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2013 and earlier Nissan Maxima Lease Questions

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Comments

  • mdxfan3,

    I live in Ohio and just leased a Maxima yesterday.

    MSRP - $37,870
    Selling Price - $32,985
    Cap Cost Reduction(lease Incentives) - $2,000
    Net Selling Price $30,985
    Money Factor - .00047
    Residual - 52%
    39 Month Lease/12k per year
    Monthly Lease Payment - $375.00 including tax
    Paid $375 at signing(first month payment)
  • mdxfan3mdxfan3 Posts: 13
    Midastouch,

    Thanks so much for the helpful info! That's exactly the kind of deal I was looking for. Would you mind sharing the dealership's name and salesman's initials? I'm just outside Chicago. Ohio is a bit of a hike, but to save an extra $2K, I could see doing it. And who doesn't love a Saturday road trip after all? :)

    Or if you'd prefer, you can email me directly at: key002 at gmail dot com.

    Even if you don't, you've given me hope. Thanks Midas!
  • These are the numbers I received from my local dealership..

    MSRP 39,5XX
    I receieved no selling price
    I have a trade in that they would value at $3,000 that covers taxes and fees
    $410 a month
    He told me that they could not issue the Residual Value which I know is bull.
    $500 Deposit
    15k MIles
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    You're welcome, fsrtwo. At lease signing most banks charge vehicles' first month's payments, a security deposit equivalent to that payment rounded up to the nearest $25 or $50 increment, and a bank or acquisition fee. I believe that NMAC is currently waiving its security deposit requirement on leases of this model. Its acquisition fee is $595.

    Car_man
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    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    I'd be happy to help you out, bearstearns1.

    Nissan Motor Acceptance Corp.'s August buy rate lease money factor and residual value for a 36 month lease of a 2010 Maxima SV with the Premium Package and 12,000 miles per year are .00047 and 54%, respectively for consumers who qualify for its top credit tier.

    NMAC charges a $595 acquisition fee on every vehicle that it leases.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    They want you to put a little money down because the dealer has to spend time and money to swap for the exact car that you want for you. Suppose that they jumped through all sorts of hoops to get your car and then you backed out of the deal. Deposits on swaps are a fairly normal request.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Greetings mdxfan3. Here you go.

    Nissan Motor Acceptance Corp.'s current buy rate lease money factor and residual value for a 39 month lease of a 2010 Maxima 3.5 SV with 15,000 miles per year are .00047 and 52%, respectively.

    The residual value for a lease with only 12,000 miles per year would be 2% higher.

    Nissan is currently providing $500 bonus cash on this car that you should make sure to take into account during your negotiations. It has another $1,000 cash incentive on leases on top of that in certain areas. I can tell you if this additional cash is available in your area if you tell me what state you are in.

    Car_man
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    Prices Paid: Buying & Leasing Experiences Forum
  • azax456azax456 Posts: 18
    Just got a Maxima SV w/ Sport and Tech

    MSRP 39,6XX, over 40K with dealer add on's
    39 month, 12K
    Top tier credit
    Not a SINGLE penny down
    All taxes (9.1%), fee's rolled in
    $440 month
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Congratulations on getting your new Maxima, azax456. Great car. Thanks for taking the time to share the details of your deal with everyone.

    Enjoy your new ride :shades: !

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • almbflalmbfl Posts: 1
    Hello Car_man,

    Can you please share the Nissan Motor Acceptance Corp.'s current buy rate lease money factor and residual value for a 39 month lease of a 2010 Maxima 3.5 S with 12,000 miles per year. Also, is Nissan currently providing any incentives in South Florida?

    Thanks in advance.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hello almbfl.

    NMAC's August buy rate lease money factor and residual value for a 39 month lease of a 2010 Maxima S with 12,000 miles per year are .00093 and 54%, respectively for consumers who qualify for its top credit tier.

    When negotiating your deal on this car, make sure to take advantage of the $500 bonus cash and $1,000 lease cash that are currently available on leases of it in Florida.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • carzcarz Posts: 20
    Nemet, see Brian D, I just got a Silver SV from him.
  • carzcarz Posts: 20
    It is true, there was in July a $3000.00 lease rebate. It may still be available. I got my SV lease in July for $331.00 + $500.00 down, 39 months, 12,000 mi, all taxes and fees included in the payment. The car is equipped with:

    Monitor Pkg
    Cold Pkg
    Spoiler
    Mats
    Mud Flaps
  • r_sankar_sanka Posts: 3
    Car_man

    What are your thoughts about this deal? I’m trying to make heads or tails of it but the terms are a little different than what everyone else is posting… not to mention the payment. I did have some negative equity so that might explain the payment. Did I get taken?

    2010 Maxima – MSRP $37,850
    Tech Pkg
    Monitor Pkg
    Cold Pkg
    Splash Guards
    Floor Mats
    HID Headlights

    Gross Capital Cost - $40,311
    Capital Cost Reduction - $1,468
    Adjusted Capital Cost - $39,437
    Residual - $19,303
    Rent Charge - $1,076 (??)
    39 Month Lease/15k per year
    Paid $478 at signing (Excellent credit)
    Trade in (08 Mitsubishi Eclipse Spyder GS – (owe $18,000, they said they would give me $12,000)

    Monthly Lease Payment - $576 (including tax)
    :shades:
  • delta737hdelta737h Posts: 603
    edited August 2010
    r sanka,

    I'm obviously not Car_man but let me throw in my two cents. It's hard to say whether you got taken or not because you didn't provide enough information. The two most important items in any lease transaction are the selling price and cost of money (money factor/interest rate). The payment of $576, including tax, doesn't help at all unless you disclose your state and sales tax rate.

    Have you signed a lease agreement? If so, do you have a copy? If the answer to both questions is yes, then all relevant numbers (except money factor and residual factor) should be disclosed. If no lease agreement exists, then I suggest that you ask the dealer for a copy of their LEASE WORKSHEET. This is a computer generated document that discloses all pertinent information including all items listed below. The beauty of this document is that it never lies.

    Ball park or rounded numbers don''t cut it. Every number disclosed must be to the penny. For example, is your payment exactly 576.00 or is it 575.91 or 575.72 or ... ??? ... Every lease has the following components. It would be helpful if you could fill in the blanks with exact numbers.

    MSRP........................................................ 37,850.00

    Sell Price................................................... _________

    Amounts Financed
    Negative Equity.......................................... 6,000.00 ? (18,000.00 - 12,000.00)
    Anything Else?.......................................... __________

    Gross Cap.................................................. 40,311.00
    Cap Reduction............................................ 1,468.00
    *Adjusted Cap............................................. 38,843.00 (Something is wrong- see below)

    Residual Factor.......................................... 51% ???
    Residual Value........................................... 19,303.00 Is this exact???

    Money Factor............................................. ________
    Term.......................................................... 39

    Monthly Payment with or without out Tax..... _________
    Sales Tax Rate.......................................... _________
    State........................................................ _________

    You also need to itemize all items paid at lease signing. Acquisition fee? Doc fee? DMV fee? Are these paid at lease signing or are they financed in the lease? How could you pay only $478 at signing IF your monthly payment is $576?

    * You've indicated the following...

    Gross Cap.................................................. 40,311.00
    Cap Reduction............................................ 1,468.00
    Adjusted Cap.............................................. 38,843.00

    Gross Cap - Cap Reduction = Adjusted Cap

    40,311.00 - 1,468.00 = 38,843 not 39,437.00 What's going on?

    A NOTE ON CAP REDUCTIONS...

    I do not advise making a cash down payment (i.e., cash cap reduction). A car is a depreciating asset and is purchased for consumption; and so, it's an expense and not an investment. No savvy investor would ever invest in stock that they know will depreciate or lose value over time. Also, if the vehicle is lost or stolen and never recovered, the insurance carrier will only pay ACV (actual cash value or est. market value). If your lease balance exceeds the ACV (called the GAP), your GAP protection will cover the difference. This GAP narrows the larger the down payment. Large down payments can cause the ACV to exceed the lease balance (negative GAP). In such cases, you necessarily risk losing part or all of your cap reduction if your car is totaled or stolen but never recovered.

    A NOTE ON MONEY FACTORS...

    With excellent credit, you should get the money factor with 0% reserves which means zero dealer financing profit. It's the lowest money factor that a fund providers offers to those with outstanding credit.

    Hope this helps.

    John
  • kingpcgeekkingpcgeek Posts: 985
    I think most people's opinion on this deal is going to be he same. Don't roll $6,000 of negative equity into a new car. Hold on to your current car for a couple of more years.
  • r_sankar_sanka Posts: 3
    edited August 2010
    John a.k.a delta,

    Thanks for the reply… your post was very helpful!!

    This is my first time leasing, I’ve always bought in the past instead of doing the lease thing. Since I’m new to leasing I did my homework and searched the internet, but when it came down to talk numbers the dealer started throwing out terminology that I wasn’t familiar with and the numbers to me don’t add up. When they go over the numbers it makes sense and of course they add up.

    I 100% agree that I shouldn’t roll $6k negative equity into the deal but… with a growing family the two-door convertible wasn’t a great option and we figured in 39 months when the lease was up we can walk away and not have any negative equity towards the purchase of our next car and have the four-door family car in the mean time. They said they couldn’t show negative equity on the lease so they would pay off the trade without discounting the Maxima.

    The numbers in the previous post are the numbers and terminology from the lease agreement. To my understanding ‘Adjusted Capital Cost’ is the same as ‘Sell Price’. They never mentioned ‘money factor/interest rate’ and the payment of $576.51 is based on $543.88 (base monthly payment) + $32.63 (tax). I’m located in Pensacola, FL and the tax rate is 6.5%.

    How do you figure out the ‘money factor/interest rate’??

    According to the lease agreement, the $2,000 rebate and the $478 I paid went for the registration fees, first month’s payment and towards the negative equity from the trade in.

    I typed the wrong number last night for the Gross Capital Cost, it should be $40,906.65 not $40,311.65 (Agreed Vehicle Value).

    Numbers according to the lease agreement:
    Gross Capital Cost - $40,906.65
    Capital Cost Reduction - $1,468.68
    Adjusted Capital Cost - $39,437.97
    Residual Value - $19,303.50

    Does it make sense now??

    I appreciate you take the time and explaining the numbers!

    Thanks,
    Ron
  • delta737hdelta737h Posts: 603
    edited August 2010
    Hi Ron,

    With $6,000 worth of negative equity I was wondering why you just didn't "hang-in" a while longer but figured you had your reasons which are generally personal in nature.

    You made the statement....

    "To my understanding ‘Adjusted Capital Cost’ is the same as ‘Sell Price’."

    There are four basic lease formulas...

    (1) Selling Price + Amounts Capitalized (financed) = Gross Cap
    (2) Gross Cap - Cap Reduction = Adjusted Cap
    (3) Residual Value = Residual Factor x MSRP
    (4) P = F x (C + R) + (C - R)/N
    P = Base Monthly Payment
    F = Money Factor
    C = Adjusted Cap
    R = Residual Value
    N = Term

    Just plug in the numbers for any 4 of the 5 variables and solve for the remaining one. Using some algebra, we can solve for the money factor, F, as follows...

    F = [P - (C - R)/N] / (C + R)

    Substituting all known values, we get F = 0.00047. Not bad! This equates to an interest rate of about 1.128% (24 x 0.00047) suggesting that it (money factor), in all likelihood, reflects the buy rate which is the fund provider's lowest rate offered to those with excellent credit. So, I'm comfortable with that.

    Now, let's try to fill in some of the blanks from my previous post...

    MSRP........................................................ 37,850.00

    Sell Price (S)............................................. _________ ???

    Amounts Financed

    ????????????.......................................... __________ ???

    Gross Cap.................................................. 40,906.65
    Cap Reduction............................................ 1,468.68
    *Adjusted Cap............................................. 39,437.97

    Residual Factor.......................................... 51%
    Residual Value........................................... 19,303.50

    Money Factor............................................. 0.00047
    Term.......................................................... 39

    Base Monthly Payment (pre-tax).................. 543.88
    Fla Sales Tax Rate..................................... 6.5% should be 6.00% ???
    Monthly Lease Payment............................. 576.51 (This is based on 6.00%)

    As you can see, the most important item is still missing, namely, selling price. This is identified in the lease agreement as the "Agreed Upon Value". If they didn't discount the vehicle, then the selling price must be at least equal to the MSRP of 37,850. So, the strongest statement that I can make, regarding selling price, is that it must be somewhere between 37,850 and 40,906.65 inclusive.

    Your statement...

    "According to the lease agreement, the $2,000 rebate and the $478 I paid went for the registration fees, first month’s payment and towards the negative equity from the trade in."

    begs a lot of questions. For instance, what happened to the remaining negative equity and exactly how much is it? What are the DMV/registration fees? How much was the doc fee and acquisition fee and how were they paid; upfront or rolled into the lease? You still need to itemize all items paid at lease signing as well as all items capitalized and account for every penny. Your lease agreement should clearly show all of these items and how they were paid.

    Although we've made some progress, there still remains unanswered questions. Until those questions are answered, I can't determine whether or not you got a good deal.

    John
  • r_sankar_sanka Posts: 3
    John,

    They didn’t give me the final numbers for my trade-in. At first they said I had about $6k in negative equity but the payments were going to be around $675 per/m with $1,000 down on a ‘cloth’ Maxima with no packages. The next day they came back with a Maxima that was equipped like we wanted (the one we ended up getting). They said they would have to pay off my trade-in since they can’t show any negative equity on the lease. My pay off was $18,800… I looked up trade in value and it is about $14,000 while retail was about $15k. While shopping around most dealers were offering us wholesale $11k - $12k.

    Here are some more numbers off the lease agreement.
    Capitalized Cost Reduction - $1,468.68
    First Month Payment - $576.51
    Registration Fees - $271
    Tax on Capitalized Cost Reduction - $88.12
    Sales Tax Paid in Advance - $5.19
    FL Fees - $68.50
    Total - $2,478 Due at signing ( - $2,000 for the rebate) = $478 down

    The Agreed Upon Value - $40,311.65

    Would ‘Total Gross Capitalized Cost’ be the same as amount financed? If so that is $40,906.65 (agreed upon value $40,311.65 + acquisition fee $595.00)

    Does that help?

    Thanks again for your time!

    Ron
  • delta737hdelta737h Posts: 603
    edited August 2010
    Ron,

    The dealer's claim that they can't show negative equity is hogwash. I can't stress enough that you must hold them accountable for every penny. Their Agreed Upon Value most likely includes negative equity. And so, you have no idea what the actual sell price or negative equity amounts to because I think you're taking the dealer at their word. The only thing you know is that the sell price plus negative equity = 40,311.85. You need to know both sell price and negative equity to the penny.You get those by relying on yourself; not the dealer.

    You need to determine you loan payoff and the trade-in value of this vehicle. The difference is your net equity. DO NOT rely on the dealer to get the payoff. I always keep spreadsheets of my loans so I don't have to rely on anyone to tell me the loan payoff. You also need to research the selling price by checking Edmund's invoice pricing and incentives as well as overstock at zag.com for competitive low pricing in your area. In the meantime, I'll make up a selling price of $34,000 for sake of argument. I'll also assume a trade value of $12,000 and a loan balance of $18,000 yielding a negative net equity position of $6,000.

    Once you get exact info, you need to construct a one-page lease proposal similar to the one below. Otherwise, the dealer is going to continue to control the deal and you're going to continue to be in the fog.

    So, here is a hypothetical lease proposal. Notice the flow and how it's constructed.

    MSRP........................................................ 37,850.00

    Sell Price (S)............................................. 34,000.00

    Amounts Financed
    Negative Equity......................................... 6,000.00
    Acquisition Fee......................................... 595.00

    Gross Cap.................................................. 40,595.00 Sell Price + Amounts Financed
    Cap Reduction............................................ 1,400.00
    Adjusted Cap.............................................. 39,195.00

    Residual Factor.......................................... 51%
    Residual Value........................................... 19,303.50

    Money Factor............................................. 0.00047
    Term.......................................................... 39

    Base Monthly Payment (pre-tax).................. 537.53
    Fla Sales Tax Rate..................................... 6.00%
    Monthly Lease Payment............................. 569.78

    Amounts Due at Lease Signing...

    1st Month's Payment................................. 569.78
    Cash Cap Reduction..................................1,400.00
    Sales Tax @6.00% on $1,400 Cap Reduc... 84.00
    Registration Fee....................................... 271.00
    Fla Fees.................................................. 68.50
    Sales Tax @6.00% on $2,000 Rebate....... 120.00
    Cash Rebate Credit.................................. (2,000.00)

    TOTAL DUE............................................ 513.28

    Gross Cap is Sell Price + any amounts financed such as negative equity, acquisition fee, etc. The adjusted cap is the gross cap - cap reductions.

    What is

    "Sales Tax Paid in Advance - $5.19" ???

    This makes no sense.

    I never ever allow a dealer to "run numbers" or control the deal. I do the research and, then, email them a one-page lease proposal. I don't want them to give me numbers or show me their invoice because I couldn't care less as it's totally meaningless and most likely a bunch of horse dump. The only thing in my proposal that I'll likely need to negotiate is the sell price. I've got my spreadsheet fired up and ready to rock 'n roll. And, with just a few keystrokes, bing-bang-boom, Im done!

    The biggest mistake that people make when leasing is that they allow the dealer to dictate terms and control the deal. By doing so, they're basically allowing the dealer to play offense which puts them on defense. You're not going to win a football game if the other team always has the ball. They have put you in the position of having to ask how they got this number or that number. And, that's how they nail you.

    John
This discussion has been closed.