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Discussion Starter · #1 ·
So I stopped by my local CarMax and they gave me an offer of $24K for my 2010 G37S. Unfortunately the residual for the leased car is $24,435. I have not yet had my Infiniti inspection because it must be done within 60 days of my lease end, so the earliest that I can do so is July 5th.

So here is my dilemma and need your advice/expertise:

My lease paperwork states that there is a $395 disposition fee if I do not purchase the car. Does anyone know if I will have to pay that fee if CarMax buys it?

If that fee is waived if I sell to CarMax, then it may make sense to just go that route and avoid the inspection, since there is only a $40 difference between what I'd have to pay if CarMax purchased it versus what I'd have to pay if I turned it in...assuming my car had no wear/tear fees. My car is in excellent shape and I'm 6,000 miles below, but being a shorty, my wheels have seen a curb or two, which have caused scrapes along the outside of the rims. Although I have the $500 toward wear and tear, I do not want to get hit with a $1,000 bill for the wheels. CarMax said they were in good shape but someone noted on another thread that Infiniti is a bit meticulous at inspection so they may disagree.

Does anyone know if I take my car in for inspection, if there are fixes that are required, if they bill me then or if I walk away just knowing what I'll have to either fix or be charged when I turn the car in?

Oh and if I went with CarMax, are there any hidden fees (like tax or penalties) from either CarMax or Infiniti??

Ugh! I just wish I would have gotten $25K and this would be a moot point.

Thanks guys...and gals! :D
 

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Don't know if I can be of much help but those inspections really vary by dealer. Some are very lenient while others are very strict. Its kind of a gamble. It helps if you have a really good relationship with the dealership. Regardless, best of luck!!
 

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Discussion Starter · #3 ·
Don't know if I can be of much help but those inspections really vary by dealer. Some are very lenient while others are very strict. Its kind of a gamble. It helps if you have a really good relationship with the dealership. Regardless, best of luck!!
Thank you!! I just spoke with my sales rep and told him what CarMax is offering and asked that he speak with his finance manager to get figures on if I sold it to CarMax what my final cost to Infiniti will be (whether it's residual plus disposition fee or possibly better deal) as well as what my cost will be to turn it in (assuming no wear/tear fees). That will help me decide if I even bother taking it to the inspection. He wasn't sure if I would have to pay the disposition fee if I sold the car to CarMax so he is also checking on that.
 

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You could try negotiating with the dealer and seeing if they are willing to help you out. You are a loyal Infiniti customer (tell them that)

It would seem more convenient to just return the lease at Infiniti and get a Q50 at the same dealer and not have to deal with carmax. I'm sure they will understand that.

If they nail you with fines because of the curbed rims just tell them you are going to go through carmax instead since it makes more sense financially. Try to convince them not to.
 

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Discussion Starter · #5 ·
You could try negotiating with the dealer and seeing if they are willing to help you out. You are a loyal Infiniti customer (tell them that)

It would seem more convenient to just return the lease at Infiniti and get a Q50 at the same dealer and not have to deal with carmax. I'm sure they will understand that.

If they nail you with fines because of the curbed rims just tell them you are going to go through carmax instead since it makes more sense financially. Try to convince them not to.
I "think" that is what he will try to do for me with speaking with the Finance Manager. Of course, I had him work with his Sales Manager regarding what my car would be worth (residually speaking) to see if there was equity to use toward the Q50. He said without seeing the car/condition in person, they would give a broad range of $19-$21K. I told him that even CarMax has it worth much more than that as they'd buy it for $24K and that according to them, my residual (worth of the car) is way too high. So we shall see! Maybe I should use that information to tell them that I should pay the estimated value that they gave me (i.e., $20K) and then use the extra $4K CarMax gives me as a down payment!!! hahaha Wonder if that would work!
 

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Thank you!! I just spoke with my sales rep and told him what CarMax is offering and asked that he speak with his finance manager to get figures on if I sold it to CarMax what my final cost to Infiniti will be (whether it's residual plus disposition fee or possibly better deal) as well as what my cost will be to turn it in (assuming no wear/tear fees). That will help me decide if I even bother taking it to the inspection. He wasn't sure if I would have to pay the disposition fee if I sold the car to CarMax so he is also checking on that.
There is no need to hear back on whatever they come back & tell you about the disposition fee. Without even reading your lease agreement, I can assure you that the CarMax transaction has absolutely no bearing on the transaction with Infiniti. Infiniti says that there is a $395 if you choose not to purchase the car (and choose not to transfer directly into another lease); if you sell it to CarMax, then they will forward a check to Infiniti (for the agreed-upon selling price) in lieu of you purchasing the car, so that they can assume the title. In other words, just look at it as CarMax handing you a check to purchase the vehicle outright from Infiniti, so that they can pick up the title. Infiniti doesn't care how it gets its money--whether the check is written from you or CarMax. So, you will not have to pay a disposition fee under these terms. Keep in mind, however, that some Infiniti lease agreements carry a $300 "purchase option fee" that gets tacked on if you choose to buy it, so that's a whole 'nother consideration. Read over your lease agreement to see if this purchase option fee is listed; I'd bet it is, which would essentially offset your savings from the disposition fee.
 

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Discussion Starter · #7 ·
There is no need to hear back on whatever they come back & tell you about the disposition fee. Without even reading your lease agreement, I can assure you that the CarMax transaction has absolutely no bearing on the transaction with Infiniti. Infiniti says that there is a $395 if you choose not to purchase the car (and choose not to transfer directly into another lease); if you sell it to CarMax, then they will forward a check to Infiniti (for the agreed-upon selling price) in lieu of you purchasing the car, so that they can assume the title. In other words, just look at it as CarMax handing you a check to purchase the vehicle outright from Infiniti, so that they can pick up the title. Infiniti doesn't care how it gets its money--whether the check is written from you or CarMax. So, you will not have to pay a disposition fee under these terms. Keep in mind, however, that some Infiniti lease agreements carry a $300 "purchase option fee" that gets tacked on if you choose to buy it, so that's a whole 'nother consideration. Read over your lease agreement to see if this purchase option fee is listed; I'd bet it is, which would essentially offset your savings from the disposition fee.
Great insight! Thank you! I just looked over my lease agreement and there is a Purchase Option fee but it is only $150. But now that does factor in with everything. Sooo let me ask you something else, is it at all feasible to assume that if Infiniti negotiates with me on the residual to be say, $22K instead of the current $24,435, and CarMax offered me $24K for it, would CarMax cut a check to Infiniti for $22K and then me a check for the other $2K, or at a minimum Infiniti would use the extra $2K toward my Q50??? Likely a longshot but I gotta ask anyway!
 

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Discussion Starter · #8 ·
There is no need to hear back on whatever they come back & tell you about the disposition fee. Without even reading your lease agreement, I can assure you that the CarMax transaction has absolutely no bearing on the transaction with Infiniti. Infiniti says that there is a $395 if you choose not to purchase the car (and choose not to transfer directly into another lease); if you sell it to CarMax, then they will forward a check to Infiniti (for the agreed-upon selling price) in lieu of you purchasing the car, so that they can assume the title. In other words, just look at it as CarMax handing you a check to purchase the vehicle outright from Infiniti, so that they can pick up the title. Infiniti doesn't care how it gets its money--whether the check is written from you or CarMax. So, you will not have to pay a disposition fee under these terms. Keep in mind, however, that some Infiniti lease agreements carry a $300 "purchase option fee" that gets tacked on if you choose to buy it, so that's a whole 'nother consideration. Read over your lease agreement to see if this purchase option fee is listed; I'd bet it is, which would essentially offset your savings from the disposition fee.
OK, just read the fine print on my contract as well. It states, "You have the option to purchase this vehicle, "as is" from the originating dealer, or other location we specify, in cash for the Purchase Option Price, plus any official fees and taxes, vehicle inspection costs required in connection with the purchase, and a Purchase Option Fee of $150, which fees, taxes and cost are not included in the Purchase Option Price agreed to in Section 6. If you purchase the Vehicle at the end of the lease term, the Purchase Option Price will be the Residual Value shown in Section 5,d). If you purchase the Vehicle before the end of the lease term, the Purchase Option Price will be Adjusted Lease Balance disclosed in Section 13 c). In either case, you must also pay other amounts due under this lease at the time of purchase."

Ahhhhhhhhh so is this saying that in addition to the $150 Purchase Option Fee that I will be charged additional fees, taxes and costs???

Lord, I think purchasing the Q50 versus leasing it is the way I better go this time around. WAY too much in leasing.
 

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Great insight! Thank you! I just looked over my lease agreement and there is a Purchase Option fee but it is only $150. But now that does factor in with everything. Sooo let me ask you something else, is it at all feasible to assume that if Infiniti negotiates with me on the residual to be say, $22K instead of the current $24,435, and CarMax offered me $24K for it, would CarMax cut a check to Infiniti for $22K and then me a check for the other $2K, or at a minimum Infiniti would use the extra $2K toward my Q50??? Likely a longshot but I gotta ask anyway!
Well, you should know that the residual value of a car is set by the manufacturer, NOT the dealer. This is one of the primary factors in lease incentives, as Infiniti's financing arm will inflate the residuals to offer more attractive terms. As such, there is no possible negotiation on Infiniti's set residuals. The dealer can negotiate sales price & trade-in values, but not residuals. To give you an idea about CarMax's role, if they offer you a higher price than the lease buyout value, then any remaining balance goes directly to you. If their offer is less (as with your case), then you will be responsible for making up that difference out of pocket to Infiniti. Quite honestly, from a distance, it sounds like your best bet will be to return your car to Infiniti under lease fulfillment & negotiate your way into the Q50 as best as you can--using your outgoing lease as potential leverage to maybe get some form of loyalty cash or at the very least, you will avoid the disposition fees (if you are gonna lease the Q50).
 

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Discussion Starter · #10 ·
Well, you should know that the residual value of a car is set by the manufacturer, NOT the dealer. This is one of the primary factors in lease incentives, as Infiniti's financing arm will inflate the residuals to offer more attractive terms. As such, there is no possible negotiation on Infiniti's set residuals. The dealer can negotiate sales price & trade-in values, but not residuals. To give you an idea about CarMax's role, if they offer you a higher price than the lease buyout value, then any remaining balance goes directly to you. If their offer is less (as with your case), then you will be responsible for making up that difference out of pocket to Infiniti. Quite honestly, from a distance, it sounds like your best bet will be to return your car to Infiniti under lease fulfillment & negotiate your way into the Q50 as best as you can--using your outgoing lease as potential leverage to maybe get some form of loyalty cash or at the very least, you will avoid the disposition fees (if you are gonna lease the Q50).
Good information again! Thank you so much!!! My only fear in turning in the car is the wear/tear. Although I have an extra 6,000 miles left allocated to me, I worry about my wheels. I guess I should just wait until the 5th when I can take it in for an inspection (60 days prior to due date) and see what they say. If they end up saying it will cost me over and above the $500 I have toward the wear/tear, I may need to weigh the options of turning it in versus CarMax again.

One last question. Umm OK, strike the "last" because I'm sure to have additional questions!! You mentioned that I could avoid the disposition fee if I lease again. So although it says I will have to pay the disposition fee if I don't purchase the Q50, that I won't have to pay it if I lease again? What if I buy??

Oh and (see, told you I'd have more questions! ha), will I lose the loyalty cash if I purchase the Q50 versus leasing it?

Thanks again!
 

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Good information again! Thank you so much!!! My only fear in turning in the car is the wear/tear. Although I have an extra 6,000 miles left allocated to me, I worry about my wheels. I guess I should just wait until the 5th when I can take it in for an inspection (60 days prior to due date) and see what they say. If they end up saying it will cost me over and above the $500 I have toward the wear/tear, I may need to weigh the options of turning it in versus CarMax again.

One last question. Umm OK, strike the "last" because I'm sure to have additional questions!! You mentioned that I could avoid the disposition fee if I lease again. So although it says I will have to pay the disposition fee if I don't purchase the Q50, that I won't have to pay it if I lease again? What if I buy??

Oh and (see, told you I'd have more questions! ha), will I lose the loyalty cash if I purchase the Q50 versus leasing it?

Thanks again!
Not a problem. First, the disposition fee is not charged to you so long as you take lease inception of another Infiniti car when you turn in your current lease; it's only charged to you if you turn in the car & walk away from the lot with nothing else. That fee, in my opinion, serves no purpose other than to provide some form of incentive for people to lease a new car. On the other hand, if you buy instead of signing a new lease, then you will only be liable for the Purchase Option Fee (in addition to the residual value listed on your contract). Keep in mind, though, that many states (particularly the states that charge tax on lease payments, instead of upfront) will charge you sales tax on the purchase price of the car as it is generally treated as a separate transaction. So, several considerations with lease buyouts indeed!

With loyalty cash, as long as it is being offered on the Q50, then you will definitely be able to get it if you buy the new car. It's basically a reward to customers for sticking with the brand & not defecting to a competitor.
 

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Discussion Starter · #12 ·
Not a problem. First, the disposition fee is not charged to you so long as you take lease inception of another Infiniti car when you turn in your current lease; it's only charged to you if you turn in the car & walk away from the lot with nothing else. That fee, in my opinion, serves no purpose other than to provide some form of incentive for people to lease a new car. On the other hand, if you buy instead of signing a new lease, then you will only be liable for the Purchase Option Fee (in addition to the residual value listed on your contract). Keep in mind, though, that many states (particularly the states that charge tax on lease payments, instead of upfront) will charge you sales tax on the purchase price of the car as it is generally treated as a separate transaction. So, several considerations with lease buyouts indeed!

With loyalty cash, as long as it is being offered on the Q50, then you will definitely be able to get it if you buy the new car. It's basically a reward to customers for sticking with the brand & not defecting to a competitor.
Don't kill me but one follow-up question, or rather need for clarification: you stated that if I buy instead of signing a new lease, I will be liable for the Purchase Option Fee. Did you mean if I buy a new Q50 or my current car. At this point I will be either leasing or buying the Q50. I'm leaning toward purchasing but want to make the best financial decision I can. I also happen to work for a bank (corporate offices) so I will have the ability to get an interest rate (with my credit) of under 2% if I buy. Not sure that will be enough of a difference to buy over lease but it is a plus.
 

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Don't kill me but one follow-up question, or rather need for clarification: you stated that if I buy instead of signing a new lease, I will be liable for the Purchase Option Fee. Did you mean if I buy a new Q50 or my current car. At this point I will be either leasing or buying the Q50. I'm leaning toward purchasing but want to make the best financial decision I can. I also happen to work for a bank (corporate offices) so I will have the ability to get an interest rate (with my credit) of under 2% if I buy. Not sure that will be enough of a difference to buy over lease but it is a plus.
I meant if you elect to buy your current car instead of turning it back in, then you will have to pay the Purchase Option fee, unless somehow you get the dealer to eat it for you. If you take the other option available to you of simply turning the car back in at the end of your lease, then you will be on the hook for the Disposition fee only--regardless if you buy or lease the Q50. Again, in this case you may be able to negotiate with your dealer to eat the disposition fee in exchange for you taking a Q50 off their hands. They aren't required by any means to do so, but it's worth a shot.
 

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Discussion Starter · #15 ·
Thanks to you both!! Great help!! Don't hold me to this, but......that's all the questions I have...for now! Ha
 

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Discussion Starter · #17 ·
you need to separate the two transactions, doing so gives you better leverage in buying Q50
Wait, separate the turn in and the purchase/lease of the Q50?? How,would at better my deal? I thought it would help as I'd have leverage and loyalty credit. Could you please explain further?
 

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I've read most of your posts. not all of them. Bottom line. Just use the current pull-ahead program. You'll get out of your remaining payments, get forgiveness on some of the damage, and get a q50. If Carmax were giving you more than your payoff (which, by the way is different from your residual), then it would make sense to separate them and treat as different deals.

If you were my customer I'd tell you just that. We'll basically get you out of your lease for $0 - or almost zero, and you lease a new Q50 like anybody else. No worrying about payoff/residual/disposition/paperwork, etc.
 

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Discussion Starter · #19 ·
I've read most of your posts. not all of them. Bottom line. Just use the current pull-ahead program. You'll get out of your remaining payments, get forgiveness on some of the damage, and get a q50. If Carmax were giving you more than your payoff (which, by the way is different from your residual), then it would make sense to separate them and treat as different deals.

If you were my customer I'd tell you just that. We'll basically get you out of your lease for $0 - or almost zero, and you lease a new Q50 like anybody else. No worrying about payoff/residual/disposition/paperwork, etc.
Ahhhhhhh! Thanks for the input from a sales rep! Unfortunately I won't be able to take advantage of the pull forward because my car is due to be turned in on September 6th and the soonest I can get a car at my dealership is mid August...if they have mine or a same configuration. Boo!

So how do they determine payoff amount since that is different than residual? Man I shouldn't have told my dealer what CarMax offered just in case payoff was less.

Also, you stated that I wouldn't have to worry with disposition, etc fees if I lease in pull ahead, what if I bought the Q50???

Thanks!
 
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