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2013 and earlier Lexus GX 460 Lease Questions

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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
  • Hi researcher10. Lexus' "December to Remember" sales event started on November 23rd and it is scheduled to run through January 3rd. All of Lexus' incentives are scheduled to run for this time period. Of course, dealers can tell you that their offer for a vehicle's selling price is only good for a few days or through the end of the month, but if this dealer was willing to sell you this truck for this price then, they probably will be willing to so so in a few weeks. The lease money factor and residual value that you were quoted for this truck, .00120 and 60% for 36 months with 12,000 miles, are right in line with Lexus Financial Services' current program for it. The main thing that I don't like about this deal is the huge capitalized cost reduction that you are being asked to make. 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 GX 470 would be exactly the same, regardless of whether you had put $3,500 down, or had made absolutely no down payment at all. Also, if the cap cost that you were quoted for this car is its selling price before the deduction of your down payment, it is attractive. However, if it is taking your down payment into account then this truck's selling price is way too high.

    Car_man
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  • Greetings Alex. If you were to lease a loaded 2006 Lexus GX 470 (with the Navigation and entertainment systems) through Lexus Financial Services right now for 30 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00120 and 61%, respectively. The numbers for an otherwise identical 36 month lease should be .00120 and 58%. Lastly, the numbers for an otherwise identical 39 month lease should be .00120 and 55%. The only model that Lexus traditionally provides special owner loyalty incentives on is the LX 470. On other models it will probably waive its security deposit requirement for returning lessees, but that's about it. This offer doesn't really apply right now anyhow given the fact that Lexus is waiving its security deposit requirement for all leases during the December to Remember event.

    Car_man
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  • Hi, I have been reading the recent posts on leasing a Lexus GX470. Never done a lease before, so I need some of your expertise before we begin :) With the December to Remember leasing program, which would be the better deal? Negotiating a 2006 or a closeout 2005? Either way, we want it loaded with the sport package. We are looking at negotiating a 36 month lease with 17,000 miles, zero money down and depending on what you suggest a possible trade in. The dealer had on his lot a 2005 loaded with a MSRP of $57,000 just to give you a ballpark figure for our area. My second question is, do you think we would get a better deal if we went directly though a leasing company vs. a dealer? In my research they say to remove the dealer and work with the leasing company because the dealer is merely acting as a middleman? I was curious as to what your take was on this. Thanks for you help!
  • Hi,
    You've quoted the money factor on current 36 mo leases as .00120 This is what a dealer quoted me too. Then when I accepted it, they said I didn't qualify. They told me my FICA score came back 50 points lower than what my own credit report showed. Do dealers have any flexibility, or I am just stuck? Can I do single payment lease to get the lower money factor? Any other suggestions on how to get the best deal?
    Thanks.
  • Hi, I forgot to ask. We are also considering moving in the next year. It is not definite, but highly possible. Some sites say it is ok and our payment would change due to taxes. Then other sites say do not do it cause it will cost you A LOT more $$. Which is true? I'm so confused.
    Thanks. My hopes are to have a new vehicle by Dec 21st...in time to travel home for the Holidays.
  • Hi Car Man:

    Please advise MF and res for a Lexus GX470 for 36mos/15k per year. Thanks! I see 36/12k above but not 36/15k. Thanks.
  • phat3phat3 Posts: 2
    Hi car man,
    gpt a quote from a leasing Co.MSRP is 53,000 @36mos. and 15,000 miles per year montly payment is 588.00 . The car has DVD entertainment and NAV. T.O.P. is 4,000. I know you would advise not that cash out of pocket but my husband feel this is the only way to keep his payments in the 500s. Please hurry with your advise the deal may happen this weekend. Thank a Million : Phat3
  • Greetings gemini64. 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.

    If you are able to negotiate a low enough selling price on a 2006 model, and according to what I hear consumers have been able to negotiate huge discounts recently, leasing one instead of a 2005 model is definitely the way to go.

    The vast majority of banks will not lease vehicles directly to the general public. The ones that are likely to have the best lease program on this car, like Lexus Financial Services and Hahn Financial, definitely won't. So you will not be able to get a better deal by working with a bank directly to lease your new car and will have to work with a dealer.

    Car_man
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  • Hi genemachine2. In order to get the lease money factor that I mentioned, consumers must qualify for Lexus Financial Services' Tier 1+ credit tier. I don't remember the exact cutoff for this tier, but I believe that it is around 730. Even if you don't qualify for this Tier, you still should be able to get a low money factor, just not quite as low as the top tier would get. You should be able to lower this money factor by pre-paying your lease or by paying additional security deposits if you want.

    Car_man
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  • Hey gemini64. Moving with a leased vehicle should not be a problem. Each state has its own rules on sales and personal property tax, to they are difficult to generalize about, but even if you do end up owing tax on your leased vehicle it probably will not be all that much.

    Car_man
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This discussion has been closed.