The end of my lease
08-11-09, 08:27 AM
#1
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The end of my lease
It's hard to believe, as it seems just a short time ago I was posting pictures of the new car, but my 36 month lease is just a few short months away from being finished. I have until mid-January to make a final decision, but I like to start the research process early so that I don't have to make a rush decision on what to do. So here are my choices:
Keep the car at the end of the lease. It's a LS460L with an $86K sticker price, so pretty much every option other than the executive rear seat package. The buyout is $47K. It will have about 42,000 miles on it when I'm done. Looking at autotrader.com, this price looks like a fair deal, although I suspect the "ask" prices on autotrader are much higher than the real sales prices.
Return the car and get something else - the question is, what else? The 2010 LS460 sounds like it will have minor tweaks at best, so probably just 3 more years of about the same thing, but with all the depreciation of a new car.
Or, maybe the Mercedes 2010 E-class. It looks like it's getting good reviews, but to equip it comparable in performance and technology to the LS, the MSRP easily gets driven up to $72K, which seems really high for a mid-size.
The BMW 5 series is OK, but it's an aging design, so not terribly exciting. That's about all I can think of considering, unless I'm missing something. I don't really want to buy an $80K+ car again in this economy. It seems a bit over indulgent, and I wouldn't mind driving something a little smaller and more nimble.
My real dillema though is whether to buy my existing car for $47K. Is that a good deal, or will I just be looking for trouble if I keep it for another 2 years or so, and then have to sell a five year old car, out of warranty, with a lot of technology in it. I love the car, and in typical Lexus fashion, it's been bulletproof for reliability, so it's just a matter of not getting stuck with the car at a price that is not reflective of the good potential deals in today's soft car market.
Any input would be greatly appreciated.
Keep the car at the end of the lease. It's a LS460L with an $86K sticker price, so pretty much every option other than the executive rear seat package. The buyout is $47K. It will have about 42,000 miles on it when I'm done. Looking at autotrader.com, this price looks like a fair deal, although I suspect the "ask" prices on autotrader are much higher than the real sales prices.
Return the car and get something else - the question is, what else? The 2010 LS460 sounds like it will have minor tweaks at best, so probably just 3 more years of about the same thing, but with all the depreciation of a new car.
Or, maybe the Mercedes 2010 E-class. It looks like it's getting good reviews, but to equip it comparable in performance and technology to the LS, the MSRP easily gets driven up to $72K, which seems really high for a mid-size.
The BMW 5 series is OK, but it's an aging design, so not terribly exciting. That's about all I can think of considering, unless I'm missing something. I don't really want to buy an $80K+ car again in this economy. It seems a bit over indulgent, and I wouldn't mind driving something a little smaller and more nimble.
My real dillema though is whether to buy my existing car for $47K. Is that a good deal, or will I just be looking for trouble if I keep it for another 2 years or so, and then have to sell a five year old car, out of warranty, with a lot of technology in it. I love the car, and in typical Lexus fashion, it's been bulletproof for reliability, so it's just a matter of not getting stuck with the car at a price that is not reflective of the good potential deals in today's soft car market.
Any input would be greatly appreciated.
08-11-09, 08:48 AM
#2
bmw 5 will be redesigned soon, i wouldn't get it
the new e is nice, a lot of new tech, though some people say it doesn't drive as nice. i say you take a test drive and see what's up? by jan i think there will be some deals on the e class
imho, seeing all your posts, i think you are the kind of owners who like new cars every yrs, don't want to worry about warranty, want the latest tech, etc... in that case i don't think 47k for the ls460l is worth it, might as well retrun the car and try something else. like you said with the current market, i am not sure a 3 yr old ls460l is worth more than 50% of residual
plus, another 3 yrs with another brand and you might see the next gen LS!
the new e is nice, a lot of new tech, though some people say it doesn't drive as nice. i say you take a test drive and see what's up? by jan i think there will be some deals on the e class
imho, seeing all your posts, i think you are the kind of owners who like new cars every yrs, don't want to worry about warranty, want the latest tech, etc... in that case i don't think 47k for the ls460l is worth it, might as well retrun the car and try something else. like you said with the current market, i am not sure a 3 yr old ls460l is worth more than 50% of residual
plus, another 3 yrs with another brand and you might see the next gen LS!
08-11-09, 10:56 AM
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As far as lexus, from my opinion it is a dependable car and you can keep it for more tha 5 years even. But if you are looking for something new in the sedans, you would have to go and test drive a few cars at first. The 5 series is getting a facelift and some changes to the body, but as of now nothing was released. You can lease the new BMW 7 series looks sharp and nice too. Or you can wait for the new Rang Rover Sport or the regular Range Rover as it is going to be released later this year with major changes in the interior, engine performance, and minor details on the outside. If you decide to keep the lexus you can try to negotiate a better price with the dealership and keep it.
08-11-09, 11:45 AM
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BMW M3
Totally different car from the LS - but excellent in its own way. I would get the sedan, looks sharp.
In general, I don't believe in leasing, but if you do it, I would switch it up every 3 yrs (that is the main benefit after all).
Totally different car from the LS - but excellent in its own way. I would get the sedan, looks sharp.
In general, I don't believe in leasing, but if you do it, I would switch it up every 3 yrs (that is the main benefit after all).
08-11-09, 01:43 PM
#7
I would stay away from German cars if you want reliability. If you want to go to a midsize car you should check out the Infiniti M45. Very nice car, smaller than the LS, cheaper than your LS residual, great reviews. That was my midsize choice before I bought my LS.
Personally, I would attempt to negotiate the buyout of your current LS. Maybe they will deal a little, don't know, never leased.
Personally, I would attempt to negotiate the buyout of your current LS. Maybe they will deal a little, don't know, never leased.
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08-11-09, 05:14 PM
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I agree with G2Lexus stay away from German cars if you want reliability.
I currently lease a 2007 BASE CL550, base price was 130K. Fully loaded came to 145K tax not included. This is in Canadian currency.
The reliability is better then the previous generation, but the electronics still have their gremlins, though they are improved somewhat.
I have another 7 months to go till my lease ends.
As great as the car is, I had to visit the dealership numerous times for little annoyances, that a car at this price level shouldn't have.
Oil change will set you back $130.
Recently I brought the car in for front brake issues. I personally thought it would be just a simple brake pad replacement as I do not drive this car hard, and I drive mainly on the highway.
I was quoted $3000+ to change both FRONT rotors and pads.
for that amount I could have bought 4 Brembo discs. So fine I had it done, though it was a bitter pill to swallow.
Then just recently I went to court to pay a fine, and all in all it took me 15 minute from the time I parked my car and back. I noticed the front driver side had some damage. Damage was white paint rubbed off on my bumper, scratched headlight lense, and and a dent of a 1/4 inch deep running a length of 3 inches.
It didn't seem as much just a little thing. I figured it will cost me anywhere from to $1500 to $2500 to rub off the paint from my bumper, replace the head light unit, and fix that 3 inch scratch dent. Brought my car and expected the worst would be $3000 max. In my mind the headlight unit would have been the major cost.
Body shop guy comes back with an estimation of $5000 +
I myself am looking for an LS460L, though I have no idea how much maintenance for brakes, suspension, or oil change costs, I doubt it will cost as much as an CL550. (Though I can do the oil change myself from now on)
That's not even mentioning the inconvenience of dealing with an arrogant MB technician who looks down on you as if your the cause of the cars electronic problems.
I am hesitating to get a new LS460L because I believe it is in its 3rd yr of production so I think the 2010 will be the last revision of this generation, before an all new generation appears in 2011 or 2012. So I am looking to get a 2007 or 2008 and then trade it in for the new LS generation when it comes out.
I currently lease a 2007 BASE CL550, base price was 130K. Fully loaded came to 145K tax not included. This is in Canadian currency.
The reliability is better then the previous generation, but the electronics still have their gremlins, though they are improved somewhat.
I have another 7 months to go till my lease ends.
As great as the car is, I had to visit the dealership numerous times for little annoyances, that a car at this price level shouldn't have.
Oil change will set you back $130.
Recently I brought the car in for front brake issues. I personally thought it would be just a simple brake pad replacement as I do not drive this car hard, and I drive mainly on the highway.
I was quoted $3000+ to change both FRONT rotors and pads.
for that amount I could have bought 4 Brembo discs. So fine I had it done, though it was a bitter pill to swallow.Then just recently I went to court to pay a fine, and all in all it took me 15 minute from the time I parked my car and back. I noticed the front driver side had some damage. Damage was white paint rubbed off on my bumper, scratched headlight lense, and and a dent of a 1/4 inch deep running a length of 3 inches.
It didn't seem as much just a little thing. I figured it will cost me anywhere from to $1500 to $2500 to rub off the paint from my bumper, replace the head light unit, and fix that 3 inch scratch dent. Brought my car and expected the worst would be $3000 max. In my mind the headlight unit would have been the major cost.
Body shop guy comes back with an estimation of $5000 +
I myself am looking for an LS460L, though I have no idea how much maintenance for brakes, suspension, or oil change costs, I doubt it will cost as much as an CL550. (Though I can do the oil change myself from now on)
That's not even mentioning the inconvenience of dealing with an arrogant MB technician who looks down on you as if your the cause of the cars electronic problems.
I am hesitating to get a new LS460L because I believe it is in its 3rd yr of production so I think the 2010 will be the last revision of this generation, before an all new generation appears in 2011 or 2012. So I am looking to get a 2007 or 2008 and then trade it in for the new LS generation when it comes out.
08-11-09, 05:35 PM
#9
lol well that's why you lease a bmw. aside from my monthly payment, everything is covered including maintenance. i can't be happier 
any body work on luxury cars aren't cheap, mb or bmw or lexus. someone here with ls460 got hit in the rear bumper and the bill wasn't pretty. my sc430 got hit and the bill was also over 5k
i would never buy an euro, that's just asking for it. but if it's for people who like to change cars every few years, leasing is the way to go, and in that case reliability isn't as big of a problem
but for those who are keeping a car for long term, by all means do NOT get euro...
any body work on luxury cars aren't cheap, mb or bmw or lexus. someone here with ls460 got hit in the rear bumper and the bill wasn't pretty. my sc430 got hit and the bill was also over 5k
i would never buy an euro, that's just asking for it. but if it's for people who like to change cars every few years, leasing is the way to go, and in that case reliability isn't as big of a problem
but for those who are keeping a car for long term, by all means do NOT get euro...
08-11-09, 05:47 PM
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It still amazes me that in this horrible economy people still are willing to lease expensive German cars, despite the fact that it is a money losing proposition.
It just seems like the American consumer will never learn.
Sorry, I'll get off my soapbox now.
It just seems like the American consumer will never learn.
Sorry, I'll get off my soapbox now.
08-11-09, 06:34 PM
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AmDave: It still amazes me that in this horrible economy people still are willing to lease expensive German cars, despite the fact that it is a money losing proposition.
It just seems like the American consumer will never learn.
It just seems like the American consumer will never learn.
08-12-09, 07:24 AM
#13
Driver School Candidate
You can negotiate the buyout and you could even negotiate them including the Lexus certified warranty with your buy out. Your best chance of negotiating the best buyout is if you tell them you are either buying out the lease or you are getting another car FROM ANOTHER DEALER. That way the dealer will get as aggressive as it can with your lease buyout as that is their only chance to earn a sale from you.
08-12-09, 07:33 AM
#14
Driver
Thread Starter
Thanks for all the great replies everyone.
Rominl - I think you're right, I like new technology and trading in every 3 years keeps me current on that.
The GS is a great car, but it's just hard to get excited about a GS after driving an LS460L for 3 years. It doesn't really do anything the LS didn't already do. I loved the LS460L, and if I were going to own a car for a long time, this would definitely be a great one to own. It's been outstanding to drive, and bulletproof for reliability.
Owning another LS460 for three more years certainly wouldn't be the worst thing in the world, just a bit boring, and I think I'm feeling the need to try something else. The BMW 5 series looks OK, but end of life for this model, so maybe if there is a great lease deal out there it makes sense, but otherwise probably not. The 2010 E-class looks like the most logical one for me. I don't need an S-class or a 7-series. I'm looking foward to driving something a little smaller and more nimble.
As for buying out the lease, has anyone successfully bought a car at the end of the lease from Lexus for less than the contracted residual value? I tried pretty hard to do that on my last purchase and they said they absolutely refuse to negotiate any discount off the contract residual amount. They just put the cars up for auction and let the dealers big against each other on them. At $47K, it's not so high that it's outrageous, but it's not so low that it's a steal. It's just a very average price, so I'm not sure how much success I will have in negotiating anything off that price. But I'm certainly willing to try if anyone has some ideas on how to get past the initial no response I'm going to get.
Rominl - I think you're right, I like new technology and trading in every 3 years keeps me current on that.
The GS is a great car, but it's just hard to get excited about a GS after driving an LS460L for 3 years. It doesn't really do anything the LS didn't already do. I loved the LS460L, and if I were going to own a car for a long time, this would definitely be a great one to own. It's been outstanding to drive, and bulletproof for reliability.
Owning another LS460 for three more years certainly wouldn't be the worst thing in the world, just a bit boring, and I think I'm feeling the need to try something else. The BMW 5 series looks OK, but end of life for this model, so maybe if there is a great lease deal out there it makes sense, but otherwise probably not. The 2010 E-class looks like the most logical one for me. I don't need an S-class or a 7-series. I'm looking foward to driving something a little smaller and more nimble.
As for buying out the lease, has anyone successfully bought a car at the end of the lease from Lexus for less than the contracted residual value? I tried pretty hard to do that on my last purchase and they said they absolutely refuse to negotiate any discount off the contract residual amount. They just put the cars up for auction and let the dealers big against each other on them. At $47K, it's not so high that it's outrageous, but it's not so low that it's a steal. It's just a very average price, so I'm not sure how much success I will have in negotiating anything off that price. But I'm certainly willing to try if anyone has some ideas on how to get past the initial no response I'm going to get.
