Lease Vs. Purchase
05-18-13, 01:15 PM
#31
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Leasing is not a bad deal, I have leased several vehicles over the years, most of the time I do a one-time payment for a 36 month lease with a 12,000 mile/year. Works well for me over the years, some cars have actually exceeded the residual value and you can make a little money. Most do not, I just turn them in and do another, tires and regular maintenance is all that is done.
05-18-13, 06:18 PM
#32
Lexus Fanatic
If nothing, we'll buy it as is. We love the car! But just to confirm my earlier post, this wasn't a factor for us to buy or lease. However, some may look into this as a deal breaker.In general, if you are going to buy its better to buy it from the getgo than to lease then buy.
05-18-13, 09:59 PM
#33
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definitely lease.. right now there's a $2500 rebate on GS350 and you can always buy out the lease if you want to own the car. If you planning to sell the car in 3-5 years, lease is much better. You don't pay sales tax on the full price of the car if you lease.
05-18-13, 11:29 PM
#34
Instructor
- What was your dealership?
- What was your money factor?
- What was part of your drive off?
05-18-13, 11:31 PM
#35
Instructor
My wife and I just purchased(leased) our first Lexus, the GS350 F Sport last week and we've had this discussion many times to see what we enjoy and what we can afford to lose. Personally, the questions I narrowed down to is:
- How much do we like a car and how much are we willing to lose for that car. 5k? 10k? 15k?..etc
- Do we like to drive new cars all the time or do we like to keep or build a car for 10+ years? Keep in mind the human mind changes constantly. We may feel happy today and sad tomorrow. We may like Scion FS-R, while tomorrow, we may feel we like something more quiet and more luxury..etc.
Personally, I tend to like lease after my analysis. Lease is a good way to test a car; if you decide to keep it, the lease amount you paid can go towards the car. If you decide you don't want it, then return it and take the loss. Think about all the cars we all had bought from the lot or pretty new, used cars from a dealer, and in general, I bet most of us, including myself, lost at least 10k per vehicle. If talking car, I feel like we always lose money. It's just lease, you lose that money quicker if you decide to return it. If you keep it, you lose over time and at the end of the day when you try to sell yourself, you may have a hard time getting rid of it or lose more.
So with that said, obviously, you'll have more questions to ask before you purchase, but I don't really look at the specific residual #s or what not. C'mon, what do I care about the value of a Lexus? That doesn't kill the deal for me. I like the car and I will try to get the car I like. #s won't make me change my mind to buy a Corolla. It's a Lexus! High end luxury car(debateable..
) I just look to see if i can afford it monthly and negotiate the monthly payments to my liking and go from there. If you look at #s, in general, it's never "good" and a dealer will ALWAYS win, otherwise they're not going to sell it. If I was trying to save money, I'd get a used car.
Our issue now is we want to keep it, so the estimated amount is about $39k after our lease (in 27 months) We will try to negotiate the price when that time comes to maybe about $35k and we'll buy it. Our monthly payment right now is about $512, everything, with added protection plan w/ 3k down. It was "supposed to be" $5,500k down, but "supposedly" they had a deal and Lexus gave us $2,500. Overall selling cost was about $52k.
Sorry for the long post....
- How much do we like a car and how much are we willing to lose for that car. 5k? 10k? 15k?..etc
- Do we like to drive new cars all the time or do we like to keep or build a car for 10+ years? Keep in mind the human mind changes constantly. We may feel happy today and sad tomorrow. We may like Scion FS-R, while tomorrow, we may feel we like something more quiet and more luxury..etc.
Personally, I tend to like lease after my analysis. Lease is a good way to test a car; if you decide to keep it, the lease amount you paid can go towards the car. If you decide you don't want it, then return it and take the loss. Think about all the cars we all had bought from the lot or pretty new, used cars from a dealer, and in general, I bet most of us, including myself, lost at least 10k per vehicle. If talking car, I feel like we always lose money. It's just lease, you lose that money quicker if you decide to return it. If you keep it, you lose over time and at the end of the day when you try to sell yourself, you may have a hard time getting rid of it or lose more.
So with that said, obviously, you'll have more questions to ask before you purchase, but I don't really look at the specific residual #s or what not. C'mon, what do I care about the value of a Lexus? That doesn't kill the deal for me. I like the car and I will try to get the car I like. #s won't make me change my mind to buy a Corolla. It's a Lexus! High end luxury car(debateable..
) I just look to see if i can afford it monthly and negotiate the monthly payments to my liking and go from there. If you look at #s, in general, it's never "good" and a dealer will ALWAYS win, otherwise they're not going to sell it. If I was trying to save money, I'd get a used car.Our issue now is we want to keep it, so the estimated amount is about $39k after our lease (in 27 months) We will try to negotiate the price when that time comes to maybe about $35k and we'll buy it. Our monthly payment right now is about $512, everything, with added protection plan w/ 3k down. It was "supposed to be" $5,500k down, but "supposedly" they had a deal and Lexus gave us $2,500. Overall selling cost was about $52k.
Sorry for the long post....
05-18-13, 11:34 PM
#36
Instructor
I bought my first Lexus last Tuesday. Actually, I leased my first Lexus last Tuesday. I traded a 2012 Mustang GT which I was upside down on, due to the fact I only had it one year. Also, the car I traded on it, BMW 550i, had negative equity too which was added to the loan. You see I am always trading cars for one reason or another, I just get bored with cars too easily. Yet, I do own a '00 Toyota Tundra and a '05 Sequoia. So the third car never gets to stick around long!
Since I rarely keep my third car longer than 2 years and I had tons of negative equity, I decided leasing was best FOR ME. I have leased before, a Maxima and a Z-4, the both worked out great, but I did trade the Maxima after 9 months! Hey, what can I say!
I've listened to Dave Ramsey on a number of occasions. He definitely gives out good and sound financial advice, but you will be sacraficing ALOT over the duration of your life. His way of doing things is not for me, too much emphasis on sacraficing during your youthful productive years to only have loads of money when you're old and retired. Sorry, but I want to enjoy the journey all the way to the end! In my journey I like to experience as many different nice cars as I can afford. You have to decide on your journey what you enjoy and DO IT! For me to drive the same car/truck and only that for 10-15 yrs just ain't gonna happen...that to me is BORING, BORING, BORING!!! Fortunately, for me I am blessed enough to do this...Thank God!!!
Loving the GS 350 by the way! Even though it sits in the garage 80-90% of the week. I've yet to read what the forum policy is on dealer recommendations, so I want here. If you PM me I'll tell you my deal. They really deserve a "shout-out".
Since I rarely keep my third car longer than 2 years and I had tons of negative equity, I decided leasing was best FOR ME. I have leased before, a Maxima and a Z-4, the both worked out great, but I did trade the Maxima after 9 months! Hey, what can I say!
I've listened to Dave Ramsey on a number of occasions. He definitely gives out good and sound financial advice, but you will be sacraficing ALOT over the duration of your life. His way of doing things is not for me, too much emphasis on sacraficing during your youthful productive years to only have loads of money when you're old and retired. Sorry, but I want to enjoy the journey all the way to the end! In my journey I like to experience as many different nice cars as I can afford. You have to decide on your journey what you enjoy and DO IT! For me to drive the same car/truck and only that for 10-15 yrs just ain't gonna happen...that to me is BORING, BORING, BORING!!! Fortunately, for me I am blessed enough to do this...Thank God!!!
Loving the GS 350 by the way! Even though it sits in the garage 80-90% of the week. I've yet to read what the forum policy is on dealer recommendations, so I want here. If you PM me I'll tell you my deal. They really deserve a "shout-out".
05-19-13, 10:23 AM
#37
Lexus Fanatic
05-20-13, 07:06 AM
#38
Driver School Candidate
By protection plan, I just meant the dent removal, minimum ppf, and tires. I dunno if every lexus offers this but it equalled to about 1k$. The tire protection is that lexus required the tires to be at least 50% when the lease is up or we're responsible for new tires. About $850 for the plan. The other is ppf for door cups and edges and dent removal. They claimed if we didn't buy it they will remove the film. We didn't care much about the film, we jus wanted the dent plan which is about 300.
05-20-13, 07:25 AM
#39
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I don't have the info in front of me, but the #'s below are pretty close:
MSRP- $52900
Selling Price - $48500
Trade Value- $24000
Upside down- $6000
Money down- $5000
Lexus money- &2400
MF- .00095
Acq. Fee- $720
10k/yr 30 month lease monthly payment w/tax- $545
All those figures are othe top of my head. Not too bad, I guess. It worked for me. I wasn't too thrilled about the 5k down, but somebody had to pay for all that negative equity!
Anymore questions I'll have get the paperwork.
MSRP- $52900
Selling Price - $48500
Trade Value- $24000
Upside down- $6000
Money down- $5000
Lexus money- &2400
MF- .00095
Acq. Fee- $720
10k/yr 30 month lease monthly payment w/tax- $545
All those figures are othe top of my head. Not too bad, I guess. It worked for me. I wasn't too thrilled about the 5k down, but somebody had to pay for all that negative equity!
Anymore questions I'll have get the paperwork.
Last edited by Jq3; 05-20-13 at 07:29 AM.
05-20-13, 08:27 AM
#40
Instructor
I don't have the info in front of me, but the #'s below are pretty close:
MSRP- $52900
Selling Price - $48500
Trade Value- $24000
Upside down- $6000
Money down- $5000
Lexus money- &2400
MF- .00095
Acq. Fee- $720
10k/yr 30 month lease monthly payment w/tax- $545
All those figures are othe top of my head. Not too bad, I guess. It worked for me. I wasn't too thrilled about the 5k down, but somebody had to pay for all that negative equity!
Anymore questions I'll have get the paperwork.
MSRP- $52900
Selling Price - $48500
Trade Value- $24000
Upside down- $6000
Money down- $5000
Lexus money- &2400
MF- .00095
Acq. Fee- $720
10k/yr 30 month lease monthly payment w/tax- $545
All those figures are othe top of my head. Not too bad, I guess. It worked for me. I wasn't too thrilled about the 5k down, but somebody had to pay for all that negative equity!
Anymore questions I'll have get the paperwork.
05-20-13, 01:24 PM
#42
Lexus Fanatic
Leasing is definitely best for you to keep you away from the negative equity...
05-24-13, 02:34 PM
#43
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Join Date: May 2013
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Purchase a Lexus, lease an Audi or BMW. Lexus' are so reliable and their resale value is so good that if you are going to hold on to the car for 5 years it makes perfect sense to buy it.
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