I am about to purchase my first Maxima- and I've never had car payments since I have paid off every car I've ever had. So- Im still debating on Lease vs Purchase- but, I'm wondering if you guys could tell me how much you pay a month, and moreso- what your interest rate is? I'm looking at the 2003 SEs- and just don't wanna go into the dealer blind without an idea of a standard payment range/rate...

Is there an interest rate that I should be shooting for? My credit score is decent, with no bad marks on it (I just have a lot out on it- but will be paid off when my truck is sold).

Feel free to email me off list if you don't want to disclose openly.

Thanks for opening my eyes, guys!
D

 

This is really too wide a question to accurately answer.

Information is missing, such as:


-Will the car be loaded or a more base model?
-How much do you plan to put down?
-How many miles do you put on a car (since leases limit you)?
-Credit score of 'decent' is pretty grey...lenders are more specific with actual ratings so we don't know 'how' decent.
-When you actually are looking at purchase/lease, what incentives are out there? Any dealer-specific offers?
-How long do you plan to finance or lease for?

Etc.

 

Ahh- yes, I suppose you are right.
1) The car will have- 2003 Maxima SE, dark gey/charcoal ext, dark coth int, sunroof (for now, until I learn of other options- but nothing major)
2) I plan on $0 down
3) I avg about 20k miles a year- granted I'll have to prepay those, or, get penalized- I think the tax break on leasing it for business will make up for it
4) Credit score is mid 600's- I will be throwing $17k at the credit cards as soon as my truck gets sold- so that score will come up- but unfortunately, not before I purchase/lease the new. UNLESS- I can rent a car for a week or two while my payments are made, and see if the dealer can get a rapid credit score- will this matter? Do I need to go through that process? Can I get a lease with that score?
5)- I'd like to do this next week sometime- I have NO IDEA what insentives are out now, let alone what incentives really are (I know what they are, just don't know examples of what they are- are these like cash rebates, lower interest rates, etc?)
6) Depending on payment amounts, I'd like to have a 24 or 36 month contract.

Hope this helps!
D

 

You forgot

-how much is it a concern for you on the car's residual/resale value.

 

After banks got flooded with post-lease cars and trucks on their lots, the incentives to lease were drastically cut. Right now, the benefits of buying are much better than leasing.

 

Hence my use of the 'Etc.'

Yep, there are a bunch of considerations, not all of which two people will have the same priorities on, or even care.

 

ooh- can you guys explain both of these to me? from what I understand- I never own a leased car- and since I pretty much will trade it in/buy a new one in 3 years, isn't it smarter to lease, since Im only paying on the depreciated value of the car, and not the entire amount? You figure that I'll never see the end of the term when I actually OWN a purchased car bc I will have sold it/got a new one by then. I dunno- explain the residual/resale thing as applied to Maximas if you don't mind, please- Im not sure if I get that...
Thanks!
D

 

Can you explain what these benefits might be- give me examples of what Im looking at here... As explained earlier- for me, the lower payments are better- since my money is better tied up elsewhere, and I dont ever plan on owning a car longer than 3 years...
Thanks
D

 

the joys of search engines...

this might be of some general help...

http://www.gottrouble.com/legal/cons..._buying_7.html

 

LOL- I've already been reading up on this stuff- but didnt find anything that talked about residual- thanks for the info...

BTW- do you guys have MSN or Yahoo Messenger? Would you mind if I threw you on mine so I can ask some quick questions- since you guys obviously know a ton about the maximas... I promise I wont annoy you- I'll keep it short and sweet...
What's your email/contact info and on either MSN or Yahoo?
Thanks!
D

 

Nope, not through our office server.

 

LOL- I knew what residual was this whole time, just didnt know it was called that. LOL...

How well do Maximas hold their value? In 3 years, what can I expect it to be worth?
Thanks
D

 

Again, do research. Use the search function here and other webites like kbb.com or edmunds.com.

We can give specific answers to some questions, but other topics are easily found and/or already beaten to death.

 

You got it- will hit that up now.
Stupid question here- but, is it possible to lease an older/used car? IE- leasing a 2002, 2001, or even a 2000 model? Or are lease's just for 2003/new model cars?
Thanks
D

 

Depends on the dealer. I was once offered the opportunity to lease a well-used 80's 928. I doubt an official Nissan dealership is going to give you that option, though.

 

do you plan on modding or doing any upgrades to this vehicle? if so a leased car may not be for you.

 

I don't want to flame but s$%t you've got $17k in credit card debt and you're looking to buy or lease a 26-30k automobile with zero cash out of pocket??? Unless you rake in enough to cover double or triple payments on your cards (so that you can pay them off in your lifetime) plus a new $400+ /month car payment, You gonna need a lawyer for bankruptcy court. Get yourself straight first then join us. I hate to see people get in over their heads and lose everything. Just my $.02!!

 

Thanks for the advice, but, to be honest, I DO take slight offense to this post. You have NO IDEA of what my financial situation is right now- and are in no position to suggest that. Also, what do you mean, 'Join Us'- can I not be a part of this 'group' if I own a later model? can I not post or ask questions about Maximas if I don't yet own one? How am I to learn about them, and whether or not I want to own one if I can't read/learn about them first?

Now, looking from your point of view, I see what you're saying. Again, my debt is getting paid off with selling my truck (which is paid for) and am also selling my house right now- which I have a decent amount of equity in. Getting a new car loan, believe it or not, is going to help my credit score. I could just as easily take the 17k from selling my truck, purchase a used 2000/2001 maxima and completely pay that off, and have some left over to throw at the debt. But- my financial advisor says to get a new loan, and pay off the old debts- it will jack up my credit score higher instead of going the other route. In 2 months, I will be debt free either way- except for the car loan (as soon as I get my check from escrow).

Does that make sense? I appreciate your suggestions, and trust me, my financial situation is MUCH MORE important than a new car! Which is why I am wondering about leasing a used car instead- I might just purchase it, who knows. Seems to me that the lease is the way to go for me since I can use the tax benefits on my business.

I don't know- Im still trying to figure out my options here, and see what's the best route for me to take...
Thanks for the concern,
D

 

Well, whereas it is possible to do that, people tend to discourge it. The reason is that when you are leasing a car you are paying for the depreciation. The majority of depriciation on a car is within the first 3 years. Now, if you go to lease a car that is 3 or 4 years old, you do not get the benifit of the first 3 years of depriciation and will be actually paying more than the car is worth.

If the cost is a concern, perhaps you can look at purchasing a used one. They seem to be obtainable for considerably lower than new (example - people are getting about $10k less for their Maximas on trade in). So say you were able to find a nice Maxima for say $18,000. You can put down what you could afford (sounds like $10,000 would not be too much once you sell the truck) and finance the rest. Nissan was offering 0.9% APR on 3 year loans. My payments would have been too high so I decided to take a 5 year loan for 4.9% (I don't know my credit score, but mine credit history is excellent).

You can also take advantage of the business write off (as I am) by purchasing the car yourself and setting up a leasing agreement with your company (assuming you are the owner). That way, you can make the payments tax free (for say the first 3 years).

My last car (Durango - truck actually) was my first lease and I will say this:

- When I got a ding or a scratch I didn't freak out.
- I beat the crap out of it because I knew I was turning it in.
- I did take care of the appearance and mantainance (which was included in my service argreement for $500)

When I own:

- I freak out over every little scratch/ding and don't want to park it anywhere.
- I treat it very well.
- I'm not forced into more payments if I don't want to.

Just something to think about.

 

hehe- I just re-read my post- I apologize for any attitude that may have come across with... I read your post again, and see what you are saying.
Again, I apologize...
D

 

my car is a lease....I'm modding the crap out of it. Never hindered my other leases...96 stang GT, 98 GSR.
Especially if you trade the car in before the lease is up, which I've done on 3 of my cars.
98 Wrangler
98 GSR
01 Exploder Sport

 

I thought you were locked into a lease for the term?

 

You're right I dont your finances but I do remember when I and a few of my college buddies were in the same boat. I can honestly say that paying on a mountain of debt while trying to enjoy your new toy just plain sucks!!! When I said "join us" I meant in the sense of being able to enjoy your ride and modding it without worrying about debt! I say sell your truck and get a sweet 2k3 with a six speed and then you can fly buy my 2k2 Auto and give me the international sign for F*$% Off!!! LOL LOL LOL

 

Nope. If you can work with a dealer who will pay off the lease company, they will take the car off your hands. Did this with my '93 Prelude lease when I purchased my Ram. Even weirder was that a few weeks later, I actually got the 'lease disposal fee' refunded to me from AHF.

 

ahh- ok- that TOTALLY makes sense. So, maybe Im back to purchasing a used vehicle- maybe even a 2000/2001 model. MAYBE even a 2k2- we'll see. Now, that being said- can you explain what you meant by saying purchase a used one, and setup a lease agreement with my company? I DO own the company- would my company purchase it from me, and I lease it from them? Im not sure what you mean or how this would work.
ALSO- a dealer just told me that even if I purchase, I can still write off taxes on it- it's not just if I lease the thing... is this true?

 

You have to watch the rates for used car purchases...they are rarely as attractive as the incentive offers of .9-4.9%.

 

LOL... if I bought a 2k3 with my truck money Im still in deep debt... and I drove a manual for 7 years- have ZERO desire to do that again, it has to be auto for me... too much city driving here.

But you're right- maybe I should just purchase a used 2k-2k2 if possible for a decent price, get a loan on it, pay off the other debt, and still have payments cheap enough to enjoy the ride, mod it if I want, and not have a HUGE amount of debt... especially if I can write off for business expenses. Yeah, I think that the custom sound system is REQUIRED for my business- driving all around town, don't you? hehehe

 

Is there a common place to check out incentives? Are you saying htere's no incentives on used cars? Do they outweigh the price of buying a new one WITH incentives?
Thanks
D

 

here's what i did, worked out great.

leased at first, 36 mo, 36k miles, got a better monthly payment that way (better than 2 yr). leased it for 14 months, while the value declined. watched my lease buyout amount and the interest rates. when the lease buyout hit an amount i liked, i went it an bought out the lease. at 14 months, i already had 30k miles on it, so i couldn't have finished the lease anyway. it basically works out to the equivalent of financing for 6 years, which usually gives you a sucky rate. but this way my payments were never over $380.

might work for you, too.

 

Buy a slighly used one and let someone else take the $5000+ depreciation hit.

Also, you might wait till the 2004 Max comes out (March?). They will be discounting 2003 models heavily then.
Late last fall, they were knocking $5000 off new 2002 models, with VERY low interest. Also, don't get a loan at the dealer. Go to your bank or credit union and get a pre-approved credit line. You will get a better rate that way, and you can bargain better with dealer.

Dealers get their money one way or the other: Higher loan interest rate or length of loan, trade in rip-off, or higher sticker price. Or They B.S you into bending over one way or the other.

Nissan dealers were real hungry last year. Don't know about right now though.

 

here's what i did, worked out great.

leased at first, 36 mo, 36k miles, got a better monthly payment that way (better than 2 yr). leased it for 14 months, while the value declined. watched my lease buyout amount and the interest rates. when the lease buyout hit an amount i liked, i went it an bought out the lease. at 14 months, i already had 30k miles on it, so i couldn't have finished the lease anyway. it basically works out to the equivalent of financing for 6 years, which usually gives you a sucky rate. but this way my payments were never over $380.

might work for you, too.

 

but how did you buy it out? Come with another loan from a lender or just paid it off yourself? Did they give you a new car rate (since you are the original owner) or come at it with a used rate?

 

Ok, here goes:

If you were to lease a car through your company it would go like this:

1) Make income
2) Pay lease payment to bank
3) Pay taxes
4) Pay salery (let's assume you are the only employee)

So what this means is that you are now paying for your car tax free, and of course reporting personal mileage as income on your personal taxes (Imputed Income).

Ok, so now if you buy. You can buy through the company, but that will be messy and you might have trouble getting aproved because your personal credit will be better than the company credit if you have never taken out a loan:

If you were to buy it personally

1) Make income
2) Pay lease payment to YOU (YOU are now the bank)
3) Pay taxes
4) Pay salery
5) Pay car payment

Now even though you are paying the car payment AFTER taxes, you are reimbursing yourself PRE tax. Basically, you just set up a lease agreement with the company and you (officer of the corporation).

My accountant told me to do this (I'm no accountant) but he also mentioned to make the payments like $50 less or something. Now just like a leasing company, once the term is up you get the car back. If you try and make your company pay MORE than the car payment is that would have to be declaired as income on your personal taxes.

Again, please check with your accountant! My guy is pretty good (when I can get him on the phone ) and would not do something that would throw us in jail.

Hope this helps!

 

OK- got one last stupid question here-

Does leasing a car weigh on your credit like a purchase loan? IE- if I lease, will my credit report show a loan for $25k on it?
thanks
D

 

I don't think it does. I think it looks good, just like making any car payment...as long as you're on time. They like to see that you're able to pay x amount of $$ for x amount of months. I could be wrong though, I haven't looked for a house or anything yet.

Getting rid of a leased car isn't too hard, as long as people want it, and most dealerships will buyout your lease just to get you into one of their cars. You just have to pay on the lease for awhile. It does allow you to drive a nicer car for less $$ up front. You can then argue that you can use the "Freed" up money to invest in something with a high interest payoff, like the stock market.

 

if u have a credit score of 700+ or real close to it...i think u may still be able to get 2.9% financing for up to 48 months. that's what i did.
i have the exact car ur looking for.
$24k driveoff price
$5000 down.
2.9% apr
$440/month for 48 months...not bad at all...(too bad my insurance is $350/month)

i live in georgia...i think geographic location may have some part in pricing, i'm not sure.
if ur in the area, go to troncalli nissan (ask for saf)...very cooperative and will get u the price u want.

 

AWESOME!

Check this out- a guy last night told me he bought his 2k2 Maxima from Hertz rental car- says its guranteed to have less than 30k miles- guaranteed to have 5k equity in the car, and comes with a 5 year warranty- he bought his 2k2 for $15k... Just an FYI- I'm DEFINITELY looking into that!

I think it sounds like a lease still looks like a line of credit/loan on your credit tho- reason being, if Im selling my truck to payoff/close other account for 17k worth, and now I open a new account for 24k worth, that doesn't help me out much... even if the monthly payments are cheaper on the lease rather than the cards- unless it doesn't hit your credit like that. I'll talk to a dealer tonight about it...

 

Bro, DO NOT GET A FORMER RENTAL CAR!!!!

Do a quick search here, and you'll find threads related to this. Those cars are abused like a ****, and despite the extended warranty, you do NOT want to take that car.

Not sure about how lease reflects on your credit status--I've never leased. In my opinion, leasing is good for the following only:

1) If you want to drive a really nice car, but can't technically afford it, and/or
2) you like to change cars every 2-3 years, and/or
3) you don't put a lot of miles on the car, and/or
4) you're not into modding, and/or
5) you have a ****load of money and don't really care!

Both the new and used markets are taking big hits right now due to the state of the economy, so you should be able to come out pretty well in either of them.

2003 Maximas are being discounted heavily by the dealerships (can get ~$5000 or even more off sticker for a fully loaded one). In addition, you may want to look for a slightly used 2002/3 in the private market. These cars take a big depreciation hit in the first few years, and you may be able to capitalize on someone's mistake of keeping the car for a very short time.

 

this isn't a cut and dry easy answer question.

My dad bought my mom a 2002 SE for $22,000 and put down $5,000 his payments are on a $17,000 loan.

I bought my 2003 SE for $28,000, and traded in a car that I was upside down on my $5,000...so I have a loan for $33,000.

That's nearly twice the payment!

They don't have leather, sunroof, bose or anything special (besides the vq35de)

I've got Leather, Meridian, Titanium, 6 speed)

good luck with your PURCHASE---don't lease

-vq

 

I just don't get the preoccupation with what a lease vs. purchase will look like to a credit report/rating.

I mean, crap...the credit rating will influence terms and rates on the financing of the vehicle, but the acquisition of the vehicle will not be a magic wand and have that much impact on the report itself. The single best thing for a credit rating is payment history and timeliness, period.