Decisions decision.
#1
Decisions decision.
So I was close to leasing a G37 Sedan and I noticed the dealer had several 08's still So I asked for a lease quote on an 08. So basically the cars I identically configured, but the G37 Sedan woudl be $674 a month for 20K mlies and the G35 woudl be $481!! So Do I really think the G37 is worth almost $200 a month more? Yeah 7AT and 23 more HP, but do I need 23HP more? and the 7AT may save me maybe $300-$500 a year in gas if that.
#2
So I was close to leasing a G37 Sedan and I noticed the dealer had several 08's still So I asked for a lease quote on an 08. So basically the cars I identically configured, but the G37 Sedan woudl be $674 a month for 20K mlies and the G35 woudl be $481!! So Do I really think the G37 is worth almost $200 a month more? Yeah 7AT and 23 more HP, but do I need 23HP more? and the 7AT may save me maybe $300-$500 a year in gas if that.
#3
Not sure what the term of your lease is but if it's a typical +/- 36 month lease, you should have your dealer sharpen his pencil. $674 seems high to me. I leased my G37xS with nav and prem for over $100 less per month for 39 months, 15K miles per year. Perhaps also get a quote from another dealer if possible.
#4
#5
Not sure what the term of your lease is but if it's a typical +/- 36 month lease, you should have your dealer sharpen his pencil. $674 seems high to me. I leased my G37xS with nav and prem for over $100 less per month for 39 months, 15K miles per year. Perhaps also get a quote from another dealer if possible.
#6
Man that is being aggressive....56% residual on a car with 60k mile when a new model will most likely roll out prior to your lease term. Apparently they want to get stuck with on the back end (which is good for you).
I will say however that you are getting hosed on your money factor for the lease. Assuming your $674 includes the 6% sales and I back that out, your payment on the car is roughly $640. Based on $640, the residual amount, 36 mos. at $640 you are looking at an equivalent interest rate north of 7.6%, which is high if you ask me.
Basically they are covering their @ss on the high residual by making a killing on the interest.
I will say however that you are getting hosed on your money factor for the lease. Assuming your $674 includes the 6% sales and I back that out, your payment on the car is roughly $640. Based on $640, the residual amount, 36 mos. at $640 you are looking at an equivalent interest rate north of 7.6%, which is high if you ask me.
Basically they are covering their @ss on the high residual by making a killing on the interest.
#7
Leasing in general right now is bad. They're either going to get you on the residual/depreciation of they're going to try to make it up on the interest.
Correction buying or leasing a new car is bad right now as buyers of new cars are getting hammered on depreciation while leasers are either dealing with unfavorable residuals or money factors. You can get smoking deals on 2-3 yr old luxury cars right now as their values plummet.
I can't believe I just preached buying a used car.
Correction buying or leasing a new car is bad right now as buyers of new cars are getting hammered on depreciation while leasers are either dealing with unfavorable residuals or money factors. You can get smoking deals on 2-3 yr old luxury cars right now as their values plummet.
I can't believe I just preached buying a used car.
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#8
The G37 was with 20K miles and tire and wheel upgrade and sicne there were none in the state I beleive there was a $400 shipping charge to have it trucked into town. The G37 was basd on a $37526 selling price and 56% ($21229) residual on 36 months. 39 months woudl have been $661. and it included taxes of 6%.
$481 for 20k miles per year is a great deal. Go for it. Right now the lease rates aren't as good as they have been in the past.
#9
The G37 was with 20K miles and tire and wheel upgrade and sicne there were none in the state I beleive there was a $400 shipping charge to have it trucked into town. The G37 was basd on a $37526 selling price and 56% ($21229) residual on 36 months. 39 months woudl have been $661. and it included taxes of 6%.
I don't want to sound condescending at all so please don't take it that way but here's a partial copy of an email I sent to a dealer that was intended to nail down the details and try to close them on where I wanted to be in the deal:
Here's a scenario that I created based on figures from building the car on the web as well as using a lease calculator from LeaseGuide. Clearly there are some unverified assumptions involved.
MSRP - $42115
Cap Cost - $39115
Residual - 58%
Money Factor - .00263
Term - 39 Months
Payment w/tax - $570.92
This is where I would like to be on a G37xS. Perhaps you folks could get these or similar numbers to work on the Blue Slate that is incoming?
Ask the dealer for all these details in writing or email.
LeaseGuide.com is a great tool. Use it.
I might have a bit of an advantage when working with dealers in that I was a Business Analyst implementing and customizing F&I and Sales software at dealerships in the mid `90s for four years. Certainly am not a pro but the background helped.
Am all ears if you have other questions etc.
#10
I think you might be getting hosed on the money factor. My selling price was $39K on a $42K car. Ask the dealer for all the specifics of the deal and perhaps I/we can help determine where the discrepancy is.
I don't want to sound condescending at all so please don't take it that way but here's a partial copy of an email I sent to a dealer that was intended to nail down the details and try to close them on where I wanted to be in the deal:
Here's a scenario that I created based on figures from building the car on the web as well as using a lease calculator from LeaseGuide. Clearly there are some unverified assumptions involved.
MSRP - $42115
Cap Cost - $39115
Residual - 58%
Money Factor - .00263
Term - 39 Months
Payment w/tax - $570.92
This is where I would like to be on a G37xS. Perhaps you folks could get these or similar numbers to work on the Blue Slate that is incoming?
Ask the dealer for all these details in writing or email.
LeaseGuide.com is a great tool. Use it.
I might have a bit of an advantage when working with dealers in that I was a Business Analyst implementing and customizing F&I and Sales software at dealerships in the mid `90s for four years. Certainly am not a pro but the background helped.
Am all ears if you have other questions etc.
I don't want to sound condescending at all so please don't take it that way but here's a partial copy of an email I sent to a dealer that was intended to nail down the details and try to close them on where I wanted to be in the deal:
Here's a scenario that I created based on figures from building the car on the web as well as using a lease calculator from LeaseGuide. Clearly there are some unverified assumptions involved.
MSRP - $42115
Cap Cost - $39115
Residual - 58%
Money Factor - .00263
Term - 39 Months
Payment w/tax - $570.92
This is where I would like to be on a G37xS. Perhaps you folks could get these or similar numbers to work on the Blue Slate that is incoming?
Ask the dealer for all these details in writing or email.
LeaseGuide.com is a great tool. Use it.
I might have a bit of an advantage when working with dealers in that I was a Business Analyst implementing and customizing F&I and Sales software at dealerships in the mid `90s for four years. Certainly am not a pro but the background helped.
Am all ears if you have other questions etc.
Last edited by trey100; 01-19-2009 at 07:57 PM.
#11
Yup, agreed, Trey.
And, 20K per year will obviously increase the cost per month.
For the record, the numbers I quoted above are essentially the numbers I executed at signing. A few hundred dollars off MSRP doesn't cut it. Maybe I was lucky but I got $3K off MSRP.
Leasecompare.com is/was a good resource also. After the recent financial meltdown the rates I have seen on the site are way out of line or just reflective of the recent conservative lending practices. A year ago you could get a pretty good sense of the lease rates/payments on this site. My local Inifiniti dealer appeared to have had the most competitive rates. Perhaps being a repeat buyer helped? I don't know. Again, I am no pro. Didn't have the time research every angle ad nauseaum.
And, 20K per year will obviously increase the cost per month.
For the record, the numbers I quoted above are essentially the numbers I executed at signing. A few hundred dollars off MSRP doesn't cut it. Maybe I was lucky but I got $3K off MSRP.
Leasecompare.com is/was a good resource also. After the recent financial meltdown the rates I have seen on the site are way out of line or just reflective of the recent conservative lending practices. A year ago you could get a pretty good sense of the lease rates/payments on this site. My local Inifiniti dealer appeared to have had the most competitive rates. Perhaps being a repeat buyer helped? I don't know. Again, I am no pro. Didn't have the time research every angle ad nauseaum.
#12
Yup, agreed, Trey.
And, 20K per year will obviously increase the cost per month.
For the record, the numbers I quoted above are essentially the numbers I executed at signing. A few hundred dollars off MSRP doesn't cut it. Maybe I was lucky but I got $3K off MSRP.
Leasecompare.com is/was a good resource also. After the recent financial meltdown the rates I have seen on the site are way out of line or just reflective of the recent conservative lending practices. A year ago you could get a pretty good sense of the lease rates/payments on this site. My local Inifiniti dealer appeared to have had the most competitive rates. Perhaps being a repeat buyer helped? I don't know. Again, I am no pro. Didn't have the time research every angle ad nauseaum.
And, 20K per year will obviously increase the cost per month.
For the record, the numbers I quoted above are essentially the numbers I executed at signing. A few hundred dollars off MSRP doesn't cut it. Maybe I was lucky but I got $3K off MSRP.
Leasecompare.com is/was a good resource also. After the recent financial meltdown the rates I have seen on the site are way out of line or just reflective of the recent conservative lending practices. A year ago you could get a pretty good sense of the lease rates/payments on this site. My local Inifiniti dealer appeared to have had the most competitive rates. Perhaps being a repeat buyer helped? I don't know. Again, I am no pro. Didn't have the time research every angle ad nauseaum.
#13
The money factor minimum is apparently set by Infiniti but I believe the dealer can adjust it up if they want to. I can attest to this because I just took one in my nether-regions by signing an Infiniti 39mo lease (15K mi) on a G37 6MT last month with a 56% residual and money factor equivalent to over 8%APR. I have a credit score over 790 so that wasn't a factor. Me being stupid was the primary contributor.
#14
The money factor minimum is apparently set by Infiniti but I believe the dealer can adjust it up if they want to. I can attest to this because I just took one in my nether-regions by signing an Infiniti 39mo lease (15K mi) on a G37 6MT last month with a 56% residual and money factor equivalent to over 8%APR. I have a credit score over 790 so that wasn't a factor. Me being stupid was the primary contributor.
December's 24 month Rate was .00325 (7.8%). The 36 month should have been .00275 (6.6%). The Residual though for 36 months was 58%. I'd file a complaint - I didn't think they could change the residual. Then again, I don't know what the 39 months rates were, so you might have been charged what Infiniti set as the rates.
#15
The residuals are set by Infiniti, the money factors are typically marked up and can be negotiated. They have a "buy" rate that is what the lender charges them, the difference is profit. All dealers play this game.
The "estimated" invoice from Edmunds or KBB.com can give you some insight as to the room they have in the car. I cannot imagine that in this day and time they would let a prospective buyer walk out the door without trying to make the deal more attractive.
One final thought, don't go for 20k miles on a lease, you are taking an immediate hit up front (residual is effected). If you get 20k per year and do not use it you are leaving money on the table. Plus, the warranty expires prior to the mileage cap. If the warranty is 50k miles you are driving without a warranty for 10k miles. That would make me uncomfortable.
Good Luck
The "estimated" invoice from Edmunds or KBB.com can give you some insight as to the room they have in the car. I cannot imagine that in this day and time they would let a prospective buyer walk out the door without trying to make the deal more attractive.
One final thought, don't go for 20k miles on a lease, you are taking an immediate hit up front (residual is effected). If you get 20k per year and do not use it you are leaving money on the table. Plus, the warranty expires prior to the mileage cap. If the warranty is 50k miles you are driving without a warranty for 10k miles. That would make me uncomfortable.
Good Luck