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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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Doesn't anyone buy their cars anymore? I bought my G35 new in 2003. Have 55K miles. To date has cost me $0.65 cents per mile. And I own the car. The leasing customers, if not exercising the option to buy for high residual value, will have to sign a new lease, whether Infiniti or another marque. Over 6 years the per mile lease cost will be about $0.58 cents per mile. And they will still have ZERO equity in the good, unless they buy at the high residual value. If I want to get out of the car (which I do not at present) I can likely obtain a return of $20K if I were to sell in today's market. That would drop the ownership cost of the car down to $0.27 per mile. That is about HALF what leasing for 72 mos. would cost (assuming costs to lease the new vehicle do not increase). That is a net savings of $17,000! Which could earn you $6500 in bank interest, alone, in 60 months. With the long warranty that Infiniti offers there is no compelling reason I can see to getting out of the car after 36 months.
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Replying to: athens (May 18, 2008 10:35 am) |
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Replying to: athens (May 18, 2008 10:35 am) |
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You could buy a home, just as could lease that same home, provided the parties agreed to terms. There are advantages to either means of obtaining legal use and possession. The comparison is absolutely valid. It concerns the same vehicle. The G35. It is not a comparison between a G35 and a Corolla. If you lease, unless you exercise the option to purchase based upon the claimed residual value, which few people do because the terms are for a fixed rate that is anticipated three years in advance, you are going to be obligated to either buy or lease another car. (Except perhaps if you will be relying solely on public transport.) My calculations are the purely the costs of ownership vs. leasing. After six continual years of leasing, assuming monthly lease payments will not change upon concluding the first lease and entering a second lease, the cost of rental possession is 2X that of ownership. A lessor is responsible for all wear and tear just as an owner. That is the basis of the comparison. I'm not comparing the merits relative to someones ability to afford the purchase or the motorist's desire to be in a new model car every few years. Solely cost. My G35 is in pristine condition. Not modded. (Unlike 70 % of them). Not natty inside like most cars are after one year. Trade-in probably your right, not more than 15K. That is why is NEVER trade my cars in. When I went to trade my 1997 M3 at a BMW dealer in 2001 they offered 24K. I sold it private party for $30K and the current owner said it was far and away the best used car he saw out of 6 others. For about a year after buying the M3 from me he even called to tell me how great the car was on various road trips to the East Coast. |
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Replying to: athens (May 18, 2008 2:37 pm) One other very important note. If your are in an accident which requires body repair, you just lost 10% of the value of YOUR car. If you lease the car, then the bank just lost 10% in value. I experienced this in the last car I purchased, because it was in an accident it could not be sold as certified or even sold at Carmax, you will be offered wholesale price as a trade or sell it yourself. I would also disagree with your comment regarding leasing being 2x that of ownership. I just leased a G35 for $485 a month (including tax) for 36 months. If I did the same again in 3 years, I will pay a total of $34,920 over the 6 years. If I purchased the same car, at the same price (omitting the acquisition fee from the purchase) and paying tax on the full purchase price the total is $36,075, financing the car for 72 months at 4% interest (which I don't think you can get today) the total monthly payment is $564.39 for total payments of $40,636. Payment wise, the purchase is $4,500 more expensive and you have at least $1,500 in additional maintenance for a total cost of $6,000. But in turn, you have a car which you own free and clear. You will likely be able to sell the car for more then $6,000 and that will be your savings of buying vs. leasing. I also believe that insurance on a late model car is more expensive then a new car, this has been the case in the last 2 cars I have purchased. Bottom line, some people Buy, some people Lease, some people buy new, some buy used. While leasing will cost you more (but certainly not double), some people get value for the extra expense.
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Replying to: brian62 (May 18, 2008 5:03 pm)
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Replying to: brian62 (May 18, 2008 5:03 pm) Overall, its a toss up. With the current lease rates and residuals being offered by IFS, i believe the way to go is leasing instead of buying. I've evaluated both options and really find the argument of saving on a purchase versus a lease in today's market lacking conviction. |
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Replying to: athens (May 18, 2008 2:37 pm)
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Stupid question... is the first months payment required at lease signing? I see a lot of people do it and it is simply to reduce the cost for the next payments? Or in other words if you wait a month to make your first payment does it cost you more? It makes sense to me to pay the bank/doc/title upfront and finance the rest but I do not see why making a payment in advance is done. Is the idea to reduce the monthly payment (because of the saved finance charges on the early payment) or does not making a payment cost you more per month than say the lease calculators figured your payment should be per month. I guess the question is if I do not include the first payment a signing does it raise my monthly payment? Thanks -S |
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Replying to: ez061825 (May 18, 2008 5:12 pm) As far as a purchase is concerned, the tax code specifies that the depreciation of the vehicle is the actual expense of usage. The depreciation value of the vehicle may vary in different years of the life of the vehicle. |
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