BobbyNY

Greetings to all.. Am in the process of shopping for a new family car and with gas prices where they are am seriously considering the 400H. Understand the economics of the extra 5 k premium for hybrid technology doesnt necessarily offset the extra mpg , especially since we normally drive 10 k miles per year or less, but Im leaning this way anyway. Couple of questions if anyone can help:
Has anyone leased one yet and if so would you mind sharing details?
Secondly if one leases this car do they still qualify for 2 k IRS tax credit (or does that only pertain to purchasing the car?)
Thanks

uthorns197

$2,000 IRS tax DEDUCTION (not credit) for PURCHASE of eligible vehicle.
Keep in mind that the "extra $5K premium" is over and above an RX330. Compared to other vehicles, the premium can be much, much higher.

susie q

Additionally, the one time clean fuel deduction is up to $2K depending on your taxable income and tax bracket and applies only if the vehicle is put into use in 2005. Nevermind when you were on the waiting list if there are any in your area.
Also, the taxpayer needs to be the "original owner"
here's the website http://www.irs.gov/irs/article/0,,id=138807,00.html

BobbyNY

Thanks for those replies. Looks like no tax deduction for those who lease however understand Lexus may begin offering balloon payment financing whereby one would qualify for the deduction as the "purchaser/owner".
Got a lease offer with 6 k down and 32 monthly payments of 500. Likely sign on the dotted line tonight.

uthorns197

How much to buy the vehicle at the end of the lease?? How many miles can you put on per year??

BobbyNY

12 k miles per year with buyout of 34,900

uthorns197

Interesting...$500/month payment covers any and all maintenance for the entire term of the lease or you have to pay maintenance yourself??
Pretty steep residual. It'll be interesting to see what the vehicles will be worth in three years. I have already read about two power steering computer failures and one transmission leak. Dealer told the guy with the transmission leak that engine will need to be replaced. Ouch!!!

joako

I own an RX330 and it is a great car, but I would by no means every buy a hybrid car, even the same vehicle, unless it was priced the same. Hybrid technology IMO is worhless in its current stage, and unless you drive 30,000 city miles a year, you won't see the savings for quite a while. If you lease you will never see the savings.

Volkswagen has a pretty interesting engine called the TDI -- turbo direct injection -- which is diesel powered. The engine is offered in the Jetta, Golf and Passat. If you are looking into an RX, maybe the diesel powered Passat might be right for you. I strongly urge you to test drive one, I did so a few days ago and can tell you that everything you assumed or thought you knew about diesel engines are wrong. Infact, if I didnt; know that I was driving a diesel car I probably would have never guessed it.

uthorns197

Volkswagen used to offer the TDI in the Toureg but no more. That vehicle listed for well over $50K. Don't know why VW dropped the Toureg TDI.
Unfortunately, unlike Lexus, VWs are typically not reliable. The Toureg made Forbe's list of most unreliable vehicles for 2005.