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Prices Paid: Buying & Leasing Experiences Infiniti G37 Lease Questions
4617 messages, Last post on Nov 08, 2009 at 1:24 AM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Replying to: dchez (Dec 20, 2008 10:54 am) Car_man Host Prices Paid: Buying & Leasing Experiences Forum |
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Replying to: cjnapolitano (Dec 20, 2008 9:34 pm) You can determine approximately how much it will cost you to get out of your current lease by comparing its purchase price to its value on the open market at this time. You should place a call to the bank that you are leasing your vehicle through to find out its exact price. Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". Don't forget to check to see if you are still on the hook for your remaining lease payments. The difference between your leased vehicle's current value and how much it will cost you to buy it plus any remaining lease payments that you are obligated to pay will equal the cost of getting out of your lease right now. You may find that you are better off waiting until you are closer to the scheduled end of your lease to get another new vehicle. Car_man Host Prices Paid: Buying & Leasing Experiences Forum |
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Replying to: tiger93 (Dec 22, 2008 6:26 am)  . Thanks for taking the time to share the details of your deal with everyone. If you'd like, you also can zip on over to the Dealer Ratings & Reviews to share your thoughts on your recent dealer experience as well. Happy holidays and enjoy your new ride  ! Car_man Host Prices Paid: Buying & Leasing Experiences Forum |
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Replying to: Car_man (Dec 23, 2008 2:44 am) |
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Replying to: stuffedmonkey (Dec 22, 2008 10:06 am) Car_man Host Prices Paid: Buying & Leasing Experiences Forum |
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Replying to: Car_man (Dec 23, 2008 2:44 am) now that i'm looking at the numbers on an '08, i figured i need to do my due diligence and at least check out the '09 possibilities. do you happen to have the Residual and MF for the '09 journey sport?? here is the deal i've been offered thus far, and to be quite honest, i'm sincerely surprised at how neither the tulsa nor dallas dealers are willing to come down on the sales price to move these '08's out..... 08' journey sport/prem msrp =37985 sales price =34400(essentially invoice price) (dealer claims the $1000 incentive is his profit and also "said" "well i don't have to give you that incentive...." blah blah" " i need to make some money on it") residual=52%(19752) mileage=15k term=36 MF=.00062 acq fee=595 Tax=1240 capital cost reduction=$2k (said the gap insurance protects me in event of a total loss) doc fee=149 $440/mo total due at signing=$2440(2k cap cost red and 440 for 1st payment.) like i said, i'm not totally crazy about this deal, but i'm getting closer to pulling the trigger. closer, not there yet. QUESTION: does one ALWAS have to pay their first payment?? or is this somehow a way to sneak in extra profit??? SOMEHOW?? thoughts? comments? thanks again for all the help you've given board members. |
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| anyone recommend a good dealer in NY. looking to get the 2008 g35xsport sedan. | |
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Replying to: drjustin (Dec 23, 2008 9:59 pm) It's not advisable to do any capital cost reductions on leases. The gap insurance will cover the difference between the commercial value and what you owe (so if you put 2k down and you happen to have a total loss on your car, you will never see that money again, but your gap insurance company might send you a thank you card ). Given the low money factor, ask the dealer to roll everything into the lease and just pay 1st payment+Security deposit at inception. If the cash is burning a hole in your pocket, or your only other investment alternative is a Madoff fund, you're better off making multiple security deposits, which would further reduce your money factor rate. Security deposits are completely refundable at the end of the lease. PS. Yes, you have to make the first payment at inception. Lease payments (like any other rent) are due in advance, as opposed to finance payments which are due at the end of each period.
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Replying to: passat_mx (Dec 25, 2008 4:01 am) i'm not sure i understand the security deposit deal. will the monthly payment still remain the same as with a cap cost reduction?
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Replying to: drjustin (Dec 25, 2008 10:48 am) No, they are a different concept (see post 3722 in this thread). You should get familiarized with how to calculate a lease payment before heading to the dealer. Edmunds has a very good article here, but I'll give you the gist of it: There are four factors that come into play in a lease: two that are fixed, one that some dealers will try to play fast and loose with, and another that you have to outright haggle with: a) MSRP: This is fixed, printed on the window of the car. Just make sure it doesn't include any "dealer installed" crapola. Those accessories/protection plans are usually marked up through the roof. Decline them all. b) Residual percentage: Again, fixed for a determined mileage. The bank sets it and won't accept a contract that deviates from it. c) Money factor: Fixed, and you can learn about it here. However, in this case the bank sets a base (also called "market") money factor but lets dealers mark it up up to certain point, and they get a kickback on the difference. So you have to know what the base money factor is and insist that that's what is used in your calculation. Money factor for a lease is akin to interest rate on a traditional loan, so the lower it is, the better for you. Some banks will take multiple security deposits and give you a discount on the money factor in exchange. Since security deposits are completely refundable, this is usually a good option from the consumer's point of view. d) Capital cost: This is the amount for which the leasing bank is going to cut a check to the dealer. It equals the price you agree to pay for the vehicle after all the haggling, plus any other fees you decide to "roll up" into the loan. Let's talk about what these fees could be for a second: **bank fee, all banks charge an inception fee (again, there's a base or market fee that dealers are allowed to inflate to a certain point, so you need to check these forums to see what the current fee is), **title, tax and license (TTL), which are set by your state's DMV, **document fees, this is just crapola from the dealer, try not to pay any (California though sets it fixed at $50, so I don't haggle with that). All these fees can be rolled into the loan if you want (as opposed to being paid at inception). If the money factor is low, it could make sense to just do that. Lastly, the formula: Your lease payment is composed by depreciation + interest: ResidualAmount = MSRP * ResidualPercentage Depreciation = ( CapitalCost - ResidualAmount ) / NumberOfPayments Interest = ( CapitalCost + ResidualAmount ) * MoneyFactor MontlyPayment = Depreciation + Interest In California, sales tax is applied not at the time of the sale, but at the time when each lease payment is due, so just apply your local sales tax to the resulting MonthlyPayment above to figure out how much to write the check for. Other states might have a different way of handling sales tax. |
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