I'm thinking about leasing... Need advice on what to expect and what to pay.
It's probably rude of me to ask, but for those willing to share...

How much are you paying on your lease?

What are the terms of your lease?

What did you put down?

Ya know, the whole bit. I'm pretty much hoping that you guys can help me determine where I should be with this.
If you would be more comfortable sending a pm with the details, I would appreciate it just as much.

Thank you all!

 

The "Price thread - What kind of deal did you get" answers these questions......over and over.

https://www.clublexus.com/forums/gs-...d-you-get.html

 

f sport nav ml bsm ipa and other litttle things, 1500 driveoff, 1500 rebate 10000mi per year, 27 months $536 tax not included.

QUOTE=bentleymp2;7479327]I'm thinking about leasing... Need advice on what to expect and what to pay.
It's probably rude of me to ask, but for those willing to share...

How much are you paying on your lease?

What are the terms of your lease?

What did you put down?

Ya know, the whole bit. I'm pretty much hoping that you guys can help me determine where I should be with this.
If you would be more comfortable sending a pm with the details, I would appreciate it just as much.

Thank you all![/QUOTE]

 

It really depends on your objectives.

Many people want the most car at the lowest payment and their expectation is to get rid of the car at the end of the lease.

If that is the case, you negotiate the lowest price first, just as if you were going to buy the car. The factoring rate (or underlying interest rate) is extremely important. The lower the rate means a lower payment. The higher the residual at the end of the lease will also mean a lower payment. The next thing to determine is the lenght of time for th lease. If you get tired of the car after 3 years, do not get a 48 or 60 month lease becasue you end up getting hit pretty hard on the back end of teh lease if you end it early.

I on the other had use a lease differently. Because I use the car for business purposes I can deduct all cost of the car including lease payments in the same percentge I use the car for business purposes. So if I use the car 75% of the time for business, I can deduct 75% of all expenses. I am not interested in the lowest lease payment however. I am looking for the highest lease payment allowable to get the deduction because I intend to buy the car at the end of the lease.

I negotiate the best price as in the first example and then I have the lease company provide a 36 month lease payment based on a residual of 40.5% of MSRP. Of course they calulate this at the best factoring rate. The lease payment will be much higher than the traditional lease but my buyback or residual will be much lower. (by teh way. 40.5% is only good for a 36 month lease.)

This process gives me a much greater deduction for the first 36 months, but also it will give me an opportunity to buy the car at a lower price because the residual is so low.

This is the method I have used for the last 20 years and it works great if you intend to keep the car for a long time.

If you plan to get rid of the car, go for the first option.