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2013 and earlier Lexus ES 350 Lease Questions

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  • Hey 4barbara. You would be better off waiting until the scheduled end of your current lease to get something new. Unless your leased car is worth way more than its residual value on the open market, to lease something now either you or your dealer will have to make your final four payments on it. If the dealer makes them for you it will hamper your ability to get the best possible deal on your new car.

    You never mentioned the selling price or MSRP of the ES 350 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 what car's selling price is 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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  • Hi valew. It's great that you know the selling price of the car that you are interested in leasing. Many consumers never find this important piece of information out. It is difficult for me to give you my opinion on it though without knowing this car's MSRP or dealer invoice price. These numbers will help me to determine how good a deal you are getting. Make sure to stop by the "Lexus ES 300/ES 330: Prices Paid & Buying Experience" discussion to see how much other community members have paid for this car lately.

    Car_man
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  • Hi mrtrance. The dealer invoice price of the car that you described is probably around $37,200 or so. When we subtract the $500 dealer cash that is currently available on this model from that we arrive at around $36,700. I personally doubt that it is possible to lease one for much less than that. If I could get this car for $36,166 through CarsDirect, I personally would go for it. I doubt that you can get this car for $35,000, but I am surprised that CarsDirect's price for it is so low. Try stopping by the "Lexus ES 300/ES 330: Prices Paid & Buying Experience" discussion to see how much others have paid for this car lately.

    I don't believe that Lexus is providing lease support on the ES 350 in September. If you were to lease one through Lexus Financial Services right now for 36 months with 12,000 miles per year, your buy rate lease money factor and residual value should be .00285 and 54%, respectively.

    Car_man
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  • Hi oleg. The ES 350 that you are interested in probably has a spread of around $4,400 between its full MSRP and its dealer invoice price. When owe add the $500 dealer cash that Lexus is providing on it to this, we arrive at $4,900. The $4,970 discount that you are being given on this car looks very attractive to me. Just make sure that the dealer that you are working with uses Lexus Financial Services' buy rate lease money factor to calculate your monthly payment and you're in business. I believe that LFS' September buy rate for this car is .00285. This would drop to .00195 with the payment of nine additional security deposits.

    Car_man
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  • Welcome stevegotex. Since you have never leased before, 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.

    Lexus Financial Services or the dealer that you are working with should be able to provide you with the specific guidelines that Lexus Financial Services uses to determine exactly what considered is excess wear and tear. Generally speaking, I have found manufacturers' captive finance companies, like LFS, to be very reasonable when evaluating vehicles for excess wear and tear at lease-end.

    Car_man
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  • Car_man/Others,

    What is the residual value at lease end for the 2008 ES350 for a 36 month/10,000 mile lease?
    Is the MF for 2008 same as 2007?

    I am interested in leasing a 2008 ES350 with Navigation System.

    Thanks.
  • Hi Car_Man,

    I am a CPA assisting my Southern California clients in negotiating a lease on a
    2008 Lexus ES350 Ultra+Nav+MarkLevinson.

    They require a 15,000 mile/yr lease, 36 month term.

    They have impeccable credit.

    I would be grateful for your wisdom on these items:

    . Lowest money factor

    . Highest residual

    . Sec Dep required? If so, lowest amount? & can it be capitalized?

    . Lowest amount over invoice to pay [Edmunds shows ~ $1,500 for TMV]

    . Your guidance for the dealer-installed high-markup-add-ons (where cost is not apparent): how to negotiate?

    Much thanks!

    And hope this assists the other enthusiastic folks who participate in this forum.
  • Hi acura_tl. Lexus is not currently providing any lease support on the 2008 ES 350. As a result, if you were to lease one through Lexus Financial Services right now you would have to use its standard lease program. LFS' buy rate standard lease money factor probably varies slightly by region, but it should be around .00275 for consumers who qualify for its top credit tier right now. LFS' current 36 month, 12,000 mile peer year residual value for an '08 ES 350 without the Ultra Luxury package is 58%. I am not sure if it offers leases with only 10,000 miles per year.

    Car_man
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  • Hi integritas. Lexus is not currently providing any lease support on the 2008 ES 350. As a result, if your clients were to lease one through Lexus Financial Services right now they would have to use its standard lease program. LFS' buy rate standard lease money factor probably varies slightly by region, but it should be around .00275 for consumers who qualify for its top credit tier right now. LFS' current 36 month, 15,000 mile peer year residual value for an '08 ES 350 with the Ultra Luxury package is 54%. I don't believe that LFS requires consumers who qualify for its top credit tier to pay a security deposit on their lease. It does charge a $600 acquisition fee on every vehicle that it leases though. This fee can be paid at lease signing or rolled into vehicles' capitalized costs.

    I am not personally all that familiar with the market for the ES 350 right now, but it is a pretty high volume vehicle and your clients are in an area that has a lot of competition. If I was in the market for this car under those conditions, I personally would shoot for a selling price of $500 over dealer invoice and see what happens. Make sure to stop by the following discussion to see how much other community members have paid for similar cars lately: "Lexus ES 350 Prices Paid and Buying Experience".

    Car_man
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  • I just received a quote on a 2008 ES with UL pkg. that lists for $44,812. Base cap cost was $40,459 ($1070 over invoice) + $1,240 for chrome rims (they retail @ $1,995). Adjusted cap cost would be $41,699.

    Terms: 36 months,15K-mi/yr - $5k out of pocket = $591/mo (includes 7.75% tax rate)

    I assumed a 54% residual and the standard Lexus MF of .00275. Would the residual be higher for getting the car with the UL pkg.?

    Just curious if the numbers they quoted me seem right, or if they hit me for some rate?

    A few dealers tried to tell me that they get full-pop for ones with UL pkgs.??? I still think this is a $500 over car, any thoughts?

    Car_Man, just curious where you get all your residuals and MF's from? I'd love to have access to all that!!! You subscribe to ALG or have someone in the biz??
  • espo1espo1 Posts: 27
    I would wait for car man's reply. He has the most smarts on these matters and I'm interested what he has to say. But I'm more than sure that he will tell you not to put the 5k towards the lease. You can loose the 5k if you total the car. If you've got 5k up front use it to buy down the MF and you get it back at the end of the lease. That's what I plan to do when I go for my lease in Dec.
  • Does anyone know if the Encore program for Lexus also applies if you had a previous lease with Toyota? If so how much is the discount? Also, do you have to have tier 1 credit to qualify or just have to have made all of your auto payments on time? thanks
  • Hi ocautoseeker. Lexus Financial Services' residual values for 2008 ES 350 models that are equipped with the UL package are actually 2% lower than the residuals for models without the package. Unfortunately, I am not aware of any source that provides accurate information on manufacturers' actual lease programs to the general public.

    As far as this car's price goes, if you are in an area that has a number of Lexus dealers within driving distance you definitely should be able to do better than full MSRP on this car. Make sure to stop by the "Lexus ES 350 Prices Paid and Buying Experience" discussion to see how much other community members have paid for their ES 350s lately.

    By the way, you definitely should not make a $5,000 down payment when leasing. I always advise consumers not to make any capitalized cost reduction on leases. Those who make them risk losing part or all of them if their vehicle is totaled in an accident or stolen and never recovered. You would be better off going with a zero down lease even though it means that your monthly payment will be a little higher.

    Car_man
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  • Hello dfw_buyer. Lexus Financial Services' Encore program provides a .00010 money factor reduction on the lease of a new vehicle to current lessees. I believe that this program is available to all consumers, regardless of what credit tier they qualify for. Having said this, the money factors that have been mentioned in this discussion are for consumers who qualify for LFS' Tier 1+ credit tier. If your credit isn't excellent, you will likely have to pay a higher factor to lease the ES 350 that you want than the ones that you have seen mentioned. I doubt that the Encore program is available to current Toyota lessees, but it wouldn't hurt to check with a dealer to see if it is.

    Car_man
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  • espo1espo1 Posts: 27
    Car man
    I notice you gave the multi deposit buy down as .00010. Most dealers are saying it is .0008. Is this BS? That could mean a extar payment of about $500 over the cost of the lease. Also A fleet sales person said that one may pay the interest up front intsead of throwing money at the cap cost to reduce the nut.( alot of leases in certain states collect the sales tax monthly through the lease payment ie PA Is this good? If a lease is terminated for ant reason do yoiu get you a sales tax back on unpaid portion?
  • I am interested in leasing the ES 350 with most of the options except navigation and what comes with it. We were quoted a purchase price of 36,500.00 for the car with a lease payment of 544.74 for 36 months 12,000 miles. I believe the residual on the car is 21,900.00. Our total payment for taxes, first payment, and bank fee is 2955.00. Is this a good deal? We live in New York near NYC. Thank you.
  • Hey espo1. The money factor reduction for multiple security deposits was .00010 the last time that I checked, but I suppose that it is possible that Lexus Financial Services has changed it since then. BMW FS lowered the reduction that it provides for additional deposits several years ago. Many banks allow consumers to pre-pay leases. While pre-paid leases are not interest free, consumers who pay for their entire lease in advance do receive a reduction in the money factor that is used to calculate the interest portion of their lease.

    If you decide to terminate your lease early or your vehicle is totaled you will not receive a refund of the sales tax that you paid on it.

    Car_man
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  • Hi debbie731. What is this car's full MSRP? This number will enable me to see how much of a discount you are being given on it and to use Lexus' current lease program to estimate what its monthly payment should be. Let me know and I'll tell you what I think.

    Car_man
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  • The MSRP according to your site is 38,100.00 the TMV price is 37,972.00 not including the tax. Thanks in advance for your help.
  • Sorry I gave you the wrong amount because I wasn't sure of the options but I checked with salesperson. The invoice according to your web site is 37,520.00 and the TMV in my zip code is 37,394.00. You do not give an invoice price on your web site. Please also note that the dealer is paying off 1200.00 of our leased car (the remaining payments we will owe) as well. We are willing to keep our other car until the lease is up but the dealer said because of the Lexus December lease rates that when our lease is up the price will be more for us to lease than now since the next time Lexus has the special lease rates is July and our car is due back well before this.
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