@RVguy not sure if you can help, but I need to get into a lease (company car, under the company name) with no additional Guarantor being involved. It’s a known 90 year old corporation (not a small mom and pop business) - had no issues with my previous lease (Nissan Altima) but would like a Honda Accord this time around. Any ideas or help? Seems like all Honda dealers in my area (SoCal) are requesting a personal guarantor, which Nissan did not require.
Yes, I can put you in touch with someone who can do this type of lease. Please be aware that your payment will not be the same as what you would get if you go to a dealership and do a personal lease on the Accord since there is no incentives, rate support or RV enhancement for this type of lease.
Check your PM in a minute or two.
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@RVguy I will visit Honda. I’m new to this - should I hope that Honda can offer some kind of conquest incentive to convert us from VW to Honda? How does that work and what do they typically offer?
For incentives, visit Autobytel instructions in wiki
https://forum.leasehackr.com/t/which-sites-do-you-use-to-do-research-updated-07-22-17-library
The Link is broken : https://forum.leasehackr.com/t/which-sites-do-you-use-to-do-research-updated-07-22-17-library.
I think this is the latest version of that link:
How can I get the absolute lowest selling price. They say they are at invoice and are not willing to go lower, even though they pay under it anyway.
I sent you a PM before I saw this thread, sorry about that.
My question is how do manufacturer incentives get applied when leasing through CULA?
For instance, let’s say there’s a $3000 purchase cash incentive for buying a car, but the residual value is poor and the captive lease company is not offering any lease cash. Since the program seems to be in essence a credit union buying the vehicle and then leasing it to an individual, would the purchase cash incentive then apply, since it would be sold to a credit union in the same manner as if the buyer just financed a purchase of a vehicle through the CU?
So example here… $40,000 vehicle MSRP, $3000 purchase incentive, $0 lease cash. 60% residual through both the captive lease company and CULA. Over course of lease, lessee would owe $16,000 plus MF interest through captive company and $13,000 through CULA? (obviously this if sold at MSRP - I realize you would want to negotiate the sales price)
Good question but it depends on a number of variables.
Incentives from the various manufacturers each have unique logic that dictates what type of purchase they can be used on. There are no consistent set of rules to go by and the names of these incentives are all over the place. Customer cash, retail cash, purchase cash, lease cash, IDL cash, bonus cash, performance cash, customer rebate, etc.
Dealer cash is also often offered that can be used as a cap cost reduction if the dealer chooses to use it that way.
When you lease or finance a vehicle there are 2 lender categories to choose from. The captive or the non-captive group of lenders. Credit unions, US Bank, And Ally are the main options in the non-captive group. The specific logic on an incentive will dictate which lender group can utilize it.
The bulk of the non-captive lease volume is being done on a handful of brands. Jeep, Chrysler, Dodge, Ram and Fiat models have a unique incentive structure in the form of the IDL program. You can research that term here for some detailed info but in general it is a separate incentive budget to move leases through non-captive lenders. The IDL cash is an up front cost the OEM pays to pump leasing without needing to worry about the risk of the RVs being too high and taking losses on the back end of the leasing business.
Non captives are also doing a lot of leasing on other models where the captive doesn’t subvene the rates much.
In the future I think there might be more OEMs trying out programs similar to the IDL program or letting non captive lenders access to their non-lease incentives. This is because the captives will be taking some major losses on a lot of leases in the next 1-3 years.
It will be interesting to see how far used prices and RVs fall on the sedan segments. The natural demand for those segments are so weak that the only way to move the large volumes that are still being produced is to somehow maintain low monthly payments. That requires ultra low rates and/or high incentives and/or artificially high residual values (and potentially increasing losses).
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Coming into the last two months of the year - do RVs typically increase to make leases more attractive and get more cars out the door for year end numbers?
Thanks in advance
So it sounds like the answer regarding the incentives for non-captive leases is, “well, it depends.”
Let’s just take a Malibu Premier for an example since it has a huge incentive on it for purchase. (20% off). For simplicity sake let’s say that I can negotiate $2k off sticker besides the 20% off, and the MSRP is $35k. It also has $200 lease cash from GM.
The CULA residual is 44%, the GMF residual is 52% from what I could find.
So with all that said, I would have a cap cost of $32,800 going through GMF, and a RV of $18,200. Thus I would owe $14,600 over 36 months (not including tax and interest) leasing through GMF.
If the 20% off discount was applicable to a car I leased through CULA, my math would look something like this: $35k - $7k - $2k = $26k cap cost. RV = $15,400. Thus I would owe $11,600 over the 3 years, again excluding tax and interest.
I don’t actually want to lease a Malibu, and don’t have any intention in leasing until May, but I’m trying to get my ducks in a row to explore the CULA route if something like the above is possible.
Hi, I am on my second lease and I don;t quite understand things. Would appreciate your thoughts on some questions below.
I have a 2014 Ford Edge SEL with eye sight package lease which added some nice options too. The lease is up by Christmas and I absolutely love the car, it never gave me any trouble, nothing ever broke or stopped working. It currently has 22,400 miles and I never saw the same car on the road during the 3 years I have been driving it and I appreciate the uniqueness. I would love to buy the car now but the residual price is high at $24,600 (it was a $40,000 car and my lease has been $405 per month with $500 down payment plus a Honda CRV lease that perhaps had some value for them but I had no idea… still don’t understated if cars have value to me at end of lease). I am considering the Mazda cx5 grand select AWD just because I can get the same look (combo of car color and rims that I have now) for less than a new 2017 Ford Edge (and there’s no new version of mine actually unless I get a Titanium which is well outside my budget). The part I don’t like is that I see the mazda cx5 combo that I like on the road quite a bit.
Anyways, I have some questions:
- would you consider buying out a lease if you liked the car a lot or does it make sense to let it go and lease a new one? Since after 3 years and coming out of warranty that’s when things can start to break… please explain your reasoning regardless of yes or no for an answer.
- if I am turning in a lease to get a new one… does my current leased car have any value for me to play with or I simply just turn in a leased car and start from scratch again either leasing or buying as if I literally do not have a car right now?
- If on the market to buy, is it best to buy a certified used car under a certain mileage (what would that be?) or get a new car? I see used ones from 2017 and less than 10,000 miles on them - when does it make sense to buy the used versus new?
- My financial situation now is not as well as it was 3 years ago and that is another stress in making any decision - so giving a big chunk of money down doesnt sound good but at the same time buying one so that at some point I don’t have to pay monthly things sounds good. In this case, would leasing the mazda with some down payment, to keep my monthly payments as low as possible, and at the end of the lease consider buying it (depending on financial situation then)…sound like a good idea?
Definitely good info in here for newbies and people who don’t understand the intricacies of leasing.
Hello, there is some great info here on leasing, I am new here so forgive me if I am posting in the wrong place.
I need some advice on my lease. I am from the UK, working over in California. I have a lease on a Golf GTI with 1 year left on it. Unfortunately I have recently lost my job and have to return to the UK on a permanent basis. I am now in a position where I need to hand back the car.
My financial situation isn’t great right now, therefore my options are limited. I can’t afford to pay the remaining term, can’t afford to make up the difference to the buy out value. The car is being advertised on Swapalease but due to VW restrictions I can’t swap when it has under a year left (which is 2 weeks away).
I feel I’ve now exhausted all reasonable options but to turn the car in under voluntary repossession. I know this will ruin my credit rating, but being as I’m leaving the country and almost definitely not returning will this be an issue? And will there be any reoccurring issues in the future whilst I am in the UK.
This is something that I would never have dreamt of doing, but I feel I have exhausted all options and this is all I have left.
Thanks for any help.
Hello RVGuy. Thanks for your offer. I am considering leasing a Genesis G80 3.8 AWD with Premium package. It is possible that I can get a Hyundai friends and family discount for a 2017 w/ MSRP of $49,870 for $39,275. Originally I wanted a 2018 but given I don’t think there is much difference between the 2017 & 2018 this seems like a good deal.
My question is about how to approach the dealer with regards to the certificate. Can I expect to be able to get any more discounts such as loyalty cash, or dealer cash for example? If so, what would be the recommended approach, disclose the certificate right away or start the negotiation, see what they will offer and then present the certificate? Thanks again. Feedback will be much appreciated.
Hey RVguy. Im in the middle of negotiating a lease. Im putting max MSD’s and paying a drive off. The deal is ok so far. What exactly can dealers waive in regards to drive offs? Im in the market for an AUDI btw. Thanks!!
Wow this is a tough situation. i would never recommend defaulting on your lease and I have no knowledge about any international repercussion that may arise should you do so. The only thing that comes to mind is that VW Credit may be connected and sharing data with the finance company in Europe so you might have trouble getting a loan or lease for their brands elsewhere.
Hi RVguy, thanks for doing this. A question for you… I am looking to get a great leasing deal on Touareg as it’s going to be gone starting next year. With the RV of this car being so low (41%) as of this month, I’d really have to get the selling price down to around $40K from $54K MSRP. I had a couple e-mail exchanges with a few dealers near by, but the highest discount I can get is $7K off. Also, as I understand there’s a lease cash of $2,250 available. 2 years ago around the same time, I saw dealers giving away $11K leasing credit on the Touaregs, do you think something like that will happen soon? If so, when?
Looking to finally move up from 8 year old Nissan Murano S (will have some parting pains for sure 
) to an MDX with Tech or Adv packages. Was looking at the sport hybrid initially but these lease offers from the local dealer here (bay area) caught my eye:
2018 MDX AWD with Advance Package.
MSRP $57,675
Your Price $53,884
Residual Value $34,587
With $2,500 total driveoff (includes your 1st months payment, tax and DMV fees)
35 months at 10,000 miles per year = $658 per month including tax
With $3,500 total driveoff (includes your 1st months payment, tax and DMV fees)
35 months at 10,000 miles per year = $629 per month including tax
With $4,500 total driveoff (includes your 1st months payment, tax and DMV fees)
35 months at 10,000 miles per year = $599 per month including tax
2018 MDX AWD with Technology Package for your review.
MSRP $51,575
Your Price $47,814
Residual Value $30,945
With $2,500 total driveoff (includes your 1st months payment, tax and DMV fees)
35 months at 10,000 miles per year = $571 per month including tax
With $3,500 total driveoff (includes your 1st months payment, tax and DMV fees)
35 months at 10,000 miles per year = $541 per month including tax
With $4,500 total driveoff (includes your 1st months payment, tax and DMV fees)
35 months at 10,000 miles per year = $512 per month including tax
Having never leased before these numbers seem good to me but wanted to get some opinions from the pros here. Thanks much.