Ziggy716

Well my transmission on my GS 350 sounds like it's failing so I'm going to dump it (See 3GS Forum GS350 LEAKING TRANSMISSION). I have never leased before and seek advice from seasoned vets here please. How do you negotiate with the devil?

Ziggy716

Oh, I forgot to post some numbers. My car as follows: 2007 GS 350 RWD NAV 2nd Owner
ODO 103300.
NADA value Clean Retail 18350, Trade Average 14375.
Lexus' offer thus far 12500

Ready? Here's the kicker at that offer I roll in 7K OUCH! I know bring the 5 gallon bucket of grease check.

Let me know. Thanks in advance really appreciate your time.

Ziggy

SW17LS

There is LOTS of info on this forum about leasing the 4GS. I mean, dozens of threads. I suggest a search, or even just a scroll down the front page...

LEXSTASY

If you roll in a negative equity close to $7k .... you'll be looking at a payment close to $900 month on a 24-27 month lease. Not a good option. You need a new idea LOL

elusive

iTrader: (2)

It's never a good idea to trade in your car to the dealer unless they're willing to give you blue book (rare but it can happen). Always sell it privately and then apply that money to your drive-off, payments, etc.
Search and you will find numerous topics regarding this.
Rule of thumb: Negotiate the selling price of the car before you mention you want to lease. Use truecar.com as a guide.

Schmexus

You owe $19,500 on a 07 with 100k+ miles?? How is that even possible??

bigblack06

iTrader: (20)

Yeah I wouldn't roll the negative amount into the lease as it will make your monthly payment pretty high.

Ziggy716

Well I got approved, at $968.00 a month including taxes.... LMFAO. Oh they threw in 1st months payment too. I have not acted on it yet as the service dept has not contacted me in regards to my car. So in other words I don't know the disposition of my car whether it's repairable or not. In the meanwhile im out town in their loaner a 2014 IS which is ok I guess. Maybe their hoping I throw in the towel on my car and have them deliver the new GS instead.

SW17LS

I mean...with $7k in negative equity that sounds about right...

gmanusmc

Yeah - I think a 2014 IS in lieu of an 07 GS would be ok with me too.

$7000 negative you say?

Ziggy716

Here's the deal;
1.contract date 3-15-14 16.total insurance
2.1st payment 4-15-14 17.WA tax credit schedule 2
3.lease institution LFSL 18. value added
4.buyer residence WA 19. capped fees 850.00
5. stock # 16190 20.total taxes (W) 4237.94
6.msrp 60157 adjusted cap cost 64586.65
7. mile penalty 21. security deposit 0
8. mile adjust 22.lic/reg upfront 150.00
9.residual%/amt 49.00% 29476.93 23.upfront fee 0
10. term 48 24. amount due at start 5100.00
11.lmf rate 0.00195 25.cash collected 3000.00
12.selling price 63157.00 26.working cash 5100.00
13. rebate 2100.00 27. menu selling NO
14.trade allow 16500.00 base monthly rental 914.87
15.cash cap reduction 1605.05 28.monthly use tax 8.900%
29. total monthly payment 996.29
30. one pa (Y)(N)/ amt N
15000 miles a year
By the way 2014 GSF AWD GRAY/FLAXEN NAV/Levinson
Honestly about 300.00 over budget per month. But an 8000.00 transmission on a 7 year old car worth peanuts does not compute either.
Thank you gentleman for your input greatly appreciated.
Ziggy

SW17LS

You're in a tough spot.

If you're going to put $8k into the transmission of the 07 , why not just pay the negative equity off, or enough to get it into your range?

48 month lease I see. Does a 36 month lease bring the payment back?

Ziggy716

Sorry I should be more clear the transmission I'm assuming is garbage thus my 8000.00. As far as 36 months have not asked yet. I have a phone appointment at 11 am we'll see.

bigblack06

iTrader: (20)

i think the 36 month lease will bring the price up, also make sure they didn't throw in maintenance package as they did that to my friend and he didn't notice.

SW17LS

I helped a friend of mine through a similar situation last year. Here's my thinking.

You're in a bad spot with the 07. This is why I dont love buying and financing pre owned cars. You owe so much more than its worth, I shudder to think how long that financing term is for, and how long it will be before it's paid down to what it's worth or paid off. Now you have a big upcoming repair.

Normally I would never advocate doing this, wrapping all that negative equity into a lease. But, assuming you have no gap insurance you're at a lot of risk, and doing this means the negative equity will be paid off during the lease term (I would really try and do 36 months) and you won't have the risk of loss with a total and the risk of cost of repair you do now.

I might do it. I would seriously consider doing it on a much cheaper car though to get the payment down to your budget. I would look at an IS, or even a no -luxury car, get that for 3 years and then come back to the GS once the slate is clean.