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2013 and earlier Lexus GS 350 / GS 460 Lease Questions

CarMan@EdmundsCarMan@Edmunds Posts: 38,515
edited January 30 in Lexus
Hi everyone. Please use the following discussion to post any questions that you have about leasing a Lexus GS 300 or GS 430. Thanks.

Car_man
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  • sam_ksam_k Posts: 113
    Hey car_man, you've been really helpful in the other forums and I hope you can give me the information here. I'd like to know the money factor and residual value of both a 2006 GS300 and GS300 AWD for 36 month 10K or 12K/year lease. I've seen some information posted in the Lexus GS: Prices Paid & Buying Experiences forum and the residual value percentages look pretty bad.

    If the residual value percentage is low, then it's because Lexus will probably be replacing the GS300 with the GS350 next year and they know that this will hurt the resale value of the GS300s. Also, the 2006 GS models will be available for a total of 18 months from Feb/Mar 2005 until August/Sept 2006 (when the 2007 models come out) and that means the total production numbers for the 2006 GS models will be much higher than a normal production year.
  • jyurkojyurko Posts: 2
    Car_man, I have just been offered this lease deal. Doesn't sound too good, however, it looks like it may be in line with previous postings regarding residual and money factor:

    Car: GS300 AWD, MV, Z1, SR, SS, RF, RS
    MSRP: $52,109
    Total Cap Cost: $50,935 (incl. $600 bank fee)
    Cap Cost Reduction: $0
    MF: .00235
    Residual: 54%
    State Sales Tax: 6%
    Payments: $877.00
    Due at signing: $999.50

    Also, I inquired about MSDs:
    MSRP: $52,109
    Total Cap Cost: $50,935 (incl. $600 bank fee)
    Cap Cost Reduction: $0
    MF: .00145
    Residual: 54%
    State Sales Tax: 6%
    Payments: $809.23
    Due at signing: $8571.73 where $7650.00 refers to 10 security deposits

    How do either of these deals sound? Do you know of any lease programs Lexus has running? These are numbers provided to me by the salesman. I plugged these numbers into a lease calculator and came up with slightly different numbers (about a $9-$10 less for the 1st scenario and about $16-$17 less for the 2nd scenario), am I missing something?

    Thanks in advance!!
  • Thanks sam_k. You're right, Lexus introduced the '06 GS really early. Unfortunately, it is not providing any sort of lease support on the GS300 right now, so its lease program is not very attractive. According to the latest information that I have seen, if you were to lease a 2006 Lexus GS300 2WD through Lexus Financial Services right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00235 and 56%, respectively assuming that you qualify for its top credit tier and pay a security deposit. The factor for an otherwise identical lease of an '06 GS300 AWD without navigation would be the same, but the residual value would be 55%. For leases with only 10,000 miles per year these residual values would be 1% higher.

    Car_man
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  • Hi jyurko. the good news is that the lease money factor that you were quoted to lease this car is right in line with Lexus Financial Services' buy rate money factor for it. The bad news is that it still is not very attractive. The selling prices that you were quoted for this car look reasonable to me, but you may want to stop by the following discussion to compare it to what other community members have paid for similar vehicles lately: "Lexus GS: Prices Paid & Buying Experiences". I'm not sure why the payments that you calculated are slightly different than the ones that the dealer that you are working with quoted you, but I cannot double check their calculations because you never mentioned how long these leases are for in your post.

    Car_man
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  • jyurkojyurko Posts: 2
    Car_man, d'oh! I forgot a minor detail: Both leases are for 36 months with 12K miles per year.

    Thanks!
  • sam_ksam_k Posts: 113
    Car_man, thanks again for the info. Some people on other forums have been saying that Lexus Financial Services (LFS) doesn't offer a 10K miles/year lease but I guess they are wrong. Regardless, those residuals are terrible. Thanks to the upgraded engine and upgraded navigation system coming in 2007, the 2006 GS300 is out of the running for me and I don't think I can wait for the 2007. I'm now considering the IS250/IS350 even though I'm not that crazy about the rear styling. The Infiniti M35 Sport is really attracting my attention especially considering that the money factor and residual percentage are very attractive. I was also considering the Acura RL but the exterior styling of that car is bland compared to the others.
  • Here's the deal that I got:
    06 GS300 RWD
    Auto
    with NAV (no Mark Levinson)
    Satellite Radio (incl. 1 yr subscription)

    MSRP is $49129
    Deal is $43,779 = Tax and license

    To lease it:
    36 months 15,000 mi/yr
    Cap Cost $43779
    Taxable AMO #299
    Bank Fee $600
    Total Cap $44678
    Cap Reduction $ 3193.95
    Residual $26124.66 = 54%
    Total Drive Off $5000 (incl tax and lic)
    Money Factor .00255
    Monthly Payment $642.48

    36 Months at $12,000 mi/yr

    Cap Cost $43779
    Taxable AMO #299
    Bank Fee $600
    Total Cap $44678
    Cap Reduction $3219.11
    Residual $27092.24 = 56%
    Total Drive Off $5000 (incl tax and lic)
    Money Factor .00255
    Monthly Payment at $615.49 (incl tax)

    Is this a good deal???
  • You're welcome sam_k. I just saw my first brand new IS250 on the road yesterday. The car is an amazing improvement over the current IS300, but I completely agree that Lexus could have done a better job with the styling of the rear end. Let me know if you have any other questions.

    Car_man
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  • Hello gap4jason. Let's take a look at the deal that you were quoted for this car. You said that you were quoted a capitalized cost of $43,779 on a car with an MSRP of $49,129 and a capitalized cost reduction of $3,193.95. Let me begin by saying that I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your GS would be exactly the same, regardless of whether you had put over $3,000 down, or had made absolutely no down payment at all.

    As far as this car's selling prices goes, if we add the cap cost back into the deal, you are getting the car for around $46,973. This represents a discount of $2,156 from the MSRP that you mentioned. A base '06 GS 300 has a spread of over $5,000 between its full MSRP and dealer invoice prices. As you can see, there is definitely still a lot of room to negotiate with your deal. I am not personally all that familiar with what the market is like on this car right now, but you may be able to get a good idea of how much of a discount you will be able to negotiate by visiting the following discussion: "Lexus GS: Prices Paid & Buying Experiences".

    As far as this car's money factor goes, the last time that I saw it, Lexus Financial Services buy rate lease money factor for any lease of an '06 GS 300 was .00235 for consumers who qualify for its top credit tier and pay a security deposit. If your credit is in good shape and you are paying a deposit, there may be a little mark-up going on with your car's factor.

    Car_man
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  • Hey Car_Man,
    Now that the December to remember sales event is under way have you rec'd any feedback on what type of deals Lexus is running? I have rec'd a quote from a dealer through the internet sales department for a GS300 '06 w/ ML Navigation
    MSRP $48,424
    Selling Price $43,424
    Given the sale price $5K below the sticker price I would assume the pricing is close to where I want it to be. Any idea what the money factor and residual would be on a 36 month lease, 12K miles/year?
    Kevin (SoCal)
  • Hey kssully71:

    Where in So. Cal did you get that price? I'm looking to lease an ML equipped GS300 presently and would like to check it out. Appreciate your help.
  • Hey Kevin. $5,000 under MSRP is a very good deal for this car. It's amazing how much of a profit margin Lexus has built into them isn't it? If you were to lease a 2006 Lexus GS 300 2WD through Lexus Financial Services right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00175 and 56%, respectively.

    Car_man
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  • Car_man - do you know the current money factor and residual for a 60 month, 12k per year lease for the GS300?
  • fireboss2fireboss2 New JerseyPosts: 6
    Hello Car man,
    This is a great resource you provide for the members here, thanks for taking the time. I have two questions for you today.
    I'm looking for a lease on a 2006 GS300 AWD. Now that December to Remember is upon us, can you tell me what the current MF's and residuals are on a 36mo and a 24mo lease both at 12k mi.

    Also, I was at a dealership in NJ and was quoted the following lease on the above vehicle. We agreed on a selling price of $43,900. We then discussed lease programs and was advised that LFS current programs were not competitive and offered the following lease (from Hann Financial) which I have not accepted yet. He never did tell me what LFS had to offer.

    2006 GS300 AWD
    MSRP 48,414.
    Sell Price 43,900
    Cap Reduction 2500. (I know, I know...)
    Residual 63%
    MF .0026 I only know the MF and residual because I could read it accross the desk.
    Term 32mo
    10,000 mi
    NJ tax 6%
    Mo Payment 533.22

    Fees outside the loan:
    down payment
    1st month
    No Sec
    Bank fee 600.
    Reg 250.
    Doc 199.

    I think I will try another dealer who might be a little more forthcoming on current lease #'s
  • Thanks for the help car man. Hope to be in the new car by the end of the year.
  • Michaels,
    I live in San Diego. Got the quote at Kearny Mesa Lexus through the internet sales department.
  • Hi anijhaw. I do know the money factor for a 60 month lease of this car, but I have to tell you that it definitely is not a good idea to lease for that long. A lot can happen during the course of five years. You could move making your commute much longer than it was and causing you to go way over your lease's mileage limit. Or perhaps your family could grow causing you to need a bigger vehicle. Or perhaps you will just get sick of driving the same thing for five years and want something new. It is often very expensive to get out of leases before their scheduled end dates. Furthermore, Lexus Financial Services' current special lease money factor for this car is only good for terms up to 48 months. If you lease for 60 months its money factor jumps from .00175 to at least .00245. The residual value for a 60 month, 12,000 miles per year lease of an '06 GS 300 2WD without navigation is currently 38%.

    Car_man
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  • Thanks fireboss2. I'm glad that you enjoy this discussion so much. If you were to lease a 2006 Lexus GS 300 AWD without navigation through Lexus' "December to Remember" promotion for 24 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00175 and 63%, respectively. The numbers for an otherwise identical 36 month lease should be .00175 and 57%. This lease program is pretty good, so I am surprised that the dealer that you spoke with still ran your deal through an independent bank. The selling price that you were quoted for this car looks decent to me. I estimate that it is around $1,000 over invoice or so. Lexus sure has a huge spread between the full MSRP and invoice prices of this car doesn't it?

    Car_man
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  • You're very welcome, kssully71. Good luck in your negotiations and happy holidays.

    Car_man
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  • Hey guys,

    I am looking to lease GS430 with ML/Nav in the next couple of months. What types of deals are out there now? thx
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