Looking to Lease a New Car?

Scataphagos · May 27, 2012

Was out car shopping this weekend... found a GREAT lease deal on Infiniti G37...

$399/mo, x 36 mo., 0 down payment.... MSRP on the car is $41,000

Years ago I was in leasing.... With the "monthly payment + down payment" @ <1% of MRSP, this deal is extraordinary.

Apparently terms are national and expire 5/31.

mgookin · May 27, 2012

Quote from Scataphagos:

Was out car shopping this weekend... found a GREAT lease deal on Infiniti G37...

$399/mo, x 36 mo., 0 down payment.... MSRP on the car is $41,000

Years ago I was in leasing.... With the "monthly payment + down payment" @ <1% of MRSP, this deal is extraordinary.

Apparently terms are national and expire 5/31.

Sounds like you know both sides of the industry. What's your take on mileage and condition of the vehicle and how bad people get hosed at end of lease? Since they write the contract, I'm sure it leaves it wide open to hose you for a gazillion dollars when you turn it in.

Paying $15k/$40k or 37.5% of the (assumed) value of the car for the best (first) three years of owning it does not sound bad as long as you're going to use it and you're not constrained by some nazi contract terms; that's what has prevented me from ever considering a lease.

I was in a car rental facility a few weeks ago talking to a friend who works there. They had a sign on the counter saying if there are bugs on the car when you turn it in, it causes permanent paint damage and they have to have a body shop repair it at some outrageous cost. I didn't say a word - I was not there to rent a car.

Looking at brand new Mustang's a few months ago the transmission was made in China. I spoke my mind and walked off the lot. Couldn't be more disappointed.

Had a new car saleswoman forge my signature on extended warranty when I was young. I since spent a career as a contract document examiner for government and read every written word today telling them they may as well not speak because I won't believe anything not in writing and every time they interrupt I have to start over. They hate the experience until the deal goes through - if it does!

So what's the inside scoop on leases? Do you get hosed if you don't know someone on the inside?

JamesL · May 27, 2012

Quote from Scataphagos:

Was out car shopping this weekend... found a GREAT lease deal on Infiniti G37...

$399/mo, x 36 mo., 0 down payment.... MSRP on the car is $41,000

Years ago I was in leasing.... With the "monthly payment + down payment" @ <1% of MRSP, this deal is extraordinary.

Apparently terms are national and expire 5/31.

how much mileage are they giving you?

BSAM · May 27, 2012

Car leases are merely another legalized scam that goes on here in the USA.
Too much fine print.
Even if you read it, I doubt you interpret it/understand it correctly.

icarus618 · May 27, 2012

Quote from Scataphagos:

Was out car shopping this weekend... found a GREAT lease deal on Infiniti G37...

$399/mo, x 36 mo., 0 down payment.... MSRP on the car is $41,000

Years ago I was in leasing.... With the "monthly payment + down payment" @ <1% of MRSP, this deal is extraordinary.

Apparently terms are national and expire 5/31.

Just do a quick internet search. Dealers in your area (Denver, if I remember correctly) are selling for less than invoice right now. Leasing for 1% of MSRP looks neither GREAT nor extraordinary now does it? Also, the lease on the Infiniti site is based on max 10,000 annual miles, which isn't a problem for someone like me who drives a few thousand miles a year. However, every lease I've had allowed at least 12,000 miles per year. It's been awhile since I leased a car, though, so I don't know if 10,000 is now standard. I stopped leasing after the last one when I gave back the car with around 11,000 miles on it after 3 years.

icarus618 · May 27, 2012

Forgot to add the pic.

shopster · May 28, 2012

get a " chinese roller ".

<object style="height: 390px; width: 640px"><param name="movie" value="http://www.youtube.com/v/6rY3yNf-W3c?version=3&feature=player_detailpage"><param name="allowFullScreen" value="true"><param name="allowScriptAccess" value="always"><embed src="http://www.youtube.com/v/6rY3yNf-W3c?version=3&feature=player_detailpage" type="application/x-shockwave-flash" allowfullscreen="true" allowScriptAccess="always" width="640" height="360"></object>

shopster · May 28, 2012

always ride in the trunk of a chinese car.

put your mother in law in the front seat.

remember: age before beauty.

s

Scataphagos · May 29, 2012

Quote from icarus618:

Just do a quick internet search. Dealers in your area (Denver, if I remember correctly) are selling for less than invoice right now. Leasing for 1% of MSRP looks neither GREAT nor extraordinary now does it? Also, the lease on the Infiniti site is based on max 10,000 annual miles

If they're really going for $36,558, it's still a good deal... 1.09% of actual sale price. Average value leases usually run about 1.2-1.25%. Bad deals, higher.

This particular deal is on 10,000 miles/year... but 12-15,000 miles available at appropriately higher monthly payment.

Of course any lessee should "run the numbers" to see if he's getting a good deal...but <1%, rule-of-thumb, has traditionally been an outstanding and rarely seen deal. (You don't know the actual sales price/cap cost of a car until you do the deal... but when quickly evaluating lease offers, comparing "monthly payment + pro-rated down payment" vs. MSRP, 1% is rarely offered.)

Scataphagos · May 29, 2012

Quote from mgookin:

Sounds like you know both sides of the industry. What's your take on mileage and condition of the vehicle and how bad people get hosed at end of lease? Since they write the contract, I'm sure it leaves it wide open to hose you for a gazillion dollars when you turn it in.

Paying $15k/$40k or 37.5% of the (assumed) value of the car for the best (first) three years of owning it does not sound bad as long as you're going to use it and you're not constrained by some nazi contract terms; that's what has prevented me from ever considering a lease.

I was in a car rental facility a few weeks ago talking to a friend who works there. They had a sign on the counter saying if there are bugs on the car when you turn it in, it causes permanent paint damage and they have to have a body shop repair it at some outrageous cost. I didn't say a word - I was not there to rent a car.

Looking at brand new Mustang's a few months ago the transmission was made in China. I spoke my mind and walked off the lot. Couldn't be more disappointed.

Had a new car saleswoman forge my signature on extended warranty when I was young. I since spent a career as a contract document examiner for government and read every written word today telling them they may as well not speak because I won't believe anything not in writing and every time they interrupt I have to start over. They hate the experience until the deal goes through - if it does!

So what's the inside scoop on leases? Do you get hosed if you don't know someone on the inside?

"How badly do you get hosed at end of lease"? Assuming you turn the car back in and don't buy it out at the residual.... you get charged for excessive mileage and "wear and tear". They usually send out an inspector to determine what those charges will be and give you a chance to do repairs/tires (if needed) before you turn it in.

(With wife's last car.... she's notorious for curbing her wheels. New ones cost $600 each, but we got them satisfactorily repaired for $160 each. Also needed a back bumper repainted... took it to Maaco and got it done for about $200... tires were OK, didn't need to replace. They will charge you for a "detail" if the car isn't cleaned up well. So, take it to a decent car wash and get their "best" car wash for $25... maybe add an "interior detail" for $44, if needed. All in all, can be reasonable and fair if you give yourself a little time and go to the effort.)

The dealer doesn't actually "write the contract"... rather they just fill in the blanks. Lease contracts are standardized and regulated by the state, so it's all mostly cut-and-dried. Yes, the dealer can still hose you some, but not superhose you.

Looking to Lease a New Car?

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