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Car Buying Advice - Buy vs Lease 2017 ES 350

a_rav31a_rav31 Posts: 3
edited April 2017 in Lexus
State - Virginia
Tax Rate - 4.15%
MSRP - 42,959
State requires us to pay total sales tax upfront.
State has property tax which has to be paid either way.

Looking for a 36 month 12k per year lease or buy...
Will probably change the car in 26 months. Looking to compare which will have lower cost of owning the car per month.

Currently leasing a lexus which is coming to an end soon. Have 2250 Lexus lease cash credit and 2100 dealer preferred customer bonus.

Answers

  • MichaellMichaell ColoradoPosts: 154,010
    a_rav31 said:

    State - Virginia
    Tax Rate - 4.15%
    MSRP - 42,959
    State requires us to pay total sales tax upfront.
    State has property tax which has to be paid either way.

    Looking for a 36 month 12k per year lease or buy...
    Will probably change the car in 26 months. Looking to compare which will have lower cost of owning the car per month.

    Currently leasing a lexus which is coming to an end soon. Have 2250 Lexus lease cash credit and 2100 dealer preferred customer bonus.

    The lease will give you a lower payment, because you are only 'renting' the car for the lease term.

    Ending a lease early can be problematic. If your exit strategy is to trade out after 26 months, there isn't an advantage to either lease or buy. Unless you put a lot of money down when you purchase, you'll likely be as upside down after 26 months in a lease or a purchase situation.

    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


    MODERATOR

    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

  • @a_rav31 , I agree with @Michaell. You can technically lease for 27 or 30 months but the sweet spot is right around 36 months.

    Leasing is usually the best option for keeping your monthly payments low unless you're ok with getting a higher mileage used vehicle that has a lower sales price. I'm not sure switching out the car after 26 months is something I would recommend if you're footing the bill. Taxes and fees are going to pile up. Especially in VA where you pay on the sales price for taxes. Plus the average documentation fee from the dealer is $490 and Acquisition fees that are $595+. If you don't pay those up front, they will just add to the negative equity when you try to get out of the loan/lease.

    What is the reasoning behind getting out of the lease after 26 months?
    Edmunds Moderator
  • a_rav31a_rav31 Posts: 3
    Thank you for the replies.
    Apologies... 26 was a typo... Will get out of the car after the 36 months and probably get an electric sedan...

    Also need a suggestion - I am currently leasing my existing car (2015 Lexus ES with 18k miles), which I was going to buy at the lease end (In May 2017). The car was in a accident (not at my fault) recently and has been in the body shop for a couple of weeks now. Should I even consider buying this car? Or is it a good idea to swap it for a new lease?
  • kyfdxkyfdx Posts: 159,677
    a_rav31 said:

    Thank you for the replies.
    Apologies... 26 was a typo... Will get out of the car after the 36 months and probably get an electric sedan...

    Also need a suggestion - I am currently leasing my existing car (2015 Lexus ES with 18k miles), which I was going to buy at the lease end (In May 2017). The car was in a accident (not at my fault) recently and has been in the body shop for a couple of weeks now. Should I even consider buying this car? Or is it a good idea to swap it for a new lease?

    I would never buy out a lease on a car that has been in an accident. That's one of the advantages of the lease. If the car has been damaged, and value compromised, you can walk away.

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

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