Lease Questions - Ask Here

CarMan@Edmunds · February 2004

Very cool choice in cars, ctorrey. Let's take a look at its current lease program. If you were to lease a 2004 Audi S4 Sedan through Audi Financial Services this month for 36 months with 12,000 miles per year, its base lease money factor and residual value should be .00170 and 52%, respectively. The numbers for an otherwise identical 39 month lease should be .00170 and 50% and the numbers for a 48 month lease should be .00180 and 44%. Unfortunately, I have not seen AFS' 42 month numbers so I can't help you out there, but from the other numbers that I just posted you should be able to get a pretty good idea about what that terms' numbers should be like.

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CarMan@Edmunds · February 2004

You're in luck, ricochet600. I believe that DaimlerChrysler just introduced new Presidents Day bonus cash on a number of its vehicles this weekend. I have not heard all of the details of this enhancement, yet, but I suspect that the Jeep Grand Cherokee is part of it. If you were to lease a 2004 Jeep Grand Cherokee Laredo 4WD through Chrysler Financial this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00137 and 43%, respectively. This truck's 12,000 miles per year residual would increase to 45%. In addition to this special money factor, DaimlerChrysler is providing $3,500 lease cash on this model that may be used to negotiate a lower capitalized cost. If it has indeed introduced bonus cash on the Grand Cherokee, you would be able to add it to the lease cash. Using the new lease program and the pricing information that you provided in your post, I too come up with a lease payment of just over $350 per month. I'm not sure how DCX arrived at the payment that your friend saw. I probably need some additional information about the deal before I can determine how they came up with the payment.

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CarMan@Edmunds · February 2004

Hello jumper4. Here is the information that you are looking for. If you were to lease a 2004 BMW 325xi through BMW Financial Services this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00125 and 62%, respectively. BMW's special lease money factors for this model only go up to 42 months, so it would be much more expensive for you to lease one for 4 years. If you were to lease this car for 42 months, its base factor and 12k residual should be .00125 and 55%.

In answer to your second question, yes, BMW Financial Services' base lease acquisition fee is currently $525 for all models.

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CarMan@Edmunds · February 2004

You're very welcome, rxke. I am glad that you have found my advice so helpful. I think that the bad Infiniti dealer that you read about earlier is more of an isolated incident than a statement about the quality of this brand's dealer network. Every automaker has a few bad dealers. Besides, as long as you have done some research and know the base lease program and exactly how much money you want to pay for the vehicle that you are interested in, it doesn't matter if they try to play games with you.

Let's take a look at the current programs for the vehicles that you are interested in. If you were to lease a 2004 Audi A4 1.8 quattro sedan through Audi Financial Services right now for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00110 and 52% in your area. The numbers for an otherwise identical lease of a 2004 Volvo S60 AWD through Volvo Finance should be .00025 and 52%. The numbers for an otherwise identical lease of a 2004 Infiniti G35 sedan with AWD leased through Infiniti Financial Services should be .00180 and 59%. The numbers for an otherwise identical lease of a 2004 Mercedes-Benz C240 sedan with 4-matic leased through MBCC should be .00265 and 57%. Lastly, the numbers for an otherwise identical lease of a 2004 BMW 325xi should be .00125 and 60%.

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CarMan@Edmunds · February 2004

Hey crashtestdingo. Some major banks have completely ceased leasing vehicles in New York. However, many captive finance companies still lease vehicles to residents of that state (though some have increased their acquisition fees there), so I suspect that some independent banks probably still lease vehicles to consumers there as well. BMW Financial Services does still lease vehicles to New York residents, just with a slightly higher acquisition fee. If your sister was to lease a 2004 BMW 325xi through BMW FS right now for 3 years with 10,000 miles per, its base lease money factor and residual value should be .00125 and 63%, respectively.

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CarMan@Edmunds · February 2004

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

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CarMan@Edmunds · February 2004

You're welcome, nupeskee. Unfortunately, I am not sure which independent banks have attractive lease programs on this car right now. Most dealerships have computer systems that allow them to search the country to see which banks have the best lease program on any vehicle at a specific time. If I was in your situation, I would comparison shop for lease quotes with several different Cadillac dealers to see what sort of deals are out there. Sorry that I could not be of any more help.

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CarMan@Edmunds · February 2004

No problem, glevitt. Volvo is indeed providing quite a bit of lease support on Volvo Finance leases of the 2004 S60 R right now. It may indeed be less expensive to lease this car through Volvo Finance than it would be to do so through a different bank using the $4,500 cash. Which way is least expensive will depend upon how attractive the independent bank's lease program is.

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c182skylane · February 2004

Car_man:

A few days ago, you stated that AHFC has leases for all Honda Accords: 36 months and 12k per year MF=0.00126 and Res=59%. Does that apply to the coupes as well as the sedans? If the Accord Coupe is different, can you restate the figures? Thanks.

siteexpert · February 2004

Carman,

I just want to verify. Is the 330cic (convertible) really .001 money factor? My dealer said there were no incentives on the convertible.

Also, re: the volvo s60r. I am trying to order and lock b/c my current lease does not end for 3 more months (basically ordering to delay delivery).

Thanks,
Scott

monkster2 · February 2004

Hi Carman,

Thanks for the tireless responses to so many of the same questions :-) Please post the February base lease rate and residual for a 2004 Acura TL/NAV (and non-NAV).

Thanks.

stevens10 · February 2004

Thank you Car_man. Do you know how 39 month and 42 month affect residual and money factor for same car (12K/year). I don't know the price yet, but heard that you can get it with small markup above invoice. Do you know what should be a good negotiated price for this car with U01 and P01?

tank43 · February 2004

Craman,

My dealer offered a lease on a new 04 Honda Civic 4dr
LX MSRP $16,650 selling price (invoice ) $15,621
residual 56% Lease factor .00260 .

I'm aware of the Manufacturer support of $400 through 3/1/04 .
Dose the lease factor sound correct to you?
Or is the dealer increasing it above what American Honda Finance 36 month lease program should be through 3/1/04 ?

footie · February 2004

I understand that Honda increased its acquisition fee to $595 on 2/3/04 for leases originated in Massachusetts. Does this match your understanding?

Also, I was looking at a deal on a new Honda, and the dealer rolled the Acquisition fee into the cap cost and then reduced it by the amount of the up front cash left over after fees.

Is that normal?

Thanks for your great service.

crashtestdingo · February 2004

My goodness, the money factor (.00125) and the residual value (63%) are much better now than when my sister placed the order for the car two months ago (.00215 and 61%, respectively)!

Can you tell me what BMW FS's lease acquisition fee in NY is?

Many thanks for your aid.

slboomer · February 2004

I have been corresponding with someone in another state who has a car he has been leasing for 1 year. He wants out. Is there a secure way that I can buy out the lease and not be dependent on him to send me the title?

taipan1 · February 2004

Please help me as I considering this deal, my trade is a 1998 Honda Accord EXL v6 51,000 miles ,fog lights,spoiler,wheel locks,front and rear splash guards,moon roof visor,exhaust tips all Honda parts. would be leasing a 2004 Honda Accord v6 exl non nav (brand new) no money up front strictly the trade, I owe $7,200 on the car. My terms would be 36 month lease 15,000 miles per year payments of $301 If I add my same options like my old one it would be $329 per month. Please give me your opinions I have never leased Thanks

yk40 · February 2004

Car_man;

Do you know when BMWFS' February MF and residuals become available to the dealers?

Here is why I am asking this questions. On Jan 31st I went to a local dealer and made my offer. After some negotiation we agreed on a number that I got using BMWFS's January MF and Res (0.0019 and 0.60 for 36 month/15K )and a sale price of invoice+$1000 ( I was hoping for invoice+$750 but did not work out). While I was thinking that I would sign the lease that day they asked me to pay $500 deposit and come back on Monday, Feb 02. Now I see that February MF is lower ( this will make about $40 difference per month), I am wondering if they knew (on Jan31st) the lower MF in February and wanted to close the deal in February. Nothing illegal but migth affect my answers to BMW phone survey..

CarMan@Edmunds · February 2004

Yes, c182skylane, Accord Coupes have the exact same lease money factors as Accord Sedans do right now. However, there seems to be less demand for and an ample supply of coupes at this time, so you may be able to negotiate a slightly better selling price on one.

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CarMan@Edmunds · February 2004

Yep, Scott, the .00100 money factor that I provided you with for the 2004 BMW 330Ci Convertible is definitely correct. BMW just made an unscheduled enhancement to this car's lease program in the beginning of February. In January, BMW had a .00190 factor on this car, which still is technically supported. I am surprised that the dealer that you are working with would try to mislead you about this model's level of support. Many BMW dealers are having a tough time selling convertibles right now, especially the Z4. This is why BMW cranked up support on convertibles this month.

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CarMan@Edmunds · February 2004

No problem, monkster2. In order for me to give you an idea of what this car's lease program is like right now, I need you to tell me how long you plan on leasing it for and how many miles per year you will need to be able to drive it. Once I have this additional info I will be able to help you out.

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CarMan@Edmunds · February 2004

You're welcome, stevens10. Yes, the money factors for the 2004 Infiniti FX35 AWD are basically the same for 39 and 42 month leases. I am not personally all that familiar with what the market is like for this model right now. You may be able to get an idea of what they are selling for by checking out the Infiniti FX45 / FX35: Prices Paid & Buying Experience discussion and by looking up the Edmunds.com True Market Value of the exact model that you want in this site's New Vehicle Pricing Section.

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CarMan@Edmunds · February 2004

Hey tank43. The last time that I saw it, American Honda Finance Corp.'s base standard lease money factor was around .00220 for 3 year terms, so the factor that you were quoted looks to be a little on the high side.

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CarMan@Edmunds · February 2004

I believe that American Honda Finance Corp. recently increased its lease acquisition fee for leases of both Acura and Honda models nationally from $550 to $595. It is very common for acquisition fees to be rolled into vehicles' capitalized costs. Manufacturers do this with many of their advertised leases. You can always pay the fee at signing if you decide that you would rather do so.

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CarMan@Edmunds · February 2004

Yep, crashtestdingo, BMW had a pretty bad month, sales-wise, in January and has increased its lease support on a number of models for February. In most areas, BMW FS' acquisition fee is $525, but I believe that it was increased to $800 for residents of New York.

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CarMan@Edmunds · February 2004

Hi taipan1. I do not know how much equity you have in the car that you are trading in, but I always advise consumers not to put any money down when leasing. I say this for two main reasons. The first is that if the vehicle that you are leasing is stolen and never recovered or totaled in an accident, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leases do nothing to reduce vehicles' lease-end purchase prices. So whether you were to put $5,000 down on the car or truck that you want to lease or nothing down at all, its lease-end purchase price would be exactly the same.

I would be more than happy to calculate a sample lease payment for you on the car that you are considering leasing, however in order for me to do so I need a little additional information from you first, namely the car's full MSRP and selling price. Once you provide me with this additional info I will be able to help you out.

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CarMan@Edmunds · February 2004

I am sorry to hear that BMW enhanced its lease program after you finalized your deal, yk40. BMW announced the unscheduled enhancement to its lease program on February 5th. Of course the level of knowledge about future programs probably varies from dealer to dealer, but I can honestly tell you that the BMW dealers who I spoke with prior to and just after the enhancements were announced seemed to have absolutely no idea that it would be made.

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stevens10 · February 2004

Thank you Car_Man for your help. I have another question. Yesterday I visited an Infiniti dealership and was quoted the following: 39m/12k + taxes upfront (I am not going to give taxes upfront, but it is what they used when calculated)
41k price, 56%, 0.00215. Payment is $585.41.
My calculator shows $575 with this numbers. But question where they got their 56% and 0.00215?
Could they be just trying to rip me off without any grounds? Or they used a different (not a good one) bank? Beside that they told me that I already cannot lease a 2003 leftover model (if I find one). Can you help?

crashtestdingo · February 2004

Thanks, Car_man, and FYI: the acquisition fee in NY is indeed $800. I found this, after I posted, in the fine print of a BMW ad in the Automobiles section of the Sunday New York Times. That ad had a URL for the 325xi sedan lease offer it was advertising: http://www.bmwusa.com/325xioffer Note that while it doesn't list an acquisition fee for leases for cars registered outside NY, the down payment required for these leases is $525 higher than the down payment required for leases for cars registered in NY. Sneaky, huh?

c182skylane · February 2004

Thanks Car_Man. I'm interested in the Accord EX-V6 coupe with 6-speed manual transmission. So, are these still true given the stick shift? 36 month lease with 12k per year RV=59% and MF=0.00126?

ALSO, what is the RV and MF for a 48 month lease?

Many thanks...

s852 · February 2004

http://moneycentral.msn.com/content/Savinganddebt/Saveonacar/P718- - 81.asp

Some of the stuff makes sense, but I think a Chevy tracker retains more than 17% of it's value after 3 years. I don't see any 2001's with 36K miles selling for $2900 as they indicate.
A $50K Mercedes CLK for $494 per month sounds good though.
I think their numbers are messed up since they list a different residual for the Tracker in their chart than in the text. They quote payments that don't include interest and they quote payments that don't include massive rebates available.

chriso59 · February 2004

Dear Car Man, I currently own a 2001 Honda S2000 and my lease will be going up shortly. I have fallen in love with this car though, and would like to lease another. MSRP is around $33,500 capital cost would be around $32,000. I am looking at leasing for 3 years with 12,000 miles per year. If you could kindly provide the residul and MF on this car it would be greatly apprecited.

Thanks
Chris

siteexpert · February 2004

Carman,

Were there any changes in Mercedes CLK 320/ 500 convertible rates (12k/ 36 months)? Last month I believe it was .00275 factor w/ a 66/65% residual.

Thanks.

patsy7 · February 2004

Hi Carman. I need to terminate the lease on my Pathfinder. I'm taking a job in sales and am already way over my mileage, my commute will put me that much further over. Here's my question...I all but signed a deal on a 2004 Nissan Altima to PURCHASE. The dealer is charging me for the miles that I am over on my lease ($1320), AND both an early termination fee ($300) and the balance of my lease ($1700). I've heard of people being able to negotiate out of these items if they are leasing the same manufacturer vehicle....shouldn't this hold true if I am also purchasing another Nissan? I think I"m getting "taken" on this deal. Please advise.

roy_walker · February 2004

When you lease a car and the manufacturer's warranty is 3yr/36,000mi and you lease is 3yr/45,000mi how is the difference in mileage usually handled?

Thanx,
Roy

mellis · February 2004

Once you hit 36,001 miles all the repairs are yours - there is no more warranty.

Lease or finance makes no difference.

Mark

dardson1 · February 2004

I'm holding a contract in my hand over-nighted to me from a leasing company (they do nothing but lease high priced vehicles). New Lexus RX330, MSRP $39225, with a residual of $21,187. I pay the TT&L plus my first payment minus $540 which is their offer to pay the last payment on my old Lexus lease. . . . net money down is $2378. Monthly lease payment is $489.
Although the contract (as read by a novice like me) doesn't show it, the leasing agent says I'm getting the car for $35294 with a lease factor of .00155. Does all this add up, and is it a great, good, or so-so offer? Best I could do at my local dealer is %540 a month on a 36mo. 36k mile lease. Any thoughs?

ryoken · February 2004

"Lease or finance makes no difference."

There is one slight difference... you have to get it fixed before turning in a lease vehicle. If you've financed it, or you buyout the lease, you can always choose to just leave it broken.

monkster2 · February 2004

Whoops - my mistake.
Acura TL/Auto/Navi
36 months, 15k miles
Residual=?
Base lease rate=?

Thanks.

jumper4 · February 2004

Dear Carman,

Thank you for posting the Feb. lease rates for the BMW 325xi. I just wanted to make sure that they included the sports wagon. I ask this because the BMW website shows a special lease offering for the sedan but not the wagon. Thank you for your help.

CarMan@Edmunds · February 2004

Stevens10, that does not look like Infiniti Financial Services' lease program to me. The residual value that they quoted you is much higher than the one that IFS uses, which is a good thing, but the money factor is higher too. If you tell me the exact full MSRP and selling price of this vehicle and whether it is a 2WD or an AWD I would be more than happy to calculate a sample lease payment on it for you using IFS' lease program. Doing so will give you a good idea of what it should cost to lease this model at this time.

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CarMan@Edmunds · February 2004

You are very welcome, crashtestdingo.

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CarMan@Edmunds · February 2004

No problem, c182skylane. The money factor and residual value that you posted are right on the money. You definitely do not want to lease this car for 4 years. Honda's special lease money factor on it is only available for leases of up to 36 months in length. If you were to lease this car for 4 years, its base factor would increase to over .00200.

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stevens10 · February 2004

Hello Carman, The car is FX35 AWD with Touring and Technology packages. According to Edmunds the MSRP=43640 and invoice=39246. The selling price the salesman quoted was 41K, but I think I will push him at least $500 lower. As you probably remember I'm looking at 12K miles per year and 36 or 39 or 42 month lease. Thanks again. Also, do you know if it is true that you cannot lease a 2003 leftovers?

itaback · February 2004

Dear Carman:

I would very much appreciate it if you could give me the February 2004 info on the following lease situation:

A4 1.8T quattro tiptronic
36 month lease
10,000 miles per year
options are cold weather, premium, lighting, ultra sport

Many thanks to you Carman!!

scottl2 · February 2004

Car-man,
I am in my second month on an Infiniti G35 lease through IFS. About 1 week after I entered lease IFS apparently started a 2.9% financing program. Any thoughts on how I could switch my lease over to financing with same institution?

taipan1 · February 2004

Could you please give me a monthly payment for a 2004 Honda Accord V6 EXL non nav assuming
36 months
0 down
15,000 miles
paying invoice
Thanks

cp4h · February 2004

I have a question for the knowledgable folks on this forum.

When one lease a new car, is he responsible or obligated to take the car in for regular maintanence recommended by the manufacturer ? Will there be any panelty if the person skip an oil change or coolant flush or whatever ?

I ask this because I am thinking of either leasing a new vehicle or buying a lease return vehicle. I need to calculte how much budget to put aside for maintance if I lease, and in case I am buying a lease return car I want to estimate the risk of getting a car that has never been maintained.

One more off topic question: what is the best way to find out whether a three or four year old lease return has been maintained or not ?

kyfdx · February 2004

The requirements are the same for a leased or purchased car. You are RESPONSIBLE and OBLIGATED to do the scheduled maintenance on a leased car. You really need to follow the manufacturer's recommendations if leasing a car, because you don't own it, and you may open yourself up to further charges, if problems are discovered at end of lease.

You have the same risk on a lease return car as you do any other used car. On some makes (BMW comes to mind), any dealer can pull up any maintenance work done at any dealer in the country. On others (Honda for example), except for recall work, only the servicing dealer will have the records.

regards,
kyfdx

cp4h · February 2004

Thanks for your response.

"You really need to follow the manufacturer's recommendations if leasing a car,... you may open yourself up to further charges, if problems are discovered at end of lease."

Okay, what if there is no obvious problem at the end of the lease ? I know someone who did not change the oil on her camry for the first two years after she bought it ! And still the car seems running fine now after she first change the oil. But for sure the longevity of the car will be affected by her stupidity. But if she sells her car tomorrow, the buyer might not be able to find out about this.

So let me re-phrase my question: when you return a lease car, does the dealer usually check whether you maintain the car or not ? Will they ask for oil change receipt, look up the computer or do something else similar ? And if not will the dealer charge a panelty even if the car has no obvious problem ?

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