Blk/Blk 2007 GS350 lease deal?? need your opinions guys
04-12-07, 08:46 AM
#16
Lexus Test Driver
Thread Starter
OK so that's $34,000 to drive this car for 4 years and have nothing to show for it at the end.
What is invoice price on the GS350 you're looking at? You could probably buy it for invoice price, finance it at a low rate, and in the end barely have higher payments to OWN it.
I'm a big proponent of leasing when the situation calls for it, but the situation calls for leasing when the residuals and MFs are in your favor, and unfortunately that's just a rare occasion to see from Lexus, especially when the terms are at 48 months (most leases stop being really advantageous around 36 months - some at 24 months)
In summary, if you want to lease, get the 5 series. If you want to own, get the GS.
What is invoice price on the GS350 you're looking at? You could probably buy it for invoice price, finance it at a low rate, and in the end barely have higher payments to OWN it.
I'm a big proponent of leasing when the situation calls for it, but the situation calls for leasing when the residuals and MFs are in your favor, and unfortunately that's just a rare occasion to see from Lexus, especially when the terms are at 48 months (most leases stop being really advantageous around 36 months - some at 24 months)
In summary, if you want to lease, get the 5 series. If you want to own, get the GS.
04-12-07, 08:57 AM
#17
Lexus Champion
I'm not sure if you read my post that started this thread, but the only reason that I'm looking into a lease is because I own a company. My CPA highly recommended that I lease the car under my company name for tax deduction purposes. Trust me, I have no problem buying a $60K car. In fact, I'm like you. I prefer to buy something, not rent it. However, when it comes to my business, one has to what's most beneficial right?
(BTW, my wife is a CPA but focuses more on audits of public companies than tax)
But still, at some point the tax benefits of a lease are going to outweigh the cost of leasing. This Lexus may very well be an example.
I'd just go with the 5-series. It'll be much more fun to beat on anyway - who cares about having softer more pleasing dashboard materials and better reliability unless you plan on purchasing the car after the lease is up?
04-12-07, 09:35 AM
#18
Lexus Test Driver
Thread Starter
Yes there are tax benefits to leasing - mainly linear annual depreciation that can be fully declared as a business expense. When you buy a car you have more trouble because you have to depreciate the vehicle massively in the first year, and not as much in the second year, etc - plus you have to jump through more hoops to actually declare the full value as a business expense.
(BTW, my wife is a CPA but focuses more on audits of public companies than tax)
But still, at some point the tax benefits of a lease are going to outweigh the cost of leasing. This Lexus may very well be an example.
I'd just go with the 5-series. It'll be much more fun to beat on anyway - who cares about having softer more pleasing dashboard materials and better reliability unless you plan on purchasing the car after the lease is up?
(BTW, my wife is a CPA but focuses more on audits of public companies than tax)
But still, at some point the tax benefits of a lease are going to outweigh the cost of leasing. This Lexus may very well be an example.
I'd just go with the 5-series. It'll be much more fun to beat on anyway - who cares about having softer more pleasing dashboard materials and better reliability unless you plan on purchasing the car after the lease is up?
I have a problem in that I switch cars after a few years. It's an enthusiasts addiction I would presume.
Although, if the GS is good enough, i might end up buying it. However, I will definitely look into the 5 series before I decide. Thanks!
04-12-07, 03:30 PM
#19
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Talking about BMW and Lexus, I used to work at a Lexus dealer but now I work at a BMW dealer because it's always been my goal. I come across alot of clients who wants to compare the GS and the 525/530. Pricewise, Lexus is better (factor in the 12% profit margin VS BMW's 6.5%) Leasewise the BMW is better because they have good lease program rates and higher residual.
In my opion, to optimize the advantage of lease, it's better to go with a BMW because payment would be close to the same (Depends on how u equip your BMW) but BMW would be a 3 year lease and the maintanance program is included so you really don't have to pay a dime for the 3 years except your payment and your tires)
Put all the pricing information aside, which do you like better?
They all are good cars, BMW is Performance vehicle with luxury build in.
Lexus is Luxury with performance build in.
In my opion, to optimize the advantage of lease, it's better to go with a BMW because payment would be close to the same (Depends on how u equip your BMW) but BMW would be a 3 year lease and the maintanance program is included so you really don't have to pay a dime for the 3 years except your payment and your tires)
Put all the pricing information aside, which do you like better?
They all are good cars, BMW is Performance vehicle with luxury build in.
Lexus is Luxury with performance build in.
Last edited by Acuraelin; 04-12-07 at 03:38 PM.
04-12-07, 03:37 PM
#20
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Posts: n/a
I used to work at a Lexus dealer but now I work at a BMW dealer because it's always been my goal. I come across alot of clients who wants to compare the GS and the 525/530. Pricewise, Lexus is better (factor in the 12% profit margin VS BMW's 6.5%) Leasewise the BMW is better because they have good lease program rates and higher residual.
In my opion, to optimize the advantage of lease, it's better to go with a BMW because payment would be close to the same (Depends on how u equip your BMW) but BMW would be a 3 year lease and the maintanance program is included so you really don't have to pay a dime for the 3 years except your payment and your tires)
Put all the pricing information aside, which do you like better?
They all are good cars, BMW is Performance vehicle with luxury build in.
Lexus is Luxury with performance build in.
In my opion, to optimize the advantage of lease, it's better to go with a BMW because payment would be close to the same (Depends on how u equip your BMW) but BMW would be a 3 year lease and the maintanance program is included so you really don't have to pay a dime for the 3 years except your payment and your tires)
Put all the pricing information aside, which do you like better?
They all are good cars, BMW is Performance vehicle with luxury build in.
Lexus is Luxury with performance build in.
Great post.
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