redraptor

$498.50/ month for 27 months with 15k miles per year.

$2995 down + registration, taxes (~9%), first month payment, etc. comes out to approximately $5000.00

Residual is approximately $34,000 +taxes.

So if I did my math correctly, it should come out to around $55k if I were to buy this car by the time the 28th month comes.

I already put a $500 deposit for this fsport 350 AWD with Navi, BSM, cargo net, and wheel locks and it should be in my hands in a months time.

I think this is not a bad lease deal, anyone wanna tell me otherwise?



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dstopsie

Omg $5k down on a lease? Seriously that's crazy. People just don't understand min drive off for leases.

John510

Yeah Insane. If your putting 5K down then buy it.

dojoman

iTrader: (5)

I don't think it's a good deal. I paid less than $50 OTD, not a lease.

Stillhart

Could you enlighten us on what's insane about that? I don't know much about leasing, I always buy, but I'm open to learning just in case.

BarrettF77

You're paying a lot of interest most likely, as you didn't say what the money factor was. You are also buying in when the car is brand new and so there will not be as many incentives going right now as there will be in about another month during the August summer event. Hold off for 25 days till next months deals come out and then roll. And if your dealer is anxious to get the sale right now, they will work you better numbers than that. I have a 61k GS 350 '13 model and my payments on a 48 mo lease with 0 down and they paid the first months payment are 650 / mo and I was ok with the money factor being a little bit higher as the rest of my deal was good and I hate car shopping, but also like to upgrade every 3-4 years.

It's exciting to get a new car, just don't make a few weeks of joy overrule your common sense to see that the dealer is taking advantage it being a new car. They are all still car dealers and salesmen no matter how they dress and the branding on the door.

Would you still throw deposit money down on an Apartment to make your monthly payments lower? Probably not. This apartment just has wheels and you spend less time in it.

redraptor

its actually $3k down + taxes, plates, etc...which comes out to $5k.

I cannot afford a $1k monthly payment if I were to buy with no down at all.

Even with taxes and interest on a $48k loan, I think I'll be paying much for than $55k for this car in the end, right?

I too am confused as to why this is not a decent deal for this lease.


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pianospike

In the other lease thread people were saying that it was an "aggressive" lease offer by Lexus when they were requiring $3.4k down (vs $3k here pre-tax) and $350 per month for 27 months on a base IS250 with no options and only 10k miles a year.

At 15k miles per year for an optioned out 350 F Sport AWD, this lease deal does not look bad to me at all.

redraptor

the money factor is .0013 (3.12%) and residual was 70%.


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bd307

Just like the guy comparing a car lease with renting an apartment. Do you put downpayment for renting an apartment before you move in?

Google the topic car lease vs. finance or purchase.

I also just noticed you said the car will be on hand in a month? Or am I understanding this wrong?

SlickRSM

What happens if u total it?

r0shiro

iTrader: (1)

You could always purchase the GAP insurance if you're afraid of totaling it.

redraptor

yes car will be here by the first week of August. apparently no 350 f-sports were available at any dealers I went to.



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SW17LS

I would never do that deal in a million years. $5k down on a lease? I wouldn't even pay the taxes and tags...roll it all in. As others have said, you are just prepaying rent. Put the $5,000 in a savings account and make some payments out of it...at least you keep your hands on the money.

The only thing I would ever pay upfront is taxes and tags, even then I never have...but its the only thing that I can accept a reasonable argument for doing.

I think maybe you should reevaluate whether or not you can afford the car. Putting a bunch of money down on a lease to where you can swallow the payment, then planning on buying it at the end and presumably financing it for another 6 years to keep the payment low is not a smart financial decision. If you are going to buy it...buy it upfront and stomach the payments. Even if you had to finance it for 72 months you'd be better off.

According to my calculations buying with $5k down, taxes and tags rolled in, and 4% rate (you can do WAY better if you have halfway decent credit) your payment is $880. If you can get 2.5% (bet you can) its $848.68.

72 Months at 4.5% its $759.10. At 3% its $726.56.

$848.68X60=$50,920.80+$5,000 down= $55,920.80. Cost to buy and finance at 2.5% for 60 months.

Lease:

$498.50X26=$12,961+$5,000 down= $17,961. Cost to lease for 27 months.

Then you buy it at $34,000+ taxes and tags AGAIN, 9% is $37,560.

$37,560+$17,961= $55,921=cost to lease and buy assuming you bought out at cash. My guess is you won't do that, you'll finance again for 60 months

$37,560 financed for 60 months at 6% (rates WILL be higher in 2 years, used car purchases are always a higher rate, no CPO rates for buying your own lease return. Payment is $726.14.

$726.14X60=$43,568.40 Cost to lease, then buy and finance for 60 months=$43,568.40+$17,961=$61,529.40.

As you can see, the only way it makes sense is if you pay cash for the buyout, and even then you just break even. If you have $37,000 lying around, put that $37,000 down on the purchase now and your payment is only $280.76

Gap insurance won't reimburse you for prepaid rent, it only comes into effect if he owes more than the insurance payout.

corradoMR2

I'm not sure I get how it works in the US so I'm puzzled why it's so wrong putting money down.

In Canada, putting money down on a lease can make financial sense. You reduce the amount of the lease that is subjected to the lease interest. These rates (3.9%) currently for a 48 month lease are higher than any savings or "guaranteed" investment these days (1% if you're lucky) if you were to invest the money instead.

So if the lease amount owed for the 48month period is $25K, with 0 down, you pay 3.9% interest on the entire 25K over the period which makes your total cost about $30K with interest. If instead you were to put $5K down, you now owe 20K, over the period, and interest is now on the smaller amount (20K) which saves you close to $1K in interest over that period.