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2013 and earlier Lexus ES 350 Lease Questions

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi espo1. The last time that I looked into making multiple security deposits on a Lexus lease, Lexus Financial Services provided a .00010 money factor reduction for every additional deposit made, up to a max of nine extra deposits. This program is not available in some states, like New York.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Welcome cllemons. 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 your post you asked about making a down payment when leasing. I always advise consumers against making them. The main reason that I do so is if your leased vehicle is totaled in an accident or stolen and never recovered, you run the risk of losing part or all of your down payment. You can and should lease any vehicle that you are interested in without making any sort of capitalized cost reduction.

    I don't think that the length of your lease will make any difference in your negotiations, but keep in mind that generally speaking the shorter a lease is the higher its monthly payment will be. You will have to pay more per month to lease an ES 350 right now for 24 months than you would have to pay to lease it for 36 months.

    The only way that you can take advantage of the special lease program that Lexus is running on this car right now is to use a dealer to lease one through Lexus Financial Services.

    Car_man
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  • tocapallatocapalla Posts: 16
    Sorry to keep asking so many qustions, but this forum is the only place I seem to get any straight answers. It seems every Lexus dealer I talk with gives me a different answer or scenerio. So, does the current sales event only have incentives or help those with Tier 1 credit? Does their sale provide any lower rates or incentives in any way to anyone else? THANKS for all the help.
  • espo1espo1 Posts: 27
    Hi Car_man
    How long ago did you get that info? The amount of .0008 was given to me about a month ago. Does it change according to where you live or are the rates across the board? If you don't trust what a sales man says about the LFS rates where can you check to make sure what is being said is the truth? :confuse:
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi mmarketos. The car that you are interested in probably has a spread of around $4,500 between its full MSRP and its dealer invoice price. That puts the selling price that you were quoted for this car at around $1,000 over invoice, which is pretty good. You can stop by the following discussion for additional feedback on the price that you are being given: "Lexus ES 350: Prices Paid & Buying Experience".

    Having said that this car's selling price is pretty good, the money factor that you were quoted for it is not. Lexus is now running a special on the ES 350 that provides a special money factor of .00245 for Tier 1+ customers. This factor may vary slightly by area, but the factor that you were quoted is much higher. Make sure that the dealer uses a lower factor to calculate your car's monthly payment.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Greetings tampa350. There's nothing wrong with leasing an ES 350 right now. In fact, its new special lease program isn't bad. Let's use it to estimate what your car's lease payment should be like. According to my calculations, if you were to lease a 2007 Lexus ES 350 that has an MSRP of $41,322 and a selling price of $36,980 through Lexus Financial Services right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $564 assuming that you qualify for its Tier 1+ credit tier and pay a security deposit at lease signing. The payment for an otherwise identical 48 month lease would be around $535. I based these payments on 15,000 miles per year because that is the highest mileage allowance that LFS publishes residual values for. If you need to drive more than this, you will have to purchase additional miles on a per-mile basis. It is less expensive to do so at lease signing than it is to wait until the scheduled end of your lease and have to pay an excess mileage penalty.

    I always advise consumers against making down payments on leases because by doing so you are putting your money at risk. If your vehicle is totaled in an accident or stolen and never recovered during your lease, you may end up not being able to recover part of all of any money that you put down.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi tocapalla. Lexus just introduced "The Event" last week. It is now providing a special lease money factor of .00245 on the 2007 ES 350 for Tier 1+ customers (this factor may vary slightly by region).

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You are correct, searchingfor. Lexus Financial Services' multiple security deposit program provides a reduction of .00010 for every additional deposit consumers make. A maximum of nine additional deposits are allowed.

    Car_man
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  • Hey Car_man-
    Thanksfor all the great info. I got a quick question.. Who big is each additional deposit you talk about to lower the money factor by .00010? Is each deposit equal to a 1 months lease payment? if so what is the diffrence between doing this and making a down payment?

    Thanks in advance.
    blue
  • phead2phead2 Posts: 16
    Can anyone tell me what the current residuals are for 36 and 48 months (12k)?

    Thanks!
  • tdohtdoh Posts: 298
    tocapalla--sorry for the late reply; the MF they cited you is .00355; if the sales and/or finance person isn't gonna budge on the MF--especially given that they hadn't even run your credit at that point--better find another dealership. If your FICO-II credit score (this takes into account your income level since it factors your debt-to-income ratio, among other things; your main FICO score doesn't) is 700+, you should definitely be quoted a much lower MF than .00355. If not, then maybe Lexus Financial might cut you some slack and bump you up a Tier level just to sweeten the deal...probably more so, given the Lexus promo that's currently going on.

    The residual on my lease is 60%--the higher residual on my lease (compared to the one you mentioned) could be due to a combination of the particular model I purchased (UL) and the fact that I purchased mine back in 8/06...meaning that I doubt a '07 model purchased in mid-'07 would still carry the same residual percentage as that of an identical '07 model purchased mid-'06...but I could be wrong here.

    In any case--if indeed there is no sales tax on vehicle leases in your state, then based on the numbers you provided (including the revised lease term of 35 months), your pre-tax monthly payment calculates to roughly $640/month, so the quoted rate isn't THAT ridiculously far off...IF some sort of sales tax was factored into that quote.
  • 4barbara4barbara Posts: 46
    What would you say for a price for 12k per year on a 350.
    My wife also has a ES300 2003 with only 32k on it White/Tan interior and have 4 payments of $525 left.
    How does this factor into the equation?
    Today at the Keyes Lexus in Valencia, Ca we were quoted first
    $594 with $3500 and with the trade-in. Then after we squwaked because we already had 2 Lexus's from the same dealer they reduced the price. $564 w/ $974 down and 12k miles per yr.
    In both cases the lease was 48 months and they never even did the credit check.
    PLEASE!! What's your opinion.
  • valewvalew Posts: 1
    The following is an offer we got on ES350 with premium plus pkg. We would appreciate your opinion on this offer.

    Suggested price $38,200
    12,000 miles per year
    $450(including tax) per month
    36 months
    $3,000 out of pocket (includes tax and others)

    Thank you for your input.
  • mrtrancemrtrance Posts: 93
    I'm in the market for 07 ES350 with Premium Plus/NAV/HID/Preferred Accessory Package. MSRP is $40,627. Carsdirect has it for $36,166. Do you guys think I can get this vehicle for $35,000 + TTL? Anyone know the residual and MF for 12K/36mo lease for August? I think my price is like $1200 under invoice I believe.
  • olegoleg Posts: 12
    I HAVE quote $ 33500
    LEASE 12k 36MON.
    0 DOWN JUST UP FRONT COST + 9MSD
    $470 MONTHLY PAYMENT(INCL.7% TAX)
    IS IT GOOD DEAL?
  • mrtrancemrtrance Posts: 93
    What is the MF without the multiple security deposits? Can you also post your residual value? Thanks.
  • olegoleg Posts: 12
    MF 0.00245
    R.V. 55%
  • Hello,

    I have never leased a car before. I am considering a lease for an ES350. At the end of a lease, when you turn the car in, what determines "normal wear and tear?" If it is spelled out in the agreement, or if there is some standard practice used by Lexus to assess the car, could someone help me with some details on that?

    This is the one thing about leasing that worries me the most, turning in a car and getting hit with unexpected charges.

    What has been the experience with Lexus Financial?

    Thanks in advance
  • No problem, blue. Down payments are different than security deposits. Down payments aka capitalized cost reductions reduce the amount that you are financing in your lease. Once you make them, the money is gone. Banks often provide a reduction in the money factor that is used to calculate a vehicle's monthly payment to consumers who make security deposits. Specifically, IFS provides lessees with a .00010 reduction in their money factor for each additional deposit they make after the first. The great thing about security deposits is that you actually get them back at the end of your lease, unlike down payments which just disappear.

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  • Hi phead2. I don't believe that Lexus is providing lease support on the ES 350 this month. Through October 1st, Lexus Financial Services' buy rate lease money factor and residual value for a 36 month lease of a 2007 ES 350 with 12,000 miles per year are .00285 and 54%, respectively. The numbers for an otherwise identical 48 month lease are .00285 and 44%. This lease program may vary slightly by region.

    Car_man
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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??
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