Hey Guys

I’m pretty new to the leasing game as this is my first car I’ve driven in this matter.

I received my first “reply-to” reminder mail from IFS in regards to asking what I plan on doing at the end of my 24 mth lease.

Checking my lease contract my residual/buyout is like $30k (ouch). I’m not sure if that even includes taxes? I really enjoy the car, have taken good care of it and would love to keep her but its going to be an uphill battle next year as I’ll be forking up a ton of dough for my wedding.

I’ve considered walking away but feel really stuck as I’ve already coughed up over $20k for the lease but if worse comes to worse guess I will have no choice.

I have done some initial searches around forums about leasing and negotiating the residual is really sounding like a snowball’s chance in hell with IFS. Is there any other way to get the purchase price of the vehicle down? What kind of loyalty purchase financing rate should I be expecting?

BTW just in case it makes any difference I’m located in BC, Canada and have a 24 month pre-paid lease (no monthly payments) end-of-lease June 2009.

 

i would get rid of it, in the end it will cost more than the car is worth get another G.

 

$20K over 24 months...wow, thats like $800 a month?!? Holy hell thats a lot of cash. Just take over a lease. Here is a similar car for about $500 a month.
http://www.leasebusters.com/en/details.asp?ID=49385

 

Buyout does not include tax.

Getting another new G will be cheaper for you in every way possible.

 

Hahaha, first I was like "what" residual is 30k! then I read that you are in Canada. Where the base MSRP for G37 sport is what, 51k? compare to 37k for it in USA.

 

Lease down-payments and monthly payments are sunk cost. All that matters at the end is if your buy-out is worth the money (and no, the $30K won't include GST+PST).

$30K seems really high for residual, so I'd walk away and get yourself a new lease.

BTW, why prepay your lease payments? I did a $0 down 48 month lease on my '06 G for $600/mo+tax. You can get good deals if you shop around and know how to negotiate a lease.

 

pre-paying your lease can (and will) get you a lower total cost for the lease.

To do this, you must pay the ENTIRE lease up front.

 

That may be the case, but to me it defeats the purpose of the lease.



Also, based on the #s provided he's not getting a very good deal.

 

I'd have to agree... he overpaid...

Keep in mind, however, that he did get his lease right when the 07 first came out. New models always go at a premium, and the lease rates were WAY WAY higher back then, than they are now. (0.00285+)

 

Mike, how does that work? Do you just pay the "depreciation" with $0 for the "interest" part? If so, it could be a pretty good deal on cars with high MF.

 

the MF is simply reduced a bit.

 

Yeah we always get totally hosed on the price up here...its a joke compared to the US. For some reason I thought the buyout was always negotiable and was going to approach them as to what the exact same car is currently worth on the US market compared to Canada.

Looks like this is gonna be a really expensive learning experience. I could buy a house in Vegas for the amount of $$$ I've pissed away on vehicles I tell ya :P

Last time I'll ever lease a vehicle. I'd rather walk away and buy like a loaded Sonata for $20k outright at this point.