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Prices Paid: Buying & Leasing Experiences Infiniti G35 G37 Lease Questions
3301 messages, Last post on Jul 04, 2008 at 7:06 PM
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Hi all. I’ve been a silent observer for a while now and I have learned a great deal regarding the ins and outs of financing and in particular leasing. I am interested in a G35x to replace my BMW 325xi. By chance I happened to have a few hours yesterday and took a one out for test drive. I was impressed and an now ready to get serious about driving the best possible deal. With that said I have a few questions I hope that that you knowledgeable folks can shed some light on for me. 1) The rates quoted on this site for a G35x are on 15k are: G35 AWD: 24-70%-.00131 36-60%-.00150 39-59%-.00172 Using quote of 39675 including fees (yes I know it is really high but it was a first pass) I come up with the following for a 24 and 36 month lease with 5% tax as follows: 36 month = 547.96 24 month = 422.42 I am sure I have read on here and other sites that most people recommend going with at 36 month lease. My question is this. Unless I have grossly misunderstood the calculations then why would I not want to go with a 24 month lease? Especially given that it is over $120/month cheaper? What are the pros of going with a 36 month and the cons of a 24 month? 2) I found out that they first dealer I went to marks up the MF for leases. They are quoting a MF for a 36 month lease at 0.00170. As I didn’t ask for anything more than a first pass I did not question it. My question to your folks however is, where other than here I can find posted IFS money factor rates. My credit should be Tier 1 (that’s what I told them) and they did not pull my credit so they could only go on what I told them. I want to be able to quickly point to a “known” website or source that provides the ‘real’ MF rates. 3) When trading in a car on a lease is it better to take the money back in cash? I read here that putting money down to reduce CC on a lease does not make sense but I want to make sure taking the case back from a trade-in is the thing to do. Or are there better options? Thank you to all you folks who help out! This forum, site and the people who visit it looking for information are much richer for it. Thanks! -S
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Replying to: sonofjay (May 12, 2008 4:00 pm) If we look at the 24 month 0.00131 and 70% of MSRP for residual, I get $459.31 per month w/o tax and $482.27 w/5% tax on the payment. 36 month is 0.00150 and 60% of MSRP, I get $445.61 and $467.89 with 5% tax. So I don't know where you got your figures, but that is what I come up with. This would be leased at that price with the $595 bank fee and first payment due at signing plus any tags / title fees. You should be able to get the car for less, say $500 over invoice including dealer fees, which will make the payment less. Normally the 36 month is the sweet spot in the lease - the car is still under warranty and the initial depreciation is spread out of a longer term. In this case, IFS is running a special 24 month deal that makes it quite attractive to pay just a little more and have a 2/3 length lease (compared to 36 months). They have had promo 12 month leases in the past that worked out to be good deals, so you just have to run the numbers and see how it looks. Just ask the dealers if they mark up the rates, everyone that I ever asked that did - admitted it to me. When you contact the dealers in your area ask for a price on the car to include destination, ask how much their dealer doc/prep fee is, and ask if they mark up the lease rates. You have to know all this info so you narrow your choices down. You might also as if their cars have any dealer installed options. An old trick is to give a nice price on the car and when you come to pick one out you find they all have > $1k work of dealer options on it that they expect to tack onto the price of the car. We always say not to put much money into a lease since you can lose your investment if the car is stolen or totalled. You can sell your car to any other dealer, including those like CarMax or DriversWay. You can sell it to a private party. You can trade it to the dealer. Anything you get over the pay off in any case you should get in the form or a check. If you don't have much equity, say enough to cover the bank fee and the first month's payment then you could just it for that. Dennis |
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Replying to: dwynne (May 02, 2008 5:18 pm) These numbers are rediculous! or maybe Im just using a bad calculation spreadsheet. Interested in a G35x w Premium package and possibly nav. At a 24 month lease and 15k miles, 70% residual, .00131 MF, getting near 370 / month. what am I doing wrong? MSRP 37815, guessing a sale price of 36000 Anyone know what Im doing wrong, or should price really be this low?? |
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Replying to: jpasiczn (May 12, 2008 6:20 pm) If you simply figure the difference between selling price ($36,000) and residual ($26470.50) you get $9,529.50, divide that by 24 and you get the principle payment of the lease at it is $397.07 per month. So your payment is way off. Depreciation Fee = ( Net Cap Cost – Residual ) ÷ Term Finance Fee = ( Net Cap Cost + Residual ) × Money Factor Payment = Depreciation Fee + Finance Fee Dennis
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Replying to: dwynne (May 12, 2008 4:42 pm) Truly appreciate your help. I think you helped me correct my own stupidity. First, apologize for not including the details as I was more using those numbers as an example rather than what I was working with. But in this case MSRP was $40575 and price from dealer was $38985 including destination. I haven’t confirmed invoice but the dealer said $37245. Like I said they were high. But using your example of MSRP of $38,030 and CC of $35,700 I redid my work and found that I was way off. I wrote a formula in Excel to help me when I get the numbers back from the other dealers I’ve requested quotes from. I was quoting at 36 months and had my base data entered that way. Turns out when I went to compare the 24 month payments, I adjusted the residual and the MF but was asleep at the wheel and left the number of months to at 36. So I was dividing the MF at 0.00131 and residual at 70% by 36. And today is only Monday? Anyway…apologize for the stupidity. I reran my Excel formula using your example above and came up with the following: 24 month $459.93 and $482.93 with tax 36 month 445.61 and $467.89 with tax Which are very close to your numbers. So I now see that a 24 month lease is does cost more each month. Which is what I read before and looking at it, now makes sense. Your information on the dealer installed options is a good one. I was looking at the sticker on the car with MSRP but I guess the dealer is free to install whatever they want after the fact and drive the price of the car up. I will keep the dealer option in mind. Also, as I said I didn't really question or call them on it but I did ask the sales guy what the rate was and if they marked it up and he either played dumb or honestly did not know if they marked up the MF. I asked him to find out what the MF rate was and he called the finance person who responded with a 0.00170 and a 62% residual for a 36 month 10k lease. Again I told them I was tier 1 so they couldn’t have adjusted for credit, so I can only assume they mark up the MF. I left it at that and decided to shop around before asking them anything else on it. I’ve contacted a few other local dealers tonight and asked for the MF, residual, prices, destination, bank and prep/doc fees to be broken out so I’ll see what I get. And your information on selling the car is an interesting one. I still owe on the car and have never sold a car I did not own outright. Honestly I wasn’t looking for the hassle but based on the prices offered to me for the 325xi by this dealer I may have to. I also didn’t want to include the trade too early in the deal as I wanted to focus on price and rates first. I will look into CarMax an DriversWay to see what they are about. Really appreciate the information and help. Thanks again Dennis! -S |
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Replying to: sonofjay (May 12, 2008 8:18 pm) my 2 cents. 
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Replying to: dwynne (May 12, 2008 7:20 pm) I didnt mention that I am putting 2500 down. I reran my program with no money down, and our numbers match up. So throwing in 2500 down brings me to a payment of 370+tax=382. MSRP= 37265 Selling Price 36000 2500 down Net cap 33500 Residual 26530 24 month term MF .00131 7% tax 382 with tax. I hope im doing that right, Can anyone confirm before I walk into the dealer with these numbers in mind? john
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Does anyone have the current IFS May residual and money factor rates for a G37 Journey? I've found conflicting #'s from a couple of different sites. I'm in the process of leasing the G37 between now and July. I know it's impossible to predict the future, but does anyone have any insight on what we can expect the residuals and money factor rates to do over the next two months?
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Replying to: jpasiczn (May 13, 2008 5:11 am) 
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Replying to: sonofjay (May 12, 2008 8:18 pm) Help
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