Tipping point between leasing and buying
#76
The dealer did not suggest anything when it came to leasing the car, in fact they suggested not putting as much down, myself I just despise high monthly payments that's all. That's my choice and I will live with the consequences of doing that. And if don't believe an IS 350 F sport can't cost $650.00 a month go to the Lexus website payment estimator and pick a GS 350 RWD because that's the only car close to an IS 350 F sport list price for around $49,000, putting 0 down and paying the lease fees only the payments are $651 for 36 months and 615 for 48 months. Check it out if you don't believe me. And also as far as my credit rating goes, last I knew it was 825 which last I knew was pretty good.
Also IS 350 F Sports are hard to come by in the Northeast which makes it hard to deal for one, IS 250 are a dime a dozen but didn't want one. Maybe the 350s are more available in warmer climates and you can deal better for them, I don't know.
Also IS 350 F Sports are hard to come by in the Northeast which makes it hard to deal for one, IS 250 are a dime a dozen but didn't want one. Maybe the 350s are more available in warmer climates and you can deal better for them, I don't know.
#77
if the car is totalled or stolen, the insurance company isnt paying you 14k back, they pay the dealer and youre out of that 14k you traded in. Selling the car privately (would get more than the 14k in trade in) wouldve been better used to help absorb the higher monthly payment and you dont run the risk of losing it in case something happened to the car.
#79
Lexus Test Driver
You very well might be right, but let me ask you this. If I lease this car for a cap price of $47,000. put down the 14 K and if 6 months later the car is totaled. Now say the insurance pays an ACV of 42,000, your saying all that money goes to the lease company I believe and I get nothing at all. If you add the 42 K and the 14K that I put down that totals 56 K. So your saying the leasing company will pocket an extra an extra 9 K for a car that costs 47,000 to begin with. That doesn't sound right to me, it doesn't work that way for loans which is basically what a lease is for the most part. Let me know what you think, Thanks
remember on a lease YOU DO NOT OWN THE CAR your renting it.
it is no different than if you went to hertz rental car and put 14k on their car and make a daily rental payment.
the only difference is you don't need to put 14k down to rent. but when you lease a car they will allow you to put money down to make the payment more affordable.
some people actually pay the entire lease up front. that would be really stupid! (unless you keep the car for the remainder of the lease) but if the car is totaled and you can't keep it for the remainder of the lease your getting hosed.
#80
Lexus Test Driver
You very well might be right, but let me ask you this. If I lease this car for a cap price of $47,000. put down the 14 K and if 6 months later the car is totaled. Now say the insurance pays an ACV of 42,000, your saying all that money goes to the lease company I believe and I get nothing at all. If you add the 42 K and the 14K that I put down that totals 56 K. So your saying the leasing company will pocket an extra an extra 9 K for a car that costs 47,000 to begin with. That doesn't sound right to me, it doesn't work that way for loans which is basically what a lease is for the most part. Let me know what you think, Thanks
That's why is never good to pay anything as downpayment when you lease.. The lease montly payment is low for a reason to make you afford that car to rent it rather than buying it.. If you thought the monthly payment is too high to a lease it just mean that you cannot afford that car as that was the less you could have that car for.
I truly hope nothing happen and you learn this lesson the easy way. Always read and do your research before you make a deal. That;'s why we have this forum for.
Here, this is a good read for you to get you familiar.
http://www.edmunds.com/car-leasing/d...ood-lease.html
Last edited by keyframe13; 12-26-13 at 06:43 AM.
#81
They are up here. Oddly enough the North Jersey dealership got the car for me from a dealership further north in Connecticut.
Last edited by BOBFSPORT; 12-26-13 at 03:16 PM.
#82
That's exactly right, you'll lose all your money. What you don;t get is that you didn';t lower any monthly payment.. Well visually you did.. But you paid that 14k upfront for that.. So from that deal by renting the car to you, the dealer needs to make 20k over the lease period. You didn;t save any money, you'll still pay 20k is just you paid upfront most of it. and you pay monthly less.
That's why is never good to pay anything as downpayment when you lease.. The lease montly payment is low for a reason to make you afford that car to rent it rather than buying it.. If you thought the monthly payment is too high to a lease it just mean that you cannot afford that car as that was the less you could have that car for.
I truly hope nothing happen and you learn this lesson the easy way. Always read and do your research before you make a deal. That;'s why we have this forum for.
Here, this is a good read for you to get you familiar.
http://www.edmunds.com/car-leasing/d...ood-lease.html
That's why is never good to pay anything as downpayment when you lease.. The lease montly payment is low for a reason to make you afford that car to rent it rather than buying it.. If you thought the monthly payment is too high to a lease it just mean that you cannot afford that car as that was the less you could have that car for.
I truly hope nothing happen and you learn this lesson the easy way. Always read and do your research before you make a deal. That;'s why we have this forum for.
Here, this is a good read for you to get you familiar.
http://www.edmunds.com/car-leasing/d...ood-lease.html
#83
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I've had a lot of cars over the last 25+ years of driving and every single time I buy a new car I run the numbers on a lease and it always has made financial sense to purchase over lease regardless how long I decide to keep the car. I also go back after selling the car and look and see if a lease would have made financial sense and it never has. Keep in mind that every single new purchase except my last one has been a Japanese car except one VW GTI so that may make a difference.
I think a lot of the people who are getting into leases are the ones looking for a certain low monthly payment. I'm sure there are exceptions to the rule but this has been my experience.
I think a lot of the people who are getting into leases are the ones looking for a certain low monthly payment. I'm sure there are exceptions to the rule but this has been my experience.
#84
I've had a lot of cars over the last 25+ years of driving and every single time I buy a new car I run the numbers on a lease and it always has made financial sense to purchase over lease regardless how long I decide to keep the car. I also go back after selling the car and look and see if a lease would have made financial sense and it never has. Keep in mind that every single new purchase except my last one has been a Japanese car except one VW GTI so that may make a difference.
I think a lot of the people who are getting into leases are the ones looking for a certain low monthly payment. I'm sure there are exceptions to the rule but this has been my experience.
I think a lot of the people who are getting into leases are the ones looking for a certain low monthly payment. I'm sure there are exceptions to the rule but this has been my experience.
Thanks.
#85
Lexus Test Driver
Keyframe, the car is just ordered at this time so I am not locked into how it will be paid for at this time. What would you suggest to do, are the MSDs a good thing to do also, I just learned about them reading in this forum. Any and all suggestions will be appreciated on this purchase. Thanks
With such a nice trade in value $14k , if I were you, I would look serious in buying the car vs lease it if that would work for you. You can make the loan for 72 months to have your monthly payments less and try to pay it faster. The rates are very low plus you have no limitation in miles and no risk on paying penalty because of dents or what not. The difference between the buy and lease with your down-payment might make sense.
At the dealer you need to concentrate on negotiating the price of the car as low as possible. Don;t let him concentrate on your monthly payments, that's your business not his. That is your biggest saving.. Negotiating thousands from the selling price.
#86
To do it before you buy you have to estimate those things. As I said in an earlier post, it also helps a lot if you sell the vehicle yourself versus trading it in since the dealer rapes you on a trade-in. I have always had good luck selling my owner cars quickly for top dollar, but I take really good care of them. Negotiating a good purchase price and getting a good sale price can reduce the cost of ownership by $5k or more on a Lexus.
#87
Lexus Test Driver
It would be interesting to see how many people who lease with no money down and have higher monthly payments end up having to sell their car prematurely or default. I say this because there's a huge chunk of society that doesn't know how to put money away and budget out. All that extra money saved with no down payment easily and quickly gets blown elsewhere, then suddenly they are stuck with a high monthly payment because someone told them never to put money down on a lease. It's horrible advice. People can't budget out having "extra" money, and our society has a terrible habit of not saving. Yet no one comes on here and admits they had to sell their car after two years because the high monthly paymens were killing them. This is the reality for many, and all sides of the story should be talked about. At least when you start a lease, you know how much down you can afford to give. Ones a small gamble, the other is a huge gamble. It is much safer to set up your finances on Day One of your lease (make your payments then), rather than take the risk you'll properly allocate money each month for the next four years.
Last edited by Fizzboy7; 12-26-13 at 02:28 PM.
#88
I completely agree and i don't think financing is wrong if you plan on keeping a luxury car more than three years. Who the hell wants to keep a luxury car more than three or four years though? It is just that, a LUXURY car. Not a car of necessity but rather a car you buy to have the latest and greatest and spoil yourself with the newest tech and luxury features. Buying a luxury car to drive it into the ground makes no sense at all. Honestly is a luxury car stlll luxurious five years down the road? A 2013 Corolla is more of a luxury car than a 1st generation IS. Again my point in all of my posts on this thread is that most people choose to lease luxury cars because it makes more sense for them not because they cant afford to buy it in cash.
I can think of many good reasons, it's just that they don't apply to your situation/outlook.
My friend is always saying that "Eating is a neccessity so you might as well enjoy it as much as possible." Owning a Lexus is a luxury like you said but for many of us trying to sustain a lifestyle, driving is a neccessity. So if I have to spend a good portion of my time on the road almost every day than I might as well enjoy it. I see people say that if they were to own a car for 10 years than it would be a beater and not a Lexus. I say if I'm going to spend 5+ years in the same freaking car than I better love it! I want a car that I can trust and won't be a nightmare to maintain. I also want a car that has great resale value so when I am done with the car, I can recoup some of my loss. When you factor all these points in the True Cost of Ownership a Lexus exceeds the competition.
On top of that getting a car paid off and not having a monthly car payment for a few years is not only a good feeling it's better than the "next newest toy" ... well for me. I can then use that money to save up for the next car or next investment.
To be honest, your biggest pro for this car is one of my biggest cons. I don't want the newest and best thing to be noticed. I get more attention than I care for already and getting this car is only going to make it worse. I'd rather be stealthy and blend in. This car is about the worse choice I could make to attain that goal. There is obviously worse but not in my price range.
I won't pretend that a Lexus is a good financial decision. Like you said it is a luxury item, but I go back to my intro. If I am going to be spending a lot of time driving than I might as well enjoy it. We came to the same conclusions but just found different paths getting here.
#89
I've had a lot of cars over the last 25+ years of driving and every single time I buy a new car I run the numbers on a lease and it always has made financial sense to purchase over lease regardless how long I decide to keep the car. I also go back after selling the car and look and see if a lease would have made financial sense and it never has. Keep in mind that every single new purchase except my last one has been a Japanese car except one VW GTI so that may make a difference.
I think a lot of the people who are getting into leases are the ones looking for a certain low monthly payment. I'm sure there are exceptions to the rule but this has been my experience.
I think a lot of the people who are getting into leases are the ones looking for a certain low monthly payment. I'm sure there are exceptions to the rule but this has been my experience.
#90
I can think of many good reasons, it's just that they don't apply to your situation/outlook.
My friend is always saying that "Eating is a neccessity so you might as well enjoy it as much as possible." Owning a Lexus is a luxury like you said but for many of us trying to sustain a lifestyle, driving is a neccessity. So if I have to spend a good portion of my time on the road almost every day than I might as well enjoy it. I see people say that if they were to own a car for 10 years than it would be a beater and not a Lexus. I say if I'm going to spend 5+ years in the same freaking car than I better love it! I want a car that I can trust and won't be a nightmare to maintain. I also want a car that has great resale value so when I am done with the car, I can recoup some of my loss. When you factor all these points in the True Cost of Ownership a Lexus exceeds the competition.
On top of that getting a car paid off and not having a monthly car payment for a few years is not only a good feeling it's better than the "next newest toy" ... well for me. I can then use that money to save up for the next car or next investment.
To be honest, your biggest pro for this car is one of my biggest cons. I don't want the newest and best thing to be noticed. I get more attention than I care for already and getting this car is only going to make it worse. I'd rather be stealthy and blend in. This car is about the worse choice I could make to attain that goal. There is obviously worse but not in my price range.
I won't pretend that a Lexus is a good financial decision. Like you said it is a luxury item, but I go back to my intro. If I am going to be spending a lot of time driving than I might as well enjoy it. We came to the same conclusions but just found different paths getting here.
My friend is always saying that "Eating is a neccessity so you might as well enjoy it as much as possible." Owning a Lexus is a luxury like you said but for many of us trying to sustain a lifestyle, driving is a neccessity. So if I have to spend a good portion of my time on the road almost every day than I might as well enjoy it. I see people say that if they were to own a car for 10 years than it would be a beater and not a Lexus. I say if I'm going to spend 5+ years in the same freaking car than I better love it! I want a car that I can trust and won't be a nightmare to maintain. I also want a car that has great resale value so when I am done with the car, I can recoup some of my loss. When you factor all these points in the True Cost of Ownership a Lexus exceeds the competition.
On top of that getting a car paid off and not having a monthly car payment for a few years is not only a good feeling it's better than the "next newest toy" ... well for me. I can then use that money to save up for the next car or next investment.
To be honest, your biggest pro for this car is one of my biggest cons. I don't want the newest and best thing to be noticed. I get more attention than I care for already and getting this car is only going to make it worse. I'd rather be stealthy and blend in. This car is about the worse choice I could make to attain that goal. There is obviously worse but not in my price range.
I won't pretend that a Lexus is a good financial decision. Like you said it is a luxury item, but I go back to my intro. If I am going to be spending a lot of time driving than I might as well enjoy it. We came to the same conclusions but just found different paths getting here.
"I get more attention than i care for already".....i am sure you do big guy!