Is-F Lease
02-15-08, 06:37 AM
#46
Lexus Champion
^^^^^^ You are right that until you have the money you really wouldn't know how you would act. Rich people who worked for their money usually are careful with it, those that didn't work for it (lottery winners) have a different view towards it. Maybe I'll win a lottery some day and have a chance to find out what I'd do. But I still feel your internal value system has a strong impact on how one acts from a financial point of view.
02-15-08, 06:45 AM
#47
Lexus Test Driver
^^^^^^ You are right that until you have the money you really wouldn't know how you would act. Rich people who worked for their money usually are careful with it, those that didn't work for it (lottery winners) have a different view towards it. Maybe I'll win a lottery some day and have a chance to find out what I'd do. But I still feel your internal value system has a strong impact on how one acts from a financial point of view.
02-20-08, 09:48 AM
#49
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I think if you are making enough money and everything else is taken care of, then I suppose you can justify an expensive car payment. If your credit is trashed, you live paycheck to paycheck but you gotta have this car, it may not be such a smart idea. When the initial funfactor blows over, you'll still have plenty of payments left to take care of.
I work but I also run an online business and whenever I'm thinking of making a big purchase, I take the cost of that product, and then find out ways I can offset the cost or find out what more I need to do to make this purchase easy in the long run. I just feel that if you make a purchase without a full plan, in the long run it can become a disaster.
lets face it, if you are working year to year, your income may go up by 5% or 10% if you are lucky.
I work but I also run an online business and whenever I'm thinking of making a big purchase, I take the cost of that product, and then find out ways I can offset the cost or find out what more I need to do to make this purchase easy in the long run. I just feel that if you make a purchase without a full plan, in the long run it can become a disaster.
lets face it, if you are working year to year, your income may go up by 5% or 10% if you are lucky.
02-22-08, 08:38 PM
#50
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Well, I sort of agree and disagree with a lot of this. I have the money and could put down pretty much $20k and would simply becaue I despise writing checks every month. The one time hit doesn't bug me much but the long bleed is a killer. I own a hedge fund and I'm well aware that doing that would be financial stupidity but it just makes me feel better so to me it's actually worth it. On the other hand, I don't feel that paying out the wazoo is a smart move either and it offends my fiscal sense of responsibility. Honestly, much of it comes in the way you look at it. If this is your daily driver and is only a "tool" to get you from point A to point B; go buy an accord/camry/focus/whatever. You can get away with paying something like $200 a month and get incredible gas mileage and get your payment down to that magical number my father used to tell me, 10cents a mile. If you see this as a toy: then factor in what you would pay per month for pride of ownership and fun. That might be a big number. At the end of the day, for me, it's a little of both. I bought my current car on a whim just because I liked the way it looked and loved the steering. I've got toys but I enjoy stomping the pedal and there were so many damn bmw's and audi's in this town I was dying for something you don't see often. It's also the reason I'm looking at this IS-F. So, here's the bottom line I got from the dealer today for one in stock:
$1,120 for 36 month lease with zero down. (I'll ask about that MSD thing, never heard of that before).
Now, there is just nooooo way that I'm driving this for 3 years so I'm turning it down but if someone else gets better numbers I'd LOVE to know how and where.
$1,120 for 36 month lease with zero down. (I'll ask about that MSD thing, never heard of that before).
Now, there is just nooooo way that I'm driving this for 3 years so I'm turning it down but if someone else gets better numbers I'd LOVE to know how and where.
03-01-08, 12:24 AM
#52
LFS give you "gap" for free on a lease so that's not a problem. Most insurance companies will sell you gap insurance a lot cheaper than a dealer. I've seen dealers charge anywhere from $200-$600. My old insurance company Mercury Insurance charged me $6 every six months for gap insurance. After a year, they automatically took it off since the car was worth more than what I owed on it, no need for gap anymore.
The reason that you should never put a down payment on a lease is very simple. Let's say you decide to put down $10,000 to reduce your monthly payment on a lease. On the way out of the dealership, you are so excited and floor the car and run into a tree, totaling the car. Well, you just lost the $10,000, you will not get it back from the dealership, LFS, or from your insurance company, so at anytime something happens to your car, you end up paying more than somebody that didn't put a down payment. Same situation, but you put nothing down, in this case insurance takes care of the bill. The only thing you are out if you total the car is first months payment and registration. Bottom line, DO NOT PUT A DOWN PAYMENT ON A LEASE, unless you own a hedge fund like the poster above.
The smart thing to do is put a MSD, multiple security deposit, on a Lexus lease. The MSD is 100% refundable security deposit, meaning you get all of it back at the end of the lease. It's calculated by rounding up your monthly payment to the nearest $25 interval. So if you have a month payment of $552, your each MSD would be $575 since it is rounded up to the next $25 interval. Each MSD at the moment reduces your MF by 0.00007, it's a small amount but you get to do 9 total. What happens for most people is, they end up putting a total MSD amount of about $5000-$7000, because of the reduction is the MF, your monthly payment goes down anywhere from $30-$50 a month. You basically end up saving about $2000. So for the $6000 that LFS is holding, you're saving $2000, or actually earning $2000 tax free. Even the best savings account doesn't give you that kind of return. Of course if you have a hedge fund or some awesome investment, that $6000 maybe could be invested somewhere else for a better return. Anyway, you get the point, also these numbers are estimates but the 0.00007 reduction is correct.
The reason that you should never put a down payment on a lease is very simple. Let's say you decide to put down $10,000 to reduce your monthly payment on a lease. On the way out of the dealership, you are so excited and floor the car and run into a tree, totaling the car. Well, you just lost the $10,000, you will not get it back from the dealership, LFS, or from your insurance company, so at anytime something happens to your car, you end up paying more than somebody that didn't put a down payment. Same situation, but you put nothing down, in this case insurance takes care of the bill. The only thing you are out if you total the car is first months payment and registration. Bottom line, DO NOT PUT A DOWN PAYMENT ON A LEASE, unless you own a hedge fund like the poster above.
The smart thing to do is put a MSD, multiple security deposit, on a Lexus lease. The MSD is 100% refundable security deposit, meaning you get all of it back at the end of the lease. It's calculated by rounding up your monthly payment to the nearest $25 interval. So if you have a month payment of $552, your each MSD would be $575 since it is rounded up to the next $25 interval. Each MSD at the moment reduces your MF by 0.00007, it's a small amount but you get to do 9 total. What happens for most people is, they end up putting a total MSD amount of about $5000-$7000, because of the reduction is the MF, your monthly payment goes down anywhere from $30-$50 a month. You basically end up saving about $2000. So for the $6000 that LFS is holding, you're saving $2000, or actually earning $2000 tax free. Even the best savings account doesn't give you that kind of return. Of course if you have a hedge fund or some awesome investment, that $6000 maybe could be invested somewhere else for a better return. Anyway, you get the point, also these numbers are estimates but the 0.00007 reduction is correct.
03-02-08, 09:33 PM
#58
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