Leasing a new FR-S

[Jokester]

Originally Posted by fly2low

What is your sales tax and registration? Do you know your money factor and residual as well? Last time i checked there was no support from toyota financial so mf is toyota standard at 0.0018 or 4.32% fot tier 1+. Normally purchasing could be cheaper for a car under 30k. At least you are not ladden with extra acquisition fees.

The payment I listed is with tax, registration, and fees included in the payment.

The only other money I am laying out is for the BeSpoke radio, cargo mat, and wheel locks. So another $900 out of pocket.

Not a bad deal I reckon!

[KGFRS86]

Originally Posted by raul

So your car can go 480 miles in one tank? Lol no, it's like half a tank. Especially with how some of the owners (myself included) drive the car.

I get like 150 miles per tank. I'm naughty I guess? Somehow...but I'm in rush hour traffic all the time so that makes no sense......this gas tank is small!

[Pbrown]

[QUOTE=dtrop;672402]Why do you want to lease?


Reason/s for leasing

1st run of the car, if it turns out to have too many issues just hand it back after 4 years

Lower payments

Always want something new in 4 years

Most importantly for me, if toyota comes out with a turbo in 2 years can hand back current car minus all the mods I am doing and get the turbo version with factory warranties in place from the start.

[strat61caster]

Originally Posted by Pbrown

Always want something new in 4 years

This is the only thing that makes leasing make sense to me, especially with a car like this.

[fly2low]

Originally Posted by Jokester

The payment I listed is with tax, registration, and fees included in the payment.

The only other money I am laying out is for the BeSpoke radio, cargo mat, and wheel locks. So another $900 out of pocket.

Not a bad deal I reckon!

I am sure you and some people know that there is this really rule of thumb to determine if leasing is a good idea or not. This is not to calculate the lease payment itself, but to determine if it is a good deal lease or not.

-First rule of leasing is try not to get any money down. If the car is totaled, you will never get it back. So, first let's do a coarse distribution on the $1999 down to spread evenly to 36 month: $55.53. Then add it to the monthly payment: $344.53 (probably a couple pennies more if you are insisting on adding the interests)

- Take the tax out, keep the fees in. For example, if your tax rate is 8%, then your payment with fees in is $319

- Divide that number with MSRP then multiply it by 100: 319/25050*100 = 1.27

-It is cheaper to lease a car than to buy it if the number is < 1.27 assuming that you pay use tax for lease and full sales tax for purchase. Keep in mind that this is for standard 12000 miles. From 12 to 15 k miles the residual drops 2%, from 15 to 20 is another 5%


I personally think that anything under <115 is a good deal and will only consider to lease a car in that range. <105 is a smoking deal, <100 is rare and no brainer.


For your deal, it is comparing apple to orange as you have 20k miles allowance. Without knowing the actual MF, residual, tax rate, and registration and dealer fees, it is almost impossible to calculate it precisely.


BTW, do you write it off? Usually people who do 20k miles lease does it for a business tax write off, then the residual is so low at the end of the lease that the company can sell the car to the owner and they can make some extra $ by selling it in the market for a higher price.

[Jokester]

Originally Posted by fly2low

I am sure you and some people know that there is this really rule of thumb to determine if leasing is a good idea or not. This is not to calculate the lease payment itself, but to determine if it is a good deal lease or not.

-First rule of leasing is try not to get any money down. If the car is totaled, you will never get it back. So, first let's do a coarse distribution on the $1999 down to spread evenly to 36 month: $55.53. Then add it to the monthly payment: $344.53 (probably a couple pennies more if you are insisting on adding the interests)

- Take the tax out, keep the fees in. For example, if your tax rate is 8%, then your payment with fees in is $319

- Divide that number with MSRP then multiply it by 100: 319/25050*100 = 1.27

-It is cheaper to lease a car than to buy it if the number is < 1.27 assuming that you pay use tax for lease and full sales tax for purchase. Keep in mind that this is for standard 12000 miles. From 12 to 15 k miles the residual drops 2%, from 15 to 20 is another 5%


I personally think that anything under <115 is a good deal and will only consider to lease a car in that range. <105 is a smoking deal, <100 is rare and no brainer.


For your deal, it is comparing apple to orange as you have 20k miles allowance. Without knowing the actual MF, residual, tax rate, and registration and dealer fees, it is almost impossible to calculate it precisely.


BTW, do you write it off? Usually people who do 20k miles lease does it for a business tax write off, then the residual is so low at the end of the lease that the company can sell the car to the owner and they can make some extra $ by selling it in the market for a higher price.

Wow that is alot to process. I do not keep any cars I own or lease for more than 36 months. I do not add performance accessories either due to the fact that they do not bring back any money in the end and it is pointless to me. I only buy snow tires and wheels for my sports cars, and I can at least recoop some of the money when
I get rid of the car if I get a totally differnt vehicel otherwise I keep them.

So, I look at it like this lets say I lease the car for 36 months with the $2000 down and my payment after my Scion radio, mat, and wheel locks are put in the payment with the fees. Payment is around $310 per month. So even at $310 x 36 months = $11,160 + $2000 down = $13,160 (total loss over 36 months).

To get an almost equal payment financing over 36 months I would need to put down like $16,500 cash and even if my payment were $335 at this point: $335 x 36 months = $12,060 (payments after 36 months) + $16,500 (money down) = $28,560 (total invested) But, after 3 years the car will most likely be worth about lets say $12,000. So, $16,500 (orignal down payment) - $12,000 (value of car after 36 months) = $4500 + $12,060 (payments over 36 months) = $16,560 (total loss over 36 months).

So, to me leasing cost me less in the end of it with the least out of my pocket in the start and end of the 36 months. Heck, I think even if I leased with $0 down and added it to my payment it woudl still come out to less in reality.

[FRomar-S]

I guess my question is how are you leasing a car with 20k miles a year and still getting under 300 a month?

Usually anything over 10-12k a year, and your monthly lease price rises a good amount. I know people can negotiate for more miles, I can see 15k, but 20k miles for 289$ a month with a 1999 deposit seems way to good to be true.

Is this a standard 3 year lease?

[fly2low]

If you are keeping the car only for 3-4 years, lease is the way to go.

However, often manufacturers don't offer support for lease, making it not cheap.

Some manufacturers want to move a certain model and you can get a smoking deal with ultra low money factor (interest rate and jacked up residual). For members who want to learn about the intricate dance of leasing, real car tips dot com is a good start.

Talking about smoking deals, in my neck of the woods, with a similar payment but with 12k miles per year, I could pick up a 2013 Mitsubishi Evo X GSR or a 2013 Infiniti G37 or a VW CC or a Volvo S60 T5 (just on the top of my head).

Two bottom lines about leasing though: 1) one MUST know your numbers (market selling price, money factor, residual, your credit score); 2) one must love to hassle with dealers.

[rhoyle]

Sounds like you are fixated on the monthly payment to the point that you're missing the financial part of this. Sure you can lease for 36 months for much less out of pocket than if you bought the car outright in the same time. But at the end of that, you have nothing. If you bought the car you'd own the car.

Also, keep in mind that the money you're talking about putting down is about six months of payments. If it were me and I were dead set on leasing, Id do it with zero down as previously mentioned.

Bottom line is that you need to obtain and understand the details of the deal. What is the purchase price? What is the money factor? What interest rate could you qualify for on a purchase and how does it compare to the money factor being offered? Without those details it's hard to tell what's really going on!

[fly2low]

Originally Posted by rhoyle

Sounds like you are fixated on the monthly payment to the point that you're missing the financial part of this. Sure you can lease for 36 months for much less out of pocket than if you bought the car outright in the same time. But at the end of that, you have nothing. If you bought the car you'd own the car.

Also, keep in mind that the money you're talking about putting down is about six months of payments. If it were me and I were dead set on leasing, Id do it with zero down as previously mentioned.

Bottom line is that you need to obtain and understand the details of the deal. What is the purchase price? What is the money factor? What interest rate could you qualify for on a purchase and how does it compare to the money factor being offered? Without those details it's hard to tell what's really going on!

It is typical four-square dealer strategy. They pick on customer's fixation http://www.realcartips.com/cardealer...e-method.shtml

Some cars just don't make sense to purchase right off, though.

I'll give you an example: my Touareg.

After you get the selling price that you want, the question is: how should you purchase?

At that time, VW had 0% interest for 60 months. So, this immediately made cash purchase obsolete. However, they also had a very aggressive money factor at 0.00001 equivalent to 0.024% (yes, there is a zero in the front of 2). I'd be crazy if I had purchased this car right off with either financing or cash because I'd have been down on the full sales purchase immediately, money I would have never recovered. I was better of leasing it first for 3 years even it meant I had to pay extra $595 for acquisition fees (plus some negligible dimes on the trivial interest rate). If I really like the car, I can always purchase it at the residual value at the end of the lease. If I don't like it and carmax gives me a higher price, I'll just sell it to carmax. If carmax offers me a lower price, I'll just return the car to VW.

[Raven86]

I leased mine for 3 years. First year model so i figured if there's any problems at least I'm not stuck with it. Plus I'm sure I'll want something new in a few years. Maybe a turbo version or a BRZ STI.

[Jokester]

I may just lease the car with no money out of pocket except the accessories which is $900. It will raise the payment but who cares, hell after reading the suggestions I may put absolutely nothing down and walk away with a sub $400 a month payment. Thanks guys.

[ruskymx]

Originally Posted by chenshuo

Leasing means you can't change this you can't change that... you sure you won't want to change anything on this car down the road?

FALSE! You can change whatever you want, when you want. The only caveat is that if the vehicle is returned to the leasing company, in this case Toyota Financial Services, they will want the vehicle back all original.

I am leasing my FR-S and I have done some mods like SRT headerback exhaust, Visconti Tune, Perrin Crank Pulley and minor cosmetics like Beat Sonic Shark Fin, Grimm Speed Oil cap & battery tie down. If I do not buy the lease out, I have all the parts in my garage to return it to OEM. It's not like they send inspectors out to check on the car or anything like that. Now, if you get behind on payments and they come to repo the car, that's a different story. Should you really be spending money on mods then if you couldn't keep up with the payments?

I agree with the person that said to put as little down as possible. I put $1000 down to cover my first payment and tags and the rest (approx $450-500) just lowered the payment a little.

I actually made a thread here about the advantages/disadvantages of leasing. It was months ago so it's buried somewhere. I also have it on my blog that I made for work (salesman at a Toyota dealer). It can be found here: http://jeffatfreedom.blogspot.com/p/leasing-101.html

:happy0180:

Ruskymx

[Fnbeast86]

I'm leasing and pay around 350 car had only 7 miles on it too? That's not bad payment at all!!