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2013 and earlier Lexus ES 350 Lease Questions

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  • Hi lookingates350. I'm not bernster, but I can help you out. Lexus Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2007 ES 330 with 12,000 miles per year are .00265 and 60% for consumers who qualify for its Tier 1+ credit tier.

    Car_man
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    Prices Paid Forum
  • Hi tdoh. A base 2007 Lexus ES 330 has a spread of $3,660 between its full MSRP and dealer invoice price. You are being given a discount of $4,325 on the specific car that you are interested in. This price looks pretty good to me. You can always also stop by the following discussion to see how much other community members have paid for similar cars lately: pat, "Lexus ES 350: Prices Paid & Buying Experience" #, 26 May 2006 6:44 am.

    I can't really comment on the money factor that you were quoted because I am not sure what credit tier you qualify for or what Lexus Financial Services' buy rate money factors are for its lower credit tiers.

    Car_man
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  • Evaluating a lease deal on a 2007 Lexus ES350 Ultimate with a MSRP of $43,989. Discount of $1,500 from MSRP. Down payment is $3,980, which includes first payment, taxes, plates fees etc. Payment is $608.30 including state of PA tax for 36 months / 12,000 miles per year /$.25 per mile over 36,000. Money factor .00275. All through Lexus Financial. Searching for a Blue Onyx / Cashmere - assured me that it would be here in four weeks. Residual 60%. Is this a fair / good deal? Thanks in advance for your opinions.
  • tdohtdoh Posts: 298
    Hard to say if that's a good deal for your neck of the woods, since I don't live in the eastern part of the U.S. (I'm in California)...but if you want an opinion even though it's an apples and oranges scenario, then I can offer that I paid $39963 (before tax/lic) on an MSRP of $44288 for a ES 350 UL.
  • My offer is .00275 money factor, 12K miles/year 32 months $38102 for the premium plus and Nav and 68% residual. I donno, but this deal sounds amazing to me. Anyone think i should pass?
  • I have never leased a car before and I am thinking of "trading" in a 2004 Acura TL (navi) for either an ES350 or an RX350. Trade in value on kbb is $19.7k (using fair condition). Question is - all the posts I read seem to be from people who put the minimum down payment. Is it a bad move to trade in when leasing as opposed to financing a car? Also what can I expect off MSRP? I'm in New Jersey. Looking at Premium Plus Package. Thanks.
  • You can get the best deal in New Jersey at Prestige Lexus in Ramsey, NJ. You can get there by train. Just call for directions. I live in New York on Long Island and it was the best deal around.
  • I concur.. prestige lexus is probably the one to go. They have quoted me with the lowest price for es350 UL. Too bad I am about 3 hrs away from ramsey.
  • Car Man -- long time lurker, first time poster.

    I have been negotiating with a Lexus dealer here in the Pittsburgh area for an ES350. Here is the deal as he presented it to me today:

    BASE $33,865
    VN (Nav System) $4,050
    PT (Premium Plus) $2,480
    TOTAL $40,395
    ALLOWANCE (-) $589
    GRAND TOTAL $39,806

    With the features above, it will have to be ordered. To do that, he said that I need to put either $500 down (non-refundable) or $1,000 (refundable).

    He also said that if the car cannot be found at another dealer and has to be special-ordered, it will probably take 3 months and the allowance above would be $1,000 (instead of $589).

    Using the higher amount, here is the possible financing scenario:

    CAPITALIZED COST: $39,806
    LEASE TERM: 36 months
    ANNUAL MILES: 15,000
    MSRP: $40,395
    RESIDUAL FACTOR: 58%
    RESIDUAL: $23,429.10
    DEPREC. PORTION: $16,376.90
    ACQUISITION FEE: $600
    MONEY FACTOR: 0.00335
    SALES TAX RATE: 9% (6% STATE TAX, 3% STATE USE TAX)
    PAYMENT: $666.75
    SALES TAX: $60.01
    TOTAL MONTHLY: $726.76

    To drive this off of the lot, I'd need to pay as follows:
    FIRST PAYMENT: $726.76
    TITLE FEES: $153.50
    ACQUISITION: $654.00
    DUE ON DELIVERY: $1,534.26

    If I put $1,000 down (Cap Cost Reduction), my monthly payment becomes $692.83.

    My questions:
    1) How fair is this deal?
    2) My credit rating puts me in Tier 1. Isn't the Money Factor he quoted a little high?
    3) As this is a new model, how much more $ do you think I can get out of the deal?
    4) Since this is my first time considering a lease, I was a little surprised by the fact that if I try to trade in my Honda Accord, the amount they would give me would be cut as a check to me, instead of coming off of the Capitalized Cost of the car (which would make the monthly payment a lot more reasonable). Is this correct?
    5) The ACQUISITION FEE: in one part, it's $600. In another, it's $654. Why the delta? Also, is this something that I can negotiate out of the deal?

    Thank you!
  • tdohtdoh Posts: 298
    I'm not Car Man but if you don't mind, I'll put in my two cents worth regarding your question...so here goes:

    1) I'm not familiar w/ how much of a great deal one might be able to get if the vehicle has to be ordered, but FWIW a max $1000 allowance isn't a whole lot, even if the vehicle is a PP vs. UL. I was able to get $4300 off MSRP on a near-loaded UL, so IMHO it's not farfetched for you to try to knock off a bit more off their selling price.

    2) That does sound a bit too high, based on Tier 1 MF of approx. .00265 I've seen posted here...along with fact that the MF--which in my case is a Tier 2--on my lease is lower than the one you mentioned. Are you positive that you're Tier 1? I ask because I thought I was close to being Tier 1...until I discovered that auto lenders use what's called a FICO-II score to determine creditworthiness when it comes to installment loans. Needless to say, my FICO-II score was somewhat lower than my FICO score...thus I could only qualify for a Tier 2 MF.

    3) See my response to #1 (above); again, I reckon that one might be able to get a larger discount based on which level of trim (PP vs. UL).

    4) Dunno why it's done that way, other than perhaps because you own the Accord outright?

    5) My guess is it looks like they applied sales tax to the Acq. Fee; maybe it's required in your state? I'll have to double-check my documentation but I'm fairly certain that the finance guy didn't apply CA sales tax to my acq. fee.

    Wow...that 9% sales tax does affect your monthly payments pretty bad... :(
  • tdoh --

    Thank you very much for your insights. Yes, the sales tax is a killer -- but, such is life here in PA. ;-)

    Does anyone else here have any thoughts about the whole "trade in on a lease" question that I have? I'd like to make a decision on this asap, but would love to hear from others who have been through this.

    Thanks!
  • Hi garsarno. The money factor that you were quoted for this car is right in line with Lexus Financial Services' current buy rate for it. This is a good sign because it means that the dealer you are working with is not marking your car's money factor up to add hidden profit to your deal. There is definitely over $2,000 in dealer profit left in your car, but I am not all that familiar with what the market is like for it right now so it is difficult for me to say if you will be able to get one for a lower price than the one that you were quoted. Try looking in the following discussion to see how much other community members have paid for similar cars lately: "Lexus ES 350: Prices Paid & Buying Experience".

    Car_man
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    Prices Paid Forum
  • Hi beltelmel. There's nothing wrong with trading in your existing car when leasing a new one. Just have the dealer that you are working with cut you a check for any equity that you have in your car rather than using the proceeds from it a s a down payment on your lease. You should be able to get an idea of how much you will have to pay to get this car right now by visiting the following discussion: "Lexus ES 350: Prices Paid & Buying Experience".

    Car_man
    Host
    Prices Paid Forum
  • Welcome go21bucs. If the capitalized cost that you mentioned is this car's selling price, you aren't being given much of a discount on it. You should be able to do a lot better than a $500 discount on an '07 ES 330. The money factor that you were quoted does look a little high. Lexus Financial Services' current buy rate lease money factor for the 2007 ES 330 for consumers who qualify for its "Tier 1+" credit tier is currently .00275 in most areas. I believe that this car's "Tier 1" money factor would only be something like .00010 higher.

    If you have a vehicle that you have equity in that you can trade in you actually would be better off having the dealership that you are working with cut you a check for it instead of using the proceeds from your trade as a capitalized cost reduction for your lease. Consumers who make cap cost reductions risk losing them if their vehicle is totaled in an accident or stolen.

    Lexus Financial Services' current base lease acquisition fee is $600. This fee is set by LFS and all consumers who lease have to pay it. I'm not sure why it was $50 higher in one part of the quote you were given.

    Car_man
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    Prices Paid Forum
  • Car_Man,

    Do you have the Lexus Residuals and Money Factors for a 2007 ES350 (premium and nav) for a 15k lease for 36 months?

    Also, any word on when December to Remember will come out?

    Thanks,
    Mike
  • Just leased an ES350 in Atlanta, GA. I called all 5 dealers in the metro area and negotiated prices. Finally 3 of the 5 said no and two agreed to a Lease price of $579 plus tax on a Nav/Premium Plus unit with an MSRP of $41,500. Car Color is Obsidian with Cashmere.

    I am confident that that is at least close to the best you can do in Atlanta because everyone was willing for me to walk away below that number. Every dealer said they had a very small selection of cars available for sale most were coming in presold.
  • Thanks for the info. A few questions....

    What did you agree upon for purchase price?

    Did you put any additional money down outside of first payment and security deposit?

    What was the money factor and residual? Also, how long of a term are you leasing for? How many miles a year?

    Thanks!
  • $38422 Sale price + $600 Aquisision fee = $39022 Total Cap Cost, Just starts down(1st Payment and Security Deposit),36 months 12K miles, Residual of $24202.98.

    Not sure about money factor...sorry...I was negotiating based on Payment and so was not managing the money factor variable.
  • Here you go, Mike. Lexus Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2007 Lexus ES 350 with 15,000 miles per year are .00275 and 57%, respectively for consumers who qualify for its Tier 1+ credit tier. While I have not seen any official word on when it will begin, I strongly suspect that Lexus' annual "December to Remember" sales event will begin on November 22nd. If I was in the market for this car, I personally would definitely wait until then to lease one.

    Car_man
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    Prices Paid Forum
  • sammys - I know I'm responding to a very old post, but this is my first time going thru these forums. So I thought I would put in my two cents on the affect of RV, money factor and msrp (or agreed-to price). This is something I had worked up this afternoon when considering a 36 month lease, $40K msrp, 0.00275 money factor and 58% RV.

    ** For every $500 reduction in price (all else constant), the monthly payment drops by approx $15

    ** For every $500 (or 2%) INCREASE in RV, the payment drops by approx $12

    ** For every 0.0001 decrease in the money factor, the payment drops approx $6

    Hope this is helpful. For me, I'm trying to focus more on negotiating the top line. I'm hesitant to allow them to jack up the residual value, since some lease agreements are open-ended. In that case, you would be stuck with the delta between the actual price in 3 yrs (vis-a-vis the negotiated RV).
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