Did the May money factor, residual value, and/or rent charge change?
I believe you said earlier that the April 15k mile M56 money factor was 0.00193 (4.62% interest rate), and 12k mile was 0.00240 (5.76% rate) correct? I hope that's decreased a bit!
HI Car Man What are May Infiniti Financial Services' lease money factor and residual value for a 36 month lease of a 2011 M56 with 12,000 miles per year? Any incentives?
No problem jets613. What you were told is correct. The retail dealer cash that Infiniti was providing on the 2010 M35 was not compatible with its special lease program.
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Hi blast. Vehicles' money factors do not vary by mileage allowance, just by term (length of lease).
Infiniti Financial Services' May buy rate lease money factor for a 36 month lease of a 2011 M56 2WD with 15,000 miles per year are .00193 and 56%, respectively.
The money factor for a lease with only 12,000 miles per year would be the same, but its residual value would be 1% higher.
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Here you go, bernster. Infiniti Financial Services' May buy rate lease money factor and residual value for a 36 month lease of a 2011 M56 2WD with 12,000 miles per year are .00193 and 57%, respectively for consumers who qualify for its top two credit tiers.
The only cash incentive that Infiniti is providing on leases of this car this month is $1,000 loyalty cash.
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I know Infiniti is trying to discourage 24-month leases, but I'm still considering it. (I hope that some of the complaints I have will be ironed out in two years, like the car not having the FX/QX around-view ... or even front-end distance sensors; having ventilated seats that only cool as high as my lower back; and having unusual throttle mapping in some instances). So what are money factor and residual value for a 2-year lease w/15k miles annually? Is Infiniti offering any lease incentives aside from the $1,000 loyalty cash? Thanks!
Thanks kyfdx. That explains that mystery. BTW I think I can get $4000 plus $1000 loyalty off MSRP on a M56 with deluxe touring and tech. Payment with 9 deposits is about $790 month
Infiniti Financial Services' May buy rate lease money factor and residual value for a 24 month lease of a 2011 M35X with 15,000 miles per year are .00240 and 62%, respectively.
To give you an idea of how that compares to a 36 month lease, the 36 mo. / 15k numbers for this car are .00196 and 58%.
The loyalty cash that you mentioned is the only cash incentive that is currently available on leases of this car.
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I think that the M37 is a disappointment and is not getting the demand Nissan expected! Frankly it looks too much like a Maxima...Notice on the Infiniti USA website the lease dropped for $639.00 to $579.00 this week, (with too much $$$ down)...There are better options out there...I think they need to be where they were on price 3yrs ago, around the $600. mo price w/ $1,200. down!
with the current rates and with $1000 loyalty, a 36 mo, 12k mile lease and using multiple security deposits, you can lease an M37 with premium for about $500 a month.
I'd be happy to help you out, hellye1. Infiniti Financial Services' June buy rate lease money factor and residual value for a 36 month lease of a 2011 M37 RWD with 12,000 miles per year are .00155 and 59%, respectively.
The numbers for an otherwise identical 39 month lease are .00162 and 58%.
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Hi Car man. Thank you for the June RWD numbers. My dealer is giving me 61% and .00165 for a 10K 36mo on an M37 AWD and 60% and .00172 on a 39mo. Are the rates different on the AWD than the RWD? Thank you.
Hi Car_man, could you please post the current rates for the M56 as well. Of particular interest to me are the rates on the M56X (Northeast if it makes a difference) 36/39 for 10 & 12K. Thanks in advance.
You're welcome, alfstinky1. Yes, the numbers for the RWD and AWD versions of this car are indeed different. The information that the dealer provided you with the for AWD model is right on the money.
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Hi indemand. Infiniti Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2010 M56 RWD with 12,000 miles per year are .00193 and 57%, respectively.
The numbers for an otherwise identical 39 month lease are .00185 and 54%.
The 36 month numbers for an '11 M56 AWD are .00195 and 56%. Its 39 month numbers are 00189 and 53%.
If you were to lease either of these cars with only 10,000 miles per year, their residual values would be 1% higher.
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Daviddamore1, Infiniti Financial Services' residual values for leases with 15,000 miles per year are 1% lower than its residual values for leases with 12,000 miles per year.
I believe that 15,000 miles per year is the highest mileage allowance that IFS publishes residual values for. If you need to drive more than this, you will have to purchase additional miles on a per-mile basis. It is less expensive to do so at lease signing than it is to wait until lease-end and have to pay an excess mileage penalty.
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I just purchased an M37x. If anyone has an offer for the american express card 150/500 purchase referral program, please send to me at infm37 (at) yahoo.com
I am considering the following lease (I am a returning Infiniti customer so I get the $1000)
2011 Infiniti M56x Splash Guards/Trunk Mat MSRP $61,275 The lease is 39mo/15k miles
The dealer is quoting $790/mo + NJ tax
Am i correct to be using MF=0.00189 Residual=52% for this car? If so, I am backing out around $57,000 selling price for the car
Also, the internet sales person isn’t claiming to know about the MSD program. She is checking with the finance department. Can someone confirm that it’s still available and applicable to this car?
Please let me know what you think of the deal – I’m considering going to close it tonight
up to 9 Multiple security deposits are available on the 2011 M56 leases...I was quoted on one last week same options. I would not close tonight...something is wrong with the mf and residuals. No reason to rush..,,,let's find out the right prices. I was quoted $720 including 7% tax on an M56 36 mos 12k lease. with no money down and 9 security deposits.
I have a deal pending and wanted to know if its a good one or can I do better. M 37 sport, sport touring 39months 12k a year Msrp $56115 Neg price $51650 (after 1000 loyalty) $610 a month tax included $3,450 due at signing
Thanks for that. Maybe the MF/Resid are different because of the mileage (I am looking at 15k vs your 12K) and I was looking at 39mo vs. 36. My selling price is 57k so there's some to work there. I had them run apples to apples, adjusting the residual for mileage difference and using the 36 mo numbers (which are a lot better than the 39s on second glance) I get them down to $740 after tax. Getting closer!
Also - one question about the MSD. The dealer is showing me something that says each MSD is worth 0.20% -- not 0.001 on the MF. So instead of dropping the MF by 0.0009 it only drops it by 0.00075. Is there any documentation that says which is correct? I called Infiniti Financial Services and they were not helpful about the program. The closest I've come to finding anything useful and "official" was on the Canadian website:
Last Question (and thanks again for your time). Residuals will change only based on trim level -- they don't change if you add an option package, correct?
I am looking at quotes from a dealer yesterday on a 2011 M37 with Premium Package.
M37 36 mos .00255 mf residual .59 for 12K miles (.58 for 15k miles).
M37 39 mos .00272 mf residual .58 for 12k miles (.57 for 15k miles)
Then I have the exact same quotes with 9 security deposits and the 36 mo mf drops to .00065 and the 39 mo mf drops to .00072.
If your dealer is showing you something that quotes multiple security factor as a percent, then he is not showing you infiniti's leasing manual which states the reduction to the mf as .0001. As to see a copy of the infiniti leasing instructions/manual that he uses..or ask him to call Infinti financial services while you are sitting in his office. If he tells you it is other than .0001, walk out of the dealership.
It turns out that even though the 39 mo numbers look worse, the total cost of the lease per month is actually about $20 less in my case.
The mf and residual may be different on an X and I know they are different on the M56. The 36 mo M56 mf is .00173 and residual is .57 for 12K (.56 for 15k). Sorry, I don't have the 39 mo numbers.
One bargaining chip...dealers pay ($500 in my area) to get a car from another dealer. If your dealer has the car you want in stock, make a point of telling him that he doesn't have to spend that money on your deal. Worked for me....price came down $500.
Yes, however infiniti's leasing literature and leasing computer program use .0001....not .24%....so I would not expect a dealer to quote percent. I have asked many dealers about multiple security deposits and I have yet to have one give me anything other than .0001 or in the case of BMW/Mercedes .00007. I believe Lexus is also .00007. Infiniti's program is much more generous and a better financial choice.
Everyone putting money down up front should use multiple security deposits instead...if they understood Multiple Security Deposits. Just use the same money you would have used as money down....but use it a different way..
Hello, Car Man! Could you give me the July money factors and residuals for the following leases on a 2011 M56? Also, are there any customer incentives this month (like loyalty cash, etc.)?
24-month lease with 12,000 miles annually 36-month lease with 12,000 miles annually 39-month lease with 12,000 miles annually
24-month lease with 15,000 miles annually 36-month lease with 15,000 miles annually 39-month lease with 15,000 miles annually
I realize the 24-month leases can be a lot worse than 36-month, but I'm still considering it. I just don't trust that I could agree to a 39-month lease but then do an early lease termination in order to lease a repalcement Infiniti in two years (without having to pay a lot of money out of pocket for the decline-in-value).
Hi hellye1. Infiniti Financial Services' July buy rate lease money factor and residual value for a 36 month lease of a 2011 M37 RWD with 12,000 miles per year are .00137 and 57%, respectively for consumers who qualify for its top credit tier.
The numbers for an otherwise identical 39 month lease are .00146 and 55%.
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Ohhh the 56. I don't see many of those around. Here's the information that you're looking for.
Infiniti Financial Services' July buy rate lease money factor and residual value for a 24 month lease of a 2011 M56 RWD with 15,000 miles per year are .00240 and 59%, respectively for consumers who qualify for its top credit tier.
The numbers for an otherwise identical 36 month lease are .00176 and 54%.
The numbers for an otherwise identical 39 month lease are .00202 and 53%.
Traditionally IFS has added 1% to its 15,000 mile per year residual values for leases with only 12,000 miles per year, but Nissan Motor Acceptance Corp. just revised its low mileage lease adder to 2% for 12k leases. I'll have to check to see if IFS has done the same.
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Greetings alfstinky1. Here's the information that you're looking for. Infiniti Financial Services' July buy rate lease money factor and residual value for a 36 month lease of a 2011 M37X with 10,000 miles per year are .00130 and 58%, respectively for consumers who qualify for its top credit tier.
The numbers for an otherwise identical 39 month lease are .00140 and 57%.
Please see my note at the bottom of the previous post about the possibility that IFS' low mileage residual value adders may have changed.
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That's very interesting...compared to June, the 36-month money factor improved from 0.00193 to 0.00176, but the residual value declined from 56% to 54%, which results in an overall higher monthly payment (when I compare using the lease calculator). Wonder why Infiniti now thinks their flagship sedan will hold less of its value over time? Hmmmm.....
Is the $1,000 loyalty cash still in place?
If one takes out a 36-month lease and then wants to do an early lease termination after 18 months to lease another Infiniti, does the customer usually get nailed with a huge payment that would dissuade one from actually doing it?
I live in South Florida and am looking to lease a new M37 with Sport and Premium packages for 39 months and 12k per year. What is a realistic range for a monthly payment with only putting inception money (1st month payment, tax, etc) down?
Vehicles' residual values naturally decline as the model year progresses. Automakers often increase their lease support by lowering vehicles' money factors in an effort to offset at least some of the payment increase caused by these lower residual values. It appears as though that is what has happened here.
Yes, the $1,000 cash incentive on leases of the '11 M56 to loyal customers is still available this month.
It would likely be very expensive for you to get out of a 36 month lease after only 18 months, even if you want to get another Infiniti.
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If you get out of a lease early and the interest rate on that lease is very low, I believe it's not much different than if you had bought the car and then sold it (or traded it) after 18 months. In fact, that's exactly what you are doing....you are buying the car and then selling/trading it. Infiniti is now charging a $350 termination fee at the end of the lease, so you might have to pay that as well.
Toddr3.....with no money down, no multiple security deposits, no loyalty credit, and good personal credit your payment should be around $630 a month if you negotiate close to the invoice price.
So the big question for me is whether I suffer the higher payment for a 24-month lease, or get the lower payment with a 36-month lease and try to trade in if a later model year M gets released that addresses my concerns with the 2011 model (e.g., no around-view monitor, no valet mode, no remote start, no mirror turn signals, no daytime running lights, ventilated seats don't reach upper back, etc.)
Based on my preliminary estimates, an M56 with Premium Pkg (incl.), Deluxe Touring Pkg, Technology Pkg, rear spoiler, illuminated kick plates, splash guards, vehicle impact sensor, and carpeted trunk mat costs $66,495. According to Edmunds, invoice is $60,899 (such price being available using the VPP program "D" plan), although I don't know how reliable that invoice figure is.
Assuming $60,899 is correct, then adding $3,200 to approximate other costs (LoJack, 1st month's payment, DMV fees, etc.), subtracting $1,000 for the loyalty cash, and putting $1,000 down, I wind up with a cap cost of $62,099.
Therefore, on a 36-month lease @ 15k miles/yr [money factor 0.00176 (or 4.22%) and residual 54%] with CA (Los Angeles) sales tax [9.75%], the monthly payments would be $987.80. Cost over two years would be $24,707.20 (which includes the down payment).
For a 24-month lease @ 15k miles/yr [money factor 0.00240 (or 5.76%) and residual 59%] with CA (Los Angeles) sales tax [9.75%], the monthly payments would be $1,312.60. Cost over those two years would be $32,502.40 (which includes the down payment).
So the big question is whether, after two years of a 36-month lease, if I wanted to try an early lease termination, would it cost me more than $7,795.20?! :confuse:
BTW, if I put down $4,000 instead of $1,000, the 36-month payments are $890.54 and the 24-month payments are $1,167.51. Total cost of the 36 mo. after two years would be $25,372.96(more), and total cost of the 24 mo. would be $32,020.24(less). That would make the difference in cost $6,647.28 if considering an early lease termination.
As others on this forum have noted, if I instead put the extra down payment towards multiple security deposits, not only do I get those deposits back at the end, but I also get a more favorable monthly payment. But I'm too lazy to do the math right now since I've been typing this post for 15 minutes!! :sick:
The question is what is the buyout price of the car after 24mos and what will you get in trade in for it.....because that's the only way you will get out of the lease. You can figure out the buyout price.....what is the total cost of the lease over 36 months and how much have you paid after 24mos. The difference plus $350 is your buy out price (not sure about the $350). What do you think you can get for a 24 mos old car? Infiniti thinks it's worth 59% of the original MSRP. You just have to do the math....there's no magic.
MSD's will definitely save you money over the life of the lease....
I did the work to figure out the monthly cost of a 39 month lease vs buying and selling the car after 39 mos. I compared two lease cases.....1 using the maximum multiple security deposits, the other using the same $ amount as a down payment.....so in my case it was $5400 either as multiple security deposit or down payment. The most expensive way to use the car for 39 mos was to lease with a down payment. The cheapest way to own the car was.....multiple security deposits and the purchase case was about in the middle. But you can work the numbers for your case.
According to the leaseguide.com calculator, the total payments for my 36-month lease would be $35,561. My payments made on a 36-month lease at the two-year mark would total $24,707. According to Infiniti's current residual values, a 2-year-old M56 would be worth 59%, or $39,232.
So you're saying that my buy-out would be: ($35,561 - 24,707) - $39,232 + $350 = -$28,028? i.e., The amount still owed on the 36-month lease ($10,854) minus what the car is worth ($39,232), plus the $350 fee? Since it's a negative number, does that mean I'd owe $0 on the early lease return?
$35,561 total payments + $35,097 residual value - 24,707 actual payments = $45,951.
So if the actual residual value of the car is more than $45,951 (69% - not!), then I pay nothing except the $350 fee ($45,951 - $45,951 + 350) to terminate the lease early, right?
And if the car is actually worth the exact residual value buy-out stated on the lease contract (54%), then I would have to pay $11,204 total ($45,951 - 35,097 + $350), right?
Am I correct that the $70,658 total of payments plus residual value is due to interest, fees, and tax (since it's higher than the original MSRP of $66,495)?
This thread on FreshAlloy just serves to confuse me more! Some posters say they've never paid extra on an early lease termination, while others say it's impossible not to get soaked when doing so.
I think I may ultimately go with the 24-month lease and just convince myself that it costs less than an early lease termination, even if it doesn't!
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I believe you said earlier that the April 15k mile M56 money factor was 0.00193 (4.62% interest rate), and 12k mile was 0.00240 (5.76% rate) correct? I hope that's decreased a bit!
What are May Infiniti Financial Services' lease money factor and residual value for a 36 month lease of a 2011 M56 with 12,000 miles per year? Any incentives?
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Infiniti Financial Services' May buy rate lease money factor for a 36 month lease of a 2011 M56 2WD with 15,000 miles per year are .00193 and 56%, respectively.
The money factor for a lease with only 12,000 miles per year would be the same, but its residual value would be 1% higher.
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The only cash incentive that Infiniti is providing on leases of this car this month is $1,000 loyalty cash.
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To give you an idea of how that compares to a 36 month lease, the 36 mo. / 15k numbers for this car are .00196 and 58%.
The loyalty cash that you mentioned is the only cash incentive that is currently available on leases of this car.
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M37 RWD, 12,000 a year 36 or 39 month lease.
Thanks for your help.
What sort of discount are people getting off of MSRP for this vehicle?
mf .00155
Residual: .60 (10K miles) .59 (12k miles) .58 (15k miles)
You can also apply up to a maximum of 9 multiple security deposits which drops the mf by .0009....so your mf could be as low as .00065
I was offered $3585 off MSRP + another $1000 for loyalty on a 2011 M37 with Premium
Note: the 36 month lease is the best deal right now; 39 months is more expensive due to a higher mf.
The numbers for an otherwise identical 39 month lease are .00162 and 58%.
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The numbers for an otherwise identical 39 month lease are .00185 and 54%.
The 36 month numbers for an '11 M56 AWD are .00195 and 56%. Its 39 month numbers are 00189 and 53%.
If you were to lease either of these cars with only 10,000 miles per year, their residual values would be 1% higher.
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I believe that 15,000 miles per year is the highest mileage allowance that IFS publishes residual values for. If you need to drive more than this, you will have to purchase additional miles on a per-mile basis. It is less expensive to do so at lease signing than it is to wait until lease-end and have to pay an excess mileage penalty.
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I just purchased an M37x. If anyone has an offer for the american express card 150/500 purchase referral program, please send to me at infm37 (at) yahoo.com
Thanks a lot
I am considering the following lease (I am a returning Infiniti customer so I get the $1000)
2011 Infiniti M56x
Splash Guards/Trunk Mat
MSRP $61,275
The lease is 39mo/15k miles
The dealer is quoting $790/mo + NJ tax
Am i correct to be using MF=0.00189 Residual=52% for this car?
If so, I am backing out around $57,000 selling price for the car
Also, the internet sales person isn’t claiming to know about the MSD program. She is checking with the finance department.
Can someone confirm that it’s still available and applicable to this car?
Please let me know what you think of the deal – I’m considering going to close it tonight
Thanks very much
M 37 sport, sport touring
39months
12k a year
Msrp $56115
Neg price $51650 (after 1000 loyalty)
$610 a month tax included
$3,450 due at signing
What do you think?
Thanks for that. Maybe the MF/Resid are different because of the mileage (I am looking at 15k vs your 12K) and I was looking at 39mo vs. 36. My selling price is 57k so there's some to work there. I had them run apples to apples, adjusting the residual for mileage difference and using the 36 mo numbers (which are a lot better than the 39s on second glance) I get them down to $740 after tax. Getting closer!
Also - one question about the MSD. The dealer is showing me something that says each MSD is worth 0.20% -- not 0.001 on the MF. So instead of dropping the MF by 0.0009 it only drops it by 0.00075. Is there any documentation that says which is correct? I called Infiniti Financial Services and they were not helpful about the program. The closest I've come to finding anything useful and "official" was on the Canadian website:
http://www.infiniti.ca/en/general/calculator/Deposits_window.html
Last Question (and thanks again for your time). Residuals will change only based on trim level -- they don't change if you add an option package, correct?
M37 36 mos .00255 mf residual .59 for 12K miles (.58 for 15k miles).
M37 39 mos .00272 mf residual .58 for 12k miles (.57 for 15k miles)
Then I have the exact same quotes with 9 security deposits and the 36 mo mf drops to .00065 and the 39 mo mf drops to .00072.
If your dealer is showing you something that quotes multiple security factor as a percent, then he is not showing you infiniti's leasing manual which states the reduction to the mf as .0001. As to see a copy of the infiniti leasing instructions/manual that he uses..or ask him to call Infinti financial services while you are sitting in his office. If he tells you it is other than .0001, walk out of the dealership.
It turns out that even though the 39 mo numbers look worse, the total cost of the lease per month is actually about $20 less in my case.
The mf and residual may be different on an X and I know they are different on the M56. The 36 mo M56 mf is .00173 and residual is .57 for 12K (.56 for 15k). Sorry, I don't have the 39 mo numbers.
One bargaining chip...dealers pay ($500 in my area) to get a car from another dealer. If your dealer has the car you want in stock, make a point of telling him that he doesn't have to spend that money on your deal. Worked for me....price came down $500.
9 MSD's would lower the APR by 2.16%.
Everyone putting money down up front should use multiple security deposits instead...if they understood Multiple Security Deposits. Just use the same money you would have used as money down....but use it a different way..
M37 RWD, 12,000 a year 36 or 39 month lease this month?
24-month lease with 12,000 miles annually
36-month lease with 12,000 miles annually
39-month lease with 12,000 miles annually
24-month lease with 15,000 miles annually
36-month lease with 15,000 miles annually
39-month lease with 15,000 miles annually
I realize the 24-month leases can be a lot worse than 36-month, but I'm still considering it. I just don't trust that I could agree to a 39-month lease but then do an early lease termination in order to lease a repalcement Infiniti in two years (without having to pay a lot of money out of pocket for the decline-in-value).
Thank you!
The numbers for an otherwise identical 39 month lease are .00146 and 55%.
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Infiniti Financial Services' July buy rate lease money factor and residual value for a 24 month lease of a 2011 M56 RWD with 15,000 miles per year are .00240 and 59%, respectively for consumers who qualify for its top credit tier.
The numbers for an otherwise identical 36 month lease are .00176 and 54%.
The numbers for an otherwise identical 39 month lease are .00202 and 53%.
Traditionally IFS has added 1% to its 15,000 mile per year residual values for leases with only 12,000 miles per year, but Nissan Motor Acceptance Corp. just revised its low mileage lease adder to 2% for 12k leases. I'll have to check to see if IFS has done the same.
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The numbers for an otherwise identical 39 month lease are .00140 and 57%.
Please see my note at the bottom of the previous post about the possibility that IFS' low mileage residual value adders may have changed.
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Is the $1,000 loyalty cash still in place?
If one takes out a 36-month lease and then wants to do an early lease termination after 18 months to lease another Infiniti, does the customer usually get nailed with a huge payment that would dissuade one from actually doing it?
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Yes, the $1,000 cash incentive on leases of the '11 M56 to loyal customers is still available this month.
It would likely be very expensive for you to get out of a 36 month lease after only 18 months, even if you want to get another Infiniti.
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Based on my preliminary estimates, an M56 with Premium Pkg (incl.), Deluxe Touring Pkg, Technology Pkg, rear spoiler, illuminated kick plates, splash guards, vehicle impact sensor, and carpeted trunk mat costs $66,495. According to Edmunds, invoice is $60,899 (such price being available using the VPP program "D" plan), although I don't know how reliable that invoice figure is.
Assuming $60,899 is correct, then adding $3,200 to approximate other costs (LoJack, 1st month's payment, DMV fees, etc.), subtracting $1,000 for the loyalty cash, and putting $1,000 down, I wind up with a cap cost of $62,099.
Therefore, on a 36-month lease @ 15k miles/yr [money factor 0.00176 (or 4.22%) and residual 54%] with CA (Los Angeles) sales tax [9.75%], the monthly payments would be $987.80. Cost over two years would be $24,707.20 (which includes the down payment).
For a 24-month lease @ 15k miles/yr [money factor 0.00240 (or 5.76%) and residual 59%] with CA (Los Angeles) sales tax [9.75%], the monthly payments would be $1,312.60. Cost over those two years would be $32,502.40 (which includes the down payment).
So the big question is whether, after two years of a 36-month lease, if I wanted to try an early lease termination, would it cost me more than $7,795.20?! :confuse:
BTW, if I put down $4,000 instead of $1,000, the 36-month payments are $890.54 and the 24-month payments are $1,167.51. Total cost of the 36 mo. after two years would be $25,372.96 (more), and total cost of the 24 mo. would be $32,020.24 (less). That would make the difference in cost $6,647.28 if considering an early lease termination.
As others on this forum have noted, if I instead put the extra down payment towards multiple security deposits, not only do I get those deposits back at the end, but I also get a more favorable monthly payment. But I'm too lazy to do the math right now since I've been typing this post for 15 minutes!! :sick:
MSD's will definitely save you money over the life of the lease....
I did the work to figure out the monthly cost of a 39 month lease vs buying and selling the car after 39 mos. I compared two lease cases.....1 using the maximum multiple security deposits, the other using the same $ amount as a down payment.....so in my case it was $5400 either as multiple security deposit or down payment. The most expensive way to use the car for 39 mos was to lease with a down payment. The cheapest way to own the car was.....multiple security deposits and the purchase case was about in the middle. But you can work the numbers for your case.
So you're saying that my buy-out would be:
($35,561 - 24,707) - $39,232 + $350 = -$28,028?
i.e., The amount still owed on the 36-month lease ($10,854) minus what the car is worth ($39,232), plus the $350 fee? Since it's a negative number, does that mean I'd owe $0 on the early lease return?
Somehow I think my math is wrong
Close .. you don't use the current value after 2 years, but rather the residual value at the end of the lease term as stated in the lease contract.
Also, instead of subtracting the residual value, you add it to the remaining payments, plus the $350.
$35,561 total payments + $35,097 residual value - 24,707 actual payments = $45,951.
So if the actual residual value of the car is more than $45,951 (69% - not!), then I pay nothing except the $350 fee ($45,951 - $45,951 + 350) to terminate the lease early, right?
And if the car is actually worth the exact residual value buy-out stated on the lease contract (54%), then I would have to pay $11,204 total ($45,951 - 35,097 + $350), right?
Am I correct that the $70,658 total of payments plus residual value is due to interest, fees, and tax (since it's higher than the original MSRP of $66,495)?
This thread on FreshAlloy just serves to confuse me more! Some posters say they've never paid extra on an early lease termination, while others say it's impossible not to get soaked when doing so.
I think I may ultimately go with the 24-month lease and just convince myself that it costs less than an early lease termination, even if it doesn't!
Thanks.