That is the money factor, right? Which is multiplied by the sales price plus the residual value.
One more question, how does MSD work? Do you pay it up front or how does it affect the monthly payment. I know it wont hardly affect the money factor with Infiniti, but i would like to know for future refernce.
thank you
I have a spreadsheet I use to calculate everything for me, however, Iâll try to break it down. Letâs assume an MSRP of 50,000
MSRP: 50,000
Lets say you negotiate a price of 45,000. 45,000 will be your base cap cost.
Now you have to add in some variables. Youâll add in your Acquisition fee of 700, and any other incidentals, such as Trade inequity (youâre upside down on a trade and want to roll that money into the new lease), Document/licensing fees, and extended warranties. Letâs say your doc/license fees are 500. Youâll add the 700 acquisition + 500 doc fees into your base cap cost of 45,000. This will be your Gross cap cost. In this scenario, your gross cap cost is 46,200
Now, your cap cost reductions come into play. This is rebates, additional dealer discounts, trade in allowance and down payment. Letâs assume a rebate of 2500. Your Net cap cost would then be your Gross Cap cost minus cap reductions, or in this case, 43,700
At this point, your numbers look like thisâŚ
MSRP: 50,000
Base Cap Cost: 45,000
Gross Cap Cost: 46,200
Net Cap Cost: 43,700
Now itâs time to calculate residual, finance rate, etcâŚ
Letâs say the residual value on the car is 55%. You would take the MSRP (50,000) and multiply by .55 to get your residual of $27,500.
RESIDUAL: $27,500
Your lease is the sum of Depreciation, finance charge and tax. To find the depreciation, you will take your Net cap cost of 43,700, and subtract from the residual of 27,500 for a total of 16,200. This is the amount of depreciation you will pay over the life of the lease.
DEPRECIATION: $16,200
To find the finance charge, you will need to take the net Cap cost of 43,700 and ADD it to residual of 27,500. You would then multiply this number by the money factor (interest rate). Letâs say the money factor is 0.0003. This will give you a total of 21.36. You would then multiply that by the number of months of the lease, in this case, 39. So that gives you a finance charge of 833.04 over the life of the lease.
FINANCE CHARGE $833.04
Add the depreciation and finance charge (rent charge) together for a total of 17,033.04. Divide this number by the number of months of your lease, or 39 in this example, and your base lease payment would be $436.74.
BASE LEASE PAYMENT $436.74
Tax gets a bit tricky. Some states donât charge tax. Some states charge tax based on the depreciation + finance charge. Some states charge tax on the entire sales price of the car. Iâm not sure what the rules of your state are, but letâs assume that tax is charged on the depreciation + rent as it is in most states. In this case, youâd take your tax rate (5% as an example) and multiply it by your base lease payment of $436.74 to get $21.84. Add these two numbers together, and you have your total lease payment of $458.58
TOTAL, WITH TAX: $458.58
Hope this helps.
Yeah, that helps a ton. Thank you for laying that out for me.
It looks like Iowa charges a one time registration fee of 5% on the sales or lease price for vehichles. So i am assuming that is included in the upfront cost.
This is the deal i ended up getting in case any of you are interested.
2018 Infiniti Q50 RED SPORT 400 AWD with sensory package
39 month/15k mile lease
MSRP: $57,775
Sale Price: $48,674
$4500 down payment (i know, I know this is way to high of a down payment.)
Monthly payment: $406
Not smart to put any money down, but if youâre happy with the car, thatâs all that really matters. Congrats.
Lol. you asked all those questions, got all kinds of great advice, and everyone urged you NOT to put down $5k, so you put $4500 down instead? Well⌠you have 39 months to hone your hackr skillz, I guess. Anyway, enjoy the car. Itâs a beast!
yeah, i worked on the price for 2 weeks and got the price down 211 a month, and then i just got impatient. i cant complain as this is my first lease though. thank you, definitely a fun car so far.
Hopefully you donât total the car, since you wonât get your money back.
Enjoy the car and post a picture (or more) in Garage Trophy thread!
Yeah i know, and a lot can happen in 39 months. I will definetly post some pictures.
WOW! $4,500 down? So true monthly is more like $520.
I know this post is a bit old now but I just wanted to share my experience. This is my first time leasing as well. I am also pretty sure we have the same exact car because the MSRP is exactly the same.
Here is what I just signed last Friday. This is not the deal of the century nor did I expect to get one, but this is what I am happy with right now.
2018 Infiniti Q50 RED SPORT 400 AWD with Sensory package and couple other accessories
39 month/12k mile lease
MSRP: $57,775
Sale Price: $46,592
Down payment: $0
Drive-off: $793 (includes first month least payment and DMV fees)
Monthly payment: $477 including interest and tax
Sales tax: 11% (nothing I can do about this because of where I live)
Inventory on the Red Sport is pretty limited at this time (at least where I live). Residual value seem to have dropped 1% recently. It used to be 54% for 39 month/12k mile lease, and now it is 53%.
For anyone who is looking to get this car soon, I feel that just before end of March should be the best time to get it since it is Infinitiâs fiscal year end. I just recently sold my car to a private third party so I personally couldnât wait this long.
For anyone who is looking for leasing tips, I highly recommend reading @HN308 old threads. I gained a ton of knowledge just by reading his posts and comments. Good luck!
Looking for a good deal on 2018 Red Sport in NJ. Is 15% off MSRP still doable? 55k MSRP, looking to be in the mid 400 range with 0 down. 6.875% sales tax.
Any suggestions?
Nice, looks like a solid deal to me. I experienced the same issue with the inventory being limited. My car was one of 2 Red Sports in Iowa and the other one had an MSRP of around $62,000. I did shop around a little outside of my state but i was only able to find one more red sport, in Kansas City, that had the same MSRP as mine. Only problem with them was they would not drop the sale price below $50,000. In retrospect i should have waited it out and kept working the price/downpayment down but i was getting a little desparate as i had sold my car 5 months before.
15% should still be doable as i got that in the middle of January. I am in no way an expert on leasing as you can probably tell, so all the advice I can give is what I wish I had done. I worked on my deal for about two weeks and then I got impatient. If i had waited it out a little longer, at least till the end of the month, I am positive I would have had a better deal. One thing i would recommend doing is shopping around, if you can. I told my salesman that i was looking at a car in Kansas and he immediately dropped the sale price $1,000. I know i did not get an insane deal any way you look at it but I really enjoy my car, so I guess that is all that matters.
There are couple things that I could have done better for sure. We just need to learn from experience and do better next time 
The car is really quickâŚI am enjoying my new car a lot.
Very true, as vdub84 saidâŚwe now have 39 months to work on our leasing skills.
Definetly enjoying my car as well, even though ive put less than 800 miles on it.
15% is very doable. You can use my numbers as a reference. There are tons of Infiniti dealerships near NJ, PA, and NY. More competition between dealerships is good for you. Also, my sales tax is 11%. I wish I can get 6.875% like you.
What color do you want? White and blue is a bit hard to get than the other colors. Also, I can refer you to my guy who sold me the car if you are interested in buying the car from PA.
@Alh98 Is this lease rate based on Tier 1 Credit that Inifniti is looking for? A dealer was quoted me 675 a month for q50 3.0 Lux Est. I told them something is not right with this quote even my fico score being in the 630. What do you think?
Yes the numbers i put up earlier are for tier 1. I ended up being in tier 3, because i did not have credit when i leased it, so i had to cosign. I knew this was going to happen thats why i wanted my monthly payment as close to 400 as i could get. Tier 3 added another $20 a month.
What is the MSRP? And what percentage off MSRP is your sales price? You should be able to get a sales price that is at least 15% off MSRP.
My guess is they are jacking the money factor up. Make sure you ask them what they are using for MF. Infiniti has a MF of .00003.
Also, double check the residual value of the car for the lease terms you are looking for, and make sure they are using the same residual value. This is my first lease, but from what i have read, most dealerships do not mess with the residual value but it might be a good idea to double check this.
It might also be because this is the middle of the month, which tomorrow will be exactly a month from when i got my car so this is a just a guess. The last week of the month is usually when the best deals come along.