Lease Questions - Ask Here

neil55 · May 2003

Thanks for your response.
You are a fantastic resource for anyone looking at getting a new car. A lot of my questions are being answered by your responses to other queries.
Thanks again.
Neil

ks10596 · May 2003

Carman,

Can you provide the money factors and residuals for the Altima and Maxima based off of a 36 month 15K/year lease?

Thanks in advance!

CarMan@Edmunds · May 2003

You're very welcome, Raj. Good luck in shopping for your new car.

Car_man
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CarMan@Edmunds · May 2003

You're welcome, too, Neil. Thank you for the kind words.

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CarMan@Edmunds · May 2003

Hello ks10596. Nissan's lease program for the Altima and the Maxima vary by trim level. It would be a big help if you could tell me exactly what models you are interested in, i.e. the 2003 Nissan Maxima GXE, 2003 Nissan Altima 2.5 S, etc... Once I have this additional info I will be able to help you out. Talk to you soon.

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ks10596 · May 2003

Carman,

For the Altima I am interested in the 3.5 SE and for the maxima I am interested in the SE also. Can you give me for model years 2003 and 2004?

Thanks again!

taxd00d · May 2003

Sorry about that CarMan. I meant Money Factors and Residuals for 24/36/48 months at 15k per year for the 2003 Volvo 2.5T S60 AWD.

No station wagon for me, yet!!!

Thanks,
Taxd00d

rwright · May 2003

Thanks Car_Man!!

I'm sorry that I wasn't clear in my original post - I need the 2004 BMW 325Ci lease numbers (residual and money factor) for 12,000 miles per year for 36 months.

Thanks again.

garyw · May 2003

Carman - thanks for the info, Yes, I would very much like you to work up a sample lease payment on the lease.

We want a 3 year/12K mile program on an EX-L with an MSRP of $28,860. No taxes in Oregon. Recall that the dealer quoted:

36 months
Cap price = $27,790
Miles = 12k per year
Residual=17,893
Money=.00255
Payment $348
Down = $2500

z1128 · May 2003

Hi Carman, can you please provide the May numbers (residual and MF) for the following:

Honda Pilot EX (no leather, dvd, or navigation)
12,000 Miles
36 months

Thanks!

dpriwin · May 2003

CarMan:

First, you sure have a great attitude in answering all of our questions. Kudos!

I am finding better rates from lease brokers than from the manufacturer. The manufacturer is not providing any incentives and the model I am looking for is in short supply (Mercedes CLK 500). Any reservation about dealing with a broker?

Also, the broker says that they find and deliver the car to me. Is that common? (I'd love not having to negotiate with the dealer.)

Thanks again
Daniel

911c4 · May 2003

hi Carman,

Would you please provide the MF and Residual Value for the following?

2003 Porsche 911 C2
10K Miles
24/36 Months

Thanks in advance

alex90 · May 2003

Hi Carman,

Can you please provide lease information on a 2003 Pathfinder SE fro 36 & 39 months. 12,000 miles. Also what do you think of there current lease special.

Thanks!

2003 Pathfinder SE 4x4 Auto w/Popular Package  39 MONTHS  $318/MONTH  $1,975/INITIAL PAYMENT

bwia · May 2003

dpriwin
Some years ago I leased from a broker. They were so nice they even delivered the car to my door. But here is the catch.

At the end of the least term they nickled and dimed me and charged me for every paint chip. I refused to pay the confiscatory charges but before I could blink an eye, a derogatory entry had appeared on my credit report.

There is an interesting article in the June's issue of Car and Driver which basically supports my assertions--leasing is like gambling. Sometimes you win but you are more likely to lose

hitdogg42 · May 2003

Hi Car_Man,

Thanks for the mounds of information you provide for all of us.

Gotta a quick question for you, when you tell us the money factor and residual values for cars to help us compute the monthly leases, you alway say if you use ___ financing (i.e Honda Motor Financing). I know that as a consumer we are free to shop the finacing and not use dealer's choice. Is it worthwhile to shop for a different lender? And if so, could you please provide some of the different companies (banks) you would recommend. Thanks.

jeffmust2 · May 2003

Car_Man -

I'd like your help in determing residual and money factor numbers for a new $22,860 msrp CR-V EX 4WD AT. I think it can be had for $21,500 plus T&L.

Mileage desired is 15k/year, term to be 36/39/48 months, no money upfront beyond T&L & doc fee. My relative's FICO is mid 700s and she's coming off a MDX lease with Am Honda Finance.

In advance - thanks!

lponz7 · May 2003

CarMan,

Below is your response on Audi rates which I had also inquired about. Since the quattro and non-quattro versions are obviously different, could I also trouble you for the MF and RV on the 1.8T--12K/36 months--on the chance that they're not the same as for the 3.0? Many thanks for all of your help.

Hey bama60. More Audis huh

. OK, if you were to lease a 2003 Audi A4 1.8T Sedan without quattro through Audi Financial Services this month for 3 years with 12,000 miles per, its base factor and residual value should be .00095 and 56%, respectively. The numbers for an otherwise identical lease of a 2003 Audi A4 3.0L Sedan without quattro should be .00070 and 52%. Lastly, the numbers for an otherwise identical lease of a 2003 Audi A4 3.0L Sedan with quattro should be .00130 and 56%.

lponz7 · May 2003

What I meant was MF and RV for the 1.8T Quattro. Obviously, you've already given us the numbers for the FWD. Sorry for the confusion my original (and somewhat less than clear) post may have caused

CarMan@Edmunds · May 2003

Thanks for the additional information, ks10596. If you were to lease a 2003 Nissan Altima 3.5 SE through Nissan Motor Acceptance Corp. this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00202 and 53%, respectively. The 2004 Altima is not out yet so I obviously can't give you any information on the '04's lease program.

As far as the Maxima goes, if you were to lease a 2004 Nissan Maxima SE through NMAC this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00183 and 55%, respectively. The numbers for an otherwise identical lease of a 2003 Maxima should be .00116 and 51%.

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CarMan@Edmunds · May 2003

No problem, Taxd00d. No wagon for me yet either, though I must admit that one of my vehicles is an SUV

. OK, as I mentioned earlier, if you were to lease a 2003 Volvo 2.5T S60 AWD through Volvo Finance right now you will have to use its standard lease money factors because Volvo has replaced its lease support on this model with straight dealer cash. Volvo Finance's base standard factor is currently around .00359 for all of the lease terms that you mentioned. The 24, 36, and 48 month 15k residual values for this car are presently 56%, 46%, and 38%, respectively. Don't forget about the $4,500 dealer cash that Volvo replaced its lease support with. You can use this money to negotiate a lower capitalized cost. Also, you may find that you are better off using this cash to reduce the car's price and financing or leasing it through a bank other than Volvo Finance.

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CarMan@Edmunds · May 2003

No big deal, rwright. Here's the '04 info. If you were to lease a 2004 BMW 325Ci through BMW Financial Services this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00220 and 64%, respectively.

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CarMan@Edmunds · May 2003

You're welcome, garyw. According to the latest information that I have seen, if you were to lease a 2003 Honda Odyssey EX-L (MSRP: $28,860 / Capitalized Cost: $27,790) through American Honda Finance Corp. this month for 3 years with 12,000 miles per, your zero down, pre-tax monthly lease payment should be right around $371. With the $2,500 down payment that you mentioned (which I personally advise against) your payment should drop to around $296.

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CarMan@Edmunds · May 2003

Hi z1128. 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 .00210 and 63%, respectively.

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CarMan@Edmunds · May 2003

Thanks for the kind words, Daniel

. I am not surprised that you are finding banks or brokers that are able to provide a more attractive lease program on the Mercerdes-Benz CLK than Mercedes-Benz Credit Corp. has right now. MB has not been providing any sort of support on CLKs and its standard lease program is very beatable. I have never personally used a broker, but suppose that I would not have a problem using one if they were able to get me the best deal without any strings attached. Ideally, it would be great if you knew someone who had used this company to lease a vehicle before so you could hear what they thought of working with them. If not, just make sure to look over any contracts that you need sign very carefully before agreeing to any deal. The one thing that you may need to look out for is getting screwed at the end of your term with all sorts of little charges for excess wear and tear. Independent banks, particularly brokers, tend to be much more strict than manufacturers' captive finance companies when evaluating the condition of vehicles at lease end. I suppose that this is because automakers have a vested interest in keeping you as a happy and hopefully a loyal customer, while independent banks and brokers already have your money and won't miss your repeat business as much. Also, if I was in your situation I think that I would get a quote from this broker and take it to your local Mercedes dealership. It is extremely possible that your local dealer will be able to beat or at least match the deal that you are being quoted from the broker.

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CarMan@Edmunds · May 2003

Hi 911c4. Here's the info that you're hunting for. If you were to lease a 2003 Porsche 911 Coupe with a manual transmission through Porsche Credit Corp. this month for 2 years with 10,000 miles per, its base lease money factor and residual value should be .00365 and 59%, respectively. The numbers for an otherwise identical 3 year lease of this car should be a much more reasonable .00250 and 56%. The numbers for a 2003 911 Coupe with Tiptronic would be 3% lower.

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CarMan@Edmunds · May 2003

Hey alex90. Nissan's lease program on the Pathfinder is usually fairly attractive. This month is no exception. If you were to lease a 2003 Pathfinder SE 4WD 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 .00043 and 51%, respectively. The numbers for an otherwise identical 39 month lease should be .00026 and 50%. In addition to these attractive lease money factors, Nissan is also providing $500 lease cash on the 2003 Pathfinder that may be used to negotiate a lower capitalized cost. Overall, I would say that Nissan's advertised lease on the 2003 Pathfinder is pretty good. However, like with most advertised lease payments, there may still be a little room left for negotiation, price-wise.

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dpriwin · May 2003

Thanks CarMan and BWIA.
You both mention the same issues at lease end when leasing from a broker. Your suggestions are very useful and I will dig deeper into this issue.
Daniel

jpierce26 · May 2003

Hi Car_Man,

I was wondering if you would mind checking on the following:

2003 BMW 330XI
MSRP: 45,120 (with options)
Whole: 42,500
12,000 miles a year
36 Month Lease

I received info from you on a 325XI, but wasn't sure if the residual value would be the same as well as the money factor. You had noted 61% and .0015.

Thanks in advance,

Jeff

03variantq · May 2003

Carman, Can you provide me with Residual & MF for 39 & 48 months for a VW Passat GLS wagon, 5spd.? Thanks,
Q

03variantq · May 2003

Carman, could you also give me MF/Res/incentives on a Volvo V70 T5 manual for 48 mo/12K yr. I didn't tell you the mileage for the Passat wagon, 12K is fine for me.
Thanks, Q

shelly17 · May 2003

Car Man - Please help me solve the mystery in leasing this new MDX. I chose the 2003 MDX with Touring and Rear Entertainment System. I am putting 2,500 down for a 48 month lease on a MSRP of $40,300. My lease caluclates to $525 per month with 12,000 miles per year. Is this a good deal? I cannot seem to find a better price and this is my 3rd Acura dealer.

knr5 · May 2003

Thanks a lot Car_man (and clpurnell) for all your input! I am now a proud lessee of a Black (with Charcoal leather interior), 6-speed MT G35 Sport Sedan, with Premium, Winter, and Aerodynamic packages. The lease payment is right about what Car_man suggested, and I did NOT put any money down as both of you advised. I am very happy with the car - have nearly 400 miles on it over three days because of three longish trips.
Great job, guys! Keep it up!!

CarMan@Edmunds · May 2003

Hi hitdogg42. On supported vehicles it is almost always in one's best interest to lease through manufacturers' captive finance companies. However, one can often lease vehicles that are unsupported or do not have a lot of lease support for less by going through a different bank. Dealerships have computer systems that enable them to search the country for the best available lease deals on models. They are usually able to tell consumers where they will be able to get the lowest payment. Unfortunately, it is difficult for consumers to dig up this information on their own.

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CarMan@Edmunds · May 2003

Hey Jeff. If your relative were to lease a 2003 Honda CR-V EX 4WD through American Honda Finance Corp. this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00210 and 59%, respectively. The money factor for a 39 month lease of this truck would be the same, but the residual would fall to 56%. The numbers for a 48 month lease should be .00200 and 53%.

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CarMan@Edmunds · May 2003

You're right, lponz7, Audi does indeed have different lease programs for models with and without quattro. If you were to lease a 2003 Audi A4 1.8T Sedan with quattro through Audi Financial Services this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00115 and 59%, respectively.

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CarMan@Edmunds · May 2003

You're welcome, Daniel.

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CarMan@Edmunds · May 2003

Hey Jeff. It's a good thing that you asked. For the month of May, BMW actually enhanced its lease program for the 330. If you were to lease a 2003 BMW 330xi through BMW Financial Services this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00120 and 61%, respectively.

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CarMan@Edmunds · May 2003

Hello 03variantq. Are you interested in the 4-cylinder or the V6 Passat GLS Wagon? Once I have this additional info I will be able to help you out.

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CarMan@Edmunds · May 2003

03variantq, on the Volvo, I need to know if you are interested in the 2003 or the 2004 model. Volvo has terminated its lease support on '03 models and replaced it with straight dealer cash. One might be better of purchasing a 2003 model with cash, financing it, or leasing it through a bank other than Volvo Finance. They do have lease support on the 2004 model though. I can give you an idea of what the program should currently be like for either one, just let me know.

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CarMan@Edmunds · May 2003

Hi shelly17. When evaluating a lease, it is important to know the vehicle's capitalized cost. Its cap cost is essentially how much money you are paying for the vehicle that you are interested in. Remember that the prices of leased vehicles can be negotiated just as if you were paying cash for them. For now, I will calculate a sample lease based on a typical 2003 Acura MDX Touring with the rear entertainment system to give you an idea of approximately what it should cost to lease one. According to my calculations, if you were to lease a 2003 Acura MDX Touring w/RES at full MSRP ($40,300) through American Honda Finance Corp. this month for 4 years with 12,000 miles per, your zero down, pre-tax monthly lease payment should be right around $512. So, the $525 per month that you were quoted would be pretty good IF you weren't putting any money down. I realize that dealers are hesitant to provide discounts on the MDX, but the your deal still looks to be a little on the high side to me.

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03variantq · May 2003

This is my problem. I have a vehicle to trade and I am approximately $5,000 upside down. I am looking to lease a vehicle for 3-4yrs, 12K/yr, and try to bury some of my out-of-equity amount. I am trying to do this with no more than $2,500 cash and stay in the $450/mo range. I was interested in the Volvo S60 because they have $4,500 dealer cash available and are selling at or close to invoice. The problem there is that Volvo no longer has any lease support on the 2003 models because of the incentive money. Does anyone have available the residuals and MF's for outside lenders on this vehicle? I am looking at a 2003 S60 T5 automatic..... or any other vehicle that will get me to where I need to be. Any other suggestions???? I am open to anything. By the way, my trade is a 2002 Dodge Ram QC, 4.7, auto., sport, leather, infinity, etc... nice truck but with 32K miles.

CarMan@Edmunds · May 2003

No problem, knr5. Congratulations on your new car! I am glad to see that everything worked out well for you. Thank you for taking the time to come back and let us know how everything turned out. Enjoy!

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jeffmust2 · May 2003

Thanks Car_Man! Just what I was looking for.

damish003 · May 2003

Hiya Car_Man!

I need your thoughts on a lease for a 2003 Subaru Outback Sport.

36 months
15k/year
0 down, except for first month, acquisition fee, about $700

Currently a $750 manufacturer to dealer incentive is in effect, according to Edmunds. The one I'm looking at has MSRP of $20,511 with options. The dealer and I have not discussed price, just being sure vehicle will be a good fit for me to this point. Dealer knows I'll likely lease, as I'm coming off one on a Jeep next month. Has quoted me $262/month for 36 months. Plugging in TMV numbers into Edmunds calculater, a 36 month payment should be quite a bit higher. Could you get me the actual residual and money factor, assuming a FICO of 730+? Wondering if dealer is just lowballing for some reason, or if it's the opportunity of a lifetime. Thanks!

alanek · May 2003

Car Man
Can you tell me what I might be expected to pay for both a 39 and 48 month lease on an Acura MDX(Touring w/Nav and Entertainment System)no down payment and 12,000 m/year?. The dealer told me he is selling me the car at MSRP of 42,500.
Does Acura have a deal with a refundable damage deposit like Lexus? He said he never heard of it.

Thanks in Advance
Alan

CarMan@Edmunds · May 2003

No problem, Jeff.

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luvmybabes · May 2003

Help. I have a 98 Dodge Caravan with quite a bit of negative equity (loan) and want to purchase a new Toyota Sienna. Can you roll negative equity into a new lease or do I need to do a traditional loan?

clpurnell · May 2003

Hey congrats knr5 and welcome to the infiniti family!!!

bama60 · May 2003

Well, I thought everyone might enjoy this. At least it should make you feel good about the car deals most of you are getting. I have researched the lease parameters and invoice price for the BMW 325i quite extensively over the last several weeks (thanks Car Man!). I test drove a 325i and decided to ask for a "best" lease quote from my salesman. The car in question is a 2003 325i, automatic, metallic paint, leather, premium package, and sport package. MSRP is $35795, invoice $32845, and TMV $34522. I asked for a lease quote assuming 3 years, 12k miles per year, with no money down. Salesman calls with a quote of $525 per month! I asked what he was using for money factor, he says .0019. I point out the actual BMWFS money factor is .0015. He said yes, that is the base money rate, but the finance group has to make money too! Residual they used was 61% which is correct. I asked how they computed the CAP cost. They gave me $500 off MSRP, added the $525 lease acquisition fee, and then added on $120 for floor mats (can you believe it, $35k and they are charging me for floor mats). If you figure in the additional dollars the money factor adds ($23 per month, $830 over 36 months), I would actually be paying about $400 OVER MSRP! When I told him I was also looking at the Audi A4 he said price-wise they wouldn't even try to compete with the Audis and Acuras of the world. He said they have no problem selling every BMW they get. He called me later and said for me to come in and talk to the Salesmanager and the finance people and maybe we could come to an agreement. I told him I was looking for $450 a month so we are WAY apart. I guess I'll see what happens next week. I plan on visiting my Audi dealer to see if they are a little more cooperative. I'm just looking for a fair deal for both parties. I think $1200 over invoice is pretty fair given what I have seen on this board.

jpierce26 · May 2003

I had a similar experience, except I did mine negotiating over two days. I went in and negotiated the car first then the lease on another day.

BTW: I have on order a 2003 325XI, NAV, SP, CWP, PP, Xenon, H/K Upgrade and dealer installed Garage door opener. I should see it around 6/10/03

The sticker was $38,933 and was able to get the car at $36,788, which is $1,124 over invoice. I went back another day to talk about the lease. He offered me .61 Residual Value, and .0019 for the money factor. I told him I wanted .0015 for the money factor. (thanks to Car_Man) He came back to me with their final offer of .0017 Money Factor.

So I thought about it and took it. I figured it is about $400 over the course of a three year lease. And I did well with the car cost. So I figured it was an OK deal.

The key for me was to be happy about the decisions. People on these boards will say you should go for $500 over invoice and take nothing more. But I find that impossible. I could have drove 1 1/2 hours away to find another dealer to beat the deal that I had locally. Was it worth my time for $400? I did not think so.

Just my thoughts.

Jeff

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