Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!





2013 and earlier Lexus ES 350 Lease Questions

18911131429

Comments

  • wrinniwrinni Posts: 4
    I am trying to lease 08 ES350. From what I'm seeing on this forum, I think it's not a great deal. I think I should be in tier 1, my credit score is over 750. The lease is for 36 months with 10k a year. No money down, first month payment, they're asking for 525+ tax. Does that seem right? The dealer also told me that there are other additional charges like 600 bank fees and 638 doc and title fees. But I still think the payments are very high. Thank you for your help.
    MSRP 37520
    Cost 33785
    Residual 53%
    Money Factor .00150
  • qkslvrqkslvr Posts: 34
    CarMan, I am trying to lease a 08 ES350 with the Ultra Package. Current offer is:
    MSRP 45225
    Cap Cost 42970
    Money Factor .0020
    Residual 52%
    10K miles / year
    36 month lease
    tax credit (eliminates sales tax)

    I feel the money factor is too high, but I called another dealership and was told the same rate.The Houston dealers seem to be aligned in their pricing, rates, etc. Are these the current rates?
  • scoot84scoot84 Posts: 21
    Hi all,

    I am in the process of trying to find a deal on an 08 ES 350 for my wife. I have engaged a few local NJ dealers via the internet. I basically asked them to furnish the current money factor and residual based on 3 year and 36k mile lease. A few of them told me the august MF and residual would be coming out on the 24th (today.) If you get word of what the new MF and residual are can you post it here asap.

    I greatly appreciate this forum as I used it to lease my MDX at dealer invoice. If it weren't for this forum I know I would have been robbed.

    Regards,
    Scott
  • qkslvrqkslvr Posts: 34
    OK, I just got back from leasing the 2008 es350 with Ultra luxury plus ML audio and accessory pkg.
    MSRP 45225
    selling price 41450 ($3775 off MSRP)
    tax credit (saved $2580 sales tax)
    money factor .00125 (quoted .00165)
    residual 51% 10K miles /year $23064
    $1000 down / payments $599 36 months

    Residuals are the same as earlier in July.I tried to use MSDs to buy the rate down, but they said no multiple security deposits on the promotional rates.
  • bonurabonura Posts: 2
    I am trying to lease an ES350 and am just not sure how good of a deal this is based on other postings. Similar to posting #319 I too am doing a deal on a Ultra Luxury package with ML audio and satellite radio with almost identical MSRP of $45,224, sell price $42,724 is $1200 higher and my residual is lower at $21,700, AND I do 15,000 miles a year not 10K. So, this is a factor. Speaking of factors I don't know the MF they are using. Nothing down...don't see the point on a lease except to lower the monthly note...anyway, the monthly note quoted to me is $778. This is significantly different than $599 in the other post but I have nothing down and more miles factored in. So, is $778 a decent deal or not? Are the $178 more worth the extra 5K miles and $1000?
  • scoot84scoot84 Posts: 21
    Just as an FYI...the money factor and residual I am being quoted in NJ are .00065 and 52%. That is based on 36 month and 12k / year.

    The money factor is fantastic, but the residual in my opinion is ridiculous. If you look at just about any car that I consider to be in its class ie: MB C300, Audi A4, BMW 328, Infiniti G35/37 they all have residuals of 56% and upwards of 59%.

    I know we rarely will get a money factor as low as .00065 and a residual at 56+%, but 52% in my opinion is insulting.

    I had a discussion about it with a salewoman at a local NJ dealership. She was ranting an raving about how much more u get with the es350 than any of the other cars I mentioned and how much better the car is in general. I asked her how then is it that the car loses on avg 5% more to depreciation than the other "inferior" vehicles. She didn't have much of an answer other than...u clearly like the car or you wouldnt have inquired.

    I can not buy / lease a car if I feel like I am being swindled simply because everytime I see it or drive it I will be annoyed by it.

    Has anyone ever had an experience where they were able to get the dealership to raise the residual or am I stuck to try to negotiate under invoice to make up for their unrealistic residual?

    For anyone that thinks I am being over sensitive go to a local lexus dealers website that will show their pre owned inventory. If they have a 2006 es330 (no nav) with roughly 36k miles I bet it will be for sale at roughly 27k. That car had a sticker of 35k. That is a residual of 77%. They are simply making a ton of money on the resale. I am all for them making money on the cars...but thats too much for me.
  • kyfdxkyfdx Posts: 29,094
    Residuals are set by the leasing bank. The dealer has no control over them, or authority to change them.

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • scoot84scoot84 Posts: 21
    Thats pretty much what I thought. I guess I will have to get the car under invoice or walk away from it. The good news is the 09's are coming and the dealership I am working with has a ton of 08 es's on their inventory lot. They must have a minimum 50 es's that I imagine they want to unload as many as possible before September. I'll keep everyone posted as to whether I can pull off a sick deal or not.

    Thanks for the quick feedback.
  • qkslvrqkslvr Posts: 34
    The extra $1000 down affects your payment by approximately $27/month, and the $1000 higher selling price affects you another $27/month . The issue you have is a lower residual (48% for 15k miles ) versus 51% for 10K miles and the money factor that you were not quoted. Looks like money factor can be anywhere from .00065 to .0020, which makes the interest component of your payment swing anywhere from $40-$120. Money factors are set by Lexus, but the money factor is commonly marked up by the dealership. Tell them you are buying either the Lexus or an infiniti within the next 3 or 4 days, and ask them to give you their final best offer.
  • scoot84scoot84 Posts: 21
    2008 ES350
    PM - Premium Package
    HL - HID Headlamps
    HH - Heated and Ventilated Front Seats
    PA - Parking Assist
    WU - Wood and Leather Steering Wheel
    DC - Bluetooth Audio
    BE - Rear Seat Side Airbags
    HN - Power Rear Sunshade
    FS - Full Size Spare Tire

    $35,000 (thats roughly $230 over invoice)
    36 month lease with 12k miles per year at $438.37 / month
    Just inceptions plus first month payment due (roughly $1500 at signing)

    Are these fees they say are part of inceptions standard: Bank Fee, Doc Fees, DMV Fees, Tire Tax.

    I believe this is a good deal. I worked it pretty hard. What do u all think before I go down to finalize?
  • bonurabonura Posts: 2
    Interesting you say offer them an ultimatum because that is what I did already. It was the ES350 or the Infiniti M35. They dropped the monthly note by $49 with no change in anything else in the deal. That saved me $1764 over 36 months. Sounds like they gave up some of the MF markup. I did the deal. Thanks for your input.
  • Assuming that your money factor and residual are the same as you said above (.00065 and 52%), and at a sticker price with options of $39,475 you should be paying $431.76 and not $438.37.
    I just used the Edmunds.com lease calculator. (http://www.edmunds.com/advice/leasing/articles/48365/article.html)

    Also, Bank Fee, Doc Fee, Tire Tax are BS fees, and especially at $1060 (=$1500 inception - $438.37 first month's payment).

    TTL is legitimate = Tax, Tag, License.
    Tag and License =$200 so $1060 is overpaying by $860.
  • scoot84scoot84 Posts: 21
    Thanks for the info Climbonboard. In your experience have you been able to get dealers to waive the bank fee, doc fee and tire tax? The tire tax is like $7 so not that concerned there, but the doc fees and bank fees add up to roughly $1000 out of pocket.

    Also, what about the destination charge of $850? Is that legit?

    I am going to the dealer on Monday night to discussgetting this deal done and would love to know if I should stand hard on the fact I am not paying those fees.

    Thanks again.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi wrinni. On July 25th, Lexus enhanced its lease program on most models. You never mentioned what state you are in and Lexus' lease program often varies by region, but in most of the country right now Lexus Financial Services' current buy rate lease money factor for the 2008 ES 350 is .00065 for consumers who qualify for its Tier 1+ credit tier. This is obviously a lot better than the factor that you were quoted. Make sure that the dealer uses the lower one to calculate your car's monthly payment.

    The $600 acquisition fee is legitimate. LFS charges this fee on every vehicle that it leases. The doc fees on the other hand vary from dealer to dealer. While most dealers charge one, some dealers charge a lot more than others. Make sure to look at the $600 doc fee as part of your car's total selling price. If you feel that your total selling price for the ES that you want including the fee is lower at this dealer than it would be elsewhere, go for it. If not, you might want to shop around.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello qkslvr. The money factor that you were quoted is definitely way too high. On July 25th, Lexus enhanced its lease program on most models. I have not seen the specific numbers for the Houston area, but in most of the country right now Lexus Financial Services' current buy rate lease money factor for the 2008 ES 350 is .00065 for consumers who qualify for its Tier 1+ credit tier. Make sure that the dealer uses the lower one to calculate your car's monthly payment.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    I'm glad that you have found this forum so helpful, Scott. Here's the information that you're looking for. Lexus Financial Services' new buy rate lease money factor and residual value for a 36 month lease of a 2008 ES 350 with 12,000 miles per year are .00065 and 52%, respectively for consumers who qualify for its Tier 1+ credit tier in your area.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • wrinniwrinni Posts: 4
    Thank you very much. This forum has helped me learn so much about leasing. I finally felt confident enough to know what would be a good deal. If it weren't for everyone on this site sharing their experiences, I know I would've been ripped off. Thanks again :)
  • Hi Car_Man,

    May I ask your assistance on this deal I am working on. This is my first time leasing, on my current camry I only dealt with the OTD price (after TT&L). I was able to get a dealer to go $38k OTD ($40,315 MSRP), I would like to lease as to keep my monthly payments low. But I do plan to purchase at end-term..
    My question is, after reading through this forum. How can a dealer go about doing OTD when LFS determines the residual (that later will be taxed when I buy) and therefore I end up paying more? Is the dealer pulling one on me?

    Thanks in advance!
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You're very welcome, wrinni. I'm glad that you've learned so much from visiting this forum.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hi Car_Man,

    May I ask your assistance on this deal I am working on. This is my first time leasing, on my current camry I only dealt with the OTD price (after TT&L). I was able to get a dealer to go $38k OTD ($40,315 MSRP), I would like to lease as to keep my monthly payments low. But I do plan to purchase at end-term..
    My question is, after reading through this forum. How can a dealer go about doing OTD when LFS determines the residual (that later will be taxed when I buy) and therefore I end up paying more? Is the dealer pulling one on me?

    Thanks in advance!
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi yukonballer. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. It's true that the depreciation portion of your lease payment is determined by taking a percentage of your car's full MSRP, however the interest portion of the payment is based upon its selling price. The lower your car's selling price is, the lower its monthly payment will be.

    I hope that this answers your question for you. Since this is your first time leasing, it might be a good idea for you to 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.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • gbh43gbh43 Posts: 1
    Car Man

    Do you know if the .00065 MF and 52% RV are good in MN??
  • Fully loaded on both. 24 month lease in NY. Lexus for 515 and G35 for 485. I liked them both. I tested them both. What advantage does the ES350 have over the g35 and what do you guys think of the lease quotes?
  • gforce11gforce11 Posts: 225
    I think the ES350 is a bit larger than the G35x, with slightly better gas mileage. Both are very nice cars. Right now Infiniti is giving out the better leases though. Most of their lineup is heavily discounted.
  • fusillifusilli Posts: 24
    This is my first venture into Japanese luxury cars. I have had 3 Corvettes (in my 20's, that was fun) and then 5 Benzes to follow. I haven't even taken this ES350 for a test drive! However, I do have a question...regarding the leasing. Is it true that dealerships use credit scores as a bargaining chip and that it really doesn't matter? Not that I have bad credit, but I always read that you don't tell them how good or bad your credit score is. What is Tier 1 pricing according to Lexus? Is it a perfect 850 credit score or are they more reasonable? I am in the mortgage biz, so credit scoring is something I know something about. I just want to know from a car buying/leasing perspective what the general guidelines are like. Thanks.
  • I am leasing 2008 ES 350 w/Ultra Luxury Package, Nav w/Mark Levinson and Intuitive Parking Assist in GA. 36 month/12K
    MSRP 45285.
    MF 0.00065.
    Residual, I was told at one dealership that residual for Ultra Luxury Package is 50% and the other dealership told me it was at 52% (???).
    The quote I get is 560 per month incl 7% GA tax.
    No money down, just acquisition fee of 389 plus DMV fee of 41.
    If the quote was done based on 50% Residual than Cap Cost is at 40000.
    Payment ~ $523 + $37 tax.
    My questions are:
    What is a 'True' Residual value for this Model?
    How good is this deal?
    Do I have any more room to lower my payment?

    Thanks,

    Stan
  • fusillifusilli Posts: 24
    I guess we need to delve more into credit scores and pricing. Tiers, etc. That is the only way, truly, to see if one is getting a good deal on a lease or not. I just pulled my credit before I finally went and took an ES for a test drive. (by the way, liked it well enough to live with it for 36 months). My Beacon is 687 (not bad, used to be 720)...this should be decent enough to get pretty good pricing, don't you think? Someone needs to address the credit thing, because it is important to the leasing equation.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi gbh43. I believe that they are, but I have not seen an actual lease program from a dealer in your state.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi fusilli. Credit scores definitely do matter when leasing. Most of the lease money factors that you see mentioned in this discussion are for consumers who qualify for Lexus Financial Services' "Tier 1+" credit tier. In order to qualify for this tier, consumers must have a credit score of something like 730 or higher. LFS' money factors for other credit tiers are higher.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • fusillifusilli Posts: 24
    Thanks for the credit info. I knew they would be a factor, so I believe MY best bet would be to determine the pricing and then go from there. I have a quick verbal price of $33,500 (South Florida) and I believe the money factor and residual, from what I am reading, is set by the financial company, yes? I think with a score of 687, I should be in the ballpark and they'll hit me with a higher payment, but not that much higher that I can't live with it. Heck, being in the mortgage biz, and especially these days, not many have scores over 700.
This discussion has been closed.