I am gonna jump on this lease deal
07-14-13, 12:56 PM
#61
Lexus Fanatic
Yeah, do wait.
I went in last September and tried to do a deal on the first 2013 ES they had on the lot. They offered me $500 too, which is the best they can do with it being a new model really. Because of the high MSRP, and the non-subsidized money factor the numbers just didn't work, so I walked.
Fast forward to the end of November, so really only 2.5 months later, I wound up in a $16,000 more expensive GS for $80 LESS per month than the best deal I could make on an ES at the time, and had I wanted an ES I could have swung a deal that would have resulted in a payment over $100 less than the payment I had negotiated in September.
So...do wait the deals will come...
I went in last September and tried to do a deal on the first 2013 ES they had on the lot. They offered me $500 too, which is the best they can do with it being a new model really. Because of the high MSRP, and the non-subsidized money factor the numbers just didn't work, so I walked.
Fast forward to the end of November, so really only 2.5 months later, I wound up in a $16,000 more expensive GS for $80 LESS per month than the best deal I could make on an ES at the time, and had I wanted an ES I could have swung a deal that would have resulted in a payment over $100 less than the payment I had negotiated in September.
So...do wait the deals will come...
07-14-13, 02:16 PM
#62
Depends where you live....my cost of ownership of an is includes 550 a month for parking and 400 a month for insurance. That would be 1700 a month, or 40k a year before tax. Tack that on to 50k a year per kid k12 and 50% taxable income and yes 500k is hard to justify a lexus in nyc vs arkansas
Curious on why its so high?
Last edited by John510; 07-14-13 at 02:26 PM.
07-14-13, 04:29 PM
#63
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There's spending money frivolously and theres denying yourself things and experiences that you want. If you are happy driving older and used cars then thats fine, why spend your money on things that you don't derive enjoyment over? BUT, people making far less than $500,000 CAN afford these cars (no matter where you live). If you look at a car like the IS I would venture to say the average income for a purchaser is probably around $100k. $500,000 a year is a great income, an income very few Americans have, and if buying a $48,000 car throws off your goals of "getting rich" with a $42,000 per month gross monthly income, you're doing something wrong.
Its all a balance. To me life is not about getting to the cemetery with the most money. I work hard, make a good living, I have a financial and retirement plan and invest...but I also enjoy my life. Have a nice home, I love cars and I spend money to drive what I want. We love eating out, we do that a lot, we take several nice vacations a year...we do all of that on less than $500k in income in a very expensive place to live.
The key is never to live beyond your means, because doing so, especially early in life, keeps you from being able to get to a point where you are financially strong & independent...but I don't see a point in living radically below your means either...which I think not buying a $48k car you want with a $500k income classifies as. If you don't really want the car thats a different story.
Its all a balance. To me life is not about getting to the cemetery with the most money. I work hard, make a good living, I have a financial and retirement plan and invest...but I also enjoy my life. Have a nice home, I love cars and I spend money to drive what I want. We love eating out, we do that a lot, we take several nice vacations a year...we do all of that on less than $500k in income in a very expensive place to live.
The key is never to live beyond your means, because doing so, especially early in life, keeps you from being able to get to a point where you are financially strong & independent...but I don't see a point in living radically below your means either...which I think not buying a $48k car you want with a $500k income classifies as. If you don't really want the car thats a different story.
I agree, never (or at least try) to live within your means. Especially early in life.
But for me, I think it's better to live below your means and if you do this early enough, you'll find yourself in a much better place.
I'm only 31 so I'm not some old fogey who's about to retire. Yes, I bring in a good amount per year, but the secret is keeping as much of it as I can. I can technically afford to buy nearly any car out there - heck, my friends drive a Maserati Granturismo GT, an Aston V8 Vantage, an R8 vert, and an m3 vert. I'm the one slumming it in my E550. Friends have told me they didn't expect me to buy a car like this because they expected more - but hey, I get to still have fun with my car and save a lot each month.
I don't deprive myself of life's luxuries. We go on trips to Maui, FL, LA, Chicago every year.... actually I'm headed out to LA for 5 days and staying in BH for the week. Then next month we go to Chicago, then to Maui Four Seasons, then back to Florida. I have a watch collection that is worth about the cost of an IS250.
I think for me, I know that earning money is tough and not easy. If I were earning the same amount via a hedge fund or passive income supplements, then perhaps I'd be a little more open about spending. I know that I earn every cent of that money so I'd like to keep a tab on my expenditures.
A significantly wealthier friend told me that the key to becoming wealthy is to know my expenses and to act accordingly.
Expenses, to me, are divided into 2 segments - those that keep value and those that do not. Those that keep value to me are high end watches, houses, investment opportunities, funds, 401K retirement funds. Expenses that do not hold value include cars, toys, electronics. Those that straddle the middle include vacations (but you can't be a hermit and not enjoy life, so you have to do that).
Cars, to me, are a depreciating liability. But, I am a car guy so I cannot deprive myself completely. So, while I can easily afford an IS, I have to think twice and make sure that I'm getting the best deal possible. It's not depriving yourself, it's being smart about it. I probably will wait another year or two and get a preowned one for the wife. I can't see myself paying for it a today's prices.
And this is how it goes back to the OP, in my opinion, he should probably wait a few months or a year and get a better deal on an IS, especially since he seems to be stretching it a little. Can he afford the payments on an IS? Of course. But, affording payment and being smart about it are two very different things.
I agree though, the IS is a very nice car. My emotions tell me to go to the dealer and buy one right now... but I gotta keep that in check with my brain.
07-14-13, 04:30 PM
#64
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Yeah, do wait.
I went in last September and tried to do a deal on the first 2013 ES they had on the lot. They offered me $500 too, which is the best they can do with it being a new model really. Because of the high MSRP, and the non-subsidized money factor the numbers just didn't work, so I walked.
Fast forward to the end of November, so really only 2.5 months later, I wound up in a $16,000 more expensive GS for $80 LESS per month than the best deal I could make on an ES at the time, and had I wanted an ES I could have swung a deal that would have resulted in a payment over $100 less than the payment I had negotiated in September.
So...do wait the deals will come...
I went in last September and tried to do a deal on the first 2013 ES they had on the lot. They offered me $500 too, which is the best they can do with it being a new model really. Because of the high MSRP, and the non-subsidized money factor the numbers just didn't work, so I walked.
Fast forward to the end of November, so really only 2.5 months later, I wound up in a $16,000 more expensive GS for $80 LESS per month than the best deal I could make on an ES at the time, and had I wanted an ES I could have swung a deal that would have resulted in a payment over $100 less than the payment I had negotiated in September.
So...do wait the deals will come...
07-14-13, 05:24 PM
#65
Lexus Fanatic
What I do when I want to make a big purchase is let it ruminate a while before I pull the trigger. If I go a couple months and still want to make the purchase, I figure out the most economical way to make it and make it.
I just think it gets to the point where it becomes a little ridiculous. I have a very good friend that has a lot of family money, she's independently wealthy. If we go out for lunch or something and we're all talking about what we want...she goes through and figures out what the best value is "That sounds great...but $20?" and when we go to pay the check its always "so and so had the whatever and that was more" when the rest of us are just content to split the check equally between us...
Me? When I go out to eat I order what I want. If Sally had soup and that means my piece is $3 more...who cares?
07-15-13, 05:24 AM
#66
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If you really want one...go buy one. Maybe wait a few months for the right deal, but IMHO life is too short to deny yourself things that you want when you can afford them. if its going to hurt you financially thats one thing, but from our discussions thus far I don't see how that could possibly be the case.
What I do when I want to make a big purchase is let it ruminate a while before I pull the trigger. If I go a couple months and still want to make the purchase, I figure out the most economical way to make it and make it.
I just think it gets to the point where it becomes a little ridiculous. I have a very good friend that has a lot of family money, she's independently wealthy. If we go out for lunch or something and we're all talking about what we want...she goes through and figures out what the best value is "That sounds great...but $20?" and when we go to pay the check its always "so and so had the whatever and that was more" when the rest of us are just content to split the check equally between us...
Me? When I go out to eat I order what I want. If Sally had soup and that means my piece is $3 more...who cares?
What I do when I want to make a big purchase is let it ruminate a while before I pull the trigger. If I go a couple months and still want to make the purchase, I figure out the most economical way to make it and make it.
I just think it gets to the point where it becomes a little ridiculous. I have a very good friend that has a lot of family money, she's independently wealthy. If we go out for lunch or something and we're all talking about what we want...she goes through and figures out what the best value is "That sounds great...but $20?" and when we go to pay the check its always "so and so had the whatever and that was more" when the rest of us are just content to split the check equally between us...
Me? When I go out to eat I order what I want. If Sally had soup and that means my piece is $3 more...who cares?
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