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Lexus LS 400/LS 430 Prices Paid and Buying Experience

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Comments

  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi peters902. Through June 30th, Lexus Financial Services' buy rate lease money factor and residual value for a 36 month, 15,000 mile per year lease of a base '06 LS 430 are .00156 and 51%, respectively for consumers who qualify for its Tier 1+ credit tier. You never mentioned the specific length of lease or mileage allowance that you are interested in. I provided you with information on this car's 36 / 15 lease program because this is one of the most common configurations. Let me know if you are interested in something different.

    Car_man
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  • peters902peters902 Posts: 3
    Car Man, or anyone listening:

    Thanks for the answer. . .is there a difference in residual for 39 months/ 15,000 miles on a 2006 LS 430? Also, I have gotten some good numbers, but have run into the $500-$700 add-on for "advertising" when I get a price. It is added on to the invoice price. Most South Florida dealers are going below invoice, before they add this on, and they say that there's nothing they can do since this is a Lexus charge. What's the skinny on that?
  • rl53rl53 Posts: 6
    Hi there,

    I am in the market for a late model Pre-owned LS430. however, I came across a ebay auction by a Lexus dealer in MI. They are selling a brand new 2005 LS430 with 70 miles(the auction expired 4/20/06). Is it possible that a dealer can sell a brand new car that's a model year old as new car? The Buy-it-now price was $49900 which i don't think is competitve at all if one can get a 06 LS430 for around mid-low $50k? Any comments? Something I need to watch out for a deal like this? Thanks in advance.

    RL
  • nvbankernvbanker Posts: 7,285
    Well, yes a Lexus dealer can sell an 05 Lexus as new, as long as it's never been titled, and it seems this one hasn't, just has "demo" miles on it. Not excessive at all for a car that's had a birthday on the lot.

    What's the sticker price? I would expect a deep discount for an 05 at this point - they should be happy to sell it for cost. I would expect a $10,000 to $14,000 discount off the sticker......
  • rl53rl53 Posts: 6
    I believe it's just a basic car. no options. Plus, Is it good for a car just to keep it sit there for a year? Probably the tires already got flat spot on them from being parked for so long.
  • rgswrgsw Posts: 333
    May not be the best to just have the car sit there for a year; however, it should still have the full force of the four year/fifty thousand mile warranty. I would hope that any problems (I doubt if there are any) would show up soon. One might consider having the dealer do the 10,000 mile/one year service prior to taking delivery. They should include new windshield wipers also. As for the tires, the flat spots should work themselves out, if not Lexus will provide free balance and align for the first year/12,000 miles. That would give you some time to argue the problem if the tires don't smooth out, maybe upgrade to Miechlein's? Good Luck
  • nvbankernvbanker Posts: 7,285
    I agree - if you like the car and the discount is good, buy it - unless you plan to trade it in a few short years. You'll depreciate more than you want to. But if you're going to keep it 6 years or longer, it won't matter much.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey peters902. Lexus Financial Services' 39 month lease program is different than its 36 month program. If you were to lease a 2006 LS 430 through Lexus Financial Services right now for 39 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00156 and 48%, respectively.

    As far as the advertising charge goes, ignore it. Rather than letting dealers cloud the big picture with all sorts of fees, focus on the most important number - the total price that you have to pay to drive off in the new car that you want. It doesn't matter how the price breaks down if a dealer is offering you the lowest total price. Shop around for out-the-door prices on the car that you want and go with the dealer that offers you the best deal, provided that you feel comfortable with them.

    Car_man
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    Smart Shopper / Prices Paid Forums
  • lxpatellxpatel Posts: 34
    I am considering purchasing 06 LS 430 as they seem to selling at considerable discount. Any one know of recent sales.
  • I've visited two Lexus dealers in the South Florida area and they both have a heavy inventory on the LS 430s. While talking to the Internet manager, I noticed on his computer screen that he had a listing of around 30 of his most recent inquiries...not one of them was for an LS. It seems that the buyers entering the showrooms at this time of the year are looking for the lower priced models. In terms of the LS, I am under the impression that the only model selling at a decent pace is the base LS. The fully loaded LS's and the Ultras don't appear to be selling. Since most dealers keep an Internet listing of available vehicles, I've been trying to keep tabs on the inventory levels of the LS and it appears they are selling very slowly. Most new LS buyers appear to be waiting for the LS 460. With this in mind, I'm thinking of waiting another month or so and then making a very agressive offer. I've let two dealerships know, that when they want to do a quick deal on a fully loaded model to contact me. The reason I'm taking this tactic is because it's an end of the model run, it will depreciate at a much faster pace than a new model introduction. Since I keep my cars less than two years, I don't want to suffer at the time of trade in.

    My question to this board is how do you determine the true cost of the vehicle? I think we all know that the "Invoice Price" is not what the dealer pays and includes a tidy profit, hold-backs, etc. Also, the factory is surely giving additional incentives to the dealerships to assist in moving out the inventory of the 2006 LS models. I'm one of those "pain in the behind" buyers that refuses to pay any dealer fees as I feel to pay a dealership $700 to remove the plastic from the seats and to do a final detailing is exhorbidant. The way I like to negotiate on a closeout or high inventory vehicle is to work off the sticker and come up with a discount (let's say $10,000 or more) and then show them the Edmund TMV Trade In Price and offer to write a check for the difference. My logic is that if they want to allocate the net profit to dealer fees or towards the trade in, that's up to them. I like to call it something like an "out the door" price. This tactic can't be accompished on every vehicle, but seems to be effective on end of the year or end of the model run vehicles. Also, I never opt for the additional warranty (I trade before the warranty expires) and definitely don't buy the undercoating, paint protection or other gimicks the "finance mangager" attempts to hard sell you as necessities. Any advice on getting the best price on a fully loaded LS? Is there any mathmatical formula to figure out what the true net cost is on an LS? HELP!
  • nvbankernvbanker Posts: 7,285
    I'm not saying your strategy is flawed in any way, guru. I'm just wondering have you bought a Lexus before? (Your profile tells me zip). Reason being, most Lexus dealers pamper you to the highest level I've ever experienced. You won't find a "hard sell finance guy" there to try and slap undercoating on your car. I doubt they'll even try to sell you the extra warranty, you can always buy it right up to the day your factory warranty expires, should you keep it that long. Also, they'll annoy you incessantly after the sale about your satisfaction with the car, the deal, and the dealer.

    It's quite different than buying a Chevy.

    I'm guessing you can get up to a $14,000 discount off that sticker on an Ultra Luxury if you try several dealers. The December to Remember sale is usually the best time for unbelievable deals on a Lexus, but if the 460 is due out soon, buying just before they appear should be a good time also.
  • Thanks Banker. You're correct, this will be my first Lexus. By visiting two dealerships I've already learned that not all are created equally. One of them appears to be in a class by itself. The lesser dealer...well, let's just say that it is a result of poor management. I live in the South Florida area and there is an abundance of Lexus dealerships within a 50 mile radius.

    Great minds think alike as I already offered $15K off sticker for an Ultra and they didn't even get close. But, the salesperson was very nice about it! I had a check in hand along with the title of my existing car and was ready to sign. When they counter offered, I tried to be tactful and let them know that I've never seen a car go "up" in price, so this offer was only good for seven days. If they come back 60 days from now, my next offer will most likely be less as I'm a bit concerned about the depreciation from an end of the model run vehicle. Yes, Lexus has the best resale history, but when the 460 comes out, there will be many existing 430 cusomers wanting to upgrade...meaning an abundance of inventory of used 430s flooding the market. This is a double edged sword as the good news is that due to its high customer satisfaction reputation, they will most likley churn many existing LS owners to its new model.

    If I was to take the leap (which I most likely won't do) into a 460, I'd be a bit nervous about intital defects that are common with any new model vehicle. Remember the problems when BMW launched it's 700 series? The joystick and electrical systems were nightmares!
  • nvbankernvbanker Posts: 7,285
    I wouldn't be afraid of the 460. There may be an issue or two, but Lexus will stand behind it quickly, and I'm expecting this has been tested to death. It for sure will be nothing like the Bimmer disaster.
  • rgswrgsw Posts: 333
    I concur on your thots regards the LS460. I went thru a recall on my 2004 LS430 for Transmission and Fuel Pump swap out. The dealer filled up the empty tank with gas, provided a loaner, and one day service. Lexus USA sent me two $100 gift certificates for Chevron gas and "hoped I was not inconvenienced by the recall experience". I agree with your comments.
  • carman88carman88 Posts: 4
    Offered a Modern Luxury for 11K below MSRP in S. California.
  • Thanks Carman88. I don't know why I have this number in mind, but since it's an end of a body style and an entirely new vehicle is about to be available, I'm thinking $15K off is the magic number. I'm trying to think two years ahead and imagine how much it will depreciate as the 2006 will look just like a 2004 to the used car buyer.
  • rleyrley Posts: 4
    I notice the last post was in May and it is now July. What can be expected on a 3 yr or 39 month lease at this time. I am considering 15,000 / yr and no money down.

    Thank you
  • stickgsstickgs Posts: 8
    Car Man: Why are the residual percentages so low on the 2006 LS430's? 48% on a 39mo lease seems way low when you consider 39mo/12k residuals on a 2006 Infinity M45 are around 62%!! Say it ain't sooooo!
  • gadgetguru - any updates on what the counter-offer was and for what features on the car from those florida dealers?

    I have an offer for a moonlight pearl 2006 ls430 custom luxury package with the 18" all season with chrome, leather upgrade and smart key for 58k - or around 11k off retail and am wondering if I can do better.
  • On the 14th the Internet Department called to say he could offer $13K off sticker for an Ultra...if I could do the deal by the 15th. (Evidently the quotas are on the 15th as well as the end of the month). However, when we went over the numbers, it turned out it was around $11.2K off sticker. Since I'm not in a rush to buy and haven't yet firmly decided to buy or wait for the new model, I passed. I'll most likely receive a call at the end of the month. For your situation, $11K off the Custom sounds like a pretty good deal. I don't know if your trading or buying outright, but if you're trading, they will probably find a way to make up the difference. Also note, although the Lexus website states they have some sort of advantageous finance program, they would not quote it over the phone and told me they typically do not discuss financing until a deal has been reached. I found this strange. (I don't know if I will finance or not, but if the deal is low enough, it might be worth it. GM is offering 0% and invoice pricing on nearly every vehicle...granted Lexus is not GM!). I told him that I've driven the LS, like it and wasn't going to drive over there just to get the rate. I let him know that if I enter the dealership again, it's to pick up the car. He called me back and said depending on credit score, financing rates start around 7.5% and confirmed that's the Lexus deal...not the dealer deal. That sounds exhorbidant to me and I'm sure that the closer we get to the launch of the 460, the deals will get much better. FYI, the salesman let it slip that there was a $2,500 factory incentive on the car. I'm sure that's why were both getting similar prices in different parts of the country. I still feel that the fully loaded models (Custom and Ultra) aren't selling well in this market environment. Those of us that like all the gadgets know that the 460 will be raising the bar and be including many of the optional gadgets as standard fare. So, I'm holding out for now. There's two other cars I'm considering: The Cadillac DTS and the 2007 Lincoln MKX. The problem with the Cadillac is that the salespeople are such ninnies, that they don't even know what they have in inventory. They try to put you in the situation where the salesman keeps running back and forth to the manager and tries to let you think he's doing you a favor. I don't fall for that junk...especially when they have sooooo many in inventory. At the dealership I visited, you have to walk car to car to find one with the features you want. Also, the Internet department was vacant. The guy quit and emails go unanswered. No wonder GM is in such trouble...the dealerships are inadequate. The Lincoln MKX is a totally different car...a Navigator interior on a car chassis. Since I'm a golfer, I like the extra rear space. But the options are not finalized yet. You can go to the Lincoln website and see it. It's not an LS, but it offers a lot of space, promises a smooth ride and has a lot of gadgetry.
This discussion has been closed.