Deal too good to be true?
 

I've leased 3 brand new nissans from the same dealership, and on my most recent lease am suffering a little buyers remorse. I leased a white altima when what I really wanted was a black 370z. I'm 18 months into a 39 month lease and I want out. I talked to the sales manager and he's claiming he'll pay off my lease, and put me in a brand new leased 2011 black 370z stock model with AT for $500/month, no money down. Obviously on the altima I put $4000 down, but I dont want it anymore and I owe 23k left. The Z's MSRP is something like 33k. He didnt give me the interest rate or even what he's actually selling it to me for, he just said he doesnt want me to be unhappy and values my continued business, since they expect me to lease future cars of course.

So the question is, does this sound like a good deal? Obviously I'll want the money factor and sale price in writing, because if I feel like I'm getting ripped off (I have a 747 credit score) then I could further reduce my payments. But I'm effectively bailing out of an existing lease, and going into a new one with no money down. I made careful attention to tell him I know the standard procedure for the dealership is to buy off the lease, calculate the difference between their appraisal and what I owe, and just tack it on to my new lease, effectively leasing me a 33k car for 36k or something in that neighborhood. I told him that wont fly with me, and that I am looking for the dealership to do me a favor if they truly value me as a customer, by giving me near full value for the car, thus making almost no profit for themselves on the Altima. Otherwise in 2013 when I go to return my Altima, I probably wont be leasing any more from them simply because the experience will have been soured.

This is all pretty unorthodox isnt it? I suppose the initial down payment is a bit of a wash, but I did put 16k miles on that car so its equity has been used up some.

What do you guys think? Are they playing for me here? Or just playing me.

As you said, without an interest rate or final cost of the car, it's hard to tell if he is ripping you off.

So since he hasn't told you that stuff Imma have to say yes, it is.

Definitely too good to be true. Sales manager calls me back and suddenly a lease is going to be in the 600's so instead they can finance it to me for 7 years (lol) at $510/month. The MSRP was 34k and they just added on the remaining amount from my altima to make it 37k, not even coming down a dime from the sticker price. The entire situation was pretty madening because I had already spoken with another salesmen from another dealership and was getting entirely conflicting results, so clearly it's a screw job. I'll probably just try and negotiate as much of a buy price from a 3rd dealership on my altima, then begin negotiating on the Z price and see if I can find a happy medium between the 2. If not, I'll just keep the altima for another 18 months and be rid of it for good. And probably Nissan in general since the whole situation has just pissed me off.

you hate nissan because a dealer wont over pay for your car because you dont like it anymore?? Where should the neg equity go?? The dealer should pay YOUR 3-5k of bad money because you bought cars there before?? how many times a month could they do that?Get real bro, figure out your buyout find out what your trades worth and the difference comes out of your pocket or goes into the new loan, nobody owes you anything

I know this. I was trying to get the dealer to think longterm here. I'm 29 and recently married. My 2nd lease was on a new car for her, which I talked her into getting since I'm a big fan of Nissan as a manufacturer. I fully intend to get future Nissan's, and I might as well get them from the same dealer right? So longterm results suggests that this one-time favor could result in 10 more car purchases from me, especially once we have children and I get them all Nissan's too. I wasnt asking the dealer to take a loss, just not to make $3000 profit on me either.

If I'm going to pay sticker price on a car then they are profiting at least 2-3k. If they cover my negative equity then they're really breakeven on the deal. Instead they want to roll my negative equity into the cost of a new car, which I will already be upside-down on since I'm paying full sticker with no down payment. Net result? I'm now 2x the average negative equity, or probably 6k+ upside-down on my new Z. Thats just stupid on my part to take such a deal.

Anyway I'm obviously not going to hate Nissan necessarily as a brand, but I can honestly say when I return the car I'll DEFINITELY take a look at an Audi or BMW or Lexus sports car rather than exerting my loyalty towards Nissan. I'll just be reminded of the bad experience, even though it was my own fault, and not feel comfortable about shopping there. Their loss if you ask me. Especially once I chat with my buddies and talk them out of potential Nissan purchases in favor of other brands, as is only natural if I develop a bias against them.

You know, 7 years at $510 isnt really sounding all that bad the more I think about it. Most people get a loan for 6 years, and everyone I'm seeing on this forum and the 1 person I know who owns a Z all pay $500+ for theirs. Seems like I would basically be paying for 1 additional year, a small price for my screwup impatiently purchasing the altima.

Ok just ordered my Z. Brand new 2011 black 370, AT, Spoiler, tinted windows, everything else stock. OTD = ~32k. They completely paid off my altima and didnt roll over any of the negative equity into the Z. They basically gave me the Z for around stock invoice price for a 7 year finance at $480/month. With no down payment, I figure they are putting me around 7% APR to make up for them overpaying on the altima, which is bad since I have outstanding credit. I figure I can probably just go and get the car refinanced within a week elsewhere for much better.

Pretty good deal honestly since they basically erased the Altima completely. Even KBB says my car was only worth 18.5k and the dealer gave me 23.3k for it.

:wtf2:

Really? 7 years? ... Lol. 5 years should be avg, I really think anyone should down half the price on any car atleast. Don't try to buy a car you can't afford .

You really shouldn't be using monthly costs to compare anything.

You had me along until you brought up 7 years. That's a really baaaaaaaaaaad deal, 7 years is way too long to be locked into car payments at $500+/month, check how much the car will end up costing you at the end of those 7 years, what the car will end up costing after depreciation, plus things change, new models are introduced, your family situation. Most of us on the forum have the car pay for or put down 50%-75% of the car price so don't use the $500+ as your reference.

you really think "most" people on here put down 50-75 percent on the car... i certainly don't

with no money down at 480 for 7 years its 40,320 total money spent on the car.... i wouldn't do a 7 year loan on a 7 percent interest rate, that def adds up and you can see when you look at what you end up paying.. but if you are happy that is all that matters.

you got a base AT? so invoice should be around 29000 I think? or a sport? I would see if you can try to get your rate down enough to swap it to a 6 year and keep a similar payment...

what was odd with my latest car, when i offered to buy an extended warranty they had wiggle room in my interest rate... it went from 5.9 on a used car to 1.9 and almost negated the cost of the warranty.. my payment went up 12 dollars a month for a 100k bumper to bumper warranty because they magically played with the interest rate on a 5 year used car loan...

You know nothing of car buying. You either put no money down or pay the whole thing. Any other way you are getting raped. I guarantee you, if you pay half a car up front? You are losing G's. And lastly, don't play high and mighty with those affordability comments. Its tacky.

A lot more people have their Z pretty much paid for or with plenty of equity going by numerous threads you've more than likely come across. Moreover, I know plenty in the MidA crew in that situation... so yes, I think "most" people on here put down significant down payment on the car.
Chuck, you noted 5.9 rate on a $29000 for 6 years which ends up being over $10000 interest just on the loan, that's huge. OP, please consider going with a shorter loan period and get it out of your way.

Not sure if serious.

Lots of people get great deals paying that way. I bought my Subaru with half down, you can check with phelan to see what kinda deal I got on that...$500 under invoice with snow on the ground, only wrx within 100 miles. I've only seen a handful of pepole do that well since.



Having seen the prices you paid for your car, I'm not sure I'd be telling people they "know nothing"....Besides, it's uneccesarily combative and isn't helpful.

+1 Say it as it is Red.

i agree with red zed too. why pay so much interest on a rapidly depreciating car?

Apparently I have no idea how car buying works.... They are FORCING you to use their financing? or they just gave you a "total package" and you are assuming a 7% APR effective rate based on monthly and what price you think you got the Z for?

"I'm 18 months into a 39 month lease and I want out.... Obviously on the altima I put $4000 down, but I dont want it anymore and I owe 23k left." YOU OWE $23K for 18 more months on a LEASE!? after $4k down? PLease please please say it aint so... Thats like $50k to lease an altima for 39 months? I dont believe it. Leases generally bind you to the term of the lease, not the buyout cost of the car.

Your monthly lease payments on the altima must be like $200-$300. A lease buy out would be $300*18months = $5400


Maybe you got the Z for
$40320 with 0% APR for 7 years..... or
$36451 with 2.9% APR for 7 years (roughly the rate for a 7xx credit score) which is about $7000+ over invoice on a 11 370z base

Looks like they tacked on $5400 remaining lease payments on to a MSRP base 370z and gave you 2.9% APR for 7.

My math could be wrong, I'm not a very smart man, but it looks like you paid for the next 18month of the altima you wont be driving and bought a Z from them.

Your second assessment is correct poorazn. They actually did try to finance me at 2.75%, they sold the stock Z for $32,718, and just added on my remaining lease payments for a grand total of something like $36,800.

I definitely got bamboozled and have a lot to learn about car buying. I contacted my credit union and they said I was approved for a loan at 36k, so I'm just going to either trade in my lease and be a little more aggressive in getting the payoff I want on it, ride it out till 2013, or use a service like Swap a Lease to get someone to take it off my hands and be rid of all future payments.

Then I will approach a dealer with the check written out for the amount I intend to pay and that will be that, they can either take it or leave it. I'm thinking of offering something like 31k or 32k for a touring sports package.

there's no way you're getting a 2011 touring sport for 31 or 32,000

May I suggest not to look into leasing anymore? To me, the idea of paying for a rental car all the time without gaining any equity seems like dumping money to trash... just my personal opinion.