SW17LS

Here's the other thing, that lease is so cheap that you could put $200 a month into a savings account to cover mileage overage, and very possibly be able to trade out of it at the end of the lease instead of turning it in and get out of having to pay any mileage overages.

CaliTravel

I've been considering leasing a new 2017. Multiple dealerships in Northern California are currently advertising specials. $889 per month, $6500 out the door, 36 months, 10K miles per year on vehicles with an MSRP of $98,949.

I just don't know if I can live with the gas mileage. It's my favorite vehicle there is, but I may end up in an RX450h instead.

brywhite

Yeah... my local dealer sent out a promo which included the first lease offer I've seen on a LX.

ragabnh

Very common in the west, Las Vegas has the same deal too.

tlhicks

So the fix is to do what I did. We a have a RX450H that is my daily driver and the 2017 LX is for the weekends. The LX is also my favorite vehicle but MPG is to low to be a daily driver. But Trust me, I cant wait to get home from work on Fridays to jump in the LX. My lease deal was zero down. 868.11 a month, 48 months 7500 miles per year. I'm averaging 500 miles a month since January. I traded in a 2015 LX for the 2017. My wife drives a 2016 CT200H F-Sport, she gets 50 MPG and loves it.

CaliTravel

I've just been offered what I feel is an incredible deal on an LX, in the exact configuration I want it. My problem is I can't get over the gas mileage. Is there anything to be done that can improve the gas mileage? I just don't know if I can get passed that...

The deal for those of you who are curious...

$13K off MSRP
Lease
$730 per month + taxes ($800 per month including taxes)
7,500 miles per year
$6500 drive off cost
$61K to purchase at the end of the lease.

Am I crazy not to take this deal?

SW17LS

How long is the lease? I don't like the downpayment but all in all not a bad deal, are you okay with that mileage, or are you planning on buying it at the end?

CaliTravel

36 month lease.
and yes I plan on purchasing the vehicle at the end.
the real sticking point is the gas mileage. i'm a single guy and this would be my only vehicle.

it's between this and a fully loaded RX450h to save big time on gas. The monthly payments are only $175 different, but the buy out at the end is obviously very different.

SW17LS

So if you took that $6,500 in drive off, divided it by 36 you get $180.56, which means effectively the lease is $980.56/mo $0 down taxes included...which strikes me as pretty good. If you compare it to the guy above you who is $868.11 on basically the same lease 48 months, your deal is similar.

As for the gas mileage, I mean it is what it is. If this is the sort of vehicle you want, then thats the cost of entry. If you're willing to pay $1,000 a month to drive the thing, paying an extra $100 a month or so on fuel shouldn't be a big deal.

If you plan on buying it at the end you should examine the numbers though. If you look at your lease, you're paying $35,300 to drive it for 3 years, plus the $61,000 to buy it out thats $96,300 total cost plus any financing for the lease end purchase and the sales tax on the lease purchase. Almost certainly cheaper to take the savings off MSRP, buy it and finance the whole thing upfront.

ClaytonW

It's 5.7 V8. The gas mileage is not so bad considering the engine and the weight. Just the tank capacity is too small :-) My long time average mpg is about 15 but I do not live in a city.
BTW, in Czech Republic, where I am originally from, we say "If you buy a monkey, you still need money for bananas".

yakim

Its a good deal to lease, but if you plan to purchase it afterwards @ $61k, it turns ugly: the residual is way too high and you'd be overpaying big time

SW17LS

I don't know that the residual is all that terribly high...$61k isn't a terrible price for a 3 year old LX570 from what I've seen...

yakim

The residual is not terribly high, its just about $7-10k high...based on a sample of a three year old 2014 LX570 KBB trade-in value (which is always more optimistic than other trade books). That said, there's nothing wrong with selling yourself a car at retail

SW17LS

Trade in value sure, but if you're going to go out and buy a 3 year old LX retail $61k is not a bad price.

IMHO when you get to the end of the lease and you consider buying your car, you have to look at it as two separate purchases. If you're going to buy a used car...may as well buy one used by you.

Overall though, short some tax benefit for leasing in general leasing then buying it out is more expensive than just leasing it from the get go.

yakim

Generally speaking, refinancing your residual after a lease has expired is always a bad idea...one always ends up paying too much, no exceptions...unless one can re-negotiate the residual with a dealer tasked to complete the transaction...Saab (may God have mercy upon their souls) used to be able to do it