I think I got screwed hard in my lease deal.
12-20-15, 01:04 PM
#16
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Yup you got screwed.
I know people getting a 2015 RC350, loaded, in the $400s with nothing down. Put down $2000 + taxes and fees, and my broker gets you get car for $300 a month.
Whats worst, is you bought the car from the same dealer my broker uses
. If you would have asked in the forums, I could have helped. My GF got her IS250 fully loaded from Jim Falk (via my broker), put $2000 down +taxes/fees (no credit, fresh college grad) and pays $189 a month + tax.
Right now is the worst time to buy a 2016, when lots are still loaded with 15's you can get dirt cheap!
Unfortunately since you signed the contract, you can't change your terms. Only way out is to lemon law the car (its a Lexus, not likely to happen) or you can sweet talk the dealer into releasing your contract if you buy a RC350 (have seen this happen with people who get the 350, and then decide they prefer the F).
1) why did you choose 36 months?
2) do you know what your MF was?
36 months is the worst way to lease a Lexus right now, as its the period between 24-36 months of ownership where the value of the car tanks the most. Figure it like this using my made up numbers: on a 24 month lease the car will have an 80% residual, but on a 36 month lease will only have 60% - hence you are paying 40% of the car in 3 years instead of 20% over 2 - you can see why that inflates payments by a large amount.
The best thing to do is lease for 24 months, and if your really love the car, buy it. Its a Lexus, you can keep it 8-9 years no problem, if thats your thing.
Also, its never advertised but you need to see what Money Factor (aka interest rate) Lexus Financial Services is offering for the car at the time of purchase. Lexus sets the initial %, as the baseline, but the dealer is allowed to inflate that as well. If the dealer changed your % from 1.5 to 4, which is entirely possible here, it will again screw up the payments.
IMO - you were either shafted by the dealer because you did not pay attention / do research prior to purchase, OR - you have bad credit and got shafted by the dealer. (not a personal attack on you! Im just stating the logical conclusions from evidence provided). If its bad credit, use this bad stroke of luck as an opportunity to improve your credit, and make every payment on time.
Just enjoy the car and learn from your mistakes for next time. Because seriously, thats the payment I could get on a RC-F with a bit down.
I know people getting a 2015 RC350, loaded, in the $400s with nothing down. Put down $2000 + taxes and fees, and my broker gets you get car for $300 a month.
Whats worst, is you bought the car from the same dealer my broker uses
. If you would have asked in the forums, I could have helped. My GF got her IS250 fully loaded from Jim Falk (via my broker), put $2000 down +taxes/fees (no credit, fresh college grad) and pays $189 a month + tax.Right now is the worst time to buy a 2016, when lots are still loaded with 15's you can get dirt cheap!
Unfortunately since you signed the contract, you can't change your terms. Only way out is to lemon law the car (its a Lexus, not likely to happen) or you can sweet talk the dealer into releasing your contract if you buy a RC350 (have seen this happen with people who get the 350, and then decide they prefer the F).
1) why did you choose 36 months?
2) do you know what your MF was?
36 months is the worst way to lease a Lexus right now, as its the period between 24-36 months of ownership where the value of the car tanks the most. Figure it like this using my made up numbers: on a 24 month lease the car will have an 80% residual, but on a 36 month lease will only have 60% - hence you are paying 40% of the car in 3 years instead of 20% over 2 - you can see why that inflates payments by a large amount.
The best thing to do is lease for 24 months, and if your really love the car, buy it. Its a Lexus, you can keep it 8-9 years no problem, if thats your thing.
Also, its never advertised but you need to see what Money Factor (aka interest rate) Lexus Financial Services is offering for the car at the time of purchase. Lexus sets the initial %, as the baseline, but the dealer is allowed to inflate that as well. If the dealer changed your % from 1.5 to 4, which is entirely possible here, it will again screw up the payments.
IMO - you were either shafted by the dealer because you did not pay attention / do research prior to purchase, OR - you have bad credit and got shafted by the dealer. (not a personal attack on you! Im just stating the logical conclusions from evidence provided). If its bad credit, use this bad stroke of luck as an opportunity to improve your credit, and make every payment on time.
Just enjoy the car and learn from your mistakes for next time. Because seriously, thats the payment I could get on a RC-F with a bit down.
12-20-15, 01:16 PM
#17
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Residual is important regardless.
That's part of how the actual payment amount is established. Typically a lot of people do decide to keep their cars, if you have a high residual then at the end of the lease it only leaves you with one option...typically those that put down 1k and pay 350 on a 50k plus car will have a high residual. So all in all they are truly just borrowing the car and paying to drive it. Whereas if you wanted to make some kind of financial decision, if you will, you would negotiate the residual where the payments lead up to a lower residual.
Buy hey, I don't make the rules. I prefer just to buy.
That's part of how the actual payment amount is established. Typically a lot of people do decide to keep their cars, if you have a high residual then at the end of the lease it only leaves you with one option...typically those that put down 1k and pay 350 on a 50k plus car will have a high residual. So all in all they are truly just borrowing the car and paying to drive it. Whereas if you wanted to make some kind of financial decision, if you will, you would negotiate the residual where the payments lead up to a lower residual.
Buy hey, I don't make the rules. I prefer just to buy.
You had me until the end.
You cannot negotiate a residual.
Since lease payments are ENTIRELY based off the residual (and then finalized with an interest rate), you cannot create payments that lead to a lower residual.
What you are saying is incorrect and makes no sense.
The only one who does not care about the residual is the one buying because they simply love the car. Anyone looking at it from a financial sense, is heavily invested in the residual.
Finally, not to be rude, but with the way Lexus is pushing cars recently - only the suckers are the ones buying.
12-20-15, 02:11 PM
#18
You had me until the end.
You cannot negotiate a residual.
Since lease payments are ENTIRELY based off the residual (and then finalized with an interest rate), you cannot create payments that lead to a lower residual.
What you are saying is incorrect and makes no sense.
The only one who does not care about the residual is the one buying because they simply love the car. Anyone looking at it from a financial sense, is heavily invested in the residual.
Finally, not to be rude, but with the way Lexus is pushing cars recently - only the suckers are the ones buying.
You cannot negotiate a residual.
Since lease payments are ENTIRELY based off the residual (and then finalized with an interest rate), you cannot create payments that lead to a lower residual.
What you are saying is incorrect and makes no sense.
The only one who does not care about the residual is the one buying because they simply love the car. Anyone looking at it from a financial sense, is heavily invested in the residual.
Finally, not to be rude, but with the way Lexus is pushing cars recently - only the suckers are the ones buying.
No worries about being rude, I didn't base my decision to buy for financial reasons...it's hard to modify your car and stay within your lease terms( see link). Another thing that is understandable, assumptions.
https://www.clublexus.com/forums/rc-...0-f-sport.html
12-20-15, 02:27 PM
#19
Lexus Champion
I disagree: the only suckers are the ones that don't buy their car for cash.
you lease, you are out your down payment plus your lease payments and at the end of the lease you have nothing to show for your money, if you opt to buy the car you then have to finance the remaining for another 5 years, so essentially you are making payments for upwards of 8 years on the car.
if you buy with a loan, unless you put a ***** ton of money down, you will be upside down on the loan most likely for the life of the loan, if you trade in you may end up with that upside down pushed into another loan.
at the end of it you have a car worth 1/25th or less of it's MSRP.
---
if you pay cash then while the car will depreciate over time you will never owe more than the car is worth. At any time you can sell it or trade it in for another vehicle of equal or greater value.
---
The only time I finance is if I can get a rate lower than I am earning on my money/investments. Which hasn't happened in a decade, and even at that the smart move is to invest the same as you finance, so that if the interest you are paying on your loan becomes more than what you are earning on your investments, you cash out and pay off the vehicle.
cars are depreciating assets they are always a losing bet, you can't buy a car based on emotion or impulse. if you do you end up further down on the losing end of it.
I was taught by my father a very simple rule, the out the door price of a vehicle should never be more than your NET income for 6 months, if it is you can't afford the car.
Last edited by mjeds; 12-21-15 at 10:13 AM.
12-20-15, 11:53 PM
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12-20-15, 11:54 PM
#23
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Yup you got screwed.
I know people getting a 2015 RC350, loaded, in the $400s with nothing down. Put down $2000 + taxes and fees, and my broker gets you get car for $300 a month.
Whats worst, is you bought the car from the same dealer my broker uses. If you would have asked in the forums, I could have helped. My GF got her IS250 fully loaded from Jim Falk (via my broker), put $2000 down +taxes/fees (no credit, fresh college grad) and pays $189 a month + tax.
Right now is the worst time to buy a 2016, when lots are still loaded with 15's you can get dirt cheap!
Unfortunately since you signed the contract, you can't change your terms. Only way out is to lemon law the car (its a Lexus, not likely to happen) or you can sweet talk the dealer into releasing your contract if you buy a RC350 (have seen this happen with people who get the 350, and then decide they prefer the F).
1) why did you choose 36 months?
2) do you know what your MF was?
36 months is the worst way to lease a Lexus right now, as its the period between 24-36 months of ownership where the value of the car tanks the most. Figure it like this using my made up numbers: on a 24 month lease the car will have an 80% residual, but on a 36 month lease will only have 60% - hence you are paying 40% of the car in 3 years instead of 20% over 2 - you can see why that inflates payments by a large amount.
The best thing to do is lease for 24 months, and if your really love the car, buy it. Its a Lexus, you can keep it 8-9 years no problem, if thats your thing.
Also, its never advertised but you need to see what Money Factor (aka interest rate) Lexus Financial Services is offering for the car at the time of purchase. Lexus sets the initial %, as the baseline, but the dealer is allowed to inflate that as well. If the dealer changed your % from 1.5 to 4, which is entirely possible here, it will again screw up the payments.
IMO - you were either shafted by the dealer because you did not pay attention / do research prior to purchase, OR - you have bad credit and got shafted by the dealer. (not a personal attack on you! Im just stating the logical conclusions from evidence provided). If its bad credit, use this bad stroke of luck as an opportunity to improve your credit, and make every payment on time.
Just enjoy the car and learn from your mistakes for next time. Because seriously, thats the payment I could get on a RC-F with a bit down.
I know people getting a 2015 RC350, loaded, in the $400s with nothing down. Put down $2000 + taxes and fees, and my broker gets you get car for $300 a month.
Whats worst, is you bought the car from the same dealer my broker uses
. If you would have asked in the forums, I could have helped. My GF got her IS250 fully loaded from Jim Falk (via my broker), put $2000 down +taxes/fees (no credit, fresh college grad) and pays $189 a month + tax.Right now is the worst time to buy a 2016, when lots are still loaded with 15's you can get dirt cheap!
Unfortunately since you signed the contract, you can't change your terms. Only way out is to lemon law the car (its a Lexus, not likely to happen) or you can sweet talk the dealer into releasing your contract if you buy a RC350 (have seen this happen with people who get the 350, and then decide they prefer the F).
1) why did you choose 36 months?
2) do you know what your MF was?
36 months is the worst way to lease a Lexus right now, as its the period between 24-36 months of ownership where the value of the car tanks the most. Figure it like this using my made up numbers: on a 24 month lease the car will have an 80% residual, but on a 36 month lease will only have 60% - hence you are paying 40% of the car in 3 years instead of 20% over 2 - you can see why that inflates payments by a large amount.
The best thing to do is lease for 24 months, and if your really love the car, buy it. Its a Lexus, you can keep it 8-9 years no problem, if thats your thing.
Also, its never advertised but you need to see what Money Factor (aka interest rate) Lexus Financial Services is offering for the car at the time of purchase. Lexus sets the initial %, as the baseline, but the dealer is allowed to inflate that as well. If the dealer changed your % from 1.5 to 4, which is entirely possible here, it will again screw up the payments.
IMO - you were either shafted by the dealer because you did not pay attention / do research prior to purchase, OR - you have bad credit and got shafted by the dealer. (not a personal attack on you! Im just stating the logical conclusions from evidence provided). If its bad credit, use this bad stroke of luck as an opportunity to improve your credit, and make every payment on time.
Just enjoy the car and learn from your mistakes for next time. Because seriously, thats the payment I could get on a RC-F with a bit down.
12-23-15, 07:25 AM
#25
Pole Position
I disagree: the only suckers are the ones that don't buy their car for cash.
you lease, you are out your down payment plus your lease payments and at the end of the lease you have nothing to show for your money, if you opt to buy the car you then have to finance the remaining for another 5 years, so essentially you are making payments for upwards of 8 years on the car.
if you buy with a loan, unless you put a ***** ton of money down, you will be upside down on the loan most likely for the life of the loan, if you trade in you may end up with that upside down pushed into another loan.
at the end of it you have a car worth 1/25th or less of it's MSRP.
---
if you pay cash then while the car will depreciate over time you will never owe more than the car is worth. At any time you can sell it or trade it in for another vehicle of equal or greater value.
---
The only time I finance is if I can get a rate lower than I am earning on my money/investments. Which hasn't happened in a decade, and even at that the smart move is to invest the same as you finance, so that if the interest you are paying on your loan becomes more than what you are earning on your investments, you cash out and pay off the vehicle.
cars are depreciating assets they are always a losing bet, you can't buy a car based on emotion or impulse. if you do you end up further down on the losing end of it.
I was taught by my father a very simple rule, the out the door price of a vehicle should never be more than your NET income for 6 months, if it is you can't afford the car.
you lease, you are out your down payment plus your lease payments and at the end of the lease you have nothing to show for your money, if you opt to buy the car you then have to finance the remaining for another 5 years, so essentially you are making payments for upwards of 8 years on the car.
if you buy with a loan, unless you put a ***** ton of money down, you will be upside down on the loan most likely for the life of the loan, if you trade in you may end up with that upside down pushed into another loan.
at the end of it you have a car worth 1/25th or less of it's MSRP.
---
if you pay cash then while the car will depreciate over time you will never owe more than the car is worth. At any time you can sell it or trade it in for another vehicle of equal or greater value.
---
The only time I finance is if I can get a rate lower than I am earning on my money/investments. Which hasn't happened in a decade, and even at that the smart move is to invest the same as you finance, so that if the interest you are paying on your loan becomes more than what you are earning on your investments, you cash out and pay off the vehicle.
cars are depreciating assets they are always a losing bet, you can't buy a car based on emotion or impulse. if you do you end up further down on the losing end of it.
I was taught by my father a very simple rule, the out the door price of a vehicle should never be more than your NET income for 6 months, if it is you can't afford the car.
the lease only and the lease then finance trends that seems to be popular, at least theoretically, around certain parts of clublexus seems to be fallacious in that it assumes that one is going to keep the vehicle for a shorter period of time and that one wants payments for longer than one would typically have them with the lease + purchase option, regardless of whether purchasing cash or whether financing at a low rate while putting down a good chunk of cash as a down payment.
disclaimer: i've never leased, i've always done the latter of the last paragraph -- financed at a low rate, putting down a significant amount down.
Last edited by davyjordi; 12-23-15 at 07:29 AM.
12-23-15, 11:19 AM
#26
Lexus Champion
I typically do the same if not pay cash outright.
my last 2 vehicles (prior to the RCF) were financed as I had stepped up in level and cost.
but in each case I never financed more than 36 months, so the down payment was significant. I will typically keep a vehicle 6-8 years, make payments or 3 years, then after the payments are done, bank the payment amount for the next 3-5 years as the down payment for the next vehicle.
but I've always done well with saving.. I banked more than 50% of my paycheck for 10 years so I was capable of paying cash for my home, while I did finance 25% of the cost of the home and used the remaining savings to do some remodeling before moving in, my mortgage is only ~$400 a month to which I pay double or triple each month and will have it cleared in under 10 years.
I've always been of the mindset that if I want something I save for it, if I still want it after the money is saved it was worth waiting for, there are times when I will want something, save for a few months and then decide against getting it.. This mentality keeps the impulse buying in check for the most part.
12-28-15, 10:54 AM
#29
Lexus Test Driver
Dude, don't get worked up by the virtual world dorks that spend more time on the Internet talking about cars than driving one or even owning the cars they are talking about.
$350, $400 a month for a $52k to $55k car with little or nothing down. Whateva. It's the Internet and all the virtual worldies always has the biggest, the best, the cheapest and on and on, but they usually ain't got the car or a hot chick to go with the car . . .
Did you get the best deal possible? Perhaps not, but who cares. It also depends on when you purchased, where you purchased and what you purchased. The base rates or incentives could have changed. Lol, some people spend more $$$ is lost billing or opportunity costs than they save by spending the time getting that extra $500 off.
Lol, at mizer types talking like a car is an investment and stressing over paying a couple a percent interest on something. These cars are to be enjoyed. They are not investments. Buy Kia if you want financially practical as it also gets you from point A to point B. You cannot take your interest saved, money horded away in tin cans or any of this stuff with you. Enjoy life, enjoy your car and take any of the above bs with a grain of salt.
I do executive leases on many exotic cars and ballon payments my Porsche GT3s, turbos and etc. Why? Because I enjoy the heck out of driving Italian and high end sports cars and I rather put my cash to other uses. I don't care if any of it makes financial sense, because having a 458 and a Gallardo Spydet does not make any financial sense to begin with . . .
I do two-year short term, usually single payment, leases on all of my daily drivers and it makes perfect financial sense. Buying a keeping any car for 6 to 8 years, well that is ridiculous in my book as I like having new cars, under warranty and I like to get the latest and greatest thing out.
I suppose some get their kicks sitting around counting their pennies, bragging about and being Internet king of the best deal makers, and knowing their tin cans buried in the yard are full of the hundreds they saved from not paying that money factor or 2% interest.
I certainly would not let such types rain on your parade or get you down about your purchase or deal, especially those thinking they can drive off in a $55k car for $350 a month with nothing down. Funny stuff. Keeps me coming back for more entertainment.
$350, $400 a month for a $52k to $55k car with little or nothing down. Whateva. It's the Internet and all the virtual worldies always has the biggest, the best, the cheapest and on and on, but they usually ain't got the car or a hot chick to go with the car . . .
Did you get the best deal possible? Perhaps not, but who cares. It also depends on when you purchased, where you purchased and what you purchased. The base rates or incentives could have changed. Lol, some people spend more $$$ is lost billing or opportunity costs than they save by spending the time getting that extra $500 off.
Lol, at mizer types talking like a car is an investment and stressing over paying a couple a percent interest on something. These cars are to be enjoyed. They are not investments. Buy Kia if you want financially practical as it also gets you from point A to point B. You cannot take your interest saved, money horded away in tin cans or any of this stuff with you. Enjoy life, enjoy your car and take any of the above bs with a grain of salt.
I do executive leases on many exotic cars and ballon payments my Porsche GT3s, turbos and etc. Why? Because I enjoy the heck out of driving Italian and high end sports cars and I rather put my cash to other uses. I don't care if any of it makes financial sense, because having a 458 and a Gallardo Spydet does not make any financial sense to begin with . . .
I do two-year short term, usually single payment, leases on all of my daily drivers and it makes perfect financial sense. Buying a keeping any car for 6 to 8 years, well that is ridiculous in my book as I like having new cars, under warranty and I like to get the latest and greatest thing out.
I suppose some get their kicks sitting around counting their pennies, bragging about and being Internet king of the best deal makers, and knowing their tin cans buried in the yard are full of the hundreds they saved from not paying that money factor or 2% interest.
I certainly would not let such types rain on your parade or get you down about your purchase or deal, especially those thinking they can drive off in a $55k car for $350 a month with nothing down. Funny stuff. Keeps me coming back for more entertainment.
Last edited by DougHII; 12-28-15 at 11:43 AM.
12-28-15, 01:06 PM
#30
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Dude, don't get worked up by the virtual world dorks that spend more time on the Internet talking about cars than driving one or even owning the cars they are talking about.
$350, $400 a month for a $52k to $55k car with little or nothing down. Whateva. It's the Internet and all the virtual worldies always has the biggest, the best, the cheapest and on and on, but they usually ain't got the car or a hot chick to go with the car . . .
Did you get the best deal possible? Perhaps not, but who cares. It also depends on when you purchased, where you purchased and what you purchased. The base rates or incentives could have changed. Lol, some people spend more $$$ is lost billing or opportunity costs than they save by spending the time getting that extra $500 off.
Lol, at mizer types talking like a car is an investment and stressing over paying a couple a percent interest on something. These cars are to be enjoyed. They are not investments. Buy Kia if you want financially practical as it also gets you from point A to point B. You cannot take your interest saved, money horded away in tin cans or any of this stuff with you. Enjoy life, enjoy your car and take any of the above bs with a grain of salt.
I do executive leases on many exotic cars and ballon payments my Porsche GT3s, turbos and etc. Why? Because I enjoy the heck out of driving Italian and high end sports cars and I rather put my cash to other uses. I don't care if any of it makes financial sense, because having a 458 and a Gallardo Spydet does not make any financial sense to begin with . . .
I do two-year short term, usually single payment, leases on all of my daily drivers and it makes perfect financial sense. Buying a keeping any car for 6 to 8 years, well that is ridiculous in my book as I like having new cars, under warranty and I like to get the latest and greatest thing out.
I suppose some get their kicks sitting around counting their pennies, bragging about and being Internet king of the best deal makers, and knowing their tin cans buried in the yard are full of the hundreds they saved from not paying that money factor or 2% interest.
I certainly would not let such types rain on your parade or get you down about your purchase or deal, especially those thinking they can drive off in a $55k car for $350 a month with nothing down. Funny stuff. Keeps me coming back for more entertainment.
$350, $400 a month for a $52k to $55k car with little or nothing down. Whateva. It's the Internet and all the virtual worldies always has the biggest, the best, the cheapest and on and on, but they usually ain't got the car or a hot chick to go with the car . . .
Did you get the best deal possible? Perhaps not, but who cares. It also depends on when you purchased, where you purchased and what you purchased. The base rates or incentives could have changed. Lol, some people spend more $$$ is lost billing or opportunity costs than they save by spending the time getting that extra $500 off.
Lol, at mizer types talking like a car is an investment and stressing over paying a couple a percent interest on something. These cars are to be enjoyed. They are not investments. Buy Kia if you want financially practical as it also gets you from point A to point B. You cannot take your interest saved, money horded away in tin cans or any of this stuff with you. Enjoy life, enjoy your car and take any of the above bs with a grain of salt.
I do executive leases on many exotic cars and ballon payments my Porsche GT3s, turbos and etc. Why? Because I enjoy the heck out of driving Italian and high end sports cars and I rather put my cash to other uses. I don't care if any of it makes financial sense, because having a 458 and a Gallardo Spydet does not make any financial sense to begin with . . .
I do two-year short term, usually single payment, leases on all of my daily drivers and it makes perfect financial sense. Buying a keeping any car for 6 to 8 years, well that is ridiculous in my book as I like having new cars, under warranty and I like to get the latest and greatest thing out.
I suppose some get their kicks sitting around counting their pennies, bragging about and being Internet king of the best deal makers, and knowing their tin cans buried in the yard are full of the hundreds they saved from not paying that money factor or 2% interest.
I certainly would not let such types rain on your parade or get you down about your purchase or deal, especially those thinking they can drive off in a $55k car for $350 a month with nothing down. Funny stuff. Keeps me coming back for more entertainment.
after 3 years I'll be looking into either Jag f-type or audi s5Ur the man