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Prices Paid: Buying & Leasing Experiences Infiniti G35 G37 Prices Paid and Buying Experience
6205 messages, Last post on Jul 23, 2008 at 7:45 PM
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Replying to: brodway (May 13, 2008 8:16 pm) If the deal is $450 over invoice, then by my numbers the net cap cost would be $37235 for a car with an MSRP of $40175 and an invoice of $36785 with a monthly payment of $521.07 and an upfront cost of $1232 w/o the first month's payment or $1722 with the first month's payment.
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Replying to: mpkrasner (May 14, 2008 12:32 pm) Re-running the numbers you provided, specifically 450 over invoice is coming out at $488.70 which puts you right at that same $489 per month. So overall a solid deal. |
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Replying to: brodway (May 14, 2008 8:47 am) |
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Replying to: brodway (May 14, 2008 8:38 am)
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Replying to: stkntraffic (May 14, 2008 6:42 pm)
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Replying to: brodway (May 14, 2008 7:11 pm) Like you, *I* have always heard MSDs come back while cap cost reduction would be lost but I would want to make sure someone at IFS put it in writing somewhere that they would bill your insurance for full value and once paid return all of your MSD money (assuming you insurance paid out enough). Just something else to think about. Dennis
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Replying to: dwynne (May 14, 2008 8:00 pm)
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Replying to: brodway (May 14, 2008 8:21 pm)  . If you have put down $3k in MSDs and your car is stolen or totalled what IFS said they would do (as told to a forum member) is take the $3k off off the amount due for the current value of the car and then expect the balance to be paid by the insurance company. The insurance company is happy to pay less than the market value of the car, if that is the case. So if at the time the car was lost if you added up residual plus unpaid principle and interest and you got $30k. They would then expect $27k from the insurance and you would be out your MSD money. If your insurance will not pay $27k, saying current value of the car is less, then you are out $3k MSD and whatever else you owe (this is not likely). If you paid the $3k up front the IFS would ask for the amount due and you would be out our cap cost reduction plus any difference between what your insurance pays and what the lease bank requires. They way you and I think it should work would be for the lease bank to ask for $30k from your insurance, the insurance will pay fair market value, if that is $30k or more then the lease bank gets $30k and you get your $3k in MSDs back. If your insurance pays less then that comes out of the $3k in MSDs. So if they do it as they told the forum member they did, your money is just as at risk with MSDs as it is with a cap cost reduction. So what I am saying is if you are planning on doing MSDs you need to be SURE in writing how they are applied in the event of a loss. If they are merely a backstop should your insurance fail to satisfy the lease bank, then good. If they are the first thing applied to the loss, then bad. When I have some more time I will try to search up the messages posted about this. If was most likely over in the G lease thread though. Dennis
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Replying to: dwynne (May 14, 2008 9:04 pm) With IFS leases the risk only comes into play is when you have a high residual, and if by chance your vehicle is either stolen or a declared a total loss, the appraisal comes in below the actual payoff. This can happen in the early stages of the lease as the vehicle loses a lot of value immediately after you leave the lot. There are two ways to address this issue. First you can purchase gap insurance which i believe will insure one for the difference between what one would owe on a vehicle and what an insurance company says it's worth. Second, when you buy insurance coverage you need to check with your insurance carrier if the gap coverage is built into your premium. Good insurance companies will usually provide this coverage as part of their quote, but again you need to check with them specifically on this issue. Furthermore, i'm inclined to believe that IFS itself should provide this gap coverage on every lease or finance deal as they are exposed to this same deficit in capital if in fact one of their vehicles is involved in a collision where the car is totalled or stolen. I also don't believe that because you don't have a deposit in place you are less exposed to the same risk. Whether IFS has a deposit or not, if they are owed money they will come after your via legal avenues. So if you leased a car and your car is stolen 3 days later, why do you believe the person that doesn't have a deposit is any less responsible for the full value of the vehicle as the one who does? Just my 2 cents.
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Replying to: brodway (May 15, 2008 7:43 am) I posted this message today about this topic and referenced what another user found out back in January when he talked to IFS and his insurance about what would happen. I think the insurance companies handle lease cars differently. I you own your car outright then they make you happy. If you owe on in (loan) then they pay of the bank if there is enough money and give you the remainder, if any. On a lease, the bank owns it all you have no interest in it - you are renting it. So they pay off what the bank says is owed or the max they appraise - whichever is lower. Since you have ownership stake they give you nothing. As the user was told by IFS they would take the MSDs off the amount required to make them happy so the insurance would pay that reduced amount - assuming it was under appraised value. It is like a mortgage on a home VS rent. If your house burns down the insurance pays off the mortgage and you get the balance. If you are renting and the apartment burns down the insurance pays off the folks who own the apartment, you get nothing. Dennis |
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