axis77

Ok how many out here are leasing vs financing....if so what are the pros and cons of both sides...also when you lease can you still haggle the sticker price?

btwanky

its best if neither... but if you choose to.. i think with the current economical times.. financing would be a good investment... with 2.9% APR, on the IS line.. you can get a good deal.. and sell the car 5 years down the road

rominl

iTrader: (4)

really depends on your habit with cars, how often you change cars, etc... if you keep the car for relatively long (i mean >5 yrs), financing is probably a better option. if you keep it short, lease is usually a better deal

you always have to do a lot of math to see which one is better. keep in mind though, either way you will be paying "interest" so you need to see with the same base which one leads to less interest

for me on my gs350, leasing for 3 yrs and buyout (if i choose to) will end up paying LESS "interest" than financing for 3 yrs. so that's why you always have to see

one good thing about lease (depends on area, for example here in CA) is that you pay tax only on the portion of the car you own. so that means i pay tax on only part of the price of the car. lease and finance it's the same, you negotiate on the price of the car, always.

BMWM2ISF

I have always bought my cars cash in the past, but I am curious as to how leasing can work to my advantage, especially now with low interest rates.

i understand the basics, but need to learn the fine details that the dealer doesn't tell anyone...

PhiDeltBee

iTrader: (1)

I ended up with 2.65% on 72 months on a 2011 a few weeks ago (FYI). Thru Lexus. I plan on keeping this car and paying it off in about 2-3 years time. Then probably buying another GT-R (depending on what else is out at the time).

caco666

I keep my cars for a long time so buying and financing is my choice. I've had my current Honda Prelude for almost 13 years and I paid that off in 5 years. I will be financing my 2012 ISF and plan to keep it for at least 10 years and pay it off in under 3 years.

No matter how you slice it, buying a (reliable) car and hanging on to it for a while is the more sound financial decision than leasing. However, leasing is more fun.

fleadog99

iTrader: (2)

What I did was lease with buy option. I got the lower monthly payments at beginning, and now after 3 year lease on my 08, I just purchased the remaining balance which was around 27K. The great thing about that is, I purchased a car that is already to my liking and that it only had 1 owner me. lol. The new body style wasn't out this year, so I decided to purchase the remaining cost. Just remember in leasing the MILEAGE will kill you at the end if you put a ton of mileage on a car. I currently only have 17K on an 08.... WOW! That seems low. I need to drive more. To me it was budget concerns at the beginning. The price I got on a new 08 back in dec. 08 was $52,500 out the door.

Diesel350

Leasing is a bad idea for most.

rominl

iTrader: (4)

you need all the numbers on both sides to make a good decision. you are in CA, for starters if you lease, you only pay tax on the portion of the car you own. say a 50k car, and say tax is 4k. if you lease the car with 50% residual, that means you only pay 2k sales tax over the 3 years. if you pay cash and then 3 years later sell the car, you lose 2k.

even if you lease and then buyout, it can still possibly be good. on my gs350 and ls460l, at the time with all the deals, if i leased the car for 3 years and then buyout, the overall payment is less than if i financed the car for 3 years.

bnizzle87

It depends on the prospective buyer's situation. Is he or she keeping the car for a substantial period of time? Is he or she planning on driving more than the lease's miles per year? For my situation, I bought my car because I knew I wanted to keep the car for a long time. Also, I had shopped around for loan rates, and I was able to find one from my credit union that Lexus Financial ultimately ended up matching. I know a few friends who have leased their vehicles and then bought them outright when their lease was up, as well as those who leased knowing they wanted something new after three to five years. It really depends on the person.

Best of luck for anyone who is considering either path!

abpk20

In this economy, I would finance because you can get a low rate, and if you choose the sell the car at a later time you can do that as well. Lexus cars keep their value pretty well. But in the end it is up to you and your preference on how often you like to change cars and etc

MisterSkiz

iTrader: (2)

Instead of leasing, why dont you buy a used one for cheaper? lol @ leasing.