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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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No problem, explorerx4. Car_man Host Smart Shoppers / FWI Message Boards |
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Hi again metmdx. Although some banks do still lease vehicles to consumers who live in New York, many of them have stopped leasing to NY residents, offering them contracts that are known as a balloon notes instead. Balloon notes with the option to turn vehicles in at the end of their term, are very very similar to leases in that they give consumers relatively low monthly payments. One main difference between leases and balloon notes are that with balloon notes, the consumer's name is on the vehicle's title instead of the banks, thus limiting the bank's liability. Another is how taxes are calculated on them. In many states, consumers end up paying more sales tax on vehicles with balloon notes than they do on the same model if they were to lease it. The last main difference is in how leases and balloon notes are calculated. Rather than using a money factor, like many banks do to calculate lease payments, balloon notes are calculated using interest rates. Even though they have become a little more popular because banks have switched to them in some states to prevent vicarious liability lawsuits, they still are much much less common than leases and I do not keep tabs on manufacturers balloon note programs. Car_man Host Smart Shoppers / FWI Message Boards |
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Hello rowemowe. Kyfdx was right on the money. Thanks kyfdx  . Car_man Host Smart Shoppers / FWI Message Boards |
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Hi rowemowe. The highest mileage allowance that Lexus Financial Services publishes residual values for is 15,000 miles per year. If you need to drive more than that, you will have to purchase additional miles on a per-mile basis. It is to your advantage to do so at lease-signing if you are positive that you will need the additional miles because banks almost always charge less for additional miles purchased at lease inception than they do for miles when consumers exceed their mileage allowance. As far as the length of your lease goes, the 39 month contract would probably provide you with a lower monthly payment because this model's 36 month and 39 month lease money factors are exactly the same, but you would be spreading out the initial depreciation hit out over another three months. One negative to leasing for only three years is that many vehicles only come standard with 3 year / 36,000 mile bumper-to-bumper warranty coverage and the leased vehicle will be driven for three months without a full warranty. However, this is not a problem with Lexus models because they all come standard with 4 yr. / 50,000 mi. basic warranties. As such, I personally would have leased this model for 39 months instead of 36, provided that the 39 month term provided a lower payment. Car_man Host Smart Shoppers / FWI Message Boards |
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Car_man, Can you provide me with lease information based upon 3yrs/12k for the following; 04 Acura MDX w/ Touring & Nav 04 Lexus RX330 w/ Premium & Nav Thanks, Chris |
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Thanks Car_man, for the reply. It sounds to me that the money factor normally varies depending on the length of the lease? Does the residual value also remain the same for a 36 and 39 month lease, like the money factor? And if I purchase more miles at inception, I imagine the residual will decrease? Sorry for all the questions, but they're related so I figured I'd put them all in the same post. Thanks again. |
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| What is BMW Financing and Chase's current Money Factor on a 2003 Z4 2.5 for 42 months? Thanks in advance. Clay | |
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Hi Car_Man, I was wondering if you could post the current Mazda 6 MF & residuals for 36/39 month programs with 15k miles? Thanks, Edmund. |
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| had a little eureka, regarding saab residual. actually i'm better off with the up front lease support and lower residual(3k/48% vs 0k/56%), if i want to buy the car at lease end. the payments are no different, but the buyout is lower. now i have to look at replacement items(tires, etc.. just had new front brakes/rotors at 30k), and maintenance over the next 3 years. property tax will definitely be lower. | |
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Greetings, Chris. Both Lexus and Acura have either just published or are scheduled to publish their new November lease programs. As a result, I have not seen the information that you are looking for yet. Please feel free to check back with me at the end of the week and I should be able to give you an idea of what these models' new programs are like. Talk to you then. Car_man Host Smart Shoppers / FWI Message Boards |
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