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2013 and earlier Lexus IS 250 / IS 350 Lease Questions

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  • Hey, gang,

    I visited local dealership here in NJ this weekend and took IS350 F Sport for a spin - great machine. Was not going to buy it yet as trying to see if other vehicles are better or not as well as see what other dealers propose. But ended up getting what seems to be quite an interesting offer. Here are some details:

    Base MSPR: 41,700
    Blind spot monitor: 600
    F Sport package: 3,180
    Nav package: 2,085
    Cargo Net: 64
    Wheel locks: 73
    Total Optional Equip: 6,002
    Delivery and Handling: 895
    Total MSRP: 48,597

    0 down, 36 month, 10k/yr.
    Monthly payment: $440 (not sure if taxes are included or not yet)

    First of all - does that base MSRP ($41,700) looks right to you, guys?
    Secondly - this monthly payment seems to be quite low, however the car itself is not brand new - it has about 6k miles on it. Salesman mentioned couple times that it is "executive vehicle". I assume some big boss was driving it but then turned it back in and now they need to re-lease it again as it is still relatively new.

    Do you have any recommendations about this deal - "deal or no deal" as well as about overall idea of leasing a car with more than 10 miles on it from get go. They mentioned that I will still have 10k/yr allowance and everything else like it would have been brand new car.
  • Wow, that is probably the best deal I have seen on this forum so far... Nicely done!

    Could you please share some more info about your deal? I'm looking for EXACTLY the same car. I wonder if you rolled in all fees into monthly payment or you paid them at the closing table? And what were they?
  • I'm looking to lease an IS 350 F-Sport this weekend. Like any lease, my goal is to put minimum to no money down. I wouldn't mind paying first months payment since I have to pay that sooner or later but these title/registration/doc fees are stacking up even more than the first months payment. So my question is, ideally, how much is the typical title/registration/doc fee in the state of California? Right now, based on what the dealer is telling me to pay up front which is around $1100 (first month + title/reg/fee) I'm getting around $600 in title/registration/doc fee? Does this look right to you guys or is the dealer trying to make some more money off this lease?
  • steevosteevo Posts: 331
    edited October 2013
    This car is a DEMO with 6000 miles on it. Assuming that payment includes TAX at 7%, it looks to me like they are knocking 5500 off the MSRP.
  • So... do you think it is OK to lease DEMO model? Or does it have some complications I should be aware of?
  • steevosteevo Posts: 331
    Thats your call! If you think its a good enough deal versus a new one, and have no issues with any wear on the car, go for it. Just keep in mind that any service or maintenance type of things you may require, lets say tire wear, brakes as examples, will occur sooner than they would have.
  • ddavydenkoddavydenko Posts: 12
    edited October 2013
    After negotiation with another dealership got this quote (on new vehicle, not DEMO model):

    IS350 AWD FSport + Nav + Blind spot monitor
    MSRP: 48,864
    Inception fees: 1,400 (includes 1st month payment)
    MSDs: 3,600
    27 month, 10k/yr
    $387.93/month

    Figured I will go with 27 months as higher residual results in much lower monthly payment. Thinking about taking this deal.

    Do you guys think it's a good idea or it is much worse than what is called a "good deal"?
  • steevosteevo Posts: 331
    Looks good to me. Better deal than the demo. You can still roll the tax in and just pay first and dmv up front.
  • Squeezed a little bit more and got another $300 discount from them. Final offer is this:

    IS350 AWD FSport + Nav + Blind spot monitor
    MSRP: 48,864
    Inception fees: 1,100 (includes 1st month payment)
    MSDs: 3,600
    27 month, 10k/yr
    $387.93/month

    Going to pick up vehicle on Sat.

    Negotiating with dealerships is not the witch craft, but it is not an easy walke either. Piece of advise: do not bend too early; execute all possible options (even over color - that what gave me final $300 discount). Do not fall for any commitments they ask you to provide (like credit card deposit to "hold a car for you") - you do no owe anything to dealer until you sign papers. Good luck!
  • Looks like a great deal to me!! The MSD's are really needed on this car since the money factor is terrible. When I went in there just to BS and work on preliminary pricing, an AWD IS250 with a MSRP of about $42k was offered to me for 27 mo 12K/year at $460/month. I didn't think they would come out of the gate with a rediculous offer considering I told him the money factor and residual. I had calculated an estimated price myself of about $370/month, I was hoping he would be near that and then we could work from there. With the $460 I got up and told him I was not interested. Didn't even try to stop me.
  • During my research and experience with dealerships I came to a conclusion there are two types of dealers: margin dealers and volume dealers. You probably visited former one. Obviously you need to look for latter. I would also say that stopping by to face dealer might not be a good tactic, they are pros and selling for life. It is quite difficult to out-negotiate them on the spot, even for initial starting price. Maybe you want to try and negotiate with them over email - this way you have enough time to think about your every step and craft your negotiate statements in a proper way, without being stressed sitting in front of salesman who is pushing (almost all of them are pushing one way or another) to close a deal on his terms.

    Also I've heard from one of the dealers that they are getting orders from as far away as 1000 miles - because ppl in less dense areas don't have leverage over dealers due to the lack of ones.

    Main lesson I picked from experience this time: from now on there are only two ways I'm coming to dealership - to test drive a vehicle or to sign papers for already negotiated deal and pick the car up!

    Feel free to PM with questions - I will try to do my best to help fight dealers. I just don't like them, so willing to put time in fighting them when necessary :)
  • For the first time I am going with a lease on a vehicle. I have negotiated a 250 F sport with nav down to $3k off MSRP with an OTD price of $44k. Compared to the numbers I am seeing here my offers seem way off. It looks like the MF is .0013(what I've read here. Thank you all)and I know how to calculate that to an interest rate (multiply by 2400?).

    For 36 months and 15k miles the price is $621 per month with $1k down. Something does NOT seem right! Please help me demystify this!
  • ddavydenkoddavydenko Posts: 12
    edited October 2013
    I'm not sure what is the residual % on this vehicle with that many miles. On my deal (IS350 AWD F Sport) with 36 months and 10k/yr it was 65%. I assume on 15k/yr it will be lower than that. According to your numbers here is the calculation I got:

    MSRP $47,000
    Residual 0.65
    MF 0.0013
    Invoice $44,000
    Incentives $0
    Net Cap cost $44,000
    Residual value after 36 months $30,550
    Fees $1,000
    Monthly BASE payment $401
    MF portion $97
    Tax portion $35
    TOTAL Monthly payment $533

    If we lower residual to 60% that will cause higher payment:
    MSRP $47,000
    Residual 0.6
    MF 0.0013
    Invoice $44,000
    Incentives $0
    Net Cap cost $44,000
    Residual value after 36 months $28,200
    Fees $1,000
    Monthly BASE payment $467
    MF portion $94
    Tax portion $39
    TOTAL Monthly payment $600

    Here is the link to calculator I created to help with this. It is not the best, but at least gives you a general idea: http://bit.ly/1asLCSQ.

    BTW, I'm using NJ sales tax which is 7%. feel free to modify it to your state.
  • Thank you! One quote I got gave a residual of .65 for 3 year 36k miles. That payment is $556 for the same vehicle. MSRP of 43k negotiated to 40k. Is the sales tax only supposed to account for the difference between price paid and residual value or the entire agreed upon price?
  • Yes, you are correct. AFAIK taxes are calculated against amortized price of the vehicle: Selling_Price * (100% - Residual_Value_%). I read about that here: http://www.edmunds.com/car-leasing/calculate-your-own-lease-payment.html.

    Also, keep in mind that initial quote has nothing to do with the final deal you will arrive at given you maintain composure through negotiation process. Best of all would be to find two "volume" dealers and put them against each other. "volume" dealers are usually with the huge stock of vehicles, located on major highways near/in your city/town.

    HTH :)
  • kyfdxkyfdx Posts: 28,057
    Taxes can be figures 3 or 4 different ways, depending on the state, and the resulting amount can vary widely..

    All depends on where you are registering the vehicle.

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • What is the current mf and residual for IS250? .0013 and 65% for 3 yr/45k?
  • kyfdxkyfdx Posts: 28,057
    2014?
    I show the 3yr/45K residual at 63%... .00130 for the MF

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • Hi Ddavydenko,

    Does that monthly payment include all Taxes, do lease payments usually include Personal Property taxes?
  • Yes, those payments include every single payment I need to make, taxes (sales tax I mean) as well. Not sure what you mean by Personal Property taxes - I don't think NJ or CA (where I used to live) have such thing, maybe that's why I don't know. Better check with your local state.

    Those payments I specified were the only payments I needed to make to drive vehicle off of the dealership yard. Then you would need to put insurance on a top of it which in NJ came out as almost $600 for 6 months.
  • I am in New Jersey as well can you please tell me what dealership gave you this deal. You can contact me at jwall34943@gmail.com your help would be greatly appreciated.

    Cheers, Jwall
  • speedytlspeedytl Posts: 3
    edited November 2013
    This forum is amazing! I'd like to thank everyone especially the hosts for providing such useful information so that buyers are well informed. Keep up the good work!

    I am interested in leasing a 2014 IS 350 F SPORT AWD model. Can you please provide the residual percentage and money factor for November pertaining to a 10,000 miles per year lease lasting either 27 or 36 months?
  • kyfdxkyfdx Posts: 28,057
    edited November 2013
    .00130 MF and 65% residual.. 36mo, 10K/yr

    Those numbers are good through November 14th

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • speedytlspeedytl Posts: 3
    edited November 2013
    Thank you, kyfdx! I presume then that the residual percentage goes to 74% for a 27 month term with the same mileage limit?
  • kyfdxkyfdx Posts: 28,057
    73%

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • Excellent - thanks again, kyfdx! I thought for some reason that 73% was for 12,000 miles and not 10,000, so I added 1% extra...
  • jlax3jlax3 Posts: 6
    What is the November money factor and residual for IS350 RWD for 3 yr/45k?
    I'm trying to figure out the lease numbers on a configuration totaling $45,045 MSRP.
  • kyfdxkyfdx Posts: 28,057
    2014 IS350 RWD 36mo, 15K/yr lease
    .00130 MF and 62% residual

    Numbers are good through November 14th

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • How do you determine the residual value? When looking at lease guide.com, it shows me that the residual value for a 2014 Lexus IS 250 AWD with MSRP $45,893, 12k miles/yr, 36 mo is 47% of MSRP.

    Your number is obviously much better so I'm hoping you can explain how you determine it and how I know which number to go with.

    Thank you!
  • How can you find out if a dealer is a volume or margin dealer, so you can be sure to shop the volume dealer?
This discussion has been closed.