating down the road ? Or should I bite the bullet and purchase it for 10.9. I like the car and have taken great care of it. I recently put new tires on and have the front brake pads replaced.Help me decide?
  • rroyce10rroyce10 Member Posts: 9,332
    Hmmmm, Well this is really your desicion.....but, here is a little food for thought ( miles...What's the mileage..? )

    But, I got my GPS out and it looks like...40,000 miles...One major problem....it's a stick ( no help here )...does it have a roof and wheels..? So, Let's just say.....It's a LX with the wheels and slider ...and the upgrade CD ....

    Mazda's are a little week in the market right now.....So, you are looking at the $6,500 to $7,500 figure.."maybe" , if it has all the stuff....and it looks new and needs -o-
    That darn 5 speed is painful......

    Maybe this will help...

    Terry.
  • atomtanatomtan Member Posts: 4
    Thanks for the reply Terry, It has 42k miles,stock wheels and no slider,stock cd and no upgrades, I like driving the 5 speed and the gas mileage is great,28 city and 37 hi-way. I spoke with a rep. from m.a.c. and they stated if it sells at auction for ? they,ll get the residual difference up to 10.9k. Do they have residual insurance? Meaning they have no incentive to negotiate? Or if I extend the lease for 6 mos. hoping that a glut of 626's flood the market and possibly give Mazda American Credit incentive to negotiate the purchase. I want to buy the car but not for 10.9k. I even offered 9.9 k but they said no dice sucker.....Bob
  • rroyce10rroyce10 Member Posts: 9,332
    ......As a rule, most lease co's will negotiate...and I know Mazda will, But perhaps the scenario here is, you may not have the right "Corporate Cowboy" on the line.....You really need to be speaking with a Regional or District Lease Mgr from Mazda Credit..

    The program that he is speaking about...'may' be in force...I know, there was a lot of discussion about it after the Infiniti
    fiasco's.....

    Try to re negotiate the numbers.....I'm at the auctions all the time..as a matter of fact, I will be at a huge auction in PA wednesday....but the only point
    I'm trying to make is --- If you can't buy that vehicle for under $9,000 I would pass.....Your offer of $9,900 was "more than generous".....

    So, you might be better off 'if' they won't meet your #'s.....Is to buy a 1999 -- for a few bucks more .....You know, less miles, warranty, V6, roof..etc, ...It's just that the Mazda products are little cold right now....when they send it to the auction -- those $6,000 - $7,000 figures I gave you...will become very real....Just remember, buy what you like.........

    I hope this helps

    Terry.
  • force98force98 Member Posts: 81
    Car Man,

    My wife leased a '99 BMW 740iL for 36 months. We have one year left on the lease, and she wants to buy the car at lease end. She loves the car, it's show room condition, and only has 13K miles on it. The residual is $43K. I spoke with the salesman who sold us the car (and our last 2 Bimmers), and he said to speak with him if we want to buy it, as he can work us a good deal. Apparently BMWFS won't negotiate the residual, but they also do not send cars to auction that are turned back in at lease end--the dealership buys them at LOW NADA, then sells them as used or certified. My salesman said we can turn it back in, he will have it certified, then sell it right back to us for $1K over what the dealership pays for it. This could amount to several thousand dollars in saving vs buying it out right, plus it would be a certified vehicle, which would extend the warranty. I have no reason to distrust the salesman as we have known him for years and have an excellent relationship. Your thoughts? Thanks!
  • muzhikmuzhik Member Posts: 18
    Car Man,

    It's me again. Thank you for answering my questions. By the way, do you get paid for this?

    I have more questions on those leases:

    1) What is the luxury tax nowadays? When I bought my first bimmer a while ago, it was 7% on everything over $36K...

    2) Is residual any better for ML430? What is the highest-residual MB in the lineup?

    3) How will the residuals change for 48mo/15K/year leases for both vehicles?

    4) a little off-topic: when will the 2002 X5 come out? From what I remember, the 2001 has been around for almost a year now...

    Thanks in advance!
  • atomtanatomtan Member Posts: 4
    rroyce thanks for your'e input, I spoke with the mgr.of vehicle liquidation for mazda american credit and they are standing firm on thier no negotiation policy. They will not deal with me at all so I will turn the 626lx which I cared for so well for the past 3 years and look into other vehicles. I asked to speak to a regional or district lease mgr.and they stated no such person exists within there business. I will look into extending the lease one month and concentrate on purchasing another vehicle or I may try and track this car to an auction in Ga. and try to purchase it thier. I'm kinda bummed because I wanted to purchase it but not for 10.9 k. thanks for input and I really enjoy browsing thru edmunds pages..I'm hooked!!!
  • michaellnomichaellno Member Posts: 4,120
    I noticed the post above about the new 2002 4x2 Explorer XLT. Are the residuals any different for 4x4 models? I've got a '99 Expedition that is coming off lease in November. I'm thinking of trading it in this summer for a new 4x4 Explorer, rolling the difference in payments (approx $500/mo) and mileage charges into the new lease.

    Any thoughts?
  • mmcbride1mmcbride1 Member Posts: 861
    Do you have the new lease deals on Audi A4 1.8T Quattros yet? I know the old one expired on March 6.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Force98, you may want to try calling your bank directly prior to going ahead with this deal just to make sure that they won't be willing to work with you on the lease-end purchase price. If not, and you are able to save money and get the added benefit of a Certified Pre-Owned extended warranty by purchasing through a dealership as your salesperson suggested, then this sounds like an excellent way to go.

    Car_Man
    Host
    Smart Shoppers / FWI Message Boards
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi again muzhik. Yes I am an independent contractor who is employed by Edmunds.com to work as a host/expert in the Smart Shoppers and Finance, Warranty, and Insurance Conferences. In answer to your question about luxury tax, for the year 2000, a 5 percent tax was levied on the portion of your vehicle that is over $38,000. I believe that this percentage is to be lowered by 1% annually until 2003 when it is completely phased out. As a result, the luxury tax on automobiles for the year 2001 should be 4 percent.

    The residual values for the ML430 are actually slightly lower than those for the ML320. Although this will vary from time to time, at this point the recently redesigned C-Class seems to have the strongest residual values out of all of the cars in the Benz stable. If you were to lease a 2001 ML320 for 48 months with 15,000 miles per year, the residual value would fall to around 56% of its full MSRP.

    I am not rure of the exact timetable for the introduction of the 2002 X5. I think that you would have better luck finding an answer to that particular question over on the SUV Message Board.

    Car_Man
    Host
    Smart Shoppers / FWI Message Boards
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Michaell, yes the residual values for a 4WD 2002 Explorer XLT would be one percent higher than for the 2WD model at this point. If you are thinking of getting out of your current lease several months early and rolling over your excess mileage charges and remaining payments into a lease of a 2002 Explorer, you better plan on having much higher monthly payments. Explorer residual values are significantly lower today than they were several years ago. So even if you were able to negotiate an identical deal to the one that you did back then in terms of price, your monthly payments would be higher. Furthermore, the redesigned Explorer will likely be more difficult to negotiate a thin deal on this summer than it was to negotiate on a 1999 Explorer back in 1998. When you take these two things into account and add in your remaining payments and excess mileage you are probably looking at a very expensive lease.

    Car_Man
    Host
    Smart Shoppers / FWI Message Boards
  • nighter50nighter50 Member Posts: 127
    Do you know the money factor (or interest rate) and residuals used by Toyota on 36 and 48 month leases of Sequoia SR5 4X4? How about the same for GMC's 36 and 48 month leases on Yukon SLT 4X4?

    Thanks in advanced!
  • rroyce10rroyce10 Member Posts: 9,332
    ......BMW does negotiate..residuals, and Yes.. they do go to the auctions......I just watched about 50 or 60 run through today, from lease end.....including Mercedes and all the rest..

    The best way for you to secure your best deal is to be in contact with BMW at lease end (not the dealer)...all the dealer does, is buy back the lease car at the auction....that low NADA stuff is exactly what it sounds like...Stuff

    I hope this helps

    Terry.
  • rroyce10rroyce10 Member Posts: 9,332
    ......Sorry you coudn't make your deal....but, in the long run....I think you will be happier

    I was at a huge auction today...and saw a ton of Mazda's run ..... and like I might of mentioned earlier, they are a little weak in the market now ---- 1999 626 ES's auto, 20k, leather,roof etc...are running around that $10,000 ish figure.....So, this may be a blessing in disgiuse....

    Good luck

    Terry.
  • jwilson1jwilson1 Member Posts: 956
    Car-Man, I'm still working on the 3.5 RL. Just yesterday I checked the Acura page and they now are advertising $3000 lease cash. How would that work on a real deal? What would a 3 yr., 12,000 mile arrangement look like? Does lease cash get deducted from the negotiated price, or from invoice, or from MSRP, or ....?

    Can "lease cash" ever be moved over to a purchase deal and become an incentive? (I'm betting the answer is no, but ...) If there's a chance, when I go to the dealer do I push for this or is it terribly unusual.

    Thanks for letting my ignorance show again!

    Take care.
    Joe W.
  • malikhmalikh Member Posts: 2
    I have a 1998 Toyota 4Runner Limited on a 36 month, 15K miles lease that expires in August. My monthly payments are $426. The sale price of the car was 34000 and the residual value is 22900.

    The car is in great condition and only has 30K miles on it.

    The retail price of this car in the market is 26000. How can I make money on this car by selling it to a third party (since I dont have the title)? Has anyone done this before?

    Thanks.
  • michaellnomichaellno Member Posts: 4,120
    car_man:

    thanks for the information. I was hoping to keep my payments at about the same level (or perhaps a little lower), but we'll have to wait and see. My wife's company has a deal where we can buy/lease any Ford product for 3% over invoice (through September), so that may work in our favor on a popular product like the new Explorer. I've priced an XLT 4x4 with all the options we want for about $30K (based on 3% over invoice).

    Are the residuals any higher or lower for the Mercury Mountaineer?

    BTW, my current vehicle is an Expedition. Was hoping to trade down in size (slightly).

    One more question, if you don't mind. The way I see it, the way to get the lowest monthly payments on a lease is to get a vehicle with a high residual (think Honda, Toyota, MBZ), combined with a generous money factor from the finance arm of the company. So, for the $30-35K I'm thinking of spending on my next SUV, I might want to look at vehicles like the Acura MD-X and Toyota Sequoia, since they have (I would presume) higher residuals than Fords? Granted, there won't be as much negotiating room based on the popularity, but the residuals would make up for that?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi nighter50. Toyota is not presently providing any sort of lease money factor support on the 2001 Sequoia. So, if you decide to lease one through Toyota Motor Credit Corporation, you will have to use their standard lease money factors. The last that I heard, this was .00360 for any length lease for consumers with good credit. I believe that Toyota recently revised some of the residual values for its vehicles, so you may want to check back with me late next week to find out the exact residuals for this truck. To the best of my knowledge, I think that the 3 and 4 year residuals for a 2001 Sequoia should be around 69% and 61% respectively for leases with 15,000 miles per year.

    General Motors is not currently providing any sort of lease rate support on the 2001 GMC Yukon, either. So if you decide to lease this truck through GMAC, you will have to use their standard lease rates as well. The last that I heard, the standard lease rate for GMAC's best credit tier was 8.99%. Given the Fed's recent actions, I would not be surprised if this rate was recently lowered, or if it is lowered in the not so distant future. The 36 and 48 month lease residual values for a 2001 GMC Yukon SLT 4X4 are currently 52% and 46% respectively with 15,000 miles per year.

    Car_Man
    Host
    Smart Shoppers / FWI Message Boards
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Jwilson1, the $3,000 Dealer Cash that Acura currently has available on the 2001 RL would work just as if you made a $3,000 down payment (or a $3,000 higher down payment if you aren't doing a $0 down lease). As a result, if you are able to take full advantage of this Dealer Cash, you would subtract $3,000 from the capitalized cost that you are able to negotiate for your lease.

    True "Lease Cash" can not usually be applied to cash or finance transactions. However, I think that this $3,000 is really Dealer Cash that may be used in conjunction with Acura's lease program. If that is the case, then you would be able to take it into account if you were to purchase a 2001 RL, instead of leasing it.

    It certainly is not unusual for you to let the salesperson that you are working with know that you are aware that there is a cash incentive on the vehicle that you are interested in and to expect them to take it into account in your negotiations. Keep in mind though, that dealerships are free to do as they choose with Dealer Cash incentives. They are allowed to keep all of it for themselves, or give all of it to the consumer. By comparison shopping at a few different dealerships though, you should not have any problem finding one that will take the full Dealer Cash amount off of the price that you are able to negotiate.

    Car_Man
    Host
    Smart Shoppers / FWI Message Boards
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Malikh, at the end of your lease term you could exercise your purchase-option for your truck and then turn around and sell it privately. Prior to doing so, you need to be absolutely positive that you will actually be able to make a profit on the transaction. The last thing that you want to do is to go through all the trouble of purchasing your truck and selling it on your own and then take a loss. If you are not positive that you will make a profit, it would be best just to either purchase the truck and keep it for yourself or turn it in and walk away.

    Car_Man
    Host
    Smart Shoppers / FWI Message Boards
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Michaell, no the 2002 Mercury Mountaineer's residuals are not significantly different than those of the 2002 Explorer.

    You are absolutely correct in saying that the Acura MD-X and Toyota Sequoia would have significantly higher residual values than any Ford truck at this point. Unfortunately though, the popularity of these vehicles both makes it both difficult to negotiate a low price and eliminates the need for their manufacturers to provide substantial lease money factor support like is currently available on the Explorer. It is difficult to say which truck would be the least expensive to lease without working out leases for each one, but I certainly think that they monthly lease payments for the Toyota and Honda would be much closer to the payments for an Explorer than one might initially think.

    Car_Man
    Host
    Smart Shoppers / FWI Message Boards
  • rroyce10rroyce10 Member Posts: 9,332
    .......Selling a vehicle before lease end ...is done everyday...Most smart shoppers, don't mind a little time and effort...and perhaps a little Jingle to go with.

    Just make sure you get your ..Exact..pay-off -- from the leasing co. -- not the dealer...Sometimes this figure can be "much" different.

    When you feel comfortable to sell it --- just do all the basic service to your vehicle..spend a few dollars and make it look as new as possible -- A $125.00 detail can make all the difference in the world......

    Study the Ad's in the biggest newspaper in your area ...then price it little less than the highest price...and just make a good ad..a 4 liner..something that will catch somebody's eye.

    If you can get close to the price you want...(don't get to greedy..a buyer in the hand, is worth a lot more than one that want's to pay more ..but want's to come back another day )...Get the whole check in a certified or cashiers .....go to the dealer and pay that puppy off...and by now you should have already have a new vehicle in the wings....and if you do....this simple operation can all be done in 1 day..weather permitting..l..o..l...

    Does this take a little more time and effort...of course...but, you might pick up $500.00 or ..as in my brothers position last month, he picked up $2,800.......so you tell me.....

    I hope this helps..

    Terry.
  • nighter50nighter50 Member Posts: 127
    You are the greatest! Thanks so much for the information.

    This site is the bomb for auto/truck information. I am getting addicted!

    Ciao for now.
  • jones1272jones1272 Member Posts: 3
    I have a 1999 Explorer Sport with a lease end this May. Is negotiation possible or does the leasing company/dealer typically stick to the lease end purchase price? (This is my first lease.)

    Thanks!
  • jgilhulyjgilhuly Member Posts: 2
    We have only 2 months left on our Nissan lease and have already purchased our next car from a private party. Our lease payments are current, we are under on miles, and the car is in exceptional shape. Since the Nissan is now just taking up space, I dug up our contract and looked into an early return. Everyone we know, and Nissan customer service as well, insists we'd have to make the last 2 payments plus costs no matter when we terminate, but that's not even close to what our lease contract says. The contract indicates (and my check of CA state law supports) that a customer in good standing who terminates with notice owes only whatever remains of the difference, if any, between the unpaid adjusted cap cost and the wholesale value at the time of termination. In my calculations, I come out ahead, and would only owe the disposition fee. Nissan gave me some line about how in California you can return anytime you want but the car then goes into auction and the lessee owes the difference if the car sells for less than the residual!!! I don't believe this for a minute. And when I Tell Nissan that none of this is in my contract they get really irritated and tell me that regardless of what the contract says, I'd be better off just making the last 2 payments. This is now a matter of principal with me---I'm fully prepared to make the payments, I'm just tired of people telling me to ignore my contract and just pay!!! Any ideas?? Thanks, John G.
  • suvbuyer4suvbuyer4 Member Posts: 10
    What full size SUVs can I get the best lease deals? I am considering Yukon SLT/Tahoe LT, Expedition EB and Sequoia Limited. It seems I can get near invoice for Chevy/GMC & Ford, but not much off sticker for Toyota. Just wondering with residuals and money factors which one I should be able to get lowest monthly payment. Looking at a 36 month lease with 15k miles. Thanks in advance.
  • rroyce10rroyce10 Member Posts: 9,332
    ......If you are down to your last 2 months of the contract.....there should be no problem at all with returning the vehicle.....I have worked with NMAC many times.....someone will look at the vehicle ..check for any "real damage"..to the vehicle ...and finish and sign the lease return paper work ( Make sure you get the copy..! ) ...I'm not that familiar with your area..there might a singular disposition fee ..perhaps.. -- but anything else ....should release you from your bonds..l..o..l..

    I hope this helps

    Terry.
  • kevino5kevino5 Member Posts: 5
    I am considering leasing (36 mo) a new Volvo V70 wagon, and purchasing it through the European delivery deal. This allows you to buy the car at way under invoice, and they give you a free round trip ticket and hotel in Sweden to pick it up at the factory. My questions are:
    -What is current money factor and residuals through Volvo for the V70 2.4 (non turbo) auto, cloth, w/traction control?
    -Is there any advantage to using a private leasing company?
    -Although I buy car at a discount through europe delivery deal, I was told residuals are based on the MSRP, an advantage for me. Is this true?

    Also the order and build time on the car is 14 weeks, plus we plan to be there 2 weeks then 4 more weeks deliverly time to our US dealership. Due to this time frame I will be without a car for 2 months because my current lease on a 98 Camry is ending. Will leasing companys ever extend a lease at same terms for an additional 4 or 6 months?

    Finally, if we like the Volvo wagon and want to buy at lease end, is there anything I should try to get in the lease contract now that could help me later if we decide to do that?
    Thanks in advance for all the great info!
    -Kevin in Tampa
  • jmwatjmwat Member Posts: 5
    I'm going tonight to look at leasing an '01 Silhouette GLS. Residual factor is 51%, money factor is .0023, 36 months / 12K miles. Is it unreasonable to expect the cap cost to be at dealer invoice? What about any rebates? Should I be able to get cap cost at invoice and then subtract any rebates?? Are there any rebates??

    Thanks!
  • jgilhulyjgilhuly Member Posts: 2
    Nissan has no problem with me returning our leased vehicle early---they just want payment for all the remaining months and they won't accept anything less. I mention sec. 14 of my lease which lays out a formula for calculating early term. costs, and they tell me they won't accept that and that I'm better off just paying for the unused months. They've refused repeated requests to give me the result of that calculation. At various times they've told me everything from not being able to read the contract terms on their screen to that story about auctioning the car. They say things like, "I know your contract doesn't say that, but that's just the way we do it..." The contract seems to indicate that if you've paid enough principal (cap. cost portion of the monthly payments) to bring your liability below the wholesale value you can pay disposition and walk away. That's perfectly logical to me because I'm not trying to rip off Nissan. They won't even tell me where my logic is wrong here! Anyway, we're going to return the car asap so we don't have to worry about a tree falling on it but we're extremely frustrated. If someone can prove me wrong I'd appreciate hearing about it.
  • malikhmalikh Member Posts: 2
    Thanks for your inputs. It was very helpful.

    Terry, the question I have for you is whether a buyer would be willing to pay a cashier's check to me for the whole sale price since I dont have the title of the car. Wouldnt they be hesitant to pay cash for a car that the owner doesnt even hold the title to?

    Did your brother sign a contract with the buyer?

    Malikh
  • nighter50nighter50 Member Posts: 127
    I would suggest you read the "How to Buy (and Sell) a Car" article in Edmunds Advice section. Some good info here. To answer your question, I think you typically would have the buyer make the cashier's check payable to whoever holds the title i.e., bank or finance co. if you still owe. You may go with the person to the bank or finance company to payoff and transfer title. Hope this helps.
  • nighter50nighter50 Member Posts: 127
    Does anyone have any lease numbers on Sequoia that they could share? I am intrigued by car_man's idea of residuals on Toyotas - 69% for 36 month lease makes the Sequoia seem affordable. Any info is much appreciated.
  • brose5brose5 Member Posts: 6
    Car Man:

    I have a Volvo S60 2.4T on order for delivery in late May. One thing: the order includes several free add-ons from an AOL promotion (metallic paint, 10 cd changer, and speakers, etc.). Would these items have any impact on the lease, e.g., affect the residual calculation? Or, does it just help when turning in the car at the end?

    Thanks
  • rroyce10rroyce10 Member Posts: 9,332
    .....I'm not sure, but perhaps I'm reading this incorrectly -- Are you currently speaking with Nissan Credit...or the dealership ?....I understand the Contract end..(I have seen about 200 of those..l..o..l.. )...If this is the answers from the Dealer --- I would be calling NMAC....

    I have seen a bunch of returns...sometimes as early as early as 6 to 8 months....If the leasing company get's "all" the payments due to complete the contract...plus any disposition etc,fee's ..etc - it's usually to their advantage to take the vehicle back early .....They have received all monies, dealer has ist option to purchase if so wanted or it goes to auction and they pick up more money than waiting ..let's say another 3 month's ......

    I hope this help's

    Terry.
  • km99cobrakm99cobra Member Posts: 46
    Back in Feb I decided to explore whether the Acura dealer would be willing to work out a deal on a CL-S because if I stay in the Honda family they'll waive the sec dep and make my first payment. My wife has a '98 Accord that has 2 payments to go and is way over on miles, so I wanted to see if they'd do something because my unfriendly Honda dealer won't. You gave feedback on their deal offer and said it was pretty good (42mo/15K/mo, $1600 total out of pocket, $400/mo payments). Well, here's the problem(s); Now they say the payment is up to $440 because the residual went from 59% in Feb to 53% now, and the money factor stayed at 0.00355 AND they "made a mistake" previously as all numbers are for 12K miles per year. To top it off, my perfect condition (albeit 40K miles) '98 Accord EX-V6 with spoiler/fog lights/gold pkg/moonroof visor that has a $16,300 residual is only worth $13,000 to them, so any early buyout is impossible (unless I eat the diff). It made me laugh because he knew his sister just bought a used '98 Accord EX-V6 (w/o all the stuff mine has on it, similiar miles) and he called her to find out what she paid - $17,000!!!

    I'm inclined to not deal with them at all, but he said if I was interested in a 2002 TL-S that will be coming in over the next month, he thinks the residual will jump back up. Do you have any figures on what the lease numbers will be on the 2002 TL-S? I believe your word rather than the dealer's at this point. Thanks for your help, again.
  • joe830joe830 Member Posts: 4
    We are wanting to lease a 2001 Maxima SE. We live in the state of NJ. We spoke to a dealer and he told us that he would lease us the car for $445/month includes tax and all doc fees with a $2000 down and a $500 rebate. The lease will be for 48/months and 15,000/miles per year. I believe the interest rate was 6 1/2%. Also, the residual value through Chase Man. bank is 41%. Is this a good deal or not? This is our 1st time leasing and we're not sure how to go about it. Appreciate any comments. Thank you.
  • moggsquadmoggsquad Member Posts: 3
    I am currently 33 months in to a 60 month lease on a 1998 Neon Expresso. When I went to lease my car in 98 I had negative equity on my trade in, but my down payment cancelled it out so I was pretty much at zero with my down payment. As a result I went with a 5 year lease instead of a 3 year lease to keep lower my payments a little. When asking the dealer if I could trade in my car at any time for a newer one the dealer I was told yes in a tone of voice that made it seem like it would be simple and sweet, but he failed to inform me there were penalties in doing so. ( Which helped lower my opinion of car dealers even more )

    So anyways my payments are $255 a month and Im looking to upgrade to a 3 year lease for a 2001 Neon R/T. I have almost $2000 for a downpayment and the $1000 rebate, but when I called for the payoff value of my car I was astonished to be told it was $11,000!
    Im only expecting to get $5700 on it as a trade in, about $1000 less than the total amount of payments I have left. So why is my payoff value so high? How am I to upgrade my car through another lease if im stuck in this one? Is the payoff value different if im trading my car in to a dealer? Can't the bank give me a break if im looking to get another lease through them on a new car? Any help and additional info would be greatly appreciated.

    Thanks alot.
  • rroyce10rroyce10 Member Posts: 9,332
    .......Well, don't be to astonished ....unfortunatly.....you are in a position, that a lot of folks get themselves into...

    Sometimes, a lease program just doesn't help the consumer......In this case ..you had a lot of negative equity going in.....and see, a lease can only "hold" so much ...that's why the big cash down...that money, just got you into the already inflated deal.....and taking a 60 month lease is kinda the kiss of death -so to speak-

    But, like anything in life....lot's of cash, can get someone out of just about anything ( just ask, Ray Lewis l.o.l. ).....

    Never lease a vehicle for more than 39 month's that's first and formost....and second, since your are looking at a Neon, you should be financing on this next deal....there nice little cars but ..they depreciate a ton...probably the best thing for you at this time....is to drive the old one till lease end ...then start fresh......

    I hope this Helps....

    Terry.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Thanks for the kind words, nighter50. I am glad that I was able to help you out.

    Car_Man
    Host
    Smart Shoppers / FWI Message Boards
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Jmwat, I certainly don't think that it is unreasonable to expect to be able to lease a 2001 Oldsmobile Silhouette at a price that is near dealer invoice. Given the $500 Lease Cash that is available on this van, I think that it is likely that you would be able to lease one through GMAC at a price that is very close to what you are looking to spend.

    Car_Man
    Host
    Smart Shoppers / FWI Message Boards
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Brose5, any additional options that are included on your car would likely have an impact on its full MSRP, even if they were provided to you for free as part of some sort of promotion. If your vehicle's MSRP increases, its lease-end purchase price would also likely increase because it is based upon a percentage of your vehicle's full MSRP. I don't think that these free options will benefit you at lease-end, but they will be nice to have on your car while you are driving it during the length of your lease especially since they will not be added to your car's capitalized cost.

    Car_Man
    Host
    Smart Shoppers / FWI Message Boards
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Km99cobra, the 2001 CL's residual values will certainly be lower at this point than they were many months ago. This would in turn make it more expensive to lease right now than it was back then. The 2002 TL Type S will almost certainly have higher residuals than a 2001 TL would have at this point. Unfortunately, Acura has not published any residual values for this car yet, so it is impossible to say for certain what they will be. Please feel free to check back with me in April. There is a good chance that they will have issued the residual values for this car by then.

    Car_Man
    Host
    Smart Shoppers / FWI Message Boards
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Joe830, it is difficult to say exactly what the monthly lease payments for this particular car should be without knowing its full MSRP and the price that the dealership is charging you for it. Consumers are free to negotiate the price of a leased vehicle, just as if they were paying cash for it. In leasing terminology, this negotiated price (minus any sort of down payment that you make) is typically called your car's capitalized cost. It is very important for you as a consumer to find out what this car's capitalized cost it. Without knowing it, it is very difficult for you to be able to tell what sort of a deal you are getting.

    Furthermore, it is definitely to your advantage to lease this car for 36 months instead of 48 months. If you lease it for three years, you will be able to take advantage of the special lease money factors that Nissan Motor Acceptance Corp. has available on the 2001 Maxima right now. Their three year lease money factor for this car is equivalent to an interest rate of about 4.9%, but if you lease for 4 years you will have to use their standard lease money factor which is equivalent to an interest rate of around 8.4%. Furthermore, by leasing for the shorter term you will be covered by this vehicle's original factory warranty for the duration of your contract. If you had a 4 year lease, you would be responsible for paying for any necessary repairs to your car out of your own pocket before turning it in. If these repairs were not made, you could face significant lease-end charges for excessive wear and tear.

    I suggest that you shop around at a couple of dealerships to see what the lowest capitalized cost that you can get on this car is. There are plenty of Nissan dealerships in New Youk and New Jersey so this shouldn't be a problem. Once you have the full MSRP and cap cost for a particular car, I would be glad to let you know what I think its monthly lease payments should be.

    Car_Man
    Host
    Smart Shoppers / FWI Message Boards
  • joe830joe830 Member Posts: 4
    thank you for your prompt reply - I have the MSRP it's $29,182 and the cap cost is $28,815. Does the downpayment come off of the gross cap cost?

    Example:

    20,000 - 2,500 = cap cost

    Is this right?

    We were also told by the dealer that the first months payments / reg. fee / doc fee would come off of the downpayment and then what is left over will be applied to the gross cap cost. We're thinking they are wrong but I'm not sure.
This discussion has been closed.

Helpful Tools

Most popular vehicles