ghostpanda

I have a special order right now. i just put down a deposit and worked out my price before hand. i talked them down to about 3.7k below msrp. factored in taxes,titles and what not and have an agreed upon price that wont get higher, ill still try to get more off when i take delivery but if they try to make me pay more im going to walk. hopefully it comes in within the next 30days, its been 90 already.....

MiamiGuy28

Guys, I've always financed (purchased) my cars and I'm debating whether I should lease the 2014 IS350 F-Sport. The issue I have is I am in sales and do roughly 22k miles a year. Yea, a lot I know.

Two different sales guys at Lexus are pushing me to lease (15k annual limit) and promise to get me out before lease is up to avoid mile overage. They said I'll have negative equity if I exceeded my annual limit so my next lease will have a higher payment, but can be negotiated.

What's everybody's feedback on this? Anybody do a lot of mileage or have a similar situation and still leased? Is financing a better option. I just don't think forking $10k for a car is a smart investment/decision just to get a reasonable monthly payment. It's just not. I rather have that $10k in the market doing something for me.

It's a double edged sword. Thoughts?

Also, when leasing, negotiating the price of the car below MSRP is still vital correct, preferably below invoice if possible? Sorry, leasing is new to me and I'm trying to gather all the data.

I also have perfect credit if that changes things.

SlangBlade

I found this thread to be very helpful: https://www.clublexus.com/forums/car...nd-buying.html

dasbuch

Leasing will work to your disadvantage in that situation. They might be happy to get you out of the lease before the additional 7k miles is accrued, but it will be to put you into a lease for a more expensive car, another win for them. There's a reason they're pushing you to lease
The thing is you are still getting behind on the deal financially because of the lack of trade-in (or resell) equity. By trading up every 4-5 years or so and taking reasonably good care of cars, it's possible to keep your payment constant over time or even see it drop, (defying inflation and the increasing cost of cars) while driving a significantly better model with each swap.

Then there's the unknown. What if something happens with your current job and you have to take another one -- one that puts even more miles per year. Or the economy gets really dire or you have some financial issues. It's nice to be able to just drive a car you own free and clear for a couple of years to ride out tough times if needed (never possible once you get caught in the lease trap). That's what I think it is, a trap. Because once you're in, it's really hard to maintain any equity.

As far as $10k earning you more elsewhere, it may or may not. Stocks can go up or down, so by putting it on a car you're getting a guaranteed return of 2% or 3% on your money over 5 years or whatever, and some would say a guaranteed 2% is better than a maybe kinda sorta 5%.

Just my thoughts. Leasing makes sense in certain situations but I think they mostly just benefit dealers.

jkonquer

what's the lowest price you've been offered for an 2014 is350 f sport with mark levinson navi and blind spot assist? the msrp is $48200 and I got few offers for just hair under $42000. Is that a good deal for car with these options?

MiamiGuy28

This is fantastic information. Thank you.

However, in order to get my car monthly payment reasonable, preferably in the $400 range, a large down payment would be required. Every savvy business person I discussed with said buying or financing a car such as the Lexus, BMW, or any high end car is a significant financial mistake. When coupled with the cost of future maintenance, depreciation, and the amount of money out of pocket you must fork, it makes more logical business sense to lease.

However, I agree on a lot of your points, specifically as it relates to my situation, the miles, and being sucked into a more expensive future lease once I get out early of this proposed one.

I want the car. I just felt slightly uncomfortable shelling out sooo much money upfront. Are those financing doing this to get a reasonable monthly payment?

At the end of the day, if I want the car I think financing it makes the most sense for me. I just need to haggle these dealers for pricing below invoice and more research.

I just don't know anyone "buying" these cars. Everyone I know personally that owns a Lexus, BMW, or Audi all LEASE. I don't get it. I guess it works for their situation where mileage isn't a concern.

prashanth9

Hi Everyone,
Please i need your advice. I am planning to buy IS 250 F sport version with navigation package.MRSP for this package is $43,138.

Dealer gave a quote for $40,600.00 + tax (including 1000 student rebate).At last he came down to 40,000 OTD. Can any one please let me know if it is a good deal or not.

Thanks,
Prashanth

CLkicker

Both Glendale and Longo Lexus offered me this price.
I went with Glendale since it's closer to me.

dasbuch

As far as people saying buying a Lexus / BMW or any other car being a financial mistake, well it's weird to even lump Lexus in with BMW there because just a few months ago I saw an article about Lexus retaining its value better than any other brand. I don't think this is true of BMW / Audi because they are known for higher repair costs on the used market, and other factors.

Although, there is some truth to what they are saying. Buying a new car is sort of a financial mistake period. Why? Because nobody needs one. You can buy a 15 year old Honda that will get you from point A to point B with decent gas mileage, be very cheap to own, and you've saved a bundle. A car is *NOT* an investment. It will not grow in value. It is something we spend money on knowing we are throwing money out the window. Buying a new car more than once every 10 or 15 years is a financial mistake in itself, regardless of the brand. And it could be said that since a two thousand dollar car will get you from point A to point B, the more you spend in excess of two thousand bucks, the bigger the mistake you're making. So yes, a $40k car is a bigger mistake than a $20k car.

But then we have to look at the long list of other financial mistakes. Having a child will cost us something like $325,000 before they turn 18 and will NEVER return that money in terms of dollars before we die adjust for inflation, therefore having children is a financial catastrophe of unmatched proportion. But people do it anyway because they get something else out of it. And if all we did was squirreled our money away and never spent it, what would be the point in going to work each day?

But all of this really doesn't get us closer to the answer as to when to lease. Lease when it's a business expense where you can write off the entire amount of the lease payment. That's about the only time it makes financial sense. Otherwise spending money on a lease is just as bad (actually worse) than financing a new car. But that's because the reasons above, not because its a Lexus or BMW.

prashanth9

Hi Everyone,
Please i need your advice. I am planning to buy IS 250 F sport version with navigation package and BMS.MRSP for this package is $43,138.

Dealer gave a quote for $40,600.00 + tax (including 1000 student rebate).At last he came down to 40,000 OTD. Can any one please let me know if it is a good deal or not I need to confirm the dealer by monday.

Thanks,
Prashanth

wednesday

I have a 2015 IS250 F Sport with nav allocated with my dealer (this will be my 4th car purchased from them) and they expect the car to arrive around 8/20. When should I start negotiations on my lease? Also I plan to lease for 15k miles per year and I have tier 1 credit, can any of you help me with what my target should be as far as money factor, price of car and payment. I feel like I am paying way too much for my current lease (over $500 per month) and want to lower my payments on the new one. I find looking through all of this information a little overwhelming

dstopsie

first of all negotiate the price of the car before you do anything Don't tell them your going to lease. Then decide how long you want to lease for, 3, 4 years etc. 15K a year only adds about $20 per month to your payment.

Then you only want to give minim drive off fees. Anything more is a cap cost reduction and you are throng money put the window cause all you are doing is reducing your monthly payment.

Money factor is set by the bank based on the residual value of the car. Since you are getting a 2015 the money factors won't be provided by the bank until the car is released.

Most important thing you can do is negotiate the cost of the car, then go from there. I would contact another dealer in your area through their internet or fleet department and get price quotes from them. When I unloaded my 2014 iS250 sport because I could not deal with the black anymore, my contact at my dealer got promoted to the director of fleet sales. So he got me into the 2014 IS350 fsport for less money on payment then i was paying for my IS250. And I have bought 5 cars from them. Make the dealer you have bought 4 cars from them work and don't appear to anxious to get your new car. They already know you are because your current lease ends them month and you are hitting them up for a 2015 before they are even here. You really need to contact another dealer to compare. You may not get much off msrp because its the first shipment of the new model year.

What I would have done was negotiate the price on a 2014 and then casually say so what can you do for me on a 2015. They are not going to be willing to deal much on a 2015. with the exception of the ventilated seats they are the same car. I thought about waiting to get rid of my 250 when the 2015 came out, but I did not care for the ventilated seats and I did not want to the value of my 250 to go down further.

Also dealers will deal more when then have the car you want on their lot.

wednesday

None of the 2014 F Sport colors were my cup of tea, I am getting an Atomic Silver/rioja which is my main reason for waiting.

I know I am not really in a great position to bargain except that I can extend my lease up to 6 months (she knows that I love the car I have now.) This will be happening close to the end of a month, which is why I am wondering if I may be better off to wait until the car is there to negotiate or start now so I have time to contact other dealers and there are plenty of dealerships in this area. Looking back through this thread deals were being had even on some of the first 2014's so I know it can be done.

We don't put money down on our leases either.

I love new cars but I sure hate the process of procuring them

dstopsie

I understand none of the 2014 were to your liking. But that does not mean you cannot try and negotiate the price of one just to get an idea. Do it through the internet department.

I have always found that I am in a better bargaining position when the car I want is on the lot. Also they are more willing to deal a bit when it is the end of the month or end of the quarter. Go through the internet or fleet department. better discounts are found there.

Go on Truecar.com when they have the 2015 listed there.

I got my 2014 is250 fsport the first weekend they were out and I got about $1500 or $1600 off of it then. But that was before the sales of the new IS were so successful. The car is in hot demand now and that gives the dealer the advantage some what.

It does not hurt to contact another dealer to obtain their pricing to compare.

You also may want to look into selling your car to Carmax. You my be able to get some equity out of it instead of just turning the car into the dealer. I sold my 2014 IS 250 sport to Carmax which helped minimize the negative equity I had by ending the lease on that early. Contact your leasing company and get the payoff of your car, then go to Carmax and get a free appraisal on your car. You could sell it there and pocket any $$ over the payoff amount. Here in Los Angeles, I saw a 2011 IS250 USB Fsport going for about $28K on their website. It might be worth it for you to do that.

wednesday

The buyout on my car is currently in the 22k range and I have appraised it online, I could sell it to Carmax but would probably walk away with nothing, a private sell might make me a little money but honestly not worth the hassle.

2015's have already begun arriving in CA so hopefully there will be more info on the money factor as well as value on Edmunds and True Car soon.