Edmunds.com | Inside Line | Auto Observer Your Account | Help | Directory
You are here:
![[F]](http://a332.g.akamai.net/f/332/936/12h/www.edmunds.com/media/townhall/webxicons/site.gif){kind=small}
Forums
Smart Shopper Smart Shopper-Archives Lease Questions - Ask Here 
23872 messages, Last post on Sep 20, 2005 at 8:08 AM
You are in the Smart Shopper-Archives Forum. Your Hosts are kirstie_h & tidester
|
Hi vkj. The Audi Financial Services lease money factors for a 2001 A6 2.7T are .00260 for up to 39 month and .00280 for 48 month terms through December 5th. Furthermore, the 12,000 mi/yr residual values for this car are 68% for 24 month, 63% for 30 month, 59% for 36 month, 58% for 39 month, and 52% for 48 month terms. It is possible that the dealership that you visited is using a different bank or is marking-up the lease money factors that they quoted you. I am sorry to say that I am not all that familiar with how the taxation of leased vehicles works in your state. I seriously doubt that any dealership that you deal with would intentionally overcharge you for the tax on your vehicle. This would probably be a serious violation of the law. However, if you want to make sure that you are being charged the correct amount of tax, perhaps your local Department of Motor Vehicles would have information on exactly how to calculate it in your home state. Car_Man Smart Shoppers / FWI Co-Host |
|
| how much leverage do i have to force the dealer to use audi's program rates? Do these rates vary at all from state to state? will audi verify these rates in some form so that i can show them to the dealer? | |
|
Vkj, you can not force your dealer to use Audi Financial Services' base rates when calculating your lease. Most banks allow individual dealerships to mark-up their rates a certain amount if they choose to. Audi Financial Services' lease money factors do occasionally vary from state to state. However, the only state that differs from their core program at this point is the state of Florida. If you are not happy with the deals that the dealership that you have visited has offered you, you always have the option to shop elsewhere. Car_Man Smart Shoppers / FWI Co-Host |
|
|
|
| Hey Car Man, I was wondering what's a good price for a markup for extra mileage on a lease. I'm looking to lease a Nissan Maxima GLE and one dealer told me I would have to add $40 a month to change the lease from a 12,000 miles lease to a 18,000 miles lease with a 12 cents/miles addition at the end. Is that fair? | |
|
Setonamaxima, $.12 per mile is a fairly typical excess mileage charge. For instance, Chrysler Financial charges its lessees $.12 per mile for extra miles in advance and $.15 per mile per extra mileage at the end of lease terms. Many luxury manufacturers' captive finance companies will charge more like $.20 to $.25 per mile. Car_Man Smart Shoppers / FWI Co-Host |
|
Okay, here is goes. Quick and simple. I'm ready to lease a Maxima. Never leased before, so what are the ends and outs of the process. What should be asked, known, and what I's and T's need to be dotted and crossed before signing? Can you still haggle with the price? Any and all help would greatly be appreciated. Thanks in advance.
|
|
|
Hi moparfan2. Your name suggests that you love Chrysler products, but you are leasing a new Maxima. Interesting. Good choice in cars though. I helped my father lease a new Maxima a few years ago and he loves it. Although leasing appears to be very confusing at first, there are really only a few important numbers to concentrate on. The first one is the vehicle's capitalized cost. The capitalized cost, or cap cost as it is commonly called, is essentially the price that you would be paying for the vehicle that you want to lease had you paid cash for it. You are free to negotiate the price of a leased vehicle, just as if you were purchasing it normally. It is important to do so, because this is the main factor that you have control over as a consumer. The other important figures that are used to calculate your monthly lease payments are called the lease money factor and the residual value. The money factor is essentially the interest rate that you are paying on the money that the bank is footing for you to lease the car that you want. It is usually expressed in the form of a 5 digit decimal, such as .00240. This can easily be converted to an approximate interest rate equivalent by multiplying it by 2400. I definitely suggest that you find out what the lease money factor for the car that you want to lease is prior to signing any contract. Right now Nissan has supported lease money factors as low as .00260 on the 2001 Maxima. Make sure that the money factor that you're being charged is right around that figure. The last major component of a lease is the vehicle's residual value. Lease residual values are basically the bank's estimation of what the vehicle that you want to lease will be worth at the end of your term. This number allows the bank to charge you for the portion of the vehicle that you are using during your lease. For example, the a 3 year lease on a 2001 Nissan Maxima may have a 15,000 mile per year residual value of 52%. This means that on top of the interest that you are paying, your payments will be contain equal payments to account for the 52% of the vehicle's MSRP that the bank believes the car will lose during the life of your lease. If you choose to lease with fewer miles per year, like 12,000, then your vehicle's residual value will increase and in turn your monthly payments will come down slightly. Prior to negotiating a lease on your next car, I suggest that you pay a visit to a topic that I started a while ago here in the Finance, Warranty, and Insurance Conference. It is called "How to Calculate Monthly Lease Payments." I think that you will find the information that it contains very helpful. Please click here to go there: FWI Topic #35 "How to Calculate Monthly Lease Payments. Of course if you have any questions on a subject that I did not address in this post, please don't hesitate to ask. Car_Man Smart Shoppers / FWI Co-Host |
|
| Okay, I drive to the dealership and ask to test drive the car I am looking to lease. Once I find the car's features to my liking, the dealings begin. What is the correct order in which to begin. Do I haggle the price first? (which by the way, what is a decent percentage should one begin the pricing war - e.g. should I offer them 27K on a 30K car?) Second, is it appropriate to ask the following: What is the Lease Money Factor and Residual Value? Is this info commonly released to the perspective buyer? Your previous explanation was quite helpful, but the nerves are going into overdrive. Lastly, one dealer has told me that the 2000 Maxima GLE have an incentive of $3,000 off. Is there an advantage of buying a 2000 vs. 2001 at this time of the year? _ Thanks again in advance. | |
|
Wow Dan, you certainly were thorough in your research for your new truck. Good job. Both the price that you were quoted for this truck and the lease money factor seem very reasonable to me. The money factor certainly is lower than the unsupported GMAC lease rate that you would have had to use if you leased through GM. However, for some reason when I plug the numbers into my lease calculator I come up with a pre-tax 39 month lease payment of $522 and a 51 month payment of $478. These are quite a bit lower than the payments that they calculated for you. I suggest that you try plugging the numbers into the formula that I posted a link to in my previous message and then let me know if you come up with the same payments. Car_Man Smart Shoppers / FWI Co-Host |
|
|
Moparfan2, yes price is the first issue that I would address when looking to lease a new car. The exact percentage of the vehicle's MSRP that you will have to pay will vary tremendously depending upon the popularity of and the supply of the vehicle in question. In order to get a good idea of what the car you are interested in is going for in today's market, I suggest that you either check out the Edmunds.com True Market Value for the vehicle by visiting its new vehicle pricing page on this site or visit the Town Hall Conference that is most likely to have fellow owners and shoppers that are interested in the vehicle that you want and ask them for feedback. The exact lease money factor and residual value for the vehicle that you want will also vary quite a bit depending upon what model it is. I personally would want to know this information prior to leasing any vehicle, but some dealerships are hesitant to share this information. If you keep after them they will probably tell you the money factor and residual that they are using to arrive at your monthly lease payments. If you would like, you can always ask me and I would be glad to let you know what I think a fair money factor and residual value would be for the vehicle that you want. There isn't a $3,000 manufacturer incentive available on the 2000 Nissan Maxima at this point. The dealership must be combining the $500 dealer cash incentive with a price discount to arrive at the number that they told you. There can be a definite price advantage to purchasing a left over 2000 model year vehicle this late in the year. In my opinion, purchasing a left-over vehicle is actually a pretty good idea in this particular vehicle's case because the 2001 Maxima remains virtually unchanged from the redesigned model that was introduced in the 2000 model year. Car_Man Smart Shoppers / FWI Co-Host |
|
You are here:
Forums
Smart Shopper Smart Shopper-Archives Lease Questions - Ask Here
New? Join Now!
Forum Tools
Search Forums
Browse by Vehicle
Browse by Board
Browse by Topic
Today's Chats
