Lease Questions - Ask Here

CarMan@Edmunds · August 2003

You're welcome, LianneLL. Audi's lease program usually is different for vehicles have quattro and ones that don't so it's a good thing that you asked. Here is the info that you asked for. If you were to lease a 2003 Audi A4 3.0L Sedan without quattro through AFS this month for 2 years with 15k miles per, its base factor and resid should be .00005 and 59%. The numbers for an otherwise identical 3 year lease should be .00005 and 50%.

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CarMan@Edmunds · August 2003

Hi Steve. Monthly lease payments are created by adding together vehicles' anticipated depreciation and the interest that one has to pay. So as you can see depreciation accounts for a significant percentage of vehicles' lease payments. As a result, vehicles with strong residual values, like BMWs and Hondas for instance, make much better models to lease. In fact, Hyundai's residual values are so bad that Hyundai Motor Finance rarely even bothers to publish a lease program. A few months ago they ran a lease on the Santa Fe, but I have not seen any factors or residuals for the Elantra lately. If you want this car, you would be much better off paying cash for it or using Hyundai's current special financing program that provides 0.0% for up to 4 years and 0.9% for 5 years.

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jmcclenahan · August 2003

Thanks again - ok, last question.

You had said that the residual should be 55% for a 39 month lease but that you hadn't seen the numbers for a 42 month lease. The dealer is quoting me the same money factor you gave me (.0016) and a residual of 53% for 42 months.

Does that (going from 55%(39m) to 53%(42m)) seem reasonable to you?

jas413 · August 2003

Hi Car Man. Please provide me with the money factor & residual value for a three year 15,000 miles per year lease on the 2.5 X type Jag. Thanks for all your help & assistance!

CarMan@Edmunds · August 2003

Jmcclenahan, that sounds reasonable to me. I just looked into the matter for you and AFS' 42 month residual values should definitely be 2% lower for a 42 month lease of this car.

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CarMan@Edmunds · August 2003

Hi jas413. Jaguar published a lease program on July 1st that was supposed to run through September 30th. However, Jaguar seems to have lowered its advertised lease payments for some models within the past couple of weeks. This leads me to believe that it may have made an unscheduled enhancement to its original program. I will look into this matter and see what I can come up with. In the meantime, here is the latest information that I have seen for this car. If you were to lease a 2003 Jaguar X-Type 2.5 through Jaguar Credit this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00011 and 50%, respectively. Jaguar is also providing $2,000 dealer cash 2003 X-Type Manual & Sport models that may be used in conjunction with this special lease program.

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cehenke · August 2003

Car_Man, Just curious if you have had a chance to look at the August lease numbers from Toyota yet? I would be looking at either 36 or 48 month lease w/15K miles per year and am interested in either the XLE AWD or XLE Ltd AWD models. thanks again! Chris

nyyace · August 2003

Hello all,
I was wondering if it is possible to have a 3rd party buy a car at the end of the lease term for the pre-arragned sale price. I am sorry if this has already been asked
Thanks

steven39 · August 2003

hi car-man, just a follow up on my previose
post here. i would like to know also when a lease ends on a car, and you you have the option to purchase the vehicle at leases end
does it make sense to do this, can a good deal be had by this method?? or does this also depend upon the residual value of the leased car as you mentioned in my previose
post here. most likely the car to be bought or leased will be a vw golf or a hyundai elantra gt cuz of the good waranty they both offer. thank you car man your forum here has been very informitive to me its nice to talk to someone who actually knows what they are talking about. lol, anyway thanx for your response and keep up the good work. steve

jas413 · August 2003

Hi again Car Man. Would you please provide me with a lease payment calculation for this car with a MSRP of $35,515 & Cap Cost of $30,000. The lease is three years with 15,000 miles per year. Thanks for all your help!

multiplechoice · August 2003

My view: if you are planning to buy the vehicle at the end of the lease, you probably should buy it outright, rather than leasing it first. I think leasing should be used by those who don't mind making car payments forever...(and be able to drive a new car every few years) or who have the luxury of writing off a portion of their automobile expenses. Just because a vehicle has a long warranty period does not mean it will be trouble free. I know of a person that had a Kia (10 year warranty) but got rid of it because of the need for frequent visits to the dealer for warranty work. He had to drop it off to get the car checked, then wait until the parts came in, and dropped the car off for the repairs. The warranty did not include a rental car either when his vehicle was out of commission. If you want to get a car for the "long run", look at a Honda, Toyota, Nissan-cars with proven reliabilty. Look for a vehicle that might have a low interest rate and purchase the vehicle. If you are trying to stick to a specific budget and a new vehicle is too much of a stretch, consider a CPO (Certified pre-owned) reliable vehicle.

jratcliffe · August 2003

Also, remember that the long warranty is NOT transferable, unlike most warranties. When you sell the car, the warranty doesn't transfer to the new owner.

jeffmust2 · August 2003

...and, as I understand it, the original warranty is primary power train coverage after the first bumper-to-bumper stage expires.

Power train is OK but it just covers mechanicals that are submerged in lubricant one way or another. Lots of other goodies to break that are only covered down the road by an additional warranty that must be purchased.

CarMan@Edmunds · August 2003

Why yes I have had an opportunity to take a look at Toyota's August lease program, Chris, and I would be more than happy to share what I have been able to find out with you. As you might imagine with a new model that has been well received, like the 2004 Sienna, Toyota is not providing any lease support on it right now. So if you were to lease one through Toyota Financial Services this month, you will have to use its standard lease program. According to the latest information that I have seen, if you were to lease a 2004 Toyota Sienna (Non-Limited) through TFS this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00220 and 60%, respectively. The numbers for an otherwise identical 4 year lease should be .00220 and 52%.

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CarMan@Edmunds · August 2003

This is a very good question, nyyace. The exact policy on this matter may vary from bank to bank. You may need to contact the bank that you are currently leasing your vehicle through directly to see what its rules are on this situation. Has anyone out there ever done this or know anyone who has?

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CarMan@Edmunds · August 2003

Hey steve. I'm glad that you enjoy this discussion so much

. Each lease is different. Whether or not it is wise to buy a leased vehicle at the end of its term will depend upon how much money it costs to do so and what the car that one is interested in buying is worth on the open market at the time of purchase. Vehicles' lease-end purchase prices are calculated at lease signing by multiplying their MSRPs by their residual values. Vehicles with low residual values have higher than normal monthly payments, but cost less to buy at lease-end because more depreciation has been paid over the length of the lease. When you approach the end of your lease and are trying to decide whether or not to buy your leased vehicle you will need to contact the bank that you are leasing it through to find out exactly how much money it will cost to do so. Even though your vehicles' lease-end purchase price has already been determined, based on its residual value, it is important to call your bank because some are willing to negotiate lower purchase prices with consumers. Once you find out exactly how much money it will cost to buy your car or truck, compare that number to what it is realistically worth on the open market. If the purchase option price is less than or equal to your vehicle's market value, you have enjoyed your vehicle, and have not been in any major accidents or had any major mechanical problems with it then you may want to consider buying it.

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CarMan@Edmunds · August 2003

Hello jas413. Let's calculate a sample lease payment on this car and see what we come up with. Thanks for providing me with all of the necessary numbers. According to my calculations, if you were to lease a 2003 Jaguar X-Type 2.5 (MSRP: $35,515 / Cap Cost: $30,000) through Jaguar Credit this month for 3 years with 15,000 miles per, its zero down, pre-tax monthly lease payment should be right around $346 or so.

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hardy21 · August 2003

Car Man -
Sorry to go back to this one. I saw that you posted the following for a 2003 325i lease:
2 yrs; 15,000 miles; MF .00150; Residual 65%
3 yrs; 15,000 miles; MF .00150; Residual 57%

Two questions for you - if the miles drop to 12k per year, does the MF or residual change? And, are these rates above still valid?

Thanks Car Man!

kyfdx · August 2003

On this particular model, the MF stays the same.. the residual is 2% higher for 12K, instead of 15K.

regards,
kyfdx

CarMan@Edmunds · August 2003

Thanks, kyfdx. You are absolutely correct.

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kyfdx · August 2003

You are welcome. I am an avid reader of your work, as you may be able to tell!! LOL

regards,
kyfdx

dieselone · August 2003

I have a leased vehicle that I wrecked in January. It was repaired and looks and drives fine. Will this be an issue when my lease is up in 2 years?

Thanks.

otoluva · August 2003

Looking at a new Altima that's going to cost $19k, financing it for 60 months the payment is going to run above $300, but bc. we're living on one income for at least an other year our budget will allow us less than $250 a month.
To do that I thought about leasing it for, say, 24 or 36 months than at lease end purchase it and get a 48 or 60 month loan.
now, my two questions, will this method keep my payment in the range I want? And is it financially wise to go this route?
Any input will be greatly appreciated.

Joe

ncjudge · August 2003

Car_man,
   Thanks for your help on my previous questions.

   I am very close to closing a deal on an '03 9-3 Saab convertible (probably today). Can you give me the money factor and residual for a 48 month lease in North Carolina with 15k miles per year on an automatic trans model without the sport and design packages?

  Also, the MSRP is $42,345. Can you figure the monthly payment on that?

Thank you.

hardy21 · August 2003

Appreciate the help from both of you!

hardy21 · August 2003

Car_Man - or anyone else:

Could you please provide the residual and money factor for a 2003 Pathfinder SE and LE; assume 12,000 miles per year.

Thanks again!

jratcliffe · August 2003

To calculate a lease payment, you need not only the MF, residual %, and MSRP, but also the actual price you're paying for the car (lease payment is largely based on Price Paid - Residual Value).

CarMan@Edmunds · August 2003

Kyfdx, I'm glad to hear that you are such a loyal follower of this discussion.

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cehenke · August 2003

Thanks Car_Man!

CarMan@Edmunds · August 2003

Hi Dieselone. As long as your leased vehicle was repaired to pre-accident condition you should not have anything to worry about. Just to be safe one might want to make sure that OEM parts are used in their vehicle's repairs or that they use a body shop that their dealer recommends. Still I know people who did neither of those and still did not face an excess wear and tear penalty. This is actually one of the best things about leasing. If you owned this car or truck and had been in an accident with it, it would be worth significantly less than a similar unrepaired model when you went to sell it. However, with leases, as long as the repairs are done properly you can just walk away without experiencing any diminished value.

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CarMan@Edmunds · August 2003

No problem, cehenke.

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CarMan@Edmunds · August 2003

Hello Joe. You definitely could lease this car for 2 to 3 years and then either purchase it at the end of your term or lease / finance a new vehicle several years down the road. There is nothing wrong with leasing a vehicle to test it out and then purchasing it at the end of your term if you like it, other than the fact that you usually will end up paying more interest than you would have if you had just purchased it using a normal financing contract. Having said this, the lease payment for this car might be a little more than you are interested in paying. I just calculated a sample lease payment on a 2003 Nissan Altima 2.5 with an automatic transmission and no other options and its 3 year 15,000 miles per monthly payment came out to around $255 before adding in tax. If you are interested in a more expensive Altima the lease payment may be out of your range.

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CarMan@Edmunds · August 2003

You're very welcome, ncjudge. Here is the latest lease info on the car that you're interested in. If you were to lease a 2003 9-3 Convertible SE through Saab Financial Services Corp. this month for 4 years with 15,000 miles per, its base lease money factor and residual value should be .00059 and a rough 38%. Fortunately, Saab is providing $4,000 lease cash on this car that may be used to negotiate a lower capitalized cost. Overall Saab has quite a bit of lease support on this car. In order for me to be able to calculate a monthly payment on the exact car that you are interested in, I need to know its selling price. This is tough for me to estimate, given all of the options that Saab offers on this model. If you can provide me with this last piece of information I should be able to calculate a sample payment for you.

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CarMan@Edmunds · August 2003

No problem, hardy21. I am glad that we were able to help you out.

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CarMan@Edmunds · August 2003

Hey hardy21. How long do you plan on leasing your Pathfinder for?

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CarMan@Edmunds · August 2003

Thanks for the help, jratcliffe. I should have scrolled ahead to see if anyone asked him for this additional info for me.

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hardy21 · August 2003

Forgot to include that - 3 yrs.

Thanks.

c182skylane · August 2003

Hey Car_Man, is it true that AHFC requires a $550 acquisition fee on Acura and Honda leases? Is that a negotiable item? Seems like a lot of money considering the consumer also typically pays a Document Fee of between $100 and $200...

tstarks33 · August 2003

This question is for anyone.

I'm looking to lease a car within the next two months. I am 24 years old, and I have not had a need for a car before this, so I have no car loan or lease history. I have been looking around getting lease information and rates, and a forum on one website says that it is much more difficult for someone with no past auto experience to get a lease than for someone who has leased/financed before. Is there any truth to this? If so, how much more difficult?

My current fico scores range from 680 to 719, depending on who you ask, and I'm looking into a car with a monthly payment of around $350-400 a month, which I can afford. Is a lease possible, or should I wait until January when I'll be making a good bit more money and can improve my credit score in the meantime? Many thanks in advance!

multiplechoice · August 2003

If you have reasonable credit scores, I'm sure you can lease a vehicle. I don't think that ones credit scores increase just because your income increases (especially in such a short time frame). Depending on how badly a finance manager at a dealership wants to sell, I'm sure they can find a lessor. Maybe the money factor will be a bit higher, who knows. I would base my decision when to lease on the particular vehicle you want. When your income goes up in January, will you reget not getting into a fancier car than what you get for $350-400 a month now? Good luck with your decision.

tstarks33 · August 2003

Thanks for the response multiplechoice. I believe you are correct about the credit score not going up with an increase in salary. What I meant was that by January, I would have all of my credit cards paid off, and a $100 a month loan ends in january as well. The vehicle I currently want is an acura tsx, which, from what I understand, doesn't have a hard time selling which counts against me. I guess I can call some dealerships and ask some questions, but I just wanted to go in with some knowledge about what I'm up against. Thanks again!

jonk2 · August 2003

Hey Car_man, thanks for all your info. Can you tell me what the current BMWFS numbers are for '04 330i sdns, for 36 & 48 mo, 15K/yr ? Thx.

CarMan@Edmunds · August 2003

Thanks for the additional informaiton, hardy21. If you were to lease a 2003 Nissan 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 lease of a 2003 Nissan Pathfinder LE 4WD through be .00039 and 49%.

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CarMan@Edmunds · August 2003

Hey c182skylane. All banks that lease vehicles to consumers require what is known as an acquisition, or a bank fee. American Honda Finance Corp.'s base lease acquisition fee is currently $550. It charges consumers this fee on every deal and individual dealerships do not have any authority to waive it. You can usually either pay this charge at lease signing or add it to your vehicle's capitalized cost and finance it over the length of your lease. Acquisition fees are different from doc fees in that this money goes directly to the bank that you are leasing through. Doc fees are charges by dealers, often in an attempt to add additional profit to deals. If you are really irritated by a high doc fee, dealers may not waive it but you can usually get them to lower the price of the vehicle that they are selling you by all or at least part of the charge.

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CarMan@Edmunds · August 2003

Hi jonk2. I have not seen BMW Financial Services' lease program for the 2004 330i sedan yet. The only 2004 lease numbers that I have seen for BMW are for 3-Series Coupes. BMW must have just published the lease program for its other '04 models. I will look into it and see what I am able to come up with.

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wbenedict · August 2003

Car_man - last month you provided me with some lease data on the Maxima SL. The car I want is now in stock. Can you please provide the current 36 and 39 month (12K mi per year) MF and residuals?

Thanks.

CarMan@Edmunds · August 2003

Welcome back, wbenedict. If you were to lease a 2004 Nissan Maxima SL 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 .00168 and 56%, respectively. The lease money factor for an otherwise identical 39 month lease of this car should be exactly the same, but its residual value would fall to 55%.

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djdez · August 2003

Car_Man .. in my quest to lease a new car, something ELSE has entered the arena. I would NEVER think of leasing this car, but this lease deal seems almost UNBEATABLE !!!

There was an ad for a 2003 M45 for ... $399 a month/39 months, with ZERO due at signing, not even a security deposit or bank fee, just tax, tags and license fees. It was only a 10,000 mile a year lease though .. the only BAD thing about the deal, it seems.

Can this be possible ???

The car had an advertised MSRP of $44,205 ...

What is the residual and money factor that Infiniti (Nissan Finance) is running for this car, and there HAS to be some MAJOR incentives to get this to what looks to be a cap cost of around $36,000 to arrive at this payment.

At that lease deal, it's a STEAL -- looks like people were paying well OVER $500 a month to lease this car when it came out !!!

Thanks .. again !!

CarMan@Edmunds · August 2003

Hi djdez. Infiniti does have a fairly attractive lease program on the 2003 M45 right now. Let's take a look at it and see what it should cost to lease one right now. Infiniti Financial Services' base 39 month, 10,000 miles per year lease money factor and residual value for the 2003 Infiniti M45 should currently be .00049 and 52%, respectively. Using this information, if you were to lease a 2003 M45 with an MSRP of $44,795 and a selling price of $41,924 (dealer invoice), its zero down, pre-tax monthly lease payment should be right around $510. In order to get to a zero down, pre-tax monthly payment of around $399, the car that I just calculated this payment on would have to have a capitalized cost of around $37,700. Infiniti is running a couple of dealer cash programs on this car. I believe that the exact programs vary by region, but one that I am aware of provides $1,500 on all 2003 M45 models and the other provides dealers with what is known as closing certificates. These certificates are each worth $1,000 dealer cash and dealers may apply up to 3 on each deal. So when these two dealer cash promotions are combined a 2003 M45 could theoretically qualify for $4,500 in dealer cash. This would bring the payment to right around the level that is necessary to arrive at the $399 lease payment. Even though this is an extremely aggressive ad, it does seem possible. Just make sure to keep your eyes peeled for any tricks.

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crashtestdingo · August 2003

Whom did you talk to at the dealership? If it was a salesman, try talking to a different salesman. And is that the only Chevy dealership in your area? Also, don't forget, the GMC Yukon XL is almost identical to the Suburban, so try a GMC dealer.

Lease Questions - Ask Here

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