Hello all. I am an active poster over on G35driver...posted a couple times here.

Due to what seems like some excellent lease deals on the 2010 sedan, I am considering a trip to my dealer to feel them out on what they would be willing to offer

Below is what I am thinking...anyone think this is totally out of the question?

2010 G37 Journey with Premium & Sport packages
MSRP: $39,565
Cap Cost: $37,331 (taken from Edmunds TMV - represents $2,234 discount)
Residual: 60% (based on 36 months, 12,000 miles)
MF: .00107 (based on what I found on internet as lowest possible)

PMT: $442.90 + taxes

Now, I would be trading a 2007 G35 with KBB trade-in of $21,500. I have about $3,500 (assuming they give me full trade in value) in equity that I would just role into the lease as cap cost reduction. Is the Infiniti Loyalty of $1,000 still available? Might just pocket this...

PMT w/ $3,500 equity rolled in: $345.68 + tax

I think this still gives them SOME profit...thoughts?

 

I'm not experienced with leasing, but your Edmunds TMV cost is way too high. If you want to know what kind of prices these cars can be sold at, check out Zag.com. (Also see my post from yesterday in the Buying & Leasing section)

 

Well, I dont think it would be as useful as this is a lease. Edmunds is telling me invoice on this car would be $36,378, so with that cap cost above it would be about $1,000 over. Maybe I could get it down to $500 over invoice, but with no bump in the MF, not so sure I could...unless someone else thinks otherwise. I am going to visit tonight...

 

I understand that the lease terms are more confusing, and I'm sure the dealers love to exploit that fact. But what I can tell you is that the car can be purchased/bought for $1700 under invoice. Good luck converting that stat into lease terms

 

Well, if they are willing to sell it at that, my cap cost should be pretty close to that as well! A sell is a sell no matter if the buyer leases or buys from the dealer.

Thanks for the info!!

 

actually for the G, most dealers don't offer it under invoice due to the lease terms being 60% residual... they might if they need to clear vehicles... but not right now.

so the TMV isn't exactly off in terms of what you'd expect to lease a vehicle for...

sure you can buy the car under invoice. but a 60% residual... you're paying whatever the lease terms tell you are going to... or else they'll just lease it to the next guy.

At the end of the day, just make sure the lease terms make sense, and make sure you break it down to compare to total price of the car. in a couple months, leasing and buying in terms of interest paid should almost be the same...

the KBB trade in is almost accurate... but don't be surprised if it's off like 1200... I would expect you to pay almost $400 a month after trade in... and you'll have to ask but I don't think the loyalty cash is active right now... they didn't carry it over since the incentives ending june 30th.

 

Went to the dealer last night. Let's just say they must have had a great June (based on the offer they gave me). After seeing/driving what they had in inventory we decided they would have to dealer trade for the car I wanted.

Here was their offer:
Cap Cost was MSRP - my 1,000 loyalty discount (but 1,000 added for shipping of the trade)
MF: .0016X (something like this...)
Residual 58%
39 months

The payment was around $562 a month (so it must have included another $1,000 in drive off fees).

In conjunction they offered me $18,000 for my trade. Look at my OP to see what the car is worth.

I told the salesman what I wanted and he said they couldnt budge from the above. I said thanks but I am not wasting anymore time.

How ABSURD!!! This guy must have thought I was a complete idiot. I told him I knew for a fact these cars are selling at or under invoice AND my trade booked for way more than $18,000 (I pointed out a CPO on their lot that was listed at $25,000 nearly identical to mine being certified as well and same condition). He was silent and didnt know what to say. I was the only one there and they definitely did not want to sell a car.

 

If they are selling a CPO for 25k they aren't going to give you 25K. CPO adds about 2k to the price of a car which means they are "Asking" 23k" for your car and odds are will sell it for 21-22k and that means your car is probably worth 18-19k to them max. They make money on used car sales.

But I've never heard of anybody paying $1000 to get a car delivered. Go buy it from the place they are getting it from.

All you have to do is email the local dealer with a reasonable offer (you can figure out the lease payment using calculators) and see who wants to get rid of a car.

 

I realize they make money on used car sales. I was using one they have on the lot merely as a point of reference. It does not cost them $2,000 to certify a car. When I bought mine CPO the dealer charged me $750 to certify it. However, I dont think it cost them even this for the certification.

They are asking $25,000 for it (lowered from $26,000). Even if they did have to put $1,000 into mine to get it "lot ready" (which again, they would not) giving me KBB of $21,750 would still allow them to make $2,250 or 10% if they sold it for $25,000. This would be the best scenario so I would expect to get about $20,500 or $21,000 for my trade (still below book).

Look around and tell me where you can pick up a 2007 G35 with less than 40,000 miles CPO clean carfax, no history, sport and premium, with new tires for $21-$22k as you say they would sell it for.

As for the delivery fee, if the car was rare then I could maybe see paying a fee of around $500 (more what the actual cost would be to transport). However, since this certain car was not rare, it is absurd to have to pay this.

Unfortunately, there is only 1 dealer in my state, therefore I will go elsewhere.

 

Ok, the first thing you need to do is to get the current lease numbers. Your money factor is way high compared to June so you may want to see what financing company they are using. I'm guessing Infiniti Fin. Svcs. if you are getting the $1000 but I would check. Also, poor credit could result in a higher MF but it's worth looking into.

Maybe they went up in July but I woud check.

Now, get the selling price of the car done first. That's it. Not with cap cost reductions, etc. Just get the sale price of the car figured out.

You should be around invoice. Some people will brag about a lot lower, some will add things in that 'equate' to a lesser price. Don't listen to the one or two outliers. Look at what most folks are getting. (Example: I got $300 under invoice but I also got the dealer to eat my last 2 lease payments=$1000. I could just say that I got $1300 under invoice since the net profit to the dealer is the same but I don't want to confuse people into thinking that everyone can get $1300 off invoice). Some people have done better, some worse. It depends on the specific dealership, time of month, competition, etc. Some will bargain more than others.

The lease numbers and a calculator you can get from someplace like ridewithg.com can tell you exactly what to expect for your payment. If using IFS the Money Factor, residuals and terms are identical. All you need is the sale price.

Once you have the sale price negotiatied YOU decide how to apply the $1000 loyalty credit (although they may require cap cost reduction - basically same as getting another $1000 off the price for a lease) but you want that to be separate so that YOU can calculate that. A lot of times the dealers will hide the credit in some numbers that can make it confusing and act like they are giving you a lower sale price when that is not the case.

After you get all of that figured out, THEN you can discuss your trade. Make that a completely separate transaction. If you get money out of the sale then YOU can decide if you want to apply it to the cap cost reduction. Most will say that you should NOT do this b/c if you get in a wreck you are out that money. Some folks might feel better with the lower payment. Either way, with a good calculator (see above) you can decide what to apply and where.

Hope that helps!

Jay

 

Yes, I couldnt find the July MF online, so I was basing off June MF. It was funny though, when he came back to me with that MF above, I said I wanted to write down the MF I WANT and he looked at me puzzled and said, "that I cant change". I think he was full of BS. I dont think this month's rate will be that much of an increase. He didnt check credit yet, but I told him to assume it was perfect (because it is).

We first worked on selling price of the car. This is when he came back with the above and didnt budge off MSRP. He said that was as good as it gets. He wouldnt even go back and 'talk with the manager'.

I have bought/leased cars and helped many people buy/lease before and have NEVER run into a situation where the salesman comes back with an offer of MSRP (with shipping) and claimed that was the bottom line. Oh well, their loss. If I end up doing anything, I am going to go to the dealer that has the car I want.

I just thought some of you guys would get a kick out of this story. It has made me just laugh several times.

 

Yea that is very rare the salesman was stuck at MSRP. There are 3 local dealers in my area, but I've twice gone out of state to get a better deal. It all depends on the market and competition. If the dealer is playing hardball, f--k em. Make the drive and save yourself the $1200 or so to get the car you want. Otherwise you will regret it and it will bug you.

good luck with your search.

 

Don't get discourage, when I was hunting down deals for my 2010 G37 Journey/Sports/Prem/Nav dealers are willing to work with $1700 under invoice (includes $2000 worth of incentives). From what I know, the July and June lease rates are pretty similar and since 2011 models are coming you should be able to get great deals.

It might be an exception in my case since I leased a demo car but you should still be able to get similar pricing. Some members in the forum were telling me i could've done better with this deal.

2010 G37 Journey with Sports/Prem/Nav/Splash guard - They told me the owner drove this car for "2 months" the car has about 5100 miles leased as a brand new car

MSRP - 41,585
Selling price - 36,021.69
Total out-of-pocket - $3000 (1804.6 drive off fees and 1195.4 cap reduction)
Mfg incentive - $1000 (add towards cap reduction)
Ajusted Cap cost - $33826.29
36 months / 18k per year = 402.81 per month including CA 9% Tax

 

Yep - if you can get the car's SALE PRICE for invoice that would be a good start. The $1000 Infiniti loyalty money would then be used as a cap contribution to reduce the ADJUSTED Cap Cost.

The money factors in July are super low and the residuals are close, if not identical, to June's numbers.

If you can get the car for invoice with the low money factors I'm seeing out there you should be able to get a great deal! If you need some additional help, let us know what your taxes are in your state and if you pay them monthly or up front.

The trade should be done as a completely separate transaction. With the numbers being so low, if you can snag $3000 from the trade I would just use it for the upfront stuff (title, tags, etc.) and pocket the rest. That's $3k in equity is your money so why put it back into a lease if you don't need to?

I would bet that there are plenty of places your could get invoice, or even a bit less, and a decent trade. Keep looking.

I would check out Zag.com like suggested above but, unless there are guaranteed deals for your car that are negotiated through there I wouldn't necessarily expect $1700 off invoice plus any incentives. Is it possible - yes. Is it likely - hmmm, that seems like an outlier to me.

I got a 2010xS with tech, prem, nav, sport, wood for 39 months for about $418/mo (without taxes) IIRC. This was $300 under invoice and then the $1000 loyalty applied as cap cost reduction. I also netted about $1000 from the trade of my other car but that is not involved in this scenario at all. I got this a few weeks ago (end of June) and the money factors are better right now so if you are looking for a less expensive car that should help with the numbers a bit. I saw the MF you were describing and if I factor that into my scenario I think I would have saved about $20/mo buying in July at $300 under invoice plus the $1000 loyalty cap cost reduction.

Long story short - if you are looking to lease - this is a really, really good time. Get a good price on the sale price and it's hard to beat these numbers!

Jay

 

If you want to lease a car never tell the dealer you want to lease. You tell them you want to buy the car. After you negotiate a price to buy the car, then tell them you want to lease.