Infiniti Loyalty Cash

[stlgasman]

My M35x lease is ending soon. I just received a postcard outlining a loyalty cash offer. Where does the money come from? Does the dealer participate in this offer? In other words do I negotiate my best deal and get another $3000 off or will it wind up being less?

[M35 Sport]

I'm not sure but I think it will all depend on the dealer. How much is the loyalty cash offer?

[ArbitrageMan]

I dont know, but Im going to do some rambling...

I think the question you're asking is what price should you pay for the car. According to edmunds, these cars are are selling at invoice. I (totally my opinion) would see what they say, then offer invoice minus the loyalty cash amount. Tell them you're aware of what these cars are selling for used (which is about 40% of new), and that you're considering looking for a used one instead of a new one.

Also I dont know if you've looked into what lease are now, but they're not good. The current APRIL MF rate is .00033 for current M35 owners, which is good, but the residual is 44% for 15K a year. Compare that to 55% residual value for a 535i with 15K a year.

When does your lease end?

[stlgasman]

They are offering $3000 in "owner loyalty" but sometimes these offers require the dealer to "kick in". Therefore, getting invoice minus $3000 becomes unlikely. You are correct, the residual values are much worse than they were two years ago. The resale value experience is affecting the lease rates. My lease is up in June. The residual on my 27 month lease was 67%.

[palincal]

The auction prices are way below the residual value. Even after $3K discount you would be better off letting the car go. A similar used M35x would be much cheaper on the open market and even cheaper at auctions.

Try contacting Infiniti and make an offer just above the auction prices. I heard they do not entertain such offers but rather spend the time and money going thru the auction process and sell the car for lower price.