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Infiniti G35, Infiniti G37, Car Leasing, Coupe, Sedan
#1816 of 8146 Time for new lease -- Infiniti G35x AWD
Aug 18, 2007 (4:31 pm)
I am looking to end my 39-month 2004 G35 lease based on an offer from Infiniti and lease a 2007 G35x AWD from my local dealership. Per Infiniti offer, no security deposit on new lease, plus they are "paying" last three monthly payments on 2004 vehicle (total of about $1500) + $500 credit towards any repairs/damages.
Need some help with evaluating offer above + the cost, residual, money factor etc. MSRP for new car including premium pkg, dest charge, XM radio, minor others = $37,250. Offered price is $36,000 but I think they may try to tack on an acquisition fee of $500-600. No security deposit. Money factor is listed as .00207 which is roughly 4.97%. Residual factor is listed as 58% which seems low. Monthly payments are showing as $578 which is about $100 more than current lease. No other cap cost reductions are planned. Time is short in order to locate vehicle, bring it to my dealership, and meet 8-31-07 deadline for offer. Any thoughts would be appreciated
#1817 of 8146 g35 coupe lease question
Aug 19, 2007 (12:12 pm)
Sorry if I'm addressing a post that's already been answered, but I'm new to this site. I really appreciate your knowledge on this subject. I'm looking at either buying or leasing an 07 coupe AT, without nav, 17 wheels, etc. Fairly basic model. A local dealership outside of Philly is offering a 299/mth for 24 mths with 4k down and not including tax and tags. i'm not too good with these money factor and residual value equations, and I noticed that you don't recommend a big down payment for a short lease. Does this sound like a decent deal to pay 11,176 total for the life of the lease when the value of the car after 2 years is predicted to be around 24200? Also, am i correct in assuming that basic maintenence is not covered in a lease? Finally, do you have any professional advice for my situation? I want a sporty 2dr for a few years before kids and have somewhat settled on the g35 2dr. It seems like i can make my money work better for me with a lease vs buy. Is that true, and if the 299/mth ends up being a good deal, does it make sense to attempt to negotiate the sticker? sorry for the lack of brevity and thank you in advance for your help
#1818 of 8146 Re: Time for new lease -- Infiniti G35x AWD [jcb123]
Aug 19, 2007 (4:08 pm)
A G35x with premium and XM would MSRP at $37,265 including destination (the destination went up $15 in mid-model year). The invoice would be $34,177. You offered price is (to me) way too high, you should be at $35,177 or less this late in the model year. So the $1,500 they are "giving" you to make the last 3 payments is coming right out of your pocket on the front end due to the high price.
Now pricing can vary from region to region due to supply and demand, but I would think your price is just too high.
The bank or acquisition fee is always added exclusive of the selling price of the car.
The residual is set by the lease bank (IFS in this case) and can't be changed by the dealer.
0.00207 is the buy rate for a 36 month G35x lease.
Either get them give you a lower price on the new car or just wait until your lease is up and get a new 08 G for about the same (or maybe) less money per month. The only exception would be if you NEED the $500 in damage forgiveness they are offering on your current lease. Then the deal gets $500 better.
#1819 of 8146 Re: g35 coupe lease question [jmd15]
Aug 19, 2007 (4:22 pm)
Always negotiate the price of the car first, no matter if you are leasing or buying. There is a $1,500 dealer incentive on left over 07 G36 coupes right now so your price should be about (you guessed it) $1,500 under invoice to take one off the lot. Once you have found the car and made the deal, then worry about the lease terms.
The August coupe rate is 0.00174 and the residual is 68% for a 24 month/24k mile lease.
A base (with nothing) coupe would have an invoice of $31,478 including destination. If you got it for $1,500 under (let us say) then $29,978. If we roll in the $595 bank fee then $30,573 cap cost with a residual of $23,232.20. We plug that into the lease calc with the term and MF and get $399.49 per month w/o tax with nothing due at signing but first month and tax/title/tags. If I increase the amount due at signing by $3,600 the new cap is $26,973 and the payment drop to $243.22 per month w/o tax.
Lease or buy, Infiniti does not include maintenance with its new cars - that is up to you.
Nothing wrong with lease then buy if the numbers work out, but you always have to factor in the loss of the bank fee ($595 in this case) when running the numbers. A 36 or 39 month lease might make more sense and for sure should result in a better payment and less to buy on the back end, but you have to run the numbers each way and decide.
#1820 of 8146 Re: g35 coupe lease question [dwynne]
Aug 19, 2007 (7:21 pm)
We plug that into the lease calc with the term and MF and get $399.49 per month w/o tax with nothing due at signing but first month and tax/title/tags.
That's a good number. I traded in an '05 coupe earlier this year and I lost about 9.5K (2 years old with 20K miles).
#1821 of 8146 thanks dennis
Aug 20, 2007 (2:38 pm)
Dennis, thanks a lot for your reply...it was quite helpful and i'm beginning to understand the process. I'll keep you "posted." Thanks again.
#1822 of 8146 Re: thanks dennis [jmd15]
Aug 20, 2007 (3:08 pm)
You have the right rate and residual, just got to hammer them on the price .
Is the offer you got from the dealer or from IFS direct? Just curious as it sounds like a dealer's idea to "buy out" your old lease by getting you to pay too much for your old car.
The 08 cars come standard with XM and ipod interface, but the invoice/MSRP may be a bit more - prices have not been posted that I have seen. Unless they make you a sweet deal to take the 07 off their hands I would wait and get the 08.
#1823 of 8146 1,500 dealer incentive
Aug 20, 2007 (5:47 pm)
Local Dealers in New Jersey have been giving me the run around concerning the 1,500 dealer incentive saying that its only for financing. Is this true? I thought it was applicable to any form of purchase including lease deals??
#1824 of 8146 Re: 1,500 dealer incentive [ixjunitxi]
Aug 20, 2007 (7:27 pm)
When they had the $1,500 coupe incentive 2 months ago it was for purchases only. They replaced it last month with chap money financing. Edmunds incentives page for August says:
$1500 Cash to Dealer start: 08/01/2007 end: 08/31/2007 Get Dealer Pricing
Comments Dealer participation may vary.
But of course, that is not the final word on it as Edmunds could have it wrong.
Check into a 3rd party lease through someone like leascompare.com . Run the numbers with their residual and MF but figuring on getting the $1,500 off, then compare with the dealer's deal w/o the $1,500 and see which is better. I have not heard this month that the dealer money keeps you from getting the cheap lease rate from IFS, but it could be true.
#1825 of 8146 1500 dealer incentive
Aug 20, 2007 (7:41 pm)
I have been using this calculator and getting payments in the low 4s but when i get quotes from Dealers they are quoting me high 4's low 5's in terms of payments which seems a bit high.
At this point if i were to use these figures what would an ideal deal look like
Selling price 36,089= invoice
total out of pocket 2,500
NJ sales tax 7%
im getting around 460/mo (with taxes) without dealer incentive using this calculator