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2013 and earlier Lexus ES 350 Lease Questions

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Comments

  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hello heidibrat. You never mentioned the selling price or MSRP of the car 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 car's selling price 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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  • heidibratheidibrat Posts: 2
    Car man,

    The MSRP is $37,387 (includes destination), the selling price is $33,904. Term is 36 months, 15,000 mi per year. My down payment is $925 with $588 in monthly payments. My credit score is 764. Is this a good deal? THANKS!!

    Heidibrat
  • tdohtdoh Posts: 298
    Given the additional info you provided in your post #173, I'd say that $588/month is a bit too high. Granted my lease is 36/12K, but MSRP on my ES (UL w/ nav) was $44288, w/ a selling price of $39963...yet my payments are pretty much identical to what you were quoted; all I paid up front was the acquisition fee. I honestly would find it a bit hard to fathom that the difference in residual between a 36/15K and 36/12K lease would account for the $6000 difference in selling price...but maybe Car_man could very well prove me wrong since he is the expert when it comes to car lease figures.

    And oh yeah--my credit score was (unfortunately for me) quite a bit lower than yours...meaning that the rate I got was probably higher than what you may very well wind up with...thus making it a bit more harder to understand how your monthly payment could be the same as mine.

    FWIW--I notice you're in Roseville, CA (I'm from Rocklin); you wouldn't happen to be getting those quotes from Lexus of Roseville? I ask because when I was shopping for mine, L of R would not even touch the deal I got from Coliseum Lexus of Oakland (that was back in 8/06, but I would imagine L of R still won't be willing to compete w/ many of the Bay Area Lexus dealers since they really believe the majority of folks who live in the Roseville/Rocklin area must be earning tons of money). Guess where I wound up buying my ES from? Definitely not from Roseville... ;)
  • espo1espo1 Posts: 27
    Sorry put this in the wrong car category

    Hey car_man sent this to your email but repeating it here to make sure:

    Hey carman;
    i've least a couple of Lexuses(or Lexi) in the past. Both times I was able to use multiple deposits to lower the money factor. Was also able to do this with a BMW lease. Do you know if it is still possible with Lexus and what the discount would be per deposit? I believe the last time (on a 1999 GS400) it was .0001 per deposit.
    espo1 :confuse:
  • cllemonscllemons Posts: 2
    Thanks for all of your contributions you've made to this forum.

    I must admit that I am a beginner. I have not owned a car in seven years as I had a company car, however, a job change is requiring me to assume a personal car. That being said, I will only need a car for about 24 months and therefore am considering leasing. I have never leased before.

    I want to lease the 2007 Lexus ES350 (UL and NV option packages) for 24 months (FMV=$39574), with little or no money down and 12-15k miles per year. My credit score is 755.
    *I need to know what difference the downpayment makes in terms of anything beyond lowering your monthly payment?
    *What difference will the 24 month period make positively or negatively in the lease negotiation?
    *Is it better to lease directly from a dealer or using a third-party such as my local credit union?
    *I need tinted windows, as I live in AZ, how is that negotiated
    *Any other general tips as I begin to dive in?

    Thank you in advance,
    Nervous to lease
  • mmarketosmmarketos Posts: 6
    Interested in getting the lease price on the following ES350 (no Nav).

    Premium Plus Package Includes:
    - Leather-trimmed interior
    - Heated and ventilated front seats
    - Driver's seat power cushion extender
    - Lexus Memory System to control power driver's and front passenger's
    seats (except lumbar), outside mirrors and steering wheel
    - Electrochromic outside mirrors with tilt-down in reverse
    - Rain-sensing intermittent windshield wipers with mist cycle

    Additional Options:
    - Wood- and leather-trimmed steering wheel and shift knob
    - Bluetooth® Audio
    - Power rear sunshade
    - Full-size spare tire with 17-in alloy wheel
    - Rear seat side airbags
    - Preferred Accessory Package (includes Cargo net, Trunk mat and Wheel locks)

    MSRP is $38157...offered at $34798. Residual is $20604.78. First month down and monthly payment of $599 (includes 8.25% Tx tax) with a money factor of .0035. Everything sounds pretty good except the money factor as I believe it is a little high. The rep told me they can decrease the interest rate from 9% to 7.2%. Is this a good deal?
  • rozylexrozylex Posts: 1
    I am looking to Lease an ES 350 with the Ultra Luxury Package. The MSRP on the of the car is $44,411. I am looking to get the lease payment below $600 before taxes. Is that possible? What would be the going rate for that car?

    Anyone else recently lease one?
  • mmarketosmmarketos Posts: 6
    I don't believe it is realistic to get below $600. Mine was $34,700 and the payment was $599 (around 7% interest rate through Lexus leasing). If you can find an independent leasing company they may have a lower rate (I couldn't find one in Austin that beat Lexus). These cars are popular, so Lexus doesn't need to give great rates.
  • tdohtdoh Posts: 298
    Why not? Mine is an UL w/ MSRP of $44288 (purchase price $40K); after factoring in a drive-off of $1300, 7.25% sales tax, and non-Tier 1 rates (unfortunately for me, mine was even higher than yours) on a 3 yr/12k mile term, my lease payments are $587/month. I could only imagine how much lower it could have been if I had qualified for Tier-1 plus rates...

    To be fair--sales tax can affect how much your monthly payment can be ($6 for every 1% at $600); however, if your monthly payments are $599 on a $34,700 purchase price...either the sales tax in your state is really high, or maybe your term is a 3 yr/15k mile one?
  • tocapallatocapalla Posts: 16
    Hey tdoh. Where did you get your car? Do you know the money factor rates for non tier 1 credit? I just got quoted a ridiculous rate of $684. per month,for a 0 down, 12k mile, 39 month lease for a $36962 car (MSRP $41,521). He quoted the money factor rate as 3.55% with a 53% residual rate. This does not include sales tax! What should I counter with? THANKS!
  • espo1espo1 Posts: 27
    Tocapalla
    Are you sure about that money factor? Is it 3.55% or .00355? If so that would equal 8.52% APR. The 53% residual maybe OK you are way into the 2007 new car year. or because of the 39 month deal. Why 39 months? And not including sales tax. What state do you live in and what is there rate. In Pennsylvania although sale taxes is 6% leases are rated at 9%. O down is smart. Ask about buying down the money factor with multiple deposits.
  • tocapallatocapalla Posts: 16
    Just looked at the e-mail the salesman sent me and it DOES say 3.55 with the residual value of $21986. However, it was for 35 not 39 months. I'm in MS so there is no sales tax per se, but my tag will be around $900 up front. Isn't the 3.55% WAY too high? I think they are trying to make up for the MSRP discount on the back end, don't ya'll?
  • tampa350tampa350 Posts: 1
    Car Man,

    I'm in the market to lease or buy a 350 and was wondering what you think my payment should look like. MSRP $41,322. Negotiated price $36,980. Tier 1 credit. Looking at a 36 or 48 month lease with 21k miles per. Does it make more sense to buy? Why don't you suggest to put more money down on a lease or pay it off up front to save interest expense? Thanks for any help.
  • tocapallatocapalla Posts: 16
    I e-mailed the salesman and told him the 3.5 money factor was way too high. His reply was that the rates are controlled by the banks and this is the best he could do, but the $36962 price was $300 above invoice and I would not be able to beat it. Isn't this BUNK? Should I tell him I KNOW he can do better and offer a different rate and go elsewhere if they won't budge? We havn't gotten so far for them to check my credit, so I know that is not a factor. THANKS for any advice.
  • espo1espo1 Posts: 27
    Take a look at the deal. If they are leasing the car for a cost of $36962 and the Res. is $21986 than the rent is $14976 divided by the length of the loan 36 mon. So a part of your monthly nut is $416. That means that if there is no taxes figured in the deal your paying $268 a month finance charges ($684) which means your APR is close to 8% If your salesman is saying your money factor is 3.55 ask him is that the APR because money factors are in decibels. a normal money factor from Lexus Finance for excellent credit is .00275 which converts to an APR of 6.6%
  • espo1espo1 Posts: 27
    By the way how can they offer you a deal with out checking you credit? Your credit is a big factor in figuring the rate of finance charges which is the money factor.
  • tocapallatocapalla Posts: 16
    THANKS for all the help ya'll. To answer your question, I don't know. We were just communicating via e-mail. Wouldn't budge on the money factor, so no more communication. Which brings me to my next question,

    Anyone know the specifics of "The Event" lexus is now advertising? Money factor rates? Terms, etc.?
  • Please can any body here can confirm that we can reduce the money factor by .0001 per security deposit?

    Also, I would like to know what is the max no. of security deposits we can make at the time of the lease?

    Thank you,
  • espo1espo1 Posts: 27
    I believe every deposit lowers the money factor by .00008 and a maximum of 9 deposits for a total lowering of .00072.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi Heidibrat. The car that you described has a spread of around $4,300 or so between its full MSRP and its dealer invoice price. You are being a discount of a little over $3,400 on the car that you are interested in. That probably puts you at around $800 or so over invoice, which is a pretty good deal on a Lexus.

    If you haven't leased this car yet, you're in luck. Lexus recently enhanced its special lease money factor on it to .00245 for Tier 1+ customers for its new sales event. If you use the aforementioned selling price and this money factor to lease this car you are getting a good deal.

    Car_man
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