Help me figure out whether I should lease or buy my NM Edition GS 450h?
04-17-06, 11:30 PM
#17
Originally Posted by lexuslover
it also depends on how long you want to keep your car. if you tend to trade in every 3-4 years, leasing might be a better option just because you don't end up paying sales tax on the entire car (and in CA you cannot get a sales tax deduction when you do a trade). i love having new cars and i am self employed which makes leasing attractive (our SC and GS are leased), but our RX is our "beater" and gets too much wear and tear to make leasing worthwhile. so that one was purchased outright, and at 50k miles and 3+ yrs old, i still love it and plan to keep it another 50k miles.
the reason your lease pymt is so high is that they are not giving you any kind of break on msrp, and you are paying a premium for the NM version. the residual is quite low, so the lease payment represents the "gap" between the resid and msrp that you cover in 36 months. like rominl, i got a nice deal on my SC since it was not a new model year, so i got about 7k off msrp. so in essence i am financing 7k less on the lease. the GS i only got 1200 off msrp since it was just released and therefore i am financing more on the lease even though the sticker price on the SC is much higher (65k vs. 58k). both have similar money factors (around 5% apr equivalent), but the GS is much more "expensive".
anyway, hope that helps somewhat. good luck in your decision, can't wait to see pics of your NM hybrid!!
the reason your lease pymt is so high is that they are not giving you any kind of break on msrp, and you are paying a premium for the NM version. the residual is quite low, so the lease payment represents the "gap" between the resid and msrp that you cover in 36 months. like rominl, i got a nice deal on my SC since it was not a new model year, so i got about 7k off msrp. so in essence i am financing 7k less on the lease. the GS i only got 1200 off msrp since it was just released and therefore i am financing more on the lease even though the sticker price on the SC is much higher (65k vs. 58k). both have similar money factors (around 5% apr equivalent), but the GS is much more "expensive".
anyway, hope that helps somewhat. good luck in your decision, can't wait to see pics of your NM hybrid!!
04-18-06, 12:23 AM
#18
MultiTasking Mom
Originally Posted by rominl
true on the tax, though right now it's a bit better coz' they allow you to write off the sales tax on your tax return. probably not as dramatic but still not bad i guess
)
04-18-06, 02:24 AM
#20
Originally Posted by criminalR1
well in my personal oppinion leasing just means you have a glorified rental-------it dont make any sens to shell out that much cash on something that you have to give back and worry about driving too much.
1) if you change cars every 3 yrs, which is no longer abnormal especially for people with money, leasing is sometimes more cost effective and less hassle. you drive, pay "half" the tax, 3 yrs later, drop off the keys and you get something new
2) in my case, by leasing the car with plans, for 3 yrs, and then buy out the car after that, i actually end up paying much less money than if i finance the car with the rate i was given back then.
04-18-06, 08:24 AM
#21
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Originally Posted by PoppFlyy
Call around and shop the numbers hard Nod. I did my deal at Lexus of Westminster thorugh the internet Dept. It was a real pleasure. Britanny Steele did my deal, and she was very kool, and a great salesperson. 
The service dept. at Westminster is great too. They have helped make me a very happy Lexus owner.
The service dept. at Westminster is great too. They have helped make me a very happy Lexus owner.
04-18-06, 09:34 AM
#22
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Thank you Popp. I've definitely been shopping the numbers VERY hard. So far, my bank has the best rate at about 5.5%
With your financing in hand, you should be able to drive a good deal. One last suggestion is to buy your car during the last 2 or 3 days of the month. At that point dealerships are focusing on pushing out units to meet higher bonus and commission thresholds rather than focusing on maxing their profit per unit. In general you'll get deals that you could'nt get at any other time of the month.Good luck Nod!!!
04-18-06, 04:32 PM
#23
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That residual on the lease is terrible. I'm curious what the money factor is as well - because those numbers do not seem to add up. Had I leased my 550 in December, with a 60% residual and a .00260 money factor I was at $1,175 a month on a $70K car.
Anyway, at $1,100 per month I think you are better off purchasing. You can still sell the car in a year or two and get a LOT of your money back. These gas prices are only making the value of your GS go up.
Anyway, at $1,100 per month I think you are better off purchasing. You can still sell the car in a year or two and get a LOT of your money back. These gas prices are only making the value of your GS go up.
04-18-06, 05:42 PM
#24
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I agree with you all on just buying the vehicle versus renting. I ran the numbers into an ammortization schedule and on a 5.5% Interest Rate, I can sell the car in a year or two and not owe more than what I'm hoping it'll be worth. Especially since it's a Neiman Marcus version. After 3 years, I'd only $30k. I think that I shouldn't have any problems getting more than $30k when the GS450h Neiman Marcus Edition is 3 years old. Thanks again and I'll be posting pictures once Lexus decides to stop holding my car at the Long Beach port.
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