I have a writing in offer for infinite qx50 2017 39 months 0 down 12k miles/year. Base model with the following details. Is this a steal? Can I do better?
Msrp: $36100
Selling price : $28370
Total with fees and taxes:$31809
Residual:$20700
$315/month all fees and taxes included. All licensed and title include. Drive off for first month due.
Any thoughts?
Seems pretty good to me
What’s the breakdown of fees and taxes? Seems a bit high.
Fees:1054
Taxes:2384
Az taxes.
I told them I’d do it for 300/month and they let me walk out saying they couldnt do it
The tax amount is way too high. Arizona taxes the monthly payment - the only taxes you could owe would be registration and then tax on any rebates or capitalized cost reduction. I would ask them for a breakdown. Something doesn’t smell right.
. I’m assuming the taxes are just amortized into the payment right? On the paper the 315/month is all I pay includes monthly tax. They just divide it out by the 39 months
That’s not how it is calculated in Arizona, taxes are not capitalized. I honestly have no idea what that represents. I would recommend getting a line by line breakdown of every item included in the capitalized cost.
But if we remove those taxes from the price total. Won’t the payments just be (payment minus tax) + tax per month. So take that 2380/39=60. So it’s like 255+ tax(60) per month?
Not necessarily. They could have some fees jammed in there and then there is tax on the payment. To figure out the tax component of a lease payment, divide the payment by 1.XX. For example if your payment is 300 and sales tax rate is 8% then divide 300 by 1.08 and get 277.77, which is your pre-tax payment. I have never heard of a dealer in a state that taxes the monthly payment, showing tax as a capitalized cost. The reason being that it isn’t calculated that way and you would be effectively paying interest on sales tax. Something isn’t quite right with what they gave you. Get more info and see what’s going on.
MSD - Infiniti will take up to 9 multiple security deposits that lower the money factor by .00001 (almost .25%)
Can’t believe I’m the first to say this.
He clarified they include that for the selling price if I were to buy. But it’s not included into the monthly. The monthly tax is included but is separate from that number
I’m not sure about the msd. Couldn’t I get better than a. … 25% interest rate by putting money into the stock market or even a 1% savings account?
MSDs depends on money factor and brand, but often you can get a 12-15% return on your money, which will exceed nearly any other investment. I’m getting over a 12% return on my Mercedes lease. To figure out your annual return, simply calculate monthly savings and multiply by 12 and then divide by total of the security deposits. In my case, I’m saving 72 per month (864 per year) and put down 7k in MSDs. 864/7,000 = 12.34% return annually.
I should add that the return is tax free. They generally make a ton of sense if you can part with the cash for the lease term.
I’ll have to ask about that but I like the idea. Surprised they wouldn’t mention that to try and help me…
They’ll never bring it up. Dealers like simple and avoid anything that adds complexity. Also, they want your out of pocket number to be as small as possible.
Yeah just like how they love to push me doing a trade in. We’ll thanks I’ll have to go back with that. In the mean time I was marketing that price around to other dealers to see if they want to beat it
You are reducing the interest rate on $31,809 by 2.2% by loaning them $3150 for 39 months. That’s approx $1700 over the life of the lease. Looks close to like 15% return on investment. Sorry my math was quick and dirty. It’s rare that MSDs don’t help.
Don’t even discuss MSDs with the salesman. Get your best deal and, then tell the finance manager you’d like to max out MSDs (assuming you have the spare cash to invest). These are totally refundable deposits, each one equal to one month’s payment rounded up to the nearest $50 before the discount is applied to the money factor. (i.e. payments of $315 would be a MSD of $350) The only time you should buy down the cap cost is if the monthly payment is very close to a multiple of $50 and you’ll save yourself $450 in security deposits.
With 9 MSDs your $318 payment will be closer to $275.
By the way, We really liked the QX50. It is basically a G37 with a hatch and jacked up 6 inches. I liked our G37 way more than our Q50. Unfortunately the financing terms weren’t favorable when we were looking in December - mostly because the money factor was so low that MSDs couldn’t be applied.