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Comments
Bob
Yes. BMW has done this an awful lot and so an awful lot of people have taken advantage of paying multiple security deposits to lower their cost of money. Should you need some assistance, let me know.
Good luck and good day!
John
Dennis
You left out a few things such as your state and sales tax rate. Also, you didn't state the options and so I guessed. At any rate, consider the following lease proposal designed to save time, money, and aggravation...
Lease Proposal
Pricing Information
Base MSRP 2007Infinity G35x Coupe (3.50L 6cyl 5A) .. .. . 33,950.00
Premium Package...................................................................................... 2,150.00
Navigation Pack......................................................................................... 2,100.00
Chrome Wheels......................................................................................... 1,440.00
Destination Charge 715.00
MSRP .. .. . 40,665.00
Lease Payment Calculation
Agreed Upon Value .. 37,202.23
Acquisition Fee ..... 595.00
Gross Capitalized Cost 37,797.23
Adjusted Capitalized Cost .. .. .... .. .. 37,797.23
Residual Factor .. 0.67
Residual Value (Res. Factor × MSRP) .. 27,245.55
IFS Money Factor . 0.00156
Term (months) 24
Base Monthly Lease Payment .. . . 541.12
State Sales Tax 7.00%........................................................................................ 37.88
Monthly Lease Payment w/Tax .. . 579.00
Initial Lease Charges
Title, Registration, Plates (estimated) .. .. 200.00
1st. Payment ... 579.00
Amount due at lease signing .. . . . 779.00
GAP insurance protection is included in IFS lease.
No Disposition Fee.
Annual Mileage Allowance: Residual Value reflects an annual mileage allowance of 15,000 miles.
____________________________________________________________
For illustrative purposes, I used a 7% sales tax rate and assumed that these taxes are levied on the payment streams. It seems to me that your dealer is way too high unless you're capitalizing items in addition to the $595 acquisition fee.
Good luck!
John
John
Carefuly examine my posts #1635 and #1640. Hopefully, they will point you in the right direction.
John
With VPP you need to shop for the DEALER and not the deal, you need to find a dealer that does not charge a doc fee (or only charges a very small fee), does not mark up the lease money factor (I posted the buy rate numbers earlier this month), honors the VPP plan, and does not add a bunch of crap-o-la to every car ("protection package", etc). If the dealer you are working with meets these criteria, then you will have a smooth and nice deal. If not, then I would check around and find a dealer who is more favorable to deal with.
The VPP price on a sedan is a good deal, but don't give back the savings by paying a $500 doc fee or for a bunch of added stuff you don't want or overpaying the lease money factor.
If you post all the exact numbers then folks here can analyze it and let you know how good the offer is. Tag, title, and tax stuff varies from depending on your location so you need to get that stuff broken out in you offer so that the deal is easier to analyze.
Dennis
my dealer told me that I can't benefit from multi-deposit, because IFS allows only previous customer to do that. Is it true?
Thanks
Dio
Dennis
Premium
Nav
Tech
splashguards
cargo net
wood trim
Msrp 40,665
invoice 37,186 (includes warranty sec listed on invoice)
price 37,765
1.93 money factor bought down to 1.030 w/9 sec dep= $4950
39 mo lease, no disposition fee, gap insur included
$595 bank fee
$470 license, doc fees
my question is - with the lease we have the option of paying the state taxes up front, rolling into the lease by capitalizing or putting in as cap reduction. which is the best way to deal with the taxes?
this offer is from a great dealership that is close and has awesome cust service= is this a decent deal at this time?
thanks!
As for the sales tax, I wouldn't pay it up front because if the car is stolen or totaled, you're out all of that money. I would roll everything into the monthly payments which will minimize your up-front costs/risk.
If I were you, I would roll the sales tax into the lease (capitalize it) because, with a MF of 0.00103, your interest rate is less than 2.5%. In fact, I would roll everything I could into the lease as the cost of money is relatively cheap. DO NOT put any money down... Bad idea as Arnold would say! A car is a depreciating asset. When you couple that with the fact the cost of money is cheap AND that it's highly improbable that you'll be able to recover your down payment in the event that the car is stolen or totaled (God forbid), it just doesn't make good business sense.
Looks like you're close to $600 over invoice. In addition, it doesn't appear as though the $595 acq fee or the $470 license/doc fee is included in the $37,765 price. That doesn't bode well with me. I would feel much better being in the neighborhood of invoice. On the flip side, though, if you really value their service and you perceive them as an awesome dealership, you may very well feel justified in giving them a larger profit margin. I'm guessing that you can get this car for about $600 less money which would reduce your monthly payment by about $17.
The nine (9) security deposits is an absolutely brilliant move on your part. That equates to the equivalent of an after tax ROR of about 14.1%! Good job!
John
It's very true that the dealer really wouldn't have any incentive to lie. However, it could very well be that the dealer is misinformed regarding the treatment given security deposits. Being misinformed is something that happens far too often in this industry. I see it an awful lot.
One of the biggest mistakes that this industry makes is computing lease payments when the first of those payments is being rolled into the lease or capitalized. I can't even begin to tell you how many lease software programs I've seen that are flawed in this regard. I spoke with one software developer who agreed that I have provided some very compelling evidence. In January '07, he agreed to amend his software. To date, he hasn't done so... hmmm.
John
thanks for all the advice on structuring the lease-- after running the #'s with everything rolled in (except the first payment and security deposit- which i don't think they will allow) .. it makes a lot of sense...
Thanks- can't wait to pick it up!
Cheers http://a332.g.akamai.net/f/332/936/12h/www.edmunds.com/media/townhall/webxicons/emotorcons/emo_smiley.gif
I'm proud owner (well not owner.. its the lease... anyway) of 2007 G35 coupe and will never be dissapointed just because it's not possible. Experience of getting good deal and knowing how to run lease numbers (thanks to you, Dennis and John) was kinda interesting. I got good deal ($100 over invoice, no disposition fee, $40 doc fee).
Thanks everyone
Dio
That's music to my ears. Glad to hear things went smoothly for you.
Good luck!
John
John
I am planning to lease a G35 coupe with Premium package and Navigation. I understand that the below residual and MF are based on the base rate. Can any body tell me how will these change for premium package and navigation?
2007 Infiniti G35 Coupe
24 Month – Residual 67% of MSRP – .00174 Base Rate
36 Month – Residual 57% of MSRP – .00180 Base Rate
48 Month – Residual 48% of MSRP – .00229 Base Rate
60 Month – Residual 37% of MSRP – .00255 Base Rate
Thanks,
Residual = Res. Factor x Adj. MSRP
John
It's basically the base car but has the $1,000 sunroof and cargo net as options here in Denver, CO. Liquid platinum, graphite/aluminum interior...MSRP as configured: $35,750.00
$995.00 down
+ first month ($379.00)
+ acquisition fee $595.00
+ processing fee $100.00
= $379.00 for 39 months.
I think this is a great deal...for anyone wanting the same numbers, refer to this ad and see if your dealer will match (mine did and even sweetened the deal!):
http://nationwideinfiniti.com/Specials-PrintAd.aspx
So far, I love the car. I brought a freind to the dealer and he leased one with like mine but added the Premium package, and only had to add another $1700.00
Dealer: www.infinitiofdenver.com
The upfront includes
1st Month of $456
Taxes of $1262
9 Security Dep. $4950
Registration of $334
Doc Fee of $249
NJ Tire fee of $7.50
The $595 bank fee is capitalized.
How did I do?
I read somewhere in this forum that the it should be in the vicinity of 450-470 + tax. Let me know if I am being ripped off.
MSRP 39090.00
Agreed Upon Value 35761.00
Acquisition Fee 595.00
Adjusted Capitalized Cost 36356.00
Residual Factor 0.57
Residual Value 22281.30
IFS Money Factor 0.0018
Term 36
Base Monthly Payment 496.51
Sales Tax @ 7.75% 37.24
Monthly Payment With Lease 533.75
Title registration Plates (estimated) 200.00
1st Payment 533.75
Amount Due at Lease 733.75
Thanks,
Thanks Bob
I have to buy a g35 journey with prem, nav and tech. package ASAP. Any suggestions /quotes from southern california dealers would be great??
Please let me know.....thanks,
This is based on a G35 S with Premium, Nav Package and Tech package, 15k miles a year, 0 cap cost reduction:
VPP Price - $36,800
Residual - 55%
Money Factor - 1.75
Monthly payment - $553.59
This just seems wrong to me. It seems like the payment is too high, and if I got the right MF number from this forum the money factor should be .00175. I assume 1.75 is the same as this. Is this correct? Should the monthly payment be $553.59?
Also, I wanted to trade in my current car. I am upside down on the loan but I still wanted to trade the car in. They say my trade is worth $8k. I think it's worth more than this but I didn't have the car there with me for them to inspect. Anyway, I owe $12K on the loan. I told them we could just roll the negative equity into the lease. Shouldn't the cap cost plus trade with negative equity be calculated like this?
$36,800 (cap cost) - $8000 (value of trade) = $28,800 + $4000 (negative equity) = $32,800
When they calculated the amount with my trade they added the $4k in negative equity to the VPP price of $36,800 and calculated my lease payment. Done this way my payment was $655.68.
I couldn't get out of the dealership fast enough. Someone please tell me what the numbers should be. Thanks in advance for your help.
$36,800 (cap cost) - $8,000 (value of trade) = $28,800 + $12,000 (payoff) = $40,800
Think of it this way, if you weren't upside down, you would take the base price, subtract the value of the trade, and then add back the payoff amount of the loan to get your net.
Hope that makes sense, I don't know if I explained it that well or not, but the dealer did calculate it correctly.
If you owe $12,000, the $4000 of negative equity is going to be added to the cap cost. You effectively believe that owing $4,000 more than your car is worth actually should lower your car payment. If it was only that easy.
$36,800 (cap cost) - $8000 (value of trade) = $28,800 + $12,000 (amount you owe) = $40,800
I have been finding different dealers are quoting different residuals and MF on the G35X. These are the numbers I have seen online:
Infiniti Financial Services Lease Programs – Effective 7/5/07
2007 Infiniti G35 X Sedan
24 Month – Residual 67% of MSRP – .00156 Base Rate
36 Month – Residual 57% of MSRP – .00193 Base Rate
48 Month – Residual 46% of MSRP – .00246 Base Rate
60 Month – Residual 36% of MSRP – .00258 Base Rate
Residuals posted are for 15K miles/year. Add 2% to Residual for 12k mi/yr and 3% for 10k mi/yr on all terms
Some dealers are quoting only 58% residual on a 36 month / 12k mile lease. My question is if I were to put together a deal and had the adj. cap cost from them would the final papers show the 58% residual (if incorrect) or would they have to go with what IFS mandates (59%). I realize they can play with these numbers and if you don't know the specifics you'll never be the wiser.
Let us know if you find out!
These forums allow for accurate information to be shared so that when the dealer provides a quote, you can ask to see the actual numbers and see if they are trying to make extra money.
I call them out when they do this and I walk away from the dealership. Another big one to look out for is the bank fee. All leases have them. Infiniti charges $595. I've seen dealers say that it's $795. Call them out.
By the way, I decided to buy my G35X. It is a fantastic car. Sport, luxury, great options. I absolutely love it and you will to. Compare it to a 335xi. It's about $12,000 less expensive. Awesome car.
36 months
Premium Package
no navi
no 19" wheels
$3,000 down
$455 a month
39 months
is this a good deal....I need an answer quick ...if is not what can i say when i go in there to day at 1pm..
That is not correct.
Dealers can't change the residual percentage, it is set in stone by the lease bank (IFS in this case) and can't be change.
The dealers can, and will, try to mark up the lease money factory and/or the lease acquisition fee. If you run into a dealer that does, call them on it as you say and if they don't offer you the "buy rate" find another dealer.
Dennis
Some dealers are quoting only 58% residual on a 36 month / 12k mile lease.
Tarry has the residual adjustment wrong, AFAIK IFS now raises it 1% percent to go from 15k to 12k and 1% to go from 12k to 10k miles per year (2% from 15k to 10k).
Dealers can't change the residual percentage, so whatever the dealers gives you should be the right number - unless they screw it up
You do have to watch them on the money factor, however.
Dennis
I am new to leasing and plan to lease a g35x with Nav, Premium pkg, and Tech package in Chicago. A recent quote left out some details, so I am having troubling knowing if it is a good deal. Please comment:
36mo/12k lease $652.18mo with $853.66 due on delivery.
The residual is 58% and the money factor is .00193.
The quote includes Illinois sales tax at 6.5%
Thanks in advance!
The MF you state is the buy rate and the residual is correct. The bank fee should be $595 if the dealer did not mark it up. The taxes and title stuff are what they are.
That just leaves the amount of the dealer "doc" fee, if any, and the price of the car. You should be something like $1,000 over invoice or less including the DOC fee. If you qualify for VPP pricing then $275 over invoice plus the doc fee, if any.
Dennis
I had to specifically inquire from the dealer and his answer is for sale price "It was just over $39,000." I don't qualify for VPP, but the dealers replies are vague, so I am worried that it is not a fair price.
Negotiate the lease price just like you would if you were buying the car. Don't say "how much a month to lease this car" or you will most likely get ripped off.
Take the MSRP and options and look up the invoice online and offer then $500 over for your price and start from there. Once you have a good price nailed down, then move on to the lease terms and details.
Dennis
Now...if you want to add in the $4k negative equity you had better be prepared for about $120 or so more a month. Figure your monthly lease payment will increase about $3/month for every addl. $100 dollars added to the cap cost of the car.