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

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi en2life. It is very important to understand how leasing works before finalizing your deal. You should be able to get a good idea of how leasing works by checking 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.

    I would be happy to give you my opinion of this deal if you provide me with a detailed description of the truck that you are interested in.

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    P.S. I had to delete your post because it contained your e-mail address. If you want community members to e-mail you, make your address public in your profile and tell them to check there. Thanks.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey en2life. Lexus' current lease program for the 2007 RX 350 isn't bad, but traditionally Lexus provides its best deals of the year during its "December to Remember" sales event. I expect Lexus to roll out this year-end promotion on November 22nd. If I personally was in the market for this truck I might be inclined to wait until then to get one.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi darballman1. I haven't heard about any enhancements to the Lexus RX 350, but it's possible that Lexus made one recently. If I was in the market for this truck, I personally would probably wait until Lexus introduced its "December to Remember" sales event and the end of this month.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi brg. This truck's lease program will depend upon its MSRP and the selling price that you are able to negotiate. I would be happy to give you my opinion of the deal that you were quoted if you let me know what these numbers are.

    As long as you have made your final payment on your Highlander lease, there's nothing wrong with turning it in slightly early.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi jakpenn. It is difficult to say exactly what Lexus' "December to Remember" lease program for this truck will be like. If I had to make an educated guess, I would say that it is likely to be more attractive than Lexus current program for the RX, but there is no guarantee that will be the case. I believe that this program will start around November 22nd.

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  • moolmanmoolman Member Posts: 129
    I've had 2 separate dealers tell me the december to remember sale started early, is this true or BS.
  • moolmanmoolman Member Posts: 129
    Hi,
    I'm being told the Teir 1+ money factor is 0.00133 but I'm being told a weird residual. 54% for 15K, not 56%. Maybe they are trying to make some extra cash off me.

    Also, is it true that if I want 18K a year, that there is no residual for that. I'm being told I must either prepay the extra 3K at 15cents or pay if I go over 20 cents a mile when I turn in the car.

    Well, supposedly this is the december to remember special. It seems to be lower than anybody else posted so far, so it seems to be legit.

    I'm in Southern California and I'm getting crazy prices way below invoice without haggling. Is there some special incentives going on right now for the car?

    Thanks
  • redhat381redhat381 Member Posts: 26
    I appreciate all the info I gathered from this site. Time to contribute back.

    I leased a 07 RX350 FWD with Navigation today.

    36 month lease with 12k per year.

    $431.43 per month with 9 MSDs and no cap reduction...

    MSRP: $44,160
    Sales price: $37,500
    Acquisition fee: $600
    Registration, license: $308
    Document prep: $48.71
    Other fees: $36.75

    Lease info:
    Gross Capitalized Cost $38,100 (sales price + acquisition)
    Current Money Factor for 36months 12K: .00133
    Discount for putting down 9 refundable security deposits: .0009
    Final Money Factor: .00043
    Residual = 56%
    Total monthly payment with 8.25% tax = $431.43

    Multiple Security Deposit Info:
    1 MSD = $450 (monthly pmt round up to next $25)
    9 MSD = $4,050
    Total Due at signing:
    MSD = $4,050
    first month pmt = $431.43
    Fees = $393
    Total Due at signing = $4,878 (I'll get $4,050 back.)

    Hope this can help others.
  • darballman1darballman1 Member Posts: 55
    Here is the lease quote I received yesterday (Sunday) from Longo Lexus in Southern California:

    2007 AWD RX 350

    MSRP: $ 43.055

    Capitalized Cost: $ 37,200.

    Drive Off: $ 850.

    36 months/12K miles

    $ 451. + tax =

    Total Payment: $ 486. 55

    Note bad of a deal. Seems to be a glut of RX 350 here in Southern Ca. Went on Crown Lexus's lot on Sunday (John Elway's dealership), and they must have had over 75 RXs.
  • jakpennjakpenn Member Posts: 20
    Here is a deal quoted on rx 350 12k 36 mo lease in Dallas:
    Msrp $40,680
    Cap Cost: $37,465
    Money factor:.00215 marked up from .00133 even though beacon score is 780
    Residual 56%

    Why are they not offering me top tier financing...they seem to be making plenty on the car
  • qianc_01qianc_01 Member Posts: 4
    After hassles with other dealers in Los Angeles, Finally
    got a RX350 from lexus of oxnard without any trouble. MSRP:41500, Cap cost:35660+600(acquisation). Put down
    $3825 for refundable desposit to lower the money factor
    to 0.00037(0.9% APR). Residual is 56% for 3 years/12K. The drive off cost is
    $400(DMV)+$406(first payment)+$3825(Multiple Security Deposit). Monthly payment is $375+$30(tax). If you live
    in southern CA, you can call their internet department.
  • moolmanmoolman Member Posts: 129
    you got a final money factor of 0.00037 after 9 MSDs. Does that mean you got a money factor of 0.00127, is this correct. I'm getting the lowest as 0.00133, so just checking to see if it got lower.
  • qianc_01qianc_01 Member Posts: 4
    No, original is 0.00133. After MSD, it goes to 0.00037. That
    dealer seems to be eager to sell their cars.
  • moolmanmoolman Member Posts: 129
    you must of got an extra 0.00005 from them because doing the math. Each MSD is a 0.0001 off, so you should end up with 0.00043. How did you manage that, did specifically say there were going to give you a discount. I might try to get a better rate but I have a feeling they will tell me that it's the lowest that lexus financial will go. Unless you can verify otherwise. Thanks
  • qianc_01qianc_01 Member Posts: 4
    I am pretty sure they told me 0.00037. But even with that number, online
    calculator shows $415(including 8.25% tax) monthly payment. Since they offered
    me $407, I didn't bother to ask why. Before doing MSD, they
    said I have to pay $477 and they were using 0.00133 at that time.
  • moolmanmoolman Member Posts: 129
    Hi,
    Does anybody know if the mileage penalty is negotiable or not. So far I'm being told that if I prepay the penalty it's 15 cents a mile, 20 cents a mile if I pay afterwards. Is this a lexus financial figure or is it negotiable.

    Thanks
  • kunalbkunalb Member Posts: 4
    Hey guys i am new to the board and have been looking for either a gs350 or rx400h. While the prices might be close for both cars with nav and other options, the lease prices are worlds apart. I was recently quoted by lexus dealer that he could give me the 400h with flint mica and nav for 534 a month.

    His offer:

    MSRP: 49,887
    Sell Price: 45,051

    36month/15k a year : 2500 down + (tax + inception fees) : $533.94 a month.

    Lexus leasing is kind of confusing to me because the gs350 lease i was quoted was always around 700-800 with nav and almost identical sales price. So can someone let me know if this is a good deal or should i try to go lower.
  • cpa3cpa3 Member Posts: 89
    Does anyone know what the deal they are offering is now? I went to MV Lexus and the best I could get out of the Sales Rep was they were discounting lease rates.

    I also noticed all the RX 350's had 18 inch wheels which was an additional $665 added to the list price. Can you get them with the standard wheels?

    Is there any other lease fees that are standard items to charge for other than the acquisition fee of $600? I see some have listed documentation fees and mis garbage fees.
  • friendlybayerfriendlybayer Member Posts: 3
    Hi Sir,

    Did you put any Security Deposit on this deal? or It's just $850 drive off and that is it?
    I am trying to get the car tomorrow. Please advise. Thanks.
  • cpa3cpa3 Member Posts: 89
    Why does the interest portion of the lease payment calculation include interest on the residual value and the capitalized costs. It seems to me that the calculation is doubling up on the interest on the negotiated purchase price and then on the residual value. Is that because the money factor really doesn't correspond to a realistic interest rate?
  • friendlybayerfriendlybayer Member Posts: 3
    Which salesperson did you talk to? Please advise as we are here to save our hard earned money. Thanks.
  • kyfdxkyfdx Moderator Posts: 234,725
    Actually, you are only paying interest on the average of the residual value and cap cost. Rather than adding them together and dividing by 2, that calculation is built into the money factor.

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  • kyfdxkyfdx Moderator Posts: 234,725
    Reminder...

    You may include the dealership name, city and state in your post. Please do not post names of salespeople, telephone numbers, email addresses, or other contact information.

    Edmunds Price Checker
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    Did you get a good deal? Be sure to come back and share!

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  • darballman1darballman1 Member Posts: 55
    $ 850. TOTAL drive off/nothing else.

    483. a month AWD.....
  • darballman1darballman1 Member Posts: 55
    I would go to Longo Lexus. They offered 487. incl.tx. w/ a Capitalized cost of $ 37,200.

    Crown Lexus in Ontario wanted to beat Longo. Here's their offer: Cap. cost: 37,000. 483.(incl.tx) and change w/800. total drive off.

    Both dealers did not add any "extras".
  • moolmanmoolman Member Posts: 129
    Following the lead of redhat381, in the same format I will list my details. I followed his advice and got a great deal too.

    Once again, this seems to be a So Cal deal, since the car seems to be way under invoice in this area.

    I too did the 9 MSD's.

    36 month lease with 18k per year.

    $471.48 per month with 9 MSDs and no cap reduction...

    MSRP: $44,146
    Sales price: $37,500
    Acquisition fee: $600
    Registration, license: $335
    Document prep: $48.71
    Other fees: $8.75 (California Tire Fee)

    Lease info:
    Gross Capitalized Cost $38,100 (sales price + acquisition)
    Current Money Factor for 36months 18K: .00133
    Discount for putting down 9 refundable security deposits: .0009
    Final Money Factor: .00043
    Residual = 56% also minus $1350 for 9000 extra miles at $0.15. I'm doing 18K/year.
    Total monthly payment with 8.25% tax = $471.48

    I paid for first months and title at drive off. That's it.

    Side note, I got 56% residual at 15K instead of 12K unlike redhad381. Don't know why, I didn't complain but the norm seems to be 56%/12K, 54%/15K.
  • cpa3cpa3 Member Posts: 89
    Moolman,

    what dealer did you buy from and what dealers did you check with? I am from OC and will be buying one shortly.

    Thanks
  • darballman1darballman1 Member Posts: 55
    Why is your monthly at 471.48 AFTER putting down 9 RSDs ?
    That seems high compared to what deal I was offered. (See message # 283.) I am putting ZERO RSDs,(850 total down). with a MSRP of 43K, cap. cost of 37.2K for a payment of $ 487. Maybe the diff. is me going with 12K per yr. ? The residual is 24,545. With you putting that chunk of cash down and only $15. less a month, something is not computing here. I live in Orange County, and the tax rate here is 7.75%, so that makes a little difference. But, even with thed difference in mileage from 12K to 18K and $ 186. more in sales tax still wouldn't make up for the extra thousands
    you are putting down.
  • redhat381redhat381 Member Posts: 26
    Darballman1 -

    Moolman's monthly w/o 9 MSDs would be about $531.

    Your monthly with 9 MSDs, based on the numbers you provided, s/b about $426. (provided you actual cap cost is $37.8K, including $600 acquisition. Otherwise your numbers don't work out right.)

    You would be saving about $61 a month with the 9 MSDs according to my calculations, or $2,196 for the duration of the lease.

    Since your 9 MSDs would be $4,050, that would be a return of about 14.5% a year. This return is also non-taxable.

    I don't know about others, but I don't see too many risk-free (or close to it) investments with guranteed non-taxbable return of 14.5% a year for three years.

    Hope this helps.
  • cpa3cpa3 Member Posts: 89
    What is the risk of not getting your money security deposit back? Why do you think Lexus would be willing to give you a 14.5% return on the deposit...? Just curious because it sounds like a good deal for us. Gives them some protection in the case you destroy the car or not in good condition when you return.??
  • darballman1darballman1 Member Posts: 55
    RedHat:
    You still can't explain WHY the payment of 531 W/O MSDs.
    Bottom Line:
    My deal on the table for a cap. cost /RX 350 AWD of $ 37,200 with ZERO $ down (850. lease inception $), with NO MSD for a TOTAL payment of $ 487. Again, 531. for the auto mentioned must be figured on a NON- DEC. TO R. lease rate. And, again, this offer is from TWO different Lexus dealers. It can be purchased (res.rate) for $ 24,500.

    So, Moolman's deal, I feel is not all that great.
  • redhat381redhat381 Member Posts: 26
    Darballman1:

    Moolman's monthly pmt before the MSD discount and before taxes would have been $455.17. Tax would be $37.55. Additional miles would be $38 a month. That would have made it $531. Instead, he's paying $60 less a month due to his MSDs.

    I used the same Dec. to Rem. money factor of .00133 for both you and Moolman.

    By the way, Moolman received $6,046 off MSRP, whereas your offer is $5,250 off MSRP. Plus, Moolman's residual is very good at 56% for 18K miles a year, while your offer is the standard 57% for 12K a year.

    Moolman received an excellent deal both for his sales price and lease terms. I think you can improve on yours, though.

    Good luck.
  • redhat381redhat381 Member Posts: 26
    Correction...

    Moolman received $6,646 off MSRP, and your offer is for $5,850 off MSRP...
  • darballman1darballman1 Member Posts: 55
    Redhat:
    Thanks for the clarification. The extra mileage does explain the difference. I did receive 6,050 off list, so his deal IS a little better.

    Thanks, again. :)
  • cingularcingular Member Posts: 2
    I have a quote of .00143 for a 12K/36 month lease on an RX350 FWD. My FICO score is 706, and more than one dealership in my area, the southeast region, that they are not offering the MSD discount along with the december to remember special financing, so how did you guys get it??
  • moolmanmoolman Member Posts: 129
    Hi everyone,
    Well, I'll put my input in but redhad381 answered all the questions correctly.

    I don't know why they gave me a 56% residual for 15K, I was quoted 54% but when the final papers came, it was 56%, so I didn't complain. Also, remember that I paid for the extra mileage up front of 9000 miles at 15 cents. So you have to minus $1350 from my residual.

    From my experience, I gather the lowest price possible for the car, MSRP 44146 seems to be about $37400-$37500. After I got my quote of $37500 in writing and I went to a couple of more dealers to try to get them to beat it by a couple of hundred more, I offered to buy the car right then and there if they would do $37000. Four dealerships let me walk, they did offer $37400. I just went with my original dealer since they are local to me and gave me the best price up front. I was willing to buy from another dealer for $500 more off but for $100 I didn't want to switch.

    Thanks again to redhad381 for his breakdown. It came in handy when I leased my car. Hopefully, others could get a great deal on this car.
  • moolmanmoolman Member Posts: 129
    The only reason I can see why they won't offer you the 9 MSD's is because they don't feel like it. There's no Lexus Financial rule that prevents you from taking the low money factor and the 9 MSD's. I suggest you either convince them to do it or go to another dealer if you can.

    Like Redhat381 said, where else can you get an almost 15% return, tax free. It's a great deal.
  • realtor3realtor3 Member Posts: 4
    I just leased an 07 RX 350 from South East U.S. and the dealer claimed that I cannot use MSD in "Dec to Rem" deal. I had to talk to the GM of Sales to get the right answer, which is yes obviously.

    However, I was never told about getting "interest" on the MSD's? Does it have to state on contract regarding the interest, or should I assume Lexus Financial will give me the 15%?
  • redhat381redhat381 Member Posts: 26
    Dalballman1 -

    No problem. Hope you get a great deal.
  • redhat381redhat381 Member Posts: 26
    Realtor3-

    You don't receive any interest on the MSDs. MSDs lower your money factor, and thereby your monthly payments.

    The return on your investment is not any interest you receive, but your decreased monthly payment.

    Since people are naturally interested to know if this is a good use of their money, you can roughly convert the amount you save on monthly payments to interest you might receive if you had that money invested elsewhere.

    By the way, since the amount of security deposit depends on your monthly payment, the MSD amounts will vary for different people. And, that will change what the 'rate of return' would be.
  • realtor3realtor3 Member Posts: 4
    Redhat381-

    Thank you for the clarification. By me tying up about $4500 in MSD's, I lowered my monthly payments by $50 x 36months = $1800. Good return on invesment.
  • cpa3cpa3 Member Posts: 89
    Can any of you who have recently acquired or are working on a deal provide me with which dealers in the Orange County, Riverside, or Los Angeles County dealers they have found are the most willing to give a good deal. I have seen some mention Crown in Ontario and Longo....

    I live in South Orange County.
  • tonyrxtonyrx Member Posts: 2
    Since the 30k service is so expensive, would it make more sense to lease for 48 mos instead of 36? Kinda feel bad paying for this service for only 6 mos more use.
  • turquoise_e1turquoise_e1 Member Posts: 18
    cpa3, I bought my RX350 from Westminster past July. In my research, Westminster, Mission Viejo, Cerritos deal pretty aggressively in your area. They all offered below invoice and are within $300 of each other. I worked with their internet sales. Make sure you ask to see the out the door price before going to the dealership.
  • briegelbriegel Member Posts: 139
    I had a very good experience with the Internet Sales Dept. at Lexus of Riverside two years ago, and having the vehicle shipped to me in the Pacific Northwest. Give them a try!
  • mitokc135mitokc135 Member Posts: 5
    I just bought an AWD with Nav and paid $1,500 below invoice at Cerritos. I took advantage of the current lease program and applied 9 MSD to lower the MF. BTW, thanks to all who contributed on this board the past couple weeks….the info helped me make a pretty good deal without too much hassle.
  • sls1sls1 Member Posts: 45
    is there a standard acquisition fee with Lexus? I was quoted $600. What are normal lexus inceptions? Acquisition plus first plus tag and title?
  • moolmanmoolman Member Posts: 129
    Yes, $600 is that standard fee, if you read all the previous posts, everybody paid a $600 aquisition fee.
  • topgun7topgun7 Member Posts: 412
    Look like there is a lot of good deal to be have with RX. Does anyone has recent experience with bay area dealer? Is the lease deal anywhere near what LA area offer? I leased Lexus car before and used the 9 deposit and has good experience with Lexus financial.
  • friday4friday4 Member Posts: 3
    I have been following the forum message board and watching the posted deals from moolman and redhat which appear to be California deals. I have not seen any from the Southeast. I have been in touch with local dealer and took the figures of redhat as reference point. They indicated all the numbers looked good but that they were no where near the sales price of 37,500 in fact 42 is where they were. Is there that much of difference in the Southeast? I see Briegel had a car shipped. How much did that set you back for shipping?
    They are also saying I can not take my current lease and transfer to wholesaler without him first paying sales tax on it even though he has dealer license. Input would be appreciated on both issues.
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