pfizzle

iTrader: (2)

I dropped 3,000 down, plus start up cost for a 2008 G37S Coupe MT. The car has navi, illuminated door sill, basically 43,000 msrp. BTw 15k miles a year

The monthly payments on the car is 443.00/month.

Is that good deal?

PearlG37

Absolutely! You can do the math yourself if you want. You need to ask them for the money factor and the residual value, and then it's a pretty simple calculation. You'll find that is a pretty sweet monthly payment. Oh, what is the time period?

BTW, I'm very jealous, mine was basically $43K too, with a similar down payment, and I had to negotiate for a while to get to $517/month (DEC-07) on a 15k/yr 39month lease.

IMO, anything under $500/month is a good deal.

With the economy in the toilet, your in a great position to get an awesome deal. Jump on it!

twodomes

pearl, determining whether a lease is a good deal by the monthly payment is useless... i can lease you a g for $0/month if you'd like. Oh, by the way, the down payment I ask for is $43,000. BUT, your monthly payment is $0. See what I mean? Most experts advise AGAINST putting any payment down on a lease for several reasons that a little googling can quickly identify.

pfizlle: To determine if a lease is a good deal, you need the msrp, selling price, term, money factor and residual value, as Pearl stated.

What are "start up" costs and how much were they? this sounds like dealer profit padding to me.

pfizzle

iTrader: (2)

Start up costs were for the plates taxes and other fees, it came out to about 1400.00 he said his commission is about 350.00

pfizzle

iTrader: (2)

he also said I can buy the car for 38,000 if I wanted it financed. It was the last 08 g37s on the lot.

PearlG37

First, I obviously understand how a downpayment works. My point was based on the amount of the downpayment he was suggesting as well as the selling price, and would be considered in the lease calculation.

If you can afford the monthly payment, without a downpayment, then that is obvioulsy the way to go. In my case, I wanted a payment ~$500 and my POS trade and a couple hundred bucks got me there. I think we would all agree that putting down any more than maybe ~$3k isn't worth it if your going to lease.

So, pfizlle, your getting a good deal on the lease. Sounds like you can get a good deal buying the car too. If you can afford a higher monthly payment, buy.

twodomes

I hear what you're saying now Pearl, but I don't think he got a great deal, and he didn't say in his original post what the selling price was, so from that info alone it was pretty tough to declare whether he got a good deal or not.

Start up costs were $1400, which makes the actual total down $4400, which is more than the $3K you said you'd consider reasonable on a lease... although I don't consider putting anything down reasonable.

Assuming that $443 includes tax, then he is paying over $21.2K to lease the car for 39 months (assuming that was the term of the lease). A check of this forum shows several others who got deals approx. $1000 cheaper.

The fact that the sales guy tacked on a $350 markup on inception fees was not a good sign...

PearlG37

He did state the MSRP @~$43k. I'm going off that price.

Okay, I guess I missed that the $3k wasn't your total down payment. So I would agree if your putting $4400 down, that is too much. If you can afford a higher payment, save your cash, put less money down.

If you really want to know if you got a good deal, then let's define what makes a great deal, because I don't think either of us really have. Is it the residual value, the money factor, the negotiated price? I would say it's a combination of all three. So ask the dealer what numbers they are using.

If there are folks on this forum that have lower monthly payments with that approx. cap cost, then I would say they got great deals too....

If you still disagree, that's cool, then let the guy know what you think would be a good deal.

NeverBoneStock

iTrader: (25)

Not really. Never put that much money down on a lease ..

twodomes

Going off the MSRP to estimate the cap cost? Again, that makes no sense. The MSRP is $43K but that gives zero info about the actual selling price, so there's nothing to go off of, unless you mean that you are estimating what you think or know the cap cost on an 08 g37s with that msrp should be. do you?

If you have the money to put down to "lower your monthly payment," then you should NOT put that money down. Rather, you should put it in an interest bearing account and draw from it every month to make the higher monthly payment, assuming you can earn an equal or better interest rate than the rate on your loan. I believe the MF on an 08 G37 gives an APR of around 4.5% which could be matched.

I know that most of what you put down was in the form of your old car, and that's a slightly different situation then the one here. By the way, I would never trade in my car to a dealer as on average you will get significantly more from selling to private buyer.

It's also not a good idea to put any money down for 2 more reasons. One, if you drive off the car off the lot and total it, NONE of the money you put down will come back to you. Not a penny. Two, if you are expensing the car for business purposes, as I do, the initial cap reduction does not qualify as an expensable item, which to some extent defeats one of the significant tax advantages to leasing vs buying.

Yes, the reason I said we needed to know the MSRP, selling price, MF, term, and residuals is because that is what one needs to have to be able to define a "good" deal. If we really want to get into it, we would also need to know the dealer holdback for that car, what incentives are being offered, and the invoice price.

I would say they got a better deal than this one.

I did say what would be a good deal...approximately $1K less that what he is paying over the term of the lease.