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2013 and earlier Lexus ES 350 Lease Questions

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Comments

  • 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.
  • Hi Carman,
    Could you please let me know what is the current Lexus 350 lease promotion under this year-end event?
    I qualify for a Tier 1 credit.
    Thanks a lot.
  • I have been quoted a residual value of 55% and a .0023 money factor on a 3 year lease for a 2008 ES350 with 12000 miles/year? Any feeling as to whether these are high/low, reasonable/unreasonable numbers?
  • I understand that the next round of Lexus lease incentives is July. Does anyone know the difference between the July incentives and the December to Remember incentives? Will I get a better deal by waiting until July with their incentives plus near the end of the model year? Are they anticipating making significant changes to the ES 350 for 2009? When do the 2009's come out?
    Thnaks for info.
  • Those numbers are spot on.
  • I wanted to be sure of the post above. Is the Dec to Remember rates 55% and a .0023 money factor on a 3 year lease for a 2008 ES350 with 12000 miles/year?

    The IS money factor is .00155 so the ES would be higher?

    thanks..
  • also my lexus dealer says that the Money factor reduction is only .0008 with every multiple sec deposit.
  • Yes, 55% residual (36 mo/12k) .00230 buy rate MF on the ES.

    All models' money factors vary (set by the bank). The IS rate is much better than the ES right now.

    In regards to the MSD's. .00008 discount sounds about right. I've seen it from .00007-.00010. Unless LFS is paying you interest to hold "your money", no reason for a MSD. Just my opinion, of course.

    Good luck!
  • robpacrobpac Posts: 2
    Have they posted the new residuals and money factors for ES350? The local dealer website is still showing the "December to Remember" event although it says it expired 1/2/08.

    Thanks.
  • nomisnynomisny Posts: 11
    15k/year, one luxury package ($3,820) most options -- NO navi.
    MSRP = $38,405.00 incl. destination.
    Any ideas on what a good payment would be?

    I'm in the NYC area. Thanks.
  • Hi robpac. Lexus has published its new January lease program for the 2008 ES 350. Unfortunately it is not providing lease support on it this month. 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' current buy rate standard lease money factor is .00255 for consumers who qualify for its Tier 1+ credit tier. Its residual values for the '08 ES 350 vary by term and mileage allowance. The 36 month, 15,000 mile per year for one without the Ultra Luxury package is currently 54%.

    Car_man
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  • Hi nomisny. The car that you mentioned probably has a spread of around $4,400 between its full MSRP and its dealer invoice price. I will work up a sample payment for you, assuming that you are able to get it for around $1,000 over invoice. It will probably take a dealer discount of around $3,400 to get there. If you are in an area that has a decent level of competition, you may be able to do better than this. 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 similar cars lately.

    According to my calculations, if you were to lease a 2008 Lexus ES 350 that has an MSRP of $38,405 and a selling price of $35,005 through Lexus Financial Services right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment would be around $539.

    Car_man
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  • Hi Guys - this is a wonderful forum. My last month of my current lease is April. I know intrest rates have fallen recently. Am I better off waiting to lease my new ES350 until April - or do it now when rates have dropped a bit? There is no penalty in the lease after March 5th... Can you advise the current MF's - and whether a 36, 42, or 48 month lease is best?

    Thanks
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    I'm glad that you enjoy this forum so much, skywalker3333. Here's Lexus' new lease program for the ES 350. If you were to lease this car through Lexus Financial Services prior to March 31st, its buy rate lease money factor and residual value for a 24 month lease with 15,000 miles per year would be .00155 and 60%, respectively. The numbers for an otherwise identical 36 month lease are .00155 and 54%. Its 48 month numbers are .00155 and 45%. If the vehicle that you are currently leasing is also an ES 350, you are eligible for a special $1,000 owner loyalty incentive if you lease a new one. Make sure to take this cash into account when negotiating your car's selling price. It is difficult to say what this car's April lease program will be like. There is a chance that LFS will enhance its money factor slightly, but I believe that it is scheduled to publish its second quarter residual values in April. Any drop in this car's residual values, which is likely, would at least partially, if not entirely, offset any improvement in the money factor.

    Car_man
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  • smith83smith83 Posts: 46
    Hi Car_Man.

    I have been offered the following deal on a Lexus ES 350:

    MSRP w/XM $37646
    Sale Price for March $35000
    Lease End Residual $18528.84
    Money Factor .00205
    36 mos. @ $619.59 w/$619.59 total down

    What do you think?
  • sextonmsextonm Posts: 1
    Hey Car Man,

    I'm in the process of evaluating a first time lease agreement and I wanted to run the numbers by you to get your opinion.

    For the 2008 ES 350:

    MSRP $42,300

    Sale Price $39,900

    term 36 months

    Residual money factor 54%

    Money Factor .00265

    The concern that I have is the money factor. Does this number look high to you? What's the typical money factor range and can this number be negotiated?

    Also, is it recommended to go with as little money down as possible?

    thanks,

    Sextonm
  • Lay it on me....is this a good one?

    24 month
    12000 miles
    MSRP 37,8000 (no Nav)
    selling at invoice of 33861,
    $1000 out of pocket,
    62% residual, .
    00155 buy rate on money factor,
    payment of 545.88 +tax = 588.10 inc tax.
    Offer ends by March 31.
  • Car_Man is a busy guy so I'll step up on this one...

    Residual value is correct. Current LFS base rate is .00155. If your credit is 720+, you qualify for LFS Tier1+ credit tier and should be given the above rate. You need to ask for it, otherwise they'll take advantage and "mark the rate up" as they have done thus far @ .00265.

    If you live in a competitive region, they need to reduce your cap cost (selling price) by another $2000-$2500 to get you right around invoice.

    Lexus charges a $600 lease acquisition fee on this vehicle and most dealers will cap the cost into your lease, however, you can pay it upfront or as part of your drive offs. The figures below represent payments with and without the acq fee capped into your payments.

    Judging by the numbers you've provided, they're probably quoting you between $638 and $655 + tax. Realistically though, with a more aggressive cap cost/selling price and utilizing the buy rate money factor, payments should be more in-line of $510 - $527 + tax.

    Do not make a down payment/cap cost reduction on a lease. Just pay your 1st mo. and dmv fees upfront. Again, you can pay the acq fee upfront too, or cap it into your lease. There might be a security deposit required. Have to check, but willing to bet it's waived for tier 1 + customers.
  • Numbers look pretty much right on... go for it!
  • From what I can tell, this appears to be a good quote - comments?

    ES 350 MSRP 37800
    $2,812 discount
    no NAV, but standard upgrade pack
    tax included
    acq fee rolled in
    no down
    1st payment included
    15,000 miles per, 48 months
    511.34 month
    central ohio
    by march 31
  • sprolisproli Posts: 1
    Am looking to lease in the Miami area this month, as my current car lease is up. Does anyone have figures for April? An incentives? Would like 36 or 39 month lease. No money down (advisable). Leasing prices, etc. Would appreciate any imput ASAP.. Thanks. Miami Gal
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