Lease savings by getting a leftover?
08-21-19, 08:01 PM
#1
Instructor
Thread Starter
Lease savings by getting a leftover?
Posted in car chat but figured I would post here as well to get as much input as I can. Thinking about leasing an IS for an extra car. For anyone who is familiar with leasing (I generally buy my cars), what kind of savings can I expect by choosing to lease a 2019 car once the 2020 models come out? Also again for anyone who has experience with leasing, when is the best time to get an IS lease? When do they expect to release the 2020 models. I plan on going in at the end of the month but I would wait if there will be significant savings. I am hoping to put no money down and get about 10,000 miles a year.
08-22-19, 04:05 AM
#2
Driver School Candidate
Join Date: May 2019
Location: FL
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I love your question, I've spent a few months on learning on LeaseHackr forums and here's what I got for you. Leasing makes sense if the car leases well (The manufacturer offers good residual value numbers and big incentives like lease cash). I'm in Florida and the current lease cash is $4,000 for the IS, this can depend per location.
To simplify things, leasing is a way of financing a car. So if you wait for 2020 to come out and lease a 2019 that has been discounted that should help your selling price which is used no matter if you lease, buy, or finance to buy. It's the most important number.
If you're looking for the hottest deals there are times when certain other models make more sense, like the last craze on loaner BMW 4 series which were leasing for dirt cheap compared to it's competitors. At the end of the day, I suggest you visit those forums and research IS deals or talk to a broker which for $200-400 can make the process a lot easier, especially for first timers.
To simplify things, leasing is a way of financing a car. So if you wait for 2020 to come out and lease a 2019 that has been discounted that should help your selling price which is used no matter if you lease, buy, or finance to buy. It's the most important number.
If you're looking for the hottest deals there are times when certain other models make more sense, like the last craze on loaner BMW 4 series which were leasing for dirt cheap compared to it's competitors. At the end of the day, I suggest you visit those forums and research IS deals or talk to a broker which for $200-400 can make the process a lot easier, especially for first timers.
08-22-19, 07:02 AM
#3
Lead Lap
I could be wrong but while the vehicle is going to be discounted, the lease is also factoring the residual value of the car which in this case, would be worth less when the new model comes out....Acquiring a leftover model with a heavily discounted price is, in my opinion, more advantageous from a straight purchase point of view....I could be wrong though.
08-22-19, 07:13 AM
#4
Instructor
Thread Starter
I love your question, I've spent a few months on learning on LeaseHackr forums and here's what I got for you. Leasing makes sense if the car leases well (The manufacturer offers good residual value numbers and big incentives like lease cash). I'm in Florida and the current lease cash is $4,000 for the IS, this can depend per location.
To simplify things, leasing is a way of financing a car. So if you wait for 2020 to come out and lease a 2019 that has been discounted that should help your selling price which is used no matter if you lease, buy, or finance to buy. It's the most important number.
If you're looking for the hottest deals there are times when certain other models make more sense, like the last craze on loaner BMW 4 series which were leasing for dirt cheap compared to it's competitors. At the end of the day, I suggest you visit those forums and research IS deals or talk to a broker which for $200-400 can make the process a lot easier, especially for first timers.
To simplify things, leasing is a way of financing a car. So if you wait for 2020 to come out and lease a 2019 that has been discounted that should help your selling price which is used no matter if you lease, buy, or finance to buy. It's the most important number.
If you're looking for the hottest deals there are times when certain other models make more sense, like the last craze on loaner BMW 4 series which were leasing for dirt cheap compared to it's competitors. At the end of the day, I suggest you visit those forums and research IS deals or talk to a broker which for $200-400 can make the process a lot easier, especially for first timers.
Thank you for the information. I am also in FL my dealer is saying $4250 toward cap cost reduction which was interesting when I read it and made me interested in leasing the IS to begin with but I wasn't sure if that was a real incentive or a marketing ploy. I will check out that website as well I wasn't aware of it so thank you for that as well.
08-22-19, 07:14 AM
#5
Instructor
Thread Starter
I could be wrong but while the vehicle is going to be discounted, the lease is also factoring the residual value of the car which in this case, would be worth less when the new model comes out....Acquiring a leftover model with a heavily discounted price is, in my opinion, more advantageous from a straight purchase point of view....I could be wrong though.
08-22-19, 08:53 AM
#6
Last year for December to Remember, shortly after the 2019 came out, Lexus was offering $6,500 lease cash in the 2018 models. I missed out on a 2018 because I absolutely wanted a grey on red F Sport, no exceptions. Of course right after I signed a 2018 popped up... oh well. In addition to that, you should be able to negotiate at least $4k off MSRP. $5k is realistic unless you go to an extra bougie dealership with expensive clientele like I did.
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08-22-19, 09:09 AM
#8
Instructor
Thread Starter
Last year for December to Remember, shortly after the 2019 came out, Lexus was offering $6,500 lease cash in the 2018 models. I missed out on a 2018 because I absolutely wanted a grey on red F Sport, no exceptions. Of course right after I signed a 2018 popped up... oh well. In addition to that, you should be able to negotiate at least $4k off MSRP. $5k is realistic unless you go to an extra bougie dealership with expensive clientele like I did.
08-22-19, 09:20 AM
#9
Lead Lap
They keep emailing me to get me in a new 2019 IS (even though I've moved to a 330i now), and the discount they offered was around 5k + 3k something in rebates.
Even though the discounts were good, the residuals of these cars is too low currently so the monthly was higher than my current IS (by a lot....)
For the people looking at the price, make sure you also factor in the residual and MF, don't assume a lower price means lower payment. There's a lot of factors that come into play. End of month can play into effect as well as the 2020 coming to lots soon can also mean bigger discounts on the 2019 since they want to move them out the lots.
Even though the discounts were good, the residuals of these cars is too low currently so the monthly was higher than my current IS (by a lot....)
For the people looking at the price, make sure you also factor in the residual and MF, don't assume a lower price means lower payment. There's a lot of factors that come into play. End of month can play into effect as well as the 2020 coming to lots soon can also mean bigger discounts on the 2019 since they want to move them out the lots.
08-22-19, 09:59 AM
#10
Instructor
Thread Starter
They keep emailing me to get me in a new 2019 IS (even though I've moved to a 330i now), and the discount they offered was around 5k + 3k something in rebates.
Even though the discounts were good, the residuals of these cars is too low currently so the monthly was higher than my current IS (by a lot....)
For the people looking at the price, make sure you also factor in the residual and MF, don't assume a lower price means lower payment. There's a lot of factors that come into play. End of month can play into effect as well as the 2020 coming to lots soon can also mean bigger discounts on the 2019 since they want to move them out the lots.
Even though the discounts were good, the residuals of these cars is too low currently so the monthly was higher than my current IS (by a lot....)
For the people looking at the price, make sure you also factor in the residual and MF, don't assume a lower price means lower payment. There's a lot of factors that come into play. End of month can play into effect as well as the 2020 coming to lots soon can also mean bigger discounts on the 2019 since they want to move them out the lots.
Does anyone know if the 2019 IS300 non F sport has apple car play without the navigation package?
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wthrman2 (08-22-19)
08-22-19, 11:39 AM
#12
Lexus Champion
I saved a great deal of money when I leased my 2015 GS350 at the end of the year (December to Remember event). This was just as they were getting the first few 2016 GS350s (refreshed models) on the lot. The Lexus lease cash was $5k and I got a little over $5k off from the dealer, so all told it was about 17% off.
08-22-19, 03:37 PM
#13
Lead Lap
08-22-19, 03:43 PM
#14
Lead Lap
The IS has alot of trunk money for these things (were talking 2015 RCF money). The only thing you`d be giving up by waiting is selection if you want a ultra rare build. Otherwise waiting is your friend.
08-22-19, 05:06 PM
#15
Lead Lap
Agreed. The IS sales are dropping at a fast pace, waiting can only be beneficial. Here are the sales figures for July 2019 from Lexus USA.
Seeing the IS sales for July having declined by 38.2% and YTD declined by 27.5% has GOT to be concerning Lexus. I know there's others on this list as well which have declined, but the IS is the second most sold vehicle in this category (cars, not SUVS). The ES is the only other car on the list in 4 figure sales per month, and it is in the green. Lexus, residuals should be going up, not DOWN! What are you doing?