Residuals and Money Factors
08-16-2007, 09:35 AM
#16
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Originally Posted by nemoid
that was my question. I'm most likely going to buy the car and not lease.... but how long do you guys think before the dealers start budging on MSRP and will negotiate?
08-16-2007, 09:39 AM
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Originally Posted by lyfeis
The dealer I spoke to said there's no sure answer to that but the original coupe took several months. He said probably by the end of the year.
08-16-2007, 11:39 PM
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wow... more than i wanna spend. i'd rather not spend more than $500/mo on a lease. i have no problem waiting a few more months. Esp since i ride the motorcycle more than anything right now.
08-17-2007, 06:06 AM
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Wow - all of this sounds expensive for a +/- $40K car. I just leased my wife a Mercedes E350 with a sticker fo $56K, total $2500 drive off, 33 months, 15K miles per year and the monthly payment....$586!! I know the cars are not comparable, but this shows how inflated the G37 lease quotes are.
I know when the '07 sedan came out they were asking $500/mo and now they have dropped to the $300 range. So, I would advise waiting until the coupe prices go down too.
I know when the '07 sedan came out they were asking $500/mo and now they have dropped to the $300 range. So, I would advise waiting until the coupe prices go down too.
08-17-2007, 09:24 AM
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Originally Posted by gsg
Wow - all of this sounds expensive for a +/- $40K car. I just leased my wife a Mercedes E350 with a sticker fo $56K, total $2500 drive off, 33 months, 15K miles per year and the monthly payment....$586!! I know the cars are not comparable, but this shows how inflated the G37 lease quotes are.
I know when the '07 sedan came out they were asking $500/mo and now they have dropped to the $300 range. So, I would advise waiting until the coupe prices go down too.
I know when the '07 sedan came out they were asking $500/mo and now they have dropped to the $300 range. So, I would advise waiting until the coupe prices go down too.
08-17-2007, 09:59 AM
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When comparing leases, you have to look at 2 things - and 2 things only. Residual values and money factors. The G37 has great residual values right now, but not so great of a money factor. I expect that 74% with sport after 24 months and 15k miles a year is class leading. However, a money factor of .00285 is definitely not. Once the dealers actually have unsold cars on the lot, that money factor will start to drop - and you will see better lease rates.
However, you can't compare leases to other car manufacturers by quoting monthly payment. You can stack the payment up front or have a highly discounted selling price - those things matter to what you pay, but those are independent measures from lease rates that you negotiate with your dealer.
If you post the residual values and money factors for any other cars you are looking at, that's when you can really see how they compare. Until then, it might just sound like a better deal. And as other posters have stated, if the monthly payment is very important to you, just wait 4-6 months and you should get a much better rate.
However, you can't compare leases to other car manufacturers by quoting monthly payment. You can stack the payment up front or have a highly discounted selling price - those things matter to what you pay, but those are independent measures from lease rates that you negotiate with your dealer.
If you post the residual values and money factors for any other cars you are looking at, that's when you can really see how they compare. Until then, it might just sound like a better deal. And as other posters have stated, if the monthly payment is very important to you, just wait 4-6 months and you should get a much better rate.
08-17-2007, 10:10 AM
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Also.. aren't some of the other quotes people are mentioning on other cars probably at 12k miles per year (which I've always thought was the "standard" mileage for leases), whereas these residuals for the G37 are for 15k miles? From another post:
Residuals posted are for 15K miles/year. Add 2% to Residual for 12k mi/yr and 3% for 10k mi/yr on all terms
I'm sure it won't make up entirely for the money factor being high, but it'll help I would think, when some people are making comparisons.
Residuals posted are for 15K miles/year. Add 2% to Residual for 12k mi/yr and 3% for 10k mi/yr on all terms
I'm sure it won't make up entirely for the money factor being high, but it'll help I would think, when some people are making comparisons.
08-17-2007, 01:55 PM
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Originally Posted by gsg
Wow - all of this sounds expensive for a +/- $40K car. I just leased my wife a Mercedes E350 with a sticker fo $56K, total $2500 drive off, 33 months, 15K miles per year and the monthly payment....$586!! I know the cars are not comparable, but this shows how inflated the G37 lease quotes are.
I know when the '07 sedan came out they were asking $500/mo and now they have dropped to the $300 range. So, I would advise waiting until the coupe prices go down too.
I know when the '07 sedan came out they were asking $500/mo and now they have dropped to the $300 range. So, I would advise waiting until the coupe prices go down too.
That is, of course, if I feel the G37 isnt worth having to wait for the MF's and resids to drop.
08-17-2007, 02:31 PM
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I just got back from the dealer and was talking to him about leases... while the residuals seemed in line with the original post, the money factor he mentioned was way higher... w/ a 0.00310 for credit less than 740 and .00300 for credit scores 740 or better (39 mo. lease). Has anyone gotten any other information direct from the dealer on lease programs? And as you'd expect, these were supposedly from Infiniti Financial, not a 3rd party.
08-17-2007, 02:35 PM
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Originally Posted by WellBelowH2O
I just got back from the dealer and was talking to him about leases... while the residuals seemed in line with the original post, the money factor he mentioned was way higher... w/ a 0.00310 for credit less than 740 and .00300 for credit scores 740 or better (39 mo. lease). Has anyone gotten any other information direct from the dealer on lease programs? And as you'd expect, these were supposedly from Infiniti Financial, not a 3rd party.
08-17-2007, 02:51 PM
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Originally Posted by WellBelowH2O
w/ a 0.00310 for credit less than 740 and .00300 for credit scores 740 or better (39 mo. lease).
08-18-2007, 10:51 PM
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The money factors are very high right now.
A couple of points on the above posts:
1. As far as I know sedans are not leasing for 300's - maybe on a bare bones model at the high end but I still doubt it unless you put money down as a cap cost reduction (a major no-no). Mid-high 4's for nicely equipped models (with tax, tags down - no cap cost reduciton) is more like it.
2. EJ2000, yes you can compare vehicles by looking at monthly payments. There is no reason to stack payments up front on a lease. You always want to lease a car with the highest possible residual, lowest money factor, and best negotiated price off of MSRP. If the poster is paying mid-5's for a $56k car, that's all that matters. That just showed me that I'd never buy an E350, but I'd definitely consider one as a lease. In 3 years he returns the car, so who cares if the buyout is alot at the end? Even if you plan on buying the car at the end (which you shouldn't in this case), you still can. The lower your lease payment was, the more you'll pay to buy out but you already realized the savings while paying less every month of the lease.
The E350 example that was posted is a perfect example of a car that makes a great lease over buy. That currently is not the case for the G37.
A couple of points on the above posts:
1. As far as I know sedans are not leasing for 300's - maybe on a bare bones model at the high end but I still doubt it unless you put money down as a cap cost reduction (a major no-no). Mid-high 4's for nicely equipped models (with tax, tags down - no cap cost reduciton) is more like it.
2. EJ2000, yes you can compare vehicles by looking at monthly payments. There is no reason to stack payments up front on a lease. You always want to lease a car with the highest possible residual, lowest money factor, and best negotiated price off of MSRP. If the poster is paying mid-5's for a $56k car, that's all that matters. That just showed me that I'd never buy an E350, but I'd definitely consider one as a lease. In 3 years he returns the car, so who cares if the buyout is alot at the end? Even if you plan on buying the car at the end (which you shouldn't in this case), you still can. The lower your lease payment was, the more you'll pay to buy out but you already realized the savings while paying less every month of the lease.
The E350 example that was posted is a perfect example of a car that makes a great lease over buy. That currently is not the case for the G37.
08-20-2007, 08:08 AM
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Why ask a dealer for a lease when you can find better rates on the internet:
2008 Infiniti G37 Sport 2dr Coupe
Window Sticker $ 42,500
Neg Purchase Price $42,500
Down payment amount $3,500
Number of miles you drive per year 15000
Lease term (in months) 36
Lease Offers
Lease Term Residual Money Factor Payment
36 months $22,041 0.00266 $ 559
2008 Infiniti G37 Sport 2dr Coupe
Window Sticker $ 42,500
Neg Purchase Price $42,500
Down payment amount $3,500
Number of miles you drive per year 15000
Lease term (in months) 36
Lease Offers
Lease Term Residual Money Factor Payment
36 months $22,041 0.00266 $ 559
08-20-2007, 08:58 AM
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Originally Posted by G-WannaBe
Why ask a dealer for a lease when you can find better rates on the internet:
2008 Infiniti G37 Sport 2dr Coupe
Window Sticker $ 42,500
Neg Purchase Price $42,500
Down payment amount $3,500
Number of miles you drive per year 15000
Lease term (in months) 36
Lease Offers
Lease Term Residual Money Factor Payment
36 months $22,041 0.00266 $ 559
2008 Infiniti G37 Sport 2dr Coupe
Window Sticker $ 42,500
Neg Purchase Price $42,500
Down payment amount $3,500
Number of miles you drive per year 15000
Lease term (in months) 36
Lease Offers
Lease Term Residual Money Factor Payment
36 months $22,041 0.00266 $ 559
Using Infiniti's numbers (.00285 & a 62% residual) nets out to $538 w/out tax and $570 w/ tax (again using 6%). If I am doing something wrong with the calculations, someone please let me know.
08-20-2007, 10:02 AM
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Originally Posted by WellBelowH2O
First, let me preface this by saying that I'm by no means an expert in leasing, but plugging your figures into a lease calculator gives me $633/mo with 0 sales tax, and if I use an average of 6%, it jumps up to $671. And the residual you are quoting is HORRENDOUS at 52%. How are you getting $559 a month with these numbers?
Using Infiniti's numbers (.00285 & a 62% residual) nets out to $538 w/out tax and $570 w/ tax (again using 6%). If I am doing something wrong with the calculations, someone please let me know.
Using Infiniti's numbers (.00285 & a 62% residual) nets out to $538 w/out tax and $570 w/ tax (again using 6%). If I am doing something wrong with the calculations, someone please let me know.
Hi Well Below, are you a scuba diver? I am thats why i asked...
These are numbers off of a website, you can play with most of the variables for any car and come up with a monthly payment. They just started posting G37 numbers about 2 weeks ago, I am trying to lease when i get my next car, so I am checking various avenues myself, hit their site and tell me what you think... I am no expert either and have never leased a car before myself...
www.leasecompare.com
I am not sure if they are great deals or there is a lot of hidden fineprint, but the MFactors looked good....