Here is my Deal:

G35 Coupe 6 speed black on black

trade in 04 honda accord v6 15,700 miles

$17,000 they are giving me for the Honda
i owe about $12,900 on the car

$35,517 for G35
$1500 Down cash
24 month lease
$380 a month
12,000 Miles a year

I am planning on buying the car when the lease is over but i can't afford to buy it right know. Do you think i am getting a good deal or do you think i can do better maybe get more for the Honda?? Any comments or suggestions help. Thank you in advance!

 

Seems like you might be getting roughed up on the deal, but it's hard to know for sure without knowing the complete details of the lease (money factor, residual value). I can tell you my details for comparison purposes, though:

MSRP of $39,600 - Negotiated Cost of $35,800
24 Month Lease
20,000 Miles per year
69% residual value
Acquisition fee of $550 down only, no other cash out of pocket.
No trade-in.
Payment = $540/mo for 24 months

Granted, my payment is $160/mo higher than yours, but over the term of the lease that's only $3,840- and in order for you to get your payment to that lower level you're giving them a $4,100 that is held in the value of your Accord, putting $1500 cash down at signing, and agreeing to drive only 12k miles per year.

If you can get me the residual value and money-factor your dealer is using to calculate your quote I can tell you with more certainty if you should fight for me- your geographic location can have a good deal to do with the variations in pricing, as well. I'm in Boston, MA.

-Josh

 

Is 35517 the MSRP or its final negotiated price? is 380 include the sale's tax? and what is your sale's tax rate?

 

I know this is prob not the best time to be asking but what is residual value and money factor??

 

Alright- big red flag there. Leasing can be very dangerous to an uneducated consumer- that's why when the topic of leasing comes up you always have a few guys that chime in and talk about how worthless it is, telling everyone leasing that they're throwing their money away...

The basics: the residual value is shown as a percentage of the MSRP of the car that it will be worth at the end of your lease. My MSRP, for example, was $39,600- my residual value is 69% or $27,324. Your lease payment is made up of two components, essentially- the depreciation is part one. The thing is, the depreciation you pay is calculated as the different between the residual value and your actual purchase price, not the MSRP. In my example, the cost of depreciation on my car is $35,800 - $27,324, or $8,476. That number gets divided across 24 months, so $353.16/mo.

The second component of your monthly payment is the interest you're charged on the lease, commonly called the Money Factor. The money factor is a decimal expression of a percentage rate; mine was .0022, which is 5.28%. This is a complex calculation, but in this example it is roughly $140/mo.

Add those two together and you get $493.16, and you also realize that I roughed up my figures enough that I didn't arrive at my actual lease payment. I've got a lease calculator spreadsheet that might help you if you're interested, but what you really need to do is make sure you understand the components of leasing. Check out http://www.leaseguide.com/ it's a good resource that should help clear up any confusion you've got on the matter.

Good luck- let us know if you have any other questions. Just don't go and agree to any lease numbers without being absolutely sure you understand everything you're agreeing too.

-Josh

 

looks like money is tight. just keep the honda and wait till you have more money saved up. once the new G comes out the old Gs will be cheaper.

 

OK i i know the answer to that i just didn't know what it was called. The residual value as i was told will be 22,000. give or take. I will be meeting with him tomarrow to find out exactly what it is. I will not sign anything unless i feel totally comfortable with everything.. Thank you soo much for all the advise guys i really appreciate it. I am not some young kid that doesn't knowanything i am just not a person who leases i usually buy but just don't have the money to put down at the moment. which is why the lease came up! anything else you guys could think of would be helpful like i said i am going tom april 4th and i just want to have my facts correct.

 

Well, My question would be how would you tell if you are comfortable with the deal? you have no idea what is the going rate of residual vaule or at what percentage of interest rate you could qualify at, what is the MSRP of the car you going to lease? and what are the fees involved in your lease. While 380 a mos sounds pretty good to you, but are you feel comfortable with that number?... to me so far? the numbers just dont quite add up, 22k residual for 2 years lease? thats ony around 62~64%...my advice would be, taken donw all the specific numbers exactly when you go to dealership, and come back post them here, so someone here can better judge what kind of deal you've got, but some how I got a feeling that dealership would not tell you exactly what your deal involves, cus the less they tell you? the more money they could get from you.

 

Ok just got back from the dealer and here are the numbers that i got you guys.

MSRP $37,730
24 Month Lease
70% Residual Value
1.71 Money Factor

all other fees are included with my down payment of the car i am turning in and the 1300 down payment..(which changed because i got him to give me 200 more for my car.) Yes i know that is not a lot butit is something.

gap insurance is included

so what do you think is this a good deal or should i shop around and wait. i know it is going to be tough to negotaite anything with it being spring time. the only reason i do not want to wait is because i put a lot of miles on my car going to work so i want to be able to get what i am getting for my car. Thanks in advance for your advise!! and for all your help!

 

couple of questions, one, is the payment still 380 inculdes sales tax? two, what are the fees, normally there is acquisition fee of anywhere from 495 to 795 and usual DMV fees around 350 plus first payment, so you'd be looking at about 1500, you put down 5400, so about 3900 actually is going toward the cap reduction(down payment) If that is true? than the 380 per months dont quite add up with the numbers you provide...

MSRP of 37730
negotiated price 35517
Cash down of 3900
70% Residual Value
1.71 Money Factor(4.104%)

the payment should have be 316 plus tax for 24 months

Couple things to consider, there is question of exactness of cash toward cap reductions, cus there is usually sale tax to be subtract from the cash down, example, if your sales tax rate is 6%? then they would have to take out 234 from 3900 for sales tax, besides the exact amount of the fees. Second, the sale price could be lower than 35517, cus the invoice on that car probably is 34500, so I did say 35000 would be "fair" price, but your residual and M/F are pretty good.

Other things kind of concerns me a bit from reading your post, one is that you said you cant really afford to "buy it right now" but then you are willing to shell out 1300 cash plus your trade-ins, I would pull some of those money back from the table, and save them somewhere, cus if you ever do have some money issues down the road? you will have some cash to pay the payments to tie you over of couple three months untill you get back on track, (I said that becasue I dont really know your situations, not to meant any disrespect to you), Second, from this
Now if you drive alot? be sure to factor that into your lease contact, like 15k or 20k per year, they either bump you residual down 2~4% or have you pay 10 cents per mile over 12k, Its cheaper to prepaid for mileage if you knew how much you going to drive it, cus at end of lease? you might have to pay 15~25 cents per mile over 12k per year.

 

[QUOTE=limeg35]couple of questions, one, is the payment still 380 inculdes sales tax? two, what are the fees, normally there is acquisition fee of anywhere from 495 to 795 and usual DMV fees around 350 plus first payment, so you'd be looking at about 1500, you put down 5400, so about 3900 actually is going toward the cap reduction(down payment) If that is true? than the 380 per months dont quite add up with the numbers you provide...

MSRP of 37730
negotiated price 35517
Cash down of 3900
70% Residual Value
1.71 Money Factor(4.104%)

the payment should have be 316 plus tax for 24 months

No the payments are not $380 sorry i forgot to include that they are at 345 including tax. all the fees were included in the price so 968.30 sales tax, $85.00 licence fee $595 Doc Fee. and the advance payment for the first month. i think i got myself a pretty good deal. and as for the money i work in the restaurant industry where money fluctuates due to season. But i am coming up to the beggining of the busy season which will mean more money i can put away for a rainy day. Plus the money i am putting down was for modifications on the accord. and i know you say save it for modifications on the g35, but i don't think i will be doing to many modifications to this car. going to keep it stock for awhile. i have to give this guy a call today to give my final answer. Do you think it is a good choice or should i forget about it. THank you again for all your help it is really appreciated and very helpful! if we ever meet i will def buy a round or 2!!!!

 

The deal on the new lease looks pretty good, high residual and low M/F, couple things to think about tho, I know this might be bit late but, you probably could get more for your trade-ins, I just did a quick check with KBB? not sure what kind of options you have on it, the 04 V6 coupe with leather(I assume) the tread in vaule on is 18500 for "good" condtions, so you could get extra 1~1.5k for your trade-ins, so I would sugeest that you counter offer them with no more money out off your pocket just the trade-in for the same monthly payment, and also you could get that car for about 4~700 bucks less, which that would lower the payment about 22~28 bucks less.

Other thing is that, are you sure you only want to get 24 months lease? cus you already paying the "bank fee" why not make it bit longer term? when the lease is up, you have to come up other set of down payment and fees again. and to add other year to the term? the monthly payment isnt going to be more than 10~15 bucks per month, of course with same M/F and 60% residual...either way you decide, just remember its your DEAL, as long as you are comfortable with it? then its all good...Good Luck!

 

Limeg35 Thank you soo much for all your help on this whole leasing thing. It was a bit confusing for me in the beggining and your advise helped me out a lot. I was able to talk with the seller and get a little more for my car 17,900 and only had to put about 500 down which helps me out a lot. I went with the two year deal because i didn't like the deal i would have gotten with a three year deal. I get the car on Thursday and i can't wait to drive it home. I saw it all wrapped up when i went to the dealer and it looked like a big old present.....LOL....anyway thank you soo much for your help and i will try and post pics when i pick it up....Ciao

 

Nonono, dont just try...DO IT...lol...pic or ban ...Glad you find my post was helpful, and congrats on your new car.