Lease Questions - Ask Here

nas43 · June 2003

Car_Man,

Could you tell me the June lease parameters for an Audi A4, 3.0, both quattro and non-quattro config for 36/12k? I live in Alabama.

Thanks!

tammyb6 · June 2003

Carman,
Thank you for the information. I'm glad to see that the money factor went down!!!!!!

Thanx again,
tammyb6

msc5 · June 2003

Hi Carman,
     My saab 9-5 lease is coming to an end. I went to the dealership to lease the same car and the payments I was quoted were much much higher than what I am currently paying---#s are supposedly very different than when I leased in 2000. I negotiated to pay slightly over invoice for the 9-5 aero and I am aware I get $2000 off from saab and another $500 off for customer loylaty. However, the residual they are quoting me seems low (48% for 36 month lease) and the money factor seems high. Can you please give me the correct figures for a 2003 Saab 9-5 Aero for a 36 month lease, 15,000 miles. I think they are trying to take me on these numbers.
     I went in to Audi and BMW dealerships and without even having done any homework and with no negotiating at all I was quoted much better lease payments on the 2003 A6 sedan (base model) and BMW 530i. If I can't get the Saab cheaper than these other cars, then I plan on leasing either and Audi A6 sedan or the BMW 525 or 530i. Can you please provide me with the current numbers (residuals and money factors) these manufacturers are using for their lease programs.
     1. 2003 Audi A6 sedan (both basemodel and 2.7t) for 36 months at 15000 miles.
     2. 2003 BMW 525 and 530i ---36 months for 12,000 and 15,000 miles.
           Thanks so much

petrie3 · June 2003

Do you have the numbers for a lease of 48-60 months on the new 2004 A8L? Money factor, residual, etc. Thanks again!

msc5 · June 2003

Carman,
While trying to negotiate the price of a car prior to setting lease terms, I was shooting for a certain amount above invoice using the info. on this site as guidance. One dealer agreed to $500 over invoice for the car and all options. However, his invoice number was higher than the invoice I calculated using the numbers on this site. When I asked to see his invoice the difference in price was coming from a $250 advertising fee and a $150 prep and handling fee on his invoice. I refused to pay these and walked. I know the destination fee will be included but can these other miscellaneous fees be negotiated out of the price of the car. By the way, it was a Saab dealer who demanded on including the ad fee and prep fee in the invoice price. But I'm also looking at an Audi A6 sedan and BMW 525 or 530i. Thanks for your guidance.

kyfdx · June 2003

That dealer prep fee is on every Saab invoice. Every Saab invoice that I've seen also has some type of advertising fee, that I think is dependent on region. These are legitimate fees that the dealer has to pay, but they never show up on Edmunds invoices. I think the dealer prep fee does show up on the invoice price at a competitor's website that begins with a K.

regards,
kyfdx

CarMan@Edmunds · June 2003

Hi stvchang. Here is the information that you are looking for. If you were to lease a 2003 Acura TL 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 .00093 and 58%, respectively.

If you were to lease a 2003 Audi A4 1.8T Sedan with quattro through Audi Financial Services this month in New York for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00085 and 59%, respectively.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · June 2003

Hello 330ifan. According to BMW's June lease program, if you were to lease a 2003 BMW 330i through BMW FS this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00120 and 59%, respectively. The numbers for an otherwise identical lease of a 2003 BMW 540i should currently be .00120 and 53%. If you were to lease these cars with only 12,000 miles per year, the residual values would be 2% higher. With only 10,000 miles per year, they would be 3% higher. I have not heard anything about BMW waiving the first month's payment on leased vehicles, but I will make some calls to see if that is indeed the case.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · June 2003

Hey ncjudge. Convertible season is in full swing, now if it would only stop raining

. Let's take a look at the lease programs for the two cars that you mentioned. If you were to lease a 2003 Saab 9-3 Convertible through Saab Financial Services Corp. this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00014 and 45%, respectively. When speaking with dealers about leasing this car, keep in mind that Saab is providing $4,000 lease support on it that may be used to negotiate a lower capitalized cost. The 2003 9-3 Arc Sedan's numbers are .00146 / 53% with $2,000 lease cash.

In order for me to give you an idea of what the lease program should be like on the 2003 Audi A4 Cabriolet right now, I need you to tell me if you are interested in the 1.8T or 3.0L version since they have different lease programs.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · June 2003

I see that you slipped in a post during one of my question-answering frenzies, Kevin

. In order for me to give you an idea about what this car's lease program is like, I am going to need you to tell me how long you plan on leasing it for and how many miles per year you need. I am not aware of any Web site that provides this sort of lease data to the general public free of charge, so unfortunately you are not going to be able to look it up on your own.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · June 2003

Hi fredmcmurray. I haven't seen Infiniti's June incentives or lease programs yet. I may have the information that you are looking for by the end of the week though. Please feel free to check back with me then with a quick reminder and I will fill you in on what I have been able to find out.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · June 2003

You're very welcome, mxpro738. Yes, the 2003 BMW 330i is eligible for 2.9% special financing for up to 60 months in June.

Car_man
Host
Smart Shoppers / FWI Message Boards

michaellno · June 2003

Car_Man, I'll take the lease residuals on the 1.8T for 36 and 48 months, 12K and 15K per year. I've got the salesman looking into it as well, but want to compare his figures with yours.

Thanks!

CarMan@Edmunds · June 2003

Thanks for telling me what state you are in, nas43. As you have probably read, that information is important because Audi's lease program on the 2003 A4 varies regionally this month. OK, so if you were to lease a 2003 Audi A4 3.0L Sedan with quattro through Audi Financial Services in the state of Alabama this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00115 and 59%, respectively. The numbers for an otherwise identical lease of this car without quattro should be .00095 and 56%.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · June 2003

You're welcome, tammyb6. I am glad that I was able to help you out.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · June 2003

Hi msc5. Unfortunately, the world of leasing is very different than when you leased your last car back in the year 2000. Many companies have been forced to take huge losses from residual value exposure and as a result have become much more conservative in the residual values that they publish. If you were to lease a 2003 Saab 9-5 Aero Sedan through Saab Financial Services Corp. this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00026 and 48%, respectively. The numbers for an identical lease of the 2003 Audi A6 3.0L Sedan with quattro should be .00025 and 55%. The numbers for an identical lease of the 2003 Audi A6 2.7T Sedan should be .00050 and 52%. The numbers for an identical lease of the 2003 BMW 525i should be .00120 and 57%. Lastly, the numbers for an identical lease of the 2003 BMW 530i should be .00120 and 55%. If you were to lease any of the Audi or BMW models that you mentioned with only 12,000 miles per year, their residual values should be 2% higher.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · June 2003

No problem, petrie3. Let me begin by saying that it is a bad idea to lease any vehicle for 60 months. That is a very long time and in this particular instance, Audi's lease money factor for that term is more than twice as high as its 4 year term. If you were to lease a 2004 Audi A8L through Audi Financial Services this month for 4 years with 15,000 miles per, its base lease money factor and residual value should be .00183 and 52%, respectively.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · June 2003

Hello msc5. Rather than worrying about all of the little fees that dealers try to tack onto deals, try to concentrate on the big picture, the total amount of money that you are going to have to spend to drive off in the vehicle that you are interested in. Get your dealer to give you an out-the-door price quote that includes all of the random fees, either with tax in the true sense of the phrase or without tax. Once you have this figure compare it to similar figures from other dealers in your area of ones that have been mentioned on the Web and go with the dealer that gives you the overall best deal. It doesn't matter what sort of fees a dealer adds to your vehicle's price if they have the lowest total price. This is the best way to look at vehicles' prices when shopping.

Car_man
Host
Smart Shoppers / FWI Message Boards

mava · June 2003

Hey Car_Man!! Thanks again for the numbers (the second time around). I'm gonna pick up this bad boy at the end of the month. I'm hoping that by the end of the month and Q2 for that matter, I'll be able to leverage additional discounts towards my Cap Cost.

Thanks again,

Mac

CarMan@Edmunds · June 2003

Hi michaell. If you were to lease a 2003 Audi A4 1.8T Cabriolet through Audi Financial Services this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00155 and 50%, respectively. The numbers for an otherwise identical 4 year lease of this car should be .00165 and 43%. The 12,000 miles per year residual values for this car would be 2% higher than the ones that I mentioned.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · June 2003

No problem, Mac. Good luck in your quest for a new truck.

Car_man
Host
Smart Shoppers / FWI Message Boards

nas43 · June 2003

Car_Man,

I just wanted to confirm the A4 3.0 non-quattro lease parameters for 36/12k. On May 11th you quoted me the May rates as .0007/52% and this month the rates are .00095/56%. Is it normal for the residual to go up 4% from one month to the next? I had assumed that the residual would go down as we got later in the model year. Do finance companies adjust the residuals also in order to make the lease more attractive?

Thanks

petrie3 · June 2003

One more clarifacation. I realize I didn't specify mileage in my earlier post, but would m/f and/or residual differ in a 10,000 mile, 4 yr. lease? Thanks again. Your help is invaluable.

paddler3 · June 2003

Car_Man,

Thanks so much for this service. I am trying to decide whether to lease or buy the following car: 2003 Subaru Outback H6 3.0 LL Bean. The MSRP is $30,720; the Invoice is $27,874; and I can buy it from carsdirect.com for $26,199.

Could you help me out with the MF and Residual on this car? Also, can you give me an idea of what I can expect to negotiate for a lease instead of a purchase as far as purchase price? If I lease, I would want 36 mos and 15,000 miles.

Thanks!!!

paddler3

fredmcmurray · June 2003

Tahnks, Car_man. I'll check back with you on the Infiniti at the end of the week.

ncjudge · June 2003

Thanks for your quick reply on the Saabs. I already got the answer on the 1.8T Audi Cabriolet that you gave to another poster.

edhawk7 · June 2003

Car_man, can you give me the current information
for a 2003 GMC Yukon SLT, thanks, ed.

msc5 · June 2003

Hi carman,
Earlier I asked you for particular info. regarding the Audi A6 3.0 sedan and BMW 525 and 530i 2003 models (in post #6801). You promptly replied with the requested info. in post #6814. Thank---I've already gotten better lease prices on some of these cars. However, the Audi dealer keeps insisting that the 36 month, 15,000 mile Audi A6 sedan 3.0 (non quattro) numbers are 48% and MF of .00090. I read in another one of your posts that the Audi lease programs vary by region. I'm in Arizona. Does this change any of the numbers you provided in your earlier post #6814.??? Thanks for the info.

330ifan · June 2003

Hi Carman, thanks very much for the info on the bmw money factors and residuals. I was surprised to see such a low 540i residual (53%) for a 15,000/yr 36 month lease (versus 59% for a 330i). Was it this low in April and May?

JoeSM · June 2003

You provide a great service. Could you help me out with money factor and residuals for these vehicles in Southern California for a 36 mo/15k lease? Thanks.

ct_yank · June 2003

Car_Man
sorry to bombard you with yet another Audi question, but I am also confused about the increase in residual value for the 2003 A4 3.0 with quattro. Last month the residual was 54. Did it go up this month. Can you also provide the money factor rate for a 3/36000 lease. I live in Connecticut.
Thanks!

kevinjs · June 2003

Sorry. I was looking at 12k and 36mos on the 325cic. Thanks, Kevin

dave_h2 · June 2003

First off, thanks for all your help and answers so far.

I will be meeting with a few dealers this week so I want to be "armed" with the best possible info.

I see that Honda is running tv ads now that refer to "baloon payments". So I guess they have now gone over to this way of calculating. Do you have any additional info on this? I know you mentioned that the tax might be different? If so, how so?

Also - I noticed in your answers to everyone that the lower the mileage you need, the better the residual. You have given me my numbers based on a 15,000 mile per year allowance, but in reality I wont need nearly that much. In fact, I will only need 10,000 per. Will Honda do that for me? and if so, could I expect an even better residual number than 59% on my Odyssey EX-L RES?

The money factor seems a little higher than most others at .00210 (roughly 5%, right?), but I guess that's the way it is.

Anything else I need to know? Do you know what their bank fee and disposition fees is?

Thanks in advance, CM

Oh, buy the way, your comedy stylings had me rolling ;-)

CarMan@Edmunds · June 2003

Good catch, nas43. I apologize for the confusion. The numbers that I provided you with for June were for the A4 1.8T Sedan without quattro. The AFS numbers for a 3 year 12k lease of a 2003 A4 3.0L Sedan should currently be .00025 and 53%. Audi did increase its residual values on certain models slightly for some reason though. Banks do occasionally do this sort of realignment.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · June 2003

No problem, petrie3. The residual values for models leased though Audi Financial Services with 10,000 miles per year would be 3% higher than the 15,000 miles per residuals.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · June 2003

Hi paddler3. I am sorry to say that I haven't seen Subaru's June lease program yet and can not shed any more light on this situation.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · June 2003

Sounds good, fredmcmurray. Talk to you then.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · June 2003

Any time, ncjudge. Now pick yourself up a convertible and enjoy the summer

.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · June 2003

Greetings Ed. In order for me to give you an idea of what GM's lease program is like on this truck right now, I need you to tell me how long you plan on leasing it for and how many miles per year you need to be able to drive without having to pay a lease-end penalty for excess mileage.

Car_man
Host
Smart Shoppers / FWI Message Boards

drlonline · June 2003

Car_man, can you provide the latest lease terms you're seeing for the following car:
* 2004 XC90 FWD 2.5T, 7 passenger, MSRP of $40,975
* cap cost reduction of $2K
* 48 months
* 12k miles/yr.

Thanks.

edhawk7 · June 2003

sorry about that, I would be looking at
48months, 12k a year. Thanks.

msc5 · June 2003

Hi carman,
Both BMW and Audi have refused to utilize the MFS you provided in their lease calculations (although they did agree with the residuals you quoted). Can you please confirm once again the correct numbers for an Audi A6 3.0 sedan(non quattro) and a BMW 525i (2003 models) for a 36 month lease at both 12,000 and 15,000 miles. Also, I didn't tell you before that I'm in Arizona---if this makes a difference. Also, can you please give me the numbers for a 36 month, both 12,000 or 15,000 mile, lease of a Lexus ES 300. Thanks so very much.

CarMan@Edmunds · June 2003

Hi msc5. Only Audi's A4 lease money factors vary by region right now. If you were to lease a 2003 Audi A6 sedan 3.0 without quattro through Audi Financial Services this month for 3 years with 15,000 miles per, its base lease money factor and residual value should definitely be .00025 and 48%, nationally. It looks to me as though your Audi dealer is trying to pad this vehicle's money factor to add additional profit to your deal.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · June 2003

You're welcome, 330ifan. It looks as though BMW's residual values for the 2003 540i have dropped in June. I will ask the person who told me this vehicle's residual value was this low today to double check that this is indeed the case, but I believe that it is.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · June 2003

I am glad that you enjoy this discussion so much, JoeSM. Let's take a look at the current lease programs for the vehicles that you are interested in. If you were to lease a 2003 Audi A6 3.0L Sedan through Audi Financial Services this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00025 and 48%, respectively. If you were to lease a 2003 BMW 325i through BMW Financial Services this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00150 and 59%, respectively. The numbers for an otherwise identical lease of a 2003 BMW 330i should be .00120 and 59%. Last, but not least we have the 2003 Audi A4 1.8T Sedan without quattro. If you were to lease this car through AFS for 3 years with 15k per in your neck of the woods right now, its base factor and resid should be .00095 and 54%, respectively.

Car_man
Host
Smart Shoppers / FWI Message Boards

CarMan@Edmunds · June 2003

Thanks for the additional information, Kevin. According to the most recent information that I have seen, if you were to lease a 2003 BMW 325Ci Convertible through BMW Financial Services this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00200 and 58%, respectively.

Car_man
Host
Smart Shoppers / FWI Message Boards

dave_h2 · June 2003

Hi Carman,

I see you haven't responsed to this post yet, so on the outside chance that you missed it, I am reposting.

First off, thanks for all your help and answers so far.

I will be meeting with a few dealers this week so I want to be "armed" with the best possible info.

I see that Honda is running tv ads now that refer to "baloon payments". So I guess they have now gone over to this way of calculating. Do you have any additional info on this? I know you mentioned that the tax might be different? If so, how so?

Also - I noticed in your answers to everyone that the lower the mileage you need, the better the residual. You have given me my numbers based on a 15,000 mile per year allowance, but in reality I wont need nearly that much. In fact, I will only need 10,000 per. Will Honda do that for me? and if so, could I expect an even better residual number than 59% on my Odyssey EX-L RES?

The money factor seems a little higher than most others at .00210 (roughly 5%, right?), but I guess that's the way it is.

Anything else I need to know? Do you know what their bank fee and disposition fees is?

I am meeting with a dealer this evening and would like to have as many facts as possible with me before he begins his "song and dance".

CarMan@Edmunds · June 2003

No problem, CM. Huh, I haven't seen the Honda advertisements touting balloon notes yet. I suppose that it was only a matter of time though given the fact that so many banks have begun to promote this type of loan in the Northeastern U.S. As I mentioned in an earlier post, many banks have significantly raised their lease acquisition fees or have completely stopped writing leases recently in the states of New York, Connecticut, and Rhode Island. They have done so because the vicarious liability laws that are on the books there leave them open to lawsuits if the driver of one of their leased vehicles is in a bad accident. As silly as these laws are, I figured that it was only a matter of time before some sort of legislation was passed to limit or eliminate banks' liability when leasing vehicles, but it hasn't happened yet and balloon notes keep becoming more popular in these areas. Balloon notes have never been very popular in the past and as a result I have never seen the need to keep track of the details of manufacturers' programs. Unfortunately it appears as though that I may have to start following balloon notes more closely. I am sorry to say that I do not know the details of Honda's current balloon note program and can not shed any more light on it for you at this time.

You are right about vehicles' residual values. The fewer miles per year one drives, the less their vehicle will depreciate and the higher its residual values will be. I provided you with 15,000 miles per residual values because this is what most manufacturers publish for their vehicles and at least in the past was the most common mileage allowance. For leases through AHFC of over 3 years in length, you should increase the 15,000 miles per year residual values by 2% to arrive at the 12,000 miles per number. I don't know if AHFC leases with vehicles with only 10,000 miles per year, but if so, the residual values for that allowance are likely 1% higher than the 12k, or 3% higher than the 15k numbers. Honda is not providing any sort of lease support on the Odyssey at this time, so its money factors for it will be higher than the factors for some of the supported vehicles that I have mentioned. As far as standard money factors go right now, .00210 is actually pretty reasonable. American Honda Finance Corp. currently has a lease acquisition fee of $550.

I think this just about answers all of the questions that you had, but please let me know if you have any others. BTW, I'm glad that you liked the jokes

.

Car_man
Host
Smart Shoppers / FWI Message Boards

dave_h2 · June 2003

For your invaluable assistance.

I will post back later tonight with results of my meeting with the dealer.

We can compare numbers and make sure the deal is fair.

dave_h2

CarMan@Edmunds · June 2003

Hello drlonline. Let me begin by saying that Volvo Finance's current lease program on the 2004 XC90 is not very attractive. In fact, I recently heard that only about 5% of the lease and finance contracts on this vehicle are run through Volvo Finance! Most consumers who lease or finance this truck do so through an outside lending institution. Not surprisingly, Volvo is not currently providing any sort of lease support on this model right now. So, if you were to lease a 2004 Volvo XC90 through Volvo Finance this month, you would have to use its standard lease money factors. Volvo Finance's 4 year 12,000 miles per factor should be .00359 for all 2003 XC90 models and the residuals should be 56% for the 2004 XC90 2.5T AWD and T6 and 54% for the XC90 2.5T FWD.

Car_man
Host
Smart Shoppers / FWI Message Boards

Lease Questions - Ask Here

Comments

Helpful Tools

Most popular vehicles