DexRox512

iTrader: (5)

Hey guys. I'm currently driving a 2011 IS350 F-Sport that I really do enjoy...however the payment is $740 a month. I know, it's bad. Long story short, I has a 2011 IS350 luxury package that I had my dealer install about $4000 worth of F-Sport parts on. Things started to go really wrong with that car suspension wise and it was in and out of the dealer every week. They finally told me to bring the car back and they'd get me in something else. Obviously they told me I had to roll the depreciation of that car in to a new one but they were willing to give me my parts because I still had the OEM ones. I thought selling these would help me with my negative so I was cool with it and anxious to get in a car that worked! Shame on me for not getting this in writing, but I had a great relationship with this dealer and had bought several cars from them...still no excuse, I know. They took the car from me on a Thursday and sold it on a Saturday with my parts. So I have been paying this awful lease, that I know I can only blame myself for, for 2 years now and still have 24 months left. Due to the 27 months lease deals on their cars now, I thought I might try and either sell my current car privately and pay the difference of the equity or trade it and come up with the difference in cash. I got what I feel is a decent deal on the table for a new IS, without my trade, basically contingent on me getting out of mine. 27 months...15k a year...first months drive off...tier 1 credit...$562 monthly with taxes. Now if I were to trade , they're willing to give me $31k for my car, which leaves $5k negative. I am willing to come up with $2500...and wanted to roll $2500 into the new deal. Crazy maybe, but when I do the math, if I get the payment to $100 less then what I pay now, I getting that money back over the course of the new 27 month deal. Now their coming back saying with my trade, I'm looking at $781 a month. How does that work if we're only adding $2500 in negative? I was under the impression for every $1000 your payment jumps about $20-$25. Can anyone shed some light on this? I know I may be jumping out of the frying pan and in to the oven, but I don't want to go on paying $740 a month. If it doesn't work out, I will just wait out the lease. Thanks guys.

SW17LS

You need to find out:

On the new IS:

1. MSRP
2. Sales Price (negotiated price)
3. Money Factor
4. Resisual
5. Drive off costs (whether they are rolled in or not, taxes, tags, aqusiition fee, etc)

On the old IS:

1. Price they are giving you exactly.
2. Your payoff, exactly.

Once we know all this we can run the numbers for you...

DexRox512

iTrader: (5)

New IS

MSRP - $47,063
Negotiated Price - $44,750
Money Factor - Teir 1 .0013
Term - 27 months
Mileage - 15k...could go down to 12k
Residual - 73%
Fee's - Rolled in...not sure the breakdown
Down - First month payment
Monthly - $562...with taxes

Old IS

Buyout - $35,963
Trade - $31,000 + $2000 cash on my end...

Feel free to text me as well...916.220.9563

SW17LS

Gotta figure out those fees before we can calculate it with real accuracy...you're in CA so there is no upfront sales tax, but theres the $700 acquisition fee, plus tags, plus any dealer processing fee. I put in $1,200 in upfront fees rolled in and I get $562

So when you say "$31,000+$2,000 cash"...you mean the dealer is giving you $31k, you are putting $2k cash into it, and rolling the remaining $2,963 into the new lease?

When I add $2,963 into the lease the payment goes to $686.24. If I add the whole $4,963 into the lease I get $767.51. Maybe the dealer doesn't understand that you want to pay $2,000 of that negative equity in cash? The payment in your scenario should be $686.

GeorgeHill

Negotiated price is too good to be true!

SW17LS

I bet you they are getting it in the trade which is why the payment is so high when they build in the trade.

ThermonMer

740/mo!?!?

i was paying less than 50% of that with zero down on a 2010 IS 250. i know theres a long back story involved, but the problem is, once they find out the situation you got yourself into, the'yll take you to the slaughter house. maybe try a different dealership, or a different brand altogether. to be blunt, you need to hide the mistakes made. that may not happen at your dealership, and it may not happen at a lexus/toyota dealership in general. technically, your payments are well worthy of a new GS price match, but theyll never do that for you for obvious reasons. get yourself off the lexus database grid, and shop for a different brand.

SW17LS

There's no "Lexus database grid". He won't do any better with another brand, he's just rolling $3,000 of negative equity into the new lease, which kills the payment...bottom line. It will kill the payment regardless of the brand, and another brand might not be able to give him as much for his IS.

We've done the math, the deal to lease the 3IS is great, sales price is great, MF is the base MF from Lexus, residual is excellent. The problem is his negative equity. What you paid for your 2010 IS250 being less than half of that has no bearing here...you had a much lower MF because the car was not brand new, and you didn't have $3k in negative equity in the deal. $562 is a very good payment for a $47k IS.

volnedan

You already got into your current situation by making a bad decision by rolling negative equity into your lease, don't make the same mistake twice. Just because rolling in $2500 of negative equity gives you a payment $100 lower than what you pay right now, still doesn't mean its a good deal.

This is a vicious cycle that you need to break right now. Otherwise you going to keep blowing money that Lexus will be happy to make interest on. I say try your best to sell your car privately and get out of the current lease.

SW17LS

Thats the thing, rolling the $2,900 in neg equity gives him the same payment he has now, not $100 less. If it truly did reduce his payment by $100, I would say this move is a no brainer.

In a purchase scenario I would agree with you...you have got to drive one until its paid for to stop the cycle of negative equity. A lease is a little different because you can always just turn it in at the end of the lease and the cycle stops.

In his scenario he has said that he has 24 months remaining on his current lease @ $750 a month. At the end of 24 months he can turn the car in and the negative equity is gone.

If he trades it for a 3IS now and has the same payment for 27 months, he turns it in 27 months from now and the negative equity is gone. He's in the same position 27 months from now whether he keeps the 2IS or trades for the 3IS.

The issue is the $2k he's going to pay out of pocket. If he keeps his 2011 until the lease is up in 2015...then he never has to fork over that $2k...the negative equity is gone. BUT...is it going to need tires...brakes...? The 3IS would not need those things within 27 months.

So...I don't think he's hurting himself by rolling the $2,900 worth of negative equity from his 2IS into a 3IS, having the same payment and essentially the same lease end date...and paying the $2k out of pocket, much of which would have been eaten by tires and brakes on the 2IS.

DexRox512

iTrader: (5)

Ok guys...thanks for all the advice...I really do appreciate it, even the negative comments. I know rolling negative equity is a big no no. SW13GS is right...my 2011 IS350 needed brakes and tires NOW...which would have put me out around 2k. The registration was due in about 3 weeks too. And also, I never did the 30k service, so that would have cost me a little. I picked up a new 350 F Sport yesterday...the deal info is below.

MSRP - 46922
Discount - 3500
Trade - 31,000
Owed Amount - 35,962
Term - 27 months
MF - .0013
Cash down - $1000 (mostly first months payment)
Residual - 73%
Monthly - $710 after taxes.

So it isnt a savings really at all...but it's basically the same amount of time I'd be in my old lease for, plus 3 months. My car is my splurge item in my life and I'm ok with the deal. Once these 27 months are up, I'll get in to a cheaper deal on another car and ultimately try to stick to 24-27 month leases. We all learn from screw ups...you guys will probably say I made another, but life is short.

BarrettF77

Sounds like you answered your own question.

SW17LS

With only $1,000 out of your pocket and all the negative equity swallowed up, I think that was a smart move.

DexRox512

iTrader: (5)

Thanks Steve!

SW17LS

Post pics!