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2013 and earlier Lexus RX 350 / RX 450h Lease Questions

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  • colotjcolotj Posts: 18
    I thought I knew a thing or two about leases but apparently not. Help me out here please.

    Msrp. 49804
    Disc 1804
    Selling price 48000. I know, too much but humor me.

    Dealer fee 406.70

    Net down 4257.00 which in ides first payment.

    Residual 59%

    Payment $561.31 plus taxes.

    I was under the assumption that the 59% was calculated from MSRP. That would put the residual at $29384.36 which is listed on my quote.

    That would mean that the lease was based on $20419.64 ($49804.00 - $29384.36)

    $20419.64 - $3288.99(net money down) = $17130.65 financed on lease.

    Money factor = .00195 or 4.68% (.00195x2400)

    Per the amortization schedule my payment should be $511.88/month for 36 months.

    What am I missing?
  • colotjcolotj Posts: 18
    Whoops. I forgot to calculate the difference of selling price and MSRP.

    So MSRP $49804-$48000=$1804.00

    $17130.65-$1804.00=$15326.65 net leased price.

    $15326.65 at 4.8%(.00195 money factor) = $457.98 + taxes for 36 months.
  • kyfdxkyfdx Posts: 27,623
    You aren't borrowing the depreciation.... you are borrowing the entire selling price, then paying it down to the residual, over the term of the lease...

    There is really no point in converting the money factor to an interest rate, then trying to calculate amortization. Leases are figured on straight line depreciation. Use the formula.

    MODERATOR
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi colotj. The residual value looks good, but the money factor that you were quoted is too high. According to the information that I have seen, Lexus Financial Services' July buy rate lease money factor for the 2011 RX350 is only .00165 for consumers who qualify for its top aka Tier 1+ credit tier.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi colotj. You can use the formula that is outlined in the following article to calculate your vehicle's payment: Calculate Your Own Lease Payment.

    Car_man
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  • me2011me2011 Posts: 2
    Does anybody know if Lexus will have its semi annual Golden Opportunity sale at the end of July?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    That's an excellent question, me2011. Normally I wouldn't be surprised if Lexus did introduce some incentives enhancements at the end of this month, but the the tragic quake and the resulting lack of inventory (though the situation is getting better) Lexus might stand pat and not make any enhancements. It will be interesting to see what they do. If I was in the market for a new Lexus and I wasn't in an extreme hurry I would at least wait until the end of the month to lease. At the very least you should be in a stronger bargaining position with the dealer as they try to squeeze as many sales into the month as they can and who knows, the incentives might get better as an added bonus.

    Car_man
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  • gwarrenflgwarrenfl Posts: 60
    Car_man,
    I posted in the IS 250 Site regarding the same and another question. Can you visit when you can please?
    Gwarren
  • me2011me2011 Posts: 2
    My dealer told me that the money factor was reduced this morning with a new lexus lease program but he didn't tell me what it had been reduced too. Does anybody on here know what the money factor and residual percent is for a 36 months lease, 10k miles per year? The msrp is 48647. Sales price is $44,999. $1,000 loyalty in addition. What would be my monthly payments before taxes and how much taxes are taken if you pay upfront?
  • kay35kay35 Posts: 1
    Hi! Our local dealership--Lexus of New Orleans tells me the best money factor on 2011 RX 350 is .00236--is that true??
  • timmyb2timmyb2 Posts: 2
    Hi Car_man,

    Do you have any info on the MF and residual value for a 2011 AWD RX 350, 36 month lease (both 10k and 12k miles a year)?

    Thanks,
    Tim
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi me2011. Lexus Financial Services' new enhanced buy rate lease money factor and residual value for a 36 month lease of a 2011 RX 350 AWD with 10,000 miles per year are .00140 and 60%, respectively for consumers who qualify for its top aka "Tier 1+" credit tier.

    Using these numbers, an MSRP of $48,647 and a selling price of $43,999, I estimate that this truck would have a zero down, pre-tax monthly payment of around $514.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi Tim. Lexus Financial Services' August buy rate lease money factor and residual value for a 36 month lease of a 2011 RX 350 AWD with 12,000 miles per year are .00140 and 59%, respectively for consumers who qualify for its top aka "Tier 1+" credit tier.

    The residual value for a lease with only 10,000 miles per year is 1% higher.

    Car_man
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  • feyestfeyest Posts: 1
    Car Man..thanks for all the help on this site. So, I have learned to try and negotiate the best cap cost I can at the start of my negotiatons, which I do. I don't indicate, buy or lease, just do my best on the selling price. I am coming off an RX 350 lease (2009) and I am trying to get the new model at or near invoice. So, my question is-do the dealers arbitrally play with money factors and residuals based on the negotiated price. I don't understand why I can't negotiate my best price first, and they set up the lease or buy. Me thinks this is how they retain the mystique. Another question--my husband I disagree on this one. I really want payment around $350 to $400. I was going to buy out my soon to end lease and resell ( I think the market is about 5K over my residual-about 21K now) I would then use that money as a cap cost reducer. He says makes no sense to reduce cap cost on a lease?
  • chuckjrchuckjr Posts: 61
    The main deal with leasing is you are trying to get them to "sell" you the car for the lowest amount, just as if you were buying. This low price helps in the calculations used to calculate the lease payment. The money factor and residual is pre-set by Lexus/toyota and are used to calculate the rest. The sale price is your chance to negotiate down.
    I think lexus will give you $1000 loyalty and because the used car maket (locally in LA) is lacking in good inventory your 09 may have equity.

    Reducing cap cost lowers the payment but why waste the money when you can take that money and invest it.

    I was able to get into an RX350 within 24 hours. I had been waiting to swap out my 08 MDX for a new Acura but the incentives weren't there and the 2012 aren't out. On the off chance that Lexus could get me in the door they made it work.

    LA south bay lexus dealer
    2011 rx 350 w premium package.
    Unnecessary add-ons - roof rails, wood steering and ventilated seats (nice), cargo mat and wheel locks.
    MSRP-$43,471
    Sale price - $40050
    MF .0014
    10K - 3 yr - 60% residual
    cap cost reduction ($1000 equity on MDX lease plus $47)
    $450 Title registration
    $496 first months payment

    $456 before tax - $496 after tax lease
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi feyest. Generally speaking, dealers are not allowed to alter banks' residual values. They can however and often do mark up vehicles' money factors to add additional hidden, back-end profit to deals. That's why it is important to know what the buy rate should be for the vehicle that you want prior to entering into negotiations.

    Car_man
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  • joep17joep17 Posts: 3
    edited August 2011
    Thanks you in advance for taking the time to respond, I appreciate what you do here on the site. Here are the details of a potential lease I am looking at right now for the RX 350:

    MSRP $49,347
    Net Cap Cost $43,998
    MF .00140
    Lease: 36 Month
    Residual: 59%

    Asking for 12K miles/per year. Latest offer is $500 per/mo with $6,000 down (includes first month payment). Im in NY/NJ area.

    Any help/advice would be greatly appreciated. Thanks.
  • joep17joep17 Posts: 3
    Thanks you in advance for taking the time to respond, I appreciate what you do here on the site. Here are the details of a potential lease I am looking at right now for the RX 350:

    MSRP $49,347
    Net Cap Cost $43,998
    MF .00140
    Lease: 36 Month
    Residual: 59%

    Asking for 12K miles/per year. Latest offer is $500 per/mo with $6,000 down (includes first month payment). Im in NY/NJ area.

    Any help/advice would be greatly appreciated. Thanks.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi joep17. The money factor that you were quoted is right on the money. That's a good thing. The selling price that you were quoted looks good as well.

    Having said that, $6,000 is way too much money to put down. I always advise consumers to put as little money down as possible when leasing. Consumers who make large down payments on leased vehicles risk losing part or all of the money that they put down if their vehicle is totaled in an accident or stolen and never recovered. Even though it means that your monthly payment will be higher, it's safer to go with a zero down lease.

    Car_man
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  • joep17joep17 Posts: 3
    Agreed. Once I saw that $2,564 went to cap reduction I ended up taking that out and getting the following deal:

    $3523 down (includes first month payment)
    $575 per/mo (36 months)

    We then discussed buying outright rather than lease. They offered up same money down $800 per/mo for 5 years.

    Does that seem reasonable knowing current rates?
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