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2013 and earlier Lexus ES 350 Lease Questions

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    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
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  • 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: 23
    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: 23
    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: 38,518
    Hi gbh43. I believe that they are, but I have not seen an actual lease program from a dealer in your state.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    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
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  • fusillifusilli Posts: 23
    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.
  • spygamespygame Posts: 6
    hi,
    first off i wanna say that i am new here, and new to the whole leasing process. reading the previous posts has given me some insight into the whole leasing procedure, but i still have a long way to go.
    im thinking of jumping on the ES 350, $449 /month , with $0 due at signing( thats what the advertisement on lexus.com and the newspaper ad say)., 48 months and 10 k/year. The 4 years is the only thing that is really holding me back, 36 months sounded much better to me.
    i spoke to the local dealer, and they said it comes to around $ 475 (with Kentucky taxes), and would owe out of pocket around $ 920 ( includes the first months payment, plus taxes and title). Haven't spoken to them about the entire breakdown, just wanted to get some opinions here, does that sound decent. This is ofcourse with the TIER 1 plus credit. The car offered is the with premium package without the Nav.
    Thanks in advance.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    You're very welcome, fusilli. Vehicles' residual values are set by banks and individual dealers do not have the authority to alter them. Money factors are slightly different though. Banks set vehicles' buy rate lease money factors. This is the lowest possible factor that dealers can charge. Dealers are often allowed to mark-up banks' buy rates to add additional hidden, back-end profit to deals. This is why it is a good idea to find out exactly what the buy rate should be for the vehicle that one is interested in prior to visiting dealers.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Welcome spygame. 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.

    The best way to evaluate the deal that you were quoted is to find out what selling price the dealer is charging you for the car that you want. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Shoot for a selling price that is as close to dealer invoice as possible. Once you have arrived at a selling price that you are comfortable with, have the dealer use Lexus Financial Services' buy rate lease money factor to calculate your monthly payment. LFS' current buy rate for a 36 to 48 month lease of an '08 ES 350 is .00065 for consumers who qualify for its Tier 1+ credit tier.

    Car_man
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  • fusillifusilli Posts: 23
    Yep, that's how they get you in the door. Throw a monthly payment out for Tier 1+ credit scores. The payment creeps up from there. As I said before, lessees with a 730 credit score are not a robust group these days, so expect to pay a bit more with the money factor being tweeked. You can get out the door with one, but it'll cost you. Unlike housing, it seems to still be fairly easy to lease a car with okay to good credit. I'm learning fast, Carman! In the past, I've paid cash for a lot of my cars, but this will be my fourth lease, and I am bound and determined to learn how the process works. This forum has been great.
  • I've learned a lot from this forum and am ready to go negotiate a great lease. One question remains though....what is the "dealer holdback" amd "whsl financial reserve" that I have read about? And can I negotiate them away? Thanks.
  • fusillifusilli Posts: 23
    Well, I'd like to know about those items as well. I am leasing a car before the end of the month, yes, that would be in about seven days...so I'd better complete my education process, and quickly!
  • Thanks to everyone on the forum for the information that helps all of us negotiate a better deal. I picked up a new ES350 for my wife at the new Lexus of Mt Kisco, NY that just opened. The forum posts helped me save an extra $1500 with just a couple of phone calls. Information on deals that others have made is such a powerful negotiation tool. Thanks!

    My deal terms:

    2008 ES 350
    Navigation
    Premium Plus
    HID headlamps
    Intuitive parking assist
    Wood & leather steering wheel
    Rear side airbags
    Full size spare
    Preferred Accessory package (trunk mat, cargo net, wheel locks
    MSRP including destination of 42,385

    24 month, 15k/yr lease
    vehicle cap cost 36,594 (I got 1000 extra off from Lexus for being a repeat customer)
    residual 57% 24159
    money factor .00065 (1.6% interest rate, wow!)
    sales tax of 7.375% and 600 bank fee all rolled into the monthly payments

    629.99 per month, includes tax and bank fee for 24 months
    zero down
    1st month payment and motor vehicle and document fees of 240 due at drive away, total $870 paid at dealership
    no security deposit required

    My wife loves the car, with all of the nice electronics and controls, and the smooth, luxurious ride. Good luck making a great deal.
  • fusillifusilli Posts: 23
    Good money factor. I am looking for 36 mo lease, 10k miles, just premium package, so I think I'd be looking at under $400 a month in Florida with 7 percent sales tax. I would think, huh? I don't want to write a check out for $600 a month, that's for sure.

    I am about to open up the negotiating can of worms this week. Wish me luck!
  • manu99manu99 Posts: 18
    i leased es 350 today from keys lexus in van nuys ca

    msrp; 40305.00
    negotiated price; 34823.00
    down pymnt; 1750.00 inc 1st pay, tax, license, title and the b.s
    600.00 doc fee which is negotiable
    residual; 17331.15

    money factor; .00065
    monthly payment; 425.00 for 48 month 12000 miles per year

    did i get a good lease

    please let me know
  • Hi Car_man,

    I read in one of your replies that the 'residual' values are set by the bank. Can you tell me how or where I can get that information? I am looking to lease an ES350 in NJ for 48 months @ 20K/yr. The ES350 MSRP is $35,000 and I can get it for a sell price of $32,000. The invoive price is approx. $31,800.

    Thanks,

    lbjunior
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