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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
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You're welcome again, gwudc  . Car_man Host Smart Shopper Forum |
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You're welcome wifrbr. Vehicles' residual values are not negotiable. They are set by the banks that the vehicle is being leased though and individual dealers do not have the authority to alter them. Car_man Host Smart Shopper Forum P.S. upndwn is right that some banks will let consumers negotiate lower residual values for vehicles, but never higher ones. A lower residual value will cause your lease payment to go up though and is only to your advantage if someone is making your lease payments for you, but you will have the option to purchase your leased vehicle at the end of the lease. |
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Hey prince812. Let's work up a sample lease payment on this car for you and see what we come up with. Even though dealers in your area are not providing any discounts on this car, you should at least be able to get them to give you the $1,000 bonus that DaimlerChrysler is giving consumers who finance or lease any Chrysler 300 through Chrysler Financial right now. According to my calculations, if you were to lease a 2005 Chrysler 300C 2WD with an MSRP of $37,100 and a selling price of $36,100 through Chrysler Financial this month for 3 years with 15,000 miles per, its zero down, pre-tax monthly payment should be around $615. Car_man Host Smart Shopper Forum
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Hey John. Unfortunately, manufacturers' captive finance companies do not deal directly with the general public. If you called up American Honda Finance Corp. and asked them to tell you what a vehicle's current lease program is, they would most likely tell you to consult your local dealer. If you were to lease a 2005 Acura TL with navigation through AHFC right now for 36 months with 15,000 miles per year, its base lease money factor and residual value should be .00235 and 57%, respectively. The numbers for an otherwise identical 39 month lease should be .00235 and 53%. In general, most vehicles' residual values drop 2% when they are equipped with navigation, but his rule is not set in stone. The exact variation varies by bank and even from month to month within banks. For the length leases that you are considering, AHFC currently only has a 1% difference between TLs equipped with and without navigation. Car_man Host Smart Shopper Forum |
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Hey toyotajim. The most important numbers to find out when negotiating a lease with a dealer are the vehicle's selling price, either in relation to its full MSRP or invoice price, and the lease money factor that was used to calculate its lease payment. Remember that the selling prices of leased vehicles are negotiable, just as if you were financing or paying cash for them. Vehicle's money factors are not negotiable in that one can not get dealers to lower bank's published factors, but dealers often can mark up money factors to add additional profit to deals. Make sure to find out what these two numbers are on any lease that you are considering. Edmunds.com has a very informative article on leasing that you may want to check out: 10 Steps to Leasing a New Car Car_man Host Smart Shopper Forum |
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Greetings Gina. Here is the information that you are looking for. If you were to lease a 2005 Volkswagen Jetta GLS 2.0L Sedan through VW Credit right now for 36 months with 15,000 miles per year, its base lease money factor and residual value should be an attractive .00004 and 52%, respectively. The numbers for an otherwise identical lease of the wagon version of this vehicle should be .00081 and 51%. The money factors for leases with 12,000 miles per year would be the same, but the residual values would be 2% higher. The $1,000 dealer cash incentive that you saw is not compatible with VW Credit's special lease program, but VW is providing a $700 cash incentive on leases of the GLS 2.0L Sedan through VW Credit right now. This money will help you to negotiate an attractive capitalized cost. Car_man Host Smart Shopper Forum
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Hey valleydriver. Let's take a look at the lease program for the new vehicle that you are considering. If you were to lease a 2005 Honda Element EX 2WD through American Honda Finance Corp. right now for 36 months with 15,000 miles per year, its base lease money factor and residual value should be .00250 and 54%, respectively. The Element is a decent truck for the money and it will provide you with quite a bit of room, but it definitely will not be as fun to drive as the Mazda3 would be. Car_man Host Smart Shopper Forum |
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You're very welcome, sgsunny. You did a great job of providing all the necessary information to calculate a lease payment on this car in your post. Let's work up a sample lease payment on this car for you so that we can compare it to the one that you have been quoted. According to my calculations, if you were to lease a 2005 Acura TL without navigation with an MSRP of $33,470 and a selling price of $32,000 (I have a feeling that you can do better than TMV) through American Honda Finance Corp. right now for 39 months (I have not seen this car's 42 month program recently) with 15,000 miles per year, its zero down, pre-tax monthly payment should be around $505. Estimating what AHFC's 42 month program for this car is probably like, it would drop the payment to around $464 or so. The payment that you were quoted looks pretty good to me, but it definitely is not based upon a selling price that is anywhere near invoice. A 39 month, 15k lease of this car through AHFC at invoice would have a pre-tax payment of around $419 or so. Car_man Host Smart Shopper Forum
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Hi cheng6991. You can get a good deal on this car by negotiating an attractive selling price and then making sure that the dealer that you are working with uses BMW Financial Services' base lease program to calculate your car's payment. When negotiating this car's selling price, or capitalized cost, keep in mind that BMW is providing $3,800 dealer cash on it this month. This cash incentive will help you you to negotiate an attractive price. Once you have arrived at a selling price that you feel comfortable with, make sure that the dealer that you are getting your car from uses BMW Financial Services' 3 year, 10,000 miles per lease program, money factor = .00225 and residual value = 56%, to calculate your payment. Car_man Host Smart Shopper Forum |
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No problem, sfowler2. I am not personally familiar with how sales tax is calculated on leased vehicle in your state, but you may be able to find out by visiting one of the following sites: Virginia Department of Motor Vehicles or Virginia Department of Taxation. Car_man Host Smart Shopper Forum |
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