I’m a lease guru and break down all the numbers and get the residuals and finance rates ahead of time.

That monthly payment is acceptable considering Lexus residuals across the board have seriously gone down the ****ter since 2015. Back then, the IS had a 65% residual for 36 months and a fairly low rent charge. Same thing with the RC. A 24 month lease for an RC at the time was 72% for 10k miles a year. Now it’s 54%. Rent charges are still Uber low, but residuals have also tanked. Either Lexus Financial Services didn’t have their numbers correct and undergoing severe structural adjustment or they are basically ripping customers off for essentially the same car. I have a 2017 IS that’s soon to be returned. I’m really interested in leasing a 2019 RC but can’t justify spending almost $200 a month more for the same car that I leased mid 2015.

 

Well I think that Hiring/Leasing a car is a waste of money, unless you own your own company and buy a car with a GVWR over 6000 lbs, then you can write the ENTIRE car off your business. Otherwise, you are just wasting your money "hiring" a car and then you earn nothing. Just because of an attractive payment, that is what suckers people into it. But yes, residual values are often fictitious in any case. Lexus has just gotten more clever saying that the Residual Value would be LESS, so they can get MORE MONEY from the customers "hiring" their cars. The residual value may be more than after, but it doesn't matter since the customer will have to turn in the car at the end of the lease.

 

Said like a true misinformed individual. Only those unwilling to learn the ins and outs of leasing thinks this unfortunately. Buying a car is only good if you intend to keep it for more than 4 years. Otherwise, it's throwing money out the window. With modern day technology always changing, there's really no incentive in keeping a car long term unless its intended to be a collectible. Otherwise, leasing is much less wasteful that financing.

 

Well, your maths must be really poor. Hire Purchasing and BUYING A CAR on a contract is "throwing money out the window?"

Let's take the case of the person who purchased his IS300 at the Gross Cap of $42,220, whatever amount. His monthly payments at $514 for 42 months. That is $21,588. You are trying to tell me that you are paying $21,558 to HIRE a car for 42 months, and then RETURNING the car at the end of the hire contract and then PAYING a Disposition fee and then "walking" away from the car, is NOT throwing your money away??

Let me explain my rationale behind why leasing is a waste, because sometimes a clown (you) needs to be educated. That's OK, the ringmaster is here.

Let's say that, I BUY this Lexus IS300, and I am clever and smart. I pay $37,400, after the Lexus Rebate, negotiating to the Invoice Price, negotiating the Dealer Holdback and using whatever else discount possible EXCEPT my Toyota discount I would get from the manufacture because I do business with Toyota Motor Company (to be fair clown, for everyone).

Lets say I PURCHASE this car, at 1.9% per year interest for 72 months. Now keep in mind, EVEN if I drive just 10,000 miles a year, JUST like the lease contract says, in 6 years I would have put 60,000 miles. Remember clown, Lexus has a 6 year, 70,000 mile POWERTRAIN GUARANTEE, on top of the 4 year 50,000 full coverage guarantee, so no worries about anything going wrong with the car or break downs. My payment is around $523 a month. Now lets even say, I SELL the car at 42 months. I owe $15434 and my RESIDUAL ESTIMATE by Lexus is around $19300. So even if I SOLD my car for lets say even $19,000, I AM STILL NET POSITIVE for $3,566. So I actually get money back?? WOW! Oh my god, I am clever.

This is why lease/hiring a car is a WASTE of money. Unfortunately some people have a brain the size of a pea, and some people are just stupid. BUT, there are some people who are clever with their money. I will let you think real hard and decide which category you fit in. And I won't charge you anything for the advice I just gave pro bono.

And by the way Fuzco, That's OK if you like to waste money, do whatever you want. I don't get an f. But do the maths before saying someone is misinformed. Show your case. Prove it. Don't just pass whatever "fake" information you have gathered; prove your case! And have a nice day.

 

This is all based on rationalization. You don’t even consider maintenance long-term, And the fact that you’re paying a higher monthly nut For something that’s going to depreciate significantly past three years. This explanation makes absolutely no meaningful sense, but thanks for trying.Leasing certainly isn’t for everyone, especially those who don’t know the numbers or how to play the game. In fact, that’s the reason why a lot of people buy instead. They’re afraid of getting ripped off because they’re not willing to do the research. You just sound like a old fool justifying your ignorance about leasing. There are many factors involved. It is not simply black-and-white as you’re suggesting. Good luck with that.

 

Are you kidding me? You have to pay for Maintenance whether or not you Lease or Hire Purchase a car? You still have to do the same? The point is YES it will depreciate, but I mean, why not get something back than zero? I mean why not just buy an already depreciated asset? My wealthiest customers in Europe, Germany and Great Britain, unless they owned their own company or business, they NEVER bought a new car. It just makes money sense to buy a 2 or 3 year old car? But I mean of course, with a new car, there is the show off factor, the fact you are getting a new car, so it's absolutely new. Just a comparison, and this is why I say there was no need to say MISINFORMED individual.

LOL Old fool. I am definitely too young! Too young to be explaining to an old mold like you, the proper rationale. You sink your money into a car, sink or swim, when you hire/lease a car. It is as simple as that. You lose out. Period.

 

This forum doesn't need a troll with 14 posts blasting wrong information.

 

 

Guys I really don't understand the tone of some of these posts. The deal the OP got seems, from my estimation, to be within what I'd expect to pay - perhaps a little on the high side. I'd say it's probably an OK deal for a 12k/year lease, but at 10k it does seem high.

OP, there is no need to stress. Compared to me, you did pretty well for yourself. I've been stuck with $599 lease payments on my IS since 2016. And it's also a 300 AWD F Sport, not too different from yours. I also had (effectively) zero down, but am doing a 12k/year mileage lease, for 42 months. If it fits comfortably within your budget and you're okay with the residual and buyout amounts, I don't see any issue.

I honestly think this thread has run its course and is bordering on embarrassing. If you have nothing meaningful to add, please consider refraining from posting.

 

This thread is done. Please do not continue the arguments in future threads.