Lease Questions - Ask Here

CarMan@Edmunds · March 2003

Hey mfullmer. Given the low popularity of used vehicle lease programs, combined with the fact that there are so many variables that are associated with them I have not been keeping tabs of their details. Sorry that I couldn't be of more help.

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CarMan@Edmunds · March 2003

Hi casams. When I checked the other day, Toyota had not published residual values for the 2004 Sienna yet. Even though they have not introduced a lease program for this model, it is very safe to assume that they will not initially have any sort of lease support available on the redesigned Sienna. If this is the case and you were to lease one through Toyota Financial Services, you would have to use their standard lease money factors. The last that I heard, TFS' base standard factor was .00230, for consumers who qualify for their top credit tier. This is equivalent to an interest rate of around 5.5%. I should be able to find out this van's residuals when Toyota publishes their second quarter lease program at the end of this month or the beginning of April.

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CarMan@Edmunds · March 2003

Hi ngkiyan. Infiniti's base lease money factor for a 3 year lease of the 2003 FX35 is currently .00210 and their 39 month base factor is .00205. These factors are set by Infiniti Financial Services, but individual dealerships do have the right to mark them up to add additional profit to deals. If you shop around, you should be able to find an Infiniti dealership that will lease you this new model using IFS' base money factors.

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CarMan@Edmunds · March 2003

Hello casams. I have a few questions that I need you to answer before I can help you out. What trim level Odyssey are you interested in, the EX, LX, or EX-L? Are you getting the Navigation system? How many miles per year do you need to be able to drive without having to pay a lease-end penalty? Talk to you soon.

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casams · March 2003

Wow you are fast...
We are interested in the EX-L with DVD. And 12000 miles a year is good.
This is great. Thanks a bunch for your help!!

ribbonking · March 2003

Car_Man:

Thanks for the quick response. That Volvo deal looks good with $6,800 lease cash - Wow!. You were correct - 36 months with 15k.

Ribbonking

ngkiyan · March 2003

Thanks for your fast response. Could you also tell me what the residual is on fx 35 39 month lease w 15000 mi/yr?

texangirl · March 2003

Thanks Car_man. I was afraid that would be the answer but I had to ask anyway. Well, lesson learned. Moving on.

rosen31 · March 2003

Car_Man,

The list price on the Acura TL without Navigation is: 29,480 and the sale price is 27,000. Based on a 15k miles per year/36 month lease with .00135 mf and .57 residual I am calculating $313 per month. Does this sound correct. Also if I roll the taxes 7.75% into the lease how do I figure this portion. Is it considered part of the capital cost?

Thanks!!

hosimian · March 2003

for the info on the 2003 Honda Civics. We are thinking about getting a 4 door for our second car, and the Civics seem like great cars for the money. The other possibility is a Toyota Matrix. I kind of like the GTI--even if it doesn't have 4 doors, it has nice sport seats and hatchback functionality, and seems to be a better value than the Jetta.

As always, you've been very helpful.

silvercrown · March 2003

Thanks so much for the leasing info for the Altima and Grand Am for my friend and for the Mazda 6 for myself.

I have a question about the residual values for the Mazda 6. I realize that Mazdas have traditionally had relatively low resale value, especially compared to makes like Toyota and Honda. However, I was still surprised that the residuals for the 6 were so low, even with the 39 month (instead of 36 month) lease periods. With the 6 being a brand new, very promising and highly acclaimed model, I had thought (hoped) that the resale values would be higher.

Do you know if these low residuals are based solely on the previous models (626 and Millenia, since the 6 is new and has no history yet) and that's why they are so low? Do you think that the resale value might increase as the car gets some longevity and esablishes a positive and proven track record?

Just curious.

TIA,
SilverCrown

aggieque · March 2003

The dealer in Northern CA just offered us a fully loaded 2003 RX300 with Nav for $36,000. The terms of the lease are:

4000 down
48 month
15K miles
17,900 residual
$449 per month

Car_Man- should we pull the trigger?

aggieque · March 2003

Car_Man, one more follow up ?

what is the residual and money factor on a 2003 RX300 AWD, on a 48 month, 15,000 mile lease.

Thanks in advance!!

mfullmer · March 2003

Ok, I've narrowed it down to these:

12k/yr, 24 & 36 month please, SE region

Lexus ES300
Cadillac CTS
Buick LeSabre (Limited w/Celebration pkg.)
Infiniti G35 (leather)
Mercedes C240
Pontiac Bonneville SSI

Thanks CarMan!

CarMan@Edmunds · March 2003

Thanks, casams, I try

. OK, if you were to lease a 2003 Honda Odyssey EX w/DVD through American Honda Finance Corp. right now for 4 years with 12,000 miles per, their base lease money factor and residual value should be .00210 and 55%, respectively.

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CarMan@Edmunds · March 2003

You're welcome, ribbonking. You're right, Volvo certainly does have a lot of support on the 2003 S80 right now. Good luck in your negotiations.

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CarMan@Edmunds · March 2003

Any time, ngkiyan. Here is the additional information that you are looking for. If you were to lease a 2003 Infiniti FX35 through Infiniti Financial Services this month for 39 months with 15,000 miles per, their base lease money factor and residual value should be .00205 and 52%, respectively.

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CarMan@Edmunds · March 2003

You're welcome, texangirl. I am sorry that there is not an easier solution to your problem.

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CarMan@Edmunds · March 2003

Rosen31, according to my calculations, if you were to lease a 2003 Acura TL with an MSRP of $29,480 and a capitalized cost of $27,000 through American Honda Finance Corp. this month for 3 years with 15,000 miles per, your zero down, pre-tax monthly lease payment should be around $343. As far as taxes go, different states use different regulations about how tax should be charged on leased vehicles. You should check the Web site for your local Department of Motor Vehicles or give them a call in order to find out exactly how this works in your area.

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CarMan@Edmunds · March 2003

I am glad that I was able to help you out, hosimian. I agree that Honda Civics are great cars for the money, especially with the special lease program that is available on them right now. Good luck in your quest for a new car.

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CarMan@Edmunds · March 2003

No problem, silvercrown. Mazda's residual values for the 2003 6 are currently in the mid to high 40% range for 39 month 15,000 miles per year leases. Mazdas traditionally have fairly low residual values. If you think that the 6's residual values are bad, you should see the Protege's. The 39 mo. 15k numbers for the 2003 Protege are in the mid 30% range. Ouch. Relative to that the 6's resids don't look so bad. I don't know what Mazda is basing these residual values on, but I have a feeling that they will be fairly reflective of what these cars are indeed worth in a couple of years.

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CarMan@Edmunds · March 2003

Hi aggieque. When negotiating a lease, it is important to find out the vehicle's full MSRP. Without this number it is difficult to calculate a monthly lease payment. Also, in your post, you didn't mention whether this is a 2WD or an AWD truck. Given the fact that you are in California I assume that it is a 2WD version. I will calculate a sample lease payment on a 2003 Lexus RX 300 2WD with Navigation for you, but keep in mind that it is very possible that the model that you are looking at is more expensive than the one that this payment is based upon. If you were to lease a 2003 Lexus RX 300 2WD w/Nav with an MSRP of $39,590 and a selling price of $36,000 through Lexus Financial Services this month for 4 years with 12,000 miles per, your zero down pre-tax monthly lease payment should be around $462 or so. So regardless of what this truck's full MSRP is, it certainly looks to me as though you were quoted an attractive monthly payment.

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CarMan@Edmunds · March 2003

Aggieque, according to the information that I have seen, Lexus Financial Services base lease money factor and residual value for the 2003 RX300 AWD with Navigation if you were to lease it for 4 years with 15,000 miles per should be .00141 and 45%, respectively.

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lmm540i · March 2003

Car-man

Please let me know the money factor and residual this month for a 3 year 10k miles per year lease from BMWFS. Thanks.

nlkleinberg · March 2003

C_M:

You were kind enough to give me the BMWFS 36 month/12K numbers (.00235 and 58%) for a 2003 BMW M5 (NYC area). Could you also give me the numbers for 24 and 30 month leases (12K for each)? Also, I've heard talk about special "owners choice" and "smartbuys" programs. Are these just "marketing speak" or do they offer real differences?

Thanks (and take it easy, we need you

).

=NLK=

bazoooooka · March 2003

Carman - great work

Anyway we're in the market for a new sedan (3 year or similar lease 12-15k mileage); we really like volvos? can you show me the best why to go for an s80 (lets assume I can get TMV price.

How does the $6800 "lease cash" work or should I use Volvo's own finance (also what other model does volvo have high lease cash on)?

Also should i be looking at a car with a higher 3 year residual(Beamers etc) than 50% or do Volvos make good lease candidates with their "lease support"?

I'm really new to this so a walk through of a "doable" deal would be great.

Dave in Hermosa Beach CA

>>
>>
>>you said:

"If you were to lease a 2003 Volvo S60 T6 through Volvo Finance this month for 3 years with 15,000 miles per, their base lease money factor and residual value should be .00033 and 50%, respectively. You may find that you are able to get a better deal on this car by leasing it through a bank other than Volvo's captive finance company though"

"because Volvo is providing $6,800 lease cash on 2003 S80 T6 models leased through any bank other than Volvo Finance."

aggieque · March 2003

Car_Man,

thanks for the quick reply! When calculating the monthly lease please use the following MSRP on a 2003 RX300 AWD with Navigation is $42,261.

thanks again!!

djocks · March 2003

I am going to get my wife into a secure SUV/wagon on a 12k lease. I am trying to be as cost efficient as possble. We live in CT. and it sounds like the most attractive deals are with the RX300. Although she would like almost anything as long as it sets up well in the interior and I want it to be easy to drive. That is why the RX sounds perfect right now.

My question is, a Lexus dealer quoted me at $1005.00 down and $499.00 a month. Does this sound good or can I do better.

My other question is, from the list below are there any that stand out with possible attractive offers right now...

Audi - A6 wagon or All-Road
MB - ML 320
Volvo - XC70 wagon
Acura - MDX
Nissan - Murano
BMW - X5 3.0
Infiniti - FX35

shafjac · March 2003

Car_man,

You are a huge help to the leasing process; thanks a ton.

Here's my question: I noticed that the Edmunds Incentives and Rebates page references a $339/mo lease on a Lexus IS300 (http://apps.edmunds.com/new/2003/lexus/is300/100172540/incentives.html?vdp=off&setzip=66061&state=KS&tid=edmunds.n.incentives.incentives.3.5.Lexus*), but the Lexus site has much different numbers.

Do you have access to the current money factor and residual percentages for 12k miles/yr, 36 and 39 month leases? I'd like to see the math for myself.

Thanks!

squirreljam · March 2003

Carman - About a month ago you helped me tremendously with leasing #s for my wife's Altima - so thank you again for that.

Now it's my turn, and I've got sportier taste. Would you mind providing March's mf and rv% on these, assuming 36month, 15K/year miles for all?
03 BMW 330i
03 BMW 325i
03 Sub WRX sedan no wing

When we did the Altima deal I found my calculations of pmt were ~$20/month off due to origination fee and dest charge being added to cap cost. I remembered a while back you saying if you get within $20 you're doing well, so I wasn't too worried, but could you explain your take on how those fees should be incorporated into the math of leasing?

Thanks very much,
Squirrel

ribbonking · March 2003

Car_Man

Thanks to your help, I was able to negotiate a very good deal on an Acura TL-S. Went in to get the TL but after driving the TL-S I was sold on it - more ponies and better handling. Ended up at $380 + tax for 39 months, 15,000 miles per year with only $500 due at signing including all drive offs. With invoice pricing in hand and your advice on MF and residuals, it was a painless negotiation once I was able to talk to the general manager and he realized I had my ducks in a row. Perhaps this info will help other looking for the TL-S.

Your assistance is very much appreciated, Car_Man

Ribbonking

sbpowell · March 2003

Car_man-

Thanks for all your help in advance. Do you know the current money factors, residuals, and factory incentives for a 2003 Ford Expedition and 2003 Chevrolet Tahoe (3yr/15,000 mile lease)?

Also, is the monthly interest calculation on a lease based on the sale price of the vehicle or the sale price - residual?

Thanks!

djocks · March 2003

I just leased a 330i. Here is what I got and I am pretty sure depending on the dealer you might be able to receive.

$5000 total out of pocket.
$401 a month/36 months/15k a year

sport package/xenon's/heated seats
RV of $23,000/money factor of .0013
and the car was discounted a bit

My thoughts - I truly believe in BMW. When testing the WRX I was not a fan of the interior and I though it rattled a bit. I know BMW is trying to move 325i's I think I might have gone with the 325i looking back. It is an awesome ride and plenty quick. The 330i is just fast, but you do pay a premium for the juice. I do not regret it but just a thought.

Lexus is aggressively moving the IS300. Although the interior in a little small and futuristic, it drives like a monster. You might be able to get 325i numbers in 330i drive. Just a thought.....but I love my car there is no question about that!

djocks · March 2003

Sorry about the repeat from above. I am new here and I just noticed that this should be addressed to car_man. You have provided so much help to others. I am just begining to figure this out.

I am going to get my wife into a secure SUV/wagon on a 12k lease. I am trying to be as cost efficient as possible. We live in CT. and it sounds like the most attractive deals are with the RX300. Although she would like almost anything as long as it sets up well in the interior and I want it to be easy to drive. That is why the RX sounds perfect right now.

My question is, a Lexus dealer quoted me at $1005.00 down and $499.00 a month. Does this sound good or can I do better.

My other question is, from the list below are there any that stand out with possible attractive offers right now...

Audi - A6 wagon or All-Road
MB - ML 320
Volvo - XC70 wagon
Acura - MDX
Nissan - Murano
BMW - X5 3.0
Infiniti - FX35

howparlaw · March 2003

Hey Car_man- You and this board are a great source of information. Following up on Squirreljam's question. Would you provide March's mf and rv% on BMW 325i and 330i for 36 months if mileage drops to 10K miles/year? I know they have specials running right now. Any additional information on these specials would also be appreciated. Finally, what about similar info for a Lexus ES300? Thanks.
howparlaw

aggieque · March 2003

Car Man,

Thanks so much for you help. Last night, my wife and I pulled the trigger on a 2003 RX300 AWD (fully loaded with Nav).

MSRP- $42,461
Cap Cost- $36,511
RV- $19,447
4 years/15K miles
$800 down/MF-.0020
$466+ tax

Thanks again!!

squirreljam · March 2003

DJ - thanks for the thoughts on the bimmer vs rex controversy. I'm going to do some more test driving tomorrow - while I've sat in a bunch of WRXs I haven't driven yet so I'm pretty interested to see how it feels.

I'll be interested to see what Car_Man has to say on the #'s - sounds like your money factor was pretty good, last month I think it was .0015. 325 is a good deal right now if you can find the right combo and deal to a good cap cost.

I wasn't thinking the IS300, but maybe it's worth a drive...

Thanks - Squirrel

djocks · March 2003

I just spent the day looking at SUV's with my wife. We drove the MDX, RX300, Murano and Audi All-Road. I love the Audi, it brings me back to the days of sand lots and tonka toys. I would love if she choose that but much to my surprise, she likes the Murano. The deals on the Lexus' right now are good but ultimately she has to drive it. She even went as far to say she would choose the Murano with price being equal.
WOW!

Squirreljam,
The WRX is an impressive car. I am interested to hear you thoughts. If you look around I think you will find dealers being aggressive with the Lexus IS300's. Again, it takes some getting use to but I drove a lot of cars and the IS300 was in all honesty the one car that gave the same intense driving feel as the BMW330i. I liked it a lot, but I love my Bimmer!

gandl · March 2003

Car_man-

Do you know the current money factor and residual number for a 2003 Nissan Murano SL FWD? I am interested in a 39 month, 12000 miles per year lease and live in Southern California.

Thanks!

CarMan@Edmunds · March 2003

Mfullmer, here is the information that you are looking for. If you were to lease a 2003 Lexus ES 300 through Lexus Financial Services this month for 2 years with 12,000 miles per, its base lease money factor and residual value should be .00220 and 59%, respectively. The numbers for an otherwise identical 3 year lease should be .00150 and 56%.

If you were to lease a 2003 Cadillac CTS through General Motors Acceptance Corp. this month for 2 years with 12,000 miles per, their base lease rate and residual value should be 4.95% and 64%, respectively. The numbers for an otherwise identical 3 year lease should be 4.95% and 54%.

If you were to lease a 2003 Buick LeSabre through GMAC for 2 years with 12k per, their base lease rate and residual value should be 3.5% and 62%, respectively. The numbers for an otherwise identical 3 year lease should be 3.5% and 53%.

If you were to lease a 2003 Infiniti G35 Sedan through Infiniti Financial Services this month for 3 years with 12,000 miles per,its base lease money factor and residual value should be .00184 and 55%, respectively.

If you were to lease a 2003 Mercedes-Benz C240 Sedan through Mercedes-Benz Credit Corp. this month for 2 years with 12,000 miles per, its base lease money factor and residual value should be .00240 and 65%, respectively. The numbers for an otherwise identical 3 year lease should be .00190 and 60%.

Lastly, if you were to lease a 2003 Pontiac Bonneville SSI through GMAC this month for 2 years with 12,000 miles per, its base lease rate and residual value should be 3.5% and 60%. The numbers for an otherwise identical 3 year lease should be 3.5% and 51%.

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CarMan@Edmunds · March 2003

Greetings lmm540i. Here is the information that you are looking for. If you were to lease a 2003 BMW X5 3.0 through BMW Financial Services this month for 3 years with 10,000 miles per, its base lease money factor and residual value should be .00225 and 62%, respectively.

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CarMan@Edmunds · March 2003

You're welcome, NLK. The 24 and 30 month lease money factors for the car that you are interested in should be exactly the same as the 36 month money factor that I provided you with earlier. BMW FS' 24 and 30 month 12,000 miles per year residual values for the 2003 M5 should currently be 67% and 62%, respectively.

The Owners' Choice and Smart Buy programs are BMW Financial Services' and I believe General Motors Acceptance Corp.'s brand names for their balloon note programs. Balloon notes are similar to leases in that they provide consumers with low monthly payments and the option to buy their vehicle at the end of their term. The main differences are in how the payments are calculated and the fact that the your name, not the bank's appears on the vehicle's title. These programs have become much more popular lately in the states of New York, Connecticut, and Rhode Island where the vicarious liability laws are forcing banks to raise their lease acquisition fees or to completely cease leasing vehicles.

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CarMan@Edmunds · March 2003

Thanks Dave. I do not know what sort of lease programs independent banks have on the Volvo S80 right now, so it is difficult for me to say if you are better off leasing this car through Volvo Finance or taking the outside lender lease support and using another bank. Both programs provide a ton of support on this car. If you would like, I can calculate a sample lease payment on a 2003 S80 for you using Volvo Finance's current program, then you can use that number for comparison sake while shopping to see if any dealerships can use the lease cash to get you a better deal.

Volvos do indeed make decent vehicles to lease. They certainly don't have the highest residual values in the world, but their residual values are decent. In fact, they are probably higher than what these cars will actually be worth at the ends of their terms. Plus Volvo is providing a ton of lease support on many of its vehicles, making their deals even more attractive.

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CarMan@Edmunds · March 2003

No problem, shafjac. Here is the information that you are looking for. According to the information that I have seen, if you were to lease a 2003 Lexus IS 300 E-Shift or SportCross through Lexus Financial Services this month for 39 months (this is where they are providing the most lease support) with 12,000 miles per year, their base lease money factor and residual value should be .00179 and 51%, respectively.

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CarMan@Edmunds · March 2003

Congratulations on your new Altima, Squirrel. I am glad that everything worked out well with that transaction for you. I would be more than happy to help you out in your quest for your next new ride. If you were to lease a 2003 BMW 330i through BMW Financial Services this month for 3 years with 15,000 miles per, their base lease money factor and residual value should be .00150 and 59%, respectively. The numbers for an otherwise identical lease of a 2003 BMW 325i interestingly enough should be exactly the same.

I have not seen Subaru's March lease program for the WRX yet, but I do know that they have special lease money factors available on this model. If you are not completely sold on leasing, I can tell you that Subaru is currently running a special financing program on the 2003 WRX that provides 0.0% for 24 months, 1.9% for 36 months, 2.9% for 48 months, and 3.49% for 60 months.

There are several fees that consumers have to pay when leasing a vehicle. First, all consumers pay destination charges on any vehicle that they take deliver of, whether they lease it, finance it, or pay cash for it. This charge should be included in the MSRP and capitalized cost of your vehicle when calculating your monthly lease payment. The other fees that are associated with leases are the lease security deposit and lease acquisition fee. All banks charge consumers an acquisition fee on leased vehicles. This fee will vary from bank to bank, but I can tell you that BMW Financial Services' base fee is currently $525 and I believe that Subaru's captive finance company's is around $450. You can either pay this fee at lease-signing or often can roll it onto your car's capitalized cost and bake it into your lease payment.

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CarMan@Edmunds · March 2003

Hey that's great news, Ribbonking. I am glad to see that everything worked out well for you. Thanks for taking the time to keep us informed on your progress. Enjoy the new car!

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CarMan@Edmunds · March 2003

Hi sbpowell. I would be more than happy to help you out. First, I need to tell you that both Ford and GM publish lease rates rather than lease money factors. These lease rates can easily be converted into approximate lease money factors by dividing them by 2400. Also, Ford's lease program often varies by region. So, I will provide you with information on what I believe to be their most commonly available program for the model that you are interested in.

If you were to lease a 2003 Ford Expedition through Ford Motor credit this month for 3 years with 15,000 miles per, their base lease rate should be 6.25%. This truck's exact residual values will vary depending upon what trim level you are interested in and whether you are getting 2WD or 4WD. If you provide me with some additional information on the exact truck that you are interested in, I should be able to provide you with its residual. If you aren't completely sold on leasing this truck, Ford did recently enhance its special financing program on it to 0.0% for up to 36 months, 1.9% for 48 months, and 2.9% for 60 months in many areas.

As far as the 2003 Chevrolet Tahoe goes, if you were to lease one through General Motors Acceptance Corp. this month for 3 years with 15,000 miles per, their base lease rate and residual value should be 6.5% and 52%, respectively. GM has some great special financing rates on this truck as well.

For more information on how to calculate lease payments, check out the following article: Calculate Your Own Lease Payment.

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shafjac · March 2003

Car_Man,

Thanks for the info. If your rates are accurate (and I don't doubt that they are), it seems like the Edmunds incentives page for the IS 300 are way off. When I calculated the lease payment using your numbers, the montly paymenet was around $100 more than what's listed.

Has anyone else here gotten a lease quote on an IS 300 lately? If so, is it anywhere near the Edmunds' number ($329/month)?

bapples · March 2003

Would anyone care to discuss the lease prices being offered on a premium aviator with dvd entertainment?Please give specifics as to # of months,cash down -etc.By the way,could anyone tell me the residual after 36 months on this car?Thanks to all who respond.
bapples@aol.com

squirreljam · March 2003

Carman - thanks for the #'s on the bimmers - looks like rv%'s dropped about 3% from Feb to March - I coulda saved $30 or so a month by going in Feb...Oh well.

As to the WRX, should I check back with you in a few days? I am interested primarily in leasing because of the way my company reimburses for business vehicles. We're required to turn over cars (3 model years or newer) before getting any real benefit from purchasing.

While I'm pestering, could you add the March rv and mf for Audi A4 3.0 Quattro (MT if it matters)?

Thanks again,
Squirrel

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