Considering that LCs have such a great resale value, you would think that attractive lease offers would be available left and right due to a high residual. I think the same would be true for a G550, yet I never see any advertised. Just wondering if anyone here is leasing theirs. I am curious about 36 month leases but 48 and 60 would be interesting as well
Is anyone here leasing their LC
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I've only seen the LX advertised as a lease. It is always $1100/month for 36 months. 5k down and 10k miles.
My father has a LX570 leased through his medical practice. 0 downpayment, $1280 a month, 36 months.
Find a good independent leasing company and go from there. E.g., when I had cars for business use, I used D&M Leasing in the DFW area. My lease was structured with unlimited yearly mileage, which normally meant 40-50K. I'd typically get a new vehicle every 2.5-3 years.
Imo, leasing works if you are using the car for business. I claimed 20% of the miles for non-business use and declared them on my tax returns. The rest I wrote off for business use and had the notes to prove it.
If you're not using the car for business, you can lease instead of buy and end up driving something you might not be able to purchase. When the lease is done and you return the car, it will be gone over with a very fine toothed comb. Not to mention you'll have no equity.
Steve
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Leasing has 2 main benefits: 1. In the states with sales tax, one only pays tax on portion of the depreciation one uses. Can be a big difference. For example, I leased my LX 570 with assumed sale price of $75k. A tax in CA would have been roughly $7.5k if i had purchased the vehicle and is only $4k if i turn it in at the end of the lease (residual value of $35k after 4 years per contract). 2. If after 4 years, vehicle is worth less than $35k, i can walk away and not take any additional loss due to deterioration in market conditions. If it is worth more, i pocket the difference by selling the vehicle. These are 2 huge benefits.
Negative on the lease is that one always finances that residual peace for the duration of the lease i.e. i always pay interest on $35k of residual value whereas with purchase, the paid depreciation on 5yr loan would have taken me down way past that point so effectively i would have lower financing expense.....
Negative on the lease is that one always finances that residual peace for the duration of the lease i.e. i always pay interest on $35k of residual value whereas with purchase, the paid depreciation on 5yr loan would have taken me down way past that point so effectively i would have lower financing expense.....
instead of leasing a LC why would you not just buy a 4runner for the same price and be done with it?
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I was just curious about a lease as a way to avoid a hassle of selling it down the road, etc. It not due to inability to make a higher payment associated with owning it. I just have no experience selling expensive used cars privately and I assume that the dealer will usually try to low ball me. I will probably buy since I ecpect to put over 20,000 mi/year on it. Ownership is also tempting since it will allow me to do minor mods, and keep it someday as a second car when it gets older. Who knows, maybe someday even turn it into an expedition vehicle
2fpower
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The lease numbers posted above weren't impressive enough over purchasing with monthly installment. I don't know what interest rates on car loans are at the moment but I got 2% back in February. There are so many advantages to ownership of a 200 series, including the high resale value that unless you can benefit from the business write off I don't think a lease makes sense -- unless of course Toyota or Lexus wants to run a lease special.
I hope you all know that for business you can depreciate a purchased vehicle over 7 years. (I think things like computers are 5 years )
This is a good size deduction in the first few years plus expenses, tires, etc, and any loan interest, all by % of business use of course.
Then for those who plan to sell it in a few years, you'll have to report the recaptured loss but there is still in effect the section 179 accelerated depreciation bonus which only makes sense if you won't keep it long and even more so if it's bought in a bigger than usual income year. Depreciating normally usually works out best over the long run though.
