Leasing A Lexus?

Lexdiamonds · February 20, 2004

I am curious how some of you guys who lease lexus save money for the next lease every 3 years. I would love to have a brand new GS every 3 to 4 years but the thing that worries me is coming up with that 3 to 4 thousand dollar down payment for the lease every 3 to 4 years. You guys who lease, what is your method of saving. Do you save money for the the new one in the final year of the lease , do you have a seperate envelope in your house that you put the money in. I am just curious? Because i don't really make a lot of money, I am like the average guy. Any advice or methods that you use would be great. Thanks guys and looking forward to hearing your responses.

SW03ES · February 20, 2004

You don't want to put any money down on a lease, no reason to. For one thing if you total the car you will loose your down payment because the insurance pays the leasing company not you. If you have a sizeable amount of money and you want to lower yuour payments put it in a savings account and make your payments out of it until its gone, much smarter than putting a down payment.

Plus with a purchase you're always paying towards a goal, so making double payments and putting money down is wise, but leasing is renting, why give these people thousands of dollars of your money? Keep in mind the average lease payment will drip $15 for every $1000 you put down. In 36 months thats only $540 saved so you just gave them $460 of your money for nothing.

Even with no down payment the lease will be less. I was quoted $550 a month on a GS300 with $0 down. My ES lease is about $525 with $0 down.

This is why I always caution people who lease a car they couldn't otherwise afford and put a bunch of money down. Leasing can be good, it can save you a lot of money and put you in a better position for claiming as a business expense etc, and it takes a lot of the hassles out of driving a new car every 3 years but its not for people who are trying to drive something they can't afford.

I could have liquidated some assets and put a lot of money down on an LS430 and had a lease payment a couple hundred bucks more than mine, I could have afforded that payment. I want an LS430, but I can't afford one yet. Next time.