Saw this little gem at my Lexus dealer:

2008 ISF

So here is my deal: I am in a 2011 IS350 now with 9,0XX miles, leased 2/2011. Owe 37,700 for lease buyout. Current payment $670/month. My original plan was to keep this one another 2 years then try to get into a used 2011 F. So just to see what the deal was I emailed their internet department. Their response was, they will give me 34k for mine and payment on F would be $760 for 72 months. Or I can put in $4k and keep payments roughly what they are at now.

I don't like that deal very much. I expect the longer term to try to get the payments down. I am ok with that. I would keep the car all 6 years plus. I know I will lose money on the trade since it is less than 1 year old. I love my 350 to death but the itch for the F is a strong one.

So, is 34k reasonable for trade, and is 41,900 a price that can be dropped or is it already a good one? The F has 29,4XX miles.

 

72 months on an '08? You'll never be right-side up on the note. Not a deal I would take.

 

Wow! You would be paying $760 x 72 = $54,720. of a 2008. I would keep your 350, and do some upgrades.

 

IMO a 72-month loan is way too long, try to get 48 months or less. You'll end up paying more than the car is worth after 4 years, which doesn't make sense financially. Also $42k is too high for ~30k miles, try to get it in the high 30K's.

I know it's crying over spilt milk, but you should have bit the bullet and got a used 08 F back in Feb 2011.

 

^^^ This

Lol. But I was thinking if I could walk in with mine and walk out with theirs for a 5yr note in the same payment range (no more than $700) I might be tempted. I have 3 years left on my lease anyways. I don't think those numbers will work though even if they came down to $39-ish on the price.

 

You might be able to deal with that part of it, but if you ever get into an accident, you'd better have some pretty strong GAP insurance, and all that does it zero out your note, so all your payments would be lost - zero equity - for 6 years (72 months is a 6 year note...)

Be patient for a better deal, or get yourself in a position where paying more monthly is a viable option.

 

If you jump into that deal like lobux said, you will be upside so long your grandkids will be upside down, dont do that to them.

 

That's a very bad deal. Finish your lease and buy a used f later

 

Also keep in mind that a new gen is coming soon. Could lower prices on the current gen. Or who knows. . . maybe you'll prefer the new one.

 

Should you move into an ISF? Oh yes. But that deal is no good. You either need to find a cheaper ISF or just wait.

Or find another dealer that can give you trade-in value closer or at your payoff. So that way you're just dealing with the ISF price.

 

As others have mentioned, Try to get close to your payoff amount and if you are looking to get an 08, be sure not to finance over 60 months, Lexus is currently offering 2.9% APR up to 60 months i believe on Certified Pre-Owned vehicles (100k mile warranty).

 

honestly when people buy cars you should always think twice or even longer before you purchase especially if your buying/leasing a 350. Next up would be an F. If your just short of affording the F, just wait a little, save up and purchase rather than purchase/lease on a 350, wait a year then try to get into a F. Your losing so much money. I always see people getting 335 bmw and wanting m3.. but its cause at that moment of time you purchase your car your just ready to go with whats best at that moment in time, rather then thinking for long time. Like hmm will i like the power.. or if i see an m3 / is-f will i get jealous, etc.

There is many factors in play. People shouldn't be hyped up buying a car. They should be hyped up to be researching and looking at there finance long term and make sure the vehicle they buy will make them happy.
Cause im sure when you were buying/leasing the 350... your saw that F in the show room calling your name.

 

There are many valid points in this thread. One way to look at it is if you are going to be keeping the car long enough to pay it off. If not then a lease is the better option. Only problem is when the lease is done you have nothing. No equity positive or negative. The only way that buying the car makes sense is if you own it long enough to pay it off.

I guess if you are fine with always having a car payment, then it doesn't really matter whether you lease or buy.

 

I must say 42k for an F with 30k miles seems to be very reasonable at least in CA. I wouldn’t expect it to go down lower than 40k, or maybe 42k out the door. I know 09 lease returns are starting to come in, driving the value of the 08's down, but that remains to be seen by summer.

I know the strong urge to want something, especially the F. I now have the bug for the GTR, but I wont go on a ramen diet to own one.

IF the dealership can wipe the lease and you pick up the F on a 72 m loan at their asking price or a little less and keep it for at least 3 years, I think you will be happy even if you’ll pay a little extra in the long run. It’s a great car.
This all depends however on how many miles you put on the car in a given year. 12k or less preferably.

Have the Water pump replaced!!!

~Dv8

 

I wouldn't go for it from a financial standpoint. having a 6 year note is crazy. I personally try to do my calculations on a 48 month note max.