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2013 and earlier Lexus IS 250 / IS 350 Lease Questions

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  • Hi trini305. Lexus' "December to Remember" sales event has more impact upon vehicles' money factors than it does on their selling prices. During this annual promotion, Lexus usually provides more attractive lease money factors than normal on its vehicles. There is usually not any cash component to this program that would enable you to negotiate a lower selling price than normal. Dealers may be slightly more willing to discount vehicles during the promotion, but I wouldn't count on getting a much lower capitalized cost for a lease than than you would be able to get now. The interest that you pay on your lease, aka the money factor, will just be lower. You may be able to get an idea of what sort of price you can negotiate on this car by stopping by the following discussion: "Lexus IS 250 / IS 350: Prices Paid & Buying Experience".

    I can't tell you what sort of lease payment to expect through the "December to Remember" event until Lexus officially provides its dealers with its details. Please feel free to check back with me after the program starts, probably around November 22nd or so, and I will be happy to tell you exactly what the new program is like.

    Car_man
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  • Hi pravinm. .00350 is waaaaaay too high a money factor to pay on this car. Lexus Financial Services' current buy rate for Tier 1+ customers who lease it is currently less than .00300. I believe that it varies by region, but it should be more like .00275. Not only that, but I expect this car's factor to get better when Lexus introduces its new lease program late this month. I definitely would not go for this deal if I was in your situation.

    Car_man
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  • Hello Car Man,

    It appears that the "December to Remember" event has started. Any information about the new money factors?
    Thanks!
  • I was recently looking at the IS350 and asked about when the December to Remember financing would be available. The sales rep told me that they were available now (don't know how long that has been in effect) and that there would be no incentive leases for the IS350 and the financing rates for great credit would be 6.99%. My guess is one can easily beat that financing rate out in the open market.
  • I need others opinion.
    I got a price for an IS250 AWD for the Decemeber to Remember sale of $483. My lease for the car I have now isn't up until March. So I would get the IS in the end of January (still with the december to remember deal) & I would have to give back my current car early (paying for 2 months even though I'm giving it back early).

    Do you guys think I should get the lexus & give my car back early or just wait until March to get the lexus?

    I'm a little worried that I'm not going to get the same money factor in March and I'm going to wind up paying more money.

    Thanks!
  • 2 months ago I leased a Nissan Maxima but now I realize that the car I really want is the IS 250. How should I go about it? My lease payments go to the Nissan Motor Acceptance Corporation... Does this look bad on my credit report? What options should I expect the lexus dealer to give me and what do you think this exchange will cost me?
  • I was just quoted the following for a 2007 IS250 AWD:

    36 month lease, 12k miles per year
    Money Factor: .00265
    Residual: 60%

    Is this a good deal for the "December to Remember" event? I've read elsewhere that people were getting the .00265 money factor before "december to remember".
  • topgun7topgun7 Posts: 409
    "Does this look bad on my credit report? "

    No, it won't. But you may be out of a lot of money. First, you call Nissan Motor Acceptance Corp to find out your pay off amount. Then you can either sell the car on your own or trade in your Maxima. You will lose out on the difference between you cap cost and the used car trade in value. It can be a few thousand dollars.
  • You are correct, mudfud. The "December to Remember" sales event started on November 14th. Through this promotion, Lexus Financial Services' current buy rate lease money factor for the 2007 IS 250 and IS 350 is .00225 for consumers who qualify for its Tier 1+ credit tier.

    Car_man
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  • Hi chrisd701. While the "December to Remember" sales event often provides very attractive deals on select Lexus models, the support that is available on the 2007 IS 250 isn't that great. Its special lease money factor for this car is currently .00225 versus its standard money factor which is probably around .00275. These money factors are equivalent to interest rates of 5.4% and 6.6%, respectively. I would be happy to calculate what the difference between your car's lease payment would be with and without the special December rate for you if you provide me with this car's MSRP and selling price. This will give you an idea of exactly how much this special money factor saves you per month.

    Car_man
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    Prices Paid Forum
  • Hi carlos76. As long as you do it properly, getting out of a lease early will not have a negative impact upon your credit report. Unfortunately, having said that it is usually fairly expensive to get out of leases well before their scheduled end dates. In order to do so, you need to purchase the vehicle that you are currently leasing from the bank that you are leasing it through. It often turns out that it costs more to do so than your vehicle is worth on the open market. Furthermore, many banks expect consumers who end their leases early to still make all, or at least the depreciation portion of their remaining lease payments. As you can see, this can get very expensive.

    You can determine approximately how much it will cost you to get out of your current lease by comparing its purchase price to its value on the open market at this time. You should place a call to the bank that you are leasing your vehicle through to find out its exact price. Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". Don't forget to check to see if you are still on the hook for your remaining lease payments. The difference between your leased vehicle's current value and how much it will cost you to buy it plus any remaining lease payments that you are obligated to pay will equal the cost of getting out of your lease right now. You may find that you are better off waiting until you are closer to the scheduled end of your lease to get another new vehicle.

    Car_man
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    Prices Paid Forum
  • Hi kingsbury14. The residual that you were quoted for this car is right in line with Lexus Financial Services' published value. However, the money factor that you were quoted is a little high. LFS' "December to Remember" buy rate lease money factor for the 2007 IS 250 AWD is currently only .00225 for consumers who qualify for its Tier 1+ credit tier. Make sure to have your dealer use this factor to calculate your car's monthly payment.

    Car_man
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    Prices Paid Forum
  • mldj98mldj98 Posts: 378
    I have never leased a car before but am thinking about it.
    I have a few questions, please excuse, just trying to increase my knowledge....

    I assume you can haggle on the price of the car first, right?
    Once you establish a price, then you go into all of the details of the lease correct?
    This is where I get lost.....I have excellent credit, score is around 800.....what type of deal should I be looking for during this sales event? How many years is an average lease?
    What kind of money is needed to put down on this purchase?
    How many miles a year is average on a lease? Can you ask for more without paying more? What is a residual payment?
    Last question, what advantage if any is there to leasing?
    Thanks for all input, it is much appreciated!
  • from_flfrom_fl Posts: 113
    If you can't afford the car please don't even try lease it.
    It is not a wise move.
  • Thank you for all of the helpful info. on this site.

    I live in the Las Vegas area where there is only one Lexus dealership. I have reasonable access to Southern CA and Utah so going to either place for a vehicle is not an issue. I currently drive a 2004 Infiniti G35 Coupe (Premium Package) with an expiring lease. I was considering a G35 Sedan although I have heard great things about Lexus so I test drove the IS 250/IS 350 models. I like the IS 350 more and would like to start negotiating. I do not believe that I want the nav and want upgraded seats with either the luxury or sport packages.

    My questions are as follows:
    1. Is the IS 350 superior to the IS 350?
    2. What features are must-haves with the car?
    3. With what dealers should I start negotiating for my lease and what should I be offering?

    I realize that some of these are broader questions and hopefully as I learn more, I will get more direct with the questions. Any help you can provide would be most beneficial as I move forward with this process.

    Thank you,
    Eric
  • edrnedrn Posts: 17
    Recently visited a Baltimore Lexus dealer for the IS250 AWD.
    First quoted me MF of .00315(I have excellent credit) then lowered to .00250 saying the dealer buys the rate (probably not true) A few questions:
    1. What is the MF being offered now through Lexus Fin. Service?
    2. In Maryland, are sales tax added on the full sales price of the car.
    3. I was quoted:
    IS250 AWD w/ HID package
    36,000
    Residual value of 18,400
    36 month lease with MF .00250
    $563.00/month
    No out of pocket except obviusly first payment.
    Not sure if this included $600.00 acq. fee.

    Is this a good deal. Some I spoke to said they thought this was the best I could get.
    Also looking at BMW 328XI, I have a 330XI now and the IS250 seems a lot slower on pick up. I know the engine is smaller on the IS250 but are the cars comparable?
    Thanks. I've learned so much from this forum.....
    Forever grateful
  • edrnedrn Posts: 17
    Does anyone know the money factor offered by BMW and Lexus right now?
  • Seems like BMW has better money factor than the lexus.
    I thought all along that I was gonna get a 335 until I used their Nav, and compared to the Lexus Nav, its like DOS to Window. But looking at some of thepost, either Lexus has horrible MF or BMW has super MF
  • Greetings mldj98. 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.

    In answer to your specific questions, yes the selling prices of leased vehicles are absolutely negotiable. Make sure to negotiate as low a selling price as you can on the new IS that you are considering leasing then have the dealer that you are working with calculate its lease payment using Lexus Financial Services' buy rate lease money factor.

    Most leases are 24 to 48 months long. Generally speaking, the shorter your lease is, the higher your monthly payment will be. I usually prefer to lease for 36 to 39 months. This is a nice length because it is long enough that your monthly payment will be reasonable, but too long so you won't get sick of your vehicle.

    Consumers can and should lease any vehicle that they are interested in without making any sort down payment. Consumers who make large down payments on vehicles actually risk losing them if their vehicle is totaled in an accident or stolen and never recovered. At lease signing, you will have to pay your car's first month's payment, Lexus Financial Services' $600 acquisition fee, and any required state taxes or fees. I believe that Lexus Financial Services will waive its security deposit requirement for consumers who qualify for its top credit tier, as you should judging by your credit score.

    Leases usually allow 10,000 to 15,000 miles per year. Most consumers go with 12,000 or 15,000 miles per. Which option you choose will depend upon how many miles you typically put on vehicles. The higher your vehicle's mileage allowance is, the higher its lease payment will be.

    Your vehicle's residual value is used to calculate the depreciation portion of your monthly payment. It is also used to calculate your vehicle's lease-end purchase option price.

    Car_man
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  • Hi Eric. You should be able to answer all of the questions about which model is better and which options to choose by visiting the following section of the Edmunds.com Forums: Edmunds.com IS discussions.

    Car_man
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  • Hi edrn. While they weren't initially telling the truth, eventually the dealer that you are working with did. In your area, Lexus Financial Services' January buy rate lease money factor for the 2007 Lexus IS 250 AWD is indeed .00250.

    I am not personally familiar with how sales tax is calculated on leased vehicles in Maryland, but you may be able to find out more information on this subject by visiting the following sites: Maryland Motor Vehicle Administration or Comptroller of Maryland.

    You never mentioned the selling price or MSRP of the car that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this car's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to give you my opinion of this deal if you let me know what these numbers are.

    Car_man
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  • Hey edrn. I have seen BMW's and Lexus' current lease programs. I would be happy to give you an idea of what they are like if you tell me the exact models that you want, how long you want to lease them for, and how many miles per year you need to be able to drive them.

    Car_man
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    Prices Paid Forum
  • I am also comparing the two, 328 sedan rwd vs. IS250 rwd
    thanks car man
    I just got a 07 X3 and this site was a great help
  • Anybody know if Lexus dealers have a limit to how much they can mark-up MF?
  • Car_Man or anyone else who could help, I'm looking to get a top end is 350 with an msrp of 42k. It would get hit by AL tax of ~2%. The Nashville dealership I went to took 1k off the price and got down to a monthly rate, on a 36mo lease with 15k miles, of 750 / month (they started a 12k lease at 860 / month). I tentatively agreed because I was a complete newbie when it came to car leases. Now that I've done some homework I'm seeing just how much the dealership was taking me for. My credit is top notch and I can't imagine I wouldn't qualify for the .0025 money factor. So my other question would be, when I deal with dealerships in the future (I'm just going to pull out of the deal with the local dealer and work with one in a different region), what residual rate should I take into account on the IS 350?

    BTW, the BMW dealerships down here are going at a .2292 money factor.

    This site is a real life saver. Thank you all for contributing.
  • I think current 36mo/12K residual is 57%

    I'm sure 0.2292 must have been a typo, but I'm not sure what you meant. I assume you're talking about the 3er since that's the IS's closest competition

    0.0015 is buy rate on a 335 sedan
    +0.00015 if you elect not to pay security deposit up front
    +0.00035 if you elect not to pay acquisition fee up front
    +0.0004 is the maximum mark-up BMW dealers are allowed
    0.0024 is the maximum it could possibly be

    buy rate or close to it isn't hard to get, plus 335i residual for 36mo/12K is 63%

    in other words, take another look at BMW. By my calculations a $49K 335i leased for almost $100/month less than a $46k IS350 if they charge 0.00019 (max if you pay your fees), and WAY more if you get them close to buy rate.
  • rxkerxke Posts: 154
    HI CARMAN
    What is the money factor and residual for the IS250 AWD in NY with 15k per year and 36 or 39 months. I appreciate any help you can give me.

    Thanks
  • Hey Eric

    I also live in Las Vegas but moving to California shortly. With only the one Lexus dealer in town there is very little negotiating; however, there is a very simple answer: do what I did - go to Lexus.com and pick out five or so Lexus dealers in the LA area - tell them exactly what you're looking for and whether it involves financing - leasing - or cash --- you'll wind up getting the car at invoice or below and saving at least a few grand over the Las Vegas Lexus dealer. I am flying over next week to pick up my car - I got it for $1000 below invoice and the airfare was $50 - not bad and there is just a 3 hour drive back home!
  • A dealer in Tennessee recently tell me that the buy rate for an IS350 was .00275 for Top Tier (730+) credit. I thought that the published buy rate (.00255) was Second Tier (690-720) and that Top was .00245. I suspect this dealer's just trying to slip more mark-up past me. Can anybody clear this up?

    This kind of confusion is why tiered systems are stupid, I'd just like to say :)
  • I walked out of the dealership yesterday after being offered $2750 down and $511 a month. The selling price was $36,000 they said the money factor was 2.65 which I'm assuming is .00265 and a residual value of of .59%. The MSRP was $39072.00 Its for a IS 250 with NAVI, 17 inch,I believe the premium package, I would rather have rear wheel drive with 18 inch and NAVI but I was told you can't get that in the north east, I live in northern VA. Any advice on getting a better deal or was the one I "negotiated" any good?
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