Paul

So, I have been looking at left over 2004 G35x awd sedans for the past month or so. Talked with a few dealers and got the price to a really good price. My question is, should I get rid of my 02 CL to get the G35x or do I just keep the CL. I don't really like how the G35x looks like, but I test drove the car and it drives sooooo much better than my car.... sorry to say. Even though I still owe some money for my CL, if I were to trade it in, they were willing to give enough money to pay off my loan and for me to pocket about 3k after a 2500 down payment on the lease of the G35x. The monthly payment on the lease would be less than my finance payment and I still have about 2 yr left on my finance payments. The G35x is with premium package, sunroof, bose, wood trim, XM radio, and they even agree to throw in the spoiler. I think the lease is a really great deal since its amost 8k off msrp.

Pro about getting the g35x Cons about getting g35x
-Less monthly payment -Dont really like the looks
-Pocket 3k right away -Car is much noiser inside than CL
-Drives better -Feels much cheaper inside and smaller
Pro about keeping CL Cons about keeping CL
-I love the look -Out of warranty soon, its 4 yrs/50kmiles??
-Probably drive safer since I wont -Need new tires, brakes, maintence
-drive as fast as if I had the G35x -Still paying for a car that im bored of
-May never have the chance to get aG35x
for that cheap

WHat do you guys think, or have anything else to add to the lists. At the end of 3 years, I am 100% sure I would have gotten rid of the CL by then. So either way I'll be up for a new car in 3 yrs.

chef chris

If it's only a 3 year lease and the bottom line going in is $8K off MSRP, than it's not too bad of a deal. Make sure you ask what the actual interest rate is though...don't let them blow smoke on that(they may call it a 'money factor', but either way, get the number).

I normally would not recommend anyone lease a leftover vehicle...as you are only locking yourself in to a depreciating asset, but the discount is fairly substancial...as long as you keep the car the whole 3 years. If you think you there is even the slightest chance you will trade out before you're atleast half-way through...don't do it. As I'm sure the $8K is not a total knock-off of the MSRP, etc.

chef chris

Actually...If you can do $8K off, you may want to check on the payments for 60/66/72 months because it'll probably be close to the lease payment and you wouldn't have to ahve the higher insurance associated with lease coverage(probably get a lower rate too).

Paul

The actual interest rate? I dont know too much about this stuff. All I know is they gave me a hard # on what my total out(down and fees and 1st month payment) is to take the car and they told me my monthly payment including tax.... Where does interest goes into play in this, do they add interest on top of my monthly payment including tax? And yes, its a 36 month lease so I wont get rid of it before 36 months.

Stevens24

Interest on most leases is in the form of a money factor And is already in your payment. If you only want the car for three years. do the lease.

chef chris

A lease is basically just buying a 'portion' of the car with the option to buy the remaining portion at a pre-determined amount.

So, normal financing rules still apply. You should definitely ask about the rate. If for no other reason than maybe if you ask...they'll think you know more about leasing & give you a decent rate.

Paul

the girl was explaining to me that the way they usually structure a lease is take the MSRP, multiply it by .57 which is what the car is worth in 3 yrs, 57% of original price(which I dont agree but ok). Then divide that by 36 months or 42 months, however many u r leasing it for. Thats the base price. THen you add interest and tax and stuff on it... When she did that, the base price alone was wayyyyy more than the price she offered me..... Does that mean she didnt even add interest or tax on top for my monthly payment? I dont think so, i dont know what to think, all i know is the # is cheaper than the base price.

chef chris

Well...she started out OK...

You can't really divide the 57% of MSRP by the 36 month term though...since interest is in addition to that amount & use tax, any state rental fees, etc.

Say the car is $34K. She takes $19,380(57% residual) and subtracts that from the $34K MSRP, leaves her $14,620. Now, you would then(or they would) determine a money factor(interest rate) and amortize the $14K. You can do that at bankrate.com or use MS Works to calculate your payments based on interest rate and actual numbers in your case.

Based on an interest rate of 4%, $34K purchase price, term of 36 months, your payment would be $431(assuming you put down tax/tags/title). They usually ask for first months rent & security deposit in addition to tax/tags...but if your credit is good, they can usually waive that requirement.

You know though, if they are really trying to let this thing go cheap...depending on what the bottom line price actually was...you could finance around $30K for 6 years at about $475/month(5%). Depending on what payment they gave you, I'd consider extended term financing. I only say this because you sound like you're getting a deal...normally, extended terms are a mistake unless you put big money down to offset depreciation.

chef chris

And 57% after 3 years for that model car is actually fairly high...as that model is pretty prevalent at Infiniti dealerships and used for fleet/loaner vehicles.