I was hoping you could verify these numbers for me: 1 Year Lease, $2000 down - G35 Coupe, Auto, Premium and Sport packages - Selling Price: 35,074 - Residual Value: 30,704 - Cash Cap Reduction: 666.59 - Adjusted Cap Cost: 34,407.41 - Money Factor: 0.00006 - Rental price: 312.51 + 25.78 tax = 338.29
MSRP: 33,651 Selling: 30,607 Neg. Equity: 3,324 39 Month Lease MF:.00066 Residual:57% Down: 1,200 426/Mo after taxes (8%) You think this is good deal or no deal or what do you have in mind.
I am trying to lease the 06 G35 cpe with manual transmission, premium package, splash guards, and trunk mat. Would like to lease for 24 months at 12K miles. I am getting quotes of 200 over invoice for price of the car. What can I expect for residual value and money factor? Any help would be appreciated. Trying to get one this weekend in southern california. :confuse:
I was quoted a residual value of 55% for a 36 month lease on a G35 sedan. I thought that was a bit low, but wanted some advice. What are some other typical residual values quoted?
Hello yfzcentral. I can't calculate what this car's lease payment should be without knowing what its MSRP is. Let me know and I'll crunch some numbers for you.
Hi razputin. I am not aware of any source on-line that provides information on manufacturers' lease programs to the general public. I should be able to give you an idea of what the lease program for the car that you are interested in is like though if you tell me the exact model, how long you want to lease it for, and how many miles per year you need to be able to drive it.
Hi poorprof. Yes, Infiniti Financial Services does allow lessees to make multiple security deposits. It provides consumers with a reduction of .00010 for each additional security deposit that they make, up to a maximum of nine.
Infiniti is currently providing $2,500 dealer cash on the 2006 G35 Sedan. This is how the selling price that you saw is below dealer invoice. However, this dealer cash is not compatible with IFS' special lease program. So if you want to lease one through it, you probably will not be able to get a selling price that is below invoice. If you are in an area that has a decent level of competition, figure that you will have to pay a couple hundred over invoice for this car.
Welcome g35nyc. You certainly have an appropriate username. I would be happy to give you my opinion of this deal. It would be a big help though if you would provide me with this car's full MSRP and selling price first. These numbers will show me how much of a discount you are being given and they will enable me to use Infiniti's actual lease program to estimate what your car's monthly payment should be. Let me know and I'll tell you what I think.
Here you go, ej1111. Infiniti Financial Services' current buy rate lease money factor and residual value for a 12 month lease of a 2006 Infiniti G35 Coupe with 15,000 miles per year are a very attractive .00006 and 79%, respectively. The numbers for an otherwise identical 24 month lease are .00166 and 69%. If you were to lease a 2006 Infiniti G35 Sedan AWD for 24 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00003 and 65%. I do not believe that Infiniti is currently offering a 12 month lease on the '06 G35 Sedan. Infiniti is providing dealer cash on '06 G35 Sedans, but this dealer cash is not compatible with its special lease program.
Hi bjakey. Infiniti Financial Services' current buy rate lease money factor and residual value for a 24 month lease of a 2006 G35 Sedan 2WD with 12,000 miles per year are an amazing .00001 and 65%, respectively. The numbers for an otherwise identical 36 month lease are .00087 and 55%.
Hey topgun7. Infiniti Financial Services does allow lessees to make multiple security deposits on leases. Specifically, it provides a reduction of .00010 in vehicles' money factors for each additional deposit, up to a maximum of nine.
Hi lasailor. This vehicle's lease program varies depending upon how long you lease it for and what mileage allowance you need. If you tell me the specific length and mileage allowance that you are interested in I will be happy to give you an idea of what this car's money factor and residual value should be.
Hi paulo6. The car that you described has a spread of around $2,700 between its full MSRP and dealer invoice price. If the capitalized cost that you were quoted does not take any sort of down payment into account, it is a very good deal for a lease of this car. Try to cut back on the amount that you are paying at lease signing. All you are required to pay is your vehicle's first month's payment, a security deposit equivalent to that payment rounded up to the nearest $25 or $50 increment, Infiniti Financial Services' $550 acquisition fee, and any required state taxes or fees.
I'm trying to get my head around this whole leasing issue--a first time lease-er; previously always just purchased. The more I read, the more confusing. Just want to know if I am getting a good deal. On a recent visit to the dealer, they offered the following for a Premium Pkg 35 Coupe.
MSRP 38540 Sale price 36340 12 mo/12k lease residual 30832 (80%) special lease finance rate 1.95%--not sure how this converts into a money factor figure
The dealer is pushing a single payment plan with total single payment = 6329
Two questions: 1. Are these lease terms a good deal? I realize that the dealer needs to make some money, but I want to make sure it is in line. 2. What should I consider before taking a single payment plan other than the interest I am giving up by not having that money in the bank?
You are getting the car for $6,329/12,000 = 53 cents a mile.
Parkway infiniti in Ca had a deal today where they were offering the exact same car for $3000 upfront and $300 a month plus tax = $324.75 for a total of 324.75*11 + 3000 = $6572.25/12000 = 54.77 cents a month. They sold all their cars (or so they said when we went there). You are getting a great deal (in my opinion). Also, suppose you put your money in a CD for 4.3% a year. you will have $6,329 *1.043 = 6600. So, you get the car for $28 more than the Parkway deal. Still well worth it, or better yet, haggle for another $30! :-)
Hi aidanchris. The money factor that you were quotes is right in line with this car's buy rate lease money factor. This is a good sign because it means that the dealer you are working with is not trying to mark your car's factor up to add hidden profit to your deal. The selling price that you were quoted for this car looks excellent as well. It sounds like you are getting a neck of a deal on a really nice car. Enjoy.
Hello choosinu. Infiniti Financial Services' current buy rate lease money factor and residual value for a 24 month lease of a 2006 G35 Coupe with 12,000 miles per year are .00166 and 70%, respectively. $200 over invoice is a very good selling price.
Hi alulrich. Individual dealers do not have the authority to alter banks' published residual values. The 55% residual that you were quoted is right in line with Infiniti Financial Services' current residual for a 36 month lease of a 2006 G35 Sedan with 12,000 miles per year.
Hi zoom10. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.
As far as the specific lease that you were quoted goes, the selling price of the car that you are interested in looks to be around $1,100 over dealer invoice. This isn't terrible, but I have seen community members getting prices that are much closer to invoice lately. You may want to try comparison shopping a little bit. Also, Infiniti Financial Services' current buy rate lease money factor for a 12 month lease of an '06 G35 Coupe is only .00006 if you pay a security deposit at lease signing and qualify for its top credit tier. The factor that you were quoted is higher than this. Make sure that the dealer you get your car from uses its buy rate money factor to calculate its monthly payment.
Thanks car_man....just picked up my car yesterday. I paid Total up front of $2000 (icludes first month, Acquisition fees, etc...) and my monthly payment now is a total of $320 OTD. This is for a 24mos-12K/year. on a 6MT Sedan with Aero pkg, sunroof, no premium. I think I got a good deal. Cost/mile comes out to: 0.39
if the msrp was 37530, invoice was 34360 and neg price was about 35,500 what would you calculate the 24/30k lease price to be? I saw an earlier post which stated the MF was .00003 and res is 65% but I think my math was off because payment seemed way to low.
I live in Indiana, 6% tax rate. 2,000 down (includes 1st payment) 399 / month 2 year lease at 12,000 miles per year. Includes all taxes & fees. Dealer says they are at $200 over invoice.
he hasn't yet told me what money factor, residual and selling price are yet. he wants to "discuss that in person" of course.
another question- would i be better off putting $2k down to cover 1st month, fees & capcost reduction, or doing about the same amount of moneys worth of MSDs?
G35 sedan with Premium B, Sports Suspension,Aero, Nav and Splash guards . Retails for $38,800. If I get the cap cost to $200 over Invoice, it will be $35,650. On a 36 month lease with 8 MSDs, MF=0.0007 with 56% RV for 10k mi. With the minimum to drive off, it comes to $375 a month plus tax. Is this the best deal on the car?
Also, the 24 month lease is cheaper per mile (, but I want the car for 3 years. Does it make sense to pay more for a longer lease?
Here's my deal g35 coupe 6MT premium package Nav system Rear active steer sunroof, splash guards, side molding, trunk mats MSRP 39930 price 36900 1 year/15k miles 1800down, 506/month
I believe I got a good deal. I've been on this site religiously for the past few weeks. Hope this helps. Thanks to everyone who posts and to carman.
I was at an Infiniti dealer today and after 15 minutes of negotiations, the Internet manager offered me any G35 package for lease at $500 below invoice (plus $40 for Costco membership!) They dont have the color with the equip I want but they are trying to get it for me. If they cant find it, and I dont take another color, they will cut me a good deal on an M class for close to invoice. They are offering a 36 month lease for a car with MSRP of $38,800 with a cap cost of $34,725 through IFS with 8 MSDs and $650 cap reduction (reduces the MSDs) for $349 a month plus tax and regular drive off. Great people there too.
car_man, could you please let me know what a lease would look like on an 06 G35 6MT (Prem + Aero) @ 24/15k ? Is it worth waiting until after the new year, or will it not make any difference (not sure when they have special lease rates).
Allera, if you want an 06, you can't wait until the new year. With 07 (a new design) coming and 2500 rebate for purchase and low money factor for lease, dealer are going to clear off the 06 in the next month or so.
I have seen the concept for what was supposed to be the 07 G35 and it does look slick, but will it really be the G35, or will it be an 07 G37 or 08 G35/G37?
I am faced with a "either wait to see if that redesign comes out and miss out on my leasing options now or lease now and get the new design later." Do you (or anyone) have any information on the redesign?
Curious how this deal looks? This is my first post, but I've followed the board...great information. 06 G35MT w/ premium, aero, sirius. MSRP is $35950. Terms are $996.50 at sigining and $459/mo for 24 or 36 months with 15k year. I'm in SC (tax here is set @$300). I'm trying to get more info (residual, cap cost, money factor, etc) as this was internet quote. Thanks for any responses or thoughts.
imshane54, I also have more details from my post above for a 6MT sedan w/ premium, aero, sirius. MSRP is $35950 and terms are $996.50 down with $459 month for 24 months/30k miles. Here is the breakdown from the dealer: The $996.50 consists of 1st payment, $198.50 doc fee, $300 sales tax, and $39 for a new tag. The money facto is less than 1% interest. The sales price is $33035.67. No multiple security deposits and the resid val is 64%. Hope this helps! Any thoughts on this offer??
the residual look pretty good and the money factor is not bad either (especially with the multiple deposits). I ran some number for the top of the line G35 (roughly at 39000 with 500 acquisition fee, pay MSRP) for 36 months and it come out to about 490 depreciation + 127 rent for a total of 617 + tax a month on top of the drive off. And if you can negotiate a better price or have less option, the lease will go downn from here. Let see what Car_man has...
It is for an 07 G35. Check for yourselves in the Freshalloy site. Your number is for 06 G35. Remember the two are entirely different model with Nissan subsidising the 06 since they want to clear out the inventory.
This was posted by the Internet Manager for South Bay Infiniti on another board:
2007 Infiniti G35 Sedan and Coupe Lease Rates (27 views) (27 thread views)
Message: 2007 Infiniti G35 Sedan
24 mo/15k mi – Residual Value 68% of MSRP – .00224 Base Money Factor Rate 36 mo/15k mi – Residual Value 56% of MSRP – .00209 Base Money Factor Rate 48 mo/15k mi – Residual Value 44% of MSRP – .00239 Base Money Factor Rate 60 mo/15k mi – Residual Value 36% of MSRP – .00249 Base Money Factor Rate
2007 Infiniti G35 Sport Sedan
24 mo/15k mi – Residual Value 66% of MSRP – .00223 Base Money Factor Rate 36 mo/15k mi – Residual Value 57% of MSRP – .00236 Base Money Factor Rate 48 mo/15k mi – Residual Value 42% of MSRP – .00237 Base Money Factor Rate 60 mo/15k mi – Residual Value 35% of MSRP – .00249 Base Money Factor Rate
2007 Infiniti G35 AWD Sedan
24 mo/15k mi – Residual Value 68% of MSRP – .00225 Base Money Factor Rate 36 mo/15k mi – Residual Value 57% of MSRP – .00231 Base Money Factor Rate 48 mo/15k mi – Residual Value 44% of MSRP – .00239 Base Money Factor Rate 60 mo/15k mi – Residual Value 36% of MSRP – .00249 Base Money Factor Rate
2007 Infiniti G35 Coupe
24 mo/15k mi – Residual Value 67% of MSRP – .00227 Base Money Factor Rate 36 mo/15k mi – Residual Value 56% of MSRP – .00227 Base Money Factor Rate 48 mo/15k mi – Residual Value 47% of MSRP – .00239 Base Money Factor Rate 60 mo/15k mi – Residual Value 38% of MSRP – .00249 Base Money Factor Rate
Add 1% to Residual Value for 12k mi/yr on all terms and 2% for 10k mi/yr on 36+ months.
Quick question for someone that has more experience with leasing in IL: Presumably because of the 2006 model year-end incentives, I've seen a few attractive lease deals for 12-month terms. I've never leased before and did some research on how Illinois handles sales tax on leases and wanted to confirm my understanding. If sales tax is owed on the purchase price and can either be paid up-front or rolled into the monthly payments, then it seems that 12-month leases don't make much sense for most IL residents. If you only needed to pay sales tax on the monthly payment than it's much more cost-effective, but otherwise on a $40,000 vehicle you would be paying around $3000 up-front, or $250/month just to lease a vehicle for 1 year. Is there anything I'm missing or is this basically correct for IL residents? One site mentioned possibly being exempt from tax if the term is 12-months or less, but I couldn't find any other info about that so am assuming it's incorrect.
I am looking to lease a G35 sedan w/ premium C. By looking at the boards it seems that $500 below invoice is a good deal on sedans. However, the dealers in my are saying MSRP of 35,800 selling price 33,600 plus dealer fees of 500-700, they claim this is close to invoice but according to Edmund's it's 32,646. I feel like I'm being taken for a ride. Does anyone have experience with the dealers here in S FL. Is this the best I can get?
Hello, I am in Indiana where we pay 6% tax on each monthly payment. I am only paying tax of 6% on the depreciation part and finance part of the payment. ie, not paying tax on the whole price of the vehicle.
I suspect for Illinois you do have to pay for the tax up front but it wouldnt be near 3,000 as I would think the tax total would be calculated on the difference between adjusted cap cost(what you pay for the vehicle) minus residual value + the finance costs. ie, pay 40k for vehicle but use it for example 12 months with residual of 30k(example) so you would only pay tax on the $ you use up in the lease(10k)+ the finance part. I could be totally wrong, but I dont see how any state could make you pay for tax in a lease on $ that you dont use the vehicle...
Comments
I was hoping you could verify these numbers for me:
1 Year Lease, $2000 down
- G35 Coupe, Auto, Premium and Sport packages
- Selling Price: 35,074
- Residual Value: 30,704
- Cash Cap Reduction: 666.59
- Adjusted Cap Cost: 34,407.41
- Money Factor: 0.00006
- Rental price: 312.51 + 25.78 tax = 338.29
Thoughts?
Thanks.
Selling: 30,607
Neg. Equity: 3,324
39 Month Lease
MF:.00066
Residual:57%
Down: 1,200
426/Mo after taxes (8%)
You think this is good deal or no deal or what do you have in mind.
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
Car_man
Host
Prices Paid Forum
Car_man
Host
Prices Paid Forum
Car_man
Host
Prices Paid Forum
Infiniti is currently providing $2,500 dealer cash on the 2006 G35 Sedan. This is how the selling price that you saw is below dealer invoice. However, this dealer cash is not compatible with IFS' special lease program. So if you want to lease one through it, you probably will not be able to get a selling price that is below invoice. If you are in an area that has a decent level of competition, figure that you will have to pay a couple hundred over invoice for this car.
Car_man
Host
Prices Paid Forum
Car_man
Host
Prices Paid Forum
Car_man
Host
Prices Paid Forum
Car_man
Host
Prices Paid Forum
Car_man
Host
Prices Paid Forum
Car_man
Host
Prices Paid Forum
Car_man
Host
Prices Paid Forum
MSRP 38540
Sale price 36340
12 mo/12k lease
residual 30832 (80%)
special lease finance rate 1.95%--not sure how this converts into a money factor figure
The dealer is pushing a single payment plan with total single payment = 6329
Two questions:
1. Are these lease terms a good deal? I realize that the dealer needs to make some money, but I want to make sure it is in line.
2. What should I consider before taking a single payment plan other than the interest I am giving up by not having that money in the bank?
Parkway infiniti in Ca had a deal today where they were offering the exact same car for $3000 upfront and $300 a month plus tax = $324.75 for a total of 324.75*11 + 3000 = $6572.25/12000 = 54.77 cents a month. They sold all their cars (or so they said when we went there). You are getting a great deal (in my opinion). Also, suppose you put your money in a CD for 4.3% a year. you will have $6,329 *1.043 = 6600. So, you get the car for $28 more than the Parkway deal. Still well worth it, or better yet, haggle for another $30! :-)
Car_man
Host
Prices Paid Forum
Car_man
Host
Prices Paid Forum
Car_man
Host
Prices Paid Forum
As far as the specific lease that you were quoted goes, the selling price of the car that you are interested in looks to be around $1,100 over dealer invoice. This isn't terrible, but I have seen community members getting prices that are much closer to invoice lately. You may want to try comparison shopping a little bit. Also, Infiniti Financial Services' current buy rate lease money factor for a 12 month lease of an '06 G35 Coupe is only .00006 if you pay a security deposit at lease signing and qualify for its top credit tier. The factor that you were quoted is higher than this. Make sure that the dealer you get your car from uses its buy rate money factor to calculate its monthly payment.
Car_man
Host
Prices Paid Forum
24 and 36 month 15k per year leases.
if the msrp was 37530, invoice was 34360 and neg price was about 35,500 what would you calculate the 24/30k lease price to be? I saw an earlier post which stated the MF was .00003 and res is 65% but I think my math was off because payment seemed way to low.
2006 Infiniti G35x Sedan
Premium C Package, Painted Splash Guards, Trunk Tray
24 months, 12,000 miles/year
$2000 total out of pocket, $375/month inc tax, fees & 1st month
Could I do better? I really wanted to be around $350.
G35 Sedan
35,700 MSRP
I live in Indiana, 6% tax rate.
2,000 down (includes 1st payment)
399 / month
2 year lease at 12,000 miles per year.
Includes all taxes & fees.
Dealer says they are at $200 over invoice.
Thanks for your help
I just leased a G35 Sedan 6MT with 1000 miles on it (Demo):
Aero pkg
Sunroof
12K/24mos
2000 down also (TOTAL)
$320/month
In Ohio
Another dealer in Ohio offered me the following when I presented the above to him:
G35 6Mt
Premium Pkg
12/24
2000 Down
$382/month
The above is based on MI tax of 6%....I chose the first car with no premium, but with sunroof and Aero pkg
G35/coupe Diamond Graphite.
- Premium Package
- Sport Tuned Suspension Package
- Aero Package
- Siruis Sat.
- Trunk Mat and Splash Guards
MSRP: $39640 plus Crap charges of automate and dealer tint which adds another $1200. Total price $40888.00
MSRP $40888
Selling price $35386
Residule price $31433
$2000 Total down includes all fees Tags and first month. $360/month out the door for 12 months 12K year.
hope that helps
he hasn't yet told me what money factor, residual and selling price are yet. he wants to "discuss that in person" of course.
another question- would i be better off putting $2k down to cover 1st month, fees & capcost reduction, or doing about the same amount of moneys worth of MSDs?
Also, the 24 month lease is cheaper per mile (, but I want the car for 3 years. Does it make sense to pay more for a longer lease?
g35 coupe 6MT
premium package
Nav system
Rear active steer
sunroof, splash guards, side molding, trunk mats
MSRP 39930
price 36900
1 year/15k miles
1800down, 506/month
I believe I got a good deal. I've been on this site religiously for the past few weeks. Hope this helps. Thanks to everyone who posts and to carman.
Also, when people are stating how much their leases are per mile, is this including everything (bank fees, tax, etc).
Thanks.
Bjakey
Thanks!!
http://www.infinitihelp.com/Infiniti/Models/2007/G35%20Coupe/Description.htm
I have seen the concept for what was supposed to be the 07 G35 and it does look slick, but will it really be the G35, or will it be an 07 G37 or 08 G35/G37?
I am faced with a "either wait to see if that redesign comes out and miss out on my leasing options now or lease now and get the new design later." Do you (or anyone) have any information on the redesign?
06 G35MT w/ premium, aero, sirius. MSRP is $35950. Terms are $996.50 at sigining and $459/mo for 24 or 36 months with 15k year. I'm in SC (tax here is set @$300).
I'm trying to get more info (residual, cap cost, money factor, etc) as this was internet quote. Thanks for any responses or thoughts.
Coupe-$37,140 MSRP Cap Cost $34,650
39 month lease:
2151 Drive-off $487.58/month with tax
Sedan Same term:
2077 drive-off $425/month with tax
Please Help. Thank you very much!!! :confuse:
I also have more details from my post above for a 6MT sedan w/ premium, aero, sirius. MSRP is $35950 and terms are $996.50 down with $459 month for 24 months/30k miles. Here is the breakdown from the dealer:
The $996.50 consists of 1st payment, $198.50 doc fee, $300 sales tax, and $39 for a new tag. The money facto is less than 1% interest. The sales price is $33035.67. No multiple security deposits and the resid val is 64%.
Hope this helps!
Any thoughts on this offer??
G35 24 month 68% 0.00224 36 months 56% 0.00209
G35 sport 24 months 66% 0.00223 36 months 57% 0.00236
G35 AWS 24 months 68% 0.00225 36 months 57% 0.00231
the residual look pretty good and the money factor is not bad either (especially with the multiple deposits). I ran some number for the top of the line G35 (roughly at 39000 with 500 acquisition fee, pay MSRP) for 36 months and it come out to about 490 depreciation + 127 rent for a total of 617 + tax a month on top of the drive off. And if you can negotiate a better price or have less option, the lease will go downn from here. Let see what Car_man has...
G35 06 RV MF
24 0.65 0.00001
36 0.55 0.00087
48 0.42 0.00227
60 0.35 0.00116
2007 Infiniti G35 Sedan and Coupe Lease Rates (27 views) (27 thread views)
Message: 2007 Infiniti G35 Sedan
24 mo/15k mi – Residual Value 68% of MSRP – .00224 Base Money Factor Rate
36 mo/15k mi – Residual Value 56% of MSRP – .00209 Base Money Factor Rate
48 mo/15k mi – Residual Value 44% of MSRP – .00239 Base Money Factor Rate
60 mo/15k mi – Residual Value 36% of MSRP – .00249 Base Money Factor Rate
2007 Infiniti G35 Sport Sedan
24 mo/15k mi – Residual Value 66% of MSRP – .00223 Base Money Factor Rate
36 mo/15k mi – Residual Value 57% of MSRP – .00236 Base Money Factor Rate
48 mo/15k mi – Residual Value 42% of MSRP – .00237 Base Money Factor Rate
60 mo/15k mi – Residual Value 35% of MSRP – .00249 Base Money Factor Rate
2007 Infiniti G35 AWD Sedan
24 mo/15k mi – Residual Value 68% of MSRP – .00225 Base Money Factor Rate
36 mo/15k mi – Residual Value 57% of MSRP – .00231 Base Money Factor Rate
48 mo/15k mi – Residual Value 44% of MSRP – .00239 Base Money Factor Rate
60 mo/15k mi – Residual Value 36% of MSRP – .00249 Base Money Factor Rate
2007 Infiniti G35 Coupe
24 mo/15k mi – Residual Value 67% of MSRP – .00227 Base Money Factor Rate
36 mo/15k mi – Residual Value 56% of MSRP – .00227 Base Money Factor Rate
48 mo/15k mi – Residual Value 47% of MSRP – .00239 Base Money Factor Rate
60 mo/15k mi – Residual Value 38% of MSRP – .00249 Base Money Factor Rate
Add 1% to Residual Value for 12k mi/yr on all terms and 2% for 10k mi/yr on 36+ months.
$1400 drive off with $383 monthly payment.
Great experience.
Thanks this forum so much for the info I got from here.
Enjoy my driving right now.
Presumably because of the 2006 model year-end incentives, I've seen a few attractive lease deals for 12-month terms. I've never leased before and did some research on how Illinois handles sales tax on leases and wanted to confirm my understanding. If sales tax is owed on the purchase price and can either be paid up-front or rolled into the monthly payments, then it seems that 12-month leases don't make much sense for most IL residents. If you only needed to pay sales tax on the monthly payment than it's much more cost-effective, but otherwise on a $40,000 vehicle you would be paying around $3000 up-front, or $250/month just to lease a vehicle for 1 year. Is there anything I'm missing or is this basically correct for IL residents? One site mentioned possibly being exempt from tax if the term is 12-months or less, but I couldn't find any other info about that so am assuming it's incorrect.
Thanks in advance,
J
Thanks!
I am in Indiana where we pay 6% tax on each monthly payment. I am only paying tax of 6% on the depreciation part and finance part of the payment. ie, not paying tax on the whole price of the vehicle.
I suspect for Illinois you do have to pay for the tax up front but it wouldnt be near 3,000 as I would think the tax total would be calculated on the difference between adjusted cap cost(what you pay for the vehicle) minus residual value + the finance costs. ie, pay 40k for vehicle but use it for example 12 months with residual of 30k(example) so you would only pay tax on the $ you use up in the lease(10k)+ the finance part. I could be totally wrong, but I dont see how any state could make you pay for tax in a lease on $ that you dont use the vehicle...
Which makes a 12-month lease very, very expensive..
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator