Looking for some advice. This is the first time I’ve ventured in to a $60k MSRP range car. Although I’m not paying $60k for the car, the lease payment is high due to the fact that I’m not putting any money down…..well, I am paying the difference on my trade-in between what the dealer is offering and what I still owe on my 07 GS350 ($2k). Here is what the dealer is offering. Lease: $0 down, 48 month, 10k miles, at $861 a month with tax. Price on the car is $49,500.00. Details on the car…..2008 Blk/Blk w/Lev. Still trying get comfortable with that big of payment. Current payment is $659. Thoughts?

 

where in ca are you? socal or norcal?

i priced on the is-f at the end of last year. 0 down 36 months, 12k miles, and it was roughly the same price you got quoted now i think. of course, back then they had december to remember so they had better rates, but still i don't think your deal is that good. the car i looked at was 61k msrp and with tier 1+ credit

i don't know what the rate is for january (likely higher) so maybe that's why. also they might have dropped the residual on the car further so that will hurt the lease payment too

 

Sounds okay. That's about what you would pay to finance the car for 60mo w/no money down, but you get unlimited mileage. Why don't you sell your car on the open market for what you owe on it which I am assuming will be a below average price and keep the $2k to put down on the F? Should lower your payment another $100+. I've always had success getting a couple thousand more annual miles out of a dealer during negotiation. Ask the dealer for 12k mi per yr at the same rate.

 

I'm in socal.

You're right about the december to remember rates. They were more then a point lower on the money factor, but that ended 1/7/09. I just missed out on that :-( During that december program they were also offering $3k back to the dealers to move the 2008 models. To make up for the higher rates that have now increased that amount to $5k. The dealers call it "Trunk Money". Yes the residual went from $28k down to $22k, BIG drop which BTW is the same residual as the IS350. Very strange.

 

I had also looked at a buy. Quote on the buy was 84 months Amazing the terms can be that long for a car now days. $0.00 down at $838 a month. After those terms were up I would have paid $70,392 for the car.

For a lease it would be $861 x 48 plus the $22k residual if I decide to purchase...the total would be $63,828. It would make more sense to lease.

I could wait it out to see if the lease rates drop but the dealer doesn't think any new rate would effect the 2008 models, bc of the $5 trunk money being offered.

I've thought about selling my car on my own. I'm usually pretty good at that. Just sold my 98 Supra not to long ago on eBay. I should look into that.

 

28k to 22k residual, that's a big slump, almost 7%!!! in the case the 3-5k incentive doesn't help much i guess with that residual and the higher money factor, that number sounds about right

 

Yeah, higher lease payments......but low payoff. December to remember was lower lease payments higher residual. The final number adds up to be the same anyway you look at it. It's still a great price for the car! Just the step up from $650 to $850 has got me REALLY thinking about this. I can afford it no problem......just the new 4 year commitment I'm trying to soak in.

 

well that's if you are thinking about buying out the car after 4 years. otherwise it won't help you much.

about the absolute values, if you are going to look at cars 60k or above, you just have to take that hit on the increase payment.