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2013 and earlier Lexus GX 460 Lease Questions

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  • Hi researcher10. Lexus' "December to Remember" sales event started on November 23rd and it is scheduled to run through January 3rd. All of Lexus' incentives are scheduled to run for this time period. Of course, dealers can tell you that their offer for a vehicle's selling price is only good for a few days or through the end of the month, but if this dealer was willing to sell you this truck for this price then, they probably will be willing to so so in a few weeks. The lease money factor and residual value that you were quoted for this truck, .00120 and 60% for 36 months with 12,000 miles, are right in line with Lexus Financial Services' current program for it. The main thing that I don't like about this deal is the huge capitalized cost reduction that you are being asked to make. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your GX 470 would be exactly the same, regardless of whether you had put $3,500 down, or had made absolutely no down payment at all. Also, if the cap cost that you were quoted for this car is its selling price before the deduction of your down payment, it is attractive. However, if it is taking your down payment into account then this truck's selling price is way too high.

    Car_man
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  • Greetings Alex. If you were to lease a loaded 2006 Lexus GX 470 (with the Navigation and entertainment systems) through Lexus Financial Services right now for 30 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00120 and 61%, respectively. The numbers for an otherwise identical 36 month lease should be .00120 and 58%. Lastly, the numbers for an otherwise identical 39 month lease should be .00120 and 55%. The only model that Lexus traditionally provides special owner loyalty incentives on is the LX 470. On other models it will probably waive its security deposit requirement for returning lessees, but that's about it. This offer doesn't really apply right now anyhow given the fact that Lexus is waiving its security deposit requirement for all leases during the December to Remember event.

    Car_man
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  • Hi, I have been reading the recent posts on leasing a Lexus GX470. Never done a lease before, so I need some of your expertise before we begin :) With the December to Remember leasing program, which would be the better deal? Negotiating a 2006 or a closeout 2005? Either way, we want it loaded with the sport package. We are looking at negotiating a 36 month lease with 17,000 miles, zero money down and depending on what you suggest a possible trade in. The dealer had on his lot a 2005 loaded with a MSRP of $57,000 just to give you a ballpark figure for our area. My second question is, do you think we would get a better deal if we went directly though a leasing company vs. a dealer? In my research they say to remove the dealer and work with the leasing company because the dealer is merely acting as a middleman? I was curious as to what your take was on this. Thanks for you help!
  • Hi,
    You've quoted the money factor on current 36 mo leases as .00120 This is what a dealer quoted me too. Then when I accepted it, they said I didn't qualify. They told me my FICA score came back 50 points lower than what my own credit report showed. Do dealers have any flexibility, or I am just stuck? Can I do single payment lease to get the lower money factor? Any other suggestions on how to get the best deal?
    Thanks.
  • Hi, I forgot to ask. We are also considering moving in the next year. It is not definite, but highly possible. Some sites say it is ok and our payment would change due to taxes. Then other sites say do not do it cause it will cost you A LOT more $$. Which is true? I'm so confused.
    Thanks. My hopes are to have a new vehicle by Dec 21st...in time to travel home for the Holidays.
  • Hi Car Man:

    Please advise MF and res for a Lexus GX470 for 36mos/15k per year. Thanks! I see 36/12k above but not 36/15k. Thanks.
  • phat3phat3 Posts: 2
    Hi car man,
    gpt a quote from a leasing Co.MSRP is 53,000 @36mos. and 15,000 miles per year montly payment is 588.00 . The car has DVD entertainment and NAV. T.O.P. is 4,000. I know you would advise not that cash out of pocket but my husband feel this is the only way to keep his payments in the 500s. Please hurry with your advise the deal may happen this weekend. Thank a Million : Phat3
  • Greetings gemini64. 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.

    If you are able to negotiate a low enough selling price on a 2006 model, and according to what I hear consumers have been able to negotiate huge discounts recently, leasing one instead of a 2005 model is definitely the way to go.

    The vast majority of banks will not lease vehicles directly to the general public. The ones that are likely to have the best lease program on this car, like Lexus Financial Services and Hahn Financial, definitely won't. So you will not be able to get a better deal by working with a bank directly to lease your new car and will have to work with a dealer.

    Car_man
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  • Hi genemachine2. In order to get the lease money factor that I mentioned, consumers must qualify for Lexus Financial Services' Tier 1+ credit tier. I don't remember the exact cutoff for this tier, but I believe that it is around 730. Even if you don't qualify for this Tier, you still should be able to get a low money factor, just not quite as low as the top tier would get. You should be able to lower this money factor by pre-paying your lease or by paying additional security deposits if you want.

    Car_man
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  • Hey gemini64. Moving with a leased vehicle should not be a problem. Each state has its own rules on sales and personal property tax, to they are difficult to generalize about, but even if you do end up owing tax on your leased vehicle it probably will not be all that much.

    Car_man
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  • Hi chrismang1. The money factor for a lease with 15,000 miles per year would be the same as the one that I mentioned earlier, but its residual value would be 2% lower than LFS' 12,000 miles per year residual.

    Car_man
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  • Hi Phat3. You never mentioned the selling price of the truck that you are interested in leasing. This is an important number 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 the price of the GX that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to give you my opinion on this lease if you let me know what the selling price is.

    Car_man
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  • phat3phat3 Posts: 2
    Hi, car man sorry about not mentioning the selling price. However the MSRP is about 56,841 including Nav and DVD system. what would be the best neg. price for this vehicle. Remember the total out pocket was 4,000. and a quoted price of 588. per mo. Thanks a Million Phat3
  • hpthpt Posts: 3
    Hello, car_man. Looking to purchase a GX470 by year end. Have never leased before and local dealer is strongly suggesting lease is the way to go. Numbers, however, don't seem close to what I see on this forum. MSRP of quoted vehicle is $53,800. Lease is 48 months at 15K miles per year. Money factor is .00235. TOP is $3,145 (no security deposit and $1,500 cap reduction). This TOP is conveniently covered by the $3,200 offered for my 2000 Dodge Caravan (68,000 miles). Will probably try selling that myself if I can't negotiate a better overall deal. Monthly payment comes to $694.75. Seems way too high based on what I'm reading here. I will end up going for a GX470 with the sports package and rear entertainment system so MSRP will be higher. But anyway, what do you think? Do I forget the lease and just go back to purchasing as I have always done? Don't quite know how to assess when the lease would be better than purchase.

    Thanks
  • Dear Carman,
    I would love your expert opinion. I visited a Lexus dealership in Raleigh and here is the deal they proposed after several hours.

    Lexus GX470 w/Nav, Mark Levinson Sound, Third Row, Rear Spoiler, Tow Hitch, Preferred Accessory Package.

    Lease 39month, 12K/year
    MSRP: $53576
    Final Price: $47535.00
    Residual: 56%
    MF: .00120
    Monthly Payment: $603.13 (already 3% sales tax included)
    First payment due at signing, 0 downpayment, 0 security deposit.

    Do I have any more room to negotiate or do I have the best deal available. I must admit, they were very professional and the best customer service I've received but I just hate the "process" of buying a car!
  • Just a note: be sure you qualify for that 120 MF. It only applies to the highest credit scores. I have excellent credit and thought I'd qualify, but at the last minute they told me I didn't, and the deal got significantly worse. Watch out for the B&S (bait and switch):)
  • Alright, here is the deal and car I received.
    Lexus GX470 w/Nam, Mark Levinson Sound, DVD, Third Row, Rear Spoiler, Tow Hitch, Preferred package.

    Lease: 39month, 12K/year
    MSRP: 55399.
    Final Price: 48216.00
    Residual: 55%
    MF: .00120
    Monthly Payment: $600.00 (already 3% sales tax included)
    First payment paid at signing, 0 down, 0 security dep.

    Any thoughts on the deal? This forum was a great help!!! I was first quoted $714.00 month.
  • hi,
    can u pl. let me know which delear/state you did this deal.
    i am looking at the exact same car with sports package
    MSPR 56891
    final price 51600
    residual 58
    mf .00160
    monthly 653 (tax for 36 months paid upfront)
    first payment is taxes, title,licencse,first month (around 2.4k)

    let me know please. i have to make up my mind by tomorrow..please
  • Raleigh, NC Johnson Lexus
  • kgb77kgb77 Posts: 3
    Hello, car_man. Just signed a deal with Lexus of Riverside. Lease is 36 months at 12K miles per year. Money factor is .00120. Total drive-off is $1000. Monthly payment comes to $549.50. incuding tax. MSRP of $53.5k (NAVIGATION)
  • No problem, phat3. I am not personally all that familiar with how much this truck is selling for right now, but you may be able to get an idea by visiting the following discussion: "Lexus GX 470: Prices Paid & Buying Experience".

    Car_man
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  • Hello hpt. Lexus' lease program for the 2006 GX 470 is very attractive right now. If I was in the market for this truck I would definitely lease it. Having said this, the lease money factor that you were quoted is much higher than Lexus Financial Services' current buy rate factor for this model. If you were to lease a 2006 Lexus GX 470 through LFS right now for 48 months, its buy rate lease money factor should be .00120, assuming that you qualify for its top credit tier. It appears to me as though the dealer that you are working with is trying to mark-up this truck's base money factor to add additional back-end profit to your deal. This practice is completely legal and fairly common, but can usually be avoided by consumers who know what their vehicle's money factor should by by confronting the dealer that is trying to mark their lease up or by shopping around.

    I notice that you mentioned you might make a $1,500 down payment on your lease. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your GX 470 would be exactly the same, regardless of whether you had put $1,500 down, or had made absolutely no down payment at all. You can still trade in your Caravan if you want to, just have the dealer cut you a check for it rather than using the proceeds as a capitalized cost reduction for your lease.

    Car_man
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  • Greetings banneheim. The selling price that you were quoted for this truck looks good to me. Furthermore, the lease money factor that the dealer told you they are using is right in line with Lexus Financial Services' buy rate lease money factor for this model right now. Both of these things are good signs. I personally don't think that you have much more room to negotiate here. Using the numbers that you provided in your post, I estimate that this truck should have a zero down, pre-tax monthly payment of around $543.

    Car_man
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  • Congratulations on your new truck, kgb77. Thanks for taking the time to share the details of your lease with everyone. Enjoy!

    Car_man
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  • bodhi2bodhi2 Posts: 5
    Dear Banneheim,
    Can you please give the detailed specs of the GX470 as well as the detailed formula of your lease deal one more time please.
    I will try and mimic the same deal in Illinois.
    Thanks for your help.

    Best Wishes,
    Bodhi
  • Bodhi,
    2006 GX 470 , NAV, Mark Levinson Audio, RSES(DVD), Third Row, Hitch Bracket, Preferred Accessory Package, Cargo Mat, Net and Wheel Locks, Rear Spoiler and Tow Hitch.

    Final Price: 48216.00
    Fees: 1025.00
    39 month lease, 12K year, 55% residual, .00120 MF
    Payment : $600.00 month (includes NC 3% sale's tax), 0 downpayment, 0 security deposit.

    Hope this helps.
  • hpthpt Posts: 3
    Thank you, Car_man, for the advice. One follow-up question. Now that the "December to Remember" even is over, do you know what the lease money factor is likely to be?
  • bodhi2bodhi2 Posts: 5
    Thank you so much Banneheim.

    Best Regards,
    Bodhi
  • magee1magee1 Posts: 2
    I can't see how in the heck you can come up with a payment of $543 on a 36-month GX470 lease. I've plugged the numbers into Edmunds' lease calculator

    MSRP $50,050
    Purchase price $44,500
    Residual (58%) $29,000
    Mileage allowance 45,000
    Money factor .0021

    And with nothing down, the payments are pushing $800. (The dealer quoted me $857.) Am I missing something?

    Please help.

    Thanks
  • kyfdxkyfdx Posts: 27,906
    Using your example... I get $585/mo. plus tax..

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