Lease Questions - Ask Here

jratcliffe · July 2003

Here's what Carman posted in late June when I asked the same question:

#7053 of 7410 Re: Honda S2000 by Car_man HOST Jun 26, 2003 (12:59 pm)
Howdy jratcliffe (I get sick of saying Hi or Hello all the time

). The S2000 certainly would be a fun car for the summer. Here is the information that you are looking for. According to the most recent information that I have seen, if you were to lease a 2003 Honda S2000 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 62%.

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new5er · July 2003

Thanks Car man
Looking for money factors on all BMW sedans
for 3yr/36k and 42mo/42k leases.

windykid46 · July 2003

Hi carguy,
I am planning to lease a 2003 MM today or tomorrow. I am told the lease options only get worse after July. Is this true? I drive about 1900 miles a year so leasing is really best for me. With extended warranty of 1 year. Are there other negotiating factors or items I can use? I think when the dealers see "single mom" they also see "sucker". thanks.

goose1207 · July 2003

MY03
All 330 sedans & 330Ci
All 5-series sedans

36 = .0012
42 = .0012

mzinzi · July 2003

Car_Man:

You have already given me the info for a 2004 Acura TSX without Nav (12k miles/36 months = .00205 and 64%)...

Is there any difference in the numbers for a 2004 TSX WITH NAV????

Thanks as always!!!!

Matt

mxpro738 · July 2003

Sorry to contradict, but I read from an earlier post by Car_man that the 5er's MF=0.0022

Just browse through earlier posts from July, and your sure to find all your answers.

hartt · July 2003

Thank you for the information you provided on the SR5. I am now leaning towards the Sports Edition with a V6. Do the numbers change for this model versus the SR5? I want to lease this vehicle for 3 years with 15,000 miles a year. Would you please provide MF and residual for this model?

Also, the dealer I was working with tonight refused to show me the invoice on the vehicle. Why would they hold back this information? I have never had a dealer refuse to provide the invoice.
Thanks for the help.

"T"

oftatom · July 2003

Car man,

Could you help me figure out the lowest monthly lease payment ( best deal ) on a V6 and V8 Volkswagen Touareg? V6 ( MSRP: $36,165 / Invoice: $32,835 )
V8 ( MSRP: $41,965 / Invoice: $38,075 )
There is a $2300 option for 4 wheel air suspension. Is it worth it?

thanks,
oftatom

islamorada · July 2003

Saw some interesting leases show up on the escalade this weekend - anyone know the MF and residual diff between the two on 36-39mos and 12 or 15k.

Prices on both seem to have hit invoice here in S. Florida which with options we like is 53k for the slade and 47k for the denali.

Thanks

siennami · July 2003

I began leasing a 2000 Toyota Sienna three years ago(it's a 60 month lease). I sure wish I'd seen your board before I did that. I had no clue about leasing, and I'm only now finding out things I wish I'd known......like I'm responsible for all repairs.....including tire purchases. Those are all things I wish I'd known.
Here are my questions: what can I expect near the end of my lease? I have two more years, but the more I think about it......... Is it best to purchase the car you've been leasing or lease another one? If you don't purchase it, then what? Does leasing pretty much mean you can't refinance for a lower payment? How difficult is it to get out of a lease? I've been wondering that because this lease is kicking my butt! I really wish I'd known more before I embarked on this expensive venture.
Thanks in advance for any advice you can give.

stratixman · July 2003

Carman, a couple of weeks ago you were kind enough to provide me with lease info on Saab Arc. Its been a huge help. I am preparing to finalize a lease this coming week and have received the dealer's lease info for a 36 month, 12k miles per year lease. I think his monthly payment quote is almost $10 too high, based on my calculations using both a manual method and an actual lease calculator. Can you check the calcs and confirm or deny my conclusion. The lease factors listed below are exactly those used by the dealer, but his calc for the payment is higher than what I calc.
Cap cost of vehicle: $31468
Residual: $17789
Money Factor: .00050
Lease Term: 36 months
Dealer Quoted Payment per Month: $414.45
My Caculated Payment per Month: $404.59

Also, do you happen to have Saab lease info for 42 and 48 month leases, 12k per year available?

Tanks a ton. You're the greatest.

CarMan@Edmunds · July 2003

No problem, djdez. You are correct, if you were to have your security deposit waived by AHFC, your lease money factor would increase by .00100. As far as this car's price goes, if you are able to get one for $400 below invoice, you are getting a very good deal. I am not aware of any cash incentives on this model at this time, so the dealer that you are working with is likely dipping into its holdback to make this deal. I highly doubt that you will get them to sell you this car for $1,000 below invoice.

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CarMan@Edmunds · July 2003

Hi Bill. Unfortunately, I have not seen GMAC's lease program for the 2004 Chevrolet Corvette yet. I can tell you though that it is very likely that GMAC's base lease rate for this car is very similar to, if not exactly the same as the 6.75% rate that it has had on the '03 Vette for some time now.

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CarMan@Edmunds · July 2003

Hi mxpro738. You're very welcome. I don't know if I have given you the link to this article before, but if not you definitely need to check it out. It will answer any questions that you have on the various terms that are associated with leasing: Edmunds.com Leasing Glossary. In answer to your question, yes the lease-end purchase prices of vehicles are based upon their full MSRPs times their residual values. Of course, some banks are willing to negotiate this number at the end of leases, but this is the exception rather than the rule.

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CarMan@Edmunds · July 2003

Thanks for the additional information, bsagin. Let's play with some numbers and see what we come up with for this car's monthly payment. According to my calculations, if you were to lease a 2003 BMW 325i (MSRP: $37,170 / Cap Cost: $34,835) through BMW Financial Services this month for 42 months with 15,000 miles per, its zero down, pre-tax monthly payment should be right around $434 or so. Both the selling price of this car and the lease money factor / residual value that you were quoted look good, so if you like this car, I don't see any reason not to go for it.

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CarMan@Edmunds · July 2003

No problem, brian4001. I am glad that I was able to help you out.

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CarMan@Edmunds · July 2003

You're welcome, Tom. Yes, the 3 year numbers that you mentioned are still available on the 2003 Audi allroad. I would be happy to give you an idea of what Audi's lease program is currently like on the '03 A4, but first I need you to tell me exactly what trim level you are interested in, the 1.8T Sedan FWD, 1.8T Sedan quattro, 3.0L Sedan FWD, or the 3.0L Sedan quattro.

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CarMan@Edmunds · July 2003

Hey surfsupp. Beer...mmmmmmmmmm:). If I was in the market for a VW Touareg right now, I would probably finance it through VW's special financing program rather than lease it. I haven't really given much thought to the specific options that I would get if I was in the market for a Touareg right now, but I certainly have a deep appreciation for the outstanding job that VW did with this new model.

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CarMan@Edmunds · July 2003

Hi again bimmaboy23. Well, I hate to say this but it looks to me as though the dealership that you are working with is marking up BMW Financial Services' base lease money factor in order to add a little hidden profit to your deal. This is a very common practice with BMW dealers, so I am not surprised. Right now, BMW FS' three year base lease money factor for an '03 330i is only .00120. If I was in your shoes, I would tell the person who quoted you the higher money factor that you know what BMW's base factor is and you won't lease this car without having your payment based on the base number. This threat holds a lot more water if there are other BMW dealers in your area or if you have a few other vehicles that you are interested in.

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CarMan@Edmunds · July 2003

Hi again mzinzi. Here is the information that you are looking for. If you were to lease a 2003 Honda S2000 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 64%, respectively. The numbers for an otherwise identical 39 month lease of this car should be .00210 and 59%. I have not seen Honda's 42 month lease program for this model, but its 48 month numbers should currently be .00200 and 58%.

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CarMan@Edmunds · July 2003

Hi catherine9. Edmunds.com's True Market Value numbers do take dealer cash incentives into account. Since you are leasing this car, you will not be eligible for Saab's main dealer cash program. Instead, your vehicle will be eligible for the lease cash incentives that Saab is currently offering. Right now, Saab has $1,000 lease cash on the '03 9-3 Linear Sedan. So a more realistic selling price for the this car is its dealer invoice price of $26,437 minus this $1,000 cash incentive, or $25,437. Here is a sample lease payment on this car for you. If you were to lease a 2003 Saab 9-3 Linear Sedan (MSRP: $27,920 / Cap Cost: $26,437 invoice - $1,000 lease cash = $25,437) through Saab Financial Services Corp. this month for 3 years with 10,000 miles per, its zero down, pre-tax monthly lease payment should be right around $315 or so.

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CarMan@Edmunds · July 2003

Hi again new5er. It would be a big help if you could be a little more specific about the model or models that you are interested in. Thanks.

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CarMan@Edmunds · July 2003

Hi windykid46. Most of Mercury's current incentives and its lease program are currently scheduled to run through September 2nd. So your dealer may be trying to create a false sense of urgency for you to complete this deal. The only difference between this model's incentives now and after July is a dealer volume bonus program that Ford is running on it. This actually could end up making a relatively big difference in the deal that your dealership is willing to cut for you. Basically this program pays dealers $500 to $1,500 per Mountaineer depending upon what percentage of its predetermined sales objective the dealer that you are working with hits. It is difficult to say whether or not Ford will run a similar program in August, so from this standpoint I can see where one might want to complete a deal on this truck prior to July 31st.

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CarMan@Edmunds · July 2003

Hey Matt. The lease money factor for an '04 Acura TSX with Navigation would be exactly the same, but the residual value would drop 2%.

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CarMan@Edmunds · July 2003

You're welcome, T. The residual values for the 2003 Toyota 4Runner Sport Edition should be exactly the same as the ones that I gave you for the SR5. As far as the dealer invoice goes, some dealers are rather touchy about this information. All you have to do to find this number out is to look it up right here at Edmunds.com and use it to figure out exactly how much money you want to pay.

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CarMan@Edmunds · July 2003

Hello oftatom. In order for me to calculate sample lease payments on these models for you, I need you to tell me how long you are interested in leasing them for and how many miles per year you need to be able to drive. Also, you only provided me with the MSRPs and dealer invoice prices for these vehicles. I really need the selling prices in order to calculate a lease payment for you. Unless you are able to provide me with an actual selling price, I will base the lease payments that I work up on full MSRP.

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CarMan@Edmunds · July 2003

Greetings islamorada. I should be able to give you an idea of what the lease programs should be like for these trucks. Let me begin by stating that General Motors publishes lease rates for its products instead of lease money factors. To convert these rates into approximate money factors, divide them by 2400. If you were to lease a 2003 Cadillac Escalade ESV 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 46%, respectively. If you were to only lease this truck with 12,000 miles per year the residual value would be 3% higher. If you were to lease a 2003 GMC Yukon Denali through GMAC this month for 3 years with 15,000 miles per, its base lease rate and residual value should be 6.5% and 51%, respectively. Again this truck's 12,000 miles per year residual value would be 3% higher. Also, just in case you are interested, General Motors is providing $500 bonus cash on the 2003 GMC Yukon Denali in your region through the end of July. This money may be used in conjunction with the aforementioned lease program and will help you to negotiate a lower selling price.

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cdrive2005 · July 2003

Carman,

Can you give me the MF and residual for 03 Audi 1.8T Sedan FWD in WA state for 36M/12k and 36M/15k. Thanks.

Jeff

CarMan@Edmunds · July 2003

Hi siennami. At the end of your term, you will have the option to purchase the vehicle that you have been leasing. Whether or not you do so will depend upon a number of factors, the most important of which is how much money it will cost you to buy your vehicle. When you signed your lease contract, a lease-end purchase price was calculated. This will be exactly how much money you have to pay to buy your leased van at the end of your term, unless your bank is willing to negotiate with you. If this price is less than or equal to what one would have to pay to buy a similar model on the open market, and you like your van you may want to consider buying it. If the purchase price is too high or if you have been in an accident in your van, and had it repaired of course, you then may want to just turn it in to the bank that you are leasing it through and purchase or lease a new vehicle. If you choose to buy your vehicle, you can either pay cash for the entire amount, or finance the purchase price through the bank that you leased it through or some other lending institution.

As far as getting out of your lease prior to your scheduled termination date goes, the following passage from an Edmunds.com article sums up your options nicely:

"1. How do I get out of my lease before the contract has expired?

In some cases, your financial picture might change unexpectedly and suddenly you can't afford those sky-high payments on a BMW 528i. In another common scenario, you lease a fun little Mazda Miata one year, then the next year you and your spouse have a baby. You're desperate to get into a bigger car, but you don't want to take a financial bath. What to do?

According to Shebesta, you still have some options:

Find someone to assume the lease. Call the leasing company and ask if they allow 'assumptions.' Make sure you locate a new lessee who is credit worthy. Expect to pay a fee to do the assumption  about $300. Check to make sure the mileage is appropriate for this point in the lease. And also make sure you provide the car in good condition so the new lessee isn't taking over hidden problems.

Sell the car yourself. Call the bank and ask for the current buyout amount. Once you get that number, look at the Edmunds.com True Market Value® price for a private party. Make sure to adjust the figure for mileage, color, options and region. If the current market value is close to the buyout number, try to sell the car yourself and pay off the bank. Even if you have to take a $1,000 or $2,000 loss, you are better off than continuing the payments or walking away from the car. Remember, in addition to your lease payment, there are insurance payments, too. (Note: Sales tax can cause a problem if you buy the car, then have to resell it immediately. The bank may help you by arranging to transfer the title directly to the new owner. A dealer might also help you arrange this transaction, but they will want reimbursement for their trouble.)

Turn in the keys and walk away from the lease. This isn't a good option. If you give the car back to the lessor, and walk away, it will go on your credit report as a 'repo.'"

Unfortunately, as you can see, it will likely be fairly expensive for you to get out of this lease two years before it was scheduled to end.

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CarMan@Edmunds · July 2003

Hey stratixman. I would be more than happy to calculate a sample lease payment on this car for you. However, first I need you to provide me with its full MSRP. Once I have this info I will be able to help you out. As far as the additional lease information that you are looking for goes, if you were to lease a 2003 Saab 9-3 Arc through Saab Financial Services Corp. this month for 42 months with 12,000 miles per year, its base lease money factor and residual value should be .00090 and 48%, respectively. The numbers for an otherwise identical 48 month lease of this car should be .00090 and 44%.

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CarMan@Edmunds · July 2003

Good morning Jeff. Here is the information that you need. If you were to lease a 2003 Audi A4 1.8T Sedan without quattro through Audi Financial Services in your state this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00075 and 53%, respectively. The 12,000 miles per year residual value for this car would be 2% higher.

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twoof1 · July 2003

I have pinned down what apprears to be a good lease deal on a Chrysler Pacifica.

I had the dealer fax over a copy of the contract and found something that does not make sense. There is a line itme on the contract (typed in not pre-printed on the form) that reads "Tax on Cap Reduct,Doc Fee/Acq Fee...$292.73"

There is already a seperate line item for $45.00 Doc fee and the dealer is going to have to do a trade to get the correct vehicle on his floor.

Does it look to you like he is charging me $292.73 to trade antoher dealer for the vehicle? or is there some hidden tax on Cap Cost reduction that I am missing?

stratixman · July 2003

Thanks for getting back to me so quickly on my Arc lease questions. Regarding the actual lease calc: the actual MSRP of the car (not including $130 dealer prep, $250 adertising, but including $675 destination) is $34050. The dealer has provided me his 36 month proposal based, so he says, on the Saab lease money factor of .00050 and a residual of 52%. (I can't quite reconcile the 52% facto the residual he actually quaoted, so I am working off the specific number he's using). Specifically his lease worksheet contains $31468 for the actual cap cost and a stated residual of $17789, for a resulting monthly payment of $414.45. My own calculations using the same .00050 money factor and the $17789 residual result in a monthly of $404.60, $10 less than his calcs which are supposed to be based on the same inputs. His worksheet shows total depreciation of $13,679 ($31468 - $17789 residual) yielding $379.97 per month for the depreciation payment, and a monthly lease finance charge of $34.48, producing the total payment of $414.45. Based on the actual residual he is quoting the calc for the monthly deprciation payment is correct. But, when I apply the money factor of .0005 against the cap cost and residual I come up with only $24.62 vs his 34.48 for the interest payment. I also ran the same numbers he provided through Expert Lease Pro and it also comes up with a total payment of 404.60, precisely what I came up with manually - $10 lower. What do you think?

wbenedict · July 2003

Car_man - my current Maxima lease is due to expire and I wanted to get latest MF and residuals on an 2004 LE 36 mo/36K mi lease. I am in Philadelphia, PA.

Thanks for your help.

wch3 · July 2003

Can anyone tell me 1) whether it is wise to break a lease that is less than a year old, and 2) how do you do it without losing any money?

My wife and I leased a Volvo S60 AWD last September. It has not lived up to expectations and we are looking at dropping but not if it means loosing money on it.

Any suggestions? Or we committed to riding the lease out?

kyfdx · July 2003

Try swapalease.com.. In reality, its very hard to get out of a lease before the term is up without taking a major financial hit. Occasionally, you may be able to do it, but unlikely, unless someone will assume your lease.

regards,
kyfdx

lmp180psu · July 2003

the 04 Maxima only comes in the SL and SE model designations( there is not an LE model). The SL is the more luxury oriented model with wood trim and a 4 speed auto, while the SE is the sport-oriented model with silver trim and a 5 speed auto or 6 speed manual. Go to
http://www.nissanusa.com to explore more of the differences between the SL and SE.

wbenedict · July 2003

Sorry, meant the SL (still thinking in terms of the older models).

hartt · July 2003

I am completley confused. You provided me with the residual and money factor for the 4Runner, which one Toyota dealership confirmed was correct, yet none of the dealerships will use them to calculate a lease. Why won't they use these numbers to calculate my lease? Is it wrong to expect for the manufacturer's MF and residual to be the worst, considering there are many banks out there willing to do better in order to earn business?
Also, why doesn't the invoice that I found on KBB not match that of the dealerships? They keep telling me I have the wrong invoice. The dealers seem to be $700-$800 higher.
One last request. Could you please calculate a lease for me so I can see if I am figuring the lease correctly?
MSRP: $32,506
Invoice: $28,834
MF: .0022
Residual: 60%
I come up with $365.52 before tax and $387.45 including tax.
Thank you very much for your help.
"T"

jcat707 · July 2003

There were no LE models in the early models unless you are talking about the GLE.........

siennami · July 2003

Car_man,
Thanks for your help. I truly didn't understand the repercussions of leasing. I'm not sure if I got a good deal or not. I'll know better next time!

new5er · July 2003

the following 2003 sedans:
525i with auto, prem and cold weather
330i with auto, prem, cold weather and xenons
325i with auto, prem, sport, coldweather, Harmon Kardon and xenons.
Probably too specific
Thanks

siennami · July 2003

I've seen other posts where people have described what they're thinking of doing as far as leasing. I will probably cry when I read your answer to this, but I've always wondered if I got the best deal possible on this lease. So, I'd like your opinion on what I did three years ago:

The vehicle I'm leasing is a 2000 Sienna and I began leasing it in July, 2000. The odomoter reading was 20,012.

1. I paid $1019.01 at lease signing.
2. Value of vehicle was $27,076.05 (although the internet price was $22,000)
3. Gross Capitalized cost: $28,993.05
4. Capitalized Cost Reduction: $361.09
5. Adjusted Capitalized Cost: $28,631.96
6. Residual Value: $7475.68
7. Depreciation/Amortized am'ts: $21,156.28
8. Rent Charge: $6498.92
9. Total of Base Monthly Payments: $27,655.20
10. Lease Pymnts: 60
11. Base Monthly Payment: $460.92

12. I am allowed 18,000 miles/year with .15 per mile for going over the allotted amount.
13. End of lease Purchase Option: $7825.68

And, I don't know if this will make a difference or not, but I live in South Carolina, and I leased the vehicle in South Carolina.
With this lease, I receive free oil changes for the life of the lease. At the time, I thought that was great until the reality of chugging 40+ miles to the dealership sank in.

You will probably laugh as you read this, but I'm looking to not make the same mistakes that I made three years ago. I know that getting out of the lease is not a viable option. I'm just wondering if these prices seem pretty standard or pretty steep.

Thanks a lot! You have been very helpful.

normalo · July 2003

Car Man,

I need few more numbers, getting a car before Thursday. Residuals and MF for MB E320 and 530I for 39m/15K and 42m/15K. As for the G35 which is my last option, would the residual value decrease with the optional navigation? If so then how much for 36m/15K miles.

red927 · July 2003

Thanks for the info on the GMC Envoy. I was looking at a Saab 9-5 yesterday and the dealer said that the residual value was 44% and the money factor was .00082. The MF is OK, but the residual seems to be very low. Could you please verify these numbers for me. The MSRP is $38,355 and the capitalized cost is $30,077 +$595 bank fee. He also wants me to put down $2,000 for a payment of $388.68 including 6% tax.

CarMan@Edmunds · July 2003

Hi twoof1. It looks as though this charge is some sort of tax. It is difficult for me to say exactly how the tax should be calculated on your vehicle because the rules for taxation vary by state. Before jumping to any conclusions about what this charge is, I would ask your dealer for an explanation.

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tennberg · July 2003

Hi everyone,

After haggling with the salesman for what seemed like hours, this is the deal he is offering me:

2003 Audi A4 1.8T Auto Tiptronic quattro
- Dolphing Grey exterior
- Ebony interior
- Premium Package
- Cold Weather Package

The lease is for 39 months with 10,000 miles per year, with a CAP cost of $29,972. He said there is a 56% residual and a 0.0005 money factor (seems ridiculously low...). The monthly payments would be $305.51 ($290 plus tax) with $2971.26 due at lease signing.

Is this a deal that I should sign on immediately, or is there something I am missing here?

I appreciate any and all advice.

kyfdx · July 2003

That money factor equates to approximately 1.2% interest rate... At that money factor, I'd ask if I could put less money up at signing, and roll the rest of it into the lease payment... With $700 due at signing, your payment would only go up about about $63 giving you a payment of about $368 including tax. If something happened to the car early in the lease, that money would be in your pocket, instead of gone.
Additionally, CAR_MAN will be able to give you better advice on your deal if you give him the MSRP of the car.

regards,
kyfdx

tennberg · July 2003

The MSRP of the A4 1.8T quattro is $31,075 (with all the options I listed, plus dest. charge).

hartt · July 2003

Hi Car_man.
A local Chevrolet dealer is offering 25% off MSRP until July 31st on all vehicles in stock. This appears to be a great time to get a deal.
Could you please provide me with MF and residual on a 3yr./45K lease?
I need to act fast for best selection.
Thanks again.

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