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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
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Replying to: abrec (Jan 14, 2005 6:24 pm) |
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Replying to: Car_man (Jan 14, 2005 10:09 am) |
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Dear car_man, I am looking to lease a car (ES 330 2005 with Navigation system + other features). The car MSRP = 36,133 TMV = 35,469 (I think Edmunds' is too high !!) Invoice = $31,863 I am Dallas, Tx. I have never leased a car before. This will be to drive atleast 13,000 miles year. This is a business car (company pays the leases). Can you please guide me here as to what should I look for in negotiations? My credit score is high so that should not be a problem. What is money factor? Thanks, vick (vcopell  yahoo.com) (Anyones else ready to help, welcome to write back). Do you have residual and money factor numbers for the 05 TL automatic with Navi at 15K miles for 36 months? Any information on what the purchase price should be? Thanks for the help! |
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Hi Chigirl. I'm saddened by the lack of popularity of the manual transmission as well  . If your daughter was to lease a 2005 Honda Civic Civic EX Coupe Special Edition through American Honda Finance Corp. right now for 36 months (its special lease program is only good for leases of up to 36 months in length) with 15,000 miles per year, its base lease money factor and residual value should be .00136 and 54%, respectively. The unsupported numbers for an otherwise identical 48 month lease of this car should be .00225 and 46%. As far as your daughter's trade goes, it would be in her best interest to have the dealer that she is getting her Civic from cut her a check for it rather than using the proceeds as a capitalized cost reduction. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, 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 leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for this Civic would be exactly the same, regardless of whether your daughter had put $3,000 down, or had made absolutely no down payment at all. Car_man Host Smart Shopper Forum
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You're welcome, Tom. Yes, that is how I arrived at the lease payment that I calculated for you. While Subaru is providing a $1,500 cash incentive on 2005 Legacy models through its captive finance company, it does not have a similar incentive on the Outback at this time. Car_man Host Smart Shopper Forum |
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No problem, wagagog. If you can get this vehicle for $500 over invoice and then have any available cash incentives deducted from its price, I would indeed say that you are getting a good deal. For whatever reason, Subaru's residual values for the Legacy GT Limited Wagon are indeed 2% higher than its residuals for the non-Limited version. You're right that expensive options normally lower a model's residual value percentages, but their impact upon residuals all depends upon their price. Let's say that rather than $2,000 a manufacturer decided to offer navigation on their vehicles for $100. In this case, the addition of navigation would actually probably increase the vehicle's residual value percentage. Perhaps the Limited version of this vehicle is a good value when one compares the options that they get to its price. Or perhaps for some reason people find non-Limited versions less desirable on the open market. Furthermore, it is possible that Subaru is artificially inflating this model's resids. There are a number of possible reasons why the Limited's residuals are higher. Car_man Host Smart Shopper Forum
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You're very welcome, jpl. I am glad that I was able to help you out. Congratulations on your new car and enjoy! Car_man Host Smart Shopper Forum |
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Hi Rick. I can give you an idea of what Lexus' lease program is like on this car right now. Unfortunately, Lexus did not carry over the lease support that it was providing on the 2005 LS 430 in December over to January. As a result, it you were to lease this car through Lexus Financial Services right now, you would have to use its standard lease program. Its base standard lease money factor for consumers who qualify for its "Tier 1" credit tier is .00205 in most areas. The 36 and 39 month, 12,000 miles per year residual values for the '05 LS 430 Custom Luxury should currently be 55% and 52%, respectively. Car_man Host Smart Shopper Forum
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Hello rob222. You never mentioned the exact selling price or MSRP of the truck that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing these prices for this Touareg you don't know how good a deal you are getting on it. The second reason is that one needs to know these prices is that it they are necessary to calculate lease payments. I would be more than happy to work up a sample lease payment on the truck that you are interested in for you using Volkswagen's actual lease program if you let me know what these prices are. You can then compare the payment that I cam up with to the one that you were quoted. Car_man Host Smart Shopper Forum |
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You're very welcome, upndwn. Sorry about the confusion. When I stated that most dealers "are in good shape" with their A4 inventory, I indeed meant that there is not an oversupply of A4s out there in most areas at this time. Of course, this is a general statement and exact inventory levels will vary from dealer to dealer. Most manufacturers' advertised lease payments leave a little room for negotiation. Even taking the fact that dealers are doing a decent job selling their remaining A4s into account, you definitely should be able to get more of a discount than $500 on this car right now, especially considering the arrival of the redesigned model in the near future. Good luck in your negotiations and make sure to stop back and let us all know how everything turns out. Car_man Host Smart Shopper Forum |
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