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If you want to change your car every few years leases are amazing. If you want to change anything it’s not the best idea. Purchasing a used car is a good idea if you can keep your rate below 3%. Any hirer look else where or lease.
I finished my PhD this summer and by great fortune I just received a job offer with a salary that is more than 3x what I earned as a graduate student. The IS 350 has always been my dream car and my wife needs a new car in 2 months. The timing couldn’t be better but how much should I really spend? Ive heard the 20% rule but I don’t think I can find a slightly used 3G IS 350 for that cheap. I prefer low miles as my current Prius already has 90,000 miles. We have no debt or loans and do have plenty of cash so no need for financing, but do you usually spend that much on a car? This is all new to me...
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.
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
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.
Thanks for mentioning this. I'd say you can probably find a 2015 IS if you want that should be around that price. My 16 IS came at 40k out the door.
any reason you suggest CPO? I bought my last Prius 6 months ago from a private party. Got it inspected independently with mechanic and going that route definitely saved me a few thousand dollars. Granted I got lucky in finding a really great seller (we still text) but after that I was convinced private is a better way to go.
CPO because it's Lexus certified and they have a 160 point inspection to make sure the car meets Lexus standards. Also, you get an additional warranty beyond the car's original, along with other warranty stuff that I can't remember lol.
Lastly, financing when you don’t need to doesn’t sound like a great idea. You end up paying more. Plus I already invest a decent amount.
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.
Oooooo what do you guys think about leasing? I know it goes against my philosophy of wanting to OWN a car but at their current offers we’d only pay about $15000 over 3 years. Plus I have a $1000 off coupon from he Driving Tour. Thoughts?
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.
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.
07-27-18, 10:09 AM
The color/paint is seriously just amazing. If you want, you can check out the color at my Instagram: https://www.instagram.com/usb3is/
