2013 GS350 F Sport lease. Good deal?
06-24-13, 04:46 AM
#46
As for that, it's best to talk to the person that gave you that quote as to why it's that high.
It's always best to make them deal with your trade in and new car prices as seperate issues.
It's always best to make them deal with your trade in and new car prices as seperate issues.
Last edited by Stew4HD; 06-24-13 at 04:51 AM.
06-24-13, 05:38 AM
#47
The numbers make perfect sense. You, going in and saying I've never leased a car before, and I'm $13k underwater on my trade-in are screaming "sucker". Every $1k in capitalized cost in a lease comes out to roughly $29. So right off the bat, you are dumping an additional $400 into your base lease payment. Plus, they probably quoted you paying pretty much near MSRP on the car, and assuming you're going to pay $0 out of pocket, which is going to add another ~$4k to the car in Tax, Title, Fees, and 1st Payment. So now we're looking at adding $17k to the capitalized cost, which is going to be wiped out through the course of your 3 years worth of payments, or at least $500 more per month than what other people are saying. Add that to not negotiating your selling price, and yeah, $1200-$1300 is what my calculations are showing your lease would be. Plus, they may have assumed you don't have Tier 1/Superprime credit, so your Money Factor might be inflated as well.
I just leased a 2013 F-Sport MSRP: $59,367 and negotiated selling price to $55,865 (alleged dealer invoice) and knocked the doc fees to $150, plus the lease cash incentive of $2500. 3 year, 12k miles, base MF of .00095 (roughly 2.28% APR). My base payment assuming paying tax, title, fees, and 1st month of roughly $3200 due at signing would have been $590, but I put down 6 multiple security deposits that dropped the monthly down to $547 a month.
Bottom line, please get educated on leasing before proceeding. There is no such thing as a "deal" when leasing, it is 100% in the numbers. There is no voodoo science, black box, nothing mysterious, just math. MSRP, Selling Price that you negotiate, Rebates/Incentives applied after selling price, Money Factor, Residual Value based on the mileage you are requesting for the term, your decision whether to roll the TTF+1M into the note (adding to cap cost, thus paying interest on them over the lease term), and Security Deposits.
And for financing purposes, if you could get a GS350 for a selling price of $56k and TTF of about $4000, plus rolling your negative $13k equity into that loan, at 1.9% would be $1275 on a 5 year purchase note. That said, you probably shouldn't entertain leasing if you absolutely must have the new car, but good luck getting 1.9%.
I just leased a 2013 F-Sport MSRP: $59,367 and negotiated selling price to $55,865 (alleged dealer invoice) and knocked the doc fees to $150, plus the lease cash incentive of $2500. 3 year, 12k miles, base MF of .00095 (roughly 2.28% APR). My base payment assuming paying tax, title, fees, and 1st month of roughly $3200 due at signing would have been $590, but I put down 6 multiple security deposits that dropped the monthly down to $547 a month.
Bottom line, please get educated on leasing before proceeding. There is no such thing as a "deal" when leasing, it is 100% in the numbers. There is no voodoo science, black box, nothing mysterious, just math. MSRP, Selling Price that you negotiate, Rebates/Incentives applied after selling price, Money Factor, Residual Value based on the mileage you are requesting for the term, your decision whether to roll the TTF+1M into the note (adding to cap cost, thus paying interest on them over the lease term), and Security Deposits.
And for financing purposes, if you could get a GS350 for a selling price of $56k and TTF of about $4000, plus rolling your negative $13k equity into that loan, at 1.9% would be $1275 on a 5 year purchase note. That said, you probably shouldn't entertain leasing if you absolutely must have the new car, but good luck getting 1.9%.
Last edited by jjskywlker; 06-24-13 at 06:52 AM.
06-24-13, 06:35 AM
#48
Put $13K down to pay off the upside down truck. This will make your lease cheaper and much easier. If you can't cough up $13K, you shouldn't be leasing a GS350.
06-24-13, 08:40 AM
#49
Driver School Candidate
Thanks for all the input, it does make more sense now. I see where the extra money is going as far as the high lease payment. I also am not putting any money down or anything like that. Since Lexus does have this special they are advertising this month I have been told by the dealer I only need to make the first payment and all other fees and whatever else will just go toward the total price of the car. So, that makes sense now, too. The only reason I'm even leasing at this point is because I can get away with leasing this car with this situation but, if I tried to finance it (with the upside down truck) it will be well over $71K...and I'm not about to buy a $71K vehicle right now. Leasing won't commit me to such a thing right now and my options will be there in the future. If you guys have any more input on the matter I'm definitely listening...like I said, I'm still learning about this stuff and it seems to be making more sense now. Thanks for all your input and if you have any more, I'm listening.
06-24-13, 08:58 AM
#50
How long do you plan on keeping the car and how many miles do you drive annually. Can you get a tax deduction on your lease?
Leasing isn't for everyone. It certainly isn't for me. It all depends on your situation and your plans for the car.
Leasing isn't for everyone. It certainly isn't for me. It all depends on your situation and your plans for the car.
06-24-13, 09:04 AM
#51
Driver School Candidate
I commute about 30 miles a day during the week and that's about it. I've had my truck for 14 months and it just went over 13K miles. Including a few unexpected road trips. If Lexus doesn't release something I'll like more, at the end of the lease I will probably finance the car for the remainder of its cost.
06-24-13, 12:44 PM
#52
You might be better off financing the car. Then you will be able to stretch the $13K payments over 5 years instead of 3. Hell, your best bet financially is to keep the truck. LOL
06-24-13, 12:58 PM
#54
Gap insurance is a scam and a half. They won't cover your upside down loan. All they really cover is the price difference between what the insurer pays and the "perceived" value of the car in the event the car gets totaled. In most cases, they just cover your deductible.
06-24-13, 01:04 PM
#55
Gap insurance is a scam and a half. They won't cover your upside down loan. All they really cover is the price difference between what the insurer pays and the "perceived" value of the car in the event the car gets totaled. In most cases, they just cover your deductible.
06-24-13, 01:21 PM
#57
Sadly he will probably qualify for a $71K loan as long as hasn't defaulted on any loans in the past say 10 years. Ironically, I do not qualify for a $60K loan from Lexus. LOL
My credit score is way into the 800s and I have never been late on a bill or defaulted on a loan. However, the most I have ever financed for a car was $11,000. I'm pre-approved for a $500K mortgage but Lexus won't give me a $60K loan. LOL So I ended up just getting a cashier's check for the entire amount.
My credit score is way into the 800s and I have never been late on a bill or defaulted on a loan. However, the most I have ever financed for a car was $11,000. I'm pre-approved for a $500K mortgage but Lexus won't give me a $60K loan. LOL So I ended up just getting a cashier's check for the entire amount.
06-24-13, 08:01 PM
#58
Driver School Candidate
I can't get a loan for that amount right now because my debt to income is already a little too high. I'm actually surprised they are even approving a lease. That's why I'm going for the lease now and in time financing will be an option.
06-24-13, 08:20 PM
#59
Lexus Fanatic
Buying any new car these days is foolish. They are extremely overpriced. I regret buying the truck in every way and I know now what I really want. I don't have the money for another $60K vehicle. That's why I looked toward leasing as an option and possibly my only choice. But, at the price I'm looking at it really doesn't matter. All I know is, I want this new GS350 F and I don't want the truck...so what can I do? It comes back to my original question; how does leasing for 36 months cost more than financing $60K? And how can it help my total debt and make a $1,300 a month payment get any better? Because if it can't I'm just wasting time money and mileage on a vehicle I won't even keep.
You need to separate what you "want" and what a smart financial decision is for you to make at this time.
Leasing is not a tool to drive a car you cannot otherwise afford. You whole method of thinking here is screwed up. You say "you're not about to buy a $71k vehicle right now...but you aren't buying a $71k vehicle right now...You're buying a $57,000 vehicle and rolling over debt owed on the $60,000 truck you are already owe on over what its worth.
If you can't afford to buy a $71,000 vehicle...how can you afford to make $1,000+ lease payments? Its none of my business, but if you cannot write a check, today for $13,000 cash then you have no business leasing a GS at $650 a month...let alone $1,000+ per month...thats not even taking into account that by your own admission your debt to income ratio is high.
Keep the truck, pay it down, get it to where you can get out of it without a loss. It sounds to me like ownership of this car is a 5 year plan. Its a nice car, but its just a thing and its not worth putting your finances at risk to drive it.
06-24-13, 11:54 PM
#60
Driver School Candidate
You're exactly right about my financial position. And it has been this way since I got the truck. To quote you, SW13GS, "If you can't afford to buy a $71,000 vehicle...how can you afford to make $1,000+ lease payments? Its none of my business, but if you cannot write a check, today for $13,000 cash then you have no business leasing a GS at $650 a month...let alone $1,000+ per month"; this is the exact truth and you are right. But, by getting into a lease like this compared to what I am already used to by financing will keep me in the same situation as far as payments go. My reasoning for a short term lease at this point is to get out from under the debt of the truck by paying it off faster via the lease. I am already used to such high payments so on a monthly basis and as far as my spending allowance goes there is no difference or suffering. I got into a bad situation with the truck and have regretted it ever since. It may not make sense to get into another agreement/committment especially with an upside down value but, in the end, paying for this expensive short term lease will cost me less money than if I stick with financing the truck for 5 or 6 more years. At least that is my reasoning and it may be sensless but, as far as I'm concerned, it won't hurt me more at this point and will help me later. Well, that's my reasoning, anyway...if I'm wrong my situation really won't get worse. Making larger payments isn't an issue, I'm just trying to prevent holding a huge debt for 5 or 6 years. I'm just looking for a way to get a hold of this and take care of it before paying for a 5 or 6 year financing committment. I'm always willing and ready to accept more input and I do appreciate yours. So, please let me know of any other thoughts any of you may have.