Lease Questions - Ask Here

liannell · August 2003

I was quoted 4% over invoice on a 2004 Audi A4 3.0L sedan. (That was to order one from the manufacturer, which would take 3-4 months to receive.)

jratcliffe · August 2003

OK, so:

MSRP: 35955
Selling price: 32100
Residual: 18425
Tax: 6 %
Term: 3 years / 12K per year
Drive-off: $1589
Payment: $525

I don't know if Toyota Finance has a lease initialization fee, but if we assume that it does, and that the $1589 includes the first payment, some cap cost reduction, and $500 in fees, they you get to a $525 monthly payment (including tax) with a money factor of .0031, about equal to an interest rate of 7.44%. It's highly likely they're padding this rate to make extra money (would also depend on your credit). You should be able to do much better. With a money factor of .002, similar to Honda's current unsupported rate on the Accord, your payment would be $467, for example. Definitely, ask them to show you the math for how they got to that payment. Also, you shouldn't be putting that much down - roll it into the lease, and pay as little in driveoff as possible, unless paying more upfront significantly lowers your money factor.

911c4 · August 2003

Hi Carman,

Heard that Porsche is introducting a new program called Porsche Loyalty Rebate Program. Basically, the program kicks back about 4-8K depending on the models. To be eligible, the buyer must be a current or previous Porsche owner. Is the program for real?

In addition, a Porsche salesman told me that the money factor from Porsche Credit has just went up again in the past 2 weeks.

kelwest · August 2003

Hey Car_man:

I am looking at leasing the Acura RL. I have done some comparison shopping with numerous dealers. The best price I have come up with is $1,000 drive off, and $540.00 per month (including tax) for a 36 month lease. I am told that the money factor for Acura's is presently extremely low. Is this a good rate? (I have no interest in purchasing the car at the end of the lease)

pfje · August 2003

Carman,

Yesterday I took a ride in a FX35 and a FX45. Both vehicles are awesome. Could you please tell me the resid./MF numbers for the FX35/45 (Technology Package) for August or September: 36/39 mo. 12-15K/yr?

Thank you so much Carman.
BK

CarMan@Edmunds · August 2003

Hi everyone. As you may have been able to tell, I have been away on vacation for the past week. I would appreciate it if those of you who still have questions about leasing would post them again. I will respond to your posts as soon as possible. Please note that most manufacturers' August lease programs are only scheduled to run through September 2nd so if you plan on leasing your new vehicle after than date I may need a little time to find out what its new September lease program is like. Thanks for your patience.

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kyfdx · August 2003

36 mos/15K miles... or 39 mos/15k miles if offered. I'll take the current numbers, rather than wait for next month.

You are the best!!

thanks, Car_man

kyfdx

liannell · August 2003

Welcome Back Car_man! I'm reposting my 2 questions, per your request:

You recently posted the following for a 2003 Audi A4 3.0L Sedan (not quattro, just front wheel drive)for 36 months and 15k miles/yr:
MF = .00005
Residual = 50%
Their 2004 models have just come out. I'm assuming the lease deal is different for the 04s, can you provide MF/Residual details?

And on the BMW 325i lease program...Do you know what the acquisition fee should be for a new 325i in NC? According to the BMW website, their Special Lease Offer has an $800 acq fee for NY residents, but none for residents of other states. I'm in NC, but I was just quoted a $725 acq fee from one dealer, and a $750 "Administration Fee" from another.

Thanks for all your help!!!
Lianne

njcarshopper · August 2003

Dealer quoted me $460/mo for a '03 Highlander limited for 39 month lease including tax, 12k miles/yr. Only problem is the 1589 drive off fee. Dealer claimed this number included $795 Bank Acquisition fee, 1st payment $460, $165 Doc fee and $150 for plates. The numbers dont add up but what is this Bank Acquisition fee??

pfje · August 2003

Welcome back Car_man!

Per your request, I am reposting my question reagarding leasing a FX35 or 45.

Yesterday I took a ride in a FX35 and a FX45. Both vehicles are awesome. Could you please tell me the resid./MF numbers for the FX35/45 (Technology Package) for August or September: 36/39 mo. 12-15K/yr?

Thank you so much Car_man.
BK

idealsound · September 2003

Carman - you are truley *THE* *CAR* *MAN* THANK YOU!!! Your wealth of information not only helps me immensely, but countless others here as well.

Now, let me wipe some brown off my lips, and ask my question.

What is the Current Money Factor for a BMW 325i 10,000 Mile/year 42 Month Lease?

Thanks, and seriously - thanks for all the 411!

kelwest · September 2003

Hey Car_man:

I am looking at leasing the Acura RL. I have done some comparison shopping with numerous dealers. The best price I have come up with is $1,000 drive off, and $540.00 per month (including tax) for a 36 month lease. I am told that the money factor for Acura's is presently extremely low. ($366.84 interest over the 3 year period, 17,593 depreciation) Is this a good rate? (I have no interest in purchasing the car at the end of the lease)

teck2u2 · September 2003

Carman,

What a wonderful service you offer! I need your help with a few questions. Thanks in advance. Here are my questions:-

1. Do you know if Ford will offer a better incentive after this one expires ($4000 cash back)?

2. What is your opinion on the Ford Red Carpet Lease and what should I look for?

3. I plan on leasing a Explorer XLT WITH 3ROW CLOTH SEAT AND RUNNING BOARDS, what should be my payment. My credit score is 730s

4.Please provide residual, money factor, buy back etc.

I like in the NY metro area. please help me. This is my first lease and I have no trade in. I plan on coming up with the taxes up front.

Thanks a million

Sham

CarMan@Edmunds · September 2003

Hey kyfdx. Here is the informaiton that you are looking for. If you were to lease a 2003 Honda Accord EX V6 without Navigation through American Honda Finance Corp. prior to September 2nd for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00210 and 56%, respectively. The numbers for an otherwise identical 39 month lease should be .00210 and 51%.

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CarMan@Edmunds · September 2003

Thanks Lianne. I am well rested and ready to tackle a new month of work

. You are right, Audi's lease program is currently much less favorable on its 2004 models. If you were to lease a 2004 Audi A4 3.0L Sedan through Audi Financial Services prior to September 3rd for 3 years with 15,000 miles per, its base lease money factor and residual value would be .00155 and 56%, respectively. It is very possible that Audi will enhance this car's lease money factors when it introduces its new September lease program at the end of this week.

As far as leasing through BMW Financial Services goes, I believe that its base lease acquisition fee for states that do not have issues with vicarious liability laws is still around $525. This is what its fee should be in your home state of North Carolina. If you were quoted a lease acquisition fee of $725 it is very possible that the dealer that you are working with is marking up BMW FS' base acquisition fee to add additional hidden profit to your deal. This sort of thing is allowed, but most dealers will back down if confronted about it.

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CarMan@Edmunds · September 2003

Thank you, njcarshopper. All banks that lease vehicles to consumers charge what is known as a lease acquisition fee, or a bank fee. This charge is usually around $400 to $500 and is charged by banks, so individual dealers have no authority to waive it. An acquisition fee of $795 sounds a little high to me, but is possible. This lease probably is not being run through Toyota Financial Services because I believe that its acquisition fee is more like $400 or so.

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CarMan@Edmunds · September 2003

Greetings BK. Let's take a look at the lease programs for the models that you are interested in. If you were to lease a 2003 Infiniti FX35 AWD through Infiniti Financial Services prior to September 2nd for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00156 and 50%, respectively. The numbers for an otherwise identical 39 month lease of this vehicle should be .00155 and 49%. If you were to lease one with only 12,000 miles per year, its residual values would be 1% higher. If you were to lease a 2003 Infiniti FX45 through IFS for 3 years with 15,000 miles per, its base factor and residual should be .00135 and 49%, respectively. The numbers for an otherwise identical 39 month lease of this model should be .00137 and 48%. Again, if you were to lease this model with only 12,000 miles per year its residual values would be 1% higher. I should have an idea what these models' new September programs are like by the end of the week.

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CarMan@Edmunds · September 2003

Thanks for the kind words, idealsound. Brown-nosing is always welcome here on the Finance, Warranty, and Insurance Message Board

. BMW is expected to introduce a new incentives program on September 3rd. If you were to lease this car prior to then, BMW Financial Services' 42 month, 10,000 miles per year base lease money factor and residual value for it should be .00150 and 57%, respectively. If you are not completely sold on leasing it, you can always finance it through BMW at 2.9% for up to 60 months.

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CarMan@Edmunds · September 2003

Hello kelwest. Thanks for taking the time to re-post your question. Even though you never mentioned whether you are talking about the '03 or the '04 version of this car, I assume that you mean the '04 because there can't be many 2003 RLs left on dealer lots at this point. Acura definitely does have some attractive lease money factors on the 2004 RL right now. American Honda Finance Corp.'s special lease money factor on it is .00006 for leases of up to 3 years in length. This is equivalent to an interest rate of right around 0.14%! I would be more than happy to calculate a sample lease payment on the exact car that you are interested in for you that you can use to compare with the quote that you have been given. However, in order for me to do so, I need you to provide me with its full MSRP, selling price, and how many miles per year you want to be able to drive it. Once I have this additional info I will be able to help you out. Talk to you soon.

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CarMan@Edmunds · September 2003

Hi Sham. It is difficult to say what a manufacturer will do with its future incentives programs. Generally speaking though as the model year progresses, automakers usually increase their incentives on leftover vehicles to help dealers make room for the new model year's products. Having said this, it is hard for me to imagine Ford providing more than $4,000 in lease cash on the 2003 Explorer when its new program is introduced. I personally feel as though the most likely scenario is that Ford will continue its August incentives on this model relatively unchanged. Keep in mind though that no one, even dealers, knows for certain what manufacturers will do with their future programs before they are officially introduced.

Ford's lease program is usually decent in that it provides lots of lease cash and low interest rates on models. The problem is that Ford's products, like most products that are being offered by domestic manufacturers, have relatively low residual values. These low residuals force consumers to pay more depreciation over the length of their leases and cause monthly lease payments to increase. So even though Ford has tons of lease cash and attractive lease interest rates on Explorers, its payments are not as low as they could be if this truck had higher residuals.

In order for me to give you an idea of what your monthly lease payment should be on the truck that you are interested in, I need some more information from you, including how long you want to lease it for, how many miles per year you need to be able to drive it, its exact options (i.e. 2WD, 4WD, etc...), its full MSRP, and its selling price. Once you provide me with this info I can tell you approximately what your lease payment should be on it.

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kelwest · September 2003

Hey Car_man:

Thanks again for providing me with advice re the 2004 acura rl lease. The gross capitalized cost is $40,742.00. The residual value is $23,050. My $1000 drive off includes $98.91 for gross capitalized costs. The monthly payments will be $540.00, including tax. Would this be a good deal?

footie · September 2003

Hi kelwest

You still need to provide:

MSRP - sticker price

Selling price - needed for tax reasons

Cap cost - (net of any cap cost reductions)

Residual or residual % ( $23050 which is about 50% of typical RL MSRP)

Number of years or months of lease (36, 39, 48)

Miles per year or total allowed miles ...

Advertised Acura RL leases here in Boston are like $460. $540 sounds more than a bit high.

kelwest · September 2003

Continuing on my Acura RL 2004 lease. The MSRP will be 46,100. The lease is for 36 months, mileage is 12K/yr. The sale price will be 40,643. The interest/rent charge will be $366.81 for the term of the lease. The cap reduction is $98.91. The residual value is $23,050. The total lease amount will be $498.89, plus tax of $41.16 for a total payment of $540.05. Is this a good lease? Should I take it? Thanks for your help.

CarMan@Edmunds · September 2003

Hi again, kelwest. Let's calculate a sample lease payment on this car and see what we come up with. According to my calculations, if you were to lease a 2004 Acura RL with an MSRP of $46,100 and a selling price of $40,643 through American Honda Finance Corp. prior to September 2nd for 3 years with 12,000 miles per, its zero down, pre-tax monthly lease payment should be right around $493.

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gmanusmc · September 2003

CarMan - Any word yet on GMAC residual and MF for 2004 Corvette Coupe (Hatchback) 36 & 48 Month 15K per year?

Thanks in Advance!

Bill G

djdez · September 2003

It was gettin a little lonely with ya gone !! I felt lost this past week !! Just kiddin .. anyway, here's a repost from a week or so ago:

Still fiddling around with the M45 deal -- that was GREAT information you gave me a week ago, but I'm getting the runaround from dealers. For a car that they couldn't seem to move, NOW they want to move them for MORE than those deals they advertised. ALL the dealers I have been to where SHOCKED when I brought up the 'closing certificates' and they were wondering WHERE I got that information! Then, of course they told me they USED all their certificates for this month - as if I'd know if they were telling the truth !! Also, some changed the money factors on me, and NONE of them seemed to have that 'elusive' $399 a month model, OR deal, nor would they even come close, YET, they advertised it !! You quoted me a money factor of .00049, but they said if you waive the security deposit, it becomes .00064, so I guess that makes sense. Plus, they didn't want to pass on the $1500 additional that you talked about. So basically, all they are relying on is the low money factor. SO much for getting a DEAL on this car !!

UPDATE -- I got them to get down to a $449/mo (with tax) payment with $1000 due at signing (everything), but it wasn't the particular model I wanted, however the sticker was $45,255 ... THEN, I was FLOORED after calling my insurance company and finding out my insurance would go up an additional $900 per YEAR -- making it around $2500 !!! So, that kinda threw this car out of mix !

I had another question as well - what is the TRUE holdback on Infiniti's ?? I thought it was 3%, the guy yelled at me and told me it was only 1 1/2%, yet this site says it's 1% of base MSRP PLUS 2% of base INVOICE ... which is really very close to just being 3% of base MSRP anyway. So, what's the real deal ??

Also, while we're at it .. they still had some 2003 G35's and I35's laying around. What would the money factor and residual be for 36 or 39 months, with 12000 miles per year ??? Will they introduce anything after September 2nd, to move these, you think ??

I'm seriously considering a 2003 G35 if they come up with a good lease deal in September to move them.

And, one last thing .. Acura was still running the great lease with the LOW money factor on the TL through 09/02/03 - do you think it will continue until all the '03's are gone, and are they planning on introducing any additional incentives since the '04 will be arriving in October. Speaking of the '04, any idea when FINAL pricing will be announced ?

Thanks again ! Sorry for the LOOOOOOONG post and all the questions.

911c4 · September 2003

hi Carman,

Welcome back. Here is the repost:

Heard that Porsche is introducting a new program called Porsche Loyalty Rebate Program. Basically, the program kicks back about 4-8K depending on the models. To be eligible, the buyer must be a current or previous Porsche owner. Is the program for real?

In addition, a Porsche salesman told me that the money factor from Porsche Credit has just went up again in the past 2 weeks.

metmdx · September 2003

CarMan:
Can you tell me what would be a good money factor/lease payment in NY metro area now on a '03Runner LTD with a MSRP of 38K considering '04's are just around the corner?

Thanks,
metmdx

meinrad · September 2003

With the price I was quoted (20,450), I thought I'd see a better monthly payment than I did.

I haven't yet found out what residual and money factor he used, but would be interested in knowing what I should be seeing.

We're trying to get a 36 month/12k mile per year lease on a 2003 Element 4WD Auto. Msrp of 21310.

Thanks for any help.

CarMan@Edmunds · September 2003

Hey Bill G. General Motors' new September lease program is scheduled to begin tomorrow, September 3rd. As a result, I have not had an opportunity to take a look at it yet. I would be more than happy to give you an idea of what this car's new lease program is like if you check back with me at the end of the week.

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CarMan@Edmunds · September 2003

Thanks djdez

. I am glad that you found the information about the closing certificates so helpful. Infiniti Financial Services' lease money factors do increase if you wish to have the security deposit waived. I believe that IFS' base factor is .00015 higher for vehicles with waived lease security deposits. As far as dealer holdback goes, I really don't know what it is on Infinitis right now. You should be able to find out more information on this subject by checking out the following page here at Edmunds.com: Edmunds.com Dealer Holdback Page. Knowing that dealers have holdback on their vehicles is a good thing to keep in mind when negotiating, however I must warn you that mentioning it by name in to dealers usually irritates them and causes negotiations to deteriorate. Keep it in mind when making an offer, but don't rub it in their face

.

I would be more than happy to give you an idea of what the lease programs are like on the G35 and I35 in September. However, Infiniti is not scheduled to release its September numbers until tomorrow, September 3rd. I should have had an opportunity to take a look at the new program by the end of the week. Please feel free to check back with me then and I give you an idea of what the new program is like.

I have not seen what Acura's new incentives will be like on the '03 TL yet either. I suspect that Acura will continue its current program on this car relatively unchanged for the month of September, but no one knows exactly what will happen until Acura publishes its new program.

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CarMan@Edmunds · September 2003

Thanks for taking the time to re-post your original message, 911c4
(very appropriate username by the way

). It is true that Porsche is providing owner loyalty cash on many 2003 models right now. According to what I have heard, this cash is available on all '03s excluding 911 Turbos, 911 C4Ss, and Cayennes. I have not personally had an opportunity to take a look at the program to see exactly what sort of cash allowances it provides, but I too have heard that it varies from $4,000 to $8,000, depending upon the model that one purchases.

As far as Porsche's lease program goes, I am sorry to say that your salesperson is lying to you. Porsche Credit did not increase its base lease money factors at all in August. In fact, according to what I have heard, it will continue its August factors unchanged through the end of October.

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CarMan@Edmunds · September 2003

Greetings metmdx. Toyota is not providing any sort of lease money factor support on the 2003 4Runner in its New York region right now. If you were to lease one through Toyota Financial Services in August, a TFS' base money factor should have been around .00220. I have not seen Toyota's new September incentives yet. I suspect that it will introduce its new program sometime tomorrow. Please feel free to check back with me towards the end of the week and I will gladly give you an idea of what its September program is like. If you would like me to calculate a sample lease payment on a specific truck for you, I will first need you to provide me with the following information: how long you plan on leasing it for, how many miles per year you need to be able to drive it, its full MSRP, and its selling price.

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CarMan@Edmunds · September 2003

Hello meinrad. Honda's August lease program just expired and I have not had an opportunity to take a look at its new September program yet. Please check back with me towards the end of the week and I should be able to give you an idea of what the new lease program should be like on this model. Talk to you soon.

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kelwest · September 2003

Hey Car_man:

In addition to considering the Acura RL, I am considering the Infiniti Q45. I understand that the base price of the Q45 is considerably Arcura RL, but it is a superior car. For this car, what is Infiniti's best money factor over a 3 year lease (12K/yr)? If I am considering $1K drive off (most of which will go to 1st month payment, license fees, etc.), what do you think is the best lease for the Q45 luxury at $49K (I do not know what the residual rate is, but the base price is $52,545.)

Thanks for your help.

911c4 · September 2003

hi Carman,

Thanks for the information. Now, I know the money factor has not changed for the past month. I will go back and ask for a lower money factor.

About the rebate program, do you know if the problem is open for previous owners? Or, the program is excluisvely for current owners only.

Thanks in advance,

tmn39 · September 2003

Hi Carman, could I trouble you for the new September Audi Finance lease MF and Residual on the 2004 S4 for the following 10k/39 and 10k/42 in Florida. And what the pretax payment would be with a MSRP of 49850 and a 1000 deposit.Thanks in advance.

metmdx · September 2003

Hey Car_man:
Sorry for the brain cramp. Of course you'll need miles, term, etc...Now that it's after Labor Day, I don't think I've fully recovered from a lack of summer around here.
I'll check with you later in the week with specs.
Thanks and sorry again !
metmdx

jeffreyb2 · September 2003

Car_man:

Could you provide the current money factors and residuals for 24 and 30 months with 12,000 miles per year for a 2004 350Z Touring Roadster with a list price/selling price of $37,000. I live in NY and would go with $0 down payment.

Thanks for your valuable consumer service!

Jeff

hooops · September 2003

Hi Car_man,

Can you please provide me with the residual and money factors for a VW Jetta GL and GLS as well as Passat GL for a 36 month / 15K mile lease. I live in the New York City metro area.

Thanks

CarMan@Edmunds · September 2003

Hi again kelwest. I believe that Infiniti is scheduled to publish a new lease program today. As you might imagine, I have not had an opportunity to take a look at it yet. Please feel free to check back with me at the end of the week and I should be able to give you an idea of what its new program is like. If you would also like me to calculate a sample lease payment on a particular Q45 for you then, please provide me with its full MSRP and selling price. Thanks. Talk to you then.

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CarMan@Edmunds · September 2003

You're welcome, 911c4. I actually was able to find out more information on Porsche's current owner loyalty program for you. It recently mailed a loyalty offer to over 35,000 current owners of 1999 to 2001 911 Carreras and 1997 to 2002 Boxsters. I do not believe that consumers qualify for this cash if they do not own one of the aforementioned models. If you do, let me know and I will be more than happy to see if I can find out what the exact loyalty allowances are for the model that you are interested in.

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CarMan@Edmunds · September 2003

Thanks tmn39. Vacations are great, but I am always ready to come home after about a week or so

. Audi's August incentives program is scheduled to run through today, September 3rd. As a result, I have not had an opportunity to take a look at its new September program yet. Please check back with me with a quick reminder late this week and I should be able to give you an idea of what its new program is like. Talk to you soon.

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CarMan@Edmunds · September 2003

No problem, metmdx. Talk to you later on this week.

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CarMan@Edmunds · September 2003

Hi Jeff. I believe that Nissan will introduce its new September incentives today. I should have had a chance to take a look at the new program by the end of the week. Please check back with me then with a quick reminder and I will do what I can to help you out. Thanks.

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CarMan@Edmunds · September 2003

Hey hooops. I haven't seen VW's new Sept. lease program yet either. I should have had a chance to take a look at it by the end of the week as well. Please post a reminder for me in a few days and I will let you know what I have been able to find out for you.

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bowke28 · September 2003

im not sure the exact #'s, but nissan structures their lease incentives for 39 month terms. you'll find your most reasonable deal at that term if you are willing to go a little longer. 39 month terms even beat 48 or 60 month terms in payment.

jeffmust2 · September 2003

With a 39-month term you pay for a new annual registration at month #36...most folks return the vehicle at end-of-lease...so, 3 months later, after you return it, the next buyer gets your paid DMV fee for the following 9 months...right? Petty to some; annoying to others.

bowke28 · September 2003

most states reimburse the balance, or apply it to the next car. i know for a fact that KY, IN, MI, OH, IL, TN all refund or rollover the balance.

multiplechoice · September 2003

Hi Car_man, I'm working on a deal with the Sienna XLE. Looking for the current MF and residuals for the 36 mo. 15k/yr program. I'm in southern cal. thanks.

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