mikedozz

Hey guys, this question is mainly for those who have leased a GS before or are leasing one now and pay around 630 and under a month. Would you make the extra leap of another possible 80 to 100 a month to continue to drive a GS or would you bump down to an ES or change brands. (Acura, Infiniti, Mercedes, or BMW). Just curious, I have talked to many dealers in the last few weeks and they say that Lexus is not making that many of the GS's anymore so therefore lease payments will most likely be in 700s for now on. Just curious on what people are thinking as there current leases are expiring or about to in the future. thanks

NJSID

My Pmt Is 652/mth With Multiple Security Deposites 700/mth Sounds Good Wwith Like 2k Down....

mikedozz

if you don't mind me asking, how much was your total out of pocket with your multiple security deposits down.

rominl

iTrader: (4)

over 700 bucks a month on a gs350 lease is a lot of money imho...... we lease the sc430 for less than 800 bucks.....

Cut-Throat

A lease is the most expensive way to buy a car. I pay cash. If I did not have the cash, I would find a low interest loan.

Rent your house not your car!

Yang1815

iTrader: (1)

I agree.

250-awd

I am sorry to say but I think you guys are mistaken. Leasing is always a cheaper way to buy a car in the long run and this is not just coming from me. I actually ran this comparison today by a guy who was in the leasing business for 20 years and him as well as me ran lease and buy out vs straight finance vs cash purchase on a car and leases always ran less money in the end regardless of the car company. I think what many people don't do is properly PV their cashflows to come up with the real amounts. If anyone wants me to run a few numbers for them and prove it, by all means ask as I am always up for practicing my financial calculator.

Cut-Throat

Well, I know that Buying is cheaper than leasing. So you are dead wrong!

Yang1815

iTrader: (1)

Hmmm...

Maybe financing to buy with an interest would cost more than leasing but I can't see straight out cash purchase costing more.

Unless you take into account of the available cash flow for successful investments.

Bushwack

I think paying cash is nuts (unless you have no need to pay a note via a business expense). And for argumentative sake, with all the stars in place, there was a time within the past 4 years that you would be better off taking a car note at 5.5% and placing your cash in a conservative mutual fund. At 9% return, calculate some taxes, business expense (if you have it), etc., you'd squeak buy in the black. Not by much and probably not worth the end result, but doable.

Side note: Plunking down cash on a car that drops in value the first turn of the wheel, ...didn't you take econ 101 in college? Remember 'OPM'?

Jace7

When I had a payment with my trade in I financed about 60K, that was about 940/month, so depending on the purchase price you are financing, that doesn't seem bad.
Also, I put zero down out of pocket besides what the trade in was worth.

Yang1815

iTrader: (1)

O/T: Is it mandatory for every college student to take econ 101? No.

Some people have enough cash that it'd be simpler to buy it straight up and there is nothing wrong with that.

Let's focus on if leasing is truly a better/cheaper way to buy a car.

Any takers?

rominl

iTrader: (4)

please by all means if you have real numbers and comparisons, post it up. saying leasing car and then buy out is cheaper than paying cash doesn't make much sense, unless you are saying there are some 100% guaranteed way to get more returns on the money you keep in the pocket over the years than if you pay cash today.

on the other hand, leasing CAN be cheaper than finance indeed. when we leased our sc430, i did the math and with some playing around on the money, we figured it's cheaper to lease for 3 years and then buy it out, rather than finance the car through.

but i would really like to know how leasing + buy out can be cheaper than cash (again, guaranteed).

Cut-Throat

Run those numbers in the year 2003. - Your mutual fund would just about have recovered by now.

Yes, I took Econ. Did you?

BTW - I retired at age 50 - Will you?

gstois

First off, how can you compare a lease payment without discusing the term, out-of-pockets, mileage, and the options on the car.

Second, leasing is really not that different than financing the entire car. In fact, it's excatly the same except you give the car back and therefore don't have to pay off the entire "loan". Essentially it is a partially amortizing loan with the buyer paying interest (for dummies called a money factor) on the entire value and principal (equal to the depreciation (cost less redisual)).

Therefore it is really misleading to say that one is better than the other. You have to nogotiate a lease just like a purchase:

1. Get the best price on the car
2. Get the best interest rate (or money factor X 2400)
3. Figure out if the residual is fair considering the mileage and used market for the car in question.

Asking "Is $700 good for a lease payment" is almost like falling for the oldest dealer trick in the book: "What do you want your payment to be."

Finance 101: Leasing equals buying with a loan and a guaranteed trade-in value. If you don't believe me I can show you how to do the calcs in excel.