bumerang80

Hi guys,

I'm trying to join G community, need some help, so here is the quote from my local dealer (NorCal) for :

2013 g37s MT6 sedan

$3500 total out of pocket
24 mo lease @ $299 plus tax
10K per year
MSRP $43,425
Cap cost $38,495

Residual 71% of MSRP = $30,831.75
Money Factor 0.00099

How I'm doing? I have feeling that this is no the best numbers I can get, so my questions how lower I can go? Please advise.

Thanks in advance.

socketz67

I just went through this myself, so I will share what I came up with for the same car.

TruCar is saying that with an MSRP of $43,600 (I added the spoiler and blacked out grill option only), the sales price is $37,600. This is within $1,000 of what they are quoting you, so I think your Net Cap Cost is fair, but there is still most likely a little wiggle room.

Note here that Infiniti's fiscal year ends in March and the dealerships' initial allocation of Q50s will be based on their sales of the G37s (at least that is what they told me here in Socal), so they are being aggressive (i.e. a new one is only 5-6k more than one 3 years old, so now is a good time to buy new).

I then took a $43,600(MSRP) x .62 Depreciation Rate (value I found here, reputable lease site) and came up with $27,032 as the Residual. With your .71 depreciation rate, that goes up to almost $31,000. Since you have a quote for 2 years (vs. the 36 month value I used), that's the difference.

So back to my example (3 year lease), the difference I came up with was $10,968, or when divided by 36 months, $304.67 monthly - or roughly (38K Net Cap Cost – 27K Residual)/36 month Term

Then I needed to factor in a .00144 Base Rate/Money Factor (i.e. .00144 x 2400 = 3.46%, value came from the same site mentioned above) to come up with a Finance Fee, which was calculated using: ( Net Cap Cost + Residual ) × Money Factor

Or (38,000 + 27,032) x .00144 = $93.65

So at this point I was looking at 304.67 + 93.65 = $398.32 and I had not even included state sales tax (~%10 in CA) and other “Fees” the stealership inserts (they are the subject of more research, maybe you can share some insight on these)

I also assumed no money down as I was told by several of my "pro-lease" friends that one should never put money down on a lease, but it does seem that by doing so, you were able to bring the payments downs by at least $50 a month (combined with a lower Residual because of 2 yrs vs 3).

Sorry if this seems long winded, but it’s an intriguing subject because I have so many friends that lease I wanted to figure out the trade-offs as I have never leased myself.


Mike

esquesk

iTrader: (2)

Instead of putting money down, put down some MSDs (Multiple Security Deposit). It will lower your MF further and is a much higher return on your investment than a downpayment.

From what I understand, Infiniti does have this program although it is not something dealers advertise (because it gets too complicated for them).

bumerang80

Mike, esquesk,

Big thanks on your inputs, now I'm proud owner of g37s 6mt, so here is the deal details what I was able to work out:

$2000 out fo pocket
24 mo lease @ $299 plus tax
10K per year

Maybe not the best deal you can get, but I was comfotable with it and signed the deal.

Thanks.

socketz67

Congrats!

What kind of Cap Cost, Money Factor and Residual did you end up with? Sounds like you got an excellent deal.

socketz67

Who did you talk to about MSDs? I mentioned these at the dealer near me and the sales people started getting nervous and said the deals were already too good already and MSDs were off the table.

I know with BMW Financial Services you can put up to 7 MSD down (each one roughly $500), each one discounting the money factor by 0.00007, for a max reduction of 0.00049. In other words, if the standard money factor is 0.00195, then with 7 MSDs the net Money Factor becomes 0.00153.

BMWFS then holds on to your money and refunds it back to you at the end of the lease. The amount your monthly payment gets reduced as a result of the lower Money Factor and gives you something like a net 10% tax free return on your ~$3500 investment.

bumerang80

Thanks, sorry for the late reply, was busy a bit. To be honest, I have no idea what is the numbers I ended up with as I went there with my kids and was focused on not to let them destroy the showroom, they almost pulled side mirror off the demo JX on the floor. Anyway, if you can tell me where to look, I will check and post numbers here.

Thanks.