Can you explain some of these. I believe they are ways to increase the lease payment.

Inception fees:

Luxury tax is not longer applicable anywhere, correct?

MSRP adjustments:

Should the residual be based on the MSRP or the selling price?

I have heard that 15k leases are standard. Is this true?

The inception/acqusition fee is always charged, and if you roll it into the lease then it does make the payment go up. "They all do it" - no matter where you lease from. The fee some places charge is less or more than others.

Luxury tax is now completely gone, yeah!

The residual is a percentage of MSRP, not your lowest negotiated price. So the lower you deal down the price the lower your payment. The buyout price at the end of the lease will be the same.

I don't know what is "standard" - but most places offer 12k and 15k leases, some offer 10k (or less). Almost all will negotiate for a higher mileage lease if you need it. For a lease of the same term, higher mileage limit means a lower residual and a higher payment. The lower the allowed miles the higher the residual and the lower the payment. The money factor would be the same.

BTW, if you go over the allowed miles it can be expensive (if you turn the car in) - so be sure to get enough miles. Too bad if you do NOT use up all your miles they do not give you any money back when you turn the car in.

Dennis

Excellent answers.

-Tarry Shebesta
www.LeaseCompare.com Forum Moderator