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2013 and earlier Lexus RX 350 / RX 450h Lease Questions

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    malenkymalenky Member Posts: 16
    With such residual and money factor you should do much better on the monthly payment. I assume the financing is with Hann. I got a quote (after extensive negotiating) for 30 mo lease with first payment and plate fee up front at $530 a month, Prestige Lexus on Rt 17 in NJ. Money factor seems a bit high, can someone help?
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    kblalitkblalit Member Posts: 3
    hi
    Did you pay any up front payment like me or just plate fee and first month payment of $530 only. I did not take the delivery so far. Would please help me how to proceed further with this car dealer? The dealer is insisting to take delivery tomorrow on Monday. Please help.
    thx a lot
    kblait
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    xtonyfxxtonyfx Member Posts: 14
    Hi Car_Man,
    Can you tell me what the lease price s/b on a 2006 awd, purchase price of 38,400.

    thx
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    malenkymalenky Member Posts: 16
    I didn't get the car yet; I'm still shopping around. The quote I got was with no other fees up front besides first month and plates.
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    mikedustmikedust Member Posts: 3
    Car man, can you tell me what the residuals are for a 2006 FWD on a 48 month lease with 15k per year during the December to Remember sales evnt.

    Thanks
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    xtonyfxxtonyfx Member Posts: 14
    on the same car was quoted 539. month for 48m/12k yr, including txs, oop was approx 1700.
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    jeroldjerold Member Posts: 2
    I noted your comments which I appreciate since I am about to go into the same type of lease. I have a rough quote of $550 a month which sounds good.

    New Question for you...

    I currently have a 20054 Lexus RX330 with a a lease due to expire in April and a buyout price of $25,618 from Chase Auto Lease.

    I want the dealer to take me out of this lease which he may be able to do.

    The car is in good condition with 38,000 miles. It has new tires, no navigation or fancy stereo. it has a moon roof, leather interior, etc.

    Chase does not seem to want to negotiate the price. I would like to end the lease now and pay it off.

    Your advice?
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    I'd be happy to help you out, highfidelity. According to my calculations, if you were to lease a 2006 Lexus RX 330 AWD without the navigation or entertainment systems with an MSRP of $44,000 and a selling price of $39,000 through Lexus Financial Services right now for 36 months with 12,000 miles per year, its zero down, pre-tax monthly payment should be around $509.

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi kblalit. You never mentioned the selling price or MSRP of the RX 330 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 truck'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 on this deal if you let me know what these numbers are.

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi nc_driver1. I suppose that any posts on the IS 250 should go in the discussion about its predecessor, the IS 300. I haven't seen this car's residual values yet, but I can tell you what its money factor should be like. This is the most important number anyhow because dealers do not have the authority to alter banks' published residual values. If you were to lease a 2006 Lexus IS 250 through Lexus Financial Services right now for 36 months, its buy rate lease money factor should be .00245, assuming that you qualify for its top credit tier. There already is a prices paid discussion for this car: "Lexus IS 250/IS 350: Prices Paid & Buying Experience".

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Greetings talker. You never mentioned the selling price or MSRP of the RX 330 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 truck'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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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello xtonyfx. I'd be happy to give you an idea of what the lease payment should be like on the truck that you are considering. However, in order for me to do so I need some additional information from you first. This info includes this truck's full MSRP (including the destination charge), how long you want to lease it for, and how many miles per year you need to be able to drive it.

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Here you go, mikedust. If you were to lease a 2006 Lexus RX 330 FWD without navigation or the entertainment system through Lexus Financial Services right now for 48 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00225 and 46%, respectively.

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi jerold. I am sorry to say that it is usually fairly expensive to get out of leases well before their scheduled end dates. In order to do so, you need to purchase the vehicle that you are currently leasing from the bank that you are leasing it through. It often turns out that it costs more to do so than your vehicle is worth on the open market. Furthermore, many banks expect consumers who end their leases early to still make all, or at least the depreciation portion of their remaining lease payments. As you can see, this can get very expensive.

    You can determine approximately how much it will cost you to get out of your current lease by comparing its purchase price to its value on the open market at this time. You should place a call to the bank that you are leasing your vehicle through to find out its exact price. Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". One of our most knowledgeable community members, Terry, frequents that discussion and he is often kind enough to give community members who give him an accurate description of their vehicles with his opinion on their value. Don't forget to check to see if you are still on the hook for your remaining lease payments. The difference between your leased vehicle's current value and how much it will cost you to buy it plus any remaining lease payments that you are obligated to pay will equal the cost of getting out of your lease right now. You may find that you are better off waiting until you are closer to the scheduled end of your lease to get another new vehicle.

    Car_man
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    xtonyfxxtonyfx Member Posts: 14
    Hi Car_Man, Thanks for the reply, I actually went ahead and did the lease on this. THe MSRP was 43,358. (w/dest). Selling price was 38,543. The lease is for 30M/10K. Only oop were the usualy fees. Ended up paying 490. month (incl txs), also had an offer for 48M/12K at 530. month. Think this was a good price from reading all the posts here. What do you think?
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    malenkymalenky Member Posts: 16
    How much were the fees and for what, please?
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    xtonyfxxtonyfx Member Posts: 14
    fess were 1674.00, 1st month, 490.,acquisition 795., doc fees 149., regy 232., Prestige Lexus Ransey NJ. Internet salesman. Tell him Tony sent you.

    good luck
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    highfidelityhighfidelity Member Posts: 24
    Car_man,

    I am currently leasing a 2003 RX300 (last year of old body style) for $514 after tax. My 39 month (12k/year) lease ends at the end of March 2006. The car has very low miles (21k) and is in good shape, also, I am pretty happy with the car as I prefer this body style to the new one. I would really like to move to a RX330 but rates and and prices have gone up and its just not as good a lease as my RX300, plus the whole timing of the deals going on now and when my lease actually ends is making this process very annoying. A friend said that I should ask LFS if I can extend my lease (through say the end of 2006). He also suggested I try asking for the remaining 9 months with no miles associated with them (as the car has low miles), in hopes of possibly getting a lower payment.

    Does LFS typically allow extending of leases? Am I silly to think I might be able to get a lower payment by asking for no miles?

    Thanks (sorry if this is a tad off topic of rx330 leases).
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    cartalk1cartalk1 Member Posts: 13
    Car_Man,

    $39K seems to be a pretty aggressive Cap Cost.($5K off MSRP) based on other Forum entries. Are you sure that's reasonable? Second, with those numbers and a 57% resid and .00225 MF (Dec. to Remember), I'm not able to come with $509 (seems too low). What am I missing? Don't get me wrong, $509 seems great, just want to make sure before I ask a dealer for it. Thanks.
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    mikedustmikedust Member Posts: 3
    Hey Car_Man, maybe you can help me understand a recent lease. I leased a 2006 FWD last week and agreed with the dealer on price, and trade-in. Then using the December to Remember money factor and residuals I came up with a monthly payment, which the dealer agreed with although he did not want to discuss what money factor he was actually using. Then when he wrote up the lease contract he increased the amount for my trade-in and reduced the amount paid for the car. Payments came out the same so I didn't really care since I feel I got a fair deal. However, the only thing I can think of that he did to offset these price reductions he wrote in the contract was to increase the money factor. What motive would he have for doing this? Does he receive kickbacks from LFS for any loans above the base rate money factor? Or can you think of any other reason for doing this?

    Again, I am happy with my deal but am just curious and perhaps it would help others if this were known.

    Thanks.
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    lexleaselexlease Member Posts: 9
    Car_Man: You helped me lease an ES330 2 years ago. This time, I need the money factor and residual for leasing a 2006 RX330 2WD, w Nav & ML audio pkg, towing pkg, 18" wheels, cargo mat, wheel locks. MSRP is $44,668. Sales price will be $38,900. 36 mo lease with 12k mi/yr. Can you estimate the monthly payment before taxes and fees? Thanks for hosting this forum.
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    someguy1someguy1 Member Posts: 42
    Car_Man

    RX330 with Nav agreed selling frice of $40,000. 15K miles a year. $1,500 down for 36 mo. Can you figure the monthly?

    Thanks
    KA
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    malenkymalenky Member Posts: 16
    Folks, just got a quote on 2006 RX 330 AWD with Prem. Plus package (w/o Navigation) at $495 a month including 6% tax with LFS for 36 months @ 12K a year. Out of pocket $495 First Month, $600 Bank Fee, $265 NJ Reg. and Plates, about $1350. Is this a fair deal? MSRP for the car is $43,400 and my estimate for the selling price is under $38K - just a few bucks over invoice. Where is the dealer's profit? Also if I leave 9 security deposits the payment goes down to $449 including 6% tax and $1350 out of pocket. The deposit is 9 x $450 = $4050. Has anybody done multiple security deposits with Lexus Financial Services?
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    briegelbriegel Member Posts: 139
    That sounds like a very good deal! I did multiple security deposits on my current LFS lease of a 2005 RX 330...it's a better way to go than using that money as a down payment. You get that money back at the end of the lease and lower payments, giving you a better return on the money (even though a down payment will lower your payment more than the extra security deposits). Carman can tell you more about this. Go for it!
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    cartalk1cartalk1 Member Posts: 13
    Just curious . . . where'd you get this deal in NJ? I just did the best I thought I could on the same vehicle with the same stats and the selling price is $39K and $550 a month. Sounds like you got a fantastic deal.
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    malenkymalenky Member Posts: 16
    Actually a few dealerships offered almost the same deal: DiFeo, Prestige, Lexus of Englewood. You have to bargain a lot and know the tricks they pull on you plus it's December to Remember, I think dealers must meet the yearly quotas or get an extra discount or something....
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    No problem xtonyfx. It looks like you got a good deal to me. Enjoy your new truck :D .

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi highfidelity. Most banks will allow their current lessees to extend their existing leases for a couple of months. I don't know if LFS will let you extend your lease nine months though. Furthermore, I've never heard of anyone altering their mileage allowance on a lease extension.

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi cartalk1. $5,000 below MSRP sounds very reasonable to me. This is a very good price for an '06 RX 330. A base 2006 RX 330 has a spread of only just over $4,300 between its full MSRP and selling price. I just double checked my calculations and I again came up with $509 per month for the lease that you described. Perhaps the formula that you are using is wrong. The formula that is used to calculate lease payments is outlined in the following article: Calculate Your Own Lease Payment.

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi mikedust. Dealers to receive kickbacks from banks is they mark-up vehicles' lease money factors, but most dealers would rather make a profit from the selling price of vehicles than by marking-up rates if at all possible because banks' usually take a chunk of the profit from mark-ups. So I'm not sure exactly why the dealer that you are working with did this. As long as you are happy with this deal and the payment came out to what you expected, that's the important thing.

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Welcome back, lexlease. If you were to lease a 2006 Lexus RX 330 2WD with navigation, but without the rear entertainment system through Lexus Financial Services right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00225 and 56%, respectively. Using an MSRP of $44,668 and a selling price of $38,900 (which is very attractive btw), I estimate that this truck should have a zero down, pre-tax monthly payment of around $530.

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Greetings someguy1. I would be happy to estimate what your lease payment should be on this truck for you, however in order to do so I need you to tell me its full MSRP, including the destination charge.

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello malenky. this looks like an excellent deal to me. If you like the truck, I don't see any reason not to pull the trigger on this deal. Also, if you have the money to make them, additional security deposits are a great way to lower your vehicle's payment. They certainly are a heck of a lot better than making a down payment because at lease-end you actually get the money back. I estimate that you would be getting over a 13% annual return on your investment, not compounded of course, by making the additional deposits which is pretty good.

    Car_man
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    vt100vt100 Member Posts: 4
    Hello Car_man! I would appreciate if you could let me know what should my target monthly payments be if I'd lease 2006 RX 330 AWD Premium Plus w/Navigation, 18" wheels, etc...
    the MSRP quoted from lexus website is 45,753.00
    I would be leasing it from a dealer in Tri-state area (NY, NJ) if that matters. thanks in advance!
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    malenkymalenky Member Posts: 16
    I think you can negotiate down to the Invoice price of the vehicle. Dealers are eager to move the inventory, I've even got an offer for $500 below invoice. There must be some hidden dealer's incentive... The best deal I've got was $495 including 6% tax with only inception fees up-front. MSRP of the vehicle is $43,400.
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    rlb1957rlb1957 Member Posts: 4
    Hi,

    I'm trying to decide whether to lease or buy a 2006 Lexus RX 330 at $39,000 (sticker is $42,093). Haven't received a worksheet from the dealer yet, but assuming the residual percentage and money factor will be typical for the "December to Remember" period. Both lease and loan will be for 36 mos. Interest rate for loan is 4.0% through my credit union. Mileage max for lease will be 12K. I do plan to make the max number of security deposits on the lease. If I bought it then sold it after 3 years, would I come out ahead compared to if I leased it? Thanks.

    rlb1957
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    lexusctlexusct Member Posts: 6
    Car_Man please provide additional info about these extra security deposits. I would be interested in finding out how they work and what I need to do to get them.

    By the way - I am interested in a 2006 RX 330 with Navi.
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    rlb1957rlb1957 Member Posts: 4
    I too am interested in this tactic. Anyone have firsthand experience in doing this? Is it offered through Lexus Financial Services? Thanks.

    rlb1957
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    malenkymalenky Member Posts: 16
    Just got 2006 RX 330 from Lexus of Englewood in NJ. $449 a mo / 36 mo @ 12K per year with LFS and $1350 out of pocket. $4050 security deposit (9x$450). MSRP $43,404.00, sale price #37,500, a few hundred below invoice.
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    rxcrazyrxcrazy Member Posts: 1
    Malenky

    I am looking to lease within a week from NJ. The deal you've got seems to be pretty good. Can u give me the details on Color/Options/etc. for this one. Can I use your name(I need full name or last name or some reference) if asks for.
    ------------------------------------
    Just got 2006 RX 330 from Lexus of Englewood in NJ. $449 a mo / 36 mo 12K per year with LFS and $1350 out of pocket. $4050 security deposit (9x$450). MSRP $43,404.00, sale price #37,500, a few hundred below invoice.
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    sued2005sued2005 Member Posts: 9
    After a couple of months researching, we are ready to buy the RX330. I was able to get a quote of 40,988 on an MRSP of 45,753 and 42,579 on an MRSP of 48,573. My question is what type of pmt would I be looking at for a 36 or 39 months lease with 15k mileage per year? Now that I reached my targeted price I don't want the dealer to do anything weird when I tell them I want to lease the car vs purchasing it. Thank you for your time!
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    sued2005sued2005 Member Posts: 9
    Tonight we went to the local dealership who promised via email that they could match another dealer's price. However, when we arrived, they showed us the invoice and said that the other dealer was giving us $300 under invoice and that they could only offer $500 over invoice. The price is still fair, but I am questioning their original promise. I have not picked up the car, just did the initial paperwork and will be handling the financing tomorrow and pick up of the vehicle. The MRSP is 48,573 and I am getting 43,179 locally. Or I could drive 2 hours to the Bay Area to save $600 and get a price of 42,579.
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    footwoodfootwood Member Posts: 16
    I am going to Ray Catena Lexus of monmouth on Friday to look at the Lexus RX330. I am always cautious when going to a dealer. What should I look for as far as a lease. I have looked at the prices people were getting on there cars. I just don't want to get nailed.
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    lex123lex123 Member Posts: 1
    Car Man, can explain why the multiple security deposits is a good deal? Yes, it lowers your monthly lease payment but you essentially tie up a huge amount of money that is better off invested elsewhere (i.e. ING, a 4% one year CD). From what I understand, you are lowering your money factor slightly by doing this. Let me know what I'm missing.

    Thanks
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello vt100. You never mentioned the selling price of the RX 330 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 truck 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 work up a sample lease payment on the truck that you are interested in for you if you let me know what its selling price is. You should be able to get an idea of how much you should pay for this truck by visiting the following discussion: "Lexus RX 330: Prices Paid & Buying Experience".

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi rlb1957. Lease payments are made up of two main parts, the interest portion and the depreciation portion. The depreciation portion is the difference between your truck's MSRP and what Lexus believes it will actually be worth three years from now (or however long your lease is for) divided by the number of payments. It is difficult to predict exactly what the future resale value of this truck will be. However, theoretically assuming that you pay the same interest rate you should come out about the same by leasing this truck for three years and by financing it for three years and then selling it or trading it in.

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi lexusct. All you need to do to make additional security deposits on your lease is tell the dealer that you want to make them. Most banks provide some sort of discount in the lease money factor that is used to calculate the interest portion of leases for each additional deposit. I am not sure of the exact reduction in money factor that LFS provides, but I suspect that it is around .00005 to .00010.

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi sued2005. Let's work up a sample lease payment on these trucks for you and see what we come up with. According to my calculations, if you were to lease a 2006 Lexus RX 330 4WD without the navigation or entertainment systems options with an MSRP of $45,753 and a selling price of $40,988 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 $566. The payment for an otherwise identical 39 month lease should be nearly the same. For a similar truck with an MSRP of $48,573 and a selling price of $42,579 I estimate that the 36 month, 15,000 miles per year payment should be around $572. Again the 39 month payment would be about the same.

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi footwood. If you are not all that familiar with leasing and how it works, 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.

    As far as what to look for goes, make sure to negotiate as low a selling price as possible for the truck that you want and that the lease money factor that is used to calculate your lease payment is in line with Lexus Financial Services' current buy rate money factor of .00225 (this assumes that you qualify for its top credit tier).

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi lex123. While you are tying up a significant amount of money by making multiple security deposits on a lease the return that you get on that money often exceeds the low returns that individual investors are able to get on safe investments right now. Let's say that Lexus Financial Services provides a .00005 reduction in money factor for every additional security deposit (it could very well be more than this). Looking at the lease payment that I just calculated for another community member, the normal lease payment on a 2006 Lexus RX 330 with an MSRP of $48,573 and a selling price of $42,579 leased through LFS for 36 months with 15,000 miles per year would be around $572. If you were to make 5 additional security deposits on this truck, with each one providing a .00005 reduction in its money factor, you would have to lay out $600 times 5 or $3,000. The .00025 reduction in money factor would reduce this truck's monthly lease payment by $17, for a total of $204 per year. A $204 annual return on a $3,000 investment is equivalent to an interest rate of 6.80%. Even with the conservative estimate on how much of a reduction LFS provides for each additional deposit this return blows away any return on investment that you could get from a CD.

    Car_man
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