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Prices Paid: Buying & Leasing Experiences Infiniti M35 / M45 Lease Questions
1691 messages, Last post on Oct 04, 2008 at 9:39 PM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Replying to: miker (Sep 14, 2007 6:02 am) I am no expert on leases, but I can share a few thoughts with you.. also, you should peruse this forum for tons of great info.. usually the best info is repeated over and over, so you should be able to get up to speed if you read the 15-20 most recent pages.. (quick reads). Now specifically as to what you asked: The MSD is multiple security deposits. They are not allowed in a few states (like New York), but are allowed in most states (I am in california and they definitely are allowed). Essentially, the theory is that if you put down more than 1 security deposit (and each security deposit or "SD") is equal to a month's payments, it will reduce the money factor (which is essentially the interest rate on the lease). The formula is for every SD you add, it will reduce the MF by .0001. The max # of SDs is 7 (in cali, at least). So, essentially, if you put down 7 SDs at the beginning of the lease, you reduce the MF by 0.0007, which can be a substantial savings on the interest rate (and monthly payment). Now, a few things to remember about the Money Factor: (1) the residual value (RV) on a lease is not negotiable. It is determined by THE BANK and wont be up for discussion. (2) the MF is negotiable. The better your deal on the front end (ie, negotiating a killer price on the capitalized cost or the price of the car), the more likely they will try to screw you on the MF. I found that I had to give a little back to the dealer on the MF or I had to allow them to raise the cap cost (3) You get the MSD amount at the end of the lease when you turn the car in. Stolen or totaled cars would lead to a loss of the MSD amount. (4) You can give them the cash for the MSDs up front, so you lose the opportunity cost of giving that money to infiniti for 3-4 years (depending on length of the lease). Someone previously figured it out and it turns out if you get 5% return for that money in the bank, you are going to end up saving money because of the reduction in the lease interest rate. So, that being said (and please look elsewhere to confirm the above), the process should be as follows: (1) get current MF and RV from Car_man right here on this forum for the mileage and term of the lease you want (most people ask for 3 terms or so). (2) negotiate the best cost of the car you can (usually do this over the internet with at least 3 dealers). Remember that they are trying to push out the 07s to make way for the 08s which will be priced higher (3) Remember that the dealers get $1500 incentives back from infiniti for the M35s on a sale, but not on the lease, so if you dont tell them you are leasing, they will tell you (possibly) that they cant honor the price they gave you.... or, they will try to screw you on the MF when they find out you are leasing. For me, the cap cost on the car I got was fantastic (well below invoice), but the original MF they quoted me on the car was much much higher than what the MF should have been. In other words, according to car_man, the MF on the M35 BASE 15k mi 42 month lease in Sept shouldve been .00107. With 7 MSDs, I shouldve gotten the lease at .00107-.0007 =.00037. They originally quoted me a MF of .0017 and I had to negotiate the MF to .0006 or something close to that. This is the critical piece of the negotiation. For me, the 7 MSDs = $4500. (4) Pay nothing down (critical), pay your first month+acq fee (595)+ttl+MSDs. For me, with the #'s I quoted, on a 42 mo lease, the monthly payment is 580. It was the best deal for me. (5) Whatever deal they give you, tell them the numbers just arent making sense to you (if they push, tell them the MF or the cap cost isnt what you had hoped -- remember, they dont know that the MF is available on the internet-- this was the thing that pissed off my dealer more than anything), pack up and slowly walk out the door. Then they will give you another offer that will be their best. (6) Drive off happy. The only other thing is that there are lease calculators you can download and use when you are working the numbers.. I used one from carbuyingtips.com. It really helped me as I could look at all the numbers and see that it made sense. I brought my laptop in to the dealership and had it running the whole time. Finally, DONT PUT ANYTHING DOWN AS A DOWNPAYMENT TO LOWER YOUR MONTHLY PAYMENTS - USE THE MSDs Hope this helps and remember I am no expert. I dont even know if my deal was a good one or not. It worked for me, so at some point, I just said, maybe it isnt THE BEST deal ever, but close enough that I can live with it and drive my car with a smile. Cheers! |
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Replying to: artsavedme (Sep 16, 2007 5:06 pm) As far as I know, I would always have Gap insurance. However, your auto insurance carrier may provide that free. Taxes are assessed on the monthly payments on the lease, not on the capitalized cost of th car. I believe if you search through August/Sept posts here, you will find the RV and IFS MF on the terms for the M45s. They are absolutely accurate, but remember that your dealer is able to increase the MF as much as he wants but cant negotiate the RV. So, you may see much higher MFs offered to you than IFS is giving the dealer. . That's where the fun begins! Also, consider the Multiple Security Deposit tactic.. If you want to put money up front to lower your MF (and hence your interest rate and hence your monthly payment), consider MSDs rather than a downpayment. You will get the full amount of the MSD back at the end of the lease unless the car is totaled or stolen.
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Replying to: deekmd (Sep 16, 2007 11:30 pm) Any security deposit or MSD you have paid will be applied to the amount you owe....you don't just lose it...so if you've made 7 MSD's, you will have write a smaller check, but the total amount will be the same as if you paid no security deposit. Now it's very different if you made a large down payment on your lease up front...because that money is gone. In that case, you just lose that money because it is not credited towards the money you owe infiniti. |
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Replying to: ghstudio (Aug 10, 2006 6:27 am) 
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Replying to: deekmd (Sep 16, 2007 11:20 pm) thanks again for the post!!! |
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Leasing for the first time and Looking for 07 M35 with Advanced Tech package. The MSRP is 46595 with no cap cost, no down, no sec dep, no fee and no first payment. The montly is $610 with 12K miles. Please advise if this is good or I can get the monthly payment down. Still reading this forum to get the hang of MF, RVs etc. Thanks.
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Replying to: eusshkr (Sep 20, 2007 1:31 pm) In a nutshell... First negotiate the selling price of the car....msrp doesn't matter. Use Edmunds to see how much over invoice you are paying. Then get the infiniti lease rates from the dealer (and post them here so we can check). You already know..no money down up front...you will pay an origination fee (bundled in the lease) and probably a dealer administrative fee (if you can't talk them out of it). Finally, if you have the money, consider multiple security deposits which will reduce your payments. Much info on this in this forum (mostly by me). Post here (before you sign) MSRP Actual Selling price of car (your negotiated price) lease term money factor being used residual value (as a percent of MSRP) Finally....check other length leases. You may find that the 24 month lease saves you money...or the 39 month lease. Have the dealer run them all...then look at total cost per month to drive the car and use that to compare leases. Good Luck
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Replying to: Car_man (Sep 07, 2007 2:21 am) Can you please provide the current residual and MF for a 2007 Infiniti M35X (AWD) for a 39 month lease with 15k miles per year? Also are there any curent cap cost incentives? Thanks
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I'm interested in 24, 36, or 39 month lease deal on M45. The MSRP on the car I'm looking at is $54,565. Edmunds say's I should pay no more than $50,795 or $798 over invoice. Let's assume I can get the car for $50,795..what is the best option/deal for me a 24,36,or 39 months? I noticed a few post here showing a money factor on a 24 month lease is .0001. I can make Multiple Security Deposits too. Thanks |
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Replying to: scottw58 (Sep 24, 2007 6:11 am) Here is the info you requested on 2007 M45 Sport with tech package and splash guards 36 months $664 51% residual .000046 money factor 39 months $642 50% residual .00023 money factor Payments include 7% sales tax, 12k year and 1st month down
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Prices Paid: Buying & Leasing Experiences Infiniti M35 / M45 Lease Questions
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