Leasing Entry Luxury Sedan

[AznAnarchy99]

I'm looking to sell my 2011 Civic LX coupe and I am looking to lease maybe a MB C250, BMW 320i, Lexus IS250, Audi A4, or an Inifiniti Q50 depending on their lease special and test drive. (Leaning towards the Lexus or BMW now).

I've never leased before and the only time I've had to deal with a dealer before was with my Civic. Although I had a pretty decent deal I was left a bit unsatisfied with the whole process (negotiation, dealing, etc). What are some things that I can do during the lease negotiation process to make sure I get the best deal possible. I'm looking to down/ride off at little as possible with a monthly payment around $350.

I've seen around that there are a lot of recent graduate promotions for usually about $1000. Would it be possible for them to apply that to the ride off fees?

Also with the summer coming up and the new MY15s coming out, would it be best to wait until then or would the best deals on the MY14s going to be happening now?

 

[rh71]

Aren't new model years still coming out around august/september for the majority of manufacturers? Old models will be cheaper then.

 

[Imported]

Once you pick the car, check out their respective forums to see what people are paying. Negotiate the cost of the car as you would if purchasing. Use whatever you can to get that price down (TrueCar, Costco and USAA buying programs, etc.). Have good credit and get the best money factor. Residuals you can't control. $0 down is possible and you can sometimes roll the initial fees into the lease. Stack all the promos you can too.

 

[Sidekicknichola]

FWIW... I would highly suggest the IS350 over the 250, there is a WORLD of difference between the two.

If you're set on the IS250, do NOT drive the IS350 because you won't want to go back to the IS250.

... I bought an IS250 awd years back, loved the car in every way. One day got a IS350 as a loaner while some work was being done and within a month sold the IS250 and had an IS350, its absurd how much more fun it is to drive.

 

[AznAnarchy99]

Once you pick the car, check out their respective forums to see what people are paying. Negotiate the cost of the car as you would if purchasing. Use whatever you can to get that price down (TrueCar, Costco and USAA buying programs, etc.). Have good credit and get the best money factor. Residuals you can't control. $0 down is possible and you can sometimes roll the initial fees into the lease. Stack all the promos you can too.

I do have a CostCo exec membership. How does that program work? I'm looking through their site now. Is it just basically hand selected dealerships?

 

[JulesMaximus]

FWIW... I would highly suggest the IS350 over the 250, there is a WORLD of difference between the two.

If you're set on the IS250, do NOT drive the IS350 because you won't want to go back to the IS250.

... I bought an IS250 awd years back, loved the car in every way. One day got a IS350 as a loaner while some work was being done and within a month sold the IS250 and had an IS350, its absurd how much more fun it is to drive.

306hp > 204hp

 

[Imported]

I do have a CostCo exec membership. How does that program work? I'm looking through their site now. Is it just basically hand selected dealerships?

They work with certain dealers so you'd have to check. I've only ever used them for an initial price to start at. I think prices are set at a certain amount over invoice but I'm sure you can negotiate further. I know there was mention that they were $500 or $1000 over invoice on the BMW I was looking at.

Test drive your cars, find the one you want and spec it out. Then reach out to the internet sales people. Contact all dealerships in your area. E-mail back and forth trying to get the price down. For example, when I was looking at an IS350, one dealer wouldn't go below $45k over e-mail, another initiated at just under $43k. Took that price to the other dealer and they said they'd match.

 

[mmntech]

My problem with leasing vs financing is with leasing, you're never going to own the car in the end. I'd look at used models myself.

Also keep in mind that luxury cars require luxury maintenance. Most require premium gasoline and oil changes will be more expensive.

Out of those, I think you'll probably liking the Lexus or Infinity the best. Though I'm allergic to German makes. From personal experience, Lexus are pretty much bulletproof. My mom is still driving her 1997 ES300 and the worst repair it's ever needed was a new catalytic converter just recently. After that many years, the car owes you nothing.

 

[BlitzPuppet]

Leasing a car is an awful thing to do when it comes to money. Do you owe anything on it? Drive it until the wheels fall off, then look into replacing it. Hondas are very reliable after all.

If you want to be smart, buy a car...don't lease it.
If you want to be very smart buy a car and keep it for 8+ years.

 

[AznAnarchy99]

My problem with leasing vs financing is with leasing, you're never going to own the car in the end. I'd look at used models myself.

Also keep in mind that luxury cars require luxury maintenance. Most require premium gasoline and oil changes will be more expensive.

Yeah I know that I won't be owning it in the end but with the drop off in value of the luxury cars once the design changes and the long term maintenance, leasing luxury cars sounds better IMO since you don't worry about those costs within the first 2-3 years. Also by the end of the lease terms I project to be making more money by that time to upgrade.

 

[Midwayman]

First negotiate the price of the car before you talk lease or purchase. Otherwise they'll work off MSRP. Know what money factor you qualify for (interest rate) devide the rate by 2400 to get the MF. Residual value will be set based on term and mileage. Fees, downpayment etc can be rolled into payments usually. Worst thing you can do is go in and tell them you want to lease and have X a month to spend. They'll get you to exactly X and add profit in to get you there.

 

[otho11]

Lease deals tend to favor BMW. You can leave a sizeable deposit to reduce the money factor if you have the funds. If you have any interest in picking it up overseas even better.

 

[T2urtle]

I always want to go down the leasing route. But i get scared when its time to buy so i just get a used CPO, thats most likely a lease trade-in car.

I would consider leasing some cars that i'm currently interested in mainly the german ones because their cars are hit or miss in terms or reliability, i know they are going up but still,

 

[iamwiz82]

Lease deals tend to favor BMW. You can leave a sizeable deposit to reduce the money factor if you have the funds. If you have any interest in picking it up overseas even better.

To expand, i's a refundable deposit that you get back at lease turn in. Look up 'Multiple Security Deposit'

 

[Virge_]

Also keep in mind that luxury cars require luxury maintenance. Most require premium gasoline and oil changes will be more expensive.

BMW has $0 maintenance under warranty, period. No oil change cost, no brake replacement cost.. I don't even bother to refill my windshield wiper fluid myself anymore, I just drive to the dealership for a car wash (hand-washed, also free and I do it twice weekly) and let them know my fluid is low while I grab a coffee and BS with a service manager.

I own my daily driver. I lease my weekend roadtrip warrior - always get a new one every three years, quite satisfied "renting" a new sports car and having the payment for as long as I can foresee into the future. Helps knowing I can roadtrip the hell out of a car I don't need to worry about the miles depreciating too badly.

 

[Shlong]

My problem with leasing vs financing is with leasing, you're never going to own the car in the end. I'd look at used models myself.

Also keep in mind that luxury cars require luxury maintenance. Most require premium gasoline and oil changes will be more expensive.

Out of those, I think you'll probably liking the Lexus or Infinity the best. Though I'm allergic to German makes. From personal experience, Lexus are pretty much bulletproof. My mom is still driving her 1997 ES300 and the worst repair it's ever needed was a new catalytic converter just recently. After that many years, the car owes you nothing.

You also have to factor the depreciation costs of ownership. My friend's 2013 BMW M5 he bought for around $100k (has around 12k miles now) has depreciated a lot. Looking at various dealerships for a used one with similar configuration, it can be now found for $75k. It also depends on the car though.

As for the OP's question, I would go with the Infiniti Q50. I had the G37 for 5 years and it's been a very good car (not one problem). I also like the design of the Q50 the best out of your choices.

 

[AznAnarchy99]

BMW has $0 maintenance under warranty, period. No oil change cost, no brake replacement cost.. I don't even bother to refill my windshield wiper fluid myself anymore, I just drive to the dealership for a car wash (hand-washed, also free and I do it twice weekly) and let them know my fluid is low while I grab a coffee and BS with a service manager.

I own my daily driver. I lease my weekend roadtrip warrior - always get a new one every three years, quite satisfied "renting" a new sports car and having the payment for as long as I can foresee into the future. Helps knowing I can roadtrip the hell out of a car I don't need to worry about the miles depreciating too badly.

Your maintenance costs:
Engine Oil Services: $0
Inspection Services: $0
Wiper Blade Inserts: $0
Brake Pads: $0
Brake Discs: $0
Engine Drive Belts: $0
Brake Fluid Service: $0

Wow that's very nice. Might make me lean towards the BMW. I don't know how often I am going to need to change the brakes in 3 years though.

 

[otho11]

Keep in mind you may need to replace the tires prior to lease end depending on how much you drive. It ran me ~ $1200 for runflats.

 

[MongGrel]

I'd never do a lease myself.

But that's just me maybe.

Every time I've ever said that the person has come back and said "You were right", though.

Food for thought maybe.

 

[mmntech]

BMW has $0 maintenance under warranty, period. No oil change cost, no brake replacement cost.. I don't even bother to refill my windshield wiper fluid myself anymore, I just drive to the dealership for a car wash (hand-washed, also free and I do it twice weekly) and let them know my fluid is low while I grab a coffee and BS with a service manager.

Still got to pay for 91 octane fuel though. We're paying $1.50/L here for it, or $5.76/gal. Adds up if you do a lot of driving. Especially since a lot of those cars have 70L tanks.

You also have to factor the depreciation costs of ownership. My friend's 2013 BMW M5 he bought for around $100k (has around 12k miles now) has depreciated a lot. Looking at various dealerships for a used one with similar configuration, it can be now found for $75k. It also depends on the car though..

That's why you never buy new. Off lease cars are a good deal since they're usually in peak condition and received all the maintenance. But you're not paying for the 30% depreciation the second you drive it off the lot. If you own, you don't have the same restrictions as you would on a lease. ie no mileage limits, paying to repair minor damage, etc.

 

[Sidekicknichola]

that's why you never buy new. Off lease cars are a good deal since they're usually in peak condition and received all the maintenance.

This is generally what I do with cars.... try and get something 20-40k miles that looks well cared for, then drive it to 80-90k and try and sell before it hits 100k and loses another chunk.

0 miles to 10k loses a lot of money
90k to 100k loses a lot as well.

...if you're not the one owning it for either of those, its a good thing. With that said, if you plan to drive it to +180k, then buying new isn't so bad.... but that doesn't seem to be your plan.

 

[Insomniator]

Some people have X amount of money set aside for a car every month. Leasing gets you free maintenence, various other perks, and a BRAND NEW car every 3-5 years. If you can afford it and don't drive so many miles, leasing is perfectly fine.

Owning a car has its upsides too of course, but its not like people should just blindly buy used cars because you can 'always sell it later'.

 

[dguy6789]

I'd never do a lease myself.

But that's just me maybe.

Every time I've ever said that the person has come back and said "You were right", though.

Food for thought maybe.

Same here. I'm in the never lease camp.

 

[smackababy]

I think leasing is a better option if you're more inclined to want a newer card every so often. You get maintenance covered most of the time and you get to upgrade in a few years. Sure, the miles per year can be a limitation, but for some of us it is a non issue. My commute is literally 3 miles round trip.

There are upsides to buying as well as leasing (and you generally need very good credit to get those good leasing options).

Also, I tend to avoid buying off lease cars, but that is only because I am pretty weary of just how much people take care of a car they are going to get rid of in 36 months. "Who cares if I drive this hard, because I'll be rid of it before it breaks" type of mentality scares me a bit.

 

[Maximus96]

Also, I tend to avoid buying off lease cars, but that is only because I am pretty weary of just how much people take care of a car they are going to get rid of in 36 months. "Who cares if I drive this hard, because I'll be rid of it before it breaks" type of mentality scares me a bit.

Exactly...why would you need to baby a lease/rental?