Lease question

[FaNaTT]

Hello everyone,

I am new on this forum and am looking to lease 370z this month. I have been in love with the car for a long time and now that there is a great lease deal on it I might actually be able to afford one! I will be going to a dealership at the end of next week since I am traveling now, so was wondering if someone could provide me with an insight..

On the website it mentions that the car is 300 a month + 3k down + tax and everything. So realistically, to get 300 a month I would have to put around 5k down? Am I getting this right?

Also, those who were able to lease - are these numbers "artificial" and are designed to just lure people into the dealership or are they actually attainable? Was someone able to get a better deal than that?

What about the credit application? This will be the first car I will be getting a credit for, so never had any car loans under my name. Additionally, my credit history is rather limited, with only about 10 months of history. I realize I will not qualify for the best rest, but does anyone know if the numbers are decent for a non-perfect situation?

Sorry for so many questions... Thank you all on advance!!

[Kayzee]

I would never lease a car like this.

A sedan purely for function, perhaps. A sportscar like this? No way

[SA370]

The lease specials you see online are for well qualified buyers (good score & credit profile). Your math is about right (5k to get to lease special payment), but based on your post, getting approved might prove to be difficult. Nissan may have a recent college grad program, but anything short of that you will probably need a well qualified co-signer. best of luck on getting a Z.

[FaNaTT]

I don't believe their college grad program affects a Z. On the website, one can roughly estimate a payment with a provided credit score range. Mine yields a few dollars more per month, which is not a big deal. Lets see how I unsatisfied they will be with the limited crest history part. Also, what OTD price of the car should I aim for if I finance it? Thank you for the input!

[FaNaTT]

I am trying to get the most basic car btw!

[squad008]

Here is some help from someone that just leased one. I lease a 2013 touring with nave and sport and pay $438 a month with $3438 down which included first months payment, taxes, title, license, dealer fees.

If you have the top of the line credit you can technically get the car for cheaper than the listed price, but this rarely happens.

Here's the best way to do this:
1. Don't tell the dealer you are going to lease and negotiate a buy price on the vehicle, check truecar.com for a rough range of what you are going to pay.
2. Know that on a 12k lease the residual is 59% (of MSRP) and .0014 which is really 3.36% interest.
3. There is 1k lease cash (DO NOT I REPEAT DO NOT let the dealer tell you that your negotiated buy price included this $1k, that is why you negotiate the buy price first.)
4. Get the dealer fees and title and license fees up front
5. Download a lease calculator on your phone, and there you go, you will know if your getting ripped off or if you are in the range.

Realistically the pricing is really based on how hard the car is to get. IF they have the car on the lot you probably will get it cheaper.

Anyway, I used a program called auto lease calculator- simple for android it was free in the marketplace. These are the variables:

1. Vehicle Price (the price you negotiated)
2. Down Payment (this does not include Title License or Dealer Fees but should include tax, any first months payment, and make sure to add $1k for lease incentive).
3. Sales tax
4. Intrerest rate take your money factor and multiply by 2400
5. Loan Term
6. Residual Value (should be 59% @ MSRP not your buy value)

Hope that helps. Technically the $300 you see on the website was if you leased it at MSRP I think. Therefore the title license and dealer fees should at least be negated if you negotiate the buy rate.

GL Hope that helped

[squad008]

P.S. normally I'm not a lease person and normally Z's don't lease well because the residual (at least from the company's point of view) isn't that great so the lease is usually way up there.

However, at the rates that these lease incentives are going for, if you were to purchase the car and then sell it after 39,000 miles and 39 months the resale value would be about $1k higher than your buy option. I.E. you pay about $1k extra in depreciation if you were a magician and could definitely get the exact dollar amount that Kelly's Blue Book says you should get, which is really tough. Also you would probably pay about $1k more in taxes which you will never get back.

I.E. at these prices you get a brand new sports car for the first 39k miles and can ride the hell out of it and return it in 39 months. I think this makes leasing right now worth it. But it is preference.

[squad008]

One more thing, I think the $1k lease cash is limited to the north east, not sure where your from, but hopefully you would be eligible or maybe they expanded it.

[FaNaTT]

I appreciate your input! I will keep all of those things in mind! I live in Florida, so that 1k money might not apply to me >.<

I tried to look for the app, but I have an iPhone and couldn't find it. I found something else though, so will try to figure it out.

The dealership I will go to has the car I want (I checked online) - base car in black color with no options. I love the Z, but financing is a bit steep now, so I want to lease and then buy. I was thinking about putting 8k down and bring the monthly payment down to about 240 OTD. Lets see how it goes!

[squad008]

Originally Posted by FaNaTT

I appreciate your input! I will keep all of those things in mind! I live in Florida, so that 1k money might not apply to me >.<

I tried to look for the app, but I have an iPhone and couldn't find it. I found something else though, so will try to figure it out.

The dealership I will go to has the car I want (I checked online) - base car in black color with no options. I love the Z, but financing is a bit steep now, so I want to lease and then buy. I was thinking about putting 8k down and bring the monthly payment down to about 240 OTD. Lets see how it goes!

With $8k down your payments would be high at $240 since right now they have a lease special on the base at $299 a month and that is if you don't negotiate the buy price at all. The $299 does require that you put down $3k (which includes your first months payment). This doesn't include your Tax, Title, License and dealer fees, but negotiating the buy price down from the MSRP should help eat up most of these costs. So that extra $5k down should lower the payment more than that.


HOWEVER, please remember this. NEVER EVER put down that kind of money on a lease. A little known fact that most people don't realize is that if you go off the lot and total your leased vehicle, your insurance company will only pay the car loan off and anything that you put down you will not get back. I.E. if your car gets totaled at any point during the lease you will never get back that extra money. I would put the extra money in a bank account and draw from it as needed to make up the difference in payments.

[persian54]

Originally Posted by squad008

With $8k down your payments would be high at $240 since right now they have a lease special on the base at $299 a month and that is if you don't negotiate the buy price at all. The $299 does require that you put down $3k (which includes your first months payment). This doesn't include your Tax, Title, License and dealer fees, but negotiating the buy price down from the MSRP should help eat up most of these costs. So that extra $5k down should lower the payment more than that.

Does anyone know what the rate will be if one gets Sport and the rear camera option?

I assume the Nismo has really high MF and low residual huh?

We have a couple Altimas but the Z leases they've given me are way too high! I wanted a Z w/sport + rear camera, they told me $480/month (nothing out of pocket).
I mean, I didn't sit and negotiate, but I was hoping to get something under $400. Would that be possible?

[synolimit]

I always lease for the cheap payment and I never keep a car longer than a year. Lease works same as a buy. You pay a price, you owe a certain amount on it, and if you ever want to sell you just owe what the payoff is. Pretty simple.

It's more complex if you want to buy it after the lease end, depends on the residual and in some cars you lose, break even or if lucky come out ahead. Based off of what a used 2010 is, I can come up ahead as my residual is about 2k under the lowest trade in value. During trade in for 2016 I can now have a 2k down payment if I would of put nothing down this time around.

A $35k car plus tax and title etc with nothing down to buy will cost you about $673 a month for 5 years (way to much monthly!!!). At the end of 5 years you'll have paid about $40k at 2.9%. Now a lease depending on the deal will be much cheaper monthly. My lease last month would have been $413 again with nothing down for a sport model with splash guards, floor mats and trunk mat. $413 vs $673 is a big difference!! Now my residual is $22,400. So after 39 month lease ill have paid $16,100. Then I need to finance my residual and my tax on that amount for $23,800. The payment comes to $427. Almost the same price as my lease payment. At the end of 5 years ill have paid $26,600 on the residual price. Adding the lease money to the buy out money ill be in for $42,700 over the whole payment life of my car.

So whats the difference? Easy. $40k for 5 years at $673 a month!! or $42.7k at 8 years for only $413 and $427 a month. In the 370z case it does end up being more but you have a car you love that you can afford. And again with a lease you can sell it at any time, mod it if you like, do anything you want to it and turning it back in as long as the paint isn't jacked and tires are good, you're good.

The bonus with a lease is after the 39 months if I want the new 2016 I can give my car back no questions asked, again put nothing down (although ill have about 2k since the residual was in my favor) and probably pay only $382!!. If the buyer wants the new 2016 he will still owe $13,800 and based off of trade in prices he might get about $24,000 (same as the lease guy). Now that means the buyer can put down about $10,200 for a new buy (lease guy had 2k down). But his monthly will still be $489 a month which again isn't as cheap as the lease payment ($489 vs $382). Eventually a buyer will win in the long run for money spent but people who are impatient, want new cars all the time, can't afford crazy monthlys, a lease wins out!

[synolimit]

Originally Posted by persian54

Does anyone know what the rate will be if one gets Sport and the rear camera option?

I assume the Nismo has really high MF and low residual huh?

We have a couple Altimas but the Z leases they've given me are way too high! I wanted a Z w/sport + rear camera, they told me $480/month (nothing out of pocket).
I mean, I didn't sit and negotiate, but I was hoping to get something under $400. Would that be possible?

My sport last month at invoice, tier 1 credit with 1k down is $388.

[Mike]

Originally Posted by squad008

HOWEVER, please remember this. NEVER EVER put down that kind of money on a lease. A little known fact that most people don't realize is that if you go off the lot and total your leased vehicle, your insurance company will only pay the car loan off and anything that you put down you will not get back. I.E. if your car gets totaled at any point during the lease you will never get back that extra money. .

Not necessarily true. The insurance company will pay what the car is worth, regardless if it is more or even less than what you owe on it. that's why leases have gap insurance just like you can get on a loan.

that being said, most of the time, you will lose a good chunk of that down payment money and you are better off not doing it.

[XiP]

gl hf dd