Lease Residuals/Money Factors

[MaximaFan]

Can anyone working in a dealership tell me what the lease residuals and money factors are for a 36 month lease for someone with excellent credit?

Thanks!
Matt

[Hawaii200sx]

36 mo 53% - s, 52% - cvt. money factor sux just under .003

take a 24 mo
70% - s
68% - cvt
.00121 m/f - no markup allowed

[MaximaFan]

Thanks for the response - it's much appreciated! Looks like the '06 Sentra Fully loaded is still a lot cheaper to get than the Versa Fully loaded. I know the Versa is a nice car - and I've been excited about it for a while, but I don't know how much justification there is in buying the Versa with a monthly payment that is 35% higher for a 24 month lease, and almost 50% higher on a 36 month lease. Nissan is practically giving 0% financing on the 06 Sentra leases even though the car has a crappy residual. A loaded new 06 with $0/down is $220/month over 36 months and $1500 in up front costs. Where as the Versa 24 month lease would be about $297/month, and the 36 month lease would be about $325/month all with about equivalent upfront costs. Maybe once Nissan starts giving incentives on the Versa will it be worth while. It's a shame - I really love the versa, but Nissan has priced itself out of this range since a fully loaded Honda Fit can be had in a 36 month lease for $249/month.

[ZYAL8R808]

Don't forget about first-year bugs. Hopefully the Versa doesn't suffer the same fate as the 2004 Quest did.

[Hawaii200sx]

the quest was a brand new model, the versa globally has been a proven car. we are just getting parts mostly from Japan and assembling it in Mexico. As a salesman, I thought that you would know how to overcome the first year objection. but then again, its assembled in Mexico, not Japan:40007:

[ZYAL8R808]

Kiss my butt.

[brianmita]

I'm betting the lease incentives on the versa might be more attractive in the fall when the sedan comes out. the hatch is getting quite a good bit of press and I think Nissan is going to try to ride that until the inventories are up. 52% for a residual on a three year is pretty good though and if quality is good hopefully that'll float up to the 55% range.

Nissan is pretty bullish on this car so we'll probably only see a lease incentive for a while, and maybe a 2% financing deal or $500 off later on. I'm not sure, they only launch I was around for was the pathfinder and that went straight into cash back incentives, most likely due to declining sales of SUV's

why does honda have a lease incentive already for the fit? are they not selling as well as they projected?

[ZYAL8R808]

Honda's probably just being very aggressive with their launch of the Fit. Makes sense. Bring it out with a bang a get a bunch of them on the road. And since it's only a lease incentive they don't stand to lose a lot in rebates.

[MaximaFan]

There is no lease incentive for the Fit, it just has a 57% residual, and the sale price is only $15,500 for the sport. The Versa sale price I calculated off of was $17,600, with a 2 yr residual of .68 (CVT), and a 3 year residual of .53. Honda and Nissan had similar interest rates.

Matt

[Hawaii200sx]

the higher residual and lower price will always be more attractive lease. no lease, just buy um, no need worry bout miles, damage, service.

[MaximaFan]

I know where lots of people are coming from with the lease vs. buy argument, and I don't think it is as black and white as many people make it out to be. Some cars are better lease deals - others are better financing deals. It also depends on your objectives. For example, I drive less than 12,000 miles/year - I live in NYC and I park my car on the street every night. For this reason alone - I cannot have a nice car because it would be heart breaking to see it scratched or stolen as it so often might be. I also choose to lease my vehicles because they are simply a tool to me - I make sure I'm getting a lease that is truly economical - that allows me to have a new, reliable car without the worries of ownership.
In the Sentra example I gave above - I would spend only $7900 over the life of the lease (3 yrs) - with only about $7/month are actual interest charges, or $252 over the life of the lease. For the Versa, however, my total cost over the life of the 36 month lease is $12,600. Both the sentra and the versa when fully loaded have similar MSRPs. Yes, the Versa is a better car, but why should I pay $4,700 more over 3 years (And almost ALL of that is interest payments) for another very similar car? Car purists will argue that the Versa is better and that's what you're paying for. Yes, that's true - but the Versa isn't a G35 coupe. I doubt either the versa or sentra will thrill anyone more than the other. You also have to realize that $4700 is almost 1/3 the price of the entire car in this range. Quite ridiculous.
Buying a Versa - unless you do it outright won't save you that much money either because financing on a buy can range anywhere from 6-8% - even higher than the Versa lease in some cases. If you bought a versa over 5 years at 7% interest, you would spend $20,400 on the car or about $3,000 interest. Yes buying a vehcile with attractive financing can be an excellent deal - but newly released vehicles with those kinds of deals will be few and far between.
If you think about the current Sentra lease, you are just paying for the depreciation of the car over 36 months. It's like Nissan is saying here's a car, just pay the amount it depreciates every month and there's no interest involved. It's really just like 0% financing on a buy - except there's no hassle of having to sell the vehicle when you are done, and you only pay for the 3 years you use, keeping your monthly costs down and allowing you to use your money on other items.
With a lease, I can guarantee a brand new car every three years, and with the right deal not get ripped off. This logic of course works in the economy segment very well just because the purpose of these cars are all very similar and none of them are truly goign to win any enthusiast's heart over. Anyone buying in this range is simply looking for economical transportation - and spending large sums of money on a versa vs. a current sentra just doesn't seem very logial for this market. That being said, I can I can understand price being less of a factor as one moves up into luxury or sport territory as there is more 'personality' and differentiation to sway buyers.

[ZYAL8R808]

If you're looking short-term a lease looks more attractive. However, some people think that leasing to own is also better which is totally unture. Granted you'll pay more interest on a purchase but if you keep the car for 6-10 years it's almost always better to buy as opposed to leasing.

It does sound like leasing in your case is better as you stated.

[MaximaFan]

Absolutely, if you don't mind holding on to a car long term, buying makes sense. I of course get tired of cars after a year - so even a 3 year lease seems too long to me!

[FlightNurse]

I leased my Versa from NIssan, payments are $268/m that is including tax. That is with 1834 down (1700 for my car and 134 for regisration credit) my net Cap was $16,500, money Factor is .0012 this is for 24 months and 15K a year. Nissan is VERY generous regarding leases, you don't need a 720 FICO score to get my lease, all it takes is 620+ score...




Thanks for the response - it's much appreciated! Looks like the '06 Sentra Fully loaded is still a lot cheaper to get than the Versa Fully loaded. I know the Versa is a nice car - and I've been excited about it for a while, but I don't know how much justification there is in buying the Versa with a monthly payment that is 35% higher for a 24 month lease, and almost 50% higher on a 36 month lease. Nissan is practically giving 0% financing on the 06 Sentra leases even though the car has a crappy residual. A loaded new 06 with $0/down is $220/month over 36 months and $1500 in up front costs. Where as the Versa 24 month lease would be about $297/month, and the 36 month lease would be about $325/month all with about equivalent upfront costs. Maybe once Nissan starts giving incentives on the Versa will it be worth while. It's a shame - I really love the versa, but Nissan has priced itself out of this range since a fully loaded Honda Fit can be had in a 36 month lease for $249/month.

[FlightNurse]

You are correct, IF you keep a care for 6-10 yrs THEN buy the car, I myself keep cars 2-3 yrs tops... So why would I buy a car and have $800/m car payments when I can own the same car for very little out of my pocket and very little every month ?




If you're looking short-term a lease looks more attractive. However, some people think that leasing to own is also better which is totally unture. Granted you'll pay more interest on a purchase but if you keep the car for 6-10 years it's almost always better to buy as opposed to leasing.

It does sound like leasing in your case is better as you stated.

[brianmita]

I leased my Versa from NIssan, payments are $268/m that is including tax. That is with 1834 down (1700 for my car and 134 for regisration credit) my net Cap was $16,500, money Factor is .0012 this is for 24 months and 15K a year. Nissan is VERY generous regarding leases, you don't need a 720 FICO score to get my lease, all it takes is 620+ score...
t

that's a really reasonable lease! I wonder what the low end lease would look like, because that may the route I'm looking at when I look at it in the future.

Great to have you on the boards Tony! I think you're our first owner!

[FlightNurse]

SOrry been busy at with work and trying to stay cool.

What do you mean 'Low end lease" ?

SO far 907 miles and love it, I still can't beleive this is a "sub compact" car its drives like a bigger car..



t

that's a really reasonable lease! I wonder what the low end lease would look like, because that may the route I'm looking at when I look at it in the future.

Great to have you on the boards Tony! I think you're our first owner!

[brianmita]

I mean the lease for the base six speed with convenience package versus the SL CVT you got. There's a good 3000 difference between the two models, and I'd imagine it'd be good for a good $25 difference throughout the lease.

[wperdigon]

Don't forget about first-year bugs. Hopefully the Versa doesn't suffer the same fate as the 2004 Quest did.


or the first year spec v did -

i would say go with something that is already worked over - i know the sentra stying isn't the greatest - but, there are a lot more options out there for it -

[FlightNurse]

I mean the lease for the base six speed with convenience package versus the SL CVT you got. There's a good 3000 difference between the two models, and I'd imagine it'd be good for a good $25 difference throughout the lease.

Regarding the lease, the MF is the same for all 24 montn leases regardless of model, the Fleet manager showed me the paper work since she was busy I could scan all the figures myself..

Regarding leases, one should never lease the base model, the payments between the base model and the SL would be roughly 20/m difference and for what I have in my car its very easy to justify that amount.

The Resedual between the 6spd vs the CVT was 60% and 58% so not that much difference. I personally think in the next couple of years you well see that flip and the CVT will have a higher residual.

Regarding pics that is in the works, been working some crazy hours lately since people are taking vacations...

[MaximaFan]

Does anyone have an update on what the lease residual and MF are for the Versa Hatchback (CVT). Also it would be great if it is possible to get the same numbers for the 2007 Sentra (CVT) as well.

Thanks!
Matt