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2013 and earlier Lexus GX 460 Lease Questions

CarMan@EdmundsCarMan@Edmunds Posts: 38,515
edited January 31 in Lexus
Hi everyone. Please use the following discussion to post any questions that you have about leasing a Lexus GX 470. Thanks.

Car_man
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  • I am considering trading in my 2002 GMC Yukon, which I purchased for a GX470. The dealer is pushing lease stating save your money...but to me it looks like I get no equity, however the residual on the GX470 is so good I may want to buy it in 3 years...should I lease or buy it.
  • Hi geezer52. While Lexus August lease program for the GX 470 was pretty good, it is not providing any sort of lease support on it in September (the new program actually did not start until September 6th). As a result, if I was in the market for this truck, especially if I planned on purchasing it at lease-end, I probably would just pay cash for or finance it. It is in your best interest to get pre-approved by a local bank, credit union, or bank that does business on-line to finance this truck prior to discussing financing with any dealers. Getting pre-approved will give you an idea of what sort of interest rate to expect and may motivate the dealer that you get your truck from to try to beat the rate that you already have.

    Car_man
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  • Is this good?

    2005 GX 470
    with Nav, NO Rear Ent System (can install at $1500 extra)
    The best price I got was for $45,717 (invoice price)

    Lease for 36 months
    15,000 miles
    $1500 down
    $653 month (tax included)
    MF .00188
    RV $29,252.72

    Is this good? :confuse:
  • kyfdxkyfdx Posts: 28,714
    Car_man will need the MSRP of the vehicle to give you an opinion on the lease price.. Also, is the $1500 down a cap cost reduction, or the entire amount due at signing?

    regards,
    kyfdx
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    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • delaxdelax Posts: 4
    Just requested a lease quote from a philly area dealer for a 36 Mo 15K lease on a 2006 GX470. I still have to receive the email quote but lexus.com had a special lease deal thru Nov 22 (I beleive it is nationwide) with a money factor of 0.0019 which translates into an APR of 4.56%. Is this a good deal for someone with a FICO score of more than 750. Additionally, what is the current (Oct) RV for a 2006 GX 470. Any help is appreciated. Thanks!!
  • delaxdelax Posts: 4
    Heres a quote I received a short while ago for a 2006 GX 470 with Mark Levison, Navi, 3rd row and DVD entertainment - fully loaded
    MSRP $54,658
    Cap Cost $51,524
    Money Factor 0.0021
    RV $32,794.8
    36 Mo and 15K miles per year
    Lease quote $760 per month inclusive of taxes ($697+$63)
    Please let me know if this is a good deal
    Thanks
  • delaxdelax Posts: 4
    Additional Info that I forgot
    Zero Down
  • Hi delax. The 2006 GX 470 is one of the few models that Lexus is providing lease support on this month. The .00190 lease money factor that you were quoted for this truck is right in line with Lexus Financial Services' buy rate money factor for it. This is as low as it gets for this truck, even for someone with a great credit score like yours. LFS' current 36 month, 15,000 miles per year residual value for a lease of a 2006 GX 470 without the navigation or entertainment systems is 58%.

    Car_man
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  • Delax, you are being given a $3,000 discount on a truck that has a whopping $6,000 margin between its full MSRP and dealer invoice prices. If you are in an area where there is a decent level of competition, I would not be surprised if you were able to get a little more than $3,000 off of this truck. For additional feedback on how much you should expect to pay, stop by the following discussion: george05, "Lexus GX 470: Prices Paid & Buying Experience" #, 5 Sep 2003 7:02 pm.

    I'm not sure why the money factor that you mentioned in this post is higher than the one that you mentioned previously, .00210 versus .00190, but unless you are having your security deposit waived it would be in your best interest to insist that the dealer that you are working with use the .00190 factor to calculate your truck's lease payment.

    Car_man
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  • Can you tell me the residual value (%) for 36/15k and 36/12K for a 2006 GX 470 with Nav, Mark Levison, and DVD. MSRP is $55,360. Thanks.
  • Hi,

    I will be getting a 2006 GX 470 loaded including the sport package next month. We visited the dealer yesterday to look and see what they offered. Here's the deal, it seems to me he is not offering me much. I will be leasing for 36 mo. 15,000 miles per year.

    MSRP: 57358.00
    Cap cost: 54358.00
    Residual: 32120.46
    $816.00 per month
    money factor: he said 5.5% ( I have no idea what that means)
    I live in MN so taxes now have to be paid up front so the 816.00 I dont think includes a tax payment per month.
    We are putting no money down other than 1st payment and license fees.

    Can anyone tell me if he is being fair? There are only 2 Lexus dealerships in MN and they are owned by the same company.

    Thanks so much for responding!
  • Here is the information that you are looking for tcmotorcity. According to the latest information that I have seen, if you were to lease a 2006 Lexus GX 470 the with navigation and entertainment systems 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 .00190 and 56%, respectively. The money factor for an otherwise identical lease with only 12,000 miles per year would be the same, but its residual value would be 2% higher.

    Car_man
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  • Hello msizzle. The selling price that you were quoted for the GX 470 that you are interested in looks reasonable to me, but you still may want to stop by the following discussion to compare it to the prices that other community members have paid for similar trucks lately: george05, "Lexus GX 470: Prices Paid & Buying Experience" #, 5 Sep 2003 7:02 pm. Let's calculate a lease payment on the truck that you are interested in using Lexus Financial Services' actual lease program and see what we come up with. According to my calculations, if you were to lease a 2006 Lexus GX 470 with both the navigation and entertainment systems (you said it was loaded, let me know if it does not have these options), an MSRP $57,358 and a selling price of $54,358 through Lexus Financial Services right now for 36 months with 15,000 miles per year, its zero down, pre-tax monthly payment should be around $783. I used a money factor of .00190 to calculate this truck's payment. This is equivalent to an interest rate of around 4.56%. You should be able to qualify for this exact factor if your credit is in good shape and you pay a security deposit at lease signing. It sounds as though this dealership may be marking up your truck's money factor a little bit to add additional back-end profit to your deal. However, given the lack of competition for your business and the fact that you are not paying a security deposit or acquisition fee at lease signing, I would say that your deal isn't too bad.

    Car_man
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  • Hi Car_man,

    Thanks for your input and expertise. I ended up leasing a 2006 GX with Nav., Mark Lev., Sport package and rear entertainment with a MSRP of $57,358 and a negotiated a price of $51,506 through an out of town leasing company. That included shipping. My rate is 5.8% with the money factor corresponding correctly, I forget what it is, but I did check it out. The residual value is $33,180. No money down, no security deposit. I feel pretty good about this deal. What do you think? The rate is a little higher than the other dealer but, I was never offered anywhere near 4.56% anywhere and I checked around. I wonder why that is? My credit score is over 800 too. Oh well, everyone has to make money. Car dealers and leasing companies are not non-profit organizations. I just wanted a good deal that was fair to both parties. Do you think I got one? Thanks for responding. I appreciate it! I get my car this week...delivered right to my door. I cant wait!!!!!

    Thanks again,

    Msizzle
  • You're very welcome Msizzle. You got a heck of a discount on this truck. A base '06 GX 470 has a spread of just over $6,000 between its MSRP and invoice price. You were given a discount of around $5,800 which looks like a good deal to me. It is amazing how much of a spread that Lexus dealers have between vehicles' MSRPs and invoice prices, especially in today's marketplace where many manufacturers are cutting that gap on their products. The money factor that you paid is a little higher than the special factor that Lexus Financial Services is currently providing on this truck though. LFS' current buy rate money factor for a similar lease is .00190, which is equivalent to an interest rate of just over 4.5%. Lexus dealers would have probably tried to mark this truck's buy rate factor up on you to add additional back-end profit to your deal anyhow, so overall I would say that you god a good deal on this truck. You have a very good attitude about thie new car purchase process, you want a fair deal (which I believe you got), but you understand that dealers have to actually make some money to keep their doors open. Congratulations on your new GX and enjoy!

    Car_man
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  • Do you have the residual value for a 48 month, 15k per year lease with the navigation system?

    Thanks for your help!
  • No problem, nato32597. According to the latest information that I have seen, if you were to lease a 2006 Lexus GX470 without navigation through Lexus Financial Services on or before November 22nd for 48 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00190 and 47%, respectively assuming that you qualify for its top credit tier and pay a security deposit.

    Car_man
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  • Thanks Car_man,

    I purchased my GX470 at the terms you gave me with nothing down and no security deposit. Of course it was comical when the finance manager initially stuck me with a MF of .0024 on the contract and then played naive about knowing anything about special lease factors on this vehicle. In the end, I purchased my GX 470 with an MSRP of $53,606 for $47,189 or $500 over invoice.
  • I see that Lexus offers leasing on their certified pre-owned vehicles. Does this work the same as new cars with preset residuals or will I find much more variation dealer to dealer. We are just beginning to consider this as an option and any feedback would be appreciated.

    Thanks
  • You're very welcome, nato32597. I am glad that I was able to help you out. Enjoy your new truck, it's a nice one.

    Car_man
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  • Hi txcurtis. Leases of Certified Pre-Owned vehicles are fairly similar to new vehicle leases. The main difference is that banks publish dollar value residuals for used vehicles, instead of percentages. So for instance, a CPO Lexus ES 330 would have a three year residual value of say $15,000 instead of a percentage like 50%. This is a hypothetical example, but you get the idea.

    Car_man
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  • Hi Car-Man-- I have a GX470 with a 25,000 mile lease over 39 months. It comes due by May. The extra miles were purchased upfront for only 10C. We are going over averaging 30,000-32,000 miles per year. As we prepare for the next vehicle we have learned that the near higher mileage charge is 20C /mile. My question is if it were you and you knew that you would be averaging 30-32K /year in miles financially would you lease again for only 24 months, 36 months, or would you buy and hold for 3 years? My feelings have been to walk away after 3 years and 90K miles to go to a new vehicle is the way to go. You thoughts please. Thank you. skiman3
  • Car_Man,
    Is there a resource where I can see what these residuals are. I see that many of these pre-owned GX 470s range from 38-42 depending on year model (2003-2004) and equipment (DVD - Navi etc). Can you estimate how much payment may be on a 2-3 year lease at 15K miles a year. I am just trying to find out if this is a feasible option before we go looking and my wife falls in love with a vehicle that we may not be able to afford.

    Thanks
  • Car-Man,
    I forgot one more very relevant question, with the CPO leases is there a substantial enough monthly savings to justify the CPO versus leasing a new vehicle.

    Thanks
  • Is it o.k. to ask which national lease comany you worked with that you got that price through - or could you email me with the information.

    Thanks
  • Hello Car-Man,

    We have a 39 mo lease on a GX470 with 25,000 miles /year. Has Navigation, 3rd row seat & premuim set up. We purchases the higher miles at a dime extra and if we exceed the amount the charge is $0.15 for miles beyond 25K/year. However we are averaging 32K miles /year. As the vehicle comes off lease in late May 2006 we need to make some decisions which I'd appreciate your guidance on:

    Now we hear Lexus charges $0.15 to purchase miles above 12K/year and then $0.20 for miles above & beyond the contracted amount. So if we sign a new lease for a new 2006 GX 470, knowing that we need 32K miles /year can you share what a 24 month lease would cost? Assume no cap cost reduction and 6% sales tax built into the monthly payment.

    Could you also comment if you think a 24month vs 36 month lease is in our best interest to stay close to being within the 50K warantee ? In other words on a 2 year lease the 64K miles is closer to the warantee period than say a 36 month lease with 96K miles.

    One final question. In your opinion knowing we put a ton of highway miles on our vehicle, do you agree that leasing either 24 months or 36 month leases is more economical for us than purchasing and then trying to sell /trade in the GX with high miles?

    Car-man I welcome your guidance and council.

    Thanks,

    Skiman5
  • My gosh you do a lot of driving, skiman5! Where to you live? If I put that much mileage on my vehicle, I probably would purchase it rather than lease it. Theoretically, you would come out around the same if you leased a truck with this many miles and if you paid cash for it and sold it after putting on this many miles, but I personally would never lease a vehicle if I knew that I was going to drive this much. If I needed to drive this much, I would pay cash for or finance a car that gets excellent gas mileage and drive it into the ground. The only reason why I would get an SUV is if I really needed the space.

    Car_man
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  • Hey txcurtis. Unfortunately, I am not aware of any resource that provides informaiton on banks CPO residual values to the general public. I do not personally keep tabs on CPO lease programs either. If you're interested in leasing a certified GX, make sure to get a quote for what it would cost to lease an otherwise identical brand new truck. You may find that the new one is not that much more expensive to lease, especially with the new attractive "December to Remember" lease program that Lexus is running right now.

    Car_man
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  • I have an lease offer on a 2006 GX470 without NAV and I was wondering if Car-man could tell me if it's a good deal. The Residual and money factors are better than you mentioned but the Capital Cost is higher. After reading on the "Prices Paid" forum I feel like I should be getting a better Capital Cost, but maybe that would just increase the money factor. Here's the deal:

    MSRP is around $50,300 Cap Cost $46,600
    Residual 60% Money Factor .0012
    36 month lease term
    $5000 due at signing which includes First Payment $449, Acquistion fee $600, Dealer handling $399 and the remainder ($3552) as cap cost reduction.

    I am also confused about the December to Remember sale. This dealer says this lease deal is only good through November. He said the December to Remember sale was just lease deals??? Seems strange.
  • Car_man,
    what are the current lease numbers for 30,36,39 M - 12000 miles on fully loaded GX?
    Also I'm currently leasing from Lexus, do I get any discount on a top of that?

    Alex
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