TacoTaco

So I'm thinking of trading in my 3GS 06 GS300 for a CPO 350 4GS. From my understanding, I can lease a CPO and think I might go that route with my inability to commit to a vehicle for more than a few years.

Can someone please explain how a lease works so I dont go in there and look like a tool.

I know theres X amount of months at X amount miles but I hear a lot about residual value and other terms I've never had experience with.

Any input is greatly appreciated.

ECL

Leasing is complicated. With the many variables,it is easy for the dealer to deceive the buyer. Check out:

http://www.money-zine.com/Financial-...r/Car-Leasing/

SW17LS

Leasing a CPO isn't going to be any cheaper than just leasing a new one. The used car leasing market is all but gone...

As ECL said, leasing is very complicated and it is essential that you understand what you are doing.

A great site:

http://www.leaseguide.com/index2.htm

TacoTaco

Thanks guys. browsing the sites now. Appreciate the help.

SW17LS

No prob.

Be sure you REALLY understand it before talking to a dealer. Like I said, look new not used. Negotiate your best price first, then have them quote you a lease, ask the, the residual and the money factor so you can calculate the payments yourself to check them.

There's $1500 in loyalty cash on the GS right now...

dseag2

Typically the interest rates on a used car are higher than those on a new car, which can make the new car a better deal. Look at all your options.

SW17LS

It's not even the interest rates, lenders just don't want to lease used cars...LFS included.

TacoTaco

Whats a good price point to go in first. A few people have said to say $500 over invoice but not sure they'd bite with the popularity of the GS in Los Angeles.

ECL

I got quotes from two Southern California dealers for $500 UNDER invoice. My local dealer matched that price.

xyzstudio

i personally prefer lease cuz i dont like to put alot of down pay when i buy a car, however the different bt purchasing and leasing is bank fee on leasing and sales tax on purchasing (i might be wrong) also u need to pay attation on the time u lease ( money factor n residual value are the keys) u do pay sales tax when u leasing a car, but its only tax on the monthly payment, and at the end of leasing u still have option to purchase the car, in my case, my drive off was only $1500 ( tax, 1st and license registration fee are included ) my monthly payment is $590 tax included for 27 month 10000 mi per year. if u go with purchase , or 60 months my monthly will be more than $1000 with $1500 drive off ( interest is not inluded ) i rather have cash in my hand and do something with it.

faifai83

What are the following:
- Money Factor?
- MSRP?
- Selling Price?

xyzstudio

the MSRP are the window stick price when u go the show room the piece of paper they stick on the rear window shows the car with options.

the selling price are the price u actual pay for the car (in my case my 350f windows price are 583XX and selling pirce is 53XXX and the rebate i got is used as drive off.

and money factor is only apply on leasing a car, its cost-of-money finance rate which determines how much you'll pay in finance charges over the life of a lease. The higher the money factor, the higher your monthly payment and the more you'll pay in total finance charges. Therefore, when shopping for a lease, you'll want to look for the lowest money factor.

the money factor is the rate normally preset by lexus corp ( in this case). which determine is good time for lease or fiance the car.

in the end, the most important thing is the selling price ( or buyin price), however the lease u need to have good credit score above 675 i guess ( they lower the score since last year )

hope this helps