Car Chat General discussion about Lexus, other auto manufacturers and automotive news.

LEXUS lease option...

Thread Tools
 
Search this Thread
 
Old 02-26-15, 09:22 PM
  #1  
vietboy1st
Rookie
Thread Starter
 
vietboy1st's Avatar
 
Join Date: Aug 2013
Location: MA
Posts: 60
Likes: 0
Received 0 Likes on 0 Posts
Question LEXUS lease option...

Hi, can you leasing owners explain to me the benefit of leasing ? Do i have to pay my own insurance for it and what else do i need to look for? small things like that.. i am a current owner of IS 250 2010.
Thank you
vietboy1st is offline  
Old 02-26-15, 10:35 PM
  #2  
pbm317
Lead Lap
 
pbm317's Avatar
 
Join Date: Apr 2002
Location: Virginia
Posts: 4,891
Received 12 Likes on 9 Posts
Default

First off yes you need insurance just like when you rent a car.

Benefits of leasing CAN include:

Always being in something new... so major issues could be covered under warranty

Knowing the exact value that the car will be in 36 months or whatever term your lease is. You are free to walk away from the car at that point (it could be worth less than your residual on the open market, but then that burden is on the bank)

Payments are generally less than what a 5 year loan payment would be for the car with a small downpayment. So in this line of thought, you can lease "more" car than you might be able to buy. Example, maybe you could lease a GS vs buy an IS. with similar monthly budget.

In some states, you then pay only sales tax on the monthly payment amount, not taxed on the full value of the car as a purchase would. Understand mileage limitations, and all associated fees (acquisition, disposal, etc)


When it comes to leasing, you need to understand the actual purchase price of the vehicle, the residual, money factor, and any available security deposit options.
pbm317 is offline  
Old 02-27-15, 03:00 AM
  #3  
Fizzboy7
Lexus Test Driver
 
Fizzboy7's Avatar
 
Join Date: Mar 2008
Location: California
Posts: 9,736
Received 170 Likes on 101 Posts
Default

pbm317 explains it well.

One should also discuss the negatives of leasing, which include: Never gain equity/ownership of the vessel, continually having to put down down payments every few years, restrictions on how many miles you can drive per year, and responsible for wear and tear.
Fizzboy7 is offline  
Old 02-27-15, 10:50 AM
  #4  
SC300Es
Pole Position
 
SC300Es's Avatar
 
Join Date: Sep 2002
Location: New York
Posts: 2,520
Received 64 Likes on 45 Posts
Default

Look at the sticky at the top of this forum.
SC300Es is offline  
Old 02-27-15, 04:02 PM
  #5  
rominl
exclusive matchup
Senior Moderator
iTrader: (4)
 
rominl's Avatar
 
Join Date: May 2002
Location: Lovely OC
Posts: 81,673
Received 190 Likes on 148 Posts
Default

of course don't forget the possibility of writing off the lease payments for those who can
rominl is offline  
Old 03-01-15, 07:07 PM
  #6  
vietboy1st
Rookie
Thread Starter
 
vietboy1st's Avatar
 
Join Date: Aug 2013
Location: MA
Posts: 60
Likes: 0
Received 0 Likes on 0 Posts
Question

Originally Posted by Fizzboy7
pbm317 explains it well.

One should also discuss the negatives of leasing, which include: Never gain equity/ownership of the vessel, continually having to put down down payments every few years, restrictions on how many miles you can drive per year, and responsible for wear and tear.
So there is a restriction for mileage?
What do you have to pay for wear and tear ?
vietboy1st is offline  
Old 03-01-15, 08:29 PM
  #7  
pbm317
Lead Lap
 
pbm317's Avatar
 
Join Date: Apr 2002
Location: Virginia
Posts: 4,891
Received 12 Likes on 9 Posts
Default

Originally Posted by vietboy1st
So there is a restriction for mileage?
What do you have to pay for wear and tear ?
Have you literally never looked into a lease before? Most are priced at either 10K, 12K or 15K miles per year. Most advertised are 10-12K.

Wear and tear will depend on the brand, if you re-up to lease another of the same brand, how well you take care of the car, etc.
pbm317 is offline  
Old 03-01-15, 09:25 PM
  #8  
Incendiary
Lexus Test Driver
 
Incendiary's Avatar
 
Join Date: Mar 2004
Location: MD
Posts: 1,509
Likes: 0
Received 0 Likes on 0 Posts
Default

I think you can write off payments if you finance a car as well, not just if you lease. Is that not right?
Incendiary is offline  
Old 03-01-15, 10:10 PM
  #9  
mmarshall
Lexus Fanatic
 
mmarshall's Avatar
 
Join Date: Oct 2003
Location: Virginia/D.C. suburbs
Posts: 91,422
Received 87 Likes on 86 Posts
Default

Originally Posted by Incendiary
I think you can write off payments if you finance a car as well, not just if you lease. Is that not right?
Welcome back. Haven't seen you post here for quite some time.
mmarshall is offline  
Old 03-02-15, 05:28 AM
  #10  
airgas1998
Driver
 
airgas1998's Avatar
 
Join Date: Feb 2015
Location: iowa
Posts: 165
Likes: 0
Received 0 Likes on 0 Posts
Default

Originally Posted by Incendiary
I think you can write off payments if you finance a car as well, not just if you lease. Is that not right?
yes, if you fall under the criteria....
airgas1998 is offline  
Old 03-02-15, 05:44 AM
  #11  
wasjr
Instructor
 
wasjr's Avatar
 
Join Date: Jan 2013
Location: TN
Posts: 1,032
Received 58 Likes on 46 Posts
Default

Originally Posted by Incendiary
I think you can write off payments if you finance a car as well, not just if you lease. Is that not right?
In a business situation, if you have financed the purchase of the vehicle you can only deduct the portion of the monthly payment that is the interest on the note, whereas the entire lease payment is deductible.
wasjr is offline  
Related Topics
Thread
Thread Starter
Forum
Replies
Last Post
Huiezzy
Car Chat
5
01-03-19 02:35 PM
dbs600
IS - 3rd Gen (2014-present)
8
10-03-13 04:58 PM
Therealman
IS - 3rd Gen (2014-present)
11
07-06-13 07:07 PM
DogLady
RX - 2nd Gen (2004-2009)
17
01-15-08 06:25 PM
archaic
Car Chat
7
07-28-05 09:57 AM



Quick Reply: LEXUS lease option...



All times are GMT -7. The time now is 07:49 AM.