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2013 and earlier Lexus GS 350 / GS 460 Lease Questions

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  • I am new at this. What is money factor and residual value? Can you advise me on whether it is more economical to leasea a new 2006 GS 300 for 36 months, 15k miles a year or purchase a pre-owned 2006 GS 300? Or perhaps it would be best to lease a pre-owned 2006 GS 300? I appreciate any help on this matter.
  • Hi random987. It is difficult to say why the residual values for the GS are not as attractive as the residuals for the BMW 5-Series or Infiniti M45. Perhaps Lexus is being more realistic about the future value of this vehicle than those other automakers are. I know for a fact that BMW artificially inflates BMW Financial Services' residual values on a number of vehicles to make their lease payments more attractive than they would normally be. It essentially is a way for it to hide lease support.

    I'd be happy to estimate what this car's lease payment should be like for you. However, in order for me to do so I also need you to provide me with the MSRP of the model that you want.

    Car_man
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  • Hey random987. Lexus' January lease program is scheduled to run through March 31st. So the money factors and residuals for the cars that you are interested in should be the same this month as they were last month.

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  • Thank you Daniel. This car's February numbers should be exactly the same as its January numbers. Let me know if you need them again or if you want them for a different term or mileage allowance.

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  • Greetings sherry8. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment. Once you have read them, stop back and I would be able to answer any specific questions that you have about leasing a Lexus GS, or about leasing in general.

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  • Car_man,

    Thanks for the response. I am getting a quote on the GS300 of MSRP 50704, Invoice 45704. I am looking at 3 year lease, 10k per year. Can you confirm what the buy rate MF and residual value will be for this vehicle with these terms?

    The numbers I am using are .00178 and 54% (which is the residual value for 12k a year) which give me $639.09 a month (not including taxes). Also, for some reason the dealer MSRP is slightly higher than the MSRP listed on Edmunds.com--is there a reason why there would be a $394 price difference?

    Thanks.
  • epf55epf55 Posts: 1
    I'm looking for a GS300 AWD, for 36 months & 20,000 miles/yr. Would you mind sharing what the factor & residual value will be for this? Thanks
  • shepalishepali Posts: 72
    Car man - what are the current lease factors for a 24 and 36 month lease on a GS300, with 15,000 miles/year? (i.e. MF and residual).
  • dmason12dmason12 Posts: 13
    I am also looking for 36 month money factor and residual for, but for the GS430. I am in CA. The info would be much appreciated.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You're welcome, rockclimberla. According to the latest information that I have seen, 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 .00178 and 54%, respectively. I'm not sure if LFS offers a 10,000 mile per year option. I'm not sure why the MSRP that the dealer quoted you is higher than the one that is listed here at Edmunds.com. Perhaps there was a price increase that Edmunds has not picked up on yet, or perhaps the dealer is including some sort of fee in the price that it quoted you, like an ad fee.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Here you go, epf55. If you were to lease a 2006 Lexus GS 300 AWD through Lexus Financial Services right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00178 and 53%, respectively. 15,000 miles per year is the highest mileage allowance that LFS publishes residual values for. If you need to drive more than this, you will have to purchase additional miles on a per-mile basis. It is less expensive to do so at lease signing than it is to wait until the end of your lease and have to pay an excess mileage penalty.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi shepali. If you were to lease a 2006 Lexus GS 300 2WD through Lexus Financial Services right now for 24 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00178 and 58%, respectively. The numbers for an otherwise identical 36 month lease should be .00178 and 52%.

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  • getting a rate for a GS300AWD with almost every option available Purchase Price$46,322, residual is 55% for 12k per year and the money factor is .00178. Total out of pocket is $3216 which includes 619 1st month, $167 trasnfer plates, 600 bank fee, $44 tax on bank fee. Lease for 36 months is $619. Is this a good deal? Please advise.
    Many thanks to all!
  • acespadeacespade Posts: 2
    I am new to leasing. I read the primers but can't figure out if this is a good lease.

    Here is what a Bay Area salesman quoted me:

    MSRP $50704 My price $44500

    $3000 down 48 months at $637.72 including tax(7.75%)

    Residual Value $20788.64

    Money factor is 0.00136

    Mileage Allowance 15000 miles
  • bartalk3bartalk3 Posts: 692
    May I ask what Bay Area dealership gave you that price?
  • acespadeacespade Posts: 2
    Magnussen Lexus Fremont.

    Are you buying a GS?
  • bartalk3bartalk3 Posts: 692
    Possibly. Debating between the GS300 and the new ES350. If the 350's handling is at all improved over the current model, I may go for that. Even at sticker, it's thousands less than the GS comparably equipped. But it won't handle like the GS. On the other hand, the other factor is that the GS350 will debut in the fall.

    Thanks for the ref. to the Fremont dealer. I'm going to be spending several months in the Bay Area this summer.
  • What is the money factor for April?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi acespade. A base 2006 Lexus GS 300 2WD has a spread of a little over $5,000 between its full MSRP and dealer invoice prices. You were quoted a $6,200 discount on the car that you are considering. As long as the price that you posted is not taking your down payment into account, this is a very good deal. The money factor that you were quoted for this car is right in line with Lexus Financial Services' buy rate money factor for it for consumers who qualify for its Tier 1 credit tier. This factor is slightly lower for consumers who qualify for its Tier 1+ tier, at .00126. Overall, this is a very fair deal.

    You really should not make such a large down payment when leasing though. If your leased car is totaled in an accident or stolen, your $3,000 essentially disappears. You would be better off not making any sort of capitalized cost reduction. According to my calculations, if you were to lease a base 2006 Lexus GS 300 2WD with an MSRP of $50,704 and a selling price of $44,500 through LFS right now for 48 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $741.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey alboogie7. Lexus Financial Services' current buy rate lease money factor for the 2006 GS 300 is .00126 in most areas for consumers who qualify for its Tier 1+ credit tier.

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  • pbijlipbijli Posts: 1
    Hi there,
    The MSRP on GS 300 rwd including NAV & Mark lev. is $50510 in Miami, Fl.
    The lease deal I am getting is $608 + tax for 36 months with no down on 12k Miles. He is considering a .52 residual and tier 1 credit score. Is this a good deal?
    Also why diff. lexus dealers use diff. residual value
    eg. .52 and .55 for the same car.
    appreciate ur help.
    Thnks
    Bij
  • gcannongcannon Posts: 5
    Bij - sounds like a great deal. Can you tell me the Miami dealer, and your salesman, so I can get the same deal! Thanks, george.
  • kyfdxkyfdx Posts: 27,992
    Dealership names are okay...

    Salesperson names are not okay..

    Please see the message printed in red, just above the Post a Message box.

    Thanks,
    kyfdx

    MODERATOR
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi pbijli. You never mentioned the selling price of the car that you are interested in leasing. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the car that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to give you my opinion of this deal if you let me know what this car's selling price is.

    Different Lexus dealers cannot use different residual values for the same car. Most likely, either the two dealers that quoted you different residual values are running the leases that they provided you with information on through different banks or they are using different mileage allowances.

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  • chucky2chucky2 Posts: 8
    What are the June MF and residual figures for a 36 month/12 K lease on a GS300? Is Lexus giving any lease support?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi chucky2. Here is info on Lexus' new July lease program. 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 .00126 and 50%, respectively.

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  • ginfayginfay Posts: 2
    Went to the dealer this past weekend and I'm looking to take advantage of the July lease deal.

    Here are the numbers:
    MSRP is $48,414, 36 month lease, 12,000 miles

    Due at signing is $5535 - which inclues:
    $2,500 Down pmt
    $525 first pmt
    $249 processing
    $600 acquisition
    $125 tags
    $1536 taxes
    Residual value is 50% = $24,207

    My monthly payment is quoted at $519 a month.

    Can you tell me if I'm getting a good deal?
  • smith000smith000 Posts: 9
    Is this the same on a 3yr/15k lease or have residuals dropped?
  • This sounds like a great deal - which dealer was this?
This discussion has been closed.