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

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Comments

  • newbie39newbie39 Posts: 5
    I have recently inquired about a 36 mo/15k miles per year lease for a 2010 RX 330 with a navigation package. I am in the Tampa/St. Peterburg area and have received offers from local dealers with the following specs:
    Sale price: $46,900, $1500 down, payment of $809.00 . This was the initial offer presented to me at the dealership after test driving the car.

    Now, after doing my research, and sending inquiries via email, I did receive a more detailed offer which appears to be much more reasonable:

    Sticker price: $47,385.00
    Sale Price thru internet dept $42,980.00
    dealer documentary and prep charge $589, plus taxes and fees
    36 mo lease, 15k miles per year
    lease payments $626.13 incl tax with start up $1605.20 due at signing.

    I would greatly appreciate anyone's comments regarding this deal. Can I do better? This dealer is about 50 miles from where I live so servicing would be rather incovenient. I have dealt with the Tampa Lexus in the past but their internet quote was $658 per mo with $3k down -- ridiculous!
    Thank you for your comments.
  • valueguyvalueguy Posts: 208
    Call Lexus of Orlando. No doc fees and they will beat your other quote by at least $300. You will save at least $900 driving 2-2.5 hours. I think you can do even better but how far do you want to go to save another $500?
  • valueguyvalueguy Posts: 208
    Does anybody know how much Lexus financial charges a Tier 1 plus customer to pre-purchase extra lease miles? Acura charges 10 cents while Infiniti charges 12 cents. The local "stealer" told me Lexus charges 20 cents. Of Course, I don't believe him.

    Does any body know the cost of these miles? Car man?
  • newbie39newbie39 Posts: 5
    Thank you. I am going to try that tonight and let you know.
  • crubin23crubin23 Posts: 4
    Carman,

    Do you or anyone else know the residual on the 350 RX on a 36 month lease for 12k miles.

    Thanks,
    Cole
  • newbie39newbie39 Posts: 5
    Dear Valueguy,

    I followed your advice and got the following deal in Orlando on a 2010 FWD with navigation package:
    Sticker $47385
    Final Sale price of $42,900
    Offer: 35 payments of $$661.23 (incl tax)
    Nothing due at signing, first payment due 30 days from delivery.

    They told me that I can turn in my car (leased from Tampa lexus) to their dealership when I pick up the new vehicle and they will take care of any transfer papers without a fee.

    I can turn it in anytime before my lease expires June 10 and their price reflects the "credit for payment" towards the new lease - meaning that there will be 35 payments instead of 36, as I understand it.

    Do you think this is a good deal? It appears to be a fair price. If they are going to credit me my lease payment and basically give me the first month free, I am better off keeping my car until June 9 then picking up the new one. From some reason though, they wont just come straight out and say we give you one month free. Am I missing something>?
    Thanks again!
  • newbie39newbie39 Posts: 5
    I am in the Tampa are as well and looking to lease an RX 350 with the navigation. Did you get your lease worked out? If so, do you mind sharing the terms and where you got it? Thanks
  • king1721king1721 Posts: 1
    Hello everyone,

    I am getting confused by different money factor and residual information i got from 2 different dealers. I am interested in RX 350 AWD without navigation in St Louis. 36 month & 12,000 miles.
    Plaza Lexus - Money factor 0.00290 Tier 1+ , Residual value at 60%.
    Dave Lexus - Money factor 0.00220 Tier 1+ , Residual value at 58%.

    In some post i saw Money factor at 0.00190, are the dealers trying to scam?

    Thanks,
    king1721
  • onenrg1onenrg1 Posts: 6
    Nola2,

    I think you have received an amazing deal. I am looking at the RX with the very same features that you listed. Did you get it over the ML? My wife loved the ML but as you know, the prices are much more. If you can, please email me a few more details on the RX deal you negotiated. omars1974@hotmail.com
  • delta737hdelta737h Posts: 603
    edited May 2010
    king1721,

    Lease rates (money factors) and residual rates are independent of each other. One has nothing to do with the other.

    Residuals reflect the estimated wholesale value of the vehicle at the end of the lease. Finance captives (e.g., LFS) will often inflate residuals for competitive reasons. The residual factors are established by the fund provider (or their residual insurance carrier in the case of banks) and so the dealer has no control over these. I see that you were quoted residuals of 60% and 58%. You may want to get some clarification. For example, both appear to be 36 month residuals. However, the 60% may be for 12,000 miles while the 58% may correspond to 15,000 miles.

    Residual factors are computed based on a given level of mileage usage. Some fund providers will "adjust" the resulting residual value for different mileage requirements. So, if 60% reflects 36 months and 12,000 miles and, say, you desire 15,000 miles, then the residual value is adjusted downward at some predetermined cost per mile. In other words, you prepay the additional mileage which is reflected in the "adjusted residual value". For example, suppose you desire 15,000 miles and you prepay the additional 9,000 miles (3 year lease) at the rate of $0.10 ($900) and that the 60% residual factor produces a residual value of 20,000, then, the adjusted residual value amounts to 19,100.

    Money factors reflect the cost of money. The buy rate (0% reserves) is 0.00190. The money factors you were quoted appear to be packed with reserves which are similar to points paid for a mortgage loan. A 1% reserve level means, roughly, that the dealer is compensated 1% of the adjusted cap cost (less acq. fee if included in the gross cap) for writing the lease at a higher money factor (e.g., 0.00220 or 0.00290). For instance, the 0.00220 money factor may reflect a reserve level of 1% while the 0.00290 money factor may correspond to a 3% reserve level. Lease rates (money factors) are usually tiered (e.g., 0.00XXX + R% reserves). Always ask for the base rate or buy rate which is the money factor associated with 0% reserves.

    This may be much more than you really wanted to know but, that's just me being me. Anyway, hope this helps.

    John
  • asnf1asnf1 Posts: 1
    Hi Nola2

    You are right. I got the same run around from Stevens Creek and Fremont. Stevens Creek is not responsive at all and Fremont wanted me to come in before they give me any info. What is the point of having an internet department? If I wanted to come in and drive the car I would have already done so.

    What I ended up doing is turn in my E350 lease and get an ML350. All I did was send out an inquiry and Tim at Beshoff was very responsive and gave me a great deal.

    I don't understand all this BS that bay area lexus dealers are doing.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Nola2, Lexus Financial Services' current buy rate lease money factor for a 36 month lease of a 2010 RX 350 is .00190 for consumers who qualify for its top aka "Tier 1+" credit tier.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi valueguy. I don't know the exact excess mileage penalty that Lexus Financial Services charges. Here's the section on excess mileage charged from its website:

    Excess Mileage Charge
    Leases generally contain a mileage limitation on mileage and resulting excess depreciation of the vehicle. A set mileage allowance is disclosed in a LFS lease agreement. If this limit is exceeded, the lessee is charged for each mile driven exceeding the allowable mileage, as disclosed in the lease (e.g., $0.15 per mile). However, if at lease inception, you feel you will be driving more than is set forth in the lease, you can add the anticipated excess mileage (at $.10 per mile) to your lease to be paid as part of your monthly payment.


    Those example prices are low though. Surfing around the web, it appears as though LFS charges $0.25 per mile for leased vehicles that are returned with excess mileage. Using the same ratio that LFS used in its definition above, a $0.05 reduction for excess miles paid for in advance, you probably would have to pay around $0.20/mile.

    Again this is just a guess, but it's a pretty good one if I do say so myself ;).

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi crubin23. Here's the information that you're looking for. Lexus Financial Services' May buy rate lease money factor and residual value for a 36 month lease of a base 2010 RX 350 AWD with 12,000 miles per year are .00190 and 60%, respectively for consumers who qualify for its top aka "Tier 1+" credit tier.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • onenrg1onenrg1 Posts: 6
    I was offered this deal, which is the best one I was able to get:
    36 months/10,000mi
    61% Residual = $28,757
    MSRP $47,153 Nav, Prem, Comfort packg
    Invoice: $42,400
    Negotiated: $42,900
    Drive Off: $1,842
    Monthly Payment: $530 + Tax

    The dealer couldn't find my color combo anywhere and found one with a slightly higher MSPR because of the additional cross bars but said they would give me the same monthly deal. What do you guys think. It sounds about right. Been trying to match Nola's deal but no one wants to come close. Anyone think that I should wait to see about June incentives?

    thanks,
  • shellvilleshellville Posts: 9
    Freeman Lexus - Santa Rosa:

    MSRP: $49,044
    Dealer: $44,228

    Price: $43,121.32
    Lease: 48 mos
    15,000 miles
    MF: 1.9 (.0091)
    Residual: 49% ($24,031.56)
    $1990 .47 down (includes: 1st payment $573.88, sales tax $69.84, 1st year fees $591.75, other upfront $755 )

    Package Includes:
    Comfort
    19" wheels
    Navigation
    Premium
    Two Prep
    Accy Pkg
    Cross Bars

    I was told that I am paying $1,000 under dealers invoice, but, have a feeling they are making it up in the down payment. I don't have a lot of experience at negotiating, so, want to make sure I am not leaving anything on the table. Can anyone share their expertise with me? Thank you
  • shellvilleshellville Posts: 9
    can you respond, please?

    thank you
  • shellvilleshellville Posts: 9
    when and where did you get a quote of $41,350? i got a quote just yesterday of $43121.32. thanks
  • Hi, can someone tell me if this is a good deal- I got a lot of internet quotes from dealerships around the new york tri-state area and the best initial quote i received has been

    2010 RX350 AWD
    MSRP $47,625
    36 month, 12k/year
    $1717 drive off, includes dealer fees(~$800)/dmv fees(~$300)/first month
    $578/month (with taxes included)
    60% Residual, Money factor of .00190

    Options:
    -Premium (PM)
    -Comfort (CP)
    -Navi (NV)
    -12spkr (EK)
    -Tow Package (TO)
    -Preferred (Z1)
    -Wood/leather trim (WU)
  • faf_01faf_01 Posts: 6
    I am also shopping around, but the best deal a get for similar car is $560 a month before taxes - drive off is the same.

    where is the dealer (which quoted you ) located?
This discussion has been closed.