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2013 and earlier Lexus ES 350 Lease Questions

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  • bandjbandj Posts: 2
    What is the Residual and Money factor on 2009 ES350 for 36 month, 15,000/yr lease?
  • About to pull the trigger on this deal later today and needed some quick feedback to see if it's a good deal. Your help is much appreciated.

    2008 ES 350 w/premium package
    MSRP: 37,796
    Selling Price: 32,595
    Residual: 53%
    Money Factor: .0010
    $1000 drive off (including 1st month's, title, reg, etc.)
    456.89/month including tax

    Good deal???
  • Its pretty good. I recently did a 36 mo lease on an 08 with nav and Pebble Bch package for 443/mo inc tax and 1400 drive offs incl 1st month. MSRP 42,600, selling price 35,500. I think I got lucky.
  • Hello Car man and everyone, you helped me in the past with a new car purchase, now I am trying to help mother lease another Lexus. Her current Lexus ES330 lease is due to turn in on Feb 1 however she wants to buy now or at least before her Jan 1 payment is due, although not mandatory.
    Could you please help with my math and leasing understanding?
    Looking at 2009 ES350 to lease. (blk on blk) Eligible for $1000 loyalty money. Credit score 854 TransU,850 Experian, & 717 equifax. She is in the Atlanta GA area (Clayton County 6% tax)
    MSRP on car is 41,395 Premium plus pkg. w NAV (other option that come with car is HL.PA,WU,BE,HN,FS)
    Going to offer $37,000 for car, I believe the residual rate is 53% and the money factor that the dealer quoted me was .00105 for tier1+ credit (is the MF rate correct?)I saw elsewhere on site MF .0009

    Inceptions
    41.00 tag/title/lemon law
    599.00 dealer fee
    ??? 1st month payment
    (I was told Lexus charges 700.00 for new lease acquisition where does this get added to… inceptions?)

    So here go’s
    msrp 41,385X.53=21,934

    37,000-21934=15,066
    15,066/36=418.50 payment w/out interest and taxes
    (37,000+21,934)X.00105=61.88 is interest
    61.88+418.50=480.38 payment with interest
    480.38+6% cty tax(28.80)=509.18 total monthly payment
    Is this correct or should the monthly payment on this car be lower? She would like to put zero down.
    what is invoice on the car
  • Actually, we were pleasantly surprised that when we went into the dealership instead of a 2008 he gave us a 2009 at that price. Still a good deal? Either way we are very happy with the car and deal we got!
  • CarMan thank you for the reply. Today I went to the dealer and the offer on the table is $490 per month including tax,title and fees for a Black/Black Premium Package Plus. I would pay off the Volvo ( $2200 ) directly to Volvo financing and $300 out of pocket to Lexus which includes first month.

    36 months lease / 12k miles
    Residual .55 or .53 (I don't remember)
    Money Factor .0009

    Any thoughts on this?
  • whats the msrp and selling price of the vehicle? It sounds high....remember, there is $1000 in dealer cash available here.
  • I believe MSRP was $39,995 and selling price is around $34500... Please don't quote me on those prices as I can't find the paper I wrote on
  • Based on the #s you provided, that lease payment doesn't come close. Using a 53% residual 8% sales tax, I get 453 inc tax. and that is using a 53% residual.

    There are simple lease calculators online. Of course, if you are rolling the premaining volvo payments into the lease, then the number makes sense.
  • I'm new to the leasing side of car deals, and was wondering how the current December to Remember lease specials stack up? The 2008 ES350 with Premium Plus package is advertised at $369/month with $3919 due at signing. Term is 36 months with 12K miles a year.

    MSRP is listed as $37,950, and the purchase price at lease end is $18,596.

    Is this a "deal" or not?
  • Thank you for the input Travispete1. You are right the numbers aren't jiving. Can you provide me with the calculator you used please? After reading all these posts I negotiated with a different dealer online for a ES350 Premium Package with Navigation for a selling price of $37,000. Based on the formula provided above by sebast23 I had Calculated the following:

    MSRP $42,795 x .53 (residual) = $22,681.35
    $37,000 - $22,681.35 = $14,138.65
    $14,318.65 / 36 = $397.74 payment w/o interest or tax
    ($37,000 + $22,681.35) x .0009 (money factor) = $53.71 interest
    $397.74 + $53.71 x 7% tax = $483.05 total payment

    However, when I went today to the dealer they had some totally different numbers. They had the same msrp, selling price, residual of .53 and money factor of .0009 as I did yet had my total payment at $527.16 !?!?!?!?!
    The internet sales manager which I had negotiated with was off today so I didn't get a chance to speak with him, however, I don't understand why such the drastic difference.
    They also had a Bank fee of ($700,) Doc Fee of ($699) Gov't Fee ($293.50) and Taxes of $1,2464.66 which they had calculated out of pocket I had to pay $826 to the dealer, which included first month, tax and title. The sales manager on the floor said his hard cost on the car was $38,060. I told them to fly a kite and I would go to another dealer. Are my calculations correct? or am I way off base?

    PS. The amount owed on the Volvo was not used in any of my calculations since I found someone to take over that lease.
  • The taxes on my above post are $1246.66. Sorry for the large number before.

    Also, I believe the difference in the price is due to all the fees that they have my incurring. Bank Fee, Doc Fee, Gov't Fee, Taxes. Can anyone confirm?
  • Hi michael123. The money factor that you mentioned looks a little high to me. According to the latest information that I have seen, Lexus Financial Services' December buy rate lease money factor and residual value for a 36 month lease of a 2008 ES 350 with 10,000 miles per year are .00035 and 50% for consumers who qualify for its Tier 1+ credit tier. The numbers for an otherwise identical 48 month lease are .00035 and 41%.

    Car_man
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  • Hi bandj. According to the latest information that I have seen, Lexus Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2009 ES 350 with 15,000 miles per year are .00090 and 51%, respectively for consumers who qualify for its Tier 1+ credit tier.

    Car_man
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  • Welcome back, sebast23. It's nice to see that you're helping your mother lease her new car. Her credit is in good shape, so she should qualify for Lexus Financial Services top aka "Tier 1+" credit tier. According to the latest information that I have seen, LFS' December buy rate lease money factor for the 2009 ES 350 is .00090.

    As far as this car's selling price goes, shoot for as close to dealer invoice minus any available cash incentives as possible. You can look up this model's exact dealer invoice price over in the New Vehicle Pricing section of Edmunds.com. December is turning out to be a terrible month for new vehicle sales, even for Lexus. The sales at one local Lexus dealer that I spoke with are off 50% from December of last year. This works to your advantage in negotiations.

    The last time that I checked, LFS charged a $600 acquisition fee on every vehicle that it leases. You can either pay this fee at lease signing or have it rolled into your car's capitalized cost to bake it into your monthly payment. If the dealer is trying to charge a $599 "dealer fee" on top of this, it is nothing more than a way for them to try to add hidden profit to your deal. Try to have them eliminate the fee. If they give you the whole, legally we have to charge it to everyone pitch just have them lower your car's selling price by that amount.

    Car_man
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  • Greetings merlion0821. 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 short, the best way to get a good deal on a leased vehicle is to negotiate as low a selling price as possible on the vehicle that you want and then have the dealer calculate your monthly payment using its buy rate lease money factor. Manufacturers' official advertised lease specials are usually decent deals, however savvy consumers who are in an area that has a decent level of competition are usually able to negotiate lower selling prices than the one that was used to arrive at the advertised payment and in turn get a better monthly payment on their lease.

    Car_man
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  • Hey Car Man,

    Thanks for all the help! This forum helped me to negotiate a pretty good deal on a 2009 RX 350 from a dealer that has lots of inventory of 2008s & 2009s. It occurred to me that the slow economy (Lexus sales are 35% - 50% lower than last year) have caught dealers with large inventories by surprise - and placed them in a vulnerable position. I'd like your advice on how to take maximum advantage of this buyer's market and strike the most aggressive deals possible by combining a number of purchases together under one deal.

    I've been gathering a few people who are interested in buying/leasing a Lexus before the end of December (to take advantage of Lexus' December financing specials) but am unsure exactly what motivates a dealer to clear inventory at a loss and a salesman to agree to significant discounts in order to generate more sales before the end of December.

    What options does a Lexus dealer have in clearing large inventory of 2008 models that isn't moving? Can it sell them to a partner at a discount, or does it have to sell to the public?

    What type of financial pressures is the dealer under for month/year end sales?

    In light of Toyota's devastating losses reported yesterday and a large inventory, do you think the dealer would be willing to take a significant loss on invoice in order to clear 5-8 cars before the end of the month/year?

    Since Lexus has been discounting MSRP by up to 20% - I expect that a much larger discount would be considered if there are a number of sales made in a short amount of time - and of autos that aren't moving. Since none of us "need" the deal, we're only willing to do the deals if we're getting a significant discount - @ 40%.

    Similarly - what carrot and stick does a Lexus salesperson have in selling 5-8 before the end of December? There must be a bonus based on number of sales vs. profit per car & there are likely going to be layoffs for lower performers.

    Thanks for your feedback.
  • Hi car man.

    Interested in the 2009 ES 350. What are the current residual and money factor for the 2009 at 36 months and 12,000 miles per year? Many thanks.
  • You're welcome, scoutandatty. Dealers aren't necessarily going to take a loss, certainly not a significant one, on a vehicle to blow it out at the end of the year, but they are often motivated to make their annual sales totals look as attractive as possible. Perhaps they need to attain a certain level of annual sales to receive a bonus payment from the manufacturer that they are affiliated with.

    The main reason why it is a good idea to lease a new vehicle at the end of the year is the level of manufacturer support that is available then is generally higher as manufacturers crank up their support to make their annual sales totals look as attractive as possible. Lexus' "December to Remember" sales event is an example of this. The lease program that Lexus was offering in December is much more attractive than the one that it is running in January.

    Car_man
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