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97038,515Car_manHost

Smart Shopper / Prices Paid Forums

1I began negotiations on an ES 350 today. I'm a 27 yr old woman and being nervous that I would be taken advantage of by the experienced salesman, I began my search through the dealer's internet sales dept. I emailed the model,trim,and options that I'm interested in. Each quote from the dealer was $1500 below MSRP. According to buyers in other areas, this is good, but I keep thinking of the invoice price, and I just don't want to pay that much. I counter offered with a price of 90% of the MSRP and figured we can take it up from there if needed. I am willing to pay no more than 95% of MSRP. My first question is, do you think this is reasonable of me, or am I wasting my time?

Second question: I plan to lease the vehicle for 36 or 39 months with 15k miles. Do you know the current money factor and residual values?

Third question: Once we settle on a price I'll bring up my trade in. I have calculated that I have $3,000 "negative equity". I am not interested in rolling this over to a new loan. I am willing to pay up to $1500 of it, but any suggestions on how to get the dealer to offer more for the trade? Selling it on my own isn't an option, as that's the only vehicle I have and I can't be without one.

Thanks in advance for your help.

72372828162007 Lexus ES350 4dr Sedan

24 mo/15k mi – Residual Value 66% of MSRP – .00245 Base Money Factor Rate

36 mo/15k mi – Residual Value 60% of MSRP – .00245 Base Money Factor Rate

48 mo/15k mi – Residual Value 50% of MSRP – .00245 Base Money Factor Rate

60 mo/15k mi – Residual Value 41% of MSRP – .00245 Base Money Factor Rate

36 mo/12k mi – Residual Value 62% of MSRP – .00245 Base Money Factor Rate

48 mo/12k mi – Residual Value 52% of MSRP – .00245 Base Money Factor Rate

60 mo/12k mi – Residual Value 43% of MSRP – .00245 Base Money Factor Rate

2007 Lexus ES350 4dr Sedan Ultra Luxury

24 mo/15k mi – Residual Value 66% of MSRP – .00245 Base Money Factor Rate

36 mo/15k mi – Residual Value 60% of MSRP – .00245 Base Money Factor Rate

48 mo/15k mi – Residual Value 50% of MSRP – .00245 Base Money Factor Rate

60 mo/15k mi – Residual Value 41% of MSRP – .00245 Base Money Factor Rate

36 mo/12k mi – Residual Value 62% of MSRP – .00245 Base Money Factor Rate

48 mo/12k mi – Residual Value 52% of MSRP – .00245 Base Money Factor Rate

60 mo/12k mi – Residual Value 43% of MSRP – .00245 Base Money Factor Rate

Enjoy

Slate

38,515If you were to lease this car through Lexus Financial Services right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00255 and 60%, respectively. The numbers for an otherwise identical 39 month lease should be .00255 and 57%. This is LFS' standard lease money factor for consumers who qualify for its top credit tier. It varies a little depending upon what part of the country one is in.

Your trade is worth what it's worth. If you are getting a good deal on your new car, there won't be much room for the dealer that you are working with to over allow on your trade. If you don't feel as though the price that you are being offered for your trade is fair, you can always sell it yourself or sell it to another dealer, like a local CarMax. You should be able to get an idea of your current vehicle's value 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".

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Prices Paid Forums

38,515Car_manHost

Prices Paid Forums

334forthill

1I was just wondering where you got these residual values. If you don't mind telling me the website you got them from, I would love to prove to my salesperson that the residual values she's been quoting me have been, as I suspected,low all along.

Surprise, surprise.

G

34forthill

1My cash is tied up in real estate so until I sell should I lease 24 or 36 mo. then pay cash to buy the car at the end of the lease? I keep cars for 5-6 years. 15,000 miles/yr.

Would I save more by financing 100% of the purchase for 2 yrs then paying it off?

Lease TermPurchase price: $39,000

Residual 24 mos. $25,740

Residual 36 mos. $23,400

Money Factor: .00245

Security deposit: $9000

34Thanks,

forthill

7236 Months

15,000 miles

MSRP: $43,788.00

Residual Value (60%) $26,272.80

Dealer Cost (Supposedly): $38,563.00

Selling Price: $39,763.00

Total Cap Cost: $40,363.00

Vehicle Mark-up: $1,200.00

Buy Rate (Money Factor): .00275 (I have been quoted .00265 elsewhere but not with the same numbers.)

Payment $574.64 + 8.25% Tax + $622.05

I know people don't recommend putting money down but maybe just a little would get the payment down even further.

Also, someone in another forum wrote this: (Let me know your thoughts.)

"One way to go is if your dealer allows you is to make multiple security deposits at signing. What I'm doing is leasing mine at cost, laying out around $5K at signing. $1,500 is out of pocket that I wont be getting back. The remaining money makes up 8 or 9 security deposits. These will be refunded to me when the lease is up. So basically by investing this extra money I will be lowering my payments by almost $100 per month, resulting in about a 20% return on my deposit. It's a good deal if you can afford to lay out the cash for the term of the lease. My monthly payments will be just above $400/mo."

I think that is enough Math questions for one day? (Brain overload) :confuse: LOL

592mark-up is. Maybe you could negotiate that

part out? Also, is this with $0 down?

7234*Or point me somewhere where I can view the user guide which I think has lease examples in it.

Thanks!

forthill

72http://www.edmunds.com/advice/leasing/articles/48365/article.html

It took me a while but I think I have master it. I also put it on a spread sheet so that it calculates the payment for me.

18On the lexus site the MSRP for the following is $37,690.00 (actually $37,685.00) and the TMV on Edmunds is $37,690.00.

The package is the Premium package which is

High intensity headlamps, heated and ventilated front seats, wood and leather trimmer steering wheel and shift know, bluetooth, FS spare, rear seat airbags.

The website includes a delivery process and handling fee of $695.00 to get to the $37,685.00. Price. What would a good lease deal be? Thank you.

7218I spoke to a dealer this morning. Offer was $589.00 per month with taxes in the payments. Car has premium package, sunroof pkg, park assist, wood/leather wheel/ rear A/B, wheel locks, cargo net and all weather mats for MSRP per him of $38,379.00. He told me the Net Cap at $37,579.00. TMV said vehicle would not go under MSRP. Think I also can get him down prob $10-15 per month to close the deal. Lease is 36 months, 15K miles

72Thanks for your response. I feel loved again. LOL

18721872So last time I chatted with you this morning, you were thinking of leasing the SUV. LOL What happened? You moved in pretty fast on that one.

Black on Black. Nice!

34Also, the residuals were to have gone up on July 1st.

forthill