Currently in a M35x that I leased (2yr/24k) back in Feb 06 and looking for my next car. I love it and am actually considering getting one again. (gasp) It's an awesome car and through my company's VPP or the current offerings the price is right.
What are the current MF/residual rates for M35x, 24 months, 12k per year?
1. I am the happiest lessee ever!! Drove home my new 07 M35 last weekend. 2. This forum was absolutely invaluable. I had the best time ever negotiating a car deal, thanks almost entirely to the content on the board. When I tell my friends, parents, neighbors about the deal and the MSDs, etc, they are blown away. 3. The $1500 dealer incentive is for retail purchases only, not for the lease.. this is the only place I had to back down a little... 4. The numbers... Black M35 with Journey/Adv Tech + XM 42mo lease, 15k cap cost = 44250.00 cap cost reduction = 0 MSDs = 4500 (7) RV = 46% mo payment = 582 MF = 0.0006 (shouldve been .00037, but they couldnt do it that low)
5. I am very happy.. the only part that was tough was that they had given me a price on the car thinking they were making a sale and would get the 1500 back.. when i told them i was going to lease, they couldnt do the deal. I had to back off a bit on the MF, but i think in the end, I am still happy with the deal. close enough to perfect to make me happy. So, in the end, I used 7 MSDs, lowered the MF (they first quoted me a MF of .00170), have a sweet ride for a decent amount of time, paid nothing out of pocket -- first time I have ever walked out of a dealership with a new car and not had to put anything on a credit card or write a check)
6. The best part was when I started negotiating, with my laptop and my folder, and they came back with the original MF, I showed them the IFS MF and they became very indignant - "Where did you get that?? IFS doesnt publish those numbers!!" I said, well is it correct? And they said, yeah but where did you get those numbers?? Its the internet, you dolts!
Anyways, I know that the MF wasnt as low as it couldve been, but I walked out thinking I had a good deal.. a very low cap cost and I should get the 4500 back at the end of the lease.. which i will convert right back into the new lease on my 2011 M45!!
Deekmd NICE I am actually in the same boat about to lease an 07 M35AWD with the tech package the MSRP is 48,000. I also do not put money down on my leases I'm actually coming out of a FX35 I was so happy with the car I figured to stick with Infiniti. I'm getting numbers in the mid to high six range per month on a 39X15 k per year. Can you give me some insight on this "MSD" what actually is that? Is it like a savings account you give them 4500 bucks and it brings down the cost of the car and you get that money back at the end of the lease? Similar to a savings account?? I really want my monthly number to be around 600 per month so I'm looking for way to get there without putting money down. Any insight would be great I have 2 weeks left on my current car so I need to get something done ASAP..
Hi, I'm new to this site so excuse my ignorance regarding an Infinity Lease.. I have one lease payment left on a Hummer H2, YEA! I've narrowed my search down to a M35 Sport. I was at the dealers yesterday and got the price on a 2008 to $45,900 with Nav. Can anyone tell me what I should pay monthly on a 24 or 36 month lease with $5000 down and if I was to put additional funds down how much does every $1000 lower the monthly payment? What about additional security deposits? I've never heard of that until this site? I hate high payments....
I'm beginning the process of negotiating for a 2007 M45 Sport. I think I can do a bit better on the price I got today from Santa Monica Infiniti, but I'm not sure of the published and achievable lease terms from Infiniti for the Southern California area. For a 39 month lease I was quoted a residual of 50% and a MF of .00099 for Tier I FICO. I'm interested in the Sept. 2007 terms for 24 36 and 39 months.
Also, I'm not sure about GAP insurance with a captive lease (maybe that was not an issue with a 50% residual?) What about taxes? Is the 8.25% sales tax assessed before application of the lease or by the month? It seems like they were trying to assess it both ways with my initial discussion.
I've also heard good things about US Bank's leasing program and Capital One. Does anyone have any information or experience with banks that can compete with the captive program?
I am no expert on leases, but I can share a few thoughts with you.. also, you should peruse this forum for tons of great info.. usually the best info is repeated over and over, so you should be able to get up to speed if you read the 15-20 most recent pages.. (quick reads).
Now specifically as to what you asked:
The MSD is multiple security deposits. They are not allowed in a few states (like New York), but are allowed in most states (I am in california and they definitely are allowed). Essentially, the theory is that if you put down more than 1 security deposit (and each security deposit or "SD") is equal to a month's payments, it will reduce the money factor (which is essentially the interest rate on the lease). The formula is for every SD you add, it will reduce the MF by .0001. The max # of SDs is 7 (in cali, at least). So, essentially, if you put down 7 SDs at the beginning of the lease, you reduce the MF by 0.0007, which can be a substantial savings on the interest rate (and monthly payment). Now, a few things to remember about the Money Factor:
(1) the residual value (RV) on a lease is not negotiable. It is determined by THE BANK and wont be up for discussion. (2) the MF is negotiable. The better your deal on the front end (ie, negotiating a killer price on the capitalized cost or the price of the car), the more likely they will try to screw you on the MF. I found that I had to give a little back to the dealer on the MF or I had to allow them to raise the cap cost (3) You get the MSD amount at the end of the lease when you turn the car in. Stolen or totaled cars would lead to a loss of the MSD amount. (4) You can give them the cash for the MSDs up front, so you lose the opportunity cost of giving that money to infiniti for 3-4 years (depending on length of the lease). Someone previously figured it out and it turns out if you get 5% return for that money in the bank, you are going to end up saving money because of the reduction in the lease interest rate.
So, that being said (and please look elsewhere to confirm the above), the process should be as follows:
(1) get current MF and RV from Car_man right here on this forum for the mileage and term of the lease you want (most people ask for 3 terms or so). (2) negotiate the best cost of the car you can (usually do this over the internet with at least 3 dealers). Remember that they are trying to push out the 07s to make way for the 08s which will be priced higher (3) Remember that the dealers get $1500 incentives back from infiniti for the M35s on a sale, but not on the lease, so if you dont tell them you are leasing, they will tell you (possibly) that they cant honor the price they gave you.... or, they will try to screw you on the MF when they find out you are leasing. For me, the cap cost on the car I got was fantastic (well below invoice), but the original MF they quoted me on the car was much much higher than what the MF should have been. In other words, according to car_man, the MF on the M35 BASE 15k mi 42 month lease in Sept shouldve been .00107. With 7 MSDs, I shouldve gotten the lease at .00107-.0007 =.00037. They originally quoted me a MF of .0017 and I had to negotiate the MF to .0006 or something close to that. This is the critical piece of the negotiation. For me, the 7 MSDs = $4500. (4) Pay nothing down (critical), pay your first month+acq fee (595)+ttl+MSDs. For me, with the #'s I quoted, on a 42 mo lease, the monthly payment is 580. It was the best deal for me. (5) Whatever deal they give you, tell them the numbers just arent making sense to you (if they push, tell them the MF or the cap cost isnt what you had hoped -- remember, they dont know that the MF is available on the internet-- this was the thing that pissed off my dealer more than anything), pack up and slowly walk out the door. Then they will give you another offer that will be their best. (6) Drive off happy.
The only other thing is that there are lease calculators you can download and use when you are working the numbers.. I used one from carbuyingtips.com. It really helped me as I could look at all the numbers and see that it made sense. I brought my laptop in to the dealership and had it running the whole time. Finally, DONT PUT ANYTHING DOWN AS A DOWNPAYMENT TO LOWER YOUR MONTHLY PAYMENTS - USE THE MSDs
Hope this helps and remember I am no expert. I dont even know if my deal was a good one or not. It worked for me, so at some point, I just said, maybe it isnt THE BEST deal ever, but close enough that I can live with it and drive my car with a smile.
If by captive lease you mean through the car manufacturer rather than through a third party, if you are tier 1, I couldnt find a better lease rate through 3rd party bank than I could through IFS. Especially on the 07 Ms, they are really incentivizing to push them off the lot.
As far as I know, I would always have Gap insurance. However, your auto insurance carrier may provide that free.
Taxes are assessed on the monthly payments on the lease, not on the capitalized cost of th car.
I believe if you search through August/Sept posts here, you will find the RV and IFS MF on the terms for the M45s. They are absolutely accurate, but remember that your dealer is able to increase the MF as much as he wants but cant negotiate the RV. So, you may see much higher MFs offered to you than IFS is giving the dealer. . That's where the fun begins!
Also, consider the Multiple Security Deposit tactic.. If you want to put money up front to lower your MF (and hence your interest rate and hence your monthly payment), consider MSDs rather than a downpayment. You will get the full amount of the MSD back at the end of the lease unless the car is totaled or stolen.
deekmd...almost right. If your car is totaled or stolen, you will have to pay infiniti the value of the car....or hopefully, your insurance company will pay infiniti for the loss of the car.
Any security deposit or MSD you have paid will be applied to the amount you owe....you don't just lose it...so if you've made 7 MSD's, you will have write a smaller check, but the total amount will be the same as if you paid no security deposit.
Now it's very different if you made a large down payment on your lease up front...because that money is gone. In that case, you just lose that money because it is not credited towards the money you owe infiniti.
For the first time in my leasing life the local (only) Infiniti dealer volunteered that a 24 month lease is the most cost efficient. I have nine months to go on my M35 sport/tech/journey ... fully loaded ... and given the fact that I like changing cars frequently and I can pay less for that luxury that's the way I'll be going in the spring. I'll also be shopping the dealers in Phoenix where there's competition; local guy has no competition between here (Tucson) and there. Odds are I'll be getting a G37 coupe when the time comes. Bart :shades:
Deek makes sense thanks for taking the time to explain it Im in NJ so at least thats an option for me I have $600 per month in my head with zero down on a ideally 24 month lease but I don't think that's possible without them taking a loss on the car so I'll probably suck it up and do 39 months at 15k if I can get them to that number for the price of this car it seems like a good deal I will let you know how I make out with it I have 2 weeks left on my FX35 lease .. a few dealers in my area still have a load of 07 M35's left on the lot so we will see..
Leasing for the first time and Looking for 07 M35 with Advanced Tech package. The MSRP is 46595 with no cap cost, no down, no sec dep, no fee and no first payment. The montly is $610 with 12K miles. Please advise if this is good or I can get the monthly payment down.
Still reading this forum to get the hang of MF, RVs etc. Thanks.
First negotiate the selling price of the car....msrp doesn't matter. Use Edmunds to see how much over invoice you are paying.
Then get the infiniti lease rates from the dealer (and post them here so we can check).
You already know..no money down up front...you will pay an origination fee (bundled in the lease) and probably a dealer administrative fee (if you can't talk them out of it).
Finally, if you have the money, consider multiple security deposits which will reduce your payments. Much info on this in this forum (mostly by me).
Post here (before you sign)
MSRP Actual Selling price of car (your negotiated price) lease term money factor being used residual value (as a percent of MSRP)
Finally....check other length leases. You may find that the 24 month lease saves you money...or the 39 month lease. Have the dealer run them all...then look at total cost per month to drive the car and use that to compare leases.
Can you please provide the current residual and MF for a 2007 Infiniti M35X (AWD) for a 39 month lease with 15k miles per year? Also are there any curent cap cost incentives?
I'm interested in 24, 36, or 39 month lease deal on M45. The MSRP on the car I'm looking at is $54,565. Edmunds say's I should pay no more than $50,795 or $798 over invoice. Let's assume I can get the car for $50,795..what is the best option/deal for me a 24,36,or 39 months?
I noticed a few post here showing a money factor on a 24 month lease is .0001. I can make Multiple Security Deposits too.
Here's what I received so far on M45 lease quote..I still need actual Purchase Price from sales guy..based on my lease calculator I think it is priced right at invoice ($49k-$50k). Lease rates below include 7% sales tax. Looks good so far for a M45 vs M35. First month payment only. No security deposit. The sales guy said Multiple security deposits are not necessary because interest rate is already low (less than 1 percent)
Here is the info you requested on 2007 M45 Sport with tech package and splash guards
Ok, Here is all the information on my deal. What do you all think? Anybody look at this web site anymore? When I use a web site lease calculator I get a different number (lower payment) I wonder what is wrong..Any ideas?
That is not a good deal. You are over paying for a 2007. You should be in low 500's w/tax. This forum sucks BTW I never got a reply on my posting. I was getting selling price $2-3K quote below invoice. I would go with a M45 too (better deal)..here is an email I just received from infiniti
BUY A NEW M45 SEDAN $47,319+++ OR LEASE FOR $599@39 MONTHS
I have wanted to buy an M35 for the past year or so. I recently sold our ES330, because we were dissatisfied with the transmission and other service problems and are prepared to buy an infiniti.
Consumer Reports and many other publications give the M series high marks, but I am now thinking of a short term lease after reading on multiple forums about the concerns over road noise, high RPMs, gas mileage, and lack of a six speed (all basically connected). My hope is that these problems might be fixed in the next couple of years and then I would buy.
I built a spreadsheet based on the information provided in "calculate your own lease payment". I believe I understand most everything, but the Money Factors displayed here are all over the place for the same model and term.
Should I concern myself with what APR the MF converts to (MF x 2400)? Or should I just keep it simple and not worry about the APR. When I convert the rates the differences look huge to me. Also, if Security Deposits reduce the factor by .0001 each, how does that reduce a rate that may be .00001? I get a negative number. If you haven't caught on, I'm no math wizard, so any help would be appreciated.
Two year lease. Yes or no? MF or APR?
I'm in eastern NC, so I want to do all my homework and coordination via email before I drive to the nearest dealer (120 & 200 miles away). Any help would be appreciated. Thanks. :confuse:
Thanks for the response SCott.. I will see if can negotiate more on the price of the car. BTW, the new lease offer you mentioned, what is the down payment on it? Thanks.
Infiniti finance has different lease rates (MF) and residuals for every model and every duration. The rates on a base M35 are different than an M35 sport, etc.
You should not worry about the APR...as a matter of fact, the only thing you should focus on for a lease is the total cost of the lease...the sum of all your payments, downpayments, etc...per month. Add up all the costs and divide by the number of months of the lease.
You are not allowed to reduce the Money Factor below zero....so if the MF is .00009, you can't make additional security deposits. But if it's .00019 you can make one multiple security deposit to reduce it to .00009.
24, 36, 39 month lease depends on which is the least expensive TOTAL COST PER MONTH. That's the only number you care about.
The only thing you have to be careful of is that the dealer is using the official Infiniti MF and residuals. That's where this forum can help. If they are using those numbers, then the only thing you can do to reduce the cost is to negotiate a lower price on the car...which is used to calculate the lease.
Since the 2008's are almost here, you should be paying invoice for 2007's or very close...unless there is a rebate by Infiniti (I don't know what they have right now).
I've never leased a car before. I always felt comfortable buying a car, because there was only one number you were interested in, the purchase price. Leasing has many ways to mask what the real cost is. After reading the last 10 pages or so of this site, I think I understand somewhat. Thanks to all, what a great source of information. Special thanks to Car Man for providing all the numbers, so we're armed for the battle. So.... I'm looking at an 2007 M35X, 36 month lease, 10,000 miles. Does anyone know what the MF and RV factors would be for October?
I leased a car from S.M. Infiniti when it was still Advantage Infiniti. 9 months later, new owners, and I will never go back there again, and they're 3 miles from my home.
I am not the only one that thinks this way, either.
Try South Bay or Miller (David Marsh) for a better deal/service.
deekmd, I have 99 Q45t I'm the only owner, 65K mi, I would say the car is in good condition. How should use it for trade-in on a leased 2007 M45? Thanks, Hiredhand
The best way to deal with the trade-in is to establish its value before you begin negotiating the final terms of the lease. Ideally, you would already have the cap cost of the vehicle, which is something you can usually do online.
Typically, I would recommend that you email 3-4 local Infiniti dealers, if you are in an area with that many. Spend a little time playing them off each other to get the absolute best deal (ie, "You know, dealer X, I really want to buy from you, but you'd have to beat this price $$ that I got from another dealer". ** i wouldnt reveal who the other dealers are though **)
Once the cap cost of the car is estabished (and use these forums to assess how good your deal is), time to deal with the trade-in.
Personally, I always recommend you try not to depend on the dealer, because they will make up some money on your deal by under-valuing your car. What I would do is to either list the car yourself and try to sell it (using Kelly Blue Book values as a guide), or go to a place like CARMAX (which I did) to valuate your car.
In my case, I went to Carmax and got a price for my car that I thought was fair. When I went to the dealer, and they gave me their price for the trade in, it was below the Carmax price, so I told them, "you have to give me $500 more on the trade in, or I cant do this deal today because I will have to go to Carmax and sell it to them and then come back in here another day". Trust me, they will give you the extra $$. Of course, they dont know exactly what Carmax was willing to give you, so you could squeeze a little extra money on the trade in at this point.
If you dont have a Carmax dealer, there are usually a number of 3rd party resellers that act in the same capacity.
Once you have the cap cost and the tradein value decided, the hard work is almost over. Those are the first elements you need.
Then, work on the money factor, sign the deal, and drive away in your beautiful M45!
I know at this time of the year you can get a better deal on an '07 if you're buying it. With leasing, it's not as clear to me. I'm sure you can get a better price on the cap cost, but is the RV going to be so much lower that it offsets the deal on the cap cost? Anyone have current numbers on RV and MF for '07 and '08. That would be the way to tell.
While I thought about trying to trade my early '06 on a late '07 M (2 yrs and 29k into a 36 mo/45k lease), the residual was so low that it didn't make sense ... I had hoped the cap cost would make up for my early term, but no way, trade value too low. I need to go six more months I would have preferred to get an '07 now and wait for a totally new M as opposed to the refreshed '08.
We did trade my wife's Audi allroad on an '08 FX35 and the residual was 55% vs. 45% for a left over '07 ... the '08 was actually cheaper.
Thanks for your advice & for replying. One other question, I heard the other day thatthere ways to get out of a lease with out paying all of the penalties. I didn't hear were to find out more information, have you heard anything? hiredhand
That's interesting. It seems that if you're buying a car and intend to keep in awhile, then late model year is best, i.e. Aug - Nov for an '07. If you're leasing, it seems that early model year is best, i.e. around now for '08. Does this seem right?
The "usual" way to get out early is trade the car when/if it's value is enough to pay your lease payoff amount. Our Audi was 6 months from end-of-lease but was worth $2k more in trade than the early termination payoff amount was so it was easy to get out of.
I've read that IFS will consider a written request to do basically the same thing. They take what you would owe as a payoff (basically the balance of your lease) subtract the wholesale value (that they get where?) and depending on where that number falls, you have to pay the difference to turn the car in. You do have the potential lease-turn-in issues to deal with; if you can trade the car you don't.
I'm not quite there yet but this is the first car I've ever leased and have never gone through the turn it end at the end of the lease ceremony yet. Does anyone have any experiences (good and bad) with Infiniti leases?
Hello patcomb. Infiniti Financial Services' current buy rate lease money factor and residual value for a 39 month lease of a 2007 Infiniti M35X with 15,000 miles per year are .00017 and 49%, respectively. Infiniti is currently providing $1,500 dealer cash on this car, but this cash incentive is not compatible with IFS' special lease program.
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Hi scottw58. I think that you are shooting for a reasonable selling price. Infiniti's best lease money factor on the 2007 M45 Sedan is currently for 24 month terms, but its 36 and 39 month factors are very attractive as well. Let's work up three lease payments on this car for you so that you can see which term is the most attractive.
According to my calculations, if you were to lease a 2007 Infiniti M45 Sedan that has an MSRP of $54,565 and a selling price of $50,795 through Infiniti Financial Services right now for 24 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $731. the payment for an otherwise identical 36 month lease would be around $675. Lastly, the payment for an otherwise identical 39 month lease would be around $631.
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Hi eastnc. You were smart to create a spreadsheet to calculate lease payments. That's exactly what I did. It comes in handy when trying to work up a few quick lease payments.
The most important number to focus on when negotiating a lease is your vehicle's selling price. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Once you have arrived at a selling price that you are comfortable with, have the dealer that gives it to you calculate your monthly payment using your vehicle's buy rate lease money factor. I can give you an idea of what it should be like. It never hurts to convert the money factor for the vehicle that you are interested in into an interest rate to see how good it is, but if the dealer that you are working with is offering you the buy rate you won't be able to do any better.
If a vehicle already has an attractive lease money factor like .00001 available on it, you will not be able to reduce it any further by making additional security deposits.
The problem with two year leases is that they are usually expensive. New vehicles experience their most rapid rate of depreciation during the first year of ownership. A two year lease will typically be more expensive than a similar 36 or 39 month lease because the 24 month lease has fewer payments to spread this large initial depreciation hit out over.
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Greetings Alan. 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.
Here's the information that you're looking for. Infiniti Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2007 Infiniti M35X with 10,000 miles per year are .00017 and 51%, respectively.
Good luck in your negotiations and let me know if you have any other questions.
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The 39 month leasing program is typically the best lease that infiniti offers because the residual stays about the same from the 36 month term, but you get an extra 3 months to spread out your payments. A 39 month lease is usually the best deal you'll get.
Price out every one...don't take anyone's word for which is cheapest. Compare the total cost of ownership per month for each lease term to see which is the least expensive way to drive your car.
The cheapest lease on my car was 24 months....and it was because of the residual value that infiniti was using at that time for each term.
Had the lease numbers changed in the last week? A Dealer here in TX said that Infiniti Financial services has lowered the MF and also lowered the residual for the M35 RWD. THe numbers I got was MF .0002 and Residual 49% for 39 months with 15K/year. I read in the other forum that Infiniti has lease MF to .00001. Not sure which is the right number. THanks.
I just left the dealer and was wondering if I got a decent deal on my lease. It is an 07 M35 Sport that is totally loaded. The net cap is 47756.27, the residual is 22910.15. I got a 39 month, 12K mile per year deal for 637.79 a month. Nothing out of pocket at signing....not even 1st month's payment. I will only end up actually paying 38 payments for a total of 24236.02 total cost to me overall.
Just wondering if anyone out there has an idea of whether I could have gotten better deal.
hockeytme....what MF did the dealer use to calculate your payments? I am trying to get the deal done this Thansgiving weekend...but looks like the REsidual on M35 RWD has gone down to 48% for 39 months.
Yes, my residual went down to 48%. From what I gather the MF was .00001, but my sheet is not in front of me right now to verify exactly what it was. I know it was practically nothing though. They have the tax incentives going on now and negotiating out of that initial payment that I never thought would be possible were the two deal makers for me. The MF actually ended up going down some from the original quote once they ran my credit. My rent charge comes out to 27.69.
Comments
Currently Infiniti is offering incentives $1,500 cash to dealer. Is that only for purchase or does that include lease too?
What would be good sale price on this car, if I am going to lease this. Dealer is quoting $43,925, which I think is too much.
Thanks.
What are the current MF/residual rates for M35x, 24 months, 12k per year?
Thx in advance!
2. This forum was absolutely invaluable. I had the best time ever negotiating a car deal, thanks almost entirely to the content on the board. When I tell my friends, parents, neighbors about the deal and the MSDs, etc, they are blown away.
3. The $1500 dealer incentive is for retail purchases only, not for the lease.. this is the only place I had to back down a little...
4. The numbers... Black M35 with Journey/Adv Tech + XM
42mo lease, 15k
cap cost = 44250.00
cap cost reduction = 0
MSDs = 4500 (7)
RV = 46%
mo payment = 582
MF = 0.0006 (shouldve been .00037, but they couldnt do it that low)
5. I am very happy.. the only part that was tough was that they had given me a price on the car thinking they were making a sale and would get the 1500 back.. when i told them i was going to lease, they couldnt do the deal. I had to back off a bit on the MF, but i think in the end, I am still happy with the deal. close enough to perfect to make me happy. So, in the end, I used 7 MSDs, lowered the MF (they first quoted me a MF of .00170), have a sweet ride for a decent amount of time, paid nothing out of pocket -- first time I have ever walked out of a dealership with a new car and not had to put anything on a credit card or write a check)
6. The best part was when I started negotiating, with my laptop and my folder, and they came back with the original MF, I showed them the IFS MF and they became very indignant - "Where did you get that?? IFS doesnt publish those numbers!!" I said, well is it correct? And they said, yeah but where did you get those numbers?? Its the internet, you dolts!
Anyways, I know that the MF wasnt as low as it couldve been, but I walked out thinking I had a good deal.. a very low cap cost and I should get the 4500 back at the end of the lease.. which i will convert right back into the new lease on my 2011 M45!!
Thanks CAR_MAN!! You are awesome!
Thanks for you help!
I'm new to this site so excuse my ignorance regarding an Infinity Lease.. I have one lease payment left on a Hummer H2, YEA! I've narrowed my search down to a M35 Sport. I was at the dealers yesterday and got the price on a 2008 to $45,900 with Nav. Can anyone tell me what I should pay monthly on a 24 or 36 month lease with $5000 down and if I was to put additional funds down how much does every $1000 lower the monthly payment? What about additional security deposits? I've never heard of that until this site? I hate high payments....
Im curious to hear what you dont like about your car. Especially comparing it to a Ford (Jaguar).
I'm beginning the process of negotiating for a 2007 M45 Sport. I think I can do a bit better on the price I got today from Santa Monica Infiniti, but I'm not sure of the published and achievable lease terms from Infiniti for the Southern California area. For a 39 month lease I was quoted a residual of 50% and a MF of .00099 for Tier I FICO. I'm interested in the Sept. 2007 terms for 24 36 and 39 months.
Also, I'm not sure about GAP insurance with a captive lease (maybe that was not an issue with a 50% residual?) What about taxes? Is the 8.25% sales tax assessed before application of the lease or by the month? It seems like they were trying to assess it both ways with my initial discussion.
I've also heard good things about US Bank's leasing program and Capital One. Does anyone have any information or experience with banks that can compete with the captive program?
Any help would be greatly appreciated.
I am no expert on leases, but I can share a few thoughts with you.. also, you should peruse this forum for tons of great info.. usually the best info is repeated over and over, so you should be able to get up to speed if you read the 15-20 most recent pages.. (quick reads).
Now specifically as to what you asked:
The MSD is multiple security deposits. They are not allowed in a few states (like New York), but are allowed in most states (I am in california and they definitely are allowed).
Essentially, the theory is that if you put down more than 1 security deposit (and each security deposit or "SD") is equal to a month's payments, it will reduce the money factor (which is essentially the interest rate on the lease). The formula is for every SD you add, it will reduce the MF by .0001. The max # of SDs is 7 (in cali, at least). So, essentially, if you put down 7 SDs at the beginning of the lease, you reduce the MF by 0.0007, which can be a substantial savings on the interest rate (and monthly payment). Now, a few things to remember about the Money Factor:
(1) the residual value (RV) on a lease is not negotiable. It is determined by THE BANK and wont be up for discussion.
(2) the MF is negotiable. The better your deal on the front end (ie, negotiating a killer price on the capitalized cost or the price of the car), the more likely they will try to screw you on the MF. I found that I had to give a little back to the dealer on the MF or I had to allow them to raise the cap cost
(3) You get the MSD amount at the end of the lease when you turn the car in. Stolen or totaled cars would lead to a loss of the MSD amount.
(4) You can give them the cash for the MSDs up front, so you lose the opportunity cost of giving that money to infiniti for 3-4 years (depending on length of the lease). Someone previously figured it out and it turns out if you get 5% return for that money in the bank, you are going to end up saving money because of the reduction in the lease interest rate.
So, that being said (and please look elsewhere to confirm the above), the process should be as follows:
(1) get current MF and RV from Car_man right here on this forum for the mileage and term of the lease you want (most people ask for 3 terms or so).
(2) negotiate the best cost of the car you can (usually do this over the internet with at least 3 dealers). Remember that they are trying to push out the 07s to make way for the 08s which will be priced higher
(3) Remember that the dealers get $1500 incentives back from infiniti for the M35s on a sale, but not on the lease, so if you dont tell them you are leasing, they will tell you (possibly) that they cant honor the price they gave you.... or, they will try to screw you on the MF when they find out you are leasing. For me, the cap cost on the car I got was fantastic (well below invoice), but the original MF they quoted me on the car was much much higher than what the MF should have been. In other words, according to car_man, the MF on the M35 BASE 15k mi 42 month lease in Sept shouldve been .00107. With 7 MSDs, I shouldve gotten the lease at .00107-.0007 =.00037. They originally quoted me a MF of .0017 and I had to negotiate the MF to .0006 or something close to that. This is the critical piece of the negotiation. For me, the 7 MSDs = $4500.
(4) Pay nothing down (critical), pay your first month+acq fee (595)+ttl+MSDs. For me, with the #'s I quoted, on a 42 mo lease, the monthly payment is 580. It was the best deal for me.
(5) Whatever deal they give you, tell them the numbers just arent making sense to you (if they push, tell them the MF or the cap cost isnt what you had hoped -- remember, they dont know that the MF is available on the internet-- this was the thing that pissed off my dealer more than anything), pack up and slowly walk out the door. Then they will give you another offer that will be their best.
(6) Drive off happy.
The only other thing is that there are lease calculators you can download and use when you are working the numbers.. I used one from carbuyingtips.com. It really helped me as I could look at all the numbers and see that it made sense. I brought my laptop in to the dealership and had it running the whole time.
Finally, DONT PUT ANYTHING DOWN AS A DOWNPAYMENT TO LOWER YOUR MONTHLY PAYMENTS - USE THE MSDs
Hope this helps and remember I am no expert. I dont even know if my deal was a good one or not. It worked for me, so at some point, I just said, maybe it isnt THE BEST deal ever, but close enough that I can live with it and drive my car with a smile.
Cheers!
As far as I know, I would always have Gap insurance. However, your auto insurance carrier may provide that free.
Taxes are assessed on the monthly payments on the lease, not on the capitalized cost of th car.
I believe if you search through August/Sept posts here, you will find the RV and IFS MF on the terms for the M45s. They are absolutely accurate, but remember that your dealer is able to increase the MF as much as he wants but cant negotiate the RV. So, you may see much higher MFs offered to you than IFS is giving the dealer. . That's where the fun begins!
Also, consider the Multiple Security Deposit tactic.. If you want to put money up front to lower your MF (and hence your interest rate and hence your monthly payment), consider MSDs rather than a downpayment. You will get the full amount of the MSD back at the end of the lease unless the car is totaled or stolen.
Any security deposit or MSD you have paid will be applied to the amount you owe....you don't just lose it...so if you've made 7 MSD's, you will have write a smaller check, but the total amount will be the same as if you paid no security deposit.
Now it's very different if you made a large down payment on your lease up front...because that money is gone. In that case, you just lose that money because it is not credited towards the money you owe infiniti.
thanks again for the post!!!
Still reading this forum to get the hang of MF, RVs etc. Thanks.
In a nutshell...
First negotiate the selling price of the car....msrp doesn't matter. Use Edmunds to see how much over invoice you are paying.
Then get the infiniti lease rates from the dealer (and post them here so we can check).
You already know..no money down up front...you will pay an origination fee (bundled in the lease) and probably a dealer administrative fee (if you can't talk them out of it).
Finally, if you have the money, consider multiple security deposits which will reduce your payments. Much info on this in this forum (mostly by me).
Post here (before you sign)
MSRP
Actual Selling price of car (your negotiated price)
lease term
money factor being used
residual value (as a percent of MSRP)
Finally....check other length leases. You may find that the 24 month lease saves you money...or the 39 month lease. Have the dealer run them all...then look at total cost per month to drive the car and use that to compare leases.
Good Luck
Can you please provide the current residual and MF for a 2007 Infiniti M35X (AWD) for a 39 month lease with 15k miles per year? Also are there any curent cap cost incentives?
Thanks
I noticed a few post here showing a money factor on a 24 month lease is .0001. I can make Multiple Security Deposits too.
Thanks
Here is the info you requested on 2007 M45 Sport with tech package and splash guards
36 months $664 51% residual .000046 money factor
39 months $642 50% residual .00023 money factor
Payments include 7% sales tax, 12k year and 1st month down
When I use a web site lease calculator I get a different number (lower payment) I wonder what is wrong..Any ideas?
MSRP $54,345
Invoice $49,900
Discount $7,079
Sale price $47,266.
36 months $664 51% residual .000046 money factor
39 months $642 50% residual .00023 money factor
Payments include 7% sales tax, 12k year and 1st month down
MSRP: 46465
MF: .00071
Residual: 50% for 15K
Monthly: 615
MSRP:46595
Sell Price: 43695
MF:.00071
Residual: 50% for 15K
Monthly: 615
Thanks.
I would go with a M45 too (better deal)..here is an email I just received from infiniti
BUY A NEW M45 SEDAN
$47,319+++
OR LEASE FOR $599@39 MONTHS
Consumer Reports and many other publications give the M series high marks, but I am now thinking of a short term lease after reading on multiple forums about the concerns over road noise, high RPMs, gas mileage, and lack of a six speed (all basically connected). My hope is that these problems might be fixed in the next couple of years and then I would buy.
I built a spreadsheet based on the information provided in "calculate your own lease payment". I believe I understand most everything, but the Money Factors displayed here are all over the place for the same model and term.
Should I concern myself with what APR the MF converts to (MF x 2400)? Or should I just keep it simple and not worry about the APR. When I convert the rates the differences look huge to me. Also, if Security Deposits reduce the factor by .0001 each, how does that reduce a rate that may be .00001? I get a negative number. If you haven't caught on, I'm no math wizard, so any help would be appreciated.
Two year lease. Yes or no?
MF or APR?
I'm in eastern NC, so I want to do all my homework and coordination via email before I drive to the nearest dealer (120 & 200 miles away). Any help would be appreciated. Thanks. :confuse:
You should not worry about the APR...as a matter of fact, the only thing you should focus on for a lease is the total cost of the lease...the sum of all your payments, downpayments, etc...per month. Add up all the costs and divide by the number of months of the lease.
You are not allowed to reduce the Money Factor below zero....so if the MF is .00009, you can't make additional security deposits. But if it's .00019 you can make one multiple security deposit to reduce it to .00009.
24, 36, 39 month lease depends on which is the least expensive TOTAL COST PER MONTH. That's the only number you care about.
The only thing you have to be careful of is that the dealer is using the official Infiniti MF and residuals. That's where this forum can help. If they are using those numbers, then the only thing you can do to reduce the cost is to negotiate a lower price on the car...which is used to calculate the lease.
Since the 2008's are almost here, you should be paying invoice for 2007's or very close...unless there is a rebate by Infiniti (I don't know what they have right now).
Thanks for the info. Especially for clearing up my confusion on the security deposits.
eastnc
Thanks......
Alan
I am not the only one that thinks this way, either.
Try South Bay or Miller (David Marsh) for a better deal/service.
I have 99 Q45t I'm the only owner, 65K mi, I would say the car is in good condition. How should use it for trade-in on a leased 2007 M45?
Thanks,
Hiredhand
Typically, I would recommend that you email 3-4 local Infiniti dealers, if you are in an area with that many. Spend a little time playing them off each other to get the absolute best deal (ie, "You know, dealer X, I really want to buy from you, but you'd have to beat this price $$ that I got from another dealer". ** i wouldnt reveal who the other dealers are though **)
Once the cap cost of the car is estabished (and use these forums to assess how good your deal is), time to deal with the trade-in.
Personally, I always recommend you try not to depend on the dealer, because they will make up some money on your deal by under-valuing your car. What I would do is to either list the car yourself and try to sell it (using Kelly Blue Book values as a guide), or go to a place like CARMAX (which I did) to valuate your car.
In my case, I went to Carmax and got a price for my car that I thought was fair. When I went to the dealer, and they gave me their price for the trade in, it was below the Carmax price, so I told them, "you have to give me $500 more on the trade in, or I cant do this deal today because I will have to go to Carmax and sell it to them and then come back in here another day". Trust me, they will give you the extra $$. Of course, they dont know exactly what Carmax was willing to give you, so you could squeeze a little extra money on the trade in at this point.
If you dont have a Carmax dealer, there are usually a number of 3rd party resellers that act in the same capacity.
Once you have the cap cost and the tradein value decided, the hard work is almost over. Those are the first elements you need.
Then, work on the money factor, sign the deal, and drive away in your beautiful M45!
Thanks!
We did trade my wife's Audi allroad on an '08 FX35 and the residual was 55% vs. 45% for a left over '07 ... the '08 was actually cheaper.
hiredhand
I've read that IFS will consider a written request to do basically the same thing. They take what you would owe as a payoff (basically the balance of your lease) subtract the wholesale value (that they get where?) and depending on where that number falls, you have to pay the difference to turn the car in. You do have the potential lease-turn-in issues to deal with; if you can trade the car you don't.
Car_man
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According to my calculations, if you were to lease a 2007 Infiniti M45 Sedan that has an MSRP of $54,565 and a selling price of $50,795 through Infiniti Financial Services right now for 24 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $731. the payment for an otherwise identical 36 month lease would be around $675. Lastly, the payment for an otherwise identical 39 month lease would be around $631.
Car_man
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The most important number to focus on when negotiating a lease is your vehicle's selling price. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Once you have arrived at a selling price that you are comfortable with, have the dealer that gives it to you calculate your monthly payment using your vehicle's buy rate lease money factor. I can give you an idea of what it should be like. It never hurts to convert the money factor for the vehicle that you are interested in into an interest rate to see how good it is, but if the dealer that you are working with is offering you the buy rate you won't be able to do any better.
If a vehicle already has an attractive lease money factor like .00001 available on it, you will not be able to reduce it any further by making additional security deposits.
The problem with two year leases is that they are usually expensive. New vehicles experience their most rapid rate of depreciation during the first year of ownership. A two year lease will typically be more expensive than a similar 36 or 39 month lease because the 24 month lease has fewer payments to spread this large initial depreciation hit out over.
Car_man
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Here's the information that you're looking for. Infiniti Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2007 Infiniti M35X with 10,000 miles per year are .00017 and 51%, respectively.
Good luck in your negotiations and let me know if you have any other questions.
Car_man
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Alan
The cheapest lease on my car was 24 months....and it was because of the residual value that infiniti was using at that time for each term.
Had the lease numbers changed in the last week? A Dealer here in TX said that Infiniti Financial services has lowered the MF and also lowered the residual for the M35 RWD. THe numbers I got was MF .0002 and Residual 49% for 39 months with 15K/year. I read in the other forum that Infiniti has lease MF to .00001. Not sure which is the right number. THanks.
Just wondering if anyone out there has an idea of whether I could have gotten better deal.