canesfan

I am new here and have a few questions about a lease I am thinking about...

I am in Florida and these are the options with the dealer I am working with, I have never leased with Lexus so not sure if they are good deals or bad deals..

2015 IS 350 F Sport-MSRP$47800

24 month Lease
$4000 total Down
10K miles per year
$299 payment out the door tax included

2015 GS 350 F Sport-$57000
24 month Lease
$4000 total Down
10K miles per year
$320 payment out the door tax included

I think obviously the GS seems like a better deal based on price but I think I like the IS better but curious if these deals are in line or not with what would be a good deal?



Thanks

gmanusmc

Looks like pretty good deals but it would not be wise putting that much down up front - if something happens to the car that results in a total loss, you will be out the $4k. Recommend only paying first payment and DMV fees to start the lease.

Edit added: Or use the extra money for multiple security deposits to reduce the payment (the deposits are returned at end of lease if you don't have excess mileage or damage charges ).

kdphan

As the post above me stated, never put any money down unless it's first month payment and dmv fees.

kinglexus99

Yes. $4000 down is a bit much. I put $2000 down to cover first payment and fees. 24 month lease, 10k per year at $540 a month incl tax. 2015 IS350

CashGap

You're paying (4000 + 24 * 299)/2 * 10000 per mile. $.556 per mile.

Or (4000 + 24 * 299)/24 per month. $466 per month plus fuel and insurance.

You're paying (4000 + 24 * 320)/2 * 10000 per mile. $.584 per mile.

Or (4000 + 24 * 320)/24 per month. $487 per month plus fuel and insurance.

Plus fuel, figure a $3.25 per gallon and 25mpg average which adds $.13 per mile.

Plus figure $600/year for comprehensive insurance (varies by FICO score, age, zip code, driving record).

$.75 to $.78 or so for every mile you drive. More if you turn it in with under 20,000 miles, more if tires don't last 20k (probably will).

About 30% more expensive this way. You're paying (2000 + 23 * 540)/2 * 10000 per mile. $.721 per mile, $.91 per mile if my insurance and fuel estimates apply.

Or (2000 + 23 * 540)/24 per month. $601 per month plus fuel and insurance.

By the way, the difference in the lease payments IS versus GS tells you one of two things (or both).

1a. Lexus prefers to sell the GS because it is more profitable.
1b. Lexus prefers to sell the GS because they have more supply relative to the demand.
2. Lexus expects the GS to be worth more at the end of 24 months.

gmanusmc

Most likely, Lexus will be happy that you buy any of their models.

Your satisfaction and fun levels will probably vary dependent upon which model you select and how much you are willing to spend to increase or decrease your satisfaction and fun levels.

It stands to reason that a GS will be worth more at the end of 24 months - it is a much more costly vehicle to begin with. That said, there are a number of GS members in that forum who are a bit disappointed with trade in offers they have been receiving.

CashGap

They are offering an incentive to lease the GS.

Right, I should have said, the numbers presented say that Lexus thinks the GS will hold a higher PERCENTAGE of it's value, thus they calc a higher residual. They are letting him drive $10,000 more car with only $504 more over two years. So the differential residual is 95%, the GS has much higher residual value OR they have more proportional margin OR are oversupplied.

Rule of thumb, if you are trading a car and happy with the trade in, you're getting rolled on the one you are buying!!!

gmanusmc

Was just trying to point out that some GS folks were receiving offers much less than they expected, given they had purchased/leased a vehicle they thought had a much higher resale value. I think most folks who have been buying cars for awhile know that trading a vehicle in is probably not the best way to get the best deal financially speaking.

It seems you are into details - just an observation in your calculations - the $4k canesfan cited in his figures probably included the first month's payment, so your figures probably should have showed *23 instead of *24.

If people would figure their lease's cost per mile like you showed, they would probably look at their deals more closely and end up better off in the long run.

CashGap

Agreed, but didn't want to assume the $4k included first payment.

Knocks off a penny and a half per mile if it did, not a huge movement.

Agreed further, that's a TON of money per mile/month just for a car but fortunately for the manufacturers most don't run the math.

By comparison, buy the $50k and put 100,000 miles on it (likely trouble free in a Lexus), sell for $15k and you would be spending about half that amount per mile.