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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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Hi penn2. Audi Financial Services' base lease money factor for a 3 year lease of a 2005 A6 3.2 Sedan right now is actually .00132. This money factor requires that you pay a security deposit, but even without one it would be lower than the .00182 that you were quoted by the dealer that you are working with. I suspect that your dealer is trying to mark-up this car's base money factor to add additional back-end profit to your deal. This is a completely legal tactic, but one that you can avoid by knowing a manufacturers' published lease program, which you now do. It is difficult to say what Audi's lease program on this car will be like in April. As long as you get your dealer to use Audi's base lease program to calculate your payment and negotiate an attractive selling price, you should be able to get an attractive deal on this car. Car_man Host Smart Shopper Forum
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Thanks for the additional information, jcrawford. $2,155 is way too much of a capitalized cost reduction to make when leasing. 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 vehicle would be exactly the same, regardless of whether you had put $2,000 down, or had made absolutely no down payment at all. Car_man Host Smart Shopper Forum |
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Let's work up a lease payment on this puppy for you and see what we come up with, auburn97. According to my calculations, if you were to lease a 2005 Nissan Murano SL AWD with an MSRP of $29,330 and a capitalized cost of $28,058.05 through Nissan Motor Acceptance Corp. right now for 42 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $337. Car_man Host Smart Shopper Forum
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Hey coffee_fan. Saab is currently providing $4,000 lease cash or $3,000 dealer cash on the 2005 9-5 Arc wagon. These offers cannot be combined. If you lease, you are only eligible for the lease cash. Having said this, this month, Saab is providing a $1,000 bonus on all sales and leases of the 2005 9-5. So the total lease incentives on it right now is $5,000. Saab Financial Services Corp.'s base 2 year, 12,000 miles per money factor and residual value for this model is currently .00001 and 59%, respectively. You never mentioned the selling price of the car that you are interested in leasing. This is an important number 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 the price of the car that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to work up a sample lease payment on the car that you are interested in for you if you let me know what its selling price is. Car_man Host Smart Shopper Forum
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As I suspected, this lease is through a bank other than Volvo Finance, asd302. I have not seen this banks' published lease program for this car. As a result, I cannot tell you whether it is marking up your money factor any. I can tell you though that you are getting this car for a very reasonable price. The only thing that I would change about this deal if I was in your situation is I would not make any sort of capitalized cost reduction. Car_man Host Smart Shopper Forum |
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Here is the information that you are looking for, MD_Outback. If you were to lease any 2005 Honda Accord Coupe EX with navigation through American Honda Finance Corp. right now for 3 years with 12,000 miles per, its base lease money factor and residual value should be .00113 and 52%, respectively. Car_man Host Smart Shopper Forum
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Congratulations on your new X3, funky1020. I am glad to hear that you have learned so much from reading this discussion. Thanks for taking the time to come back and let us all know how everything turned out. Enjoy! Car_man Host Smart Shopper Forum |
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Hi mkcal. I am sorry to hear that you have already put so many miles on your car. I definitely would not do anything now if I was in your situation. Purchasing it now will likely prove to be more expensive tha it will be down the road. Not only are you more upside down on your car at this time than you will be near the end of your lease, but the bank that you are leasing it through is much less likely to be willing to negotiate its purchase price this far before the scheduled end of your lease. You basically have two options, continue to drive your Jetta and pay the excess mileage penalty at lease end or wait until the scheduled end of your lease and purchase your car, trying to negotiate a lower selling price with VW Credit, or whichever bank you are leasing it through. If your car's lease-end purchase price is less upside down than the amount that you owe in excess mileage charges, you may want to consider buying it. Car_man Host Smart Shopper Forum |
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Hi jq31. Edmunds.com has a ton of good articles on leasing that you definitely should check out. Here are links to a few of them: - Leasing Glossary - 10 Steps to Leasing a New Car - Calculate Your Own Lease Payment. Car_man Host Smart Shopper Forum
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You're welcome, jetfan. Car_man Host Smart Shopper Forum |
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