the only thing he does on the side is video games and model cars. He is losing his mind. Ok I will shut up thanks to all

 

He's a fool to do that deal, and if you're a true friend you'll tell him that.. Steer him to a used Lexus and get him out of that deal.
If he goes through with that deal he'll be paying $800 a month on a rented car that is depreciating faster than he's paying for it. It will also prevent him from buying an apreciating asset such as a house.
He's built a great credit score and will probably negate that with this deal.

I'll say it again, he's a fool, and you need to say something.

 

if he is getting the job, i dont see why it is such a big deal...$5000 monthly is more than enough to drive around in the IS.....but on the other $800 for a lease is ridiculous when you can pretty much buy the car for amount with the right financing plans

 

well if he gets the job yes than it's no big deal but it's a big deal when his girl works three jobs to feed them and there kid and he plays video games all day. He then "might" get this job and she is so in the can with her self esteem she lets him do this. Ok, ok back to the jsubject. He even called me before he went to the lot to ask me one more time my sales guys name who is Jim in which I have bught 7 cars from, well he gets there and doesn't even ask for him and lets the first guy in the lot talk him into it. I said why did you call me to ask Jims name? Why go to another guy. He claims my guy wasn't there. Which he was. Well 20 minutes later he signed his lfe over. He paid over 50k to lease a IS350. Anyways he will learn someday but at the expense of his family

 

Well, if his new job is going to be paying him $5000 a month he should be fine. He is not making the best financial decision, but if he bult up his credit score the way you describe by paying off all his credit debt on time in full each time than he is not exactly wreckless. He may be pushing it a bit by using about 20% of his monthly income toward his car, but if he has no other debt and that is they way he wants to spend his money right now I say let him be. Given his past history with credit it sounds like he probably will make his payments on time however he scrapes the money together.

That said, $750-$800 a month for an IS350 lease is kind of a crappy lease deal IMHO. I think he could have done better than that.

 

You clearly care about you "friend" but you also sound a bit too critical. At this point, as someone else said, with the lease deal already in place he can't exactly back-out without some penalties. So asking us if your friend is a fool and if you should set him straight are moot points. Theres really nothing you can do about it. Wait a bit and see if he get's his $5k/month job. If he doesnt then He should have no problems. If he doesnt then he needs to figure something else out.

As far as how his family manages to survive and how he cares for them or doesnt, it really isnt something you should be too involved in at least IMO. Perhaps taking a step back a bit and looking at the situation more as a friend than a critic is the best thing in this instance...

 

5k/month in cali is much different than 5k/month somewhere else, that shouldve been taken into consideration. Signing a lease before he even gets the job wasnt a smart idea, and even if he gets this job is it secure

 

kind of... so you pay more for rent if you live in OC, so what? 5k per month should be more than fine for any lexus.

In any case, he is way overreacting. It aint his life. He can suggest something and give his advice, but thats where it stops. And he definetly should not explain things to his cousins woman, we all know where that all leads to, and it is not an good road to travel.

 

That is one nice thing about Saturn. They let you bring the car back within 30 days for a full refund, assuming a clear title and no significant damage. I actually did that once when an SC2 I bought turned out to be unacceptable.

 

What the ****???

 

Your a good guy for being concerned, but if you harp him or make him feel bad, you'll screw up a good friendship. I know, I got tired of hearing my friend telling me how wrong I was and about all of the mistakes I was making. We dont talk anymore, at all.

He's young, and hopefully will learn quickly from the mistake. The most he can get taken for is early lease return and damage is they take the car... he's actually not doing to bad other than it being very expensive.

He'll learn.

 

Well $5K is gross not net of taxes I assume for one thing, and in CA, it's almost as bad as where you live. Then he's got other expenses than just his Lexus. So it's not clear if that income will be anywhere near enough.

 

Like mmarshall said, we don't know the full story of his situation.

Unless he just graduated from college I can't think of many jobs that will let him jump from being a bus boy to making $5K a month. If he doesn't own a home, he will likely get raped with income tax, so he might take home $3500/month.

The $800 a month payment might be manageable if he lives at home, but if he's paying $1000 a month for rent (plus utilities, cell phone, insurance, gas, etc.), he's definitely going to feel financially squeezed. Like others have said, he should definitely check the price of insurance for a car like this... if he's under 25 and has ANY kind of driving record issues, insurance will likely be high.

If he has a lady and a baby, he really should think about them first. A kid will EASILY cost you $1K a month (unless he is a deadbeat dad).

I ran a couple of quick numbers through a loan calculator. It sounds like he's getting soaked on the lease. For a few $ more on a 60 month term, he could OWN the IS:

Auto loan amount $50,000
Auto loan term 5 years
Interest rate 6.00%
Monthly auto loan payment $966.64

I had a quick look at lease calclator.
Even is the car is only worth $30K after 48 months and the acquisition cost are $1000,
with 7.75% sales tax and a .00275 money factor (about 6.6% interest) his paymeny should be
somewhere around $660 per month plus $51 tax - about $711 per month.

 

$5000 a month as a busboy????? Thats hard to believe, but wow $800 a month for a lease is pretty steep! I don't pay that much for my GS and I'm buying it , a lesson to be learned.

 

no his new job at the smelter will pay 5k a month his job now pays 1,000 a month. So he would rather have his wife work two jobs so he can use his monthly 1,000 income for the car. The 5k a month job he hsn't even got yet. Back to the ? guys is a 750 credit score with no money down and a lease payment of 800 a month on a 48 month lease a bad deal?