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Smart Shopper Smart Shopper-Archives Lease Questions - Ask Here 
23872 messages, Last post on Sep 20, 2005 at 8:08 AM
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Is there such a thing for a secondary vehicle? Something that wouldn't be used as a daily driver, etc. And if there is, is there any benefit to it? I'm thinking something along the lines of 3000-5000 miles per year. Thoughts? |
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So, now the car is out, is it possible to track down the following money factors and residuals: 3 year and 4 year 12K miles and 15K miles Also, will the "many security deposits" rules apply? Thanks in advance for any info you can track down! |
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Hi lucky9. This "lease to own" program that the salesperson who you are working with described really is not anything more than Nissan's normal lease program. Consumers always have the option to purchase their leased vehicles at the end of their deal. In fact, putting $5,000 down when you plan to purchase the vehicle that you are leasing is a very bad idea. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for this Pathfinder would be exactly the same, regardless of whether you had put $5,000 down, or had made absolutely no down payment at all. The only advantage to leasing and then purchasing at the end would be that the only sort of incentive that Nissan has on the 2005 Pathfinder right now is some lease support. If you were to lease the right model for the right term, you could take advantage of its special lease money factors as low as .00139. This is equivalent to an interest rate of around 3.33%. Then at the end of three years, or however long you lease for, you would have the option to purchase your Pathfinder or walk away from it without paying a dime if you decide that you don't like it or it has been in an accident (of course as long as it has been repaired properly). So as you can see, there's nothing wrong with leasing with the intention to buy at the end of your term, its just that this isn't some sort of unusual program and you should not make a large down payment. Car_man Host Smart Shopper Forum |
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Greetings jaybee85. It is difficult for me to say how much room there is for negotiation in the Accord lease that your local Honda dealer is advertising without knowing the full MSRP and selling price that it is based upon. If you let me know these numbers, we can try to figure out how much lower you might be able to get them on the selling price of this car. As far as its residual value goes, the higher it is the better it is for you. This is because lease payments are made up of two main components, the interest portion and the depreciation portion. The more your vehicle is worth at the end of your lease, the less depreciation you have to pay, and the lower your lease payment will be. Sure, a high residual value will make it expensive for you to purchase your vehicle at lease-end, but you always have the option to just walk away from your car if you feel as though its purchase price is too high. Honda's current special lease program on the Accord is scheduled to run through May 2nd. It is difficult to say what its lease program will be like on this car after that date, but there certainly is no guarantee that its May lease program will be worse than its current one. On the contrary, since Accord sales have been fairly soft lately, it is entirely possible that Honda would have to enhance its lease program on this car next month. I don't know that this will definitely happen, but the salesperson who you are working with does not know that the Accord's lease program will be worse either. At this point, I would say that both scenarios are equally as likely. Car_man Host Smart Shopper Forum
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Hello buy_lease. If I am not mistaken, Toyota's Gulf States region, where Texas resides, it a distributorship. much like its Southeast region. As a result, Toyota's lease program is often different there than it is in the rest of the country. Unfortunately, I have not seen its current lease money factors for the Sequoia in that area. Sorry that I can not be of more help with that model. I can give you an idea of what Honda's current lease program is like on the Pilot though. According to the latest information that I have seen, if you were to lease a 2005 Honda Pilot Honda Pilot EX-L without navigation or the rear entertainment system through American Honda Finance Corp. right now for 3 years with 15,000 miles per, its base lease money factor and residual value should be .00154 and 58%, respectively. Its residual value for an otherwise identical lease with only 12,000 miles per year would be 2% higher. Car_man Host Smart Shopper Forum |
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No problem, jdg345. Ha I completely understand what you're saying about the MINI not being allowed, I'm married as well  . That's way I'm driving an automatic sedan instead of a coupe with a stick. Car_man Host Smart Shopper Forum |
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Hi Arthur. I will work up a sample lease payment on this car for you and see what I come up with. According to my calculations, if you were to lease a 2005 Infiniti G35 Coupe with an MSRP of $35,610 and a selling price of $33,409 through Infiniti Financial Services right now for 36 months with 12,000 mile sper year, your zero down, pre-tax monthly payment should be around $444. At lease signing with this deal, you would have to pay your car's first month's payment, a security deposit of $450, IFS' acquisition fee of $550, and any required state taxes or fees. I arrived at this payment using IFS' base lease money factor of .00215 and a residual value of 61%. The factor that you were quoted for this car is different than the one that I have seen. Is this lease through an independent bank? Car_man Host Smart Shopper Forum |
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Help is on the way, zhangtao9703. Actually, this post sounds awfully familiar. I believe that I already answered this question yesterday. Let me know if you can't find my response and I will be more than happy to answer any questions that you have again. Thanks. Car_man Host Smart Shopper Forum |
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Hi Bonnie. As far as this car's selling price goes, $400 over invoice for a 2005 Infiniti G35 Coupe is a very good deal. The money factor that you were quoted is right in line with Infiniti Financial Services' published lease money factor for this car. That is also a good sign. The acquisition fee of $795 is a little higher than IFS' base fee though, unless you live in New York or Rhode Island. I would be more than happy to calculate a sample lease program on this car for you, using IFS' actual lease program if you let me know how long you are leasing it for and how many miles per year you need to be bale to drive it. Car_man Host Smart Shopper Forum
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Thanks for the additional information, sharkala. OK, according to my calculations, if you were to lease a 2005 Nissan Xterra SE 4WD with an MSRP of $29,500 and a selling price of $27,000 through Nissan Motor Acceptance Corp. right now for 3 years with 12,000 miles per, its zero down, pre-tax monthly payment should be around $410. If you were to make a $1,000 capitalized cost reduction on this vehicle, which is not in our best interest to do, it would reduce the monthly payment for an otherwise identical lease to around $380. Car_man Host Smart Shopper Forum |
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