Lease ending, residual is high--any room for negotiation?
10-30-2014, 07:48 PM
#1
Registered User
Thread Starter
Lease ending, residual is high--any room for negotiation?
I leased a 2013 G37x (sedan with nav, Bose stereo) in May 2013 at a very good monthly rate ($299 + tax)--and then the MSRP for the G37 cars was cut by several thousand dollars. My lease is ending in May 2015. I like the car and I might want to buy it, but the residual was high to begin with, and it's now much more outrageous because of the price cut for identical vehicles. Dealers are selling used cars just like mine now for much less than the lease buyout price I'd have to pay in May.
So how much are dealers (or Infiniti Financial) willing to negotiate on the buyout price at the end of a lease?
So how much are dealers (or Infiniti Financial) willing to negotiate on the buyout price at the end of a lease?
10-31-2014, 08:28 AM
#2
Registered Member
10-31-2014, 09:51 AM
#3
Registered Member
iTrader: (1)
I leased a 2013 G37x (sedan with nav, Bose stereo) in May 2013 at a very good monthly rate ($299 + tax)--and then the MSRP for the G37 cars was cut by several thousand dollars. My lease is ending in May 2015. I like the car and I might want to buy it, but the residual was high to begin with, and it's now much more outrageous because of the price cut for identical vehicles. Dealers are selling used cars just like mine now for much less than the lease buyout price I'd have to pay in May.
So how much are dealers (or Infiniti Financial) willing to negotiate on the buyout price at the end of a lease?
So how much are dealers (or Infiniti Financial) willing to negotiate on the buyout price at the end of a lease?
10-31-2014, 11:35 AM
#4
Registered User
You will not be able to negotiate the residual because they are set. Your best bet would be to return your vehicle and buy another used one if that is what you want. You could buy it out, but most likely your residual is much higher than what the vehicle is worth, so it doesn't make any sense.
10-31-2014, 12:10 PM
#5
Registered Member
iTrader: (13)
They wont negotiate, the residual is inflated so the car leases at a good price, Run like wild fire , My 2011 X Coupe with 31k had a residual of 30k, I ran away from it and watched in sell in NY for 19k :/. The residual is about 10k over what the car is worth.
11-13-2014, 04:34 PM
#6
Registered User
If they won't negotiate (and it sounds like they don't) then walk away and buy a used one for several thousand less. Let them send it to auction and lose money. If they won't negotiate, that's their loss more than yours.
11-13-2014, 04:38 PM
#7
IFS owns the car, they wont negotiate. Turn it into the dealer and buy one of there used one. It will be a couple months before your car goes to the Nissan/Infiniti Auction and sells for less than the residual. If your lucky, the same dealer will buy it and sell it for less but thats like wining the lottery.
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11-14-2014, 10:51 AM
#8
Registered User
IFS owns the car, they wont negotiate. Turn it into the dealer and buy one of there used one. It will be a couple months before your car goes to the Nissan/Infiniti Auction and sells for less than the residual. If your lucky, the same dealer will buy it and sell it for less but thats like wining the lottery.
Knowing banks, principles are thrown out the window...it's all about money. I know the principle behind not-negotiating, but if it doesn't make good business sense, I can't understand what's going on here.
My numbers may be made up...what's typical on a lease? $299/mo for 39 months? At which point, you've paid only $11,661...on a $40K vehicle.
3 year old G37 with 35K miles are selling for low to mid $20's. There's a discrepancy there...how do they deal with it?
I personally bought my 2011 G37x for $22,900 with 27,880 miles. That was a discounted price from the dealer as they said they had them on the lot too long. It was picked up at auction like all the other leases. What do you suppose the dealer paid for it? And what would the residual have been at the time of turn-in?
11-14-2014, 11:23 AM
#9
Not sure this is correct but the longer a new car sits on the lot are they not paying interest on that until the car is sold? They move a car and hope to make more profit on cars that arent going to sit there that long or people that are fools and pay sticker, add ons etc... Also not sure about the rest of the numbers but anytime a lease is made up they charge a admin fee which is pure profit, anytime a person puts money down that goes towards profit.
11-14-2014, 11:25 AM
#10
This doesn't make any good business sense. If the residual is $30K, but the car sells at auction for like $21K...that's a $9K loss.
Knowing banks, principles are thrown out the window...it's all about money. I know the principle behind not-negotiating, but if it doesn't make good business sense, I can't understand what's going on here.
My numbers may be made up...what's typical on a lease? $299/mo for 39 months? At which point, you've paid only $11,661...on a $40K vehicle.
3 year old G37 with 35K miles are selling for low to mid $20's. There's a discrepancy there...how do they deal with it?
I personally bought my 2011 G37x for $22,900 with 27,880 miles. That was a discounted price from the dealer as they said they had them on the lot too long. It was picked up at auction like all the other leases. What do you suppose the dealer paid for it? And what would the residual have been at the time of turn-in?
Knowing banks, principles are thrown out the window...it's all about money. I know the principle behind not-negotiating, but if it doesn't make good business sense, I can't understand what's going on here.
My numbers may be made up...what's typical on a lease? $299/mo for 39 months? At which point, you've paid only $11,661...on a $40K vehicle.
3 year old G37 with 35K miles are selling for low to mid $20's. There's a discrepancy there...how do they deal with it?
I personally bought my 2011 G37x for $22,900 with 27,880 miles. That was a discounted price from the dealer as they said they had them on the lot too long. It was picked up at auction like all the other leases. What do you suppose the dealer paid for it? And what would the residual have been at the time of turn-in?
Might not be the case with every other OEM but it is with Infiniti on the G sedans and coupes.
12-10-2014, 07:52 PM
#11
Registered User
Might not make sense but thats the reality. The OEMs own the banks that the lease thru. They make the rules. We dont buy the cars for less than the residual. When that residual is higher than what the vehicle is worth, they go to auction. Why pay $4000 more for the car to get it from Infiniti, when we can get it thru there auction 2 months later for $5000 less?
Might not be the case with every other OEM but it is with Infiniti on the G sedans and coupes.
Might not be the case with every other OEM but it is with Infiniti on the G sedans and coupes.
Anyway - it's a dilemma....
12-31-2014, 12:02 PM
#12
I leased a 2013 G37x (sedan with nav, Bose stereo) in May 2013 at a very good monthly rate ($299 + tax)--and then the MSRP for the G37 cars was cut by several thousand dollars. My lease is ending in May 2015. I like the car and I might want to buy it, but the residual was high to begin with, and it's now much more outrageous because of the price cut for identical vehicles. Dealers are selling used cars just like mine now for much less than the lease buyout price I'd have to pay in May.
So how much are dealers (or Infiniti Financial) willing to negotiate on the buyout price at the end of a lease?
So how much are dealers (or Infiniti Financial) willing to negotiate on the buyout price at the end of a lease?
If you got a good deal on the original deal, then the residual doesn't matter.
You paid $299 a month, but if you bought it, your payments would have been $399.
Buying out means you need to catch up on the value.
01-14-2015, 12:40 AM
#15
Registered Member
I asked this question on the front end of my lease and was told the same thing. IFS has insurance that covers the buyout price so they don't need to (will not) negotiate any at the end of the lease. I'm under on mileage and baby the car - need to start taking some Florida vacations with it ASAP!