That is paying for the miles up front; you just are not paying for it mile-by-mile, but rather paying for a block of miles. That makes the calculations easier (and I suspect that those who pay extra miles up front, on an individual mile basis, likely do not ask for 59 more miles per month but are asking for 60 miles more or 100 miles more, for example).

 

That's the issue, if you go from 15k you have to go to 18k, he'll have more miles than he needs. He's going to pay more than the mileage overage charge in lease cost if he does that. The jump in payment is about $50 a month for that, vs $21 for the penalty.

Other manufacturers you you can actually buy miles, even within the lease for a discounted rate. For instance if you look like you're using more, you can add discounted miles to the lease. Can't do that with Lexus.

My point is he can't select an extra 1,000 miles a year. Lexus does 7,500, 10k, 12k, 15k and 18k. Thats it.

 

Dealer offered me a 16k lease today, not 15. More I'm thinking about this, almost seems like a better option to go for a 3 year lease while putting on 48k miles in that time. Then at least I don't have to deal with a severely depreciated car since it's leased.

I would be fine keeping the car for at least 6 years, I would put 96k miles on it in that time. I'm assuming I would get garbage on a trade in that's 6 years old with almost 100k miles, right?

What do u guys think?

 

Do you absolutely have to have a brand spanking new car?!?! If you can get a car 1 or 2 years old, the depretiation (steep) is gone....that's almost always the best decision financially. The car is still basically new, you'll own it after your 3-5 years of paying for it, payments cheaper and you'll lose much less $$$ if you decide to get rid of it after let's say 5 years of ownership.
But SWL and Mmarshall do make good points, but they only apply is you have to have a new car.

V.

 

Assuming they are quoting you an LFS lease (they can source it with other banks) What they're doing there is charging you the .25c a mile and then building it into the lease. It's no different than if you paid the mileage excess at the end. That's not really a bad thing, the only issue is if you don't drive the extra mileage you can't get that money back.

I would question why the dealer is so focused on you leasing. What's the residual and money factor? I think you mentioned .0002 for the MF which is good, can you confirm that? What are the other terms, drive off costs, downpayment, etc?

Another thing is you do not want to put money down on a lease. If you were to total or lose the car you would lose that money. All putting money down on the lease does is prepay rent. Think of it as that, you're renting the car like you're renting an apartment. Would you put money down simply to reduce the rent by an equal amount spread out over the term?

Like I said, generally 5 years is a magic number. If you buy and finance for 5 years and trade and finance again, it's no more expensive to lease every 3 years. If you feel you can go 8 years and would be happy doing that though, that will be cheaper.

48k miles over 3 years is not unusually high mileage.

 

Yes, can confirm .0002 MF. $5000 is required as a down payment. Not sure of any other fees, just $398/month.

 

$5000 is not required as a downpayment. You can put $0 down, regardless of what they tell you.

Very bad idea to put $5,000 down in a lease

 

Sorry, didn't mean required, meant that's what his deal was. I see what you mean, that is a lot of money....but I know I can't handle a higher monthly payment so it looks like I will probably finance then....

 

What you do when you want to put money down, put it into a savings account and make pet of the payment out of it every month over the course of the lease.

Your payment will be higher if you finance...what sort of term for the finance are you looking at?

 

Looking at 1.9% but will probably only wind up financing about 10k so my payments will be very low.

 

If you're going to put money down, best to buy. 1.9 but for how long?

 

Either 2 years or 3 to finance.

 

Yeah for you if that's what you can do you're better off to buy. My numbers are based on financing the whole thing for 60 months. Buying will be cheaper for you.

 

Putting $5,000 on a lease is crazy - no wonder dealer is pushing you to lease.

You need to Negotiate a better lease structure.

 

The dealer doesn't care about the downpayment, makes no difference to them what you put down. He's likely doing the downpayment to keep the payment low because he's payment conscious.