Lease Questions - Ask Here

CarMan@Edmunds · May 2001

Joe, I still haven't seen Acura's May lease program yet. I would not be surprised if they did reduce the lease money factors on the 2001 3.5 RL though. Many manufacturers have enhanced their lease programs in response to the Fed's lowering of interest rates and the slight downturn in new vehicle sales. Please feel free to check back with me next week and I should have a good idea of what they latest program is like. Thanks.

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CarMan@Edmunds · May 2001

You're welcome, svman. Dealerships really do not have any authority to alter a bank's residual values. They are usually set in stone. I have heard stories about consumers who were able to negotiate lower residual values on vehicles that they planned to purchase at lease end years ago, but a lower residual value would just make your monthly lease payments higher than they would normally have been. Really the only way that one can affect a vehicle's residual values is to alter the number of miles per year that they are allowed to drive without penalty.

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svman · May 2001

Car_Man, I've got another question. What are the current 2 yr and 3 yr. residuals and lease rates for a 2001 (not 2002) Mountaineer at 12K miles/yr? Thanks for all your help.

carguy47 · May 2001

about swapalease...do you have to pay any initiation fees, or do you just assume the monthly payments? how does this work?

tgif888 · May 2001

Car_man Do you think this is good?

Go to this link- http://www.eacura.com/default.asp?type=3&bV=0

$499.00 per month/39 months/$1,000.00 down payment. $1,999.00 total due at lease signing (includes security deposit, excludes tax and license).

This is the fine print:

Offer valid through 7/2/2001, only on approved credit by Honda Finance through participating dealers. Honda Finance's standard credit criteria apply. See your Honda dealer for details. Closed-end lease for 2002 RL Special AHFC Lease(Model# KA9652JTW). MSRP $43,630.00 (includes destination). Actual net capital cost $39,265.22. DEALER PARTICIPATION MAY AFFECT ACTUAL PAYMENT. Taxes, license, title, registration, documentation fees, options and insurance extra. Total monthly payments $19,461.00. Option to purchase at lease end $22,251.30. Lessee responsible for maintenance, excessive wear/tear and 15¢/mile over 12,000 miles/year. SEE DEALER FOR DETAILS.

splitdecision · May 2001

Car Man,

I'm new to this site and just happened to see the post on Envoy lease residuals and APR.
I was just at the Olds dealer today and got a quote on a lease for a 2002 Bravada. I was wondering if these numbers are right since they are markedly lower than the Envoy #'s.

36 mo lease (GMS price)
lease factor: 6.9%
residual: 48%!

I appreciate any input you could provide. Is the lower residual and higher lease factor due to the Bravada being discontinued(?) soon?
Thanks

jackdia · May 2001

Car Man, thanks for your help in advance.
Could you please give me the residual and money factor for the QX 4, for a 36 mo lease at 15,000 miles a year?

jwilson1 · May 2001

Car-Man I have a question to tag onto the one above inquiring your opinion of the new package offered for the '02 RL. Since SRP is $43k+ but the Cap cost is $39+, is there still luxury tax on the vehicle? I.e., I'm guessing the tax is on the contract cost rather than on the list. Am I right?

Take care.
Joe W.

svman · May 2001

Car_Man, what are the current lease rates and residuals for a 2001 regular size Yukon for 2 and 3 years at 12k miles/yr?

dandywarhol · May 2001

I know this maybe a little off topic but I heard somewhere that if you work for yourself, like I do, you can take the entire amount of the lease as a business expense as long as you use the car for business. Is this true? Is there a cap on how much the car can be worth, etc?

CarMan@Edmunds · May 2001

Svman, you may find a little regional variation in Ford Motor Credit's lease rates, but in most areas I believe that the 2 and 3 year lease rates for the 2001 Mercury Mountaineer are 3.0% and 4.75% respectively. The 12,000 miles per year residual values for the 4WD version of this truck are currently 52% for 2 year and 44% for 3 year lease terms.

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CarMan@Edmunds · May 2001

Hi tgif888. Yes, I think that a 3 year lease (12,000 miles per) for $499 per month with only $1,000 down is a pretty decent lease price point for a $43,000+ car. Still, you may find with a manufacturer advertised lease such as this one that there is still a little room left to negotiate in the capitalized cost that was used to calculate the monthly payment. I think that you should use this ad as a ceiling and see if you can beat it. If not, it's still a pretty good deal.

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CarMan@Edmunds · May 2001

Hello splitdecision. If your credit is in good shape, you should qualify for GMAC's 36 month lease rate of 5.9% on the 2002 Bravada. Unfortunately, the low residual value of 48% is right on the money for a 3 year 15,000 miles per lease on this truck. It looks to me as though the dealership that you are shopping at is trying to mark up the interest rate on this truck a percent to bake additional profit into your deal.

Oldsmobile is advertising a lease on the 2002 Bravada right now. I think that the following lease price point will serve as a good reference point for you. Since leases that are advertised by manufacturers usually leave a decent amount of dealer profit in them, use the following price point as a ceiling for your negotiations and see if you can do better than it.

2002 Oldsmobile Bravada: $573/month for 36 months (12,000 miles per year) with $0 down and a $600 security deposit.

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CarMan@Edmunds · May 2001

Hi again jackdia. I haven't seen Infiniti's May lease program yet. Please feel free to check back with me later on this week. I should be able to provide you with a little more information on their program then.

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CarMan@Edmunds · May 2001

Joe, I believe that you were correct in your post when you guessed that the Luxury Tax cap is based on the actual selling price of the vehicle that you are getting and not its MSRP, unless of course that is what you are paying for it.

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CarMan@Edmunds · May 2001

Svman, GMAC's current lease rates for the 2001 Yukon for 2 and 3 years are both 7.75%. The 12,000 miles per year residual values for this truck are 62% and 57% respectively.

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gperr · May 2001

Car_man,

Could you please help me out (for a friend) with the current May Residuals and Money factors for the following:

15K miles
24 months up tp 39 months

1) 2002 Infiniti G-20 Automatic
2) 2001 VW Jetta GLS (sedan)1.8T Automatic
3) 2001.5 VW Passat (Facelifted one- also called New Passat) GLS (sedan)1.8T automatic

Thanks

Gregg

nighter50 · May 2001

Are you familiar with USAA? They offer auto leasing through Weststar and Bank of America. The Weststar money factor is .00299 which is much better than standard Toyota (quoted .00375). Thinking of leasing a Sequoia 4X4...MSRP 40472 - negotiated price and Cap Cost 37000 (paying down acquisition fee) - 55% residual on 36 months (same as Toyota according to fleet manager) and 54% on 39 months. No security deposit. So it will be about $1900 drive off with a payment of around 633 for 36 months or 609 for 39 months. This is for 15k per year. Does this lease make sense. Are you familiar with Weststar and if so what you are impressions and feelings on this company? Thanks in advance

nighter50 · May 2001

BTW - The above lease payment includes tax of 8%

rroyce10 · May 2001

..........This my friend, is one of the great benifits of leasing.....

If you are in ouside sales..or..your own business, etc...you can write off ..just about your entire monthly payment......

As a rule -- 75% of the payment will fly very easily....but, the IRS does have a tendancy to look a little closer when you are writing off 100% of that monthly lease payment.....they figure that, you had to stop off at a convenient store for milk....or the Mrs. drove the kids to school one day ... or Aunt Helen borrowed the vehicle one time, to go to a Bingo match.......

But, if you can reasonlby show that the vehicle was used for business 80%/90% ....that is to your great advantage ---- see, that's one of the nice benefits of leasing --- If you purchase a $40,000 vehicle..the most you can depreciate is $12,500 --- But..with a lease, you can use, just about the whole thing ..-----

Again...I'm not a tax accountant..or a Cpa..but, I sure use enough of them 365 ..24/7 ..so get with a pro...and I'm sure you will like the benefits.....

Terry.

purduealum91 · May 2001

and 15 or 12 k/year with no money down. do you have a list? thanks

tom

CarMan@Edmunds · May 2001

Gregg, as I mentioned in a previous post, I haven't seen Infiniti's May incentives yet. Please feel free to check back with me later on this week for that information. I have however, gotten to take a look at VW's current lease program. Thirty-six months is the best term to lease a Volkswagen through VW Credit right now. That is the term that they are featuring the lowest money factors on. If you were to lease a 2001 VW Jetta GLS Sedan 1.8T for 36 months and with 15,000 miles per year through Volkswagen Credit the lease money factor and residual value would be .00230 and 55% respectively. If you were to lease a 2001.5 VW Passat GLS Sedan 1.8T through VW Credit for the same term and mileage they would be .00235 and 58% respectively.

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CarMan@Edmunds · May 2001

Nighter50, I am very familiar with USAA and I can not say enough good things about them. I have a USAA credit card, auto insurance, and homeowners insurance. They are very professional and have the lowest insurance rates that I have seen. I don't know what their exact policy on taking new members is today, but in the past in order to take out a loan through them one had to have been in the army or be the sibling of an enlisted person. This may have changed today. The lease terms that they are offering you certainly do look attractive when compared to Toyota's program. A standard lease money factor of .00299 is hard to beat. I am not all that familiar with Weststar, but if they are just directing you through USAA I don't think that you have anything to worry about.

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danog · May 2001

I asked about this when my lease ends and was told when I turn the lease in, ask the dealer for the paperwork to take to the License office and they will apply the credit on the next vehicle. I am not sure exactly how this works and if it is available in all states but you should be able to contact your License office for details. Hope this helps you.

Dano

nighter50 · May 2001

I am already a member of USAA and have credit card, auto and homeowners insurance through them too (my dad was in Navy). I have had only good experiences with them. USSA directs the leases through Weststar so I think it should be a good company. Thanks again for your quick response and help.

Rob

smistretta1 · May 2001

How does this look?

MSRP 21480
Price - 18800
Residual - .55
MOney Factor - .00365
MO.- 39
downpayment - 2117.91
12000 miles -
ACq fee - 595
Cents per mile - .10
Cents per mile end - .15
TOT in pmt - 2895
Disposit fee - 300
Lic fee - 57.50
3% tax

253.65 payment

With 15,000 miles

258.66 payment

thank you for your help.

Also considering buying the car for 18,800

fladriver · May 2001

Here's my take...

The purchase price is about $600 below invoice, so either it's a very good price or there is a manufacturer incentive on this car. I would find out exactly how much incentive there is, if any.

The interest rate is on the high side; there definitely is no incentive on this.

The residual is high enough to make leasing attractive. There's no telling what the redesigned 2002 Integra is going to do to resale values of the 2001 model, if you decide to sell it.

All in all it seems like an o.k. deal esp. to lease, but this is assuming there is at most $1000 in incentives. If there is any more than that, I'd keep negotiating. Hope this helps.

smistretta1 · May 2001

They have a 2% dealer holdback. I do not plan on selling it anytime soon. I am going to try to keep at least 5 or 6 years. Of course if I lease that is another story.

thank you for the help

CarMan@Edmunds · May 2001

I agree with fladriver. The price that you are paying for the Integra looks very good, but the lease money factor is definitely too high. There are two main reasons that I could think of why this happened. One could be that your credit is not in very good shape and this is the best rate that you could qualify for. The other is that the dealership is marking up American Honda Finance Corp.'s standard lease money factor to bake additional profit into your deal. If they made a decent amount of money on you by marking up the interest rate that you are paying, theoretically they could allow you to have the car for an unusually low price and still make money on the deal. I think that AHFC's base standard lease money factor is in the area of .00280 right now. I specifically remember this because when I say it I was impressed with what a good deal it was.

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smistretta1 · May 2001

He did'nt ask about my credit yet so I can assume if I have good credit then maybe he will take down the rate.

But I think that at this price I am going to buy it outright. The only hesitation is that the resale may change considering the new "integra". But who knows.....The only way you can get a 4-door Integra now is to buy a used one....So maybe the resale value won't decrease as much as one might think.....

thank you again for the help

webracing · May 2001

Hi,

After much discussion, my wife is ready to leasing her first Mercedes E320 sedan. Knowing the new bodystyle is coming out next year, as well as the current state of economy, what type of deal can she expect? I have heard many stories about dealers offering E-class below invoice in order to get people interested.

Here are the terms she is looking for.

1. $5,000 down.
2. 15,000 miles / year.
3. 48 month lease.
4. Little or no options (Maybe just the COMAND system).

Since this is our first Mercedes, I will appreciate if you can offer us suggestions/recommendations.

Thanks in advance!

Jeff

mmcbride1 · May 2001

Don't put anything down on a lease. If something happens to the car and it gets totaled, that money is gone forever. Just make sure the lease has GAP insurance and you're covered.

tank43 · May 2001

Can you provide Residual/Money Factor thru Ford Motor Credit for a 36 month 12,000 miles per
month lease. 2001 Ranger Super Cab XLT 4WD Styleside Short bed, 4.0L V6, Automatic,XLT package. In Columbus Ohio dealers are offering $5500.00 off MSRP .

Thanks Tom

tank43 · May 2001

What is Ford Motor Credit's standard Bank Fee on a 36 mo Red Carpet Lease?

Should I have to pay taxes on the $5500.00 dealer discounts/rebates ?

Follow up from Post # 984 Tom

expedition2 · May 2001

Two things I have heard about westar, almost used them but were told they were "new". The manager told me they were bought by Mellon Bank and that you better have flawless credit to use them.

Car Man,
62 & 57% residuals on Yukon? I think you meant 52 & 47%, Correct? I wish it was in the 60's!!

jwilson1 · May 2001

Car-Man, I've been thinking about the advice you gave me and tgif a few posts ago regarding the new online lease promotion for the RL. I'm curious on how to follow up and hope you can explain. I mean:

you mentioned at the end of your reaction that while the deal was pretty good, you felt ther may be "more room" in it and we should negotiate. The question: is there any way we can find out what the new base (i.e., invoice) would be for that negotiation? Or, were you referring to something else altogether?

Thanks as always.

Take care.
Joe W.

si88 · May 2001

Carman,

Please tell me if my dealer is being honest with me. I always thought that lease payments were less per mo than purchasing. He claims that the 60 mo, 1.9% financing GMAC has currently would be less expensive than a lease for 36 mo. Here are the #'s on the car that costs $26,150:

Leasing:

1)$2000 down
2)36mo lease at $483 per mo (including TT&L 8.75%)
3)45% residual = $13514
I don't know the GMAC money factor.

Purchasing:

1)$2000 down
2)60 mo at $467 per mo (including TT&L 8.75%)
3)1.9% financing

At these #'s I'd be crazy not to purchase or am I missing something. Do you think this looks like a good deal?

Thanks,

si88

CarMan@Edmunds · May 2001

Hi Tom. The last that I heard, in most areas Ford Motor Credit's 36 month lease rate on the 2001 Ranger Super Cab 4.0L V6 was 2.75%. The corresponding 12,000 miles per year residual value for a 2001 Ranger Super Cab XLT 4WD is 47%. I am not sure what Ford Motor Credit's exact acquisition fee is, but if I had to guess I would say that it is probably in the vicinity of $400 - $500. You will not have to pay tax on any sort of discount that the dealership gives you on this truck. Although tax laws vary from state to state, usually you will not have to pay tax on Dealer Cash incentives either. You will usually have to pay taxes on Consumer Cash incentives though.

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CarMan@Edmunds · May 2001

Expedition2, thanks for the feedback on Westar. I believe that the GMAC residual values that I posted for the 2001 Yukon are correct. Their standard 15K resids for this truck are 57% and 50%. They have enhanced these residual values to 61% and 54% respectively. Then when you take the low mileage adders into account for this individual's 12K lease they become 62% (+ 1% for 24 mo.) and 57% (+3% for 36 mo.).

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CarMan@Edmunds · May 2001

Hi Joe. I really am not all that familiar with what the market for the 2002 RL is specifically like at this point. Traditionally though the RL has been a vehicle that dealerships were willing to provide significant discounts on. This fact combined with the fact that most manufacturers leave a decent amount of dealer profit in their advertised leases so that they do not upset their dealer base lead me to believe that you could probably get them to reduce the price on this car somewhat.

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expedition2 · May 2001

Car man,
If the residual values are that high for the Yukon and I leased mine when it was 52%, then I take it I paid too much!! I always look at the ads and the stripped models lease payments are higher than what I paid for a loaded version. So would the difference of 5% really make a big difference for me now? Can't dwell on the past, but I don't see the lower prices out there so I still can't comprehend this leasing! If you go to GMC's website the payments are significantly higher. There has to be some tricks in this whole calculation, somewhere.

dleungnyc · May 2001

SI88, I think you will need to compare Apple to apple. If the purchase payment plan is 36 months also, than you will see that the monthly payment is cheaper on the leasing plan when compared to the purchase plan.

[Deleted User] · May 2001

Does anyone know what the new lease rate would be for the Honda Accord EX V6 through Honda direct on a 3 and 4 year lease? All details:

Illinois
sell price 2275
residual value

Thanks

CarMan@Edmunds · May 2001

Hi boas13. I believe that American Honda Finance Corp. currently has a special lease money factor of .00180 for 3 year leases on both 4-cylinder and V6 2001 Accords without Value Packages. This support is not available on 4 year leases, so if you go with that term you will have to use their standard lease money factor of .00270.

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sstaylor · May 2001

Hey, Car_Man,

I'm still in the market for a new vehicle, as I've extended my current lease (a '98 Expedition EB) about as long as the bank will let me. I've been hit with that "New Truck Lease Shock" that you described in earlier notes, which contributed to my delay. I'd like to know if you could give me the latest Residual and Interest Rate information for a 36 month/12k a year lease on either a 2001 Expy EB, or a 2001 Olds Silhouette Premiere Edition van. That would be a great help.

TIA,
SSTaylor

tgif888 · May 2001

Thanks for you info. on the I30t incentive. Me and cpa4u are able to get the car below the invocie price. This is a great site.

Thank you.

cpa4u · May 2001

Thanks for your help with the $1000 incentive. The first dealer tried to play dumb to it. The dealer that I bought from today had no problem coming $300 under invoice and told me about the incentive himself.

gwarren · May 2001

Car-Man,
I am back again, hard to believe but its three years since my Mountaineer lease that ends The end of June. I am in the market again for an SUV, and have narrowed my possibilities to the following vehicles. 1) Acura MDX, 2)Lexus RX300, 3)Infinity QX4, 4) Mercury mountaineer. As We like all of the vehicles and each has some advantage or disadvantage. The Lease factors will probably determine the final decision, as I never fall in love with one car.

If possible looking for a 36 Month Lease on each Comparable Money Factors and Residuals. I know that I am not likely to get a deal on the MDX but it may still be a viable option if it has a higher Residual.

Any other suggestions you may have on my choices are greatly appreciated.

Gary

cgr45 · May 2001

Hello everyone and thank you for taking the time to read my post. Here's my situation. I leased a 01 Honda Prelude SH. I purchased the car on 3/24/01. The car was stolen on 4/30/01. The car is still missing. I put down a $3000 downpayment. My question is if the car is not found, do I get this money back or is the money gone down the toilet?? I'm really freaking out here. If I don't get the money back, I'm gonna be broke with no car. I don't know if this makes a difference but, I lease the car with Chase Bank. Thanks for you answers.

Carlos

s852 · May 2001

Insurance pays you the book value of the car. It is not related to how much you had put down.
You need to check with your insurance company and also see if you had gap insurance.
If the car was stolen in April, why haven't you talked to your insurance company yet?

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