Fellow So Cal folks, is this a good lease deal?
03-28-2004, 04:06 PM
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Fellow So Cal folks, is this a good lease deal?
Corona Nissan quoted me this lease deal:
Term: 48 Months
Cap Cost: MSRP of $30,450 on a 6spd Enthusiast with every option.
Miles Per Year: 12,000
Money Out of Pocket: ABSOLUTELY NOTHING!
Payment: $438/month including taxes
Residual: 49% equalling about $14,798
Money Factor: Was around 5-6% I belive.
Just wanted to get your opinions on this deal. It was the best I've found so far. Plus they were willing to work with my trade which has about $4K in negative equity which bumps the payment to about $518/month.
By getting a discount off of the MSRP and by increasing the residual value, I can decrease the payment by about $40/month.
Any thoughts or suggestions would help. I want a Z really bad.
Thanks,
Jay
Term: 48 Months
Cap Cost: MSRP of $30,450 on a 6spd Enthusiast with every option.
Miles Per Year: 12,000
Money Out of Pocket: ABSOLUTELY NOTHING!
Payment: $438/month including taxes
Residual: 49% equalling about $14,798
Money Factor: Was around 5-6% I belive.
Just wanted to get your opinions on this deal. It was the best I've found so far. Plus they were willing to work with my trade which has about $4K in negative equity which bumps the payment to about $518/month.
By getting a discount off of the MSRP and by increasing the residual value, I can decrease the payment by about $40/month.
Any thoughts or suggestions would help. I want a Z really bad.
Thanks,
Jay
03-28-2004, 06:44 PM
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Honestly, you can do better. I see a few things wrong with this deal:
1. Using the MSRP for cap cost. Lot of people don't know this, but when you lease a car you are entitled to deal on the cap cost of the car, since what happens is that the leasing company buys the car from the dealership and leases it to you. The lower you can bring down your cap cost, the lower your monthly payments are.
2. 48 month lease. It's generally a good rule of thumb to not lease a car for longer than the warranty period, because when the warranty runs out you are stuck with a car that may potentially cost you a lot of money should it require a major repair. The Z's warranty is 3 years, so in general you shouldn't be leasing for much longer than that (although a 39 month lease would probably be OK).
3. You should get a residual cost in terms of money, not percentage. 49% of MSRP for a 48 month lease seems about right, but I'm not sure.
4. Don't trade in your old car to lease a new one. Let's say the dealer is willing to give you $4000 in trade for your car, and you drive your brand new leased Z off the lot. A week later, you get in an accident and total the Z. Your insurance pays off the cost of the car, but guess what? The $4000 trade-in you got for your old car is gone - history, kaput. You don't get it back. Don't put money down or trade in a car to lease a new one. Instead, sell your old car to a third party and use the money to make up for the higher monthly payments.
5. You can get a better money factor if you look for it.
Here are a few resources I would suggest you look at before you lease.
http://www.leaseguide.com
Read everything on the above site. It contains very complete information on how a lease works and what you should do to get the best deal. Also, there's a free lease calculator you can download.
http://www.leasecompare.com
I leased my Z through this site. They are a lease broker and have some very competitive rates, and my money factor was only around 3%, with 15,000 miles/year. For a 36 month lease, I'm paying a little under $500/month.
1. Using the MSRP for cap cost. Lot of people don't know this, but when you lease a car you are entitled to deal on the cap cost of the car, since what happens is that the leasing company buys the car from the dealership and leases it to you. The lower you can bring down your cap cost, the lower your monthly payments are.
2. 48 month lease. It's generally a good rule of thumb to not lease a car for longer than the warranty period, because when the warranty runs out you are stuck with a car that may potentially cost you a lot of money should it require a major repair. The Z's warranty is 3 years, so in general you shouldn't be leasing for much longer than that (although a 39 month lease would probably be OK).
3. You should get a residual cost in terms of money, not percentage. 49% of MSRP for a 48 month lease seems about right, but I'm not sure.
4. Don't trade in your old car to lease a new one. Let's say the dealer is willing to give you $4000 in trade for your car, and you drive your brand new leased Z off the lot. A week later, you get in an accident and total the Z. Your insurance pays off the cost of the car, but guess what? The $4000 trade-in you got for your old car is gone - history, kaput. You don't get it back. Don't put money down or trade in a car to lease a new one. Instead, sell your old car to a third party and use the money to make up for the higher monthly payments.
5. You can get a better money factor if you look for it.
Here are a few resources I would suggest you look at before you lease.
http://www.leaseguide.com
Read everything on the above site. It contains very complete information on how a lease works and what you should do to get the best deal. Also, there's a free lease calculator you can download.
http://www.leasecompare.com
I leased my Z through this site. They are a lease broker and have some very competitive rates, and my money factor was only around 3%, with 15,000 miles/year. For a 36 month lease, I'm paying a little under $500/month.
Last edited by dchengmd; 03-28-2004 at 06:51 PM.
03-29-2004, 10:48 AM
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Originally posted by exa4driver
Thanks for the info! Definitely some good points!
Keep it coming y'all.
Thanks for the info! Definitely some good points!
Keep it coming y'all.
not sure which state you're from, but i sold my car to carmax.... most pleasurable experience.. got KBB for my car (most dealers give u below KBB).. www.carmax.com... i hate leases unless its 3 years and reallly low payments, i always prefer buying ... my 2 cents ...
edit: just realized you're from so cal.... duh
03-29-2004, 11:18 AM
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Originally posted by desiZ
not sure which state you're from, but i sold my car to carmax.... most pleasurable experience.. got KBB for my car (most dealers give u below KBB).. www.carmax.com... i hate leases unless its 3 years and reallly low payments, i always prefer buying ... my 2 cents ...
edit: just realized you're from so cal.... duh
not sure which state you're from, but i sold my car to carmax.... most pleasurable experience.. got KBB for my car (most dealers give u below KBB).. www.carmax.com... i hate leases unless its 3 years and reallly low payments, i always prefer buying ... my 2 cents ...
edit: just realized you're from so cal.... duh
Did you buy your Z from carmax too?
Thanks,
Jay
03-29-2004, 01:58 PM
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Originally posted by exa4driver
desiZ
Did you buy your Z from carmax too?
Thanks,
Jay
desiZ
Did you buy your Z from carmax too?
Thanks,
Jay
they buy your car separately .... not tied in with a new vehicle purchase ...
i ended up buying from san diego mossy nissan... 800 over invoice... plus they were the only dealership in 100 miles that had my daytona blue in a manual...
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