Lease Questions - Ask Here

jginnyc · October 2003

BTW - its a 12k mi per year lease

noise69 · October 2003

Car_man,

I can't thank you enough for the heads up on the M45 deal. I am in Dallas, TX, and currently working with three different dealers trying to get the best deal. So far, here are the numbers I have been given on a 3 year/15,000 mile lease on a 2003 M45 with Technology, Comfort/Convenience, and Premium packages:

MSRP - $49,155
Price - $44,600
Residual - 50%
Money factor - .00098
Down payment - $2000
Monthly payment - $606

This is clearly not a very good deal. First of all, they are about $800 over invoice on the price, which doesn't take into consideration the $3000 incentives on this vehicle. Secondly, the money factor isn't anywhere close to the reported .00023.

Any pointers on how to seal this deal? I plan on calling them out on the $3000 incentive, but how do I get them in the ballpark of .00023? Is this only regional?

Thanks so much for your time, your support here is top notch!

djdez · October 2003

noise -- do NOT do that deal !!! They are not even CLOSE to my deal ! I went in there armed with everything that Car_man gave me and GOT THE DEAL I WANTED !!!

The only thing that is right in your deal is the Residual at 50% ... The correct money factors should either be .00023 (which equates to around 0.55% APR) or .00032 (which equates to around 0.77% APR and WAIVES the security deposit). These are what they SHOULD be .. I did my deal last month, so mine was SLIGHTLY higher but not by much ... and these are also good on the advertised 10,000 mi/year lease .. although I got the right MF and got 12,000 miles ... You are looking for 36 months/15k ... so your MF may be SLIGHTLY higher, but no WAY should it be what they quoted you. Also, I was able to get my rates at 39 months/12,000 miles ...

I also put NO Cap Cost down, you are putting $2000 down ... put ZERO Cap Cost, just your first month, and bank fee ($550) or roll it in to your payments ... my TOTAL due @ signing was $1000.00 EVEN. (they ate $140 or some odd dollars to make it even).

You should be able to get at LEAST $3000 BELOW invoice, as that money is now classified as 'customer cash' .. so, even if the dealer sells at that price, he's still making a decent profit. Not to mention, there's a $1000-1500 DEALER incentive on these as well -- so, add that to the profit over cost, and they are making a NICE profit ... see if you can get some of THAT $$$ too, but let them make a little profit !!

If everything is right, your payment should be in the high $400 range .. but no where NEAR $600 a month (I hope that # at least included tax)!!!

I have the same car except for the Tech Package .. my sticker was $46,355 .. and I got almost $10k off the sticker for my cap cost on the lease ... my lease payment is in the low $400/mo range !!! The dealer DID admit that NO ONE else has gotten a deal this good (before OR after me - I talk to them a lot), so I guess I really did STEAL this car - thanks .. AGAIN - Car_man !

Car_man, please correct me if I am wrong ...

CarMan@Edmunds · October 2003

You're very welcome, knockoff.

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CarMan@Edmunds · October 2003

Hello lewh2. Here is the information that you are looking for. As one might expect, BMW is not currently providing any sort of lease support on the recently redesigned 5-Series. If you were to lease a 2004 BMW 525i 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 62%, respectively. Its 12,000 miles per year residual value should be 2% higher than its 15,000 miles per year resid. This car's residual value should be based upon its full MSRP, including the MSRPs of any options that may be residualized and its destination charge.

BMW's current lease program is only scheduled to run through October 31st. It will probably publish a new lease program in the beginning of November that will be scheduled to run through the end of the year. Keep in mind though that manufacturers reserve the right to alter their lease and incentive programs prior to their scheduled termination dates.

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CarMan@Edmunds · October 2003

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

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CarMan@Edmunds · October 2003

Hi jginnyc. It appears as though this lease is not being run through Volvo Finance. I am not surprised because there are lots of banks out there that have better lease programs than it does on this model. Let's calculate a sample lease payment on the vehicle that you are interested in, based upon the informaiton that you provided in your post. If you were to lease a 2004 Volvo XC90 2.5T AWD with an MSRP of $43,000 and a selling price of $42,499 for 4 years using a money factor of .00319 and a residual value of .55, its zero down, pre-tax monthly lease payment should be right around $604. Given the fact that this is a pretty popular model that dealers aren't really discounting much right now and the fact that there is not any lease support on it, I would say that this is indeed a decent deal.

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noise69 · October 2003

djdez and Car_man,

Just spoke to another dealer that has the same car you purchased. Here are the numbers they gave me:

MSRP - $46,455
Invoice - $42,033
Price - $40,533
Residual - 50%
Money Factor - .00038 (They are stating that .00023 is only available to previous IFS customers. True or BS?)
3 Years/15,000 miles
Due at signing - $1500
$472/month

This is getting better, but still isn't where I think it should be.

CarMan@Edmunds · October 2003

You're welcome, noise69. Infiniti Financial Services' lease program is national, so it appears as though that the dealerships that you have been working with are just marking up its base money factor to add additional profit to your deal. I have a feeling that you will be able to find a dealer who is willing to calculate your payment using IFS' base money factor, given how much trouble a lot of dealers are having selling the M45 right now. I would insist upon taking full advantage of this car's current incentives and lease program if I was in the market for one. Granted there may not be that many Infiniti dealers in your area, but if you shop around and stick to your guns you should be able to get a better deal than this.

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CarMan@Edmunds · October 2003

Ahhh, I see that you snuck your last post in just before mine, noise69

. .00023 is IFS' base lease 3 year money factor for all customers, not just ones that have leased with IFS in the past. However you are required to pay a lease security deposit with this factor. IFS will waive its security deposit in exchange for a .00015 increase in its base factor, which would being it to .00038. It may automatically waive its security deposit for returning IFS customers. This may be where the confusion is coming from.

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noise69 · October 2003

Car_man,

Thanks again. I'll go back to them. Do you know what the standard security deposit for IFS is? What other charges should I factor in when determining what my payment SHOULD be?

I'm really wanting the car I described above with an MSRP of $49,155 ($44,600 invoice). Considering the $3000 incentives, is $41,500 a good place to start, or should I go lower?

Thanks again!!

djdez · October 2003

Sorry, I incorrectly stated that ONE money factor .. it should have been .00038 as Car_man stated ...

Also, when I got my car, the 'advertised deal' and a bunch of others running around here in the paper, all said 'Offers to Previous IFS customers only' as well, and the lease was stated as being 10,000 miles a year @ 39 months. Well, I was NOT a previous IFS customer, and I was still able to get the money factor (last month, mine was .00047 with the Security Deposit waived) and I did get 12,000 miles instead of 10,000 ... so whether or not you can get the MF is probably up to the dealer. Remember, you are getting 15,000 miles, so if you can get the .00038 MF, than GO FOR IT !

I wouldn't worry about the security deposit -- they should be using the MF that waives it anyway. That's why you SHOULD be able to use .00038 as your MF. I would bring up the $3000 incentive and go with a price of around $41,000 EVEN -- ask Car_man if they still have the $1000 DEALER incentive .. then you can go to $40,000 !!!

If you really want the tech package, and you know all the facts now .. if you can get them to a low $500/mo range payment with your $1500 due at signing and if they go for it, I'd say TAKE IT !

enterthematrix · October 2003

Car_man, I'm looking to lease a Toyota Matrix XR FWD Automatic for 3 years in the NYC area. Can you give me the money factor and residual value for both 12K and 15K a year?
thanks

garonoff · October 2003

Hi Car_Man. You provided some awesome information/advice when I leased my Pathfinder LE in '01 and my wife's RX300 last year, so I thought you might be able to help me again. Three questions:

1. My '01 Pathfinder lease is up next March, but because I'm already at my 15K mileage allowance I'd like to turn it in now and get a new model/new lease. What can you tell me about the dealer's and Nissan's cooperation in early termination, keeping in mind that I'll take a new car also.

2. What are the current deals on Pathfinder LX's? MF, Residuals, Cap Costs, No nav or entertainment packages.

3. If I'm not able to strike an acceptable early return/new lease deal, I do have an option to park the car until March and use my F-150 at work. If this turns out to be the case I'm going to take a good look at the Pilot. What are your thoughts about the Pilot vs the Pathfinder?

Thanks for your time and feedback...

smason1978 · October 2003

Hi,

I just leased a new RX8 and wanted to add some things to it. I was thinking about adding a couple items that are options (that didn't come with mine), and perhaps doing a little painting here and there (especially the calipers).

I've never leased before, so I don't know if I'm allowed to do this! Since these things would be seen as adding value to the car, is is acceptable? I'd really hate to remove these things in 3 years when I goto turn in the car.

Thanks!

rkw2 · October 2003

I signed a 4 year lease for my car in August, 2000 with GMAC Smart Lease. I
noticed today that the standard mileage allownace is 48,000 miles (12,000
miles per year). There are two places on the contract for excess mileage. In
both place the excess mileage charge is blank (there is a $ sign and space for a
number, but there is no number in both places ie., $___ ). Does this mean that I
will not have to pay an excess mileage charge if I exceed the 48,000 miles when my lease expires in August, 2004?

Thanks

jginnyc · October 2003

Thanks, Car_man. I think its a good deal too. And I appreciate your work here on this forum - Very helpful indeed.

Now to negotiate on that enormously egregious "lease acquisition fee".........

magoffi · October 2003

MSRP: 52,800
price: 51,200
residual: .55%
term : 42mths
down payment $5000.00
monthly payment: $531.00

i didn't complete the transaction yet i have until 11a.m. tomorrow morning to make the complete decision any last minute help advice. first time leasing. thanks

mobofe · October 2003

Hi Car_Man,

Hopefully, I'm not making you repeat yourself with regards to the lease info I'm looking for. can you please provide residual/moneyfactor and any info on a good lease $ on these cars.

thanks,
des

For both cars, assume either 36 or 39 month lease.

Audi A4 1.8 Quattro Auto w/
Premium Package
Coldweather
Lighting

(NH area)

Toyota Rav4 2.4 Manual AWD w/
L Package
Leather Seats
Premium Audio
Anti-Theft
Keyless Entry

(MA area)

skobola · October 2003

Do not put any money down except what is necessary (bank fee, tag& title, etc), which will bring it to about $1,500 anyway, depending of dealer's price lists for these (and markups!). Then put your money that you intended to put "down" into multiple security deposits, which will reduce your money factor at 0.0001 for every sec deposit. Note that each sec. deposit will equal to your estimated monthly payment rounded to the higher $50. I believe that you will come to the the monthly payment still in 5 hundreds, except you will get your money back when the lease ends. Although there were some rumors that the BMW FS will reduce the number of security deposits to 5, I have not heard anything about that being established. The old limit for sec. deposits was a total of 10, which would then reduce your MF from 0.0022 to 0.0012 (0.0022 is the current MF for the new 5 series). Good luck.

CarMan@Edmunds · October 2003

No problem, noise69. Infiniti Financial Services' lease security deposit should be your vehicle's monthly payment rounded up to the nearest $25 or $50 increment (I forget which one they use, but you get the idea). As far as what you should pay for this car goes, I would say that invoice minus the $3,000 incentive is a reasonable expectation for the current market.

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CarMan@Edmunds · October 2003

Hi enterthematrix. Here is the information that you are looking for. If you were to lease a 2004 Toyota Matrix 2WD through Toyota Financial Services in the New York area this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00137 and 56%, respectively. For leases with only 12,000 miles per year, increase this residual value by 2%.

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magoffi · October 2003

how do you go about giving the multiple down payment?

CarMan@Edmunds · October 2003

Welcome back, garonoff. I am sorry to say that Nissan is not running any sort of early lease termination program that I am aware of at this time. So if you want to get out of your current leased Pathfinder several months prior to its scheduled lease termination date, you are going to have to either purchase it from NMAC now and try to sell it on your own or try to trade it in at the dealer that you are working with to get your next vehicle. You need to place a call directly to NMAC in order to find out exactly how much money it is going to cost you to purchase your truck at this time. When speaking with them, keep in mind that some banks will negotiate the lease-end purchase prices of vehicles. If your initial contact at NMAC is unwilling or unable to work with you, you may be able to get better results by working your way up the ladder a few rungs. Having said this, this sort of negotiating is usually the exception rather than the rule and will probably become even less likely if you are far away from your truck's scheduled lease end.

Once you have the exact price that it is going to cost you to buy your Pathfinder at this time, compare it to what you can realistically expect to get for it by selling it on your own or by trading it in. It will probably cost you more to buy it than it is currently worth on the open market, so the difference between these two prices is what it is going to cost you to get out of your lease right now. If you trade your truck in, the dealership that you get your next vehicle from will likely be willing to pay for some or all of this difference, but having them do so will only hurt your bargaining power on your new vehicle.

I would be more than happy to give you an idea of what Nissan's current lease program is like on the 2003 Pathfinder. However, in order for me to do so, I need you to tell me how long you plan on leasing this truck for, how many miles per year you need to be able to drive it, and the exact trim level that you want including whether you are interested in 2WD or 4WD.

Both the Pilot and the Nissan Pathfinder are nice trucks. I know people who own both of them and like them very much. You will find that you will be able to negotiate a better price on the Pathfinder than you will on the Pilot. The Pathfinder also has a lot of lease support available on it, while the Pilot has none. You really need to drive them both to see if the Pilot is worth the premium that you will have to pay for it to you.

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CarMan@Edmunds · October 2003

Hi smason1978. Every bank has different rules as to what they will allow their lessees to do to their leased vehicles. You need to check with them or at least look at your lease contract to see what you are and are not allowed to do to your RX8. Having said this, dramatic modifications, like making alterations to the car's drivetrain and painting the vehicle are probably not allowed unless you can reverse them when you go to turn your car in down the road.

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CarMan@Edmunds · October 2003

Hello rkw2. If you leased your current General Motors vehicle with only 12,000 miles per year you definitely will have to pay a penalty if you drive more than this during your lease term. I don't know what GMAC's excess mileage charge is off of the top of my head, but I believe that it is around $.15 per mile.

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CarMan@Edmunds · October 2003

You're very welcome, jginnyc.

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CarMan@Edmunds · October 2003

Hi magoffi. $5,000 is way too much money to put down when leasing a vehicle. I always advise consumers not to make any sort of down payment when leasing for two main reasons. The first is that if your leased vehicle is totaled in an accident or stolen during your lease term, your insurance company pays off the bank that you are leasing it through and your down payment essentially disappears. The second reason is that down payments on leases do nothing to reduce vehicles' lease-end purchase prices. Regardless of whether you were to put $5,000 down or nothing at all down on this car, its lease-end purchase price will be exactly the same.

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CarMan@Edmunds · October 2003

Good morning, mobofe. I would be more than happy to help you out. Let's take a look at the Audi that you are interested in first. If you were to lease a 2004 Audi A4 1.8T Sedan with quattro through Audi Financial Services this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00145 and 56%, respectively. This car's 39 month lease money factor would be exactly the same, but its residual value would fall to 54%.

If you were to lease a 2004 Toyota RAV4 4WD 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 59%, respectively. The lease money factor for an otherwise identical 39 month lease would be the same, but the residual value would drop to 56%.

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stevel12 · October 2003

Could you please give me the residual value and money factor for:

Audi A4 1.8 Quattro Automatic
Options: Metallic paint, Premium Pkg, Cold weather, Rear Airbags
39 & 42 mo lease
12K & 15K miles per year

Mt Kisco NY 10549

Thanks!

automophile · October 2003

car man - I just returned from out of town. Thanks for the info on the inevitability of the acquisition fee. Also noted that it shouldn't be higher than $550 for Honda financing. I assume that this holds for Acura as well, if financed through American Honda.

Thanks again

garonoff · October 2003

Thanks for the reply Car_Man, and sorry for the incomplete lease data. Here you go:

'03 Pathfinder LE
4WD
Silver
Leather Package
Sunroof
Sunroof Windguard
Microfilter
Tow Hitch

36 or 39 Months (Please advise if you think there are problems with the 39 month option)
15K per year.
Zero Cap Cost reduction.

Looking for Money Factor, Cap Cost, Residual % and anything else you think I should know.
Thanks for your help!

shap1 · October 2003

Considering leasing either an '04 Touareg or '04 RX 330 and wonder which has the highest residual. Here are the basics:

Touareg V6 base (no options) - zero down, 10,000 miles/yr., 36 months.

RX 330 - FWD with premium package (not prem. plus) - same lease configuration as above.

I realize I'm not comparing apples to apples. I love the VW "leatherette", and with Lexus it's either cloth or leather. We don't do cloth with kids in the car, natch!

Thanks!

CarMan@Edmunds · October 2003

I would be happy to help you out, stevel12. If you were to lease a 2004 Audi A4 Sedan with quattro through Audi Financial Services this month for 39 months with 15,000 miles per year, its base lease money factor and residual value should be .00145 and 54%, respectively. If you were to lease this car with only 12,000 miles per year, its residual value would be 2% higher. Unfortunately, I have not seen its 42 month numbers so I can't help you out there, but I can tell you that its 42 month money factor should be very similar to the one that I just posted.

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CarMan@Edmunds · October 2003

Welcome back, automophile. You're welcome. I believe that AHFC's base lease acquisition fee for Acura leases is something like $575.

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CarMan@Edmunds · October 2003

No problem, garonoff. Here is the information that you are looking for. If you were to lease a 2003 Nissan Pathfinder LE 4WD through Nissan Motor Acceptance Corp. this month for 36 months with 15,000 miles per year, its base lease money factor and residual value should be .00036 and 47%, respectively.

Other than the fact that Nissan's bumper-to-bumper warranty coverage for this car is only 3 yr. / 36,000 mi. I personally don't see any problem with leasing one for 39 months. In fact, its 39 month lease program is more attractive than its 36 month program. You may want to consider leasing this truck for 39 months, provided that you don't mind driving it for 3 months without complete warranty coverage. If you were to lease the aforementioned truck through NMAC for 39 months with 15,000 miles per year, its base lease money factor and residual value should be .00017 and 46%.

When leasing a 2003 Pathfinder, keep in mind that Nissan is providing $1,500 lease cash on it that may be used in conjunction with its special lease money factors. Use this cash to negotiate a lower capitalized cost.

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CarMan@Edmunds · October 2003

Hey shap1. You certainly are interested in two very nice vehicles. They both would be high on my list if I was in the market for an SUV right now. Here is information on the lease programs for these two models to help you in your decision.

If you were to lease a 2004 Volkswagen Touareg V6 through VW Credit this month for 3 years with 10,000 miles per year, its base lease money factor and residual value should be .00160 and 57%, respectively. Volkswagen is also providing $500 dealer cash on '04 Touareg V6 models that may be used in conjunction with this lease program.

If you were to lease a 2004 Lexus RX 330 2WD without the navigation or rear entertainment systems through Lexus Financial Services this month for 3 years with 12,000 miles per (I haven't seen any information on LFS leases with only 10,000 miles per year), its base lease money factor and residual value should be .00200 - .00210 (depending upon where you live) and 58%, respectively.

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new_e60 · October 2003

Has anyone been able to find the money factor being used for the new 5-series. i am looking for 36 month, 545 money factor. thanks very much!

kfarzin · October 2003

I wanted to find out what are the residuals and money factors for '04 FX35 RWD? Are the money factors and residuals better than '03 ones. Thanks.

garonoff · October 2003

Thanks for the info Car_Man. Regarding that $1,500 Lease Cash, is that the adjustement reflected in the latest TMV? If so, should the Lease TMV be $500 more becase $2000 listed there refers to a different type of purchase? Thanks again...

CarMan@Edmunds · October 2003

Hi new_e60. Thanks for posting your message over here in the "Lease Questions..." discussion. Here is the information that you are looking for. If you were to lease a 2004 BMW 545i 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 62%, respectively.

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CarMan@Edmunds · October 2003

Hello kfarzin. Infiniti is not currently providing any sort of lease support on the 2004 FX45. Infiniti Financial Services' base lease money factor on this model is currently .00200 for all lease terms. Infiniti is however providing lease support on the '03 FX35. When you combine the fact that there is support on the 2003 model with the fact that you should be able to negotiate a lower price on one than on a 2004 model and the fact that the '03 and '04 models have very similar residual values, it makes the '03 model is the better deal right now.

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CarMan@Edmunds · October 2003

You're welcome, garonoff. In its explanation of how the True Market Value for new vehicles is calculated, Edmunds.com states "Manufacturer-to-consumer rebates - these are different from manufacturer-to-dealer incentives and don't affect the actual transaction price; the consumer usually has the choice either to apply these funds against the sales price as a down payment (lowering the amount to be financed) or to accept a check from the dealer for this amount." Since this lease cash technically is a consumer incentive, it has not been taken into account in the True Market Value for this model.

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rsc6789 · October 2003

Hey Car Man! I leased a 2003.5 INFINITI G35 Sedan 5AT about four months ago. I got the Bose Audio System, the Sun Roof, and the Trunk Mat, bringing the price to $33,350 ($33,900 with acquisition fee). I paid $1300 at lease signing, and only $325.73 of that went to capital cost reduction bringing the adjusted capitalized cost to $33,574. This lease was a 60-month lease (the salesman said that it would save me money in monthly payments and I could purchase or get a G coupe when I wanted which now I find hard to believe). My max miles are 12,000 per year. I pay $476.36 per month. I am now being told by several people that I got ripped off! My friend got a G coupe ($35,880) for 36-months and $475 a month. I only wanted a 36-month. Also, I turned in a 2002 BMW 325Ci for the G35s, but the trade-in equaled the market value supposedly, so there was no negative equity in the car therefore that shouldnt have penalized me. Sorry to go on and on but I really need some help from someone who knows what they're doing. Thanks so much!
--Ryan

stevel12 · October 2003

Thank you for your earlier assistance. I've come up with a total price (incl destination chg). Could you please tell me what other charges and fees I might be expected to pay on a lease?
What is an acquisition fee and is it part of a lease?
I live in Mt Kisco NY 10514.

explorerx4 · October 2003

Hi Car_man,
lease for our '01 saab 9-5 se wagon is up in about 6 months. our residual is 48% for buyout. that's way too high considering the current market. instead of walking away from the car, i want to try to negotiate to buy it, but at a lower price. i don't think this car would qualify as a 'certified gm' due to some repair and accident history.
what i am looking for is the current residual on a 9-5 arc level wagon for a 3 year, 12k per year lease.
any assistance would be greatly appreciated.

CarMan@Edmunds · October 2003

Hi Ryan. I am sorry to say it, but a 60 months is way too long to lease anything. I usually advise consumers to lease for 36 to 39 months. I say this because a lot can happen to change one's lifestyle over the course of five years. You could change jobs, move, or just end up driving way more than you anticipated and owe a huge penalty for excess mileage at the end of your lease that forces you to write a big check to the bank that you are leasing through or to purchase your vehicle at the end of your term. Not only could your driving habits change, but Infiniti's basic bumper-to-bumper warranty is only 4 yr. / 60,000 mi. This means that you will be driving this car for an entire year without bumper-to-bumper warrant coverage. If anything other than a drivetrain component breaks during that year, you will have to pay to fix it out of your own pocket or possibly face a lease-end penalty for excess wear and tear. Despite what the salesperson that you worked with told you, you can not just get out of your leased vehicle for free at any point in your lease. The following passage describes how one can get out of a lease prior to their scheduled end date, and these options are usually not very attractive:

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

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

According to Shebesta, you still have some options:

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

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

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

Unfortunately, not only is this lease too long, but even though it is difficult for me to know exactly what your car's payment should have been like several months ago it appears as though it is a little on the high side. I wish that I had better news for you, but unfortunately there isn't much that can be done at this point. Just make sure that you don't purchase or lease another vehicle though this dealership again.

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CarMan@Edmunds · October 2003

No problem, stevel12. When leasing vehicles, consumers usually have to pay their first month's payment, a security deposit equal to that payment rounded up to the nearest $25 or $50 increment, a lease acquisition fee, and any sort of down payment they choose to make (preferably none) at signing. The vast majority of banks that that lease vehicles to consumers require them to pay an acquisition fee or a bank fee. This is not negotiable and individual dealerships have no authority to waive it. Audi Financial Services' current lease acquisition fee is $575. If you are charges any more than this, your dealer may be attempting to mark up AFS' base fee in an effort to add additional profit to your deal.

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CarMan@Edmunds · October 2003

Hi explorerx4. Make sure to look up your car's current True Market Value by visiting the Used Vehicle Price guide that is available here at Edmunds.com. You may also want to stop by the "Real World Trade-In Values" discussion that appears over on the Town Hall's Smart Shoppers Message Board. One our most knowledgeable community members, Terry, hangs out there and is often kind enough to give consumers an idea of what he thinks their vehicle is currently worth.

I really don't see how it will help you in this situation because Saab artificially inflates its vehicles' residual values in order to provide consumers with attractive monthly payments, but since you asked Saab Financial Services' Corp.'s current 3 year, 12,000 miles per residual value for a 2004 9-5 Arc Wagon is 56%.

Good luck in your negotiations with the bank that you are leasing this car through and please let us know how everything turns out.

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explorerx4 · October 2003

did a quick calc based on the 56% residual versus our 48%. btw there was 3k support on our lease.
the diff between them, is guess what? about 3k.
the more things change....
i did ask terry his opinion. he is not a saab fan.

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