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Now we are leasing a 2012 Mercedes E350 Diesel for $434 including tax and put nothing down (did pay first month + registration up front) with 15,000 miles/year. Of course we did a lot of negotiating and kneww all the ins andouts but financing the same car would of been close to $1,000/month....
Wow, $434/month (even with tax extra) with $0 down is an amazing deal!!!
For how long did you lease it for?
I'm not sure what you mean. Pre-paying for the projected mile overage at 5-8k year? Try for a 20,000 mile/year lease? Through various local Toyota dealers, I don't see reference or mention of mileage allowance that high.
In all this, I'm just trying to see whether by committing to the move that we are absolutely eliminating leasing from the equation for the next car, if there's a next car in the foreseeable future.
Not pre-paying for the mileage, getting an actual 20,000 mile per year lease so that the depreciation schedule is based on that. I think Toyota Financial only advertises 12,000 and 15,000 mile options, but they most likely offer higher options and that is just what they advertise. I know for an absolute fact that third party leasing companies and banks are more than willing to offer actual 20,000 mile or more leases.
Call the finance guy at the dealership and ask if Toyota will do a 20,000 mile per year lease, I'd be shocked if they didn't as a quick google search turned up dozens of dealers offering 20,000 mile lease options on Toyota's.
what are the main disadvantages of leasing? from what i see, it looks like the primary issue is that there is a financing fee for leasing that you dont have when you buy. i have bought my last couple of cars and i do not enjoy owning my cars. i want to drive it a few years, do no maintenance beyond oil changes and give it back. id probably need one of those 20k mile leases.
Now we are leasing a 2012 Mercedes E350 Diesel for $434 including tax and put nothing down (did pay first month + registration up front) with 15,000 miles/year. Of course we did a lot of negotiating and kneww all the ins andouts but financing the same car would of been close to $1,000/month.
Nice deal. Is that for 24 months? 30? or 3yr? What % of MSRP did you get? and was it a demo car or executive/promo car? I know those "used" vehicles with low mileage can be had $5~8k less than brand new models.
Your deal sound even better than the one posted on RideWithG last summer. His was a E350 BlueTec Prem 1 pkg with an MSRP of $57,575 on 24mo/15k at $479+tax (no cap reduction). Did you take advantage of the Multiple Security Deposit offer? The other guy maxed MSD's out at $5,000 and the monthly dropped to $416+tax. Wow... you can't even get a 3-series or G37 at that price without cap reduction.
Thanks. It was for 24 months and it was brand new, not a demo or promo car. Has the Prem 1 pkg and spoiler package plus. I believe the MSRP was $57,575 and we got it for $48,650 including $3,000 in Conquest cash. We did max out the MSD's at $5,000.
You know...I just checked and we are actually paying $454 inc. tax ($416 w/o tax) not $434 like I said earlier. I may be the person you are referring to on RideWithG as I did post the deal on there last summer. Small world.
The people at the dealer flipped when they saw the deal...we started at $700 and brought it down, I left the MSD thing last and they had never even heard of it, the finance lady said no one there every had in their 31 years combined. Love the car, may end up buying it. The residual is $42,605, I'll see what the market value is on it next May and go from there though I'm looking on AutoTrader now and there are 2 year old Certified Pre-Owned BlueTecs for $39,998 with better options and non-certified for $39,995, plus I'm sure those prices are negotiable.
And what about negotiating mileage allowance's (12,15,20k) just to reduce the Residual Value for possible-to-likely purchase at lease end? If I can proportionally get the RV to srop more at 20k than 15k miles, thatd be nice, no? Or does $n for x miles allowed translate to the same n off the Residual Value. I don't imagine depreciation is perfectly linear...so it seems like a possible way to A) Be paying less interest by financing the RV vs the whole price of a new car and B) Finance a smaller amount (by reducing the RV this way).
what are the main disadvantages of leasing? from what i see, it looks like the primary issue is that there is a financing fee for leasing that you dont have when you buy. i have bought my last couple of cars and i do not enjoy owning my cars. i want to drive it a few years, do no maintenance beyond oil changes and give it back. id probably need one of those 20k mile leases.
The "finance fee" in leasing is basically the equivalent of the APR when buying with financing, so that's a wash. If leasing is done right there are few disadvantages to it. Probably the biggest negatives are going over mileage, needing to pay to repair minor defects and damage to the car at least termination and the fact that you will never actually own the car, meaning you will always be making payments. As long as you understand your wants and needs correctly and structure the right lease for your situation, it's an advantage to lease. Where it becomes less advantageous is if you are the kind of person inclined to hold onto your vehicles for 5-7 years, then buying works out better over the long term. However, if you are a "new car every 3 years" kind of person, then leasing is far better then buying.
The 20k miles a year area is where it can start to get fuzzy though and comes down to the car you are buying. The OP is talking about Prius' which have very low depreciation so the lease payments are relatively low even on a 20k mile lease. However, take your standard midsize family sedan which depreciates far more rapidly over the first 3 years and a 20k mile lease may actually end up costing more per month then buying. You may still choose to lease if you will absolutely not keep the car for more then 3 years, but the economics slant more towards buying in that situation unless we are talking about certain vehicles with very low depreciation.
Quote:
Originally Posted by krayzbone227
Buying a lease at term end vs buying the vehicle in the first place?
I'm personally against that. If the goal is to own the car and keep it for 5+ years then go in with the intention of buying it upfront. You will ultimately pay less in interest by just buying it upfront. Buying out the lease is always an option if you decide to keep the car, but I wouldn't generally recommend doing the lease with intent to buy route.
Quote:
Originally Posted by krayzbone227
And what about negotiating mileage allowance's (12,15,20k) just to reduce the Residual Value for possible-to-likely purchase at lease end? If I can proportionally get the RV to srop more at 20k than 15k miles, thatd be nice, no? Or does $n for x miles allowed translate to the same n off the Residual Value. I don't imagine depreciation is perfectly linear...so it seems like a possible way to A) Be paying less interest by financing the RV vs the whole price of a new car and B) Finance a smaller amount (by reducing the RV this way).
My advice is still the same as above, if you intend to buy, buy now. If you do go into the lease, do so with the intention of structuring the lease correctly to your situation. If that means a 20k lease then that's what it is. Yes, you would net a lower RV which would be better for a future purchase, but it's not about that. The point of a lease is to only pay for the portion of the car you actually use. If you will only use 12k miles a year, then taking a 20k mile a year lease just to generate a lower RV and build equity is basically paying interest on your own money. Likewise knowing you will drive 20k miles a year and purposefully only taking a 12k miles a year lease just to keep the RV higher and the payments low is just plain stupid and you will end up in a negative equity situation.
The "finance fee" in leasing is basically the equivalent of the APR when buying with financing, so that's a wash.
i think i was wrong by using the term finance fee or maybe the fee im talking about doesnt really exist. isnt there some kind of lease origination fee (maybe $700 or so) that comes with leasing that you dont have when financing a purchase?
as far as apr goes, there are 0 apr deals and thats definitely what id go for (if i buy again). im not sure if you can get 0apr on a lease. im more concerned about the best deal than which car ill buy. ill take any small suv, whichever is the cheapest works for me (must have awd and automatic transmission).
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And general cost comparison of
