Lease Questions - Ask Here

jak001 · March 2003

Looking at leasing 2004 sienna xle or 2004 lexus rx330 Was wondering if you have resid value and money factor for 36,39,and 48 months. 12 an 15k per year Thanks

the_heidi · March 2003

Carman,
Can you tell me how much each additional security deposit effects the money factor an a BMW lease. I suspect that my dealer may be using this opportunity to raise the initial money factor on me. Right now we have a money factor of 0.0015. By placing an additional 9 security deposits we can get the money factor to 0.0008. We are suspicious because this dealer did not want to give us the 0.0015 MF initially. Thanks to your information, we knew that they were trying to mark up this rate. We have heard that each security deposit should buy down the MF by 0.0001. If this is correct, then my dealer is marking up the initial rate to 0.0017 (the initial rate they offered us) before applying the additional security deposits.

Thanks,
Heidi

kyfdx · March 2003

I know you are making 9 additional security deposits, but are you making the first one as well? If not, this would account for the rate starting at .0017, instead of .0015.

kyfdx

the_heidi · March 2003

I just spoke to BMW financial. They told me that the dealership decides how much each additional security deposit is worth. She said that it can vary from dealer to dealer. BMW USA just purchases the lease from the dealers. Is this true?

CarMan@Edmunds · March 2003

Hi jak001. I am sorry to say that I have not seen the new lease programs for either the 2004 Toyota Sienna or the 2004 Lexus RX 330 yet. These are very new models and if Toyota and Lexus Financial Services have published any numbers for them at all, they just came out. I suspect that I will be able to get info on the lease programs for these vehicles when Toyota publishes its April incentives next week. Please feel free to check back with me late next week for specific residual value and money factor information.

Having said all of this, I personally doubt that Toyota is providing any sort of lease support on either of these models right now. If this is the case and you were to lease them through their captive finance companies, you would have to use their standard lease money factors. The last that I heard, Toyota Financial Services base standard lease money factor was .00230 for all leases up to 60 months in length. Lexus Financial Services base standard money factor is currently .00220 for up to 60 months. These are the important numbers to know, of course along with the price that you are being charged, when negotiating a lease.

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lmm540i · March 2003

Welcome back Car_Man. I am still interested in the terms of the current leases for the Volvo XC70, assuming 12K miles per year. Thanks.

ogbuffguy · March 2003

my uncle was thinking of getting a C230 kompressor sports sedan or a C320 sports sedan, what are the rates for them on a 36 month/15k miles a year lease in southern california?? thanks....

squirreljam · March 2003

CarMan - welcome back from a little well-deserved R&R!

About a week ago you replied (about BMWFS #s on 325i and 330i for 36 mos, 15k miles/year) that mf is .0015 and RV 59%.

I was just browsing over in "Lease 2003 BMW or Wait for 2004" thread and saw you posted that 330i RV is 61% for 15K miles per.

Did something change while you were away, or am I missing something (always distinct possibility)? I'm looking to close the deal on a new ride in the next week so subject is near and dear to my heart...

Best,
Squirrel

ps - drove a WRX this weekend - drives great but tough to cross-shop with bmw (though taking wife in WRX first THEN BMW was good tactical move to get wifely approval).

CarMan@Edmunds · March 2003

Hi Heidi. Thanks for re-posting your question. The last that I have heard, BMW allows one to put up to 9 security deposits, where every additional deposit decreases the MF for 0.0001. I would not be surprised if a dealer that was initially trying to mark up your lease money factor would try to add some additional profit to your deal when additional security deposits make the situation slightly more confusing. Good job on looking into this matter before signing anything.

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CarMan@Edmunds · March 2003

Heidi, in answer to your second question, BMW Financial Services definitely has a set reduction for each additional security deposit. Customer service representatives at banks and manufacturers frequently tell consumers that dealerships set lease money factors because dealers have the option to mark-up their base factors to add additional profit to deals and they do not want to step on any toes.

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CarMan@Edmunds · March 2003

Thanks lmm540i. How long are you interested in leasing this vehicle for? Once I have this additional piece of information, I should be able to help you out.

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CarMan@Edmunds · March 2003

Hello ogbuffguy. According to the most recent information that I have seen, if your uncle were to lease a 2003 C230K through Mercedes-Benz Credit Corp. this month for 3 years with 15,000 miles per, their base lease money factor and residual value should be .00190 and 57%, respectively. The numbers for an otherwise identical lease of a 2003 C230 Sports Sedan should be .00250 and 58%. MBCC's lease program may vary slightly in certain regions.

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CarMan@Edmunds · March 2003

Thanks for the kind words, Squirrel. It's always nice to go on vacation. If I listed the 3 year 15k residual value of this car as 61% I apologize. I must just be used to everyone asking me for the 12k numbers. The 15k residual for this model is still the 59% that I quoted you earlier. Sorry for the confusion.

I completely agree with you about the WRX. It is a very nice vehicle, but I never ever would personally purchase or lease one over any BMW. Unless I really needed AWD and could not afford the xi.

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z1128 · March 2003

Carman, great forum for Q&A Thank you,

My question is for figures (money factor and residuals) on the Honda Pilot EX and LX Model for both a 36 and 48 month lease with 12,000 miles. No Leather or DVD, simply the standard EX and LX Model.

Also, our lease on a 2000 Durango is up in about a month and the buyout is of course well above its actual value. The dealer is telling me that Chrysler Financial will not negotiate this price even though they know that this car is worth much less. Are you familiar with CF negotiating these contract prices. The good news is that the car is in excellent condition and we have been benefiting from the high residual but would consider buying it if they would negotiate a bit.

Thanks

rhodes3 · March 2003

Car_man:

Could you tell me the numbers on an 03 BMW 525i sport wagon lease with 12k for 36 months.? Also, was wondering about the balloon payments options that BMW FS is offering. Thought I saw a post somewhere back that talked about this but can't seem to find it. What are advantages/disadvantages of this type of program.

Thanks,

lmm540i · March 2003

Car-man

I would be interested in a 3 year lease and 12K miles per year. I would be interested in the MF, Residual and other possible support for this type of lease. I know about the low APR financing available so I would only be interested in the lease if it worked out to be cheaper financing. Thanks.

the_heidi · March 2003

Thanks Car man for all of your information. This dealership is giving me a hard time. I thought that I had already negotiated the deal and multiple security deposits would be clear cut amount. I guess nothing is clear cut in car purchasing. This dealership is not doing much for the stereotype of a car salesman. Thanks Heidi

numeromano · March 2003

Carman,
This may have slipped through before your got back from vacation. My current lease is up in two days, so your help would be very much appreciated. Here was my question:
Maybe you can help clear up some confusion on my end after you gave me the March numbers for a 2003 Aviator AWD Premium on a 36mo_15k per year lease. You said 47% res and 4.5% apr, plus $1,000 conquest cash for a Jeep owner. Edmunds is currently also showing $2,000 marketing support, factory to dealer for this car ($3,000 total). My dealer is only reflecting the $1,000 cash and offering 6.75% apr with 47% res. When I go to the lincoln.com site and use their lease calculator, the apr figures to 6.75%. As you can imagine, the extra 2.25% and no $2,000 moves this lease rate way up. Can you verify again the current numbers?

Thanks for the great service.

hpowders · March 2003

Hello Car Man. I leased a 2002 BMW 325I in August for $$469.45+$32.86 tax=$502.31 for 36 months. About a month ago the passenger-side airbag malfunctioned on the highway. The car came to a stop. Luckily no one was tailgating me at 75mph. I complained to BMW that I wished to terminate my lease because I believed the vehicle was unsafe. They wrote me about a sale of liability option.They will sell my vehicle at auction and I would pay the difference if any between the sale price at auction and the payoff amount. The cap. cost was $31,464. Residual is $19,317. In a few days I will have made 9 monthly payments. What would be my "Payoff" and what approximate price could I expect if it is sold at auction? (The car is virtually immaculate-no scratches with 7300 miles). In other words would they be screwing me if I agreed to go through with this?
Thank you.
Howard P

res1510 · March 2003

Hi Car Man,

I've put a deposit down on a Black/Black 2004 RX 330 w/Performance Package, Rear Seat DVD Entertainment System, Power Rear Liftgate, and Heated Front Seats. I suspect the MSRP will be around $43k to $45k (although it will arrive in the dealership any day now, they claim they don't have the MSRP yet). I am going to lease it for 24 months w/15k miles a year and make a single lump sum payment for the entire term at lease inception. I know that it is impossible to come up with any actual figures for this vehicle yet, but based on your knowledge of leases in general and information about Lexus vehicles in particular, could you give me a rough guess as to a range of figures that would be a fair price. I'm not interested in prolonging the negotiating process to get the absolute best deal possible. However, neither do I want to grossly over pay.

Thanks

gpwatfrd · March 2003

I was told that the promotion on the bmw 330 is no longer valid and the 325 has a promotion running. I was wondering if that is really the truth and if so does that apply toward the 325 coupe also? Thanks in advance.

viewer_x · March 2003

Carman:

I'd appreciate your assistance on the March residual and money factors for a 3 yr 12K miles lease in CT?

Thanks.

hicaira · March 2003

"In other words would they be screwing me if I agreed to go through with this?"

No. You want out of a lease early, you pay the price. You WILL be screwing yourself though outta some big $$ (a few thousand, I'd guess).

The car had a malfunction. They fix it under warranty. You are whole. No one is trying to screw you.

HiC

kyfdx · March 2003

There is a payoff amount on your car.. It will be somewhat less than the residual plus the remaining payments, though probably not a lot less. They will sell your car at auction, which means it will be bought at wholesale (meaning the least you could hope to get for it). You will be liable for the difference between payoff and what they sell your car for. If you are intent on doing this, find out what the payoff is, and try selling it yourself. I think you will find that you are still several thousand dollars in the hole.

kyfdx

hpowders · March 2003

Thanks guys for your help. BMW did replace the airbag and reset the computer chip module at no cost to me. Hopefully it won't happen again. I will hang on to the car.
Howard P

icdchess · March 2003

Hi Car_man,
I am looking for the March residuals and mf
on the 2.5 and 3.0 (automatics) for 36 months and 15,000 miles. I live in New York.

I think there might be some sort of incentives now. Any ideas what they are?

Thanks for all the help, now and in the past.
Steve

jefhack · March 2003

Hi Carman,
Thanks ahead of time for your advice! I'm a first-time caller from LI, NY...

My wife's lease (our only car) on her 2000 VW Jetta is up in August this year. We'd really like to get out of this lease early, and start a new lease on a new Nissan Murano SL. Details below. Pls let me know how we should go about this (or if it's better to hold off until August when her lease is up) and what to expect to pay on a Murano lease...

Current lease:
2000 VW Jetta, on pace to exceed 39K miles (total contracted) by at least 2K, lease up at end of August 2003

Anticipated next lease:
2003 Nissan Murano SL (w/ "typical options"), 3 yr, 15K miles/yr

Thanks again!

CarMan@Edmunds · March 2003

Hi rhodes3. Here is the information that you are looking for. If you were to lease a 2003 BMW 525i sport wagon through BMW Financial Services this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00150 and 61%, respectively.

As far as balloon note programs go, they seem to be becoming increasingly popular, especially in northeastern states, like NY, CT, and RI where vicarious liability laws have forced banks increase their lease acquisition fees or to completely cease doing business. Traditionally balloon notes have not been that popular and I really haven't seen the need to keep tabs on the details of manufacturers' programs. If they continue to gain popularity I may have to change my mind though. Balloon notes are very similar to leases in that they provide consumers with low monthly payments with the option to purchase their vehicle for a large balloon payment at the end of their term. The main difference between balloon notes and leases is that with balloon notes, the owner's name is on the title, rather than the bank's.

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CarMan@Edmunds · March 2003

Thanks for the additional information, lmm540i. According to the latest information that I have seen, if you were to lease a 2003 Volvo XC 70 through Volvo Finance this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be 0.00147 and 58%, respectively. I assumed that you are interested in a reasonably well equipped version of this model. A stripped one would have a slightly higher lease money factor.

As you mentioned in your post, Volvo is currently offering special financing on this model as well. They are providing 0.9% for up to 36 months and 1.9% for 48 or 60 months. This is a very attractive offer and I would personally be very tempted to take advantage of it were I in the market for an XC 70.

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CarMan@Edmunds · March 2003

You're welcome, Heidi. I am glad that I was able to help you out. Good luck in your negotiations.

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ogbuffguy · March 2003

is the MF and residual the same for a C320 sport sedan also?? thanks

CarMan@Edmunds · March 2003

Thanks for re-posting your question, numeromano. I am not aware of any $2,000 dealer cash incentive on the Lincoln Aviator right now, but I suppose that it is possible that they have dealer cash on it in certain regions. The lease rate that I provided you with earlier, 4.5%, is available in all of the regions that I have seen incentives for. Ford does have regional variation in its incentives on certain models from time to time, so it is possible that their lease program is slightly different in your neck of the woods. Have you comparison shopped at a couple of other dealers in your area yet? This would be a great way for you to get an idea of whether the dealer that you are currently working with is being completely honest with you about the lease program, plus it will give you a few other price quotes on the truck itself. This is what I would do if I was in your situation.

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CarMan@Edmunds · March 2003

I am sorry to hear about your car troubles, Howard. I do not personally keep an eye on auction prices, but I can think of a few very helpful resources for you. The first would be to hop on over to the "Real World Trade-In Values Discussion" over on the Smart Shoppers Message Board. Two of our most knowledgeable community members, Bill and Terry, frequent that discussion and often are kind enough to give others an idea of what their vehicle would being at auction. They seem to follow auction results very closely and are usually very accurate. You also should look up the Edmunds.com True Market Value for your car.

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hpowders · March 2003

Thanks for your help Car_Man. BMW did replace the airbag and reset the appropriate computer chip module under warranty. I have decided to keep the car and hopefully the problem has been completely resolved but I will never forget the noise of that airbag deploying. It sounded like I crashed head on into a brick wall.
Howard P

hgozzo · March 2003

In St. Louis, my dealer has offered the following lease on 2003 Volvo S60 2.5 AWD, with
premium pkg. MSRP, $36,065. Cap Cost, $34,700.
Money Factor, .00029, Residual, 55%. Term of the lease is 36 months, with 12,000 miles a year.
The resulting payment is $428.70 with zero down.
With $3,000 cash up front, payments would be $344.

Lease is with Volvo Finance. Dealer said Volvo
is not using Chase now.

The base cap cost is in line with Tru Cost on
Edmund's. But it appears there is not the $5,000
rebate Volvo was offering on Chase leases in
February. BUT the .00029 money factor is equivalent to 0.7%, or almost interest free.
When I checked it, payment appeared equivalent to what it would have been with $5,000 rebate
and the money factor of .00271 on Chase lease in
February.

I think this OK. Can anyone, Carman in particular, offer some comments on this lease?
Thanks.

nlkleinberg · March 2003

Hi car_man:

Can I bother you with another set of lease numbers (MF and residual), this time for a 2003 BMW 540, 24/12K, 30/12K, in NY/LI area?

Boy, I'm running out of paper on which to keep these notes.

Thanks.

=NLK=

CarMan@Edmunds · March 2003

As you mentioned in your post, I have not had an opportunity to take a look at the new Lexus lease program for the 2004 RX 330 yet. I think that this truck officially went on sale yesterday or the day before. I suspect that I will have an opportunity to take a look at Lexus' April lease program by late next week. There is a very good chance that they will publish money factors and residual values for this model then. In the meantime, I will give you my guess as to what this truck's lease program will look like. It is very unlikely that Lexus will provide any sort of lease money factor support on this car when it is first introduced. So if you were to lease one through Lexus Financial Services right now, you would have to use their standard lease money factors. Its base standard lease money factor for consumers who qualify for their top credit tier is currently .00200 for up to 60 month terms through March 31st. It's difficult to say exactly what this truck's residual value will be like, but I suspect that LFS' 2 year 15,000 miles per residual for the model that you described will be somewhere around 60%. This is just an educated guess though.

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CarMan@Edmunds · March 2003

Hello gpwatfrd. The last that I heard, BMW's special lease program for the 2003 325 and 330 was scheduled to run through April 30th. I find it very unlikely that BMW would terminate their lease support on either of these models before that scheduled termination date.

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CarMan@Edmunds · March 2003

Greetings viewer_x. I would be more than happy to help you out. If you were to lease a 2003 Honda Accord EX V6 through American Honda Finance Corp. this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00230 and 59%, respectively.

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CarMan@Edmunds · March 2003

I think that you have made a wise decision, hpowders. Cars do occasionally have problems, fortunately nobody was hurt when your air bag misfired. I would probably keep the car rather than take a major hit by getting out of the lease as well if I was in your situation.

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jonty12 · March 2003

I have 2 years left on a lease on a US spec car that I leased in TX more than a year ago. I may have to move back to Canada soon. The credit company has given me permission to take the car to Canada for the duration of the lease. Canada customs is telling me that as a Canadian citizen I have to import the car, resulting in duty and tax charges. In addition I have to convert it to Canadian spec. I told them that as a lease, it would only be in the Country temporarily and then returned to the US for lease return. In addition, as a lease, I am not the owner, and the owner is not Canadian. They claim it makes no difference. Car_man, do you know of any options I might have here to keep the car, keep making payments in the US, and just return it to the US when the lease is up?

clpurnell · March 2003

Just say that you are visiting until the lease is over then buy or lease a candian spec car.

jonty12 · March 2003

I thought of that, but then I thought about insurance. I won't be insured if anything happens to the car, as I'm sure my US insurance company would deny coverage if they knew I was in Canada for any extended period. I have a friend who sells insurance in Canada, and he does not think I can get Canadian insurance without at some point registering the car in Canada. I can't register the car without this "import" procedure. It seems harder than it should be!

clpurnell · March 2003

That sucks. I'm sure the import price would be pretty heavy. Can you sell your lease to some one via lease trader or swap a lease and then get a canadian car when you move. hope this works out.

CarMan@Edmunds · March 2003

Hi again Steve. Here is the information that you are looking for. If you were to lease a 2003 Jaguar X-Type 2.5 through Jaguar Credit this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00118 and 50%, respectively. The numbers for an otherwise identical lease of a 2003 X-Type 3.0L should be .00076 and 51%. Jaguar is running a "Sign and Drive" type promotion on the X-Type in your area right now. Through this promotion, you can take advantage of the aforementioned special lease money factors plus Jaguar will waive your first month's payment, lease acquisition fee, and security deposit, so you do not have to pay anything at lease signing. If you opt not to lease this car, Jaguar is offering 2.9% special financing for up to 60 months that may be combined with $500 dealer cash.

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CarMan@Edmunds · March 2003

Welcome aboard, jefhack. We're starting to sound like sports talk radio

. Let me begin by saying that you are much much better off waiting until August to get another vehicle. It will likely cost you a decent amount of money to get out of your Jetta lease right now. The only ways for you to do so would be to find someone who is willing to assume your lease, to just pay your remaining payments, or to purchase your Jetta and try to sell it on your own or trade it in on your next ride. Unfortunately, all of these options will likely end up costing you money.

As far as the Murano goes, Nissan's lease program for it will be different in August than it is now if you end up deciding to wait. If not, and you were to lease a 2003 Nissan Murano SL AWD (MSRP: $32,387 / Capitalized Cost: $31,765 - Edmunds.com TMV) through Nissan Motor Acceptance Corp. for 3 years with 15,000 miles per, your zero down, pre-tax monthly lease payment should be right around $510 or so.

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CarMan@Edmunds · March 2003

Ogbuffguy, the 2003 Mercedes-Benz C230K's lease money factor is lower than the 2003 C230 Sports Sedan's. For the same term, the factor for the latter would increase to .00250.

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CarMan@Edmunds · March 2003

Hgozzo, the monthly lease payment that you were quoted for the car that you mentioned sounds very reasonable to me.

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lmp180psu · March 2003

Car_Man, it has been interesting reading about all the ins and outs of leasing ( I think I actually understand it now!), and thank you for posting all the MF's and RV's for everyone.

I have one general question about the lease rates/money factors that manufacturers advertise. I know diff. manufacturers have diff. standards, but could you give me a general idea of what kind of FICO/credit score, a person would need to qualify for the lowest/advertised rates? Keep posting all this enlightening info!!!

CarMan@Edmunds · March 2003

Hey NLK. If you were to lease a 2003 BMW 540i through BMW Financial Services this month for 2 years with 12,000 miles per, its base lease money factor and residual value should be .00150 and 68%, respectively. The money factor for an otherwise identical 30 month lease of this car would be exactly the same, but the residual value would fall to 63%.

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