Has anyone leased their 350Z from Nissan? I own my own business and my CPA wants a lease due to IRS benefits of leasing. I ask this because I received a lease proposal and was utterly floored by the money factor. The money factor of 0.00405 relates to an interest rate of 9.7%. Not acceptable. This adds about $50 a month.

I have a PeopleFirst loan at the lowest rate but do not wish a loan. Has anyone leased from Nissan (or any other compay)? If so, what is the money factor (money factor times 2400 equals the interest rate).

My dealer, magnanimous to the end, stated that since I got the car for MSRP Nissan allows them to tweek the lease money factor. Gosh I love car dealers. 350Z is a hot car so no lease deals but this is like +$2500 over MSRP after I got MSRP!

 

I got a money factor of .0028 which is 6.72%, and a residual of 41%.

60month, $1000 down, 15k/year = 410 a month or so.

 

Up here north of the border, Nissan is quoting 9.2% on the leases right now. They were quoting 8.6% last month though. Not sure how this compares to the US though, might help ya though.

 

Thanks Ricky. Was that through Nissan?

What is the update on your 45mph school zone problem?

 

Yeah, I feel they did the same thing with my financing Bob. Looks like I will refi right away. Amazing the ways dealers will find to make money off you...

Kevin

Ps Sounds like the drive Saturday helped with the decision.

 

Kevin, thank you for allowing me to drive your beautiful 3 day old zainoed silverstone Z. Not sure I could have been so nice in the same situation. Ann loved it also. Anyhow I am now convinced that I made the correct decision with the Z. My test drive after I saw you convinced to me that the Z is the better car for thousands and thousands less. Stay in touch; you know where I live. Thank you again.

 

I'm planning on leasing but I keep wondering about one thing. What is the big deal of leaving a big downpayment? I keep reading it's stupid but doesn't it lower your monthly payments for the lease? That's what I'm looking for low monthly payments.

P.S. This is my FIRST POST, I feel like I'm a little part of a much bigger picture!

Zerostixxs

 

Essentially a deposit on a lease is a lease prepayment. There is a minor benefit but there is no reason for them to hold your money for up to 5 years. Why let it happen if you are going to pay the same TOTAL when the lease term is over?. The deperciation amount will not change, the taxes won't change since the total amount stays the same. There is a slight reduction in interest paid but not really a significant amount as in a purchase.

Generally, if you get a lease proposal for no down and compare it to one with $3600 down over 36 months, the lease payment will go down by appproximately $100 a month:

36 payments x $100 = the original $3600.

This is the major difference in a lease and a purchase. In a lease you are renting the car by paying off the depreciation for the lease company and in purchasing you are buying an asset (albeit less valuable with time).

 

There is no need to put in the extra money to reduce the monthly payment when it will be lost if the car gets totaled.

Use inexpensive gap insurance to pay the difference between the depreciated value of the car that the insurance company will pay and the difference you owe to the bank.

The Z has a value of 66, 56, 48 and 41 percent after 2, 3, 4, and 5 years. With the loan interest weighted to the front end, you will be upside down in your payments for a while and if something happens, you will owe thousands, without the gap insurance, to get out of the leasel.

 

Good point geezer (wow that sounds impolite). All leases I have with my business include $1 a month for totaling the car, BUT CHECK. It is important.

 

I just leased my Touring through the dealer (NNA) today. Residual was 58 and money factor .00295 (7.08%). Acquisition fee just went up to $495 today.

 

Also GAP insurance is automatically included (not listed as an extra charge)

 

What was the term of your lease? 36 months?

Money factor sounds a little high. I got a quote at .0027 and residual .525 for 36 months which allows 20,000 miles per year (rather than 12K or 15K per standard lease terms).

Hopefully, with the capital markets tanking further everyday, interest rates will dip a little in the coming weeks and save everybody still waiting some $$.

Rep15 is right, cap reductions are like admitting you were wrong to lease in the first place. There is also a use tax implication in CA to consider -- FTB sees cap reduction as prepaid purchase price and taxes it accordingly so you don't actually get credit for the full 100% of your "down". More to the point, why would anyone want equity in an asset that depreciates as rapidly as a car? Leverage is your friend (as long as you have gap insurance).

Just my $0.02.

SuperG

 

My lease was for 36 months. Usually the higher the residual the higher the money factor because you are "renting" less money. I was quoted a lower residual and money factor from a private lender but it would have increased my monthly payments more then I wanted to go. No matter what you pay either upfront or at the end (if you buy it).

 

I got in on the 8.6% rate here in Canada last month. The contract up here includes the gap insurance as well.

48 month lease, 51% residual.