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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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Replying to: swampwiz (May 05, 2005 6:47 pm) Typically the ALG number is pretty much a real world residual - about what the car should be worth at the end of the lease. It may tend to be closer to a wholesale number than retail, however. Keep in mind that these are estimates. If the car turns into a slow seller, has a reliability problem, or is replaced by a newer and much better model then the car will not likely be worth the residual. This is the gamble the lease bank takes, so you don't have to. Of course, it could be a wildly popular car and be worth more at the end of the lease. You can buy it for the below market residual, or turn it in and the bank makes extra profit. Captive banks can use real world residuals for hot selling cars, or for slow movers they can jack the residual up to make the lease payments lower and move more cars. Captive lease banks can also use way below normal money factors to help move cars. Your job (should you choose to accept it) is to bargain down the purchase price just like you would do a cash or finance sale. The lower you get the dealer to take for the car, the lower your payments - since the residual stays the same. The mistake folks make is walk into the dealership and say "I want to lease that car". Then the dealer can play all kinds of games with pricing, term, etc. You always: 1) Negotiate the price of the car down as far as you can, including destination and dealer fees 2) Negotiate trade in value, if any 3) Tell them you want to lease at the buy rate 4) Repeat at as many dealerships as you can Dennis |
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Replying to: alphawolf (May 05, 2005 8:54 pm) They will not lease you a car in NC as if you are a NC resident, then let you move it to FL. You would have to lease it in NC as either a NY or FL resident, then if NY "move" the lease to FL. I know you are set on the Avalon, but trying to get something they can't keep in stock just means you are going to pay way too much. The SE region (I am in it too) pretty much hurls as far as deals and choices. I have owned one new Toyota in my life and it may well be the only one, just because of their evil ways. Dennis
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I have a question regarding leasing in NY. I currently own a car that i have about $5000 positive equity and would have a dealer trae in value around $25,000. If I traded in the car on a new purchase, I would only have to pay taxes on the value of the new car over the trade. On a lease, is there any tax benefit of trading in a car?? If I trade in the car, would the value (~$25,000) be deducted from the lease price for that term? In essense, I would be looking at no tax on the car that I am looking at since the lease over the 36 months isn't more than $25,000. I hope I am explaining it correctly here. Of course, this would be a very promising scenario for me!! Thanks in advance. Dennis
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Replying to: d_nyholm (May 06, 2005 5:15 am) So the tax due is: Monthly_Payment x lease_term_in_months x local_tax_rate So a $400 a month 36 month lease for a car garaged in a county with a 8.25% tax rate would be: $400 x 36 x 0.0825 = $1,188 You either have to pay this up front, or can roll it into the lease. If you roll it into the lease then you pay interest on the tax as well. With the trade in, you would just reduce the payment and would save the taxes on the payment. Dennis
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Replying to: Car_man (Apr 23, 2005 10:29 am) Would you please provide me with the MF and residuals on the 2005 Audi A4 and A6 for the month of May, both 36K/12K miles per ? Also, has Audi extended the $ 1500 lease loyalty cash they had on the A6 ? Any other incentives that you may be aware of ? As always, thanks so much for your help ! 
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Car_Man, Can you please tell me the residual on a 05 Tundra DCab 4x4 SR5, leased for 36mos / 15,000mi ? The dealer told me that Toyota Financial has a special lease with a great MF of 0.00011 (yes, 0.26%). I just need the residual to go along with that... I'm hoping it's still in the 60's ... Thanks in advance.
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Replying to: b55140 (May 06, 2005 6:27 am)  The dealer can't change the residual, it is set by the lease bank (Toyota Financial in this case). So just ask the dealer, the number he gives you is the number - he can't change that. Dennis
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New to the forum and enjoying every bit of the posts here. I noticed a new lease for the 06 BMW 325i on their website and it runs at 36 mths/10K miles with $3299 cash ($399 1st mth pay, $2500 dwn pay, $400 sec. dep) at signing for MSRP $32,270, excluding tax, title, etc. First of all, is this a good deal? Secondly, what is the MF for this deal?
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Replying to: dwynne (May 06, 2005 5:12 am) Thanks for the reply. While I understand that technically that may be the case...I have a friend who leased a Lexus 330RX and moved down here. He's been here a year. There has been no change at all on the lease. He has even called the lease company to inquire about buying it out. The only issue is that he needs to return it to NY when the lease is up. I really "hear" you when you mention being set on the Avalon. Thing is that I'm trying to have my cake and eat it too. There are no full sized Japanese vehicles that come in around $36k. I'm 34 and the Buick and Ford 500 just aren't a possibility. The Maxima is sort of ugly to my eye and rides more harshly. If you can suggest something Japanese and full sized that does 0-60 in 6.5 seconds and gets 30MPG highway, comes in under $37k out the door- I'm all ears! I'm trying to avoid an SUV at all costs. My previous car was an 02 Honda Accord V6. If I wasn't going into Real Estate I'd most likely get a mid sized sedan which opens quite a few options. But, it is getting to the point of me needing a vehicle. Too bad honda doesn't have a full sized car. I may need to get something different though...  Dean |
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Replying to: ttangbee (May 06, 2005 8:13 am) If you are leasing at MSRP and the money factor is over 6% then I would say that is not a very good deal. Their lease calc I think always assumes $2,500 cap cost reduction, no tax, and getting at MSRP. It might be hard to get much of a deal on the new 3, since they are just coming out. My not be a smart move to get the new model either, lots of folks that got the new 5 were sorry with all the problems they had. If you opt for the 2005 325i I think there is a still a large dealer incentive to help move them and the lease numbers are 57% and 0.00225 . So worse residual, but better rate, and they should deal a lot cheaper on the car then add in the dealer cash. Car is also a "proven" design as well. Dennis
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