Cruiseman

Has anyone here done a one-payment lease on a 2012? I am shopping and wonder what kind of a deal you can get?

3-Year lease/10k per year

jtrue28

What exactly does that mean? Instead of paying the monthly lease payment you just do 1 payment up front for the entire amount of the lease? That sounds like an awful idea.

Cruiseman

Yes, it is setup to where you make a single payment for the 3-year lease up front. The advantage is a considerable savings in interest ($4,000 to $5,000). For me, I don't like the hassle of making monthly payments and I HATE paying interest.

InRBigness

Uhmmm, maybe I am missing somthing but is that not the same as paying cash for the vehicle?

Cruiseman

Sort of. However it gives me three years to drive the car and I have the "option" of buying or giving it back. If I pay cash for the car, I have to lay out $45k up front. At the end of three years, I have to deal with selling the car if I want to get into a new one. With the lease, I am only out the $17k up front. If at the end, I want to buy, I can. Or, I can just turn it back in.

Also, lets say the car is in an accident within the lease period and has, say $5000 in damage. That will show up on Car-Fax and reduce the resale value of the car. If I buy the car, I will take that hit. On the lease, Lexus HAS to take the car back with no penalty to me, as long as I have the car repaired.

Stemmer

Don't have any figures for you but here is a good article comparing single payment to monthly payments. It can save some money but make sure you know how the offer is calculated in terms of interest. I see you are already aware of the damage risks.

http://www.leaseguide.com/sn/prepaid-lease.htm

xfirechief

For us it was a good idea. It saves u money as the interest is much less with one payment plan.

markrivers

You just gave me an idea.
Thanks!

Vroomin350

iTrader: (28)

please please please (even though you seem to be pretty aware) make sure they break down the deal for you with a fine point pen. some of these dealers will try to take advantage of you when they see your willing to throw out such amounts of money.


haha I just realized I forgot how to properly say the expression "with a fine point pen"... anyone?

UCSB

A friend of mine leased a 2010 450h on a 3 year, 10k miles/yr single payment lease. He got a good discount on the vehicle cost basis and essentially a zero interest rate on the lease period. It seemed like a good deal at the time. I remember thinking at the time that if you added his lease buy out amount at the end and the amount he put into the deal initially together, it was close to the new cost of the vehicle (actually less I think). One good aspect is that you don't pay all of the sales tax up front (and possibly some other fees). Anyway, if you have the cash it is worth discussing with your Lexus dealer.

I purchased my RX 450h and put down more than the single lease payment amount as a down payment. I have often wondered which approach would have been cheaper. Unfortunately, I did not hear about his lease until after I have purchased my RX.