Would u pay over $700 per month on a new GS350
#1
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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
#7
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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.
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#8
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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.
#10
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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'?
#11
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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.
Also, I put zero down out of pocket besides what the trade in was worth.
#13
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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.
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).
#14
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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'?
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'?
Yes, I took Econ. Did you?
BTW - I retired at age 50 - Will you?
#15
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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.
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.