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2014 LS460L Lease?

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Old 05-16-17, 01:45 PM   #1
riknchar
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Default 2014 LS460L Lease?

I've made the mistake of surfing CarGurus looking to see what kind of late-model LSs are available in the mid-west. I currently own a 2008 LS600hL, which I love, but every once in a while I get the urge to upgrade to the newer (post-2013) body style. I know there's been a lot of chatter on this forum about the risk of hybrid battery failure with the 600s, following CJITTY's bad experience with Lexus when his LS600 batteries crapped out a day after the warranty expired (and no help from Lexus in fixing his problem).

What has saved me in the past is that virtually every LS460L I see for sale has no where near the level of equipment that my LS600 has. Many come without Radar Cruise, air ride suspension, rear seat entertainment system, etc. However, an LS460L has popped up on CarGurus from McGrath Lexus in Chicago. Here's the link: http://www.mcgrathlexusofchicago.com...-IL/2981763183

This one is a 1-owner 2014 with 6K miles. It has a good color combo (white exterior with light color interior), and has virtually every option Lexus offered in 2014, including the Executive Seating package, Lane Keep Assist, rear DVD system, etc. The original MSRP was $112,300. McGrath is asking $64,998 for the car, which seems a bit high compared to KBB, but is still a pretty sweet deal on a $112K car with 6K miles...

This kind of car (less than 4 years old, low miles) can now be leased by Lexus, and the lease deal on this one is pretty good (because of the equipment and low miles, which keeps the residual very high). McGrath quoted around $1100 a month for 36 months (tax included) or around $1000 a month for 48 months (zero down, 12K miles per year).

So I'm a bit tempted... Any thoughts from the forum on whether this particular car would be a good value? I know the "smart thing to do" is to stick with my LS600hL,which has an extended CPO warranty good for another 3 years. Still, I'm tempted...
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Old 05-16-17, 02:05 PM   #2
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Quote:
Originally Posted by riknchar View Post
So I'm a bit tempted... Any thoughts from the forum on whether this particular car would be a good value? I know the "smart thing to do" is to stick with my LS600hL,which has an extended CPO warranty good for another 3 years. Still, I'm tempted...
I guess it seems like a good value (without me looking up info). However, the "smart thing to do" is to stick with my your LS600hL,which has an extended CPO warranty good for another 3 years.

That's my two cents!
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Old 05-16-17, 02:19 PM   #3
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I suggest that you wait till end of this year when the 2018 hits the show room, $65k might be very close to the price of a brand new 2017 ls460. $5-10k more will get u a LWB. Granted will not have all the toys but 3 years newer and no previous owner...

Also, look at this $20k less...http://www.butlerlexussouthatlanta.c...-GA/2992755673
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Old 05-16-17, 02:20 PM   #4
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Don't we all get tempted....

NEED VS WANTS...

+1 to keep your current car until at least CPO is up. Anyway, my question to you is ;- what do you normally do when you got tempted by ______ ?
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Old 05-16-17, 02:44 PM   #5
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Thats a terrible deal IMHO. FYI I was quoted $1,150 $0 out of pocket 36 months on a brand new BMW 740i with an MSRP of about $94,000. Zero effort to get that.

You can lease a brand new LS460L for less than that. I was quoted $1,100 on an LS460L demo back in 2015 MSRP was about $90k, that was current model year titled as new with 5k miles.

Now, the $65k to purchase isn't a bad deal at all considering the equipment, but the lease is very poor. I mean, just think finance wise, at 2.75% a 60 month payment on $65k is $1,161!

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Old 05-16-17, 04:44 PM   #6
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Wow, 2014 LS600h with 6500 miles at half its original selling price! For what its worth, I've had nothing but good experiences at McGrath Lexus (my son lived in Chicago for 4 years and they really looked after him). You should be able to get at least $25k for your 2008, which makes it even more tempting!

Edit: Ah, I see now its a 460L, not a 600h. Stick with you 2008!

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Old 05-17-17, 06:55 AM   #7
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Originally Posted by SW15LS View Post
Thats a terrible deal IMHO. FYI I was quoted $1,150 $0 out of pocket 36 months on a brand new BMW 740i with an MSRP of about $94,000. Zero effort to get that.

You can lease a brand new LS460L for less than that. I was quoted $1,100 on an LS460L demo back in 2015 MSRP was about $90k, that was current model year titled as new with 5k miles.

Now, the $65k to purchase isn't a bad deal at all considering the equipment, but the lease is very poor. I mean, just think finance wise, at 2.75% a 60 month payment on $65k is $1,161!
Thanks for the second opinion on the lease terms. I have no experience leasing with Lexus, but have leased quite a few other cars (mostly for my kids, to keep out of pocket costs down). When I ran the number on a straight purchase, with low-rate financing that I should be eligible for, I saw exactly what you're point out. If I pay $1K a month for 48 months, I will have spent $48K with nothing to show for it. Depreciation is pretty brutal on our LSs (not quite as bad as on other top-end luxury cars, but still pretty bad), but $48K over 4 years is probably not a great deal.

If I bought the car outright for $60K and got $25K for mine, the value proposition does seem quite a bit better... Thanks again for the leasing insight!
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Old 05-17-17, 06:56 AM   #8
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Originally Posted by sktn77a View Post
Wow, 2014 LS600h with 6500 miles at half its original selling price! For what its worth, I've had nothing but good experiences at McGrath Lexus (my son lived in Chicago for 4 years and they really looked after him). You should be able to get at least $25k for your 2008, which makes it even more tempting!

Edit: Ah, I see now its a 460L, not a 600h. Stick with you 2008!
Yeah, I would think a similar LS600 would be closer to $75-80K. Although this particular LS460 has basically every option I could get on an LS600hL except the leather dash.
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Old 05-17-17, 06:56 AM   #9
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I also am an avid leaser, but in general I have found that leasing used cars doesn't make sense, and that in general you can lease the same model new for about what you can lease it used and I think you're seeing that here.
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Old 05-17-17, 06:59 AM   #10
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I suggest that you wait till end of this year when the 2018 hits the show room, $65k might be very close to the price of a brand new 2017 ls460. $5-10k more will get u a LWB. Granted will not have all the toys but 3 years newer and no previous owner...

Also, look at this $20k less...http://www.butlerlexussouthatlanta.c...-GA/2992755673
Good point. I'll bet we'll see late model (2014-2016) LS460s take a major depreciation hit when the new LS hits the showrooms in October. The bigger the discounts get on the leftover 2017s, the more the value will drop for the other late-model cars. Finding such a low mileage, well-equipped LS460L is the challenge, though...
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Old 05-17-17, 07:28 AM   #11
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I don't think you'll see that huge a hit. We've been here time and time again
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Old 05-17-17, 08:06 AM   #12
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Quote:
Originally Posted by riknchar View Post
Good point. I'll bet we'll see late model (2014-2016) LS460s take a major depreciation hit when the new LS hits the showrooms in October. The bigger the discounts get on the leftover 2017s, the more the value will drop for the other late-model cars. Finding such a low mileage, well-equipped LS460L is the challenge, though...
The 2014 -2016 LS sales are low and I don't believe they will take a major depreciation drop when the new LS 500 comes out. There are tons of low mileage, well-equipped and well maintained 430's and 460L's on the internet and dealerships for sale. The LS isn't perfect but its reliable, dependable, comfortable and low maintenance will help it maintain its value. I wouldn't say the same for Cadillac, Lincoln, Jaguar, etc.
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Old 05-17-17, 09:39 AM   #13
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See https://www.clublexus.com/forums/ls-...60-prices.html

25% off MSRP without a completely redesigned model in the show room... $60K for $80K MSRP...
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Old 05-17-17, 11:30 AM   #14
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Originally Posted by hfahmy View Post
See https://www.clublexus.com/forums/ls-...60-prices.html

25% off MSRP without a completely redesigned model in the show room... $60K for $80K MSRP...
Yep, that's kind of what makes me believe we'll see a bit higher depreciation on late model LSs. Big discounts on new cars always leads to big depreciation on late model used cars of the same model. I know Honda was famous for resale value (probably still are), due in large part to their refusal to offer big rebates/incentives to the public on their new models (they did behind-the-scenes rebates to dealers, but that didn't permeate the public consciousness as much).
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Old 05-17-17, 12:59 PM   #15
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I'm not one to do a lease or what I affectionately call a fleece. You have nothing to show when you've made your last payment, if you go over your miles you pay more, and if you damage the car you pay to repair. Still all that money spent and nothing to show at the end of the term. With a purchased LS you have two options: 1. You can pay it off and use it on trade on your next vehicle or 2. Keep the car and enjoy life without a car payment.

That's just my opinion.
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