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Prices Paid: Buying & Leasing Experiences Infiniti M35 / M45 Lease Questions
1830 messages, Last post on Nov 16, 2009 at 7:02 PM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Replying to: ghstudio (May 07, 2008 8:49 am) Who needs to tie up all that money to save 2 % interest on a short term lease? I mean c'mon, you are financing like $20,000 over 2 years. It is PEANUTS. God, spend more energy negotiating the deal down $400 bucks, then letting a dealership hold your money for 2 years while they can invest it and make more than 2 %. It is very short sighted. Especially if someone is leasing every 2-3 years and doing this stupid exercise over and over again, never having the money actually work for them in investable assets capturing 6-10%. |
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Well...let's take a hypothetical case. M35 MF .0005 residual 64% 24 months. Let's use this as the base...and let's look at the case where you give four multiple security deposits....MF drops to .0001...everything else stays the same. MSRP $47600 capitalized cost $43175 $595 bank fee rolled into lease. Payment for the base case is: $569.93 Payment for the second case is: $540.03 Savings per month is: $20.90...of for the life of the lease 24 mos, you save $501.60 (24x20.90)...remember everything else is the same... You loan Infiniti credit 2400 (4 security deposits of $600 each) for two years (which you get back) and you saved $501.60 over those two years. Let's forget compounding....you saved $250 each year....and that's 10% of the $2400 you tied up. That's a very good return.... Think of it this way....you could forget the Multiple security deposits and put that same $2400 in a CD for 2 years. At the end of the two years you would have approx $2550 (about 3% per year) in your pocket...and you would have paid 569.93 every month because you didn't use MSD's. Total cost No MSD: 24x569.93 = 13678.32 and you have that $150 you earned on the $2400 sitting in the CD or in the bank....so your total cost is 13528.32 With MSD 24x540.03 = 12960.72 (don't forget you get that $2400 back at the end of the lease...just as at the end of the CD. I didn't take time to check every number...but this is quite close. Now, you can argue that given the total amount you are spending, who cares about $500.....but there is no negotiations involved here...it's just part of the Infiniti lease and you just ask for it...it's fixed. This is painless...and it actually saves you money. As one final case...let's assume you put that $2400 down as a capital reduction up front. Your monthly payments are then $461.50 or a total of 11075.89 plus of course the 2400 = 13475.89. You are still paying quite a bit more than the MSD case.... I hope this clarifies why MSD's save money. Note...Negotiate the best possible lease you can....then just tell them you want to apply multiple MSD's and they will recalculate using your negotiated Capitalized cost (which is the only thing you are really negotiating) and the new, lower MF. MSD's are not for everyone....But if you are going to pay down the lease up front or if you have cash just sitting in a CD,money market or such, MSD's are a very good idea.... |
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Replying to: madrad (May 12, 2008 8:59 am) Car_man Host Prices Paid: Buying & Leasing Experiences Forum
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Replying to: Car_man (May 14, 2008 1:19 am) So I started to think about alternatives...after all, I leased the M for 24 mos because I like change. The 08 M35 is almost exactly like my 06 M (newer nav and a passenger seat that adjusts..that's it). I woke up this am realizing I hadn't really looked at the G....larger engine, slightly lighter car (economy?)...so I went to take a look. Did not drive one (my salesman's day off)..but I did price one out on a lease. Using MSD's, I can lease a G35 with almost every feature for $100 less than my current M....because even though the MF is higher (which I buy down with MSD's), the 24 mo 12K residual is 70%....yes...SEVENTY PERCENT. That's unheard of...and by the way the residual on the G37 for those of you who can live with a 2 dr car is even higher. These are incredibly good deals..... The G even has a few features over the M that are actually important to me. One is the sports seats where the bottom cushion can be extended to support my long legs...and retracted so my much shorter wife is comfortable..and it does that on both driver and passenger sides. The other is paddle shifters which should be fun on an engine that's more powerful than the M's on a lighter car. I give up some seat room...but there's enough room for two if I'm not driving across country. I think my search has ended.....I'll drive one tomorrow.
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Replying to: paps1 (May 12, 2008 11:34 am) 
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hey carman, What are the money factors and residuals on the M35x with 10K for 36 and 39 months for May. I've seen a couple different numbers. Thanks
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What is the current residual and MF for a M35: 12K 39 mos 10K 39 mos Thanks.
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Still contemplating, I've got an offer to buy a 2007 new m35 sport black and black with nav/ tech package for $40,000 (good deal)? or would I be able to get it lower. it would be financed with money down The 2008 m35 would be a lease for 24 or 36 mth around 650 to 750 per month. the 2008 m35 offers the nav tech package as well. anyone suggestions. is this a car for the long run or short run. I see many of them seem to lease it and then return it. is it better to lease or get get it financed and buy the car. any suggestions or opinions would help.
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Replying to: kimokaka (May 15, 2008 12:49 pm) M35x for the terms you requested are as follows for the month of May: 36M - Residual 54% - .00070 39M - Residual 53% - .00091 Based on 10k annual miles. * Rates may vary by region. |
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Replying to: 2confused2 (May 15, 2008 1:17 pm) Here are the numbers for the terms you requested: M35 39M / 10k - Residual 52% - .00104 39M / 12k - Residual 51% - .00104 * Rates may vary by region. |
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