Leasing Question On A 2015 Gs 350

panderis250 · August 24, 2015

Hi All;

I never leased a car before so I leased a GS 350 at my Central Florida Lexus Dealer. I traded my 2012 IS 250 with 27,000 on it and I owed $19,500. I got a 2015 base for $475.00 a month with only $475 due at signing. I got the Deep sea mica with flaxen interior.

Here is the what is on the paperwork they gave me;
Cap Cost Reduction 3392.02
1st monthly payment 475.00
Reg. Fees 205.19
Tax on cap reduction 217.61
upfront tax on fees 4.32
Total due at signing 4295.04

Gross Cap cost 47,105.06
Adjusted cap cost 44,412.14
Residual Value 30,374.95
Depreciation/amortized 14,037.19
rent charge 2,019.24
total based on monthly payments 16,056.43
36 payments at 446.01 with 28.99 taxes, total 475 a month
This was a 36 month lease with 10,000 miles a year.
It was a base GS with navigation and I had a 670 credit score.
They claimed they had huge rebates that allowed me to only need the 475 for first payment. Good or bad for my 1st lease. I was paying 345.77 on my IS for 72 months at 3.9% and made 11 payments. When I traded my IS they paid it off and I only received like $47.00 in equity.

Thanks all.

pj8708 · August 25, 2015

Hi Paul and welcome.

I'm not sure if your looking for feed back on if you got a great deal or not, or just sharing the process of making the deal.

Over the years I have leased several times. The leasing industry relies on customers who want the lowest payment possible or just want to drive a nice care while reducing the amount of personal capital they have to lay out. If leased as or under a business, there can be helpful tax reductions.

Unfortunately, most lease buyers concentrate on the amount of cash do upfront and the monthly payment. Leasing a car can be close to the 5th ring of the "Inferno". Even though you think your only "renting a car", it also has many of the same pitfalls that borrowing to buy a car does. Many people don't know that they should first work on the bottom line car price the lease cost will be based on. The sales person may try to tell you that lease cars are sold at a fixed price. No exceptions. That is not true. The dealer would probably lease one of their computers if it would make them make their numbers for the month.

Wither negotiating a lease or a purchase, always work on lowering the actual net cost of the car.

Only concentrating on the monthly payment may meet your budget, but when you turn the car in you will have no trade-in value on which to get your next car.

Paul