Lease offer from my friend

[Corporate Thug]

A good buddy of mine is looking to save some $ so he offered for me to take over his payments:

Car: 2010 g37 Sedan, Auto, Fully Loaded
Payment with taxes: $399; $500 down
Mileage: 10k/year (he's had to car for exactly 1 year and put 8k miles on it, so it averages to 11k for the remaining 2 years).
Residual: 23k

What do you all think? I figure I'll easily be able to sell the car for at or more than the 23k residual if I chose to.

 

[Doppel]

What do you all think? I figure I'll easily be able to sell the car for at or more than the 23k residual if I chose to.

You sure? I can get a certified 2008 G35 X Sedan from a dealership now for $23,100. You resell that you have to buy it first including full sales tax.

If you get the lease look at it as two years of car for $400. I think it's a mistake seeing it as a potential money maker. Otherwise the price is ok. A new G37 sedan lease is $380/month but would require a little cap reduction. I'd tell your friend no $500 down, he eats that and you take over the payments.

 

[The-Noid]

www.leasetrader.com Look at comparables. It is around fair compared to what some have sold for. I would skip the $500 down and be good.

 

[Corporate Thug]

You sure? I can get a certified 2008 G35 X Sedan from a dealership now for $23,100. You resell that you have to buy it first including full sales tax.

If you get the lease look at it as two years of car for $400. I think it's a mistake seeing it as a potential money maker. Otherwise the price is ok. A new G37 sedan lease is $380/month but would require a little cap reduction. I'd tell your friend no $500 down, he eats that and you take over the payments.

Pretty sure. The fact that this is a 37 AND will likely have no more than 30k miles makes me think that I can get AT LEAST the residual -- if it doesn't look good, I can always choose not to buy it.

I can talk him into waiving the $500 but since he put 2k down, I wanna help him out. He helped buy a house for his parents and now he wants to move out and get a modest place for himself so I'll sleep easier knowing that I helped him out rather than negotiated an extra $500.

 

[sjwaste]

Don't you have as much law school debt as I do? We both know the answer to this - drive a Civic and pay Sallie Mae Also, ignore the fact that I just bought a new Outback.

Otherwise, it seems like a decent deal - no better or worse than you'd get, on average, from leasetrader it seems. The $500 down is probably making the deal a little below average, but it seems like you have a good reason for not pushing back on that. Depends on how bad you want to drive a G37.

What else does $400/mo get you these days, and do you like those cars better?

 

[Corporate Thug]

Don't you have as much law school debt as I do? We both know the answer to this - drive a Civic and pay Sallie Mae Also, ignore the fact that I just bought a new Outback.

Otherwise, it seems like a decent deal - no better or worse than you'd get, on average, from leasetrader it seems. The $500 down is probably making the deal a little below average, but it seems like you have a good reason for not pushing back on that. Depends on how bad you want to drive a G37.

What else does $400/mo get you these days, and do you like those cars better?

The lease trader options only have 2 within a 200 mile radius of me (both 09, not as nicely equipped.) One is asking for $499/the other $430.

I do have law school debt but compared to my current $200/mo payment, I'm not really breaking the bank.

 

[manimal]

I picked up a 08 G35X with premium for less than 16k out the door. 70k miles yes but these things are reliable as a civic.

 

[sjwaste]

The lease trader options only have 2 within a 200 mile radius of me (both 09, not as nicely equipped.) One is asking for $499/the other $430.

I do have law school debt but compared to my current $200/mo payment, I'm not really breaking the bank.

I was just giving you a hard time about the law school debt - if we can't laugh at it, who can?

If this is the car you want, this sounds like a pretty good deal compared to what's available around you. Especially since your friend is low on the mileage. I wouldn't do this to try and profit off of the sale at the end, but if you just want to drive this car for a couple of years, it's obviously the best deal in front of you.

The 23k residual could be an added bonus, so treat it as such if it works out that way. I'd advise you not to count on it and make the decision based on whether you'd be happy driving this particular car at this particular price, and if so, go for it and have fun.