mikedozz

Does anyone have experience with actually ordering a car to lease it? With the horrible inventories, I'm considering ordering a black/black LS, couple dealers informed me to put a $1000 down to hold and then about 6-8 months when 2023 comes in, they'll lease to me. Anything I can do to protect myself from inflated msrp or lease price or am I at their mercy and the way the rates are at the time the car comes in? Just trying to cover all my bases if I really decide to go through with it.

RNM GS3

I’m in same boat unfortunately.

Before i would lock-in my lease price with BMW when I ordered the car which take about 60 days. If lease program or incentives improved then i would get extra savings, if not then you keep the program for the month you ordered the car.

Now there are no guarantees.

You can lock-in the price, for example MSRP minus $1,000 but the lease program will be up in the air.

mikedozz

This is ok with me as long as I lock in the msrp ( which is crazy, always leased based on way below msrp, but crazy times). I'm not sure the lease rates can get much worse lol.

SC300Es

Make sure it's a refundable deposit.

They should be able to lock in MSRP but make sure you get something in writing, if you can, saying no ADM and tack ons.

I think if the MSRP goes up, you're responsible for that but should be able to get any incentives at the time of pickup.,

1111GS

As long as it's refundable, it's fine. Some dealers don't even charge you. They just take your ID to lock the car for you. The way it's going, if your car is coming in and you back out, they don't have problem selling to someone else so they don't really care. And yes, get it in writing. Some do flip on you when it's near delivery to make some change unfortunately. On a side note... from what I see... leasing is not that much different from financing these day..

mikedozz

Thanks!! Good to know they don't all charge a deposit. Agree with financing, with no lease incentives, they are not far off.

swajames

With the market the way it is it may well be better to explore traditional financing and not leasing. Actual residuals are likely to be a lot better than the residuals used in the lease calculations, and the money factors on leases tend to be inflated because customers don't always understand how to get that information or how to turn a money factor into an APR. Lease payments will assume a likely low residual (much lower than actual) so you'd be paying off at a much faster clip than actual depreciation. Not the worst thing if you intended to buy the car at lease end, your final payment is lower albeit you will have paid more interest, but you'd lose flexibility. It will likely be cheaper to buy and sell in three years than to lease and return in three years. Of course, the market can and will change in the next three years but you may well want to explore financing here before you push the button on a lease deal.

RNM GS3

Most of the lease payments are now on par with financing and they are increasing the money factors higher than what you can get as a financing rate.
If you have a business then its still the way to go.

SW17LS

Do you deduct a vehicle for business? Thats the only reason I would lease today.

Fizzboy7

Going down the same road with possibly placing an order for a 2023 lease. I can write off 50% of my payment and down payment to my business, so I assume leasing is still better than financing? Maybe someone can chime in on that. I also have about $15k equity with my lease right now.... so either that gets cashed out at Carmax or the dealer can work it into the new deal (?). All to be determined.

With the shortage of cars these days, I am hearing they just lock your name on the order. If you back out, it goes into their inventory, which they are in need of bolstering. This however is more for a bread and butter IS350, not a more exclusive LS. There may be a difference there on how the dealer handles the order, based on the model being ordered and it's popularity. Being "stuck" with an IS is different than being stuck with an LS. These are all thoughts on my part, nothing official. So many moving arms to consider!

SW17LS

Why only 50%? You can probably write way more off. Do you own more than one car? I write 100% of my S560 off, but I own 2 other cars.

Unless the vehicle is over 6000 lbs GVWR, it makes sense to lease it for tax purposes. If its over 6000 lbs GVWR and its a MPV (SUV, truck, van etc) then you can buy and take the accelerated bonus 179 deduction, which lets you take up to 100% of the depreciation in one year. That may end in 2022 though so if you're waiting into 2023 thats a X factor. My guess is it will be extended.

Fizzboy7

I've gone around on this with my CPA for years, as I know many who write off more than I do. But she claims you cannot write off more based on just driving to and from work. Even though I have a lengthy commute, and about 95% of my car miles are from commuting to work, she says commuting isn't enough to warrant more. If I was using the car to make deliveries/installations for the business, that would be different. But simply commuting to the job, according to her, is not what the "law" allows for writing off. She also makes it sound like even the 50% we do now is stretching it. Thoughts? (Yes, I just have this one leased car and no others)

SW17LS

Shes right, but you just need to take a home office deduction then the driving to your secondary office is not commuting. I have multiple offices but my home office is my primary place of work.

Your CPA is not nearly aggressive enough for me lol.

It it’s your only car, then you can’t do 100%, but I would do 80%. Do you have a family
member who has a car you can put your name on?

Fizzboy7

LOL! That is funny, because a lot of my customers are surprised I don't deduct more. She is more on the conservative side, but then again, I have never been audited. So I guess I can sleep good at night. <g> I'll mention the "at home office" thing, but I think we've probably unraveled just about every possible deduction by now. I own a retail store, so it could be a little different than other types of businesses.
Anyway, it was nice of you to speak up and get me thinking once again. (Didn't meant to hijack the thread).

mikedozz

Thanks guys! I talked to my Lexus salesman of 15 years and told me there will be a 5k market adjustment which totally turned me off, I understand this is a business but taking advantage of long time customers is horrible. I hope they move to an online order business model and cut out the shannigans being played. This would be like Target charging $700 for the PS5 because of supply and demand when it really cost $500. Should be a penalty against this behavior, these aren't 3rd party lots, these are Lexus dealers jacking up prices. Oh well lol, I refuse to pay over MSRP for the LS, but I'm sure someone will so they won't have an issue or need my business.