go4gr8

There's so many threads about this subject in this forum and the information is quite fragmented. Because of that, I'd like to create ONE thread about the subject entirely so we don't have to keep answering the same questions. I suggest people like iko and anyone else contribute to this.
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So you want to lease a G-coupe. Most people just look at the monthly and be done with it. If you want that simple method and it fits your needs, then go with it. If you want to get the best deal you can through leasing, the following will be helpful to you:

These numbers help make up your lease:
- Purchase price
- Terms (yearly miles, length of lease in months)
- Money Factor
- Residual price at end of term (% based on MSRP, percentage varies with term length and mileage)
- acquisition fee
- state tax

You can plug in these numbers using the spreadsheet from carbuyingtips.com. There's also another one floating around here someone uploaded into a thread.


1. Start with deciding on a purchase price of the car on what YOU want to pay, not what the dealer suggests. Most people make the mistake of taking the first offer later realizing they could have done better if they wanted to lower the expense. Also take into consideration that a lower purchase price, means a lower amount paid to the dealer and lower amount of tax being paid.

Take a look at websites like Edmunds.com and configure your car the way you want it. The invoice price can be found here. Also check out if there's incentives and special offers.

2. Get quotes from more than one dealer. You can do this by email or phone. If you do this by email, tell them you're serious in buying and need to know the pricing. They'll give you a price Go out of state if you have to.

It's also recommended to get referrals first. There are plenty of people here that have ordered their G37 at or below invoice pricing. Given that most car companies have declining sales and with the state of the economy, there are amazing deals to be had. Also, if they don't have the exact car you want in stock, ask if it can be ordered at invoice pricing if they also don't find it by doing a dealer swap. Note that some dealers charge extra for swapping.

3. Know your credit score and history. This will better prepare you when you negotiate the interest rate (aka Money Factor). Places like Leasecompare.com will not deal with people who have less than 670 on their credit score.

4. When negotiating your purchase price, if you need to do it, put it against invoice pricing or at least another quote by another dealer. You can negotiate by email or phone. By email may take longer, especially if you have to pull teeth to get the deal that you want. Email is advantageous if you're taking your time and want to see what your dealer is saying to you - it's less emotionally-based.

5. If you buy stateside, you pay your state taxes and not the dealer's state tax. You also pay all of the state sales tax up front when you register your car. This sales tax is based on the lease amount, not the price of the car. If you buy in your own state, the state tax is built into the payments and is also calculated into the lease percentage rate.

Also, if you buy stateside, be sure the dealership gives you all the necessary paperwork to register your car. Check with your local DMV for details.

6. Stick to what you believe in. If you're not getting the deal you want, thank them and move on to another dealer that will listen to you. Most people cave in and become too agreeable to everything the dealer is saying.

7. When it comes time to signing the deal, DO NOT put a down payment on it. If you do, then that money is gone for good in case of an accident. You can also lower your monthly payment by putting in a security deposit. (aka MSD - multiple security deposit) This might lower your money factor. With MSDs, you will get your money back at the end of lease term.

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I think that's all for now.

go4gr8

A lot of views but no one have replied. Just wondering if this information is helpful at all?

iko

Overall, a good synopsis.

Point #7 is one that people seem to constantly want to debate but don't really understand the nuances wrt loss of down payments or other cap cost reductions. MSD is a good way to go if you *really* want to lower your monthly payment without resulting in any risk. In fact, some people view the MSD as an "investment" because you will save money each month and still get the money back.

Another point to consider is high mileage. One of the biggest factors I hear from people as a reason to NOT lease is high mileage. In reality, it's often better if you're expecting high mileage to pay for the extra mileage up front in a lease and know exactly what your costs will be over the course of the lease. There is no risk involved with trying to unload a high mileage, used car onto a market that's saturated with low interest rates and other incentives for new car buyers.

go4gr8

According to the Infiniti website, the over-mileage costs will be waived if you get into another lease or buy the car you're driving. Makes sense and it's good business on Infiniti's part.

dzine07

Sounds good. Can you talk a bit more about multiple security deposit's and how they work? I have never been clear on how MSD can lower you monthly and how this in turn affects the money factor (MF).

The info sounds legit. I went through the leasing process and ended up putting money down. Many don't recommend that but I am much more comfortable knowing my monthly is exactly where i want to be. $380/mo (taxes included).. 15,000 miles/yr.. etc. etc.

To be frank, everyone carries out a lease deal differently. When i went to the dealer i told the man who had sold two FX's and a G35x to family and friends of mine. I told him i wanted a G37S for $350/mo (i low balled him a ton -almost insulted him)... he said let me get back to you... a week later he called and started negotiating via e-mail with me. He said he could do 420 then 400 etc.. until i got my way. we met half way.
I never negotiated the selling price as i am not planning on keeping the G passed 24 months. Right now, i feel like i made the correct decision by me. everyone is differnt and i feel i am way better financially than i would be if i leased at 540/mo -no money down taxes not included.

Thanks for the post!

My selling price was $40k...The dealer worked the same numbers they put into the 2008 G35 sedans. The MF was indentical and the intrest rate was 1.9%.

Two weeks later my neighbor bought a QX from them and said they were recommended by me. the salesman called to say thanks. When i return my G i know i'll be back for the next best thing from the infiniti line-up and i know they'll be there to hook it up. that's really why i wanted to lease. a new car every two years. sure when you break the numbers down i loose a little but reliving the feeling you get when you drive your brand new G off the lot for the first time every 24 months is definitely worth it to me.

and thats the truth.

good luck guys.

-Alex

iko

I think they only waive up to $500 in mileage, damages, etc.

iko

There should be absolutely no reason why anyone carries out a lease differently except lack of experience in the process. The only things that might factor into the equation should be whether you want to pay all the fees/taxes out of pocket or do you want to roll it into the lease. Otherwise, everything else is very straight forward. The more you lease the more you'll realize this fact. An honest and trustworthy dealership will tell you the same thing.

Selling price vs. monthly payment cost: Never negotiate on payments.
There should be no negotiation about monthly payments for leasing. The same holds true for buying. You negotiate on price. When you negotiate on payment you are falling prey to their tactics. Money factor and residuals should be straight forward unless the dealership is playing with the numbers. In other words, when leasing (or buying for that matter) ALWAYS negotiate the selling price of the car without revealing how you will pay. Once you've settled on the price you can then plug it into a calculator and figure out your monthly payment. A reputable dealer will offer you the best rates and terms to win your repeat business. If you're unsure of this, gather the money factor and residual amounts from the internet and bring a leasing calculator with you. I brought my laptop right into the dealership this last time around. If your numbers and the dealers numbers aren't aligning then something is amiss. Perhaps you're not computing the tax correctly, perhaps you didn't compute the bank fees correctly, etc. My last car, my calculations were almost exact to the penny of what the dealer quoted. Actually, the dealer came in less because I was computing the tax incorrectly for my state. (it was a certain amount at 3% then a slight percent over based on which county/municipality you live in)

Multiple Security Deposits: Good for some, others don't bother.
MSDs are a way of paying extra deposit(s) to the lender that they will return to you at the end of a lease. Each MSD lowers the money factor by a particular amount. Leasing companies that allow MSDs vary in the number of payments and the amount it lowers your money factor. I *think* that Infiniti Financial Services allow a total of 7 MSDs and each one lowers your MF by .0001. You'll need to round up the regular monthly payment to the closest 50 to determine your deposit amount. Because MSDs are not putting money down to lower the total cap cost, if you get in an accident or it's stolen you still get your deposits back.

Down payments: Don't do it. Period.
Down payments don't lower your total costs. It merely reduces the amount of each monthly payment. Put your "down payment" into a high interest bearing savings account and earn money on it. Then take the amount you want to reduce your monthly payment out of the account each month and apply it with your lease payment. In effect you are "lowering" your monthly payment, still dealing with the same amount out of pocket throughout the total duration of the lease and most importantly there is no risk associated with the loss of the down payment if your car is totaled, stolen, etc.

go4gr8

There's one thing we haven't touched on yet, and that's the buyout price. I was wondering if the residual is the same as the buyout price? But then, the residual is based on the MSRP and not the negotiate price.

So where does the buyout price come from in case I want to purchase my lease at the end of the term?

iko

Personally, I would never buy out a car at the end of the lease. As a result I have paid no attention to how the cost is derived.

go4gr8

Is this topic sticky-worthy?

Dave ISM

You had me up until here. I am a dealer and I constantly hear people looking for $2,000 or more back from invoice which just simply doesn't exist, unless there is bonus factory cash available (at the time I'm typing this, there isn't). Knowing invoice is great and we might be flexible to a certain degree, however keep in mind that even buying out of state won't change prices; just taxes.

go4gr8

There is a difference between getting a good deal and being unreasonable. If someone thinks they can go that far, they might need a reality check. That's holdback land which not many dealers - if any - would be willing to venture on.

gotb00st

nicely done. I am still debating between a g37/g35/is350/c350. I am leaning towards the g37 because it is so cheap to lease one.

go4gr8

Ok..I found out that the residual amount is also the buyout amount, or purchase price at the end of the lease.

It just makes more sense to lease the same car again or lease a new car at the end of term, especially for 24 months.

For my sake, let's hope some great models come out in two years time!

Dave ISM

Just wanted to comment on this...

Most banks hate to lease pre-owned cars, which is what this would be at the end of the term. The rates on them anyway are horrible and it's rough to calculate residual at the end, making pre-owned vehicle leases hard and most cases, not a good deal.