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Prices Paid: Buying & Leasing Experiences Nissan Murano Lease Questions
1227 messages, Last post on Dec 01, 2009 at 4:38 PM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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just leased a 2007 nissan murano awd with touring and wanted to get your thoughts on the deal: Paid upfront: 897.61 (first month- 443,DMV,Dealer Fee,Doc,Inspection-454) new york taxes and bank fee rolled in. 39 months/12k miles. thanks |
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Replying to: nismur (Aug 25, 2007 3:17 pm) I'm not carman but let me throw in my two cents anyway... There are two cardinal rules in leasing (1) ALWAYS establish sell price first and (2) Know how to compute the lease payment. That said, let me give you some methodology or a general framework in which to work. I'm a big believer in educating people and have a very strong academic orientation. I subscribe to the belief that if you take a man fishing, he'll eat for a day; but, if you show a man how to fish, he'll eat for a lifetime. Check edmunds or kbb for MSRP/Invoice pricing as well as customer/dealer incentives so that you can arrive at a reasonable selling price. In leasing lingo, this is called the agreed upon value. Here are all the piece parts that you'll need... MSRP (V) Agreed Upon Value (Sell Price) (S) Security Deposit Requirement (e.g., Payment w/tax rounded to the next $25 or $50) (Q) Acquisition Fee/Doc. Fee (T) Sales Tax Rate and the method your state uses to compute sales tax (K) Capitalized Cost Reductions (Cash/Trade Credit) (F) Amounts Financed (capitalized) or rolled into the lease (M) Cost of Money (i.e., money factor/interest rate) (R) Residual Value = Residual Factor (%) x MSRP but see 3(b) below (N) Term (months) Next, we'll need the following identity... A = V + F - K where... A = Adjusted Capitalized Cost Now, you're well positioned to compute the payment... Base Payment (P) = M x (A + R) + (A - R)/N Most states compute sales tax on the payment streams... Payment w/tax = P x (1 + T) Other states, like Ohio, compute sales tax on the total payments. Others, compute payment on the depreciation and, of course, there are those that compute sales tax on the agreed upon value. Sounds as though Indiana computes tax on the payment streams. Some important things to know... (1) Money Factor/Interest Rates... (a) The interest rate can be estimated by multiplying the money factor (0.00XXX) by 2400. (b) ALWAYS ask for the base rate or what is sometimes called the buy rate. Both mean the same thing. A fund provider's rates have a tiered structure. For example... 0.00150 + 0% reserves (buy rate) 0.00160 + 1% reserves 0.00170 + 2% reserves etc. Reserves are similar to points paid for a mortgage loan. For instance, 1% reserves means that the dealer receives compensation from the fund provider in the amount of 1% of the adjusted cap cost (excluding acquisition fee) as a reward for writing the lease at a higher rate. And so, reserves are a potential profit center for dealers. The customer never sees it because the reserves are embedded in the cost of money whether it be in the form of a money factor or an interest rate. If the dealer insists on reserves, I always deduct the dollar equivalent from the sell price. (c) Most fund providers use a money factor. However, a few (e.g., Ford Credit, GMAC) use an interest rate. (2) Acq Fees/Doc Fees (a) Acquisition fees are charged by the fund provider for preparing documents and booking the lease. Doc fees are charged by dealers and are another potental profit center. Be careful, though, some dealers will add a profit margin to the acquisition fee. It's best to call a few dealers and inquire about a given fund provider's acquisition fee. Doc fees should run between $50 and $250. (3) Residuals (a) Residuals are fixed by the fund provider and can't be changed or manipulated by the dealer. Accordingly, residuals are non-negotiable. The industry bench mark is the Automotive Lease Guide's (ALG) residual factors. They are the standard by which all others are judged. And so, I would want to know the ALG residual for comparison purposes. Most banks use ALG residuals. However, the finance captives often self insure their residuals and are free to set them as they deem fit. (b) Dealer add-ons are often not fully residualized because fund providers know that dealers inflate the costs of adds. And so, they'll limit the cost of adds. For example, a dealer installed moon roof retailing for $1800 might be limited to only $1000. And so, a car with an MSRP of $30,000 before the add would have an adjusted MSRP of $31,000 after the add. It is the adjusted MSRP that the residual calculation is based. (4) Capitalized Cost Reductions (a) If you can avoid making a down payment, you would be well advised to do so. A car is a depreciating asset. Furthermore, if you total the vehicle, it's not likely that you'll recover all or even a portion of your down payment. (5) Security Deposits (a) Some fund providers will waive the security deposit in exchange for a slightly higher money factor. This is usually a bad idea. Others (e.g., BMW), will lower the money factor in exchange for multiple security deposits (MSD's). This can be a very good deal. See the BMW Series 3 forums. Based on the second set of data that you provided, I'll assume that $33,491 is the sell price and also the adjusted cap (I could be wrong but you didn't provide any details to conclude otherwise). Are you financing (F) anything in this lease and are there any cap reductions (K)? I'm assuming that there are no capitalized items or reductions. Therefore, the base payment is calculated as follows... P = M x (A + R) + (A - R)/N = 0.00045 x (33,491 + 16,840.60) + (33,491 - 16,840.60)/42 = 419.09 Payment w/tax = 419.09 x (1.06) = 444.24 You need to double check your data with the dealer including the money factor, adjusted cap cost, residual value, and term because all of these taken collectively determine the base payment. Apparently, something is missing if the dealer claims that the payment w/tax amounts to $459.82. At lease origination, you'll pay... 1st payment + tax Security Deposit Acquisition Fee (Nissan's is $595) Dealer Doc Fee (if any) Tax on any down payment License, title, fees As far as waiting til September, it's a gamble because September terms aren't available yet as far as I know. It's likely that the residual will be lower which exerts downward pressure on payment. However, here is a link to Nissan USA's current lease offer good through September 4... http://www.nissanusa.com/summersalesevent/sse.html?model=murano&intcmp=BLSE.- - - PFA.VLP.BLSE_Offer.Button Looks as though the money factor and residual used by Nissan are 0.00031 and 51%, respectively, for 39 months. Suggestion... Create a one page lease proposal similar to mine found in the Infiniti, Acura TSX, and Mercedes Benz S Class forums. It will save you lots of money, time, and aggravation. The key to negotiating is DON'T. Once you have established the sell price, everything else falls in line. As the |
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Replying to: Car_man (Aug 03, 2007 1:16 am) I am looking at purchasing a 2007 Nissan Murano SL AWD w/ Touring Package. My out of pocket expense is first month + DMV fees. Is $449/month which includes 6% taxes a good deal? This is for 15k/year mileage and 42 months term. Looking forward to your reply.
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Hello, I just signed a lease and am wondering if it was a good deal. I wish I had come across this site before signing. Can you please let me know if it was a good deal or if I could of done better. MSRP: $36,980 Selling price: $33,800 Title/Reg/Acquistion/Admin fees: $795 Total Gross Capitalized Cost: $34595 Money factor: ? Out of pocket: $1500.00 Rebate: $500 Net Trade-In Allowance: $1046 Capitalized Cost Reduction incl trade allowance: $2574.40 Tax on Capitalized Cost Reduction: $71.92 First Month Pymt: $400.68 Total Due at Signing: $3046 Residual value : $18041.80 Lease terms: 39 months Monthly lease pymt with 7% taxes: $400.68 Mileage: 12k/year Looking forward to your reply.
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Hey car man, Just want to thank you for all of the info you give out in this forum, no doubt it has saved thousands of dollars collectively. I'm looking to get into an '07 Murano Lease for 39 months with either 12k or 15k miles (undecided on mileage). A few questions: 1) Do you have September money factor and residuals for 39 month Murano Leases? 2) Any differece in residual with 12k or 15k miles/yr? 3) When I'm negotiating can I factor in the $1500 Cash to Customer Rebate into the deal or is that only for purchases? Thanks in advance.
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Replying to: thebordcu (Aug 09, 2007 7:36 pm) Car_man Host Prices Paid: Buying & Leasing Experiences Forum |
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Replying to: jaynaps (Aug 12, 2007 11:13 am) Car_man Host Prices Paid: Buying & Leasing Experiences Forum |
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Replying to: kevin86 (Aug 19, 2007 1:50 pm) Car_man Host Prices Paid: Buying & Leasing Experiences Forum |
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Replying to: nismur (Aug 21, 2007 10:42 am) Car_man Host Prices Paid: Buying & Leasing Experiences Forum |
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