I agree. Why no financing? BTW, I am paying 2.5% interest on my Lexus (got it CPO with less than 10,000 miles).

 

 

Just don't make hurried decision. BTW, congrats. on your accomplishment.

 

Oops, I've already spoken with the Lexus dealership to generate a quote for the lease. Hoping the graduation discount will help offset getting an F sport. 2 more questions:

How bad is not having "no money down" on a lease agreement? Seems like no money down is the gold standard for a good deal, but worried I might not be able to get that. This is a $40,000 car after all...

What's the best color? I can't pick. I like the Atomic Silver the most so far (nebula is a bit too drab or blue for me), but I'm intrigued by Caviar. Not sure I've seen this color out in the wild much though.

Thank you

 

Most people would say the best color it the one they picked. So to answer your question, the best color is Matador Red Mica

 

I'm a fan of black cars, but they are a pain to keep clean especially if you're OCD like me. Silver or gunmetal colors would be my second choices.

 

This is the color of my IS350 too. But for me it was the whole package - I was super sensitive to the exterior/interior color combination and I "had" to have flaxen interior - this wasn't easy to get.

 

I’d say our budget is no more than 20k-30k after tax. And that puts us a beyond the “20% of your income rule” - you can do the math.
Actually, you don't. This is exactly what leverage is and this is how investment banks, hedge funds, and private equity firms make money. If you get a loan at 2.5% (which is very easy), and invest the 30k in the SP500 at a ROR of 10% a year, then you'll be making 8%, versus paying all cash. You're actually making money given how low interest rates are now. I would never recommend paying in cash right now, and would consider that unwise - but it's all up to you because it does reduce stress/worry about making payments.

Also, I would definitely go with leasing in your case if that's what you're thinking about. Above posters are right - the IS's are due for a refresh in 2020 so if you have a chance to drive the new IS right now then buy the new gen, then that's what I would do if I had your income.

The best color IMO is Ultrasonic Blue. A rare color and stands out, and is beautiful. I have had my car for 7 months and still take a look back when I'm walking away from my car to admire it, lol. The color/paint is seriously just amazing. If you want, you can check out the color at my Instagram: https://www.instagram.com/usb3is/

 

 

I would check out what the dealers are offering for new 2018s on a lease.

Since it is midsummer, they will offer great incentives and low finance rates.

If you want to keep the car long term, with a lease, you can keep your options open still buy it out after the lease matures for an very good below what you could get it used, but you had the car from day one.

Yes, cars depreciate the most the first few years and you don't own the car at the end of the lease. If you finance, you don't own the car either until it is paid off. And in the event it is in a severe accident, you don't want the car back because of resale value but may be stuck with it.

I would do the math and figure out the least expensive option over three years and then revisit. You can't go wrong IMO with a used 2014+ IS, but keep in mind as reliable as it is, used cars you may still need to spend money on consumables like tires and brakes which you don't need on a new car, not to mention they have warranty.

Hope this helps.

 

Definitely Lease. There are only a couple of more years for this generation IS anyways. Besides that, It's always nice to get something new every 2 or 3 years.

 

I wonder when this gen with end? we already have 5 model years thus far, hopefully the 2019 MY is the final year for the 3IS, which should debut next month or so. That way next fall we can see the new 4IS.

 

With the average new car selling for about $35k, I think that most people are spending more than 20$ of their salary.

 

20$ is typo for 20%? If 20% goes for a car what percentage for housing? Does it agree with Engel Index?

 

You also have to consider, some people have multiple vehicles. With my and my wife's cars combined, I am actually spending just under 19% of my salary on their payments. I should probably be spending less, considering that doesn't include insurance. But yeah... I didn't get the best deal on the IS lease, which I wish I would have known. Should have joined CL earlier.