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Prices Paid: Buying & Leasing Experiences Infiniti G35 G37 Lease Questions
3471 messages, Last post on Aug 08, 2008 at 8:24 AM
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Brian 62: If Edmunds True to Own Costs claim the average maintenance expenditure to operate a car over 6 years is $6K, as a former Literature Professor in College used to exclaim "They [Edmunds] are off their Rocker"!!! Perhaps those costs include gasoline and insurances. As a trial lawyer who handles a significant portion of bodily injury and property damage claims I can tell you that you are gravely mistaken about how insurance claims benefits are paid out and how premiums are assessed. When a car is financed, in other words, a security interest has been recorded with the local Sec. of State insurance company's will only issue policies which include Gap coverage. Otherwise the lien holder will put in own GAP coverage in effect at the buyers expense. Lessee's must provide the same coverage for the leased car. Third party injury claims are paid under the third party liability provision of the auto policy. Liability is assessed against an insured based on a determination of breach of duty of care to another and injury resulting form said breach of duty. Age of a vehicle has no direct correlation to a finding of liability, unless the owner, operator of the vehicle was not properly maintained and the lack of proper maintenance vehicle proximately resulted in the injury. For that matter the operator of a 6 month old car, who has modified, neglected or abused his newer car to the point where it proximately resulted in property damage or injury to another could be held liable. Whether a car is new or old, whether the car is owned or leased would normally make zero difference as to a liability determination. ZERO. Also the amount of benefits paid under a third party liability claim generally have no bearing on subsequent underwriting changes to the driver's premiums. Benefits will be paid up to the policy limits based on damages. If a motorist is determined to be liable for a financial sum in excess of their liability limits, any supplemental liability insurance they carry, such as homeowner's premise liability or an umbrella liability policy could satisfy the overage. Otherwise a judgment can be entered against the liable party, whereby bank accounts can be levied, real property can be liened and foreclosed upon, and wages can be garnished to satisfy the deficiency in insurance coverage. Factors considered in underwriting liability portions of auto insurance policies are based on the insured driver's factors: 1) Age (younger drivers lack experience and take more risks) 2) Use of vehicle 3) Geographic area of vehicle registration 4) Whether you own or rent your dwelling 4) Sex and Marital Status 5) Credit history 4) History of being found liable for previous collisions. 5) Traffic law and criminal law violations Again, with age of the vehicle collision/ comprehensive tend to drive down as a function of depreciation. When I bought my G35 in 2003, I paid $900/ year for full State Farm coverage with $250 ded. $300K/ $300K L/U/U motorist coverage, with rental coverage. Five and a half years later I'm paying $710 per year. The only reason you would need to calculate the finance rate as a function of 72 mos. is if you could not afford to pay off the car in 36 or 48 mos. Car loans in Illinois have no prepayment penalty. In the example I gave above where my Dad bought his 5 series new in 1995, even with the cost of three sets of tires, a new radiator and the re-built transmission his ownership cost ($40K) over 120K miles hover around $0.30 per mile. If he had leased a new 5 series every 36 months the lease payments would have cost him over $86,000. That is $46,000 in his pocket. With that savings he will be able to buy a new 530i cash in full.
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Oh forgot big factor on liability risk underwriting: 1) Risk category of car (Sporty cars with more power will be considered a higher risk than less powerful cars as insurers feel they promote aggressive driving.) KBB private party retail on a 2003 G35 coupe with the mileage my car has is $17,200. My car is in pristine condition guys. Because I drive it gently. Unlike 90% of the contributors on the various G35 forums who track their cars, perform mods, drive aggressively, change tires and brakes every 20K and perform Mobil 1 synthetic oil service to protect the car. My tires lasted to nearly 40K miles, and brakes were replaced at 45K. II have spent a total of $1000 in maintenance (tires and brakes) other than oil changes every 5.5.K. I follow Schedule II which is what my dealership recommends based on the type of driving I do. Again when I sold my 4.5 year old E36 M3 with 45K miles I sold for 20% above KBB retail. |
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Replying to: athens (May 18, 2008 9:46 pm) You fail to state the obvious. Succintly, that the cost of driving a 1995 vehicle will obviously be significantly less than a vehicle 6-8 years younger. If you are ok driving a vehicle that long that is fine, but some of us prefer to drive a new vehicle every 24 to 36 months, and there is an inherent cost involved in doing so that your analysis fails to incorporate into the equation. Furthermore, if you chose to lease a vehicle that is 3-4 years old, which is now actually done and referred to as a second hand lease, the cost of such lease would be a fraction of the cost of a new vehicle. Your analysis fails to discount this as well. So if comparing apples to apples, let's consider the reduction of a lease expense vs. the loss of equity in an owned vehicle and run from there. I can go on and on, but its a mute point. Those who want to own, will always find an argument that owning is cheaper than leasing, but having done both on numerous occassions, i would say it's a toss up, and if you like driving a car for 10 years, then absolutely go ahead and purchase. I, for one enjoy the smell of a new car every 3 years and lean towards leasing when the numbers make sense. |
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And that is leasing G sedans and coupes. I really don't care to read the opinion of someone about why THEY never will lease or how dumb it is to do. I love leasing and someone else is not going to change my opinion about it. There is a "Leasing vs. Purchasing" forum here at this link where folks that don't like leases can go an argue about it. This forum should be for folks who have G lease questions - money factors, bank fees, residuals, payments, deals, etc. If you want to argue about leasing, there is a forum for that - and this is not it. Thanks, Dennis |
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You meant "Moot" point right? Exactly right. Yes there is an absolute value to leasing if you want to be in and out of a car every 24 to 36 months. It's the same as buying an expensive pair of shoes which will be worn once. A new TV every couple of years. New furniture and upholstery for a home every A new camera every year. A new wristwatch every year. The cost as a function of utility will always be significantly less than cost as a function of style, fads, trend. If it's a new car smell you need every 24 months, I shower daily, don't eat or drink in my car, and annually hand scrub the interior with Murphy's Oil soap in warm water. So my 6 year old G35 smells pretty darn new. |
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| Sorry to all on this thread about getting off topic, really. | |
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Replying to: dwynne (May 19, 2008 6:39 am) I also have a call into my local Infiniti dealership on the issue of Multiple Security Deposits and what risks are associated with this deposit. I'm hoping to hear back shortly. Thanks.
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Hi All, I received a quote on a lease from a Long Island Infiniti dealer as follows: G35X w/Sport, Navigation, Technology and Premium packages. MSRP 42165 Sell Price: 41300 2900 down, $485/month for 39 months This is a first offer from the dealer I think that since the buy price is still quite a bit over invoice, that there is still room for further negotiation. Opinions appreciated.
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Replying to: dammitjim1 (May 19, 2008 8:21 am) That car is fully loaded! It will be hard for them to sell a $41K+ G35. You should be able to get that for less than $500 over invoice. Oh yea, study up on leases before you do one. Putting money down on a lease is a “BAD” idea in terms of risk(If you crash the car or trade the lease you loose your entire deposit). Here is the deal I got on an 08 G35 Journey with Premium, Sport, Navi, and Tech packages. Please note that I rolled $920 worth of payments from my previous car into this lease. That also is a “bad” idea but I am impatient and was willing to pay the extra $s to get the car this month. 36 month lease with 12K miles per year. .0015 Money Factor 60% residual Selling Price = $900($500 over inv + $400 doc fees) over invoice before you add in the $920 in previous payments Absolutely nothing down. First months payment, sign, and drive. $532 per month(This would have been in the low $500’s if I hadn’t rolled the other payments in). My deal actually isn’t that great because I paid $900 over invoice. If you are patient and you shop around you can get $500 or less over invoice. |
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Replying to: brodway (May 19, 2008 7:20 am) In the past, the MF was the same as the MF for the journey coupe and the residual was 1% higher (at 36 months) than the journey. You can always ask the dealer what the rate is on the journey to see if they are marking up the rate of not, then ask for the base coupe rate. I would call IFS directly and ask about the MSDs. Most dealers seem to either not know or not understand MSDs. Dennis
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