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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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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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Hi dawnied. I am sure that the Los Angeles market is probably much more competitive than your area is. I noticed that you mentioned putting $3,000 down when leasing this truck in your post. 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 4Runner would be exactly the same, regardless of whether you had put $3,000 down, or had made absolutely no down payment at all. I personally doubt that this truck can be had for $300 per month with zero down, but this is the way to go. Call or e-mail a few dealers before going all the way to Los Angeles to find out the selling price of the 4Runner that you want and then have them work up a lease payment on it for you using the price that you have agreed to. Car_man Host Smart Shopper Forum
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Wow, three years ago, huh, abrec? You're making me feel old  . Here is the information that you are looking for. If you were to lease a 2005 Acura TL with navigation 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 .00235 and 57%, respectively. I am not personally all that familiar with what the market is like for this car in your area right now, but you may be able to get an idea by visiting the following discussion: "Acura TL: Prices Paid & Buying Experience". Car_man Host Smart Shopper Forum |
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You had the money factor right, ortega, but the residual value for the '05 TL with navigation is only 57%. The 58% residual is for TL models without navigation. Car_man Host Smart Shopper Forum |
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You're welcome, Jeffer. I don't know how sales tax is calculated on leased vehicles in Washington state, but you may be able to find out by visiting the following sites: Washington Department of Licensing or Washington State Department of Revenue. Car_man Host Smart Shopper Forum |
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Welcome to the wonderful world of leasing, Vick. since you have never leased before, you may want to check out the following informative articles that are available here at Edmunds.com: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment. As far as the specific car that you are considering goes, you're right, I personally don't think that you will have much trouble getting it for less than the TMV price that is listed on this site. Negotiate as attractive a price as possible on this car, and the calculate a lease payment using the formula that is outlined in the above article, a 36 month money factor of .00145, and a 36 month, 15,000 miles per year residual value of 56% (without navigation). You should be able to find out the TL info that you are looking for by looking at a few of my recent messages. Good luck and make sure to let me know if you have any other questions. Car_man Host Smart Shopper Forum |
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Replying to: Car_man (Jan 16, 2005 5:29 am) I transcribed the invoice price wrong when I calculated the lease, so the monthly payment ended up being a bit higher than I had first (mis)figured. But, I went for it anyway. The Legacy GT was just too seductive. My wife was rational enough to see the 2.5i was sufficient, but the turbo charmed me after I drove it, and there was no going back . . . especially since there was a nice winding road I could throw it around on during the test drive. This is what I ended up with: $318/month for 48 months on a GT wagon with the Pop. Equip. Group 1 and the Rear Cargo Tray. The buying experience was as good as any I've had. No pressure, no trickery. If it wasn't for my mistake transcribing the invoice price, it would have been entirely casual and seamless. The dealership was willing to take a smaller profit than I had originally offered to help get my monthly payment down $10. They instantly verified the MF and residual you had given me. Oh, I had also not added in the "Assignment Fee" to the cap. cost; it was $595. Even though these things made the price a bit higher than I had originally figured, I still feel like I got a good deal . . . and I highly recommend Langston Subaru to anyone in the Pittsburgh, PA area. Thank you once again, Car Man, for helping me with another car lease. You're brilliant! |
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