Lease Questions - Ask Here

jim52 · October 2003

Do you also have the same info on a 4 yr, 12K mile per yr lease on the 04 Navigator?

chrism124 · October 2003

I am very familiar with the dealer marking-up the m.f. as it almost happened to me with my last lease (BMW 5 series). I was given an m.f. rate of .00255 for a 04 MDX Touring based on 3 yrs / 12k miles and a tier 1 rating. Lease payment would be $549 with just 1st month & acquisition fee down. Sell price being MSRP. When do you expect to have lease information, as I would like to verify the m.f. rate.

Thanks again,
Chris

elag1 · October 2003

Could you please provide me with the money factor and residual for the following cars........ INFINITI I35 2004, Lexus ES330(2004) and Lexus ES 300 (2003) all for 36 months 12k mile
thank you so much!!

hooops · October 2003

Hi Car_man,

Thanks for "all" the info you provided me with on SUVs. Since I reside in NY, Ford and GM do not provide standard leases. Ford has the Red Carpet Option and GM has a smart buy option. Do you know if there is any Gap provisions with these packages ? My concern is that if the car is stolen or totalled, I'll be responsible for the difference of what is owed and what the insurance company would pay. I know with these packages you also have to pay tax on the cost of the vehicle and not just what you lease, but apparently there are discounts to offset this - do you know if this true ? Any additional info that you may know of on the Ford and GMAC packages would be much appreciated.

Thanks

zueslewis · October 2003

the SmartBuy lessee pays sales tax just like a purchase, with an interest rate just like a regular loan.

There's no advantage - you don't on the car and you pay higher insurance premiums.

Jim
Written hundreds of SmartBuys, won't recommend them.

mjfloyd1 · October 2003

If you can afford to buy a car straight out, is there any benefit to a lease?

What are the "red carpet" and "smartbuy" plans? I assume loans with a balloon payment??

Thanks,
Mark

zueslewis · October 2003

but a Ford Red Carpet Lease is a regular lease, the SmartBuy is a modified lease.

The SmartBuy lessee pays sales tax just like a purchase, with an interest rate just like a regular loan.

In fact, the GMAC SmartBuy contract looks almost identical to a GMAC standard loan, except with a balloon payment and a "SmartBuy Rider" attachment note on the top of the contract.

The "rider" outlines all of the leasing differences from a regular contract.

Nothing wrong with a GMAC lease - the SmartLease is just like most others.

The SmartBuy, at times, may look better because you can keep some rebates and things and the rates are special - remember, though, you still pay sales tax just like a loan, and depending on the caliber of vehicle you're looking at, that could be several thousand dollars.

hooops · October 2003

I live in NY and have been told that the Red Carpet Lease is not available. I've also been told that GMAC is not leasing in the state either. If this isn't true, can someone let me know. Ford is offering a Red Carpet Option and GM is offering the Smart Buy. There's a baloon payment at the end if you want to keep the car or you can turn it in like a lease. As far as I know, you do pay tax on the cost of the vehicle. I'm not sure if there are additional incentives that can be used with these plans nor am I sure about the interest rate used.

Does anyone know if there are provisions to cover you like gap insurance does with a lease with the Red Carpet Option or Smart Buy ?

If Ford and GM are still offering leases in NY, can someone let me know. I spoke to 2 Ford Dealers and they said know, although Ford Credit said they still do. What about GM - are they still leasing in NY ?

hooops · October 2003

Hi Car_man,

We're getting ready to make a deal on a Pilot, but before we do, can you please confirm the #s I was presented. We're looking at an EX-L ("without" nav and "without" dvd) for 36 months with 15k miles a year. I was told the residual was 58 %, MF was .0021 and there's a very high Acq Fee of $895. Are these correct for NY (just outside NYC) ?

I was concerned because I searched previous posts and found (7971) that you indicated the residual last month was 62% for an EX and I was surprised to see a 4% drop. Is there a difference in the residual between an EX and EX-L ?

Thanks as always

jim52 · October 2003

in reference to your response to my question above (#8237), the dealer is telling me that the residual is 46% for the 4X4 and that the 47% is for the 2 wheel drive model. Is this true. Also, they are saying that a 39 month lease has a money factor of 3.75% and that the 3.5% is only for 36 months. Can you confirm this also?

enterthematrix · October 2003

I'm looking to lease a Toyota Matrix XR Automatic FWD for 3 years and 12K miles a year. I plan on adding:
- Extra Value Package #1 which comes with cruise control, front and back underbody spoilers, and integrated fog lamps.
- premium 3-in -1 cd/radio/cassette with six speakers system.
- 4 wheel ABS
- Autodimming mirror with compass
If you can post a good lease price or if anyone has leased a similar model, please post the deal you received.

CarMan@Edmunds · October 2003

You're welcome, jim52. If you were to lease a 2004 Lincoln Navigator 4WD through Ford Motor Credit this month for 4 years with 12,000 miles per, in most areas its base lease money factor and residual value would be 4.75% and 39%. The lease cash for this truck would be exactly the same as I mentioned earlier.

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CarMan@Edmunds · October 2003

Hi Chris. As I mentioned in an earlier post, I don't know if American Honda Finance Corp. has revised its standard lease money factors recently. I do not believe that they have, but it is possible. The last that I heard, AHFC's base standard lease money factor for a 3 year lease was .00205. This is much lower than the factor that you were quoted. Even if it has increased, it would have only been by a small amount, definitely not enough to bring its base factor all the way up to the .00255 that you were quoted. I personally believe that this dealer is marking up AHFC's factor on you.

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CarMan@Edmunds · October 2003

Greetings, elag1. Here is the information that you are looking for. If you were to lease a 2004 Infiniti I35 through Infiniti Financial Services this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00200 and 54%, respectively. The numbers for an otherwise identical lease of a 2004 Lexus ES 330 without navigation though Lexus Financial Services should currently be .00200 (in most areas excluding the West Coast) and 59%, respectively. Last but not least, the numbers for an otherwise identical lease of a 2003 Lexus ES 300 should be .00200 and 48%. Lexus is providing $500 dealer cash on its leftover 2003 ES 300 models to help them sell their remaining inventory. This cash may be used in conjunction with the aforementioned lease program.

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jsrcar · October 2003

CarMan,
Was wondering if you have any information on money factors and residuals for a 36 month 15,000 mile lease. No money or 3,000 down? Thank you in advance.

jsrcar · October 2003

CarMan,
Was wondering if you have any information on money factors and residuals for a 36 month 15,000 mile lease. No money or 3,000 down? Thank you in advance.

CarMan@Edmunds · October 2003

You're welcome, hooops. I don't know if Ford Motor Credit or GMAC automatically provide gap insurance to consumers who get balloon notes through them. You need to check with them directly or perhaps speak with someone in a dealership's F&I department to find out.

You are right about the tax on balloon note programs. In many states it is indeed more than the tax on a lease would be. Many manufacturers are offsetting this increased tax by providing special cash allowances on balloon notes, especially in the state of New York. Manufacturers realized that consumers would not switch from leases to balloon notes in states like New York unless they provided additional cash support to make balloon note payments very similar to what lease payments would have been on an equivalent model. On certain models this special balloon note cash can amount to several thousand dollars.

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knockoff · October 2003

Thanks Car_man for the numbers on the Touareg (#8087). A dealer called 3 days ago & said VWofA had "just" lowered the rates on leasing a Touareg. Does that alter what you gave me?

Sorry to bounce around, but I just drove a Nissan Armada & was very impressed for the price. What are the lease numbers on an Armada SE Offroad, 15,000 miles/year for 36 months? MSRP is approximately $43,000. Thanks.

CarMan@Edmunds · October 2003

Hi again hooops. I see that you have decided on the Honda Pilot. It's a nice truck. I think that you will enjoy it. According to the information that I have seen, if you were to lease a 2004 Honda Pilot EX-L without the navigation or rear entertainment systems 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 60%, respectively. AHFC's current base lease acquisition fee is $500. Having said this, AHFC no longer provides leases to residents of New York so I doubt that your deal is being run through them.

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CarMan@Edmunds · October 2003

No problem knockoff. I do not believe that Volkswagen has altered its lease program on the VW Touareg since it announced its October program on the first of the month. Its base lease money factor is still .00160 for up to 36 months and it is still providing $500 lease cash on the '04 Touareg V6.

As far as the Nissan Pathfinder Armada goes, if you were to lease a 2004 Pathfinder Armada SE 4WD through Nissan Motor Acceptance Corp. this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00200 and 55%, respectively.

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CarMan@Edmunds · October 2003

Jim52, according to the latest information that I have seen for the 2004 Lincoln Navigator (October 1st) its 3 year, 12,000 miles per residual value for the 2WD model should be 48% and for the 4WD should be 47%. The 39 month base lease rate for this truck is indeed 3.75%, rather than the 3.5% that is available for 36 month Ford Motor Credit leases. This model's 39 month residual values would be 1% lower than the 36 month numbers that I just posted.

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jim52 · October 2003

Thanks. So to clarify, the 04, 4x4 residual and money factor for a 39 month, 12K lease are 46% and 3.75% respectively? For a 36 month lease they are 47% and 3.5% respectively?

knockoff · October 2003

Thanks.

elag1 · October 2003

Hi car man thanks so much for your help re Lexus and Infinti I35 ..one other car that I would love info for..that is 2004 Maxima 3.5 SL would like money factor and residual for 36 month lease with 12k miles..thank you!!!

CarMan@Edmunds · October 2003

You are absolutely correct, jim52.

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CarMan@Edmunds · October 2003

No problem, knockoff.

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CarMan@Edmunds · October 2003

You're welcome, elag1. Here is the info for the other car that you mentioned. If you were to lease a 2004 Nissan Maxima 3.5 SL through Nissan Motor Acceptance Corp. for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00165 and 56%, respectively.

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djdez · October 2003

I was looking at the cars you are interested in. Since you looked at the I35, have you checked out Infiniti's M45 ??? If you are looking to lease, this car is the BEST value for your money. You can probably lease one cheaper than an I35 ! Thanks to Car_man, I got a GREAT lease on one !!! I STILL owe ya for that Car_man !!!

Of course, you have to like the styling of the car, which is a little different, and I did - and I'm leasing a $46,000 car for about the price of a $30-35k car ! The deals are simply INCREDIBLE on them right now -- and I believe the deal is still going on.

Just a thought, in case you're interested. My personal opinion is that based on value, it blows away all the other cars you are looking at ! And it has EVERY possible feature you can want !!!

smason1978 · October 2003

Carman

Thanks for all your help.

Evidently Mazda just added the Rx-8 to the supplier discount this week!!!!

I'm now wondering if maybe the lease rates have changed on them or anything.

Could you let me know the rates/residual on a 36 month 12k and 15k per year.

This is so awesome!!!

Thanks!!

jzlemonz · October 2003

CarMan,

I'm looking at leasing either the 04 RX330 FWD or an 04 V70 2.5T FWD, for either 36 or 48 months, 15,000 per year. Can you give me the latest info on residuals, money factors, and any other fees?

Thanks

buster6 · October 2003

Hi car_man,

Can you give me the residual factor and tier 1 rate on a 3 year 15k mile lease on an M45. I also believe that there is a current incentive of 3k on the car right now, but have seen other posts mentioning $1000 (up to 3 per car)dealer certificates, do these still apply with the incentive?

Thank you for your help!!

CarMan@Edmunds · October 2003

That's great news, smason1978. Thanks for the information. I am surprised that they would add this car to the supplier purchase program so quickly. Of course, it's one thing to be allowed to buy one through the program and another to find a dealership that will sell you one through it. Still, this certainly is a good sign. For whatever reason, I have not seen any lease money factors from Mazda for this car. I believe that they are not providing any sort of lease support on it and that its money factors are pretty bad. I can tell you that Mazda's 3 year 15,000 miles per residual value for a 2004 RX-8 with a manual transmission is currently 56%. The residual value for an otherwise identical lease with only 12,000 miles per year should be 58%.

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CarMan@Edmunds · October 2003

Hello jzlemonz. I would be more than happy to help you out. If you were to lease a 2004 Lexus RX 330 FWD without the navigation or rear entertainment systems through Lexus Financial Services this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00200 (.00210 on the West Coast) and 55%, respectively.

As far as the Volvo V70 goes, if you were to lease a 2004 Volvo V70 2.5T FWD through Volvo Finance this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00164 and 55%, respectively.

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CarMan@Edmunds · October 2003

Hi buster6. Here is the information that you are looking for. If you were to lease a 2003 Infiniti M45 through Infiniti Financial Services this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be an attractive .00023 and 50%, respectively. At the beginning of October, Infiniti replaced the $1,000 Closing Certificates that it was providing on the 2003 M45 last month with $3,000 normal dealer cash.

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dovlandau · October 2003

Help! My lease ends 12/7/03. The residual is $12,140. The car is a Volkswagen Jetta VR6 with leather, sunroof, 6 disc changer, 16" alloys and
power everything. Someone is coming to inspect the car on 11/13/03. It has a few minor dings, but looks good otherwise. The interior is in good
condition. The car runs well. The records in the manual for maintenance are incomplete. What can they stick me with at the end of the lease? If I pay the residual, I fear something will go wrong before 2 years is up. What about extended warranty? This car has 100,000 mile power train warranty. It will have 48,000 miles by end of lease date. I paid for 80,000 mile because I was in sales at the time. I don't like any new car that is around $12,000, but I like new car warranties. I've had terrible luck with used cars.
Please advise.
Thanks, Dave

smason1978 · October 2003

Car_man,

Just FYI. I've called 4 of the dealer in St. Louis today and they are all honoring the S-Plan.

It's amazing!

I just hope the money factors are close to what leasecompare.com is quoting me...then I'll be very happy!

I'll let you know how it turns out.

CarMan@Edmunds · October 2003

Hi Dave. If you have enjoyed driving your leased car and feel as though its lease-end purchase price is less than or equal to what you would have to pay on the open market to buy a similar car right now then you may indeed want to consider buying your Jetta. In order to get an idea of whether your car's lease-end purchase price is reasonable, make sure to look up its Edmunds.com True Market Value by visiting the Edmunds.com Used Car Price Guide that is available on this site. You may also want to stop by the Real World Trade-In Values discussion that appears over on the Smart Shoppers Message Board and ask one of our most knowledgeable community members, Terry, what he thinks this car is currently worth.

If you do decide to buy your leased Jetta, remember that banks will occasionally negotiate vehicles' lease-end purchase prices. Place a call directly to the bank that you are leasing it through, probably Volkswagen Credit, and ask them if they are willing to work with you. If your initial contact there says no, you may have more success by working your way up the ladder a few people. Of course, there's no guarantee that they will be willing to work with you, but it definitely is worth a shot.

It is difficult for me to tell if you will be required to pay a penalty for excess wear and tear on your leased Jetta without seeing it, but your description of your car doesn't sound too bad. Lending institutions, especially captive finance companies that are affiliated with automakers, understand that vehicles are meant to be driven and will end up having a few minor blemishes after being driven for a couple of years. All banks have different policies on this matter, but if your car only has a few small dings and is in otherwise good condition, there is a chance that you will not owe any penalty at all for excess wear and tear.

So the bottom line is, if you like your car and its price is reasonable buy it. Otherwise just turn it in and walk away from it at the end of your lease.

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CarMan@Edmunds · October 2003

That's great news, smason1978. I am glad to see that you will be able to get this car through the plan. The supply of this car must have caught up with the demand very very quickly. Good luck and keep us in the loop.

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smason1978 · October 2003

I picked up my RX8 (Manual, Grand Touring, Spoiler, Appearance, 6CD, Tint (dealer added) Nav) today using the Mazda S-Plan. All the dealers in St. Louis are taking it..and I guess thats because there are maybe 50+ total sitting on all the lots.

Just so others can have an idea of what I got.

My lease went through Chase Bank, not Mazda. 36 and 39 months had the same residual (54%). I took the 39 months (trade off was I dropped to 14k miles a year, which is still 45k total miles). Money Rate was .00219, about the same as a BMW 3 series...of course the residual is lower.

On a side note he mentioned that the Mazda lease rate was about .00285.

My only concern was that www.leasecompare.com was showing me .00202 money rates...but my money rate is close to the BMW and the difference is $228 over the life of the lease- so not a big deal.

Anyway, an overall great experience at Bommarito St. Peters. Ask for Gary Panus.

Thanks car_man for the help! I hope this information an help another person get an RX8!

bestofdixie · October 2003

Looking to lease a new 2004 MDX Premium at 36 months 12,000 miles per year lease through American Honda Finance. I have obtained some of the numbers for the lease as seen below. Can you help me with the one I have questions marks on below? Also do you know of any lease deals better than AHFC? Figure this lease on the top tier as my credit is great.

ALso, what about sales tax in Alabama? Do I as the lessee have to pay sales tax on the full amount as well as a 2% use tax on top of that each month? If so should I pay the tax out of pocket of roll it into the lease?

MSRP - $36,945
Cap. Cost - $35,000
Money factor - 0.00205
Mileage penalty - 0.15/mile
Disposition Fee (fee to return car) - ???
Residual Value - $22,536.45 (61%)
Price to buy car at lease end - ???
Security Deposit - ???
Bank Acquisition Fee - $550
Gap Insurance - Is it included Included?
Total Due at Signing - ???
Monthly lease payment - ???

Thanks,
bestofdixie

knockoff · October 2003

What would all the fees be from Nissan on a Armada lease?
thanks

dwightex · October 2003

any ideas on what BMW is offering on these?

CarMan@Edmunds · October 2003

Congratulations on your new sporty ride, smason1978. Thanks for taking the time to come back and let us all know what your deal was like. I'm not surprised that your lease was run through Chase instead of Mazda's captive finance company. It seems like most RX8s are being leased through other banks right now. The factor that you got on it is very reasonable for an unsupported vehicle. It looks like you did a great job. Enjoy your new car!

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CarMan@Edmunds · October 2003

Hi bestofdixie. I am happy to say that the lease program that you were quoted for this model is exactly what American Honda Finance Corp. is providing on it at this time. So it appears as though the dealership that you got the quote from is being straightforward with you. Even though this lease program is unsupported, AHFC's unsupported leases are usually relatively attractive. I am not aware of any independent banks out there that have a better program on the '04 MDX at this time. According to my calculations, if you were to lease a 2004 Acura MDX using the numbers that you provided in your post, your three year zero down, pre-tax monthly lease payment should be right around $464 or so. This car's lease security deposit would be its monthly payment rounded up to the nearest $25 increment, or $475. The amount that you would have to pay at lease signing should equal your car's first month's payment ($464) + its security deposit ($475) + its lease acquisition fee ($550) + any down payment that you make ($0) for a total of $1,489. American Honda Finance Corp. leases automatically include gap insurance at no additional cost. Though I am not absolutely positive, I do not believe that AHFC charges a lease disposition fee. This car's lease-end purchase price would be equal to its residual value, unless AHFC is willing to lower this price for you. You will not know if they will do so until you place a call to them a few weeks before your scheduled termination date. Unfortunately, I am not familiar with Alabama's tax policy for automobiles. You may be able to find out more information on this subject by contacting your local Department of Motor Vehicles.

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CarMan@Edmunds · October 2003

Hi knockoff. Nissan Motor Acceptance Corp. charges consumers who lease vehicles through it a security deposit and an acquisition fee. I believe that its security deposit is usually your vehicle's monthly lease payment rounded up to the nearest $25 or $50 increment. It is waiving its security deposit on certain models at no charge this month. The 2004 Pathfinder Armada is one of these models. If you lease one through NMAC for up to 39 months you will not have to pay a security deposit. If you lease for longer than that you will have to pay one or have your vehicle's lease money factor increased by .00015 in exchange for its waiver. NMAC's current lease acquisition fee is $550 in all states excluding New York and Rhode Island, where is was increased a few months ago to $795. I think that these are the fees that you are looking for informaiton on, but please let me know if you have any other questions.

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CarMan@Edmunds · October 2003

Hi there dwightex. Not surprisingly, BMW is not currently providing any sort of support on the recently redesigned 5-Series. I would be more than happy to give you an idea of what its standard lease program is like for the models that you are interested in, but first I need you to tall me how long you plan on leasing it for and how many miles per year you need to be able to drive it without having to pay a lease-end penalty.

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knockoff · October 2003

Thanks Car_man.

lewh2 · October 2003

Hello Car_man. Please provide the residual and MF for a 2004 BMW 525 with automatic, 36 month lease, and for 12,000 and 15,000 miles per year. Also, how often does BMW usually change the residual and MF values (e.g., monthly--I plan to lease in early December)? Finally, is the residual calculated on the base price plus optional equipment, but not the delivery charge? Thanks for your help.

bestofdixie · October 2003

Thanks for all your help Car_man. You are right about the lease dispostion fee. There is none for AHFC. The dealership finally came through today with the rest of the lease particulars. I also found out about the use tax fee as well. It is 2% for my county.

bestofdixie

jginnyc · October 2003

Car_man, here's the deal I'm planning to do for a 2004 Volvo XC90 2.5T AWD. With my options, MSRP is $43000.

Net cost $42499
Residual: .55
Term: 48 months
money factor: .00319
Lease payment: $600 per month

Financed through a non-captive leasing co. Good deal? Not so good? Thanks for your assistance.

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