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Prices Paid: Buying & Leasing Experiences Infiniti G37 Lease Questions
4715 messages, Last post on Dec 06, 2009 at 2:10 PM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Does anyone know the new rates? Carman? 
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Replying to: madd66 (Sep 04, 2008 7:47 am) I am looking for the quote on my prevoius thread so I am sorry. I do however have a new quote from a dealer in AZ and it is as follows. The The MSRP of the G37 journey sport, navigation, and premium packages according to a dealer in Arizona is $43,770.00. I think this is higher than what edmunds says the MSRP should be....Anyway he said they would sell the vehicle to me for $40,595.00. Based on that he said my down payment would be $1936.88 and payments would be $575.35 plus fees for a 39 month lease 15K a year. Is this a good deal???? Also I feel so confused with the whole Texas lease laws. If I get the car in AZ does that mean I have to pay another $3000 in fees when I try to register the car in Texas or is it already worked in the deal? OR is it the same as property tax that I pay every so often in the monthly payment??? Confused
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Hi everyone Sorry to post again before the answer to my last question but I just got another quote and would appreciate feedback please. I was given 2 different lease quotes on a 08 G37 sport, nav,and premium packages. I live in Texas by the way. My credit score is a little above 700. The first was from a dealer in Texas. They said the MSRP was $44,280 & the selling price is $41,995 $612 month total 48 month lease 15K year $3000 down. They said the residual was obo 51% of price of vehicle?????? The other offer was from Arizona : MSRP $43,770 & selling price of $40,595. $575.35 month plus fees 15K year $1936.88 Down. Are either of these a good deal or not??? Also where does the whole Texas tax law for leasing come into place? Do I add the tax to the selling price of both vehicles or is it already in the monthly?? How do I calculate that? Sorry I don't understand. Is it 6.25%? Lastly is this why there is a big difference in the price from the Texas Dealer versus the Arizona 1. I was afraid to get the car in Arizona then be hit with a tax fee when I bring the car into Texas to get the car registered... or is that not how it works? Please Help
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Replying to: hbaz (Sep 07, 2008 1:15 pm) |
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ajb723, what was the MSRP on yours and what was the selling price ?? Your monthly of $499 was that total or plus tax? Since they just give me there selling price all the time and it is close to the 09's , am I suppose to ask to see there invoice and just offer that price or how do you recommend the approach?
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Replying to: hbaz (Sep 06, 2008 9:24 pm) Let's see if we can simplify this so its more easily digestible. Leasing for the first time can be tricky since there's so many parts...so bear with me because this response will be somewhat long (but hopefully understandable). First let's start with the dealer in Texas. If I understand correctly you're being quoted on a G37 Journey with sports, premium and nav package with 15K miles per year on a 48 month term (please correct me if I'm wrong). So using this premise let's look at the numbers. MSRP - $44,280 Cap cost (selling price) - $41,995 Cap cost reduction (money down at the time of signing) - $3,000 Term (how long you're leasing) - 48 months Residual - 51% Money Factor - ?? Inception fees (tag, title, acquisition, license, dealer fees) - ?? Monthly payment $612 There are two things missing that we still need; the money factor and the inception fees. Inception fees usually have some profit baked in so its really important to obtain each fee up front with its corresponding cost. But foregoing the two missing elements I worked up a calculation using the inception fees I had to pay in the DFW area and made up a money factor which helped equal the quoted monthly payment (if anyone see any discrepancies please point them out...I don't want to give hbaz wrong information). Gross cap cost $41,995.00 Inception fees $772.06 (this number includes license, title, inspection, acquisition, dealer doc fee). license $70.00 (itemized out, included in inception fee above) title $35.00 (itemized out, included in inception fee above) inspection $22.00 (itemized out, included in inception fee above) acquisition $595.00 (itemized out, included in inception fee above) dealer doc $50.00 (itemized out, included in inception fee above) Tax rate 6.25% Tax $2,624.69 Cap cost reduction $3,000.00 Total net cap cost $42,391.75 MSRP $44,280.00 Residual percent 51.00% Residual Value $22,582.80 Term 48 Total depreciation $19,808.95 Monthly depreciation $412.69 Monthly Tax $54.68 (included in the monthly depreciation, itemized out to show) Total Monthly Depreciation $412.69 Finance Fee Money Factor 0.00307 Effective APR 7.368 Total Rent Charge $199.47 Monthly payments $612.16 There are a couple of things I'd like to point out about this deal. The cap cost reduction is pretty hefty. You are being asked to put down about 7.2% of the selling price to make your monthly payments equal the $612 number. If you elect to not put down the $3000 then your payments will balloon to $683.87 (or there about). Many of us on this forum will caution against such a large cap cost reduction (the whole leasing strategy is about getting into a car with as little money down as possible - the main out of pocket expense should be your first months payment). Then there is the fact that unless your inception fees are out of this world, your money factor will probably be high (I adjusted up to make the $612 number). If I was doing this deal, I would have problems with these initial numbers. So why the disparity between the TX and AZ dealer? Well for one reason, the cap cost (selling price of the car) is lower from the AZ dealer. About $1,400 lower to be exact. To help put this in perspective, if you could get the TX dealer to match the AZ cap cost and keep everything else the same, your monthly payments would drop to $581.22. So as you can see, negotiating the cost of the car and the money factor are both significant factors when leasing. By the way, AZ cap cost is more inline with Edmunds TMV pricing. All right, so let's take a look at the AZ dealer's offer. Again, there are some key elements missing (money factor, residual value - this was quoted from TX but AZ may be different, inception fees, etc.) so these calculations are just for show - once we get the numbers then we can take a more comprehensive look. Also, when buying from out of state my understanding is (and don't quote me on this I'm not a tax lawyer - thank goodness) the dealer will use your state's tax schedule. Meaning AZ will use TX tax rate so you won't have to pay double taxes but I'd double...no...triple check with someone who knows or IS a tax lawyer. Anyone who knows about this feel free to chime in. Gross cap cost $40,595.00 Inception fees $772.06 license $70.00 (itemized out, included in inception fee above) title $35.00 (itemized out, included in inception fee above) inspection $22.00 (itemized out, included in inception fee above) acquisition $595.00 (itemized out, included in inception fee above) dealer doc $50.00 (itemized out, included in inception fee above) Tax rate 6.25% Tax $2,537.19 Cap cost reduction $1,937.00 Total net cap cost $41,967.25 MSRP $43,770.00 Residual percent 51.00% Residual Value $22,322.70 Term 48 Total depreciation $19,644.55 Monthly depreciation $409.26 Monthly Tax $52.86 Total Monthly Depreciation $409.26 Finance Fee Money Factor 0.00258 Effective APR 6.192 Total Rent Charge $165.87 Monthly payments $575.13 Keeping the inception fees the same as the TX calculations, the one thing I noticed is I adjusted the money factor down to achieve the $575 number. However I'm not too sure what the $1,937 is comprised of so I'd be weary of that number (the same goes for the $3,000 for the TX offer). As you can see, the money factor and cap cost (as well as the residual value) are key components to calculating the lease. So to recap. 1. Try to get all the pertinent information so we, on this board, can help you make the best deal possible 2. Try to negotiate the cap cost down to a fair market price which will absolutely help lower the monthly payments (I'm speaking more towards the TX dealer). 3. Keep in mind the added cost of transporting the car from AZ to TX (if you decide to take the AZ deal). 4. Get everything in writing!!! In my youth, I was so proud of myself when I would finally get a "great" deal only to have my dreams shattered when the extra things or "mistakes" kept creeping up the price of the car. I know this is long but I hope it helps! |
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Replying to: hbaz (Sep 07, 2008 9:37 pm) Here's a template I use when I inquire about leasing. While most of the dealerships were petty open, all of them did not want to initially provide me the buy rate (what they buy the money factor at) and it took a couple of emails to get them to provide me all the inception fees. Using email is a good way to ensure you're getting all the necessary information and it also provides you a paper trail should there be any discrepancies. Plus, this wards off the dealer trying to "sell" you a payment. You'll notice that I ask what financial institution they are using since different financial companies can/will have different residuals and money factors (captive finance arms like Infiniti Financial Services, usually have the best rates). Also I ask for their buy rate since this can be negotiated if you see they are padding it too much. Feel free to cut and paste - I know it's pretty dry but you can always personalize the letter. Hi, I am in the market to lease a ______ and would like to obtain the following information for a ___month lease with ___miles per year. MSRP - Cap cost - Money factor offer rate – Money factor buy rate – Financial institution you’re using - Residual – All inception fees (license, tag, acquisition fee, dealer fees, inspection, etc.) with each fee line listed and its corresponding cost - Any and all incentives/rebates/dealer options – Sincerely, _______________ |
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Madd66, Thanks so much for all the info!!! So correct me if I am wrong but I could get the car in AZ and just tell them to charge me the 6.25% tax for Texas either on the monthly payments or pay it up front ..? Also the figures you calculated all seemed right on except for MY MISTAKE I AM SORRY, I didnt put in the quote that the AZ dealer was quoting me on a 39 month lease for those payments .. I also keep being told that because of the time of year that I could possibly go in and ask for the invoice price or even lower??? Is that the case or do you think they would point me to the door. If it is the case stupid question but how do you serve that type of offer up to the dealer. ?? P.S. Do you want to come and do the negotiating for me? HA HA J/K
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Replying to: hbaz (Sep 07, 2008 10:38 pm) The way I understand it, the dealer is just an agent for the financial institution. So you are making payments to the financial institution not the dealer. I know many people have bought and leased from dealers out of state so I know it's done...I just don't know 100% about the tax. So the long answer to a short question is yes...if there's no risk of double taxing. Actually there was a thread on here somewhere about someone leasing/buying in a different state. As for negotiating to invoice or better, I would write to the dealer and say something to the effect "As you know, I am coming down to a decision on which dealership is going to earn my business and with that in mind, I would like to know what is the final best price you can offer me." And see what they say. In my many illustrious years of negotiating both professionally and personally (ever negotiated with a 7 yr old...they are tough!), I've learned there are three stories to every deal. The one you tell your boss, the one you tell your spouse and the one you tell your friends at the bar. Okay, Chris Rock I'm not but the point being, I hear people telling you can get invoice or below but there are so many influential factors (dealer inventory position, time of month, salesperson, regional market conditions, moons aligning just right, etc.) that what worked on one deal may not work on another. I'd love to negotiate on your behalf! In fact, I think there's a business model in there somewhere! Seriously, I'd be more than happy to review any information and if you'd like I can send you the spread sheet I use to play around with the numbers to see if you are getting a fair deal. Good luck! |
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Replying to: hbaz (Sep 07, 2008 1:15 pm) |
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