[dreamwonder]

I was wondering how much you guys leased your IS300. I got mine with everything but no LSD and the shiny wheels.
It was $2000 out of pocket. And $550 a month for 36 months, 15,000 miles/year

Blue/ Black Leather

Mines topped out at 143mph. WOndering if it will go 150mph down a slope.

 

[Agent Mulder]

I heard someone getting a deal on a lease like that.
$550/mo
12,000 Miles a yr.
$0 down but $2100 drive off fee for docs etc.
36 months
his credit wasn't too good though.
Anyone leased any cheaper?

 

[blueis300guy]

paid CASH

 

[flipside]

paid cash for mine..but my younger sister got her car and leased it for only $499 month w/ 0 down and just bank fee + dmv fees = $1124 out of pocket. BTW we got it on the same day...mine is graphite and she got SBM.

 

[ISFAN]

I leased mine, no money down, 36 month lease, payment is 475.00 plus tax for a total payment of 504.00.

Make sure the payment you are addressing here is the final payment. Your tax is due on each payment, so is your 550.00 inclusive of tax? The only fee I paid was my tag fee. No security deposit as well.

I have leather, power seats, sun roof, wheel locks, turnk mat.

SILVER

 

[ISFAN]

Originally posted by Agent Mulder:
I heard someone getting a deal on a lease like that.
$550/mo
12,000 Miles a yr.
$0 down but $2100 drive off fee for docs etc.
36 months
his credit wasn't too good though.
Anyone leased any cheaper?

2100.00 drive off fee, seems kind of high to me. Tags are what about 150.00. Seems like you paid some type of cap reduction and you just do not realize it.

 

[nemesiss]

i leased mine for $435 month...15000miles...3000 down...36 month......i have great credit..

 

[ISFAN]

Originally posted by nemesiss:
i leased mine for $435 month...15000miles...3000 down...36 month......i have great credit..

3k down ouch!

 

[nutinbut]

1000 down
36 months
15000 miles a year
440 WITH tax

not bad I guess

 

[ISFAN]

Originally posted by nutinbut:
1000 down
36 months
15000 miles a year
440 WITH tax

not bad I guess

Very nice nutty but!

 

[ijmis300]

Just curious....
At the end of your leases (everyone who replied here) how much will you have to pay to buy the car?

 

[ISFAN]

Originally posted by ijmis300:
Just curious....
At the end of your leases (everyone who replied here) how much will you have to pay to buy the car?

My residual value is 22,000. I would never buy the car at the end of the lease. If the car has a market value greater then the 22,000 towards the end, I will try to sell it outright before I would turn in the lease.

If the car is worth less then the residaul, you can pretty much be assured you can turn it in early, due to the fact the leasing company is loosing, they would want to get the car back and sell it outright.

 

[hurricane]

Originally posted by ISFAN:
...
If the car is worth less then the residaul, you can pretty much be assured you can turn it in early, due to the fact the leasing company is loosing, they would want to get the car back and sell it outright.

Actually, in my experience, if you are upside down in the lease (the car is worth less than the payoff), you would be extremely lucky to have the dealer allow you to turn it in early. the idea of the lease is to target the lease to where you are upside down for the entire life of the lease until the day you turn the car in. Dealers don't mind taking in a car with equity in it, but an upside down car means an instant loss for them (possibly depending on wholesale value). The longer you pay on the car, the smaller their loss will be - so they won't want it back early.

If it is worth more than the payoff, you can trade or sell out of it fairly easily (note that if you sell a leased car to a 3rd party, you have to "buy" the car from the leasing company, pay sales tax, wait for the title, then sell the car to the 3rd party who has to pay sales tax and wait for the title - big PIA). Trading it a the dealer is by far the easiest (you don't have to pay tax.


Hey nutinbut,
What was the purchase price of your car if you don't mind me asking? What options did you get on it? Sounds like you got a killer lease. By any chance do you know the lease factor (should be a number like .0035).
I might try to lease my IS for that amount.

 

[ISFAN]

Hurricane,

I think you are a little confused by my post. The object of a least is to peg the residual just right. My residual at the end of 3 years is 22,000. If at the end of the least the value of the car is 20,000 then LEXUS screwed up. In other words I leased the car for less then I should have, had they calculated the residual correctly at 20,000 rather then 22,000. Get it? So if at the end of two years say my car is worth 22,000 already. LEXUS would be more willing to let me out of the lease nowing they could sell the car outright for the 22k then instead of having basically driving the car for free for another year and turning it in with a residual of 20,000 or less which screws them since they pegged my lease at 22k.

I hope that sheds light on the logic.

 

[geoff]

question: why would anyone pay cash for a depreciating asset like a car? makes no sense.

 

[hurricane]

I think that you will find out that you are wrong in this scenario. This is why:

Lets go with your scenario:

2 years into a 3 year lease
End of lease value $22,000
Current value after 2 year $22,000.
Assume $500/month payments for simplicity

At this point in the lease you have paid roughly 12,000. Your total lease payments for 36 Months is $18,000. If you turn in at 24 months, it is true that the dealer could re-sell the car for $22,000 and it would be a wash for him. But the leasing company would be out $6000 of payments that it has no way to re-coup. The smart thing for them to do is to wait it out and get your $6k, then take the $2k loss on the vehicle. That is why it is VERY unklikely that a lease would be terminated early in an upside down situation (or even many positive equity situations). Practically speaking the only way to end a lease early is to write a check for the payoff amount. So the difference between your payoff and the value of the car is really the equity in the car. It doesn't have much to do with the end of lease value until the end of the lease.

 

[hurricane]

Originally posted by geoff:
question: why would anyone pay cash for a depreciating asset like a car? makes no sense.

I agree for businesses. A business should never buy a car.

A family is different I think. Purchasing a car for cash is the absolute cheapest way to get a car if you plan to have the car a significant amount of time. You don't have to pay interest on the vehicle. If you get a new car every 3 years anyway, it may be cheaper to lease. But this is not always so - if your vehicle holds its value well, it is possible to get equity in a purchased vehicle in 3 years.

In the example above, you would have to pay $18,000 ($500 X 36 mo) to lease the vehicle for 3 years.

To purchase the vehicle (if you could get $22k after 3 years) it would cost you $12,000 (34,000-22,000).

You save $6,000 if you buy. Of course if you got a loan for the $34K, you have to subtract the interest paid for 3 years from the $6k.


I may have done some creative math with this. Someone correct me if I'm wrong here. I'm a computer guy - not an accountant.

 

[ISFAN]

Geoff is 100% correct in his statement. Paying cash for a vehicle is not a smart thing to do. The only way I would pay cash for a car is if a rich relative is buying the car for me, or if I have millions of dollars and could care less.

If you buy the IS300 for 34,000 and pay cash, you have thrown that money into an investment that is guaraunteed not to make you money. If you take that 34,000 and put it into a conservative stock fund that would earn you 11-15% you make money.

Now yes if you did that you would need to get a car loan for 34,000 etc... assuming the interest rate is 9% you are still neting a gain of 2-5 % on your investment. This brings me to my final point. I would never get a car loan. If I were to finance a car, I would get a home equity loan for 5 years, that way not only do I keep my original cash in an appreciable asset, I have just purchased my vehicle in a way that allows me to write of the interest on my taxes.

Be smart.