Blk/Blk 2007 GS350 lease deal?? need your opinions guys
#1
Lexus Test Driver
Thread Starter
Blk/Blk 2007 GS350 lease deal?? need your opinions guys
So I'm in the market to lease a 2007 GS350, black on black, base model, NO NAVI. Before anyone suggests that I buy the car, the only reason that I am leasing is because my CPA recommended that I lease it since I own a company (obviously for tax reasons).
My friend who is a salesman over at Longo Lexus got me this quote over the phone today. I needed to see if this was a good deal or not. I have never leased a car before, so this is a first for me.
1. $2500.00 initial payment
2. $658.00 per month
3. All taxes, fees, and registration already included.
4. Four year lease.
I have heard of other car brands that do NOT have a initial downpayment. My friend's mom for example is leasing a brand new 5 series for $550 per month and no initial down.
My friend who is a salesman over at Longo Lexus got me this quote over the phone today. I needed to see if this was a good deal or not. I have never leased a car before, so this is a first for me.
1. $2500.00 initial payment
2. $658.00 per month
3. All taxes, fees, and registration already included.
4. Four year lease.
I have heard of other car brands that do NOT have a initial downpayment. My friend's mom for example is leasing a brand new 5 series for $550 per month and no initial down.
Last edited by kaotiq; 04-10-07 at 09:53 PM.
#2
Check out my thread I just posted on here complaining about the high costs of leasing a GS. Apparently in comparison to BMW, the residuals for the GS are much lower, thus resulting in much higher payments.
For example, you could lease a BMW 335i or 530i for ~$500/month with 0 down assuming the best deal where as with a GS350, at the minimum it would be $700/month with 0 down.
The reason is that according to the banks doing the leasing(Either BMW financial or Lexus financial), they estimate (in my case for a 3year 12k/yr lease) a BMW 335i sedan at the end of 3 year lease being worth 63% of its new msrp where as with a GS350 would only be worth 52% of its new msrp. Assuming a loaded $45k 335i and a stripped $45k GS350, that means over the life of the loan, you are paying an additional 11% of $45k or $5,000.
It sucks but word on the street is that BMW is heavily incenticizing the BMW leases, thus inflating its residuals and also subsidizing the interest rates, bringing the leasing money factor (lease interest rate in other words) down far below market rates. Thus BMW(and also Mercedes) still sells more bimmers/Mercs by making the lease deals very cheap but at the same time they don't devalue the brand image like the big three did by offering thousands of dollars in cash back on their F150s and Suburbans.
For example, you could lease a BMW 335i or 530i for ~$500/month with 0 down assuming the best deal where as with a GS350, at the minimum it would be $700/month with 0 down.
The reason is that according to the banks doing the leasing(Either BMW financial or Lexus financial), they estimate (in my case for a 3year 12k/yr lease) a BMW 335i sedan at the end of 3 year lease being worth 63% of its new msrp where as with a GS350 would only be worth 52% of its new msrp. Assuming a loaded $45k 335i and a stripped $45k GS350, that means over the life of the loan, you are paying an additional 11% of $45k or $5,000.
It sucks but word on the street is that BMW is heavily incenticizing the BMW leases, thus inflating its residuals and also subsidizing the interest rates, bringing the leasing money factor (lease interest rate in other words) down far below market rates. Thus BMW(and also Mercedes) still sells more bimmers/Mercs by making the lease deals very cheap but at the same time they don't devalue the brand image like the big three did by offering thousands of dollars in cash back on their F150s and Suburbans.
#3
Lexus Test Driver
Thread Starter
Check out my thread I just posted on here complaining about the high costs of leasing a GS. Apparently in comparison to BMW, the residuals for the GS are much lower, thus resulting in much higher payments.
For example, you could lease a BMW 335i or 530i for ~$500/month with 0 down assuming the best deal where as with a GS350, at the minimum it would be $700/month with 0 down.
The reason is that according to the banks doing the leasing(Either BMW financial or Lexus financial), they estimate (in my case for a 3year 12k/yr lease) a BMW 335i sedan at the end of 3 year lease being worth 63% of its new msrp where as with a GS350 would only be worth 52% of its new msrp. Assuming a loaded $45k 335i and a stripped $45k GS350, that means over the life of the loan, you are paying an additional 11% of $45k or $5,000.
It sucks but word on the street is that BMW is heavily incenticizing the BMW leases, thus inflating its residuals and also subsidizing the interest rates, bringing the leasing money factor (lease interest rate in other words) down far below market rates. Thus BMW(and also Mercedes) still sells more bimmers/Mercs by making the lease deals very cheap but at the same time they don't devalue the brand image like the big three did by offering thousands of dollars in cash back on their F150s and Suburbans.
For example, you could lease a BMW 335i or 530i for ~$500/month with 0 down assuming the best deal where as with a GS350, at the minimum it would be $700/month with 0 down.
The reason is that according to the banks doing the leasing(Either BMW financial or Lexus financial), they estimate (in my case for a 3year 12k/yr lease) a BMW 335i sedan at the end of 3 year lease being worth 63% of its new msrp where as with a GS350 would only be worth 52% of its new msrp. Assuming a loaded $45k 335i and a stripped $45k GS350, that means over the life of the loan, you are paying an additional 11% of $45k or $5,000.
It sucks but word on the street is that BMW is heavily incenticizing the BMW leases, thus inflating its residuals and also subsidizing the interest rates, bringing the leasing money factor (lease interest rate in other words) down far below market rates. Thus BMW(and also Mercedes) still sells more bimmers/Mercs by making the lease deals very cheap but at the same time they don't devalue the brand image like the big three did by offering thousands of dollars in cash back on their F150s and Suburbans.
That is actually depressing. Now you have opened my eyes to the possibility of leasing a 5-series, but I'm a hardcore Toyota addict. However, in the best interest of my company, maybe it's better to spend less?
#4
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thats a high lease payment.... in 2 months i was going to start shoppin for a gs 350..thats y i joined this site because u get the best real world opinions on forums like this.... i want to lease and if i cant get it for under 600 with 2000 down total then im gonna shop somehwere else cause the numbers dont make sense for a car around 45 grand....
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#8
Lexus Test Driver
Thread Starter
For me, I'm comparing the interiors and reliability factors.
#10
Lexus Test Driver
Thread Starter
Thank you for the info on the M35. I unfortunately do not like infinitis. However, in pertaining to the thread, I am going to give the 5 series a test drive and interior inspection before I make my decision.... although, I'm already leaning towards the GS regardless of the inflated price.
#12
Lexus Test Driver
Thread Starter
what you said just reminded me of something. "Something something something, darkside. Something something something something complete."
#13
Lexus Champion
So this is a 36 month lease I'm guessing? If you build in that down payment into the monthly payments that's $727/month! You know you could get a 60-65k dollar BMW or Mercedes for that kind of payment... V8, fully loaded...
May be more fun to drive? Try WILL be WAY more fun to drive. And yes the interior on the 5 series if laughable compared to the GS - but if I'm leasing a car, I don't care much about how nice the dash feels to fondle. If I was BUYING a car then yes, quality and materials would mean a lot more to me since I'd count on them to hold up over time. Leasing? Nah - I'm just beating the crap out of the car.
May be more fun to drive? Try WILL be WAY more fun to drive. And yes the interior on the 5 series if laughable compared to the GS - but if I'm leasing a car, I don't care much about how nice the dash feels to fondle. If I was BUYING a car then yes, quality and materials would mean a lot more to me since I'd count on them to hold up over time. Leasing? Nah - I'm just beating the crap out of the car.
#14
Lexus Test Driver
Thread Starter
#15
Lexus Champion
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.