Lease Questions - Ask Here

CarMan@Edmunds · April 2003

Hi sbarber3. As you probably are aware, different states have different taxation policies for leased vehicles. It would be very difficult for me to keep track of all of these specific policies and any changes to them, so I usually hesitate to answer tax questions. You may be able to find out the answer to your question by visiting the Web site for your state's comptroller or by visiting the Web site for or calling your local Department of Motor Vehicles. Sorry that I couldn't be of any more help.

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CarMan@Edmunds · April 2003

Hello bgtees. Ford did begin advertising $5/day leases on the 2003 Mustang Coupe V6 and the 2003 Ranger Edge 2WD pickup when it introduced its new incentives program. These two leases are 4 years in length, allow for only 12,000 miles per year, and require that the consumer put 10% down. I usually advise consumers to put as little money down as possible when leasing. For an explanation why, check the last paragraph of post #6125 in the discussion. Having said all of this, the lease programs on both of these vehicles are decent. They really aren't the models that I would consider if I was going back to school and on a budget though. In that situation, I would strongly consider leasing a 2003 Honda Civic. Honda has an outstanding lease program on this car right now and it would not guzzle gas nearly as much as many Fords will.

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CarMan@Edmunds · April 2003

Sorry about that, automan227. You didn't mention the full MSRP of selling price of the car that you are interested in in your post. These pieces of information are necessary to calculate a lease payment. Still, the monthly lease payment that you were quoted for this car looks as though it is very reasonable.

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CarMan@Edmunds · April 2003

Hi again Nicole. Yes, I do have the information that you are looking for. If you were to lease a 2003 Nissan Altima 3.5 through Nissan Motor Acceptance Corp. this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00203 and 54%, respectively. The numbers for an otherwise identical 4 year lease should be .00240 and 46%. The only other incentive that is available on this car is 0.9% to 3.5% special financing.

Using the aforementioned lease data and the prices that you provided me with in your post, I come up with zero down, pre-tax monthly lease payments of $368 for the 3 year term and $353 for the 4 year term.

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CarMan@Edmunds · April 2003

Don't worry about it, ogbuffguy. You haven't leased a new vehicle yet

? Here is the information that you are interested in. According to the information that I have seen, if you were to lease a 2004 Lexus RX330 2WD without the Navigation or Rear Entertainment System through Lexus Financial Services this month for 4 years with 12,000 miles per, its base lease money factor and residual value should be .00220 and 50%, respectively.

If you were to lease a 2003 Mercedes-Benz C230 Sports Sedan through Mercedes-Benz Credit Corp. this month for 4 years with 12,000 miles per, its base lease money factor and residual value should be .00275 and 51%, respectively.

Both of the factors that I just mentioned assume that you qualify for the respective banks' top credit tiers.

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CarMan@Edmunds · April 2003

Hi gene1980. I haven't seen Toyota's April lease program for your area yet. Sorry that I couldn't be of more help.

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CarMan@Edmunds · April 2003

Hey z1128. Here is the lease info that you're looking for. If you were to lease a 2003 Honda Pilot EX, without leather, without the rear entertainment system, and without navigation 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 .00220 and 63%, respectively. The numbers for an otherwise identical 4 year lease should be .00210 and 55%. The lease program for the 2003 Pilot LX is exactly the same as the EX.

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ogbuffguy · April 2003

hey car man.....i already leased a mercedes c32 for myself already, this is for my family....are the lease rates for an rx330 the same for an AWD version without navigation and rear entertainment system for 48month/12k??

also can i have the rate for a mercedes E320 sport sedean for 36month/12k and 48months/12k?

both are for southern california

thanks for all your help

jaserb · April 2003

5 spd or auto? 3.0 or 4.0? Regular cab or extended cab? All Ford says is "very well equipped". Do you have any more info, and what is your opinion of the centennial lease program in general? They seem like pretty generous terms.

-Jason

colie74 · April 2003

Thanks so much Car_Man! Great info to work with. Hoping this streamlines my negotiation and I can get in and out of there quickly!!

Take care
Nicole

automan227 · April 2003

The MSRP of the car was $23,120.

Sorry for the confusion.

AS

tcmotorcity · April 2003

Car_Man, could you expand on your last Honda Pilot post and tell me the residual % and money factor for 39 months, 15K lease from American Honda - (Pilot EX-L)? I live in Michigan..not sure if the rates are different throughout the US.. Thanks.

TC

tuneful · April 2003

Car_Man and esteemed colleagues :-)

First-time car buyer or leaser here (in my 40's but have previously acquired "heaps" through relatives) and have begun to consider leasing. Reasons: low-mileage driver; next few years feels like it has some unknowns, such as possibly relocating and/or going back to school part-time; sticker shock from new cars (my inexperience) plus reading about the problems with them on Edmunds. A few questions...
1. I have read introductory articles on leasing but still feel in the dark about it. Is this typical? I'm not the best negotiator around; some people relish negotiation, I hate it (don't know if part of it is what I sometimes encounter as a solo female customer). What should I do to prepare, besides read the 300+ pages on this thread? :-)
2. You said Honda is offering excellent leases on Civics; I see that that's $159/48 mos., $999 down. Should I worry about leasing for one year beyond the warranty period? Also, would it make more sense financially to purchase this car at 1.9%/60 mos.? At least that way can keep or resell at end.
3. Is the Civic lease better, in your opinions, than the Accord lease? ($239/39 mos/$1575 down)
4. I like the Altima, what do you think of the value offered by that lease at $301/36 mos, 700 down -- is it as good as the Honda deals?
5. What do you think of the Saab 9-3 Linear lease at 299/36 mos with no downpayment?
Thank you...

martini4me · April 2003

Hi Car Man: Thanks for the info. I'm shaking up a martini for you right now! How do you find out that BMW is offering a rate of .0015 on the 2003 leases now? I mentioned that rate to the dealer and he just told me that it was incorrect. (and I can't just say "because car man says so!"...although I'm sure that carries weight in certain circles)! Should I just contact BMW financial services directly? That would make about a $22 per month difference in the payment. Thanks again!

z1128 · April 2003

Carman,thanks again for the April numbers. Went to the dealership today and they seem to be sticking to their initial word, which seems to be a good deal, and well below what some of the other dealers are quoting. Here are some of the specifics.

Honda EX, without DVD or Leather 36 month lease w/12,000 miles year with total out of pocket costs = 1,900. (I know you recommend 0 down, but all things considered I think this should be a good deal),

Final monthly pre-tax payment = 355.00

Should be delivered in early May.

Thanks again and do you think I should be looking for any hidden charges when I go pickup and sign the final papers?

mlattin · April 2003

I called NMAC to have them send me info on how they determined the "Adjusted Lease Balance" in regards to early termination on my '02 Xterra. While in their automated system, it said that my "payoff" amount was 22k, plus any applicable fees.

Does anyone know what these fees would be besides exsess mileage or wear and tear?

I'm only 9 payments into my 60 month lease, and am hoping to get out of it in another 6 months for 4k or less out of pocket. Does this seem at all feasable? I hear people talking about how expensive it is to terminate early, and I was just wondering if there was an average range of what people were having to shell out.

Thanks,
Megan

CarMan@Edmunds · April 2003

Ahhhh, I see, ogbuffguy. Congratulations on your new Benz. Fortunately, the residual values for a 4 year lease of the AWD version of the 2004 RX 330 would actually be 2% higher than the one that I just provided you with for the 2WD model. As far as the Mercedes-Benz E320 Sport Sedan goes, if you were to lease one through Mercedes-Benz Credit Corp. this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00275 and 66%, respectively. The numbers for an otherwise identical 4 year lease should be .00275 and 58%, respectively.

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krwest1 · April 2003

Car_man,

I'm looking for 36 month/36k mile money factors and residuals for the following cars:

2003 Sentra SE-R Spec V
2003 Mazdaspeed Protege
2003 WRX Sedan

I'm located in Northern Virginia.

Thanks in advance.

CarMan@Edmunds · April 2003

Hi Jason. I remember posting the exact Ranger model for someone a while back, but I can't seem to find the post now. I don't remember the exact model that the $5 a day lease is on right now, but I do remember that it definitely is a 2WD model. The lease is also for 4 years, with only 12,000 miles per year, and requires that consumers make a 10% down payment. Overall it is a decent deal, but not nearly as great as it initially sounds.

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CarMan@Edmunds · April 2003

No problem, Nicole. I am glad that I was able to help you out. Good luck in your quest for a new car.

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CarMan@Edmunds · April 2003

No problem, AS. This car's MSRP still doesn't change my opinion of your deal. I think that the lease that you were quoted is pretty good.

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CarMan@Edmunds · April 2003

Here you go, TC. If you were to lease a 2003 Honda Pilot EX-L without navigation through American Honda Finance Corp. right now for 39 months with 12,000 miles per year, its base lease money factor and residual value should be .00220 and 59%, respectively.

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CarMan@Edmunds · April 2003

Hi tuneful. Welcome to the wonderful world of leasing. You certainly are not alone. Many consumers are confused by leasing. There is a number of extremely informative articles on this subject here at Edmunds.com. Click on the following link to check them out: Edmunds.com Lease Articles. If you read a few of these pieces you should have a much better understanding of this subject. The main things to keep in mind when leasing a new vehicle is to focus on the vehicle's price first. The prices of leased vehicles can be negotiated just as if you were paying cash. Do some research about what a good price for the model that you are interested in should be and then comparison shop until you feel comfortable with the price that you are quoted. The other important piece of information to know when leasing is your vehicle's lease money factor. This is not always the easiest thing to find out, but if you ask me in this discussion I usually am able to give you a good idea of what most vehicles' money factors should be like. If you make sure that these two figures are reasonable then you can be fairly certain that you are getting a good deal.

I am not a big fan of leasing vehicles past their bumper-to-bumper warranty coverage. You can take advantage of the same special lease program for the Honda Civic and lease one for 36 or 39 months if you would like. The only difference would be is a slightly higher monthly payment because of the shorter term. The 1.9% special financing is also an outstanding deal. This might be the way that I would go if I was in the market for this car. Honda is providing much more lease support on the Civic than on the Accord right now, so yes the Civic lease is the better deal of the two. Having said this, Honda's standard lease program on the Accord is still very reasonable at this time.

Nissan also has a very attractive special lease program on the 2003 Altima right now. It is probably a little better than the Accord's current lease program and not quite as attractive as the Civic's.

Between the lease cash and special money factors that it offers, Saab almost always has one of the most attractive lease programs out there. The current lease on the 2003 9-3 Linear is no exception.

Please let me know if you have any other questions.

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CarMan@Edmunds · April 2003

Thanks for the drink, martini4me. I know that is BMW FS' base money factor because I have seen the actual bulletins that BMW sends dealers. I am not aware of any source of lease money factor and residual value data that is available to the general public. If the dealership that you are currently working with is unwilling to lease you this car using BMW FS' base factor, you may want to shop around at another BMW dealer or two to see if you can find one who is willing to do so, and still provide you with a comparable price on a similar car.

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CarMan@Edmunds · April 2003

That's great, z1128. I am glad to see that your negotiations are going well. Once you have agreed to a deal, the only things that I can think of that a dealer might try to do to pad it would be to try to slip in an ad fee or a doc fee at signing. Make sure that you don't let this happen if you have already agreed to a price. Also, some dealers try to mark up banks' base lease acquisition fees. If you lease through American Honda FInance Corp., and are not in the states of NY, CT, or RI, make sure that your acquisition fee is not any higher than $550. The only other things that I can think of to watch out for are the F & I pitches that you are likely to face at lease signing, like efforts to sell you an extended warranty, pre-paid maintenance, fabric protection, undercoating, life insurance, etc... Just make sure that you know exactly which of these you want, if any (the only one that is reasonable is an extended warranty and then only if the price is right), and stick to your guns.

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CarMan@Edmunds · April 2003

Ah ha, krwest1, you slipped in a message in the middle of one of my crazy posting frenzies

. I see that you are into fun drivers' cars. I would be more than happy to help you out. If you were to lease a 2003 Nissan Sentra SE-R Spec V through Nissan Motor Acceptance Corp. right now for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00061 and 51%, respectively. The MazdaSpeed Protege is an interesting question. Mazda currently has incentives on the regular Protege, but the MazdaSpeed version is not normally eligible for any of the regular Protege's special programs. I don't believe that it qualifies for Mazda's special lease program for the Protege either. I am not sure what its lease program should be like at this time. Unfortunately, I have not seen April's lease program for the Subaru WRX yet either. Sorry that I couldn't be of more help on your last two choices.

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the_heidi · April 2003

I leased a BMW 525. Thank you for your accurate numbers. As with martini4me, the dealer tried to mark up the MF. I called several dealers and stood my ground to get the .0015 MF. Without your information they would have marked this up without my knowing. Thanks again -Heidi

parker19 · April 2003

got a quote to lease 2003 saab convertible auto, non sport 12k/36 month .... 443 a month, 5100 which includes tax and everything ..... does this sound like a bad deal ... what's a fair deal ... thanks

wowwabbit · April 2003

hyudai GLS model with ABS brakes dealer said $19,500 which includes $1000 rebate. Good or bad price? Thanks hank

jcwla · April 2003

Hi! I sent this to you by e-mail but was told it was better to post it on here:
I would like a 48-month lease at 12K miles/yr. with nothing down but the "drive off," assume best creditworthiness, on a 2003.5 Infiniti G35 Sedan w/automatic transmission, Luxury Leather, Winter Package, Premium Package, Wood Package, Body-Color Splash Guards (4-piece set) and Trunk Mat w/Full Size Spare Tire. Carsdirect.com quotes a price to buy w/these features at $31,461.

I have a lease quote from a non-dealer at $469/month including everything, which seems seriously high. The dealer I spoke with here in SoCal told me not to bother coming in, they can't beat it. Am I missing something or is this way too high, and if so where should I go for better?

Thanks!
-- jordan

nale · April 2003

Hi, I've been quoted the following for a 2003 Volkswagen Jetta GLS 1.8T automatic with Monsoon/ESP/Cold Weather:

$21,750 (Invoice 20,921, TMV 21,042, MSRP 22,845)
36 month lease, 15k/year
$348.48 monthly payment
$12,336 residual
0.0014 money factor

What do you think? The dealer is firm on the price. Oh, and I am in the Kansas City area.

maxman222 · April 2003

Do you have the residuals and MF's for 36 month / 12k/year on the BMW 325xi and 330xi in CT?
Are these numbers limited specials?

rxke · April 2003

Hi Car man
Could you please provide me with the money factor and residual numbers for the A4 1.8 quartro sedan.
The lease would be for 12,000 or 15,000 miles on a 39 month lease in New York. Also are there any dealer or customer incentives?

Thanks for your help. You have helped me do well in the past.

gperr · April 2003

Car_man,

Hi again. Another friend is looking for an Acura TL (non-nav non type S). can you please provide the April Residual and MF for 36, 39, and 48 months, 12K/year in South Jersey. Thanks again,

Gregg

tgp1810 · April 2003

What is the current residual and MF on the 2004 Grand Prix GTP w/ Comp., 36 months 15K/year in Mich.

Thanks Car_Man.

bnadroj · April 2003

Hi Car_Man,

I'm interested in leasing a 2003 Civic Si, either 36 or 48 months at 12k miles/year. Message 5780 quoted a 48mo/12k residual of 52% and a money factor of .00078. Do you know if these rates are still valid, and if they're likely to change after April? I'm in Los Angeles if that makes a difference.

Also, do you know what credit score AHFC uses to qualify applicants?

Thanks in advance.
Jordan

gpwatfrd · April 2003

Hey CARMEN, I am considering leasing the G35c while having the option to finance the back end. Do you know what the residual value is for the coupe w/leather. The lease I am considering is 39m 12k 0 down on cap. The full MSRP is $34,995 so is the residual a percentage of the full MSRP or the discounted price. If this sounds like a stupid questions I do apologize.

Thanks You in advance

tuneful · April 2003

for your very helpful response.
I am "studying" hard and if I have any other Q's will let you know :-) -- tuneful

clone2 · April 2003

What are the current lease numbers on the mazda6 S? (An earlier post indicated the numbers for the 6 i) Thanks!

safari_in_cali · April 2003

Car_man,

I am considering leasing a 325i for 36 months. Most of the ads that I saw only offer 10K miles per year, while I would need 15K. What would be a fair price to pay for the extra 5K miles and how is it going to affect the monthly payment? Also, can you tell me the residual percentage for that model, as well as the current money factor offered by the BMW Financial Services in Southern California?

Is it reasonable to try to negotiate for a zero downpayment or should I always expect to pay some money down (cap reduction)?

Someone told me that I should ask the dealer to pay all the taxes with the first payment instead of spreading them over the lease term because it will lower the total amount I will be paying over time. Is that true?

Thanks for your help in advance, it's much appreciated.

hcagan · April 2003

Carman,

Can you please provide me with the current residuals and MF for 15,000 mile leases on both the 2.7 & 3.0. Thanks for your help

CarMan@Edmunds · April 2003

No problem, Heidi. I am glad that everything worked out well for you. Good job. Enjoy your new car!

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CarMan@Edmunds · April 2003

Hi Jordan. Unfortunately, I have not seen Infiniti's April lease program yet. Sorry that I could not be of more help.

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CarMan@Edmunds · April 2003

Hi nale. Let me begin by saying that the lease money factor that you were quoted for this car is right on the money. In your post you mentioned that the dealer that you are working with is firm on this car's price, but you never mentioned exactly what they are charging you for it. This is an important piece of informaiton to know. For now, I will calculate a sample lease payment on it for you assuming that the Edmunds.com TMV is the selling price. According to my calculations, if you were to lease a 2003 VW Jetta GLS 1.8T Sedan (MSRP: $22,845 / Capitalized Cost: $21,042) through VW Credit this month for 3 years with 15,000 miles per, your zero down, pre-tax monthly lease payment should be right around $289. The payment that you were quoted definitely sounds high to me, even if it includes tax. Not to mention the fact that taking the $750 dealer cash that VW has on this model at this time into account you should be able to negotiate a lower price on this car than Edmunds.com's TMV. By shopping around or haggling a little more with this dealer, you should be able to get this car at invoice or even a couple of hundred dollars below.

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CarMan@Edmunds · April 2003

Greetings maxman222. BMW is offering special lease money factors on the 2003 325xi & 330xi right now. However, they have this isn't exactly a limited time special given the fact that they have had support on these models for many months now and I don't expect it to go away in the near future. According to the latest informaiton that I have seen, if you were to lease a 2003 BMW 325xi 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. The 2003 330xi should have the exact same base lease money factor and residual value.

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CarMan@Edmunds · April 2003

Hi again rxke. Here is the information that you are looking for. If you were to lease a 2003 Audi A4 1.8T Sedan with quattro through Audi Financial Services this month for 39 months with 12,000 miles per year, its base lease money factor and residual value should be .00115 and 57%, respectively. Its 12,000 miles per year residual value should be 2% higher. Audi is also offering 1.9% special financing on this model for up to 60 months, which is attractive as well. It is not offering any cash incentives on the 2003 A4 at this time, but in your state Audi will waive the lease security deposit without any increase in the base lease money factor through the end of the month.

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CarMan@Edmunds · April 2003

Hi again Gregg. If your friend were to lease a 2003 Acura TL through American Honda Finance Corp. prior to the end of the month, its 3 year 12,000 miles per base lease money factor and residual value should be .00135 and 59%, respectively. The 39 month factor would be the same, but the residual would fall 1%. The 48 month factor would increase to .00190 and residual value would be 52%.

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CarMan@Edmunds · April 2003

Hi tgp1810. General Motors publishes lease interest rates, rather than money factors like most other banks do. In order to convert a lease rate into an approximate money factor, you need to divide it by 2400. If you were to lease a 2004 Pontiac Grand Prix through General Motors Acceptance Corp. this month for 3 years with 15,000 miles per, its base lease rate and residual value should be 3.5% and 47%, respectively.

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CarMan@Edmunds · April 2003

Hey Jordan. Yes the money factor and residual value that I quoted in an earlier post are still available on the 2003 Honda Civic Si. I am not sure what AHFC's exact credit score requirements are for this program. This lease program is currently scheduled to run through April 30th. It is difficult to say what Honda will do with this car's program after that date. I suspect that I will remain fairly similar to what it is like right now, but only time will tell for certain.

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CarMan@Edmunds · April 2003

Hi gpwatfrd. I haven't had an opportunity to take a look at Infiniti's April lease program yet. Sorry that I shouldn't be of more help. Your second question is not a silly one at all. As far as vehicles residual values go, most manufacturers base their vehicles' residual values on a percentage of their full MSRPs including destination charges and any options that may be residualized.

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