Lease Questions - Ask Here

CarMan@Edmunds · March 2004

Hi firstr. I would be more than happy to take a look at the deal that you have negotiated. It appears as though you are leasing your S60 R through a bank other than Volvo Finance. I am not surprised by this, given the fact that Volvo is providing $4,500 lease cash on it for leases though independent banks. According to my calculations, if you were to lease a 2004 Volvo S60 R with a full MSRP of $45,515 and a selling price of $37,745.19 for 54 months with 12,000 miles per year using a money factor of .00156. and a residual value of 42%, your zero down, pre-tax monthly payment should be around $434. Since the payment that you were quoted includes tax it looks to be about right to me. A 48 month lease of this car through Volvo Finance using the prices that I just mentioned would be around $30 per month more, so you are doing the right thing by leasing this model through an independent bank. My only problem with your deal is that this car only comes standard with a 4 year / 50,000 mile basic warranty. This means that you will not have any sort of warranty coverage on it for the final 6 months of your lease and will have to pay for any repairs out of your own pocket prior to turning it in or possibly face a lease-end penalty for excess wear and tear.

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CarMan@Edmunds · March 2004

Hello ekev. BMW had a really slow month in January, sales-wise. So in February, it made an unscheduled enhancement to its lease program. Its lease money factors on the 3-Series are much more aggressive now than when it initially published its program at the beginning of the year. This is definitely a good time to lease a 2004 3-Series. I believe that BMW Financial Services' current lease program is scheduled to run through March 31st. It is difficult to say what will happen to its lease program after that date. If I had to make an educated guess, I would say that BMW will continue to provide aggressive lease support on the 3-Series in June, but it might be a little more expensive to lease one then because its residual values will probably be a little lower. I personally do not believe that the drop in residual values will increase the 3-Series' payments enough to offset any sort of loss that you would incur by getting out of your current lease several month prior to your scheduled termination date, but again no one knows for certain what BMW's lease program will be like several months from now.

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CarMan@Edmunds · March 2004

Hello badulla. In order for me to give you an idea of what the current lease programs should be like for the models that you are interested in, I need you to be as descriptive as possible about them because their residual values often vary by trim level. Please let me know if you want 2WD or 4WD, navigation, etc... Once I have this additional info I should be able to help you out. Talk to you soon.

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CarMan@Edmunds · March 2004

Hey Tim. In February, Lexus was providing special lease money factors on a number of its trucks in certain parts of the country. I do not believe that Lexus has any special money factors on its trucks this month, at least not that I have seen. So if you were to lease a 2004 RX 330 through Lexus Financial Services this month, you would have to use its base standard lease money factor of .00200 for all terms. You need to use this new money factor in your payment calculations.

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CarMan@Edmunds · March 2004

Hello bmac. I have seen Acura's March lease program and would be more than happy to give you an idea of what its numbers should be like for this car right now. American Honda Finance Corp.'s current 36 month, 15,000 miles per year base lease money factor and residual value for a 2004 Acura TL without navigation should be .00215 and 56%, respectively. The numbers for an otherwise identical 39 month lease should be .00215 and 51%. The numbers for an otherwise identical 48 month lease should be .00195 and 50%. I know that its 42 month money factor would be .00195 but I am not positive about its 42 month residual value. For any leases with only 12,000 miles per year, AHFC's residual values should be 2% higher.

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CarMan@Edmunds · March 2004

You're welcome, stever12. I am glad that you enjoy this discussion so much. General Motors' lease rates and residual values for this pickup vary significantly, depending upon its trim level. In order for me to give you an idea of its current lease rate and residual value, I need you to be as descriptive as possible about the model that you want, i.e. it is a 2004 Chevrolet Colorado Crew Cab Z71 LS 2WD, it is a 2004 Chevrolet Colorado Extended Cab Z71 4WD. Once I have this additional information I should be able to help you out.

This truck is indeed eligible for GM's current sign and drive program. So if you were to lease one through GMAC this month, they would waive its first month's payment and security deposit. Furthermore, General Motors recently significantly increased its lease cash on this model. Unfortunately, it only did so for 48 month leases though. If you really want to lease a 2004 Colorado right now, that is definitely the "sweet spot" so to speak.

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CarMan@Edmunds · March 2004

Funny that you should mention the Acura TL, cjs2002. I was just sitting in one a couple of days ago and thinking to myself that it is a really nice car. I definitely would consider leasing one if I was in the market for a new vehicle. According to what I have heard, Acura has flooded the market with TLs and most dealers have an ample supply of them. As a result, dealers are heavily discounting them. If you live in an area where there is a lot of competition for your business, you should not have too much trouble getting one for a couple hundred dollars over invoice. The current full MSRP for a 2004 Acura TL with an automatic transmission and without the navigation system is 33,195. The invoice price for this car is $30,299. Let's say that you were able to lease one for $300 over invoice. According to my calculations a 2004 Acura TL with these prices, leased for 36 months with 15,000 miles per year would have a zero down, pre-tax monthly lease payment of right around $440. Its 36 month 12,000 miles per year payment would be $423.

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rnr · March 2004

Typically when you make a major purchase in Ohio. Such as windows for a home. A person has up to 3 working days to back out of a contract. Can this be done on a lease before delivery is taken?

subearu · March 2004

Just curious on what the going rates from Subaru are on the Forester XT. I am eligible for the IMBA VIP pricing, so that would be invoice minus any applicable incentives/rebates (which currently are $0). So, what would be the pricing on a Forester XT manual transmission, compared to the Forester XT Premium (automatic, leather, moonroof)? Just trying to determine if I should go the bank route or through Subaru.

I see on the LeaseCompare.com site that a 48month/48k miles quote is $389/month with a MF of 0.00205 and a residual of $10,325.

Thanks in advance!
-Brian

jumper4 · March 2004

Thanks Car man for patiently answering all my questions on a variety of vehicles. I don't know what car I will end up leasing this month but feel more comfortable that because of your help and reading all the helpful advice here on Edmunds I will be comfortable with my decision.

bmac · March 2004

Thanks Car_Man. I am actually looking at 42 month, 15k lease on a 6MT TL w/NAV. I have been quoted a MF of .00205 (no sec deposit) and a residual of 50%. Does this sound right?

hartt · March 2004

Thanks for your response Car_man, post #9686, but I was looking into the ES330 not the RX.
Could you please give me the numbers for March on the ES330 for a 36 month with 15K a year lease?
So far I have been offered a cap cost of $31744 with an MSRP of $34744. Can you figure a payment for me so I can compare it to what I get?
Thanks for your helpful information.

Tim

stever12 · March 2004

Car_man, I am looking at a Z85 LS Crew Cab. Can you provide me with the info for this model. Also, which model has the most favorable terms, and what might those be? I would consider a slightly different style of the truck if it has better terms. Thanks!

badulla · March 2004

CarMan....here is the additional info.

The Acura MDX would be the Touring edition
The Honda Pilot would be the EX-L
The VW Toureg would be V6 with standard options
The Lexus RX330 would be the 4WD with standard options

If you need more info let me know. Thank you very much!

CarMan@Edmunds · March 2004

Hi JB. You certainly have good taste in cars. I love the Audi S4. I doubt that your car is already at the dealership and being used for test drives. If it was, it would be pretty obvious when you go in to pick up your ordered vehicle and it has hundreds of miles on it already. Audi's Premiere Purchase program is what is known as a balloon note. I keep tabs on most manufacturers' lease programs, but unfortunately I do not follow balloon note programs very closely because they are much less popular than leases. I can tell you that it makes sense that Audi's Premiere Purchase Program interest rate is right around 4%. Audi Financial Services' base lease money factor for this car is currently .00170, which equates to slightly over 4%. Sorry that I can not shed any more light on Audi's current Premiere Purchase program.

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CarMan@Edmunds · March 2004

You're very welcome, tgp1810. The 2004 Chevrolet Malibu is indeed included in General Motors' Sign & Drive lease promotion. The lease rate and residual value that you just posted are right on the money. Using those numbers and the prices that you provided, I come up with a zero down, pre-tax monthly lease payment of right around $290. So, $307 per month including tax looks about right to me.

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CarMan@Edmunds · March 2004

Hello stein. Let's calculate a sample lease payment on the Chrysler Pacifica that you are interested in and see what we come up with. According to my calculations, if you were to lease a 2004 Chrysler Pacifica AWD with an MSRP of $34,090 and a selling price of $28,900 through Chrysler Financial this month for 39 months with 12,000 miles per year, your zero down, pre-tax monthly lease payment should be right around $347. At lease signing, you would have to pay this vehicle first month's payment of $347 + tax + a security deposit of around $350 + Chrysler Financial's lease acquisition fee of $550 for a total of right around $1,250. So as you can see, the payment that you were quoted is definitely in the right ballpark.

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CarMan@Edmunds · March 2004

Hi there qt1us. Let's take a look at the deal that you have been quoted. The first thing that I notice about your deal is that the lease money factor that you were quoted is much higher than BMW Financial Services' current base lease money factor for this model. BMW FS' current base lease money factor for a 3 year lease of a 2004 BMW 325Ci Convertible is .00125. It would be slightly higher, I believe around .00135, if you were to have your vehicle's lease security deposit waived. Still, it appears as though the dealership that you are working with is marking up BMW FS' base money factor to add additional back-end profit to your deal. Make sure to insist that they use the base money factor to calculate your payment. Another thing that I notice about your deal is that you are paying a lease acquisition fee of $725, while BMW FS' current base lease acquisition fee is only $525. Your dealer may be trying to mark up this aspect of your deal as well in an effort to make a little additional profit. I would be more than happy to calculate a sample lease payment using BMW's base lease program on the car that you are interested in for you. However, in order for me to do so, I need you to tell me its full MSRP.

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CarMan@Edmunds · March 2004

Hi lexlease. I am glad that you have found this discussion so informative. Let's take a look at this car's current lease program. According to the latest info that I have seen, if you were to lease a 2004 Lexus ES 330 without navigation through Lexus Financial Services this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00160 and 59%, respectively. You may be able to find out more information on how taxes should be calculated in your area by visiting one of the following Web sites: Texas Department of Transportation or Texas Taxes Web Site.

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CarMan@Edmunds · March 2004

Hi rnr. I am sorry to say that there is no three day period in which consumers can back out of automobile deals. However, if you have not yet physically taken delivery of your vehicle, you may still be able to get out of your deal. Go back to the dealership that you are working with immediately and explain your situation to them, they may be willing to work something out with you.

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CarMan@Edmunds · March 2004

Hey Brian. I am sorry to say that I have not seen Subaru's new lease program yet. My advice to you is to comparison shop with a couple of different dealers, either in person, via telephone, or via e-mail, getting lease quotes from each. You should be able to figure out what Subaru's current lease program is like and whether it is better to lease this model through its captive finance company or some independent bank fairly quickly by doing so. Sorry that I couldn't be more helpful.

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CarMan@Edmunds · March 2004

You're very welcome, jumper4. I am glad that I was able to help you out.

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CarMan@Edmunds · March 2004

No problem, bmac. Yes, the lease money factor that you were quoted looks right to me. You are receiving American Honda Finance Corp.'s current base lease money factor of .00195 for this car + .00010 for the security deposit waiver. The residual value looks fine too.

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CarMan@Edmunds · March 2004

Oops, sorry about that, Tim. I though that you were talking about the RX 330. OK, if you were to lease a 2004 Lexus ES 330 without navigation through Lexus Financial Services this month for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00160 and 57%, respectively. Using these numbers, an MSRP of $34,744, and a cap cost of $31,744, I come up with a zero down, pre-tax monthly lease payment of right around $415.

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bama60 · March 2004

Car_Man,

My new 330i will be in this month and am wondering if the lease rates changed from last month. I will be doing 36 months, 12K miles per year.

Thanks

shaker58 · March 2004

Hi carman,

looking into leasing for 3/36 price is 53320 plus taxes it has met paint,cold pack,prem pack and sport pack.
Can you please give me the numbers plus and estimate lease payment that I should be looking for.

Thanks for all your help. The service you provide saves me alot of $$$

jboucheb · March 2004

tstarks33 · March 2004

Hey carman, I have a general question for you. I am looking to lease a car, but I have never owned a car or leased one before, due to the fact that I live and work in downtown DC (no car need). I will be moving soon, so now I need to get a car.

How hard is it for someone with no past auto loan/lease history to get a lease? I'm 25, have been at my job for almost 2 years, and my credit score ranges from 700 to 720, depending on who you ask. Do I have a shot at a lease, or should I begin to look into getting a loan?

Thanks in advance!

moeronn · March 2004

Hi Carman - Back in post 9688 you posted example lease payments for the TL based on Zero down. When you say Zero down, do you mean that you are not paying any money at the time of 'purchase', or do you mean that you are not making any sort of cap cost reduction and paying any aquisition fees + TTL in cash? It seems that the latter is probably true, I just wanted to verify.

Thanks again for all of your help.

CarMan@Edmunds · March 2004

Thanks for the additional information, stever12. OK, if you were to lease a 2004 Chevrolet Colorado Z85 LS Crew Cab 4WD through General Motors Acceptance Corp. this month for 3 years with 12,000 miles per, its base lease rate and residual value should be 4.5% and 52%, respectively. The numbers for an otherwise identical 4 year lease of this model should be 4.5% and 46%. As I believe I mentioned in an earlier post, GM is also providing lease cash on the '04 Colorado that may be used to negotiate a more attractive capitalized cost. It currently has $1,250 lease cash for 3 year and $3,200 for 4 year leases of the 2004 Colorado Crew Cab. Even though GM is providing a little more lease cash on Regular Cab and Extended Cab Colorado models, it has the highest residual values on the Crew Cab. As a result, I would say that the Crew Cab has the best lease program available on it at this time.

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CarMan@Edmunds · March 2004

Thank you for the additional informaiton as well, badulla. Let's take a look at these vehicles' lease programs. First, if you were to lease a 2004 Acura MDX Touring without navigation for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00215 and 58%, respectively. If you were to lease a 2004 Honda Pilot EX-L 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 .00220 and 59%. If you were to lease a 2004 Volkswagen Touareg V6 through VW Credit this month for 3 years with 15,000 miles per, its base factor and residual should be .00185 and 50%. When negotiating your cap cost on the Touareg, make sure to keep in mind that Volkswagen is provising $500 lease cash on it. Last but not least, we have the 2004 Lexus RX 330 4WD without navigation or the rear entertainment system. If you were to lease this model through Lexus Financial Services this month for 3 years with 15,000 miles per, its base money factor and residual should be .00200 and 55%. All of the aforementioned numbers are for consumers who qualify for these banks' top credit tiers.

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CarMan@Edmunds · March 2004

Hey bama60. BMW's 36 month lease program for the 2004 330i is exactly the same in March as it was in February.

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CarMan@Edmunds · March 2004

I am glad that you find this discussion so helpful, shaker58. I would be more than happy to give you an idea of what BMW's lease program is like on this model right now. However, in order for me to calculate a sample lease payment for you on the vehicle that you are interested in, I need you to provide me with its full MSRP in addition to its selling price. As far as the lease program goes, if you were to lease a 2004 BMW 530i through BMW Financial Services this month for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00225 and 62%, respectively.

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ger3sf · March 2004

Just to confirm my understanding...the residual is based on the car's base MSRP incl. all factory-installed options. However, isn't it possible to have options that are more desirable than others and it would affect the overall residual %? Thx.

sharkala · March 2004

Hi Carman,
I am interested in the 2004RX330 AWD with the premium plus package, preferred accesory package, 18"wheels, MSRp, $41,838. I live in Phila, PA. What are the current lease terms and what should I expect to pay? thanks for your time.

cjs2002 · March 2004

for the TL,any idea what it would take to get the price around 410 after tax? thats my ideal price of what I'd like it to be...now my father and I need to see if we can hit that mark... lets hope

cjs2002 · March 2004

Also my uncle is co signing and its going on his credit, and he has perfect credit, and if I'm correct the better the credit the better the umm... how do I say... well I don't know buy I know it helps with making the payments less

nchockeyfan · March 2004

Car Man,
Can you give me the lease money factor and residual values for a 04 FX35?

Fairly loaded Infinity 2004 FX35 AWD with Touring, Sport, and Technology packages ($45.9K MSRP)

Lease terms of 42 or 48 with 15K a year

Thanks a bunch!

sjmurray3 · March 2004

Hi Carman, do you know what the BMWFS lease rates are for the sedan & Coupe for the month of March?

ogbuffguy · March 2004

Hi carman, could you tell me the lease rates for a toyota highlander base fwd v6 no 3rd row seat for 12k per year/36months lease in southern cali? thanks

CarMan@Edmunds · March 2004

No problem, jboucheb.

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CarMan@Edmunds · March 2004

Hi tstarks33. Of course, it is difficult for me to generalize about your situation without seeing your credit report, etc..., but I think that you stand a very good chance of being approved to lease a new vehicle. Captive finance companies probably won't care too much about the fact that you have never had an auto loan or lease if you have a good credit rating and solid employment.

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CarMan@Edmunds · March 2004

Moeronn, by zero down I mean no capitalized cost reduction. On any sample lease payments that I calculate for consumers with "zero down" they still usually have to pay their vehicle's first month's payment, a security deposit equal to that payment rounded up to the nearest $25 or $50 increment, and an acquisition fee at lease signing.

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CarMan@Edmunds · March 2004

You are absolutely correct, ger3sf. Vehicles' residual values are based upon a percentage of their full MSRPs PLUS the MSRPs of any options that the bank that it is being leased through allows to be residualized. Some options do have an impact upon vehicles' residual value percentages. For example, Audi models with quattro have different residuals than models that do not. Also, vehicles that are equipped with navigation systems usually have lower residual values than equivalent models without nav. This is why it is important to be as descriptive as possible when asking about residuals.

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CarMan@Edmunds · March 2004

Greetings, sharkala. I would be more than happy to give you an idea of what this model's current lease program is like. 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. I also would be happy to calculate a sample lease payment on the model that you are interested in for you. In order for me to do this, I also need you to tell me this model's selling price. You should be able to find out an approximate selling price by looking up its Edmunds.com True Market Value in the Edmunds.com New Vehicle Pricing section of this site and by paying a visit to the jstempel "Lexus RX 330: Prices Paid & Buying Experience" Jun 24, 2003 5:31pm discussion that appears here in the Town Hall.

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CarMan@Edmunds · March 2004

Cjs2002, I suggest that you take a look at the following discussion that appears here on the Finance, Warranty, and Insurance Message Board: Car_man "The Return of "How to Calculate Monthly Lease Payments"" Jun 28, 2001 6:15pm . It explains how to calculate lease payments on vehicles. If you take the money factor and residual value information that I provided you with earlier (I think that I gave you the factor and resid - if not let me know) and plug it into this formula you can see exactly what sort of selling price you would need to arrive at your ideal monthly lease payment. As far as your uncle's credit goes, the lease program that I quoted you assumes that you have good credit. Having your uncle co-sign your lease may increase your chances of being approved to lease through this program but it will not make the terms any more attractive that what I have already quoted you.

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CarMan@Edmunds · March 2004

Hello nchockeyfan. Let's take a look at the current lease program for the model that you are interested in. If you were to lease a 2004 Infiniti FX 45 through Infiniti Financial Services this month for 42 months with 15,000 miles per year, its base lease money factor and residual value should be .00184 and 49%. The numbers for an otherwise identical 48 month lease should be .00184 and 45%.

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CarMan@Edmunds · March 2004

I have seen BMW's March lease program, sjmurray3. However in order for me to give you an idea of what it is like for the models that you are considering, I need you to tell me how long you plan on leasing for and how many miles per year you need to be able to drive. Once I have this additional information I will be able to help you out. Talk to you soon.

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vsroman · March 2004

I think the FX request was for the FX35. Is there a difference in residuals between the 35 and 45?

sharkala · March 2004

Hi Carman-
What can i estimate to be my lease payments for a 2004 Lexus RX330, AWD, Premium plus package, preferred accesory package, 18" wheels, tow package, MSRP: $41,838. Can I get a figure for 36m and 39m with 15K a year. I only want to pay up front costs. Thanks.

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