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Comments
You're right, the 2006 Mercedes-Benz E350 is an outstanding vehicle to lease right now. If I was in the market for a vehicle in this class, I would go with the E350 way before I went with an Infiniti M. You can get a loaded E350 sedan with navigation, AWD, the works for under $500 per month before tax. That's a great deal.
How do I get this deal beacause that is an excellent one? I am asking for details etc.
Thanks,
David
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On an unrelated note, man what's with Pennsylvania sales tax. 9%!?!?!?!? That's brutal. How does the government expect us to buy anything. OK, I'll hop off of my soap box now.
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Now let's calculate a lease payment on this car that you are interested in and see what we come up with. According to my calculations, if you were to lease a 2006 Infiniti M35 Base with an MSRP of $43,290 and a selling price of $40,728 through Infiniti Financial Services right now for 42 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $519.
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You are absolutely right, vehicles' residual values gradually fall as the model year progresses. Manufacturers usually have a target lease payment for their vehicles in mind and will lower their money factors to make up for an drop in residual values. If a vehicle is not selling well, they can always increase a vehicle's money factors even more. I don't expect Infiniti to make any dramatic changes to its lease program on the M35 before the end of the year.
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For now I can tell you that the lease program that you were quoted is right in line with Infiniti Financial Services' current program for this car.
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By the way, it's nice to read that you advise people against putting a down payment on a lease. This is something I've been telling my friends and posting on other message boards for a while. I also think that the tax should be put in the payment even though you'll pay interest on the taxes. I recommend putting it in the payment for the same reasons why you indicated that people shouldn't put a down payment on a lease.
I've seen lots of talk about M35 rates; could you please post money factors and residuals for an M45 Sport, 12k miles per year, both 24 and 36 month terms. Thanks!
-Dave
I have seen many posts on the M35S and wanted to know if the IFS factors are the same for the M35x? The car is in Illinois. Looking at 39 month lease with 12K miles a year. Model is M35x with Journey pkg. Was quoted Residual of 59% and Money Factor of 0.0020.
Thanks for all your help!
As I read through I realize you will need some more info. M35x MSRP at $47,020 sale price at $45,434. Includes Journey, Spoiler, Full Spare and Trunk Mats. Taxes in my area of Illinois are 6.75%.
Thanks,
Thanks for the information! I am trying to work with a dealer that won't disclose MF, residual et. thinking because I'm female I will blindly sign their contract. I've leased numerous cars and would like to contact the dealer you worked with to locate a vehicle. Your terms are what I have been trying to negotiate locally with no luck. If you can send me your sales contact I would greatly appreciate it.
M35 AWD with Journey and Splash Guards
MSRP 46940
CAP Cost/final sales price, 43626
no money down or out of pocket
tax rate 3.75%
39 months
15 miles per year
Thanks!
I am not sure why you are looking at a 42 month term. The 39 month is a much better value, let me break the options down for you.....with a sale price of 40728 plus the bank fee of 550 your total capitalized cost will be $41278.
36 m /15k = 548.85 pre tax
39m /15k = $535.14 pre tax
42m / 15k = $533.14 pre tax
It does NOT pay to go 42 months to save 2 dollars a month. Honestly i would go 36 months and spend the extra 15 a month and be out after 3 yrs. Remember the car will have 45,000 miles in 3 yrs, no need to push the warranty terms.
I hope this helps you. Let me know if you have any other questions. (i do this for a living) :-) enjoy your M35
For the record I absolutely love my M35 diamond graphite/ stone w/sport/journey/tech/splash
these 3 factors make up your total monthly payment
depreciation + rent charge + tax = montly payment
hope this helps rest your mind.....
Many Thanks. I'm in Washington DC
U03 Technology Package w/Sirius
J02 Journey Package Sport
R92 Aerodynamic Body Kit
T02 19" Full Size Spare
When I priced it out with the same options on Edmunds.com, the MSRP was $57990 just like the sticker and the invoice price was $52804. It's a 39 month 12K miles/year lease with a money factor of 0.00177 and a residual percentage of 59%. They quoted me a sales price of $53334 but when I punch the numbers in the edmunds.com leasing calculator it comes up to a little over $700/month. If I change the sales price to $53137, the monthly cost comes out to exactly $695/month. The edmunds.com calculator is very annoying because it always estimates the
"Title, registration & other costs" and it always zeroes out the residual value. It's either $333 over invoice (my calculated sales price of $53137 - $52804 invoice price) or $530 over invoice (their sales price of $53334 - $52804 invoice price). Regardless, it's still sounds like an excellent deal. I only pay $1569 to walk out the door with the car which consists of $695 first month's payment, $550 bank fee, $155 registration fee and $169 document fee. The security deposit is waived for tier 1 credit.
Keep in mind that I really only wanted to spend around $650/month which I should have been able to do with the M35 Sport with the same options. They quoted me a lease payment (including sales tax) of $636/month for a M35 Sport with techology and journey packages (no spoiler or aero package). That price was with a money factor of 0.00179 and a residual of 58%. On that deal, they said the MSRP was $50150 and the sales price was $47400 but I when put all those numbers in the lease calculator, it doesn't come out to $636. Also, the MSRP on an M35 Sport with technology and journey packages should have been $49990. I'm not sure how they got $50150 and where that extra $160 is coming from because there aren't any options for $160 or that add up to $160.
Car_man, they also told me that the money factor on the M35 Sport was 0.00179 not 0.00162 like you had indicated in your previous posts. Did that money factor require anything special like multiple deposits?
Regardless, I really want to find out what people think of the M45 Sport deal of $695/month. Is that too good to pass up?
What dealer was that? LOL
AND, Question #2:
if I am aware of the money factor and the residual as being set by the manufacturer and I am not putting any cash towards the cap reduction, then why should I not negotiate a monthly lease payment? It seems that the cap cost is irrelevant if I get the payment and up front money as I desire.
So far, the range for 10K and 36 or 39 months, with only acquisition, tax title and registration fees with the first payment on delivery, seems to be around $630.00 per month. Is this fair?
I ended up taking the deal since it was too good to pass up. I had also contacted several dealers via the internet and the ones who were willing to give $1000 over invoice on a M35 Sport (not M45 Sport) were Competition Infiniti on Long Island and Kings Infiniti in Brooklyn. They were even willing to check the system (i.e. "run a locate") for availability of cars with specific options that were coming in before I made a deposit or made a trip to the dealership. Some of the dealers I dealt with wanted a deposit before they would "run a locate". I think they want the deposit so that you won't take the information they give you about a specific car in the system and then go from dealership to dealership looking for the best price on that car. I can understand that but I wouldn't give a dealer a deposit unless it was on a specific car, not on the hope they find the car I'm looking for.
You've been giving your friends good advice about not putting any money down when leasing.
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Let's estimate what your lease payment should be on this car. According to my calculations, if you were to lease a base 2006 Infiniti M35 with an MSRP of $45,341 and a selling price of $43,019 through IFS right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $569. Interestingly, the payment for an otherwise identical 48 month lease would be higher at around $590. As you can see, the $700 a month that you were quoted is way too high.
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They seem a bit stiff on the MSRP minus number....
PD