Any input would be appreciated on this topic.

 

i can only give what MY personal reasons for thinking of the pros/cons....

PROS:
for work-related 1099tax people, you can use it as a tax write-off.

since i get bored of a car after a year or two...... you get to change cars every few years and with a minimum "down payment/drive-off" money.

i like new cars..... theyre new.

most have the option to let you buy the car if you do decide to keep it instead of returning it back to the dealer.


CONS:

i used to drive A LOT. like 3k miles a month a lot.... limited annual mileage. (but i dont anymore )

all modification to it, should be done knowing that you're gonna have to take it all off again when you return it.

 

I was looking at an LS460.

0 down payment, 2 years lease.

2,820 a month.X24= 63,386.

If i wanted to keep the car, would I pay the difference? Or for what the car is worth when car is returned?

72,575 for for car OTD.

 

$2800/month????? wtf

 

slight change in #s

2682/ month for 2years= 64,368.

 

That's a bad deal if you don't buy the car in the end. The car does not depreciate that much in 2 years!

Obviously, the pros of leasing are 1) you can lease "more car" than if you're buying while making the same payments and 2) you eliminate the hassle of having to sell it later. You just drop it off and you're done.

Cons: 1) If you drive more than 1K/month, it may not be worth it since there's usually a 10k-12k/year limit and 2) If you always lease, you'll always have payments, end of story.

Good luck.

 

Pros and cons applies to different things for different manufacturers. Some manufactures offer better leasing terms than others. Money factor/residual is really important in these discussions.

 

Thanks for the input.

I've never leased before, but lets say I end up paying around65k over 2 years, and decide to buy.

Do I just pay 7k more to buy the car from dealership?

 

Depends on what the "residual value" is. Residual is what you and the dealer agree to be the value of the car at the end of the lease.

BTW, always, always negotiate the price of the car first, even if you're leasing. Don't play the "how much can you spend a month" game at the dealer.

Without knowing the details of your deal, it seems a little high. I mean, that's more than some people's mortgage payments.

 

That's a horrible lease deal.

The lease is based on the price of the car - residual value of the car at lease end / lease term.

Then you take that value and add in the "money factor", which is basically interest.

If you want to buy the car at the end of the lease, you have to pay the residual value.

There is no way that an LS460 loses that much money in 2 years.

You can lease a used lambo or ferrari, which is worth twice as much as that new lexus, for the same rate (2500+/mo).

You must be mad balling if you really can consider a $2820/mo on a car. A regular car at that.