Novice

I put down a deposit two weeks ago to get a 2004 TL/Auto/Nav. I was planning on leasing one (42 months/12,000 mi). The residual on the above vehicle was 57% last month. I just found out it is 54% now! How much fluctuation of the residual should I expect in the near future? Any comments would be greatly appreciated.

mitchdeerfield

Ain't life the sh*ts?

HacksawHilliard

Not exactly sure how residuals are calculated but I do know that dealers have the ability to work the numbers. For example, When I leased a 1997 RL, the first payment schedule they gave me was over $770/month. By the time I accepted the deal, they had the payment down to $450/month WITHOUT any additional money down.

Novice

Thanks! I wish I can predict what the residual is going to be in Feb. If it goes back up to 57%, I think it is worth waiting another month (I probably won't get my car until Feb. anyway!!).

automophile

Actually, the dealers CANNOT adjust the residual - this is set by the lenders because the dealers were quoting them TOO high to make deals, and the lenders got screwed at the end of the lease when they couldn't sell the cars for enough to cover the residual.

However, the dealers CAN quote ANY interest rate or money factor (for leases) that they want, as long as it is above the minimum.

This is how they can change the payments without changing the cost of the car or the down. Delaers have been known to add as much as 8-10% to an interest rate!!!!!!!

You must be VERY careful about this and get the best rate (depending on your FICO credit score) quoted to you by at least 2 dealers.

When we tried to buy our TSX from the Acura dealer in Van Nuys, CA, they finally agreed to our price. but then jacked up the interest rate to be sure that they still made the same profit. Glad that we walked.

jimthegreek

the lease residual goes down as the car gets older... thats why you always want to lease the car the newer it is and always buy the previous models year vehicle at their year end sale, because they want to push them and get them out of the way....

Never never lease a vehicle in the summer time.... biggest mistake people make...

Novice

Thanks very much for your replies. Am I overdoing it by asking for below 3.9% (hopefully 2.9%)? I have the FICO score above 785?!

rets

Don't know about how to calculate it. But is that the refundable deposit?

If so, you always can get it back and re-negotiate the new deal, which means the dealer should give you the new deal by the time the new rate is applied if the deposit is not guaranteed for them.

ndabunka

Lease rates work off of factors, not normal interest rates (although there is a relation it can be difficult to identify easily). Yes, 785 should get you the lowest rate but I think that's around 3.99 nowadays (Was 2.99 for a short time at the end of '03).

Novice

Makes me wonder..... All the threads about the problems with vibration, etc. (lot more so than 2003 Accords when they first came out-I am a cheap guy:p )+the residuals going down..... Should I wait another 8 months also and get a 2005 TL?! Maybe Acura will do better market research this time and make more Navi models?

ragin

Or better yet, they make a decent looking non-nav display for the 05.

rets

Pretty good idea.

TorTLS

I am in the same boat ordered the car and since the residual has dropped by $440.00-spoke to the dealer today as I get the car next week and he told not to worry I was protected and would the residual value as per the day it was ordered.