For those ppl who leased...
#1
For those ppl who leased...
One of my friend is thinking of getting 2004 G35 C, black on Black, 6MT. He went to few different dealers in Toronto areas and out of Toronto The best deal he got was $6500 CDN down payment, $700/mth for 48 moths (including taxes). Wondering if that is a good deal on his lease????
<font color=blue>Original G35 Coupe 6MT, Black on Black</font color=blue>
[img]/w3timages/icons/wink.gif[/img]
<font color=blue>Original G35 Coupe 6MT, Black on Black</font color=blue>
[img]/w3timages/icons/wink.gif[/img]
#2
Re: For those ppl who leased...
That sounds expensive to me. That works out to $40 K over 4 yrs. If your friend bought it, then traded it in after 4 yrs, there is no way in hell he'd lose $40 K in depreciation w/ such a popular car like the G35c.
Let's say he bought a 04, including taxes & interest, $55 K out the door. He trades it in after 4 yrs, he'd lose $30 K at the most. In essence, that lease scenario is tantamount to paying an extra $10 K.
BTW, I did not lease.
Let's say he bought a 04, including taxes & interest, $55 K out the door. He trades it in after 4 yrs, he'd lose $30 K at the most. In essence, that lease scenario is tantamount to paying an extra $10 K.
BTW, I did not lease.
#3
#4
Re: For those ppl who leased...
That's the problem when we try to compare leasing deal. I lease my cars but I always negociate on the basis of a purchase price. That way, I'm sure that I'm having or not a good deal.
After I have a purchase price, I make the calculation to know what will be my monthly payments just to double check that the dealer is not fooling me.
It's the easiest way to know if it's a good deal.
After I have a purchase price, I make the calculation to know what will be my monthly payments just to double check that the dealer is not fooling me.
It's the easiest way to know if it's a good deal.
#5
Re: For those ppl who leased...
But w/ leasing, you still run into the problem of residual values. For example, I find the residual values are often much lower than what the car ends up being worth after the term of the lease.
Let's say you negotiated $5 000 (best case scenario) off the purchase price. G35c w/ nav is about $50 K - $5 K = $45 K. The 4 yr cost of this lease, based on the current given residual value & interest charges, even assuming a $5 000 off the purchase price, is still $35 000.
Consider that the avg car loses half its value in 4 yrs. The G35c is supposed to be one of the best at retaining value according to several lease guides. At worst, it'd lose half its value in 5 yrs.
The IS300 is considered to have one of the shabbiest resale record among luxury sport sedans. New, when it debuted, loaded msrp was close to the G35c loaded msrp. Based on Black Book trade-in values, after 4 yrs, it lose about $30 K (accounting for taxes but not accounting for interest on the purchase price). Let's assume the interest on the purchase price amounted to a whooping $5 K. So, after 4 yrs & 80 000 km, it lost $35 K in value. The G35c, at worst, would lose $30 K in value, not the $40 K the dealer wants or the $35 K assuming the $5 K discount (unlikely).
The residual values are set low as to ensure that even if the car sells slower than expected, they will have rented out the car to you for more than how it really did depreciate. Of course, if you buy it outright at the end of lease, it's a moot point.
Let's say you negotiated $5 000 (best case scenario) off the purchase price. G35c w/ nav is about $50 K - $5 K = $45 K. The 4 yr cost of this lease, based on the current given residual value & interest charges, even assuming a $5 000 off the purchase price, is still $35 000.
Consider that the avg car loses half its value in 4 yrs. The G35c is supposed to be one of the best at retaining value according to several lease guides. At worst, it'd lose half its value in 5 yrs.
The IS300 is considered to have one of the shabbiest resale record among luxury sport sedans. New, when it debuted, loaded msrp was close to the G35c loaded msrp. Based on Black Book trade-in values, after 4 yrs, it lose about $30 K (accounting for taxes but not accounting for interest on the purchase price). Let's assume the interest on the purchase price amounted to a whooping $5 K. So, after 4 yrs & 80 000 km, it lost $35 K in value. The G35c, at worst, would lose $30 K in value, not the $40 K the dealer wants or the $35 K assuming the $5 K discount (unlikely).
The residual values are set low as to ensure that even if the car sells slower than expected, they will have rented out the car to you for more than how it really did depreciate. Of course, if you buy it outright at the end of lease, it's a moot point.
#6
Re: For those ppl who leased...
Yes, I agree with you that the residual value is often under the real value. But if you want to know if you had a good deal, it's independant of the residual value cause it's set in advance and that's not a number you can négociate.
What you are talking about is when comparing two different cars and as you mentionned, if you realize that you're resale value is under the price you can get, you can always buy the car back.
What you are talking about is when comparing two different cars and as you mentionned, if you realize that you're resale value is under the price you can get, you can always buy the car back.
#7
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#8
Re: For those ppl who leased...
My friend leasing is one thing, purchasing a vehicle is another. You must compare apples with apples. Of course the best thing one can do is purchase a vehicle. However most consumers do not have $50,000+ cash to invest in to a car. The gentlemen is asking whether the lease figures are fair, you on the other hand are indicating something else. Sure when u lease the G35c or any other vehicle you would end up paying for more than half the vehicle within a 3-4 year lease.
#9
#11
Re: For those ppl who leased...
I'm a little confused on the remarks I get cause I was trying to help too. Leasing and buying is not so different. My accountant asks me to lease my car cause the tax deduction I get overcome what I'd saved if i was buying.
In my case, the calculus is simple. My car cost me $42100 (it's the sedan). I lease the car for two years. Infiniti set the residual value at the end of the contract to be 26500. Since I paid all the installments in one shot at the signature, it's simple to calculate cause there no interest rate involved. It costs me $15600 (42100-26500) to have the car for 2 years. At the end of the contract, I can buy back my car for $26500 and that's guaranteed by the contract.
I agree that the real value of the car will surely be higher than 26500 so I will probably buy back the car.
In my case, the calculus is simple. My car cost me $42100 (it's the sedan). I lease the car for two years. Infiniti set the residual value at the end of the contract to be 26500. Since I paid all the installments in one shot at the signature, it's simple to calculate cause there no interest rate involved. It costs me $15600 (42100-26500) to have the car for 2 years. At the end of the contract, I can buy back my car for $26500 and that's guaranteed by the contract.
I agree that the real value of the car will surely be higher than 26500 so I will probably buy back the car.
#12
Re: For those ppl who leased...
I agree with J_P,
Purchasing makes more sense to people keeping the car around for 5-6 years or more since at least you get some equity back out of it where in lease you only pay for the depreciation which is usually set higher by the car companies to make more money off the leases.
One thing is pretty simple with leasing though, you usually get more car for what you pay on a monthly basis but you will have to pay constantly and move from one lease to another without any equity.
I think at least one owned car is always a good idea in a household since parents can pass it on to their teenagers later on as training/first car. :-)
Purchasing makes more sense to people keeping the car around for 5-6 years or more since at least you get some equity back out of it where in lease you only pay for the depreciation which is usually set higher by the car companies to make more money off the leases.
One thing is pretty simple with leasing though, you usually get more car for what you pay on a monthly basis but you will have to pay constantly and move from one lease to another without any equity.
I think at least one owned car is always a good idea in a household since parents can pass it on to their teenagers later on as training/first car. :-)
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