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Old 07-17-12, 03:24 PM   #1
SaintNexus
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Default Best Luxury Lease Special?

My girlfriends family is looking to lease a new car, and I suggested a few models from different makes, and as I was browsing, I just came across this:

http://www.infinitiusa.com/current-o...Home_Page.Home.

I thought the 2012 Lexus IS250 lease special was a great deal, with $2,999 down and $329 a month for 27 months.

But Infiniti is offering their 2012 Infiniti G25/37 sedan with $1,799 down and $289/$319 a month for only 18 months!!

That's insane.

Which brings me to my question: Why are they doing this? Why such a short term?

I haven't really been keeping up with any Infiniti news, so seeing this is just shocking.
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Old 07-17-12, 03:28 PM   #2
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Originally Posted by Incredible View Post
Which brings me to my question: Why are they doing this? Why such a short term?
Because no one is buying it.

And both the IS and G deals involve down payments that break down to $100 a month on the lease: $2999 for 27 months, and $1799 for 18 months. At the end of the day, you're paying practically the same monthly for the IS and G when you count the down payment in the equation.
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Old 07-17-12, 07:19 PM   #3
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There are probably some good deals on the 2012 ES350 also.
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Old 07-17-12, 08:29 PM   #4
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Its a buyers market, win for us.
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Old 07-17-12, 09:05 PM   #5
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Well, it's a well-known fact that leasing is almost always more expensive than buying a car outright, especially if you keep the car for 10-12 years.

Hell, if you buy a car outright and keep it for 12-15 years, you don't even need to make anything back on resale to win out over leasing a comparable car every 3 years.

I mean what's more expensive, leasing a new G37 every 18 months for 9 years ( = $44,928 and obviously you don't own a thing at the end of your third lease term) or buying the same car outright ($38,695 MSRP excluding TTL, so let's call it $40,000 even), keeping it for 9 years

Say you're lucky and you can expect a 6% ROI from the stock market every year. Roughly speaking, the additional "cost" of paying $40k up front is as follows -

2000 = (($40,000 - (down payment + 12*monthly payment))*.06), 1500, 1300, 1000, 900, 800, 600, 500, 500 = $9100.

So the final cost of buying outright is ($49,100 - resale value of an infiniti g37 after 9 years).

A 9 year old G35 with 180,000 miles is going for around $9,000 right now, so let's use that figure as a conservative estimate for resale value of a G37 after 9 years (even though a G37 would probably have slightly higher value)

Final cost of buying outright = $49,100 - $9000 = $40,100
Final cost of leasing = $44,928

And that's just 9 years of ownership. The difference typically becomes more pronounced (despite resale value plummeting annually) if you keep it even longer.
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Old 07-17-12, 09:06 PM   #6
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Oh, and bear in mind, that's with buying a brand new vehicle outright. The really financially savvy people tend to buy slightly used cars and keep them for ~10 years, taking advantage of the 30%+ hit in market value once a brand new car is driven off the lot.
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Old 07-17-12, 09:19 PM   #7
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Quote:
Originally Posted by Incredible View Post
My girlfriends family is looking to lease a new car, and I suggested a few models from different makes, and as I was browsing, I just came across this:

http://www.infinitiusa.com/current-o...Home_Page.Home.

I thought the 2012 Lexus IS250 lease special was a great deal, with $2,999 down and $329 a month for 27 months.

But Infiniti is offering their 2012 Infiniti G25/37 sedan with $1,799 down and $289/$319 a month for only 18 months!!

That's insane.

Which brings me to my question: Why are they doing this? Why such a short term?

I haven't really been keeping up with any Infiniti news, so seeing this is just shocking.
The reason Infiniti is doing this is because the G37 Sedan and Coupe is about to get a refresh next year . The low rates are to get people into the cars for a short time, then when the new models come out get them into those.

Since I own a G and am very hesitant to lease a new one for 39 mos, this is better suited for guys like me, where I can get in for 18 or 24 months and then get the new one in 2014.
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Old 07-17-12, 11:16 PM   #8
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Originally Posted by dmvp29 View Post
Oh, and bear in mind, that's with buying a brand new vehicle outright. The really financially savvy people tend to buy slightly used cars and keep them for ~10 years, taking advantage of the 30%+ hit in market value once a brand new car is driven off the lot.
Yup, for those who want the best bang for the buck!
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Old 07-18-12, 02:26 AM   #9
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Quote:
Originally Posted by Mixman View Post
The reason Infiniti is doing this is because the G37 Sedan and Coupe is about to get a refresh next year . The low rates are to get people into the cars for a short time, then when the new models come out get them into those.

Since I own a G and am very hesitant to lease a new one for 39 mos, this is better suited for guys like me, where I can get in for 18 or 24 months and then get the new one in 2014.
Yep my thoughts are the same. Many Infiniti's (like BMWs) are leased. If they can get you into the car now and you enjoy it, you're more likely to sign a new lease on the newer model that will probably be on the showroom floor when your lease is up
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Old 07-18-12, 06:01 AM   #10
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I have to do some research about leasing vs. buying. I get tired of my cars around year 3-4 and trade them in. If you lease it seems you don't have to worry about depreciation, loss of value for minor accidents, etc. I think I may lease my next car just because of that and the fact that maybe I won't be so particular about my cars.
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Old 07-18-12, 10:26 AM   #11
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Quote:
Originally Posted by dmvp29 View Post
Well, it's a well-known fact that leasing is almost always more expensive than buying a car outright, especially if you keep the car for 10-12 years.

Hell, if you buy a car outright and keep it for 12-15 years, you don't even need to make anything back on resale to win out over leasing a comparable car every 3 years.

I mean what's more expensive, leasing a new G37 every 18 months for 9 years ( = $44,928 and obviously you don't own a thing at the end of your third lease term) or buying the same car outright ($38,695 MSRP excluding TTL, so let's call it $40,000 even), keeping it for 9 years

Say you're lucky and you can expect a 6% ROI from the stock market every year. Roughly speaking, the additional "cost" of paying $40k up front is as follows -

2000 = (($40,000 - (down payment + 12*monthly payment))*.06), 1500, 1300, 1000, 900, 800, 600, 500, 500 = $9100.

So the final cost of buying outright is ($49,100 - resale value of an infiniti g37 after 9 years).

A 9 year old G35 with 180,000 miles is going for around $9,000 right now, so let's use that figure as a conservative estimate for resale value of a G37 after 9 years (even though a G37 would probably have slightly higher value)

Final cost of buying outright = $49,100 - $9000 = $40,100
Final cost of leasing = $44,928

And that's just 9 years of ownership. The difference typically becomes more pronounced (despite resale value plummeting annually) if you keep it even longer.
I need to add something to this which I fell leasing has a better value now

1. Your final leasing cost was only about $5k for 9 years
2. Lease have lower down payment, less upfront cost + tax
3. Full warranty through the lease
4. No maintenance or tune-up cost (except for oil change), most car will require some repair/tune up after (5 years). ex. Tires, brake, belts, & etc
5. You get new ride every 3 years (ex. on the 3rd lease, I'm driving a all new 2012 car vs a 6~9 years old car)
6. Since it require full insurance coverage, peace of mind (since I always get full coverage)
7. You are lucky to get $9k out of 9 years old car with over 100K mileage

However, this is base on personal preference & entry level luxury car.

If I want a new entry level car like 3 series/C-class/G37, I will lease due to the above reason.

If new car is not require, I prefer used car for better resale value

Last edited by grabber2; 07-18-12 at 10:33 AM.
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Old 07-18-12, 11:02 AM   #12
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Quote:
Originally Posted by grabber2 View Post
I need to add something to this which I fell leasing has a better value now

1. Your final leasing cost was only about $5k for 9 years
2. Lease have lower down payment, less upfront cost + tax
3. Full warranty through the lease
4. No maintenance or tune-up cost (except for oil change), most car will require some repair/tune up after (5 years). ex. Tires, brake, belts, & etc
5. You get new ride every 3 years (ex. on the 3rd lease, I'm driving a all new 2012 car vs a 6~9 years old car)
6. Since it require full insurance coverage, peace of mind (since I always get full coverage)
7. You are lucky to get $9k out of 9 years old car with over 100K mileage

However, this is base on personal preference & entry level luxury car.

If I want a new entry level car like 3 series/C-class/G37, I will lease due to the above reason.

If new car is not require, I prefer used car for better resale value
Those are some of the reasons I think I may lease my next daily driver. Is there a reason why you would only lease an entry level luxury car vs. a more high level luxury car?
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Old 07-18-12, 01:48 PM   #13
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Originally Posted by patgilm View Post
Those are some of the reasons I think I may lease my next daily driver. Is there a reason why you would only lease an entry level luxury car vs. a more high level luxury car?
Higher end car have a bigger depreciation and result in higher monthly payment. For ex. one of my friend is paying $350/months for a $40K IS and one is paying $700/months for a $57K GS.

The price different is too much according to my standard. I'm good with number, so I will only goes for the best value and entry level luxury seem to have the best value.

Last edited by grabber2; 07-18-12 at 01:56 PM.
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Old 07-18-12, 04:12 PM   #14
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You can probably lease a Honda Civic for less than $300/month. They have special offers on them for $199 + TTL so with no money down, it should be less than $300. I think for every $1000 you put down, it's $25ish less a month for 4 years.

And that's why, it's better to lease a daily but the Civic isn't very "fun".

Last edited by huy33; 07-20-12 at 03:36 PM.
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Old 07-18-12, 11:06 PM   #15
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If you are making a "buy or lease" decision, check first with your tax adviser. Tax breaks, particularly for a business lease vary from state to state and year to year. In some circumstances, a lease may be a considerably better deal at tax time.
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