Lease Questions - Ask Here

CarMan@Edmunds · October 2003

Hello Keith. Audi is only paying its dealers $500 dealer cash on their remaining 2003 A4 1.8T models, so you aren't missing out on too much cash by buying one at invoice. Here is the lease information that you need. If you were to lease an '03 Audi A4 1.8T Sedan with quattro through Audi Financial Services this month for 3 years with 10,000 miles per, its base lease money factor and residual value should be .00180 and 54%, respectively.

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nortsr1 · October 2003

CarMan,
If I were to lease a $50,000.00 SUV...and the the residual value was 50% at the end of the 3 year lease...Do I pay sales tax only on the $25,000.00 lease or on the whole $50,000.00? The reason I ask...When I filled out the lease form here on Edmunds, they seem to tax the full 50,000???? The sales tax here in NJ is 6%.

CarMan@Edmunds · October 2003

Good thinking, italia10. It never hurts to shop around for the best deal, between dealers and between manufacturers. Here is the information for the other vehicles that you mentioned. If one was to lease a 2004 Saab 9-3 Arc 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 .00197 and 56%, respectively. When negotiating a lease on this car, keep in mind that Saab is also providing $2,000 lease cash on it this month. This cash will enable one to negotiate a lower capitalized cost.

As far as the 2004 Volvo S60 2.5T AWD goes, if one was to lease one through Volvo finance this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00107 and 56%. The numbers for an otherwise identical 39 month lease of this car should be .00107 and 54%.

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CarMan@Edmunds · October 2003

Hi nortsr1. Tax laws vary from state to state, and even sometimes from county to county, so unfortunately I often do not know the answers to questions on the subject. If I am not mistaken though, I do not believe that you have to pay tax on the full $50,000 MSRP of your leased vehicle in the state of New Jersey. You may be able to find out more informaiton on this subject by visiting one of the following Web sites: New Jersey Department of Transportation Motor Vehicle Services or New Jersey Taxation site.

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CarMan@Edmunds · October 2003

Greetings Dasto. I would be more than happy to try to give you an idea of what the lease program should be like on the car that you are interested in. However, in order for me to do so, 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 it. Once I have this additional info I should be able to help you out. Talk to you soon.

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CarMan@Edmunds · October 2003

Hello viron. BMW has lots of dealer cash on its 2003 models. In fact, it actually increased its dealer cash on a number of them for the month of October. In order for me to give you an idea of what this cash is like, I need you to tell me what models you are interested in. When doing so, please be as specific as possible about the trim level of the vehicle that you are interested in, i.e. say BMW 330i rather than 3-Series, because BMW's dealer cash often varies depending upon what exact model one is talking about.

In your post the one model that you specifically mentioned was the 2003 BMW X5 4.4. BMW is currently providing $4,000 dealer cash on this vehicle. As far as its lease program goes, if you were to lease a 2003 BMW X5 4.4 through BMW Financial Services this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00225 and 48%, respectively. The numbers for an otherwise identical lease of a 2004 BMW X5 4.4 should currently be .00220 and 52%.

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CarMan@Edmunds · October 2003

Hi fletchfletch. I am sorry to hear about the high lease money factor that you are paying. Mercedes-Benz Credit Corp.'s base standard lease money factor for new cars and I believe for Certified Pre-Owned vehicles for Tier 1 customers is currently .00285 for 3 year leases. Its money factor for Tier 2 customers would definitely be higher than that, but I doubt that its base factor for Tier 2 customers would be as high as .00400 for 3 year terms. The dealer that you are working with may have marked-up MBCC's base money factor in order to add additional profit to your deal. This is completely legal and allowed by Mercedes-Benz. In fact, it happens all the time. Unfortunately, there really is not anything that you can do to lower this factor now that you have already signed your lease contract and taken deliver of your car.

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CarMan@Edmunds · October 2003

Hi gene1980. Ford publishes lease interest rates, instead of lease money factors. In order to come up with an approximate money factor equivalent, you should divide Ford's published lease rate by 2400. If you were to lease a 2004 Lincoln Navigator 4WD through Ford Motor Credit this month for 39 months with 15,000 miles per year, its base lease rate and residual value should be 3.75% and 44%, respectively. Ford is also providing $2,000 lease cash on this truck in most areas that may be used in conjunction with this supported lease rate to negotiate a lower capitalized cost.

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CarMan@Edmunds · October 2003

You're welcome, hooops. The lease money factor that I provided you with should be available for all Sequoia models. Toyota Financial Services has a strange policy on its residual values. It does not allow every option to be residualized and it also has caps as to how much money can be residualized.

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CarMan@Edmunds · October 2003

Hello ngkiyan. I would be happy to calculate a sample lease payment on this car for you. According to my calculations, if you were to lease a 2004 Honda Accord EX without leather or navigation (MSRP: $26,990 / Cap Cost: $25,804) through American Honda Finance Corp. this month for 3 years with 15,000 miles per, its zero down, pre-tax monthly lease payment should be right around $362. I used a lease money factor of .00210 and a residual value of 59% to calculate this payment.

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CarMan@Edmunds · October 2003

Hi somepair. The 2004 Acura TL just came out a couple of weeks ago and I have not seen its lease residual values yet. Without this information I can not calculate any sample lease payments on it at this time. I am sorry that I could not be of more help.

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rodc1 · October 2003

Car_man, do you have the residual and money factor for Sienna XLE. 12000miles/year for 36 months?

hooops · October 2003

Hi Car_man,

You had only posted the residual for the 2004 SR5 Sequoia 4x4. Can you please post the money factor. Thanks for answering the question about TMC residualizing the options. Is there any dealer cash back on 2003 Sequoia SR5 4x4 ? If so, can you provide me with the MF an Residual.

My suburban LT 1500 lease is up next month. It was a great car, but the 2004's have become much too expensive. The Armada is out since it's going for list or better. I'm looking for a large SUV or possibly one of the larger midsize SUVs with leather to accommodate 5 children, my wife and I - total of 7. Any ideas on what SUV would be the most competetively priced in terms of leasing this month ?

Thank you

smason1978 · October 2003

Car_man,

Thanks for getting back with me..I thought I saw an Infiniti G35 Coupe Risidual / Money Factor...but guess I didn't.

Could you quote me that with a Coupe 6MT / Leather..15k miles 36 months.

Thanks, you're great!

mitsu6 · October 2003

First of all I would like to thank you very much and Edmunds for this website. Very very enlightning. Thank you

Second, would u please explain to me what does the money factor mean, also residuals and how do they work/applied? I am in automotive industry business, and I help people in what ever I can the right way, because I saw so many things in this industry that I didn't like but I have to pay my bills and I like what I do too. If any body has a question I perhaps be able to guide the person the right way. I am learning little by little about leasing. I know credit is a factor in a way to be in a affordable monthly payments.
I had a customer that went into a new vehicle but this time she purchased the vehicle.The unfortunate thing is that when she was leasing the vehicle at the end of the lease she was charge a disposition fee (about $350). To be honest with u I didn't know what that was. My customer was not informed about this when she leased the car. So I kindly explain to her why. Nevertheless I got a good deal for my customer on a new vehicle. My customer was pretty happy and I told my customer to sent me customers. Cool

')

CarMan@Edmunds · October 2003

I sure do, rodc1. If you were to lease a 2004 Toyota Sienna XLE through Toyota Financial Services this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00220 and 62%, respectively for consumers who qualify for its top credit tier.

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CarMan@Edmunds · October 2003

I thought that is all that you asked for, hooops. Toyota is not providing any sort of lease support on the 2004 Sequoia in any of the regions that I am familiar with. So if you were to lease one through Toyota Financial Services in October, you would have to use its standard lease program. I believe that TFS' base lease money factor is currently .00220 for consumers who qualify for its top credit tier.

Toyota is providing customer cash on the 2003 Sequoia in many of its regions. I don't recall if you ever mentioned what state you are in, but if you let me know I would be more than happy to give you an idea of what Toyota's customer cash and special financing offers are like in your area.

Unfortunately, for whatever reason, manufacturers usually do not provide attractive lease programs on large SUVs. I think this is mainly because most domestic products have relatively low residual values and most Asian and European companies can easily sell their SUVs and do not have any need for support. the Mid SUVs that have the most support available on them right now include the Ford Explorer, Chevrolet Trailblazer, Jeep Grand Cherokee, Dodge Durango, and Nissan Pathfinder. Manufacturers are providing some fairly attractive cash and special financing incentives on the Chevrolet Tahoe, Chevrolet Suburban, GMC Yukon, GMC Yukon XL, Ford Expedition, and Ford Excursion but their lease programs really aren't that great.

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CarMan@Edmunds · October 2003

No problem, smason1978. I am glad that I was able to help you out. Here is the rest of the information that you are looking for. If you were to lease a 2004 Infiniti G35 Coupe through Infiniti Financial Services this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00200 and 60%, respectively. You actually will probably get a lower lease payment on this car by leasing it for 39 months if you decide to go through Infiniti Financial Services. Some consumers prefer not to lease for longer than 3 years because some brands only come standard with 3 year / 36,000 bumper-to-bumper warranty coverage. However, this car comes with 4 yr. / 60,000 mi warranty coverage so you don't have to worry about the slightly longer 39 month term. IFS' 39 month money factor would be exactly the same, but its 39 mo. 15,000 miles per year residual value would drop slightly to 59%.

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CarMan@Edmunds · October 2003

You're very welcome, mitsu6. I am glad to see that you enjoy this discussion so much. You should be able to answer the majority of the questions that you have on lease terminology by reading the following article that is available here at Edmunds.com: Leasing Glossary. Once you have read that piece, you may also want to check out the following articles as well: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment. By reading these pieces, you should have be able to get a good understanding of just how leasing works. If not, or if you think of any other questions that the articles do not cover, please don't hesitate to ask.

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KCRam · October 2003

mookie, it is our policy not to discuss any internal matters between Edmunds and Town Hall members. What Car_Man, myself, or any other host here at Town Hall do as far as discipline of or communication with other members is not for public knowledge. Regardless, no member has the right to respond as you did, provoked or not. If you feel you can not respond in a civil manner or ignore someone else's comments, I strongly recommend you log out and return later when you have calmed down.

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smason1978 · October 2003

Thanks again Car_man!
How's this for a curveball though?

I was just on the Inifiniti site (your numbers are making me drool)...and saw that they have a
"SignatureGRADUATE® clients enjoy low Annual Percentage Rate (APR) and special leasing terms."

Any idea what this means? It appears that I qualify since I am in Grad School (as well as have a job that can cover the payments).

Any idea what this may mean in terms of a lease?

Thanks in advance!!!

hooops · October 2003

Hi Car_man,

I'm grateful for all your help.

I live in the ny metropolitan area (just outside nyc). Can you please let me know what kind of incentives can be applied to leasing a 2003 Sequoia SR5 or Limited 4x4 for 36 month / 15k miles yr.

You had also mentioned the Ford Explorer and Chevy Trailblazer. Can you please provide me with the lease numbers (money factor & residual) and whatever incentives can be applied towards leasing a Ford Explorer XLT 4x4 4.0L V6 and Chevy EXT Trailblazer LT 4x4 for 36 month / 15k miles. And if you don't mind, can you provide the numbers on a Toyota SR5 4-Runner with 4.0 V6 4x4 -since you can now get a 3rd seat in it.

Thanks again for all your help.

liannell · October 2003

It took me a few days to get back here after you responded to my posts, so I'm a little late in saying THANKS! But I wanted to make sure you knew how much I (and we all) appreciate all the info you share with us!

LianneLL

liannell · October 2003

I just noticed that Audi's terms are much different in Oct than they were last month. On the 2004 A4 3.0L, using 36 months and 15k/yr, last month the residual was 55% and this month it's 60%. Shouldn't the residual values stay pretty constant until you get to the end of the model year? We're talking a 2004 model here, why would it's residual increase that much in a month? Carman, your thoughts are much appreciated. Thanks!

LianneLL

jginnyc · October 2003

i'm about to lease a car and after getting some preliminary data from the dealer, I believe the money factor is high based on prevailing interest rates. Would I have the option of bringing in my own leasing company to work with me? The dealer would be happy selling the car at the price we negotiated.

If this is a viable approach, how does one go about finding these types of leasing companies? A yahoo search yielded only companies like carsdirect, autoweb, etc. BTW - I live in NY state, and LeaseCompare.com does not work for NY

Thanks!

CarMan@Edmunds · October 2003

Hey smason1978. I am not all that familiar with Infiniti's recent college grad program, but if I am not mistaken I believe that it does not have any better rates than normal associated with this program, but just provides special consideration to students that allows them to qualify for its best credit tier, i.e. lowest lease and interest rates, when they might not ordinarily have been able to do so.

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CarMan@Edmunds · October 2003

We sure have a lot of "Re"s up there, hooops

. I am not sure if Toyota allows its normal consumer cash to be combined with Toyota Financial Services' standard lease program. Just in case, here is the information that you are looking for. In October Toyota is providing $1,000 consumer cash or 0.0% special financing for up to 3 years, 1.9% for 4 years, and 2.9% for 5 years.

As far as the new trucks that you are considering go, if you were to lease a 2004 Ford Explorer XLT 4x4 through Ford Motor Credit this month for 3 years with 15,000 miles per, its base lease rate and residual value should be 5.25% and 45%, respectively. Ford is also providing a total of $2,500 lease cash on the '04 Explorer in your area right now. If you were to lease a 2004 Chevrolet Trailblazer EXT 4WD through GMAC this month for 3 years with 15,000 miles per, its base lease rate and residual value should be 3.5% and around 52%. GM is providing $1,000 bonus cash that may be combined with this lease program on the '04 Trailblazer EXT in your area right now.

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CarMan@Edmunds · October 2003

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

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CarMan@Edmunds · October 2003

Sorry about the confusion, liannell. I accidentally looked at the 30 month column. Sometimes the copies of the programs that I get to see are faxes of faxes and are a little difficult to read. You are absolutely correct, this car's 3 year 15,000 miles per residual value should still be 55%. This car's base money factor is the same for both 30 and 36 month leases so the number that I provided you with earlier is still good. Sorry again about the confusion.

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bond11 · October 2003

Hi Car_Man

I'm looking at an 04' Cayenne S lease deal that looks pretty good, I's like to know your opinion of how good a deal this really is - The sticker on the car is $60,500 - so it's a pretty basic Cayenne (still nice though) - the deal is as follows 48 months - (12K/yr) the sales rep told me that to move the car he could get me 15K at the same price) for $679/mo plus tax - $0 down except tax tag and title which adds about $1000. Then they throw in this $2900 refundable security deposit (which earns interest and that you get back at the end of the lease - so in reality you have about $3900 out of pocket out the door (includes 1st month payment).

I believe the residual is right at 52%

I drove the Touareg V8 and the FX45/35, I can't seem to make up my mind as their lease prices seem very high comparatively (considering the cars are worth approx $20K less.

What do you think?

bmwboy777 · October 2003

Is there any negotiability on the residual price for a BMW X5 '01?

Thanks.

CarMan@Edmunds · October 2003

Hi jginnyc. If you let me know what vehicle you are interested in, I would be more than happy to give you an idea of what its lease program should be like. On vehicles with lease support, one can usually get the most attractive lease payment by going through its manufacturer's captive finance company. However, when leasing unsupported vehicles one can often get a better lease payment by going through an independent bank. Unfortunately, it is very difficult for consumers to find independent banks to lease though on their own. Dealers have computer systems that allow them to search the country for banks with the most attractive lease programs and can usually lease vehicles to consumers through the best available program. If your dealer is running your lease through an independent bank and you feel as though your payment is too high, you should comparison shop with a few other dealers to see if they can provide you with a more attractive payment.

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CarMan@Edmunds · October 2003

Hello bond11. Do you happen to know this truck's selling price? It would help me in my calculations. Remember that vehicles' selling prices are negotiable on leases, just as if you were paying cash for them. The selling price is a very important number to know when leasing a vehicle because without it it is difficult to tell how good a deal one is getting.

This deal is a little complicated because I am not sure exactly how much of a deduction Porsche Credit provides consumers with for each additional security deposit. For now, I will calculate a sample lease payment on this vehicle assuming just one security deposit. It will at least provide you with a reference point. According to my calculations, if you were to lease a 2004 Porsche Cayenne S (MSRP: $60,500 / capitalized cost $60,500) through Porsche Credit this month for 4 years with 15,000 miles per, its zero down, pre-tax monthly lease payment should be $859. This payment assumes that you are being sold this vehicle at full MSRP, which probably is not very realistic in the current market. You more than likely will be able to negotiate some sort of discount. If you were to negotiate a selling price of $1,000 off of its MSRP, its payment for an identical lease would fall to $836. If you were able to negotiate a $2,000 discount, it would fall to $813. So the lease payment that you were quoted actually looks pretty good to me. In fact it is low enough that it is possible that this lease is being run through a bank other than Porsche Credit.

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CarMan@Edmunds · October 2003

Hi bmwboy777. I haven't spoken with anyone who has tried to negotiate a lower lease-end purchase price with BMW Financial Services lately so I do not know what your chances are like of getting them to lower your current vehicle's selling price. I can tell you this though, you have nothing to lose by asking. Place a call directly to the bank that you are leasing it through, likely BMW FS, and see if they are willing to work with you. If you do not get anywhere with your initial contact, you may be able to get better results by working your way up the ladder a few rungs. Good luck and I'd love to hear if they were willing to work with you if you wouldn't mind coming back and letting us know how everything turns out.

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hooops · October 2003

Hi Car_man,

Can you please provide me with the money factor and residual on a 2004 4.0L SR5 4Runner 4x4 for 36 months with 15k miles / yr. Also, can you provide the money factor and residual on a Durango SLT 4x4.

Thanks

deejay16 · October 2003

Car man, thought I'd post and tell you how my experience with the Accord ultimately turned out. I called the dealer back and told him I was just going to ride out the last 6 months of my lease as there was really no great deal being offered to motivate me to trade up.
Well, the sales manager comes back and offers me a 2004 Accord LX sedan for $0, 12K miles, 39 months, $273/month-and that includes my sales tax. On top of that he is offering to by my 2001 Accord for the lease buy out amount ($14,500). I agreed and went to the dealership that night. After pick out the color (silver) I want from the lot, I sign his hand written *agreement* stating the terms and then a regular sales guy starts my paper work. No less than 10 minutes later the sales manager comes in and says "we must have gotten confused, that deal was supposed to be for a 2003 not a 2004". He tells the sales guy to show me a 2003. There is only one 2003 on the lot in silver and the sales guy has forgotten the keys. I notice that the car looks a little less than brand new and ask how many miles are on it. He did not know so I made him drive back to the main building and get the key. Turns out the car has 8000 miles on it! We both go back into the sales manager's office and I tell him in no uncertain terms I am not leasing that car. He agrees and I lease the original 2004 for the terms we agreed on and he buys my 2001.
Spent four hours at the dealership but I now have a new 2004 Accord LX sedan for my wife to drive and it cost me no money out of pocket and my payments are less than I was paying on the 2001-which I put nearly $2000 down on back when I leased it.
At any rate that's how it all turned out, good deal no?

jginnyc · October 2003

Thanks, Car Man. Here's the info: I'm looking at the Volvo XC90, T6 engine. My issue is that I'm a New York State resident and as I'm sure you know, there has been some chaos with leasing in NY after the court ruling against Chase - everyone has scrambled to find new leasing companies. The lease company offers a 36, 39, or 48 month lease with a money factor of .00319 and residuals of .63, .62, and .55 respectively.

My dealer says that the lease deal from the finance company they use is preferable to leasing through Volvo Finance, especially for the XC90. I think the money factor is high and will try to negotiate it down with the dealer. Any deals out there? Your thoughts? Thanks again.

chrism124 · October 2003

Car_man,

Do you have lease information on the 04 MDX Touring (w/o nav & RES). The lease would be based on 3 years / 12k miles.

Thanks,
Chris

ngkiyan · October 2003

Hi Carman,
Just want to say thanks and to let you know that with the information I got, I have suceesfully leased my second car since joining this board and each time it has saved me some money. It shows that it pays to know your numbers or the dealer would eat you alive. Thanks. John

jim52 · October 2003

Car_man, what is the residual and money factor on a 36 months, 12K per yr lease on an 04 Navigator Ultimate package?

totcessp · October 2003

HI Car Man, Dealer offered a 2003 X5 3.0 with Steptronic,xenon, moonroof for $42,900. I have a 2001 Explorer Eddie Bauer for trade in with 39K miles, getting $14000 for my car and payoff is $20,800. So they want $4000 down and around $750 for 42 months. Money factor is .0026 which seems high to me. Any factory rebates? or current Money Factor/ residual for 2003?. South Florida dealer Thanks for your help, Thomas (lease is 12k per year)

gperr · October 2003

Car_man,

Thanks again for the Pilot Numbers- this one is also in the running for my friend:

'04 Mazda Tribute ES-V6 (4x4)

36 months 12k miles.

Also, what is Mazda's Bank/acquisition fee?
thanks
Gregg

CarMan@Edmunds · October 2003

Hey hooops. Here is the information for the latest two models that you are considering

. If you were to lease a 2004 Toyota 4Runner SR5 4x4 through Toyota Financial Services this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00220 and 61%, respectively. As far as the Durango goes, if you were to lease a 2003 Dodge Durango SLT 4x4 (the 2004 Durango is not out yet) through Chrysler Financial this month for 3 years with 15,000 miles per year, its base lease money factor and residual value should be .00191 and in honor of the approaching holiday Halloween a scary 37% in your area (there is some regional variation in this truck's lease program). In an effort to offset this truck's terrible residual value, DaimlerChrysler is also providing $4,500 lease cash on it that may be used to negotiate a lower capitalized cost.

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CarMan@Edmunds · October 2003

Hey deejay16. Thanks for taking the time to come back and let us know how everything turned out. It sounds like everything turned out great. Your current Accord's residual value must have been fairly reasonable for them to do this deal. You did a nice job sticking to your guns and not getting railroaded into a demo car that was a year older than what you wanted. Congratulations and enjoy your new car.

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CarMan@Edmunds · October 2003

I see that you are interested in leasing a Volvo XC90, jginnyc. I am not surprised that you are interested in leasing this model through a bank other than Volvo Finance. Volvo is not providing any sort of lease support on it at this time and its program is not very good. In fact, I believe that less than 10% of all XC90 leases are currently run through Volvo Finance. The money factor that you were quoted, .00319, actually is not that bad when one compares it to Volvo Finance's current standard lease money factor of .00345. Again, I would take notes on the lease that you have been offered, including the lease money factor, residual value, and selling price and then comparison shop with a few other Volvo dealers in your area (there is a number of Volvo dealers in the New York area). By doing so you should be able to figure out if the deal that you have been offered is as good as it is going to get for this model at this time.

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CarMan@Edmunds · October 2003

Greetings Chris. Unfortunately, I have not seen Acura's new residual values for the 2004 MDX. I can tell you though that Acura is not providing any sort of lease support on it at this time. So if you were to lease one this month through American Honda Finance Corp., you would have to use its standard lease money factors. Fortunately, AHFC's standard lease program is very reasonable. I believe that its 3 year base standard lease money factor is currently around .00205. It is much more important to know this model's base money factor than residual value anyhow because dealers can mark up factors to add additional profit to deals, but they usually do not have any authority to alter banks' residual values.

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CarMan@Edmunds · October 2003

That's great news, John. I am glad to hear that everything worked out well for you. This is the second car that we have spoken about huh. I certainly have been doing this for a long time

. Enjoy your new Accord!

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CarMan@Edmunds · October 2003

Hello jim52. Let me begin by saying that Ford Motor Credit, much like General Motors Acceptance Corp., does not publish lease money factors for the models that it leases. Instead it publishes lease interest rates. These rates can be converted into approximate lease money factors by dividing them by 2400. Now here is the information that you are looking for. If you were to lease a 2004 Lincoln Navigator 4WD through Ford Motor Credit this month for 3 years with 12,000 miles per, its base lease rate and residual value should currently be 3.5% and 47% in most areas. In addition to this supported lease rate, Ford is providing $2,000 lease cash that may be used to negotiate a lower capitalized cost on this truck.

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CarMan@Edmunds · October 2003

Hi Thomas. Wow you are really upside down on your Explorer. You may want to look up this truck's True Market Value by visiting the new car pricing section of this site (link: Edmunds.com New Car Prices, Reviews & Info and also stop by the Real World Trade-In Values discussion that appears on the Smart Shoppers Message Board (link: Real-World Trade-In Values) to see if you are getting a fair allowance for your current truck. Remember that consumers can usually get more money for their used vehicles by selling them on their own rather than trading them in. Even though it is a hassle to sell vehicles privately, it might not be a bad idea in this situation given the fact that you are so upside down. That is if you have the cash laying around to cover your negative equity.

I normally advise consumers to lease vehicles without putting any money down, but in your situation it may be necessary to make a down payment in order to cover some of your negative equity. BMW is no longer providing lease support on the 2003 X5, but they do have $3,000 dealer cash on the '03 X5 3.0. This cash may be used to negotiate a lower selling price. In order to find out if you are taking advantage of this cash, you need to find out this model's full MSRP and compare it to the selling price that you have been quoted. The lease money factor that you were quoted looks a little on the high side to me. Right now I believe that BMW Financial Services' base standard lease money factor is .00235 for 42 month terms. In your post you mentioned that you were quoted a factor of .00260. The dealer that you are working with may be trying to mark up this vehicle's base factor in order to add additional profit to your deal.

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CarMan@Edmunds · October 2003

No problem, Gregg. If your friend was to lease a 2004 Mazda Tribute ES-V6 (4x4) through Mazda's captive finance company this month for 3 years with 12,000 miles per year, its base lease money factor and residual value should be .00129 and 52%, respectively. I believe that its base lease acquisition fee is currently around $475.

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