Last post on Aug 30, 2008 at 11:03 AM
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Car Leasing, Car Financing
#154 of 193 Re: Gap Trap? [janda1]
Jul 14, 2007 (8:03 pm)
You do not need to buy Gap insurance to qualify for the rebate or the financing. You have a slimy financing guy who is simply trying to get as much money out of you as possible. If it was required by Nissan, it would have been spelled out in the rebate. Gap insurance is good if you have a car that depreciates quickly; you have a long term loan and you put very little to no money down (or have negative equity rolled into the loan).
Personally, I would pass on the $599 Gap insurance from your dealer. If you feel you need it, check with your insurance agent. Some insurance companies sell gap insurance. The nice thing is it's cheaper and you can cancel it once you are no longer upside down on the loan.
What are the terms of the loan and how much are you putting down?
#155 of 193 Re: Best SUV Lease Deals! [aepheme]
Jul 14, 2007 (8:03 pm)
Never seen someone compare the Ratio of MSRP to lease payment before to shop cars.
You know that just means the MSRP is highly inflated or the residual is highly inflated.
A 40,000 dollar car using realistic residuals and money factors should lease for 700 something a month with no money down.
#156 of 193 Re: Best SUV Lease Deals! [british_rover]
Jul 15, 2007 (6:00 am)
I think that the Ratio of MSRP to Lease Payment is easily one of the best measures to shop for cars. I'm surprised it's not more widely used. It essentially answers the question:
"How much car am I getting for my payment?"
Alternatively, you could just look for the lowest Lease Payment, but that's not a great metric. In the following scenario:
BMW 3-series - $375/month
Ford Taurus - $350/month
The Taurus is cheaper... but not a "better deal". Most people would probably jump all over the BMW even though it's more expensive. That's where looking at the lease payment in relation to MSRP is valuable.
And -- in the majority of lease deals, you're looking for an inflated residual! Otherwise, it makes more sense for you to purchase the vehicle, finance it for 2-3 years, then sell it yourself.
(A better metric would be Edmund's TMV to Lease Payment, but that makes things complicated. MSRP is decently correlated with TMV.)
#157 of 193 Re: Best SUV Lease Deals! [aepheme]
Jul 15, 2007 (7:43 am)
I agree, aepheme. MSRP/lease payment is the surest way to calculate lease value.
#158 of 193 Re: Best SUV Lease Deals! [cccompson]
Jul 15, 2007 (4:40 pm)
For those who are interested: I was curious how much over invoice cars are going (in terms of TMV) for in the JD Powers "Premium CUV" Category. There are 14 cars in that category (and 2 in the "compact premium" category). All listed below are 2007 AWD 6 cyl versions:
1. Lexus GX470 - 7.7%
2. BMW X5 - 7.2%
3. BMW X3 - 6.6%
4. Acura MDX - 5.7%
5. Audi Q7 - 3.3%
6. Acura RDX - 3.0%
7. Lexus RX350 - 2.3%
8. Lincoln MKX - 1.4%
9. Volvo XC90 - 1.3%
10. Volkswagen Touareg - 1.2%
11. Volvo XC70 - 1.1%
12. Infiniti FX35 - 0.3%
13. Mercedes ML350 - NEG 0.5%
14. Mercedes R350 - NEG 1.2%
15. Cadillac SRX - NEG 3.4%
16. Saab 9-7X - NEG 12.1%
There are a number of reasons why a car's market value may vary from the invoice. The manufacturer could have a systematic pattern of marking their cars too high. The market conditions could be such that specific models aren't selling as well as expected. Or the car could be ill received by the customer base and difficult to sell... Or maybe there's just a temporary discount to encourage early sales.
Anyway, it's interesting to see. More data!
#159 of 193 Re: Gap Trap? [dtownfb]
Jul 19, 2007 (11:32 am)
Great advice. my insurance company charges $39.00 a year for GAp.
Slimy checked with his "District Manager" and stated we do not need to take the Gap and they will apply the rebate anyway. Very nice. The finance rate is .7 percent for 36 months. The price I got was for the sentra SL with mats 18,200 minus $1000.00 in rebates. After tax ($300), and Doc fees (bogus) of $394.50, registration and tag fees $49.00 and $39.00. Out the door for $17989.50
PS car arrived but my wife found a paint defect on the right rear pillar. Sales Manager says that he would not let us by the car with that problem. He is now looking for a new one for us. Should be in in three days. Do you thik I should haggle the Doc fee or am I getting overly greedy?
#160 of 193 Re: Gap Trap? [janda1]
Jul 20, 2007 (8:24 pm)
Assuming the price of the car includes the destination charge, you did pretty well. Not sure how much leverage you have since the ony thing you are waiting for is the actual delivery of the car. YOu can always ask. But it seems like you are happy with your current deal.
#161 of 193 Re: Gap Trap? [janda1]
Jul 21, 2007 (2:14 pm)
It would be just as easy for them to switch out the rear spoiler if the can't get another car.
#162 of 193 Re: Gap Trap? [dtownfb]
Jul 23, 2007 (6:05 pm)
Heard today they found a car 300 miles away and will be ready at noon tomorrow. Comes with a couple of extras,mouldings and wheel guards. Manager says no charge.
We shall see tomorrow how things turn out.
Also that deal did include delivery.
#163 of 193 Re: Gap Trap? [greanpea68]
Jul 23, 2007 (6:07 pm)
Good point Greenpea. Latest is they found a car 300 miles away with side mouldings which the sales manager says will be no charge. Supposed to be ready tomorrow.
SO far so good.
Thanks for the advice.