I would appreciate comments on the following lease quote in the NYC area: RX 350 36 mo lease, 12k miles, w/prem+, navigation and other options MSRP $45.7K selling price $41.4k monthly payment (without tax) - $546 resid $26.5k (58%) Money factor .00195 no cap reduction taxes paid upfront Other fees: Reg ($168), Acquisition ($650)
Car Man, I'm back again, and this is now I believe over 10 years since I have started using this site and your assistance. So anyway I am again in the market to Lease an 08 Lexus RX 350. I know that the deals are generally not as good now as they will be when Lexus announces their "GOLDEN OPPORTUNITY SALES EVENT," typically at the end of July.
So I will be looking for when you have some information available
You're absolutely right, briegel. In my dyslexic, pre-coffee state I flipped the 9 and the 1. A money factor of .00915 would be the highest factor that I have ever seen. That's even worse than those interest rates that we had back in the late 70s :surprise: .
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Hi dpeck1. The last time that I checked, consumers needed a credit score of 730 or higher to qualify for Lexus Financial Services' Tier 1+ credit tier.
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Hi dpeck1. You should be able to get an idea of how much you will have to pay for an EX 350 right now by visiting the following discussion: "Lexus RX 350: Prices Paid & Buying Experience". In an area that has a high level of competition like the one that you are in, shoot for as close a price to dealer invoice as possible. You may be able to get this truck for $500 to $1,000 over.
Lexus just enhanced its lease program last week. Its new buy rate lease money factor and residual value for a 36 month lease of a 2008 RX 350 AWD with navigation, DVD, and 12,000 miles per year are .00165 and 55%, respectively. I'm not sure if LFS offers leases with fewer than 12,000 miles per year.
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Hi pumpkleo. Are you sure that the dealer that you are working with is calculating your lease payment using a percentage of its selling price as the residual value? If they did, that is wrong. Vehicles' residual values are based upon a percentage of their full MSRPs. You can see exactly how lease payments are calculated by reading the following article: Calculate Your Own Lease Payment.
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Hi carlovernj. Let's work up a lease payment for you and see what we come up with. According to my calculations, if you were to lease a 207 Lexus RX 350 AWD without the entertainment system that has an MSRP of $45,600 and a selling price of $41,000 through Lexus Financial Services right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $528 assuming that you qualify for its Tier 1+ credit tier.
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Let's take a look at the deal that you were quoted, jbp2. The truck that you described has a spread of around $4,900 or so between its full MSRP and its dealer invoice price. You were quoted a discount of $3,800. This probably puts you at around a little over $1,000 over invoice. In a competitive market like New York, I personally would not be surprised if you were able to beat this price by a couple hundred dollars. Make sure to stop by the following discussion to see how much other community members have paid for similar trucks lately: "Lexus RX 350: Prices Paid & Buying Experience".
Once you have arrived at a selling price that you are happy with, make sure that the dealer that gives it to you uses Lexus Financial Services' new buy rate lease money factor of .00165 (for Tier 1+ customers) to calculate your monthly payment.
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Hello pinkissassy1. The truck that you are interested in, a 2008 Lexus RX 450 with the Premium Plus and Navigation Packages has a dealer invoice price of $40,674. The selling price that you were quoted is a little over $1,000 over invoice, which isn't bad but I would not be surprised if you were able to beat it by a couple hundred dollars in a competitive market like yours. Make sure to stop by the following discussion to see how much other community members have paid for similar trucks lately: "Lexus RX 350: Prices Paid & Buying Experience".
Once you arrive at a selling price that you are comfortable with, have the dealer that gives it to you calculate your monthly payment using Lexus Financial Services' new buy rate lease money factor of .00165 (for Tier 1+ customers).
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Hi eugened. You really need to find out this truck's exact selling price. If it is indeed a little over invoice, meaning $500 or so, this is an excellent deal. Just make sure that the dealer uses Lexus' new enhanced buy rate lease money factor of .00165 (for Tier 1+ customers) and you're in business.
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Hi redvelvet2620. Last week, Lexus enhanced its special lease money factor on the 2008 RX 350 to .00165 for up to 48 months for Tier 1+ customers. This truck's residual values vary by trim level, term, and mileage allowance. If you provide me with this information I will gladly give you an idea of what they currently are.
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Hey Gary. Wow, 10 years huh :surprise: . That's a long time. I bet we've both had a lot of changes in our lives since then. As you expected, Lexus introduced a new sales event at the end of July. Its new, enhanced buy rate lease money factor for the 2008 RX 350 is .00165 for up to 48 months for Tier 1+ customers.
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I would greatly appreciate advice if to take over this lease or to start a new lease. I will need the car by September or October, and I don't mind getting '07, if one is available new. Also, my credit rating is over 780...
I have emailed three lexus dealers around LA to look into a RX350 lease during the Summer Sales Event.
Only one dealership has gotten back to me. They said since my credit score is 709 that I am considered Tier 1.
These were the options they gave me. It seems a bit high.
$41,356 2WD with NAV Based on a Tier 1 credit score $1,000 drive-off's 36 mos. 12,000 months Payment: $ 610.30 (No Tax) a month
$42,769 with NAV & AWD $1,000 drive-off's 36 mos. 12,000 miles Payment: $621.72 (no tax) a month
$40,544 AWD No-Nav w/ Premium Package $2,000 drive-off's 36 Mos 12,000 miles Payment: $559.04
$40,544 AWD No-Nav w/ Premium Package $2,000 drive-off's 36 Mos 15,000 miles a year Payment $581.83
I was really hoping for a AWD, no nav with premium package with some down and 12K 36 month lease for around 450 a month. But I am starting to think this isn't going to happen.
I've been with BMW for the past 10 years and am now looking to get with Lexus. BMW allows dealers to mark up LRF by .0004. What is the max allowed by Lexus? Thank you.
i just picked up a black on black rx 350 with navi and premium plus package for 36 months, 500 a month and traded in other vehicle which the dealer gave me 8800 for. msrp was 45706. the 8800 covered downpayment, all taxes and fees. dealers in jersey are offering 469 for the basic car with 2969 down and 499 + 4000 down with navi and prem plus package.
I am trying to negotiate the best deal on a '08 RX350 FWD with Navigation package. I live in Metro Atlanta. The dealer has quoted the following so far: MSRP: $44416 Purchase price: $41900, money factor: .00225, residual 55% or $24429 for a 36 month lease with 15k per year. $688 per month with 1st month payment, tax, tags, fees down. Sounds high compared to what I've been reading. I would appreciate any help. Thanks
I thought Lexus was going to have very aggressive lease deals during this Summer Sales event but I was wrong. I was interested in getting the RX 350 AWD a few weeks ago, but I decided to wait until the Lexus Summer Event. The top tier money factor has been lowered from .00195 to .00165 for a 36 month lease, which is great, BUT the residual value has been lowered from 58% to 55%. This more than offsets the lowered money factor. I wonder if its possible to get a lease with the 58% residual.
I'm in the same boat as you (I think). I'm new to leasing and don't understand all the fine points, but the quote I got is much higher than what is posted above: 2008 AWD Premium Plus, no Nav Capitalized cost $40,000 36 mos 15,000 miles/yr ***wasn't told money factor or residual yet** $759/month $0 down, lease includes sales tax and 1st year license fee
Hi, I'm new to this forum. It has very good information about leasing and buying. I wanted to get some information on a quote I got recently. I'm got a quote from a Southern California lexus dealer on a lease of rx 350 wit premium plus package, no Nav 36 months lease, 15,000miles/year MSRP: 41,496 Cap cost: 36,760 including bank fee Residual value: 22,822 Money factor: 0.00165 for Tier 1+ and 9 security deposits= new money factor of 0.00093 15,000 miles / year for 36 months total due at signing: $5150 includes 9 security deposits Monthly payment of $470
Can anyone tell me if this is a good deal? should I pull the trigger and lease the car?
ahk9, beware of this deal. My '07 RX lease payment, which was purchased last August, was only $520 a month and I put less money down than what you are doing, although it wasn't through security deposits. The price of my car would have been slightly less because I only have the premium package. I can't help but think that your monthly payment should be less than $470 a month with the amount that you're putting down.
Hopefully, Carman can look at your deal and the numbers and would be able to tell you if this sounds like a reasonable deal.
You should not lease and sign anything until you have all the facts and figures. MF and residual should always be supplied so you know if you are getting ripped off or not. What is the MSRP on the car. 759 seems like a lot of profit margin built into deal
the "event" is coming to an end and I wanted to see what Carman and othe people had to say about this deal. Not that "the event" was a good sales event.... There is nothing special about this "the Event" by lexus. But still, I need to lease a car very soon. Here's the quote I received.
36 months lease, 15,000miles/year MSRP: 41,496 Cap cost: 36,660 including bank fee Residual value: 22,850 Money factor: 0.00165 for Tier 1+ and 9 security deposits= new money factor of 0.00093 15,000 miles / year for 36 months total due at signing: $5353 includes 9 security deposits Monthly payment of $472
The dealer told me this was about 1,250 below invoice. This was the best deal out of 5 different dealers. They said the cars are moving out faster and they can't lower their selling price. 2 months ago, I had a quote as low as 1750 below invoice. I guess it's all about supply and demand. Hey carman (or anyone else), what do you think about this deal?
Would like to know the 2007 Rx400h MF (tier1) and Residual Values for - - 24 mo. (is this available?) - 36 mo.
BTW, I understand that the residual values are non-negotiable but the MF is. Is this correct?
Also, according to the Lexus website, there is a '1pay lease' program which requires all the lease payments to be made upfront, but the total is lower than the total of the regular monthly payments over the duration of the lease. Any more info on this I can be armed with before talking to the dealer?
This will be my first lease. I have researched the lease info posted here and other websites and I think I have a reasonable handle on the mechanics. Besides the regular other costs for tax, title & reg, any other fees that I should be aware of?
"Money factor: 0.00165 for Tier 1+ and 9 security deposits= new money factor of 0.00093"
Here is an example of what this means...
For those with outstanding credit (Tier 1), some fund providers will discount the money factor if a customer agrees to pay multiple security deposits (MSD's). For instance, BMW Financial services was deducting 0.0001 from its money factor for each security deposit up to a maximum of nine (9). If the MF equals, say 0.00150, and you put down 9 security deposits, then your money factor becomes 0.00150 - 9 x 0.0001 or 0.00060. It was a great deal and a no brainer. Some folks were even taking out second mortgages to borrow the money so they could pay the security deposits! A second mortgage is around 7.5%. So, why would they borrow money to pay for security deposits? Because the equivalent after tax ROR is a whopping 18.75%!!! This assumes 9 security deposits; a 36 month lease with a $30,000 adjusted cap, and a residual of $20,000 for which the payment is $308 instead of $353. This equates to a monthly savings of $45 for 36 months. The 9 security deposits amount to 9 x $325 or $2,925.
2008 RX 350 FWD (Southern California - 8.25% tax):
Nav + Premium plus $3,000 drive off (includes $2K cap cost reduction, 1st month's payment, tax, registration, bank fees, etc.) $500 per month for remaining 35 months INCLUDING tax 57% residual after 36 months on a MSRP of $44,356 12K miles
I have to close on this tomorrow. Would appreciate any feedback.
Hi All. I've been reading some posts on this great board. I'm looking to lease '08 RX 250 AWD and would really appreciate if someone could direct me to the post that explains the terminology and how to come with a reasonable lease payment.
I'm in the NYC area, but can travel to NJ or dealerships outside of NYC. My local dealer said that in the North East, the RX only comes with the Premium Plus Package. Is that so?
The only quote I got so far last week was for $593/month with tax in the monthly payments, about $1,300 due at signing which basically contained a bunch of fees. I don't need Nav and DVD player in it.
Just trying to figure out how much I've getting ripped off!
John, Thanks for the detailed response and explanation. I've been leasing cars for twenty years and have never heard of MF reduction through MSDs. I've even asked Mercedes Benz Credit Corp. and others if they would decrease the "rent charge" as they call it by paying more payments up front (GM's one pay) and they said no!
Glad to see that some of these lease finance companies are getting a little more creative.
Below are some formulas and terminology that you might find useful...
First, there are three formulas that you need to understand.
(1) A = V + F - K
(2) R = Residual Factor x MSRP
(3) P = M x (A + R) + (A - R)/N
where:
A = Adj. Cap Cost
V = Agreed Upon Value (Sell Price)
F = Amounts Financed (capitalized) in the lease
K = Capitalized Cost Reductions
R = Residual Value
P = Payment (may or may not include taxes depending upon whether or not taxes are capitalized in the lease).
M = Money Factor
N = Term (months)
EXAMPLE
Now, consider the following hypothetical example...
MSRP = 37,000
V = 33,000
F = 600 (acquisition Fee)
K = 1,000
A = 32,600
Res. Factor = 54%
R = 0.54 x 37,000 = 19,980
MF = 0.00180
Term = 36 months
Base Payment = 0.00180 x (32,600 + 19,980) + (32,600 - 19,980)/36
= 445.20
I'm not sure how sales tax is computed in NY but I hear it's a real screamer. If NY taxes the payment streams and your sales tax rate is, say 6.00%, then
Payment w/ tax = 471.91
Items Due at Lease Signing...
1st. Payment = 471.91
Sec. Dep. = 475.00
TTL = 150.00
TOTAL DUE = 1,096.91
You may want to look at some of my sample lease proposals in this forum as well as others (e.g., Post #893 in the Lexus RX350 forum Prices Paid & Buying Experience" and #874). Or, just do a search on delta737h to see what I've posted in this regard.
If you still need some help, please fire away or email me and I'll be happy to provide any needed assistance.
You're very welcome, sbh. I'm glad that you enjoy this discussion so much. The best way to tell if a lease that you are considering assuming is a good deal is to compare its monthly payment to how much a similar brand new vehicle would cost to lease. It is difficult for me to come up with an exact comparison because I don't know how the model that you are considering is equipped, so for now I will just make some assumptions. According to my calculations, if you were to lease a 2008 Lexus RX 350 AWD that has an MSRP of $43,867 and a selling price of $39,684 ($750 over invoice) through Lexus Financial Services right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment would be around $534. As you can see, the lease that you are considering assuming is a pretty good deal, especially since you won't have to pay the security deposit, acquisition fee, etc... Plus, it's shorter than the lease that I worked up. The only downside to assuming it is that the truck isn't brand new.
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Hi brianwinchell. Are the prices that you mentioned in your post these vehicles' MSRPs or selling prices? The best way to get a good deal on a lease is to know what both of these numbers are. That way you can tell how much of a discount the dealer(s) that you are working with are giving you. I would be happy to give you my opinion of these deals if you let me know what these prices are. I think that the $450 per month target that you have for your truck's payment is a little too optimistic.
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Hi ckm1515. I don't know what the maximum allowable money factor mark-up for Lexus Financial Services, but as far as I am concerned it might as well be zero. I personally would not lease one from a dealer that was trying to mark my money factor up. There's enough competition out there that one should be able to find a Lexus dealer that will lease them a 2008 RX 350 using its buy rate lease money factor of .00195 (for Tier 1+ customers).
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Hi Ray. You never mentioned the selling price of the RX that you are considering 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 give you my opinion of this deal if you let me know what its selling price is.
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Here's the latest info for you, fx4me. Lexus Financial Services' current buy rate lease money factor and residual value for a 24 month lease of a 2008 RX 350 FWD without the entertainment system with 12,000 miles per year are .00195 and 63%, respectively. The numbers for an otherwise identical 36 month lease are .00195 and 57%.
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Hi jgebs. $688 per month sounds high to me as well. The truck that you are interested in has a spread of around $5,000 between its full MSRP and its dealer invoice price. You are only being given a $2,500 discount on it, so there may be a little room left to negotiate. Make sure to stop by the "Lexus RX 350: Prices Paid & Buying Experience" discussion to see how much other community members have paid for similar trucks lately. I wouldn't be surprised if you were able to shave at least another $30 per month off of this truck's payment.
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Wow, motis, $759 per month to lease an RX 350 :surprise: . That's way too much. Let's work up a sample lease payment on a similar truck and see what we come up with. According to my calculations, if you were to lease a 2008 Lexus RX 350 AWD with the Premium Plus package that has an MSRP of $41,625 and a selling price of $37,957 ($1,000 over dealer invoice) 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 $538. Even at $2,000 over invoice, the payment only increases to around $567. As you can see, the payment that you were quoted is waaaaay too high.
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Welcome ahk9. This looks like a good deal to me. Not only are you getting a substantial discount on the RX that you are interested in, but the dealer that you are working with also used Lexus' August buy rate lease money factor to calculate your monthly payment. I personally don't see anything wrong with pulling he trigger on this one.
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Hi lidocayne. I am not personally all that familiar with what the market is like for the RX 400h right now, but you certainly aren't being given much of a discount on the one that you are interested in. Three hundred bucks, why bother giving any discount at all at that point? Have you tried shopping around with another dealer or two in your area? If would be worth it to see if anyone else would provide you with a bigger discount. Also, make sure to stop by the "Lexus RX 400h: Prices Paid & Buying Experience" discussion to see how much other community members have paid for similar trucks lately.
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Hi ksrp. Your understanding is correct. Vehicles' residual values are set by banks and individual dealers really do not have the authority to alter them. Dealers do however have the ability to mark-up vehicles' money factors. That is why it is important to find out exactly what the buy rate should be for any vehicle that you want to lease before finalizing your deal. Unfortunately, I don't believe that Lexus is providing lease support on the RX 400h in September. As a result, if you were to lease one through Lexus Financial Services, you would have to use its standard lease money factor. I believe that its buy rate standard money factor varies slightly by region, but it probably is around .00285 right now for consumers who qualify for its top credit tier.
Lexus still charges interest on one pay leases, but it provides a .00100 reduction in the money factor that is used to calculate the interest portion of the lease.
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Comments
RX 350 36 mo lease, 12k miles, w/prem+, navigation and other options
MSRP $45.7K
selling price $41.4k
monthly payment (without tax) - $546
resid $26.5k (58%)
Money factor .00195
no cap reduction
taxes paid upfront
Other fees: Reg ($168), Acquisition ($650)
Thanks!
I'm back again, and this is now I believe over 10 years since I have started using this site and your assistance. So anyway I am again in the market to Lease an 08 Lexus RX 350. I know that the deals are generally not as good now as they will be when Lexus announces their "GOLDEN OPPORTUNITY SALES EVENT," typically at the end of July.
So I will be looking for when you have some information available
Gary W
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Lexus just enhanced its lease program last week. Its new buy rate lease money factor and residual value for a 36 month lease of a 2008 RX 350 AWD with navigation, DVD, and 12,000 miles per year are .00165 and 55%, respectively. I'm not sure if LFS offers leases with fewer than 12,000 miles per year.
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Once you have arrived at a selling price that you are happy with, make sure that the dealer that gives it to you uses Lexus Financial Services' new buy rate lease money factor of .00165 (for Tier 1+ customers) to calculate your monthly payment.
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Once you arrive at a selling price that you are comfortable with, have the dealer that gives it to you calculate your monthly payment using Lexus Financial Services' new buy rate lease money factor of .00165 (for Tier 1+ customers).
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Great discussion board... Thanks Car_Man!
I am considering taking over a lease on a RX350 AWD. I really advice if this is a good idea or not. Here is the specs:
Monthly payment: $470
Lease ends: July 19, 2009
Residual value: $24,199
Only other fee is $45.00 for credit check.
I would greatly appreciate advice if to take over this lease or to start a new lease. I will need the car by September or October, and I don't mind getting '07, if one is available new. Also, my credit rating is over 780...
Thanks for any advice on this,
SBH
Only one dealership has gotten back to me. They said since my credit score is 709 that I am considered Tier 1.
These were the options they gave me. It seems a bit high.
$41,356 2WD with NAV
Based on a Tier 1 credit score
$1,000 drive-off's
36 mos.
12,000 months
Payment: $ 610.30 (No Tax) a month
$42,769 with NAV & AWD
$1,000 drive-off's
36 mos.
12,000 miles
Payment: $621.72 (no tax) a month
$40,544 AWD No-Nav w/ Premium Package
$2,000 drive-off's
36 Mos
12,000 miles
Payment: $559.04
$40,544 AWD No-Nav w/ Premium Package
$2,000 drive-off's
36 Mos
15,000 miles a year
Payment $581.83
I was really hoping for a AWD, no nav with premium package with some down and 12K 36 month lease for around 450 a month. But I am starting to think this isn't going to happen.
Thoughts?
the 8800 covered downpayment, all taxes and fees.
dealers in jersey are offering 469 for the basic car with 2969 down and 499 + 4000 down with navi and prem plus package.
For some reason I am not able to get a better deal in the NJ area then the following:
MSRP 45,800 w/nav
36 months
12k miles
2k out of pocket
590 a month including tax
I thought the summer sales event would produce better results? :confuse:
Ray
Thanks for the info.
2008 AWD Premium Plus, no Nav
Capitalized cost $40,000
36 mos
15,000 miles/yr
***wasn't told money factor or residual yet**
$759/month
$0 down, lease includes sales tax and 1st year license fee
I'm not that naive, but what am I missing?
I'm got a quote from a Southern California lexus dealer on a lease of rx 350 wit premium plus package, no Nav
36 months lease, 15,000miles/year
MSRP: 41,496
Cap cost: 36,760 including bank fee
Residual value: 22,822
Money factor: 0.00165 for Tier 1+ and 9 security deposits= new money factor of 0.00093
15,000 miles / year for 36 months
total due at signing: $5150 includes 9 security deposits
Monthly payment of $470
Can anyone tell me if this is a good deal? should I pull the trigger and lease the car?
Hopefully, Carman can look at your deal and the numbers and would be able to tell you if this sounds like a reasonable deal.
2007 Lexus 400h AWD - MSRP - $42580
Accessories - MSRP - $6729
MSRP: 49309
THEIR OFFER: 49000
DESTINATION CHARGE: 765
Dealer installed DVD dual headrest - $2400
FINAL OFFER: $51,679
MONEY FACTOR: 6.9%
RESIDUAL VALUE: 51%
0 DOWN/3 YR/15K MILES LEASE.
Payment comes to about 1,000/month. This seems VERY high to me, but would love others input. Thank you so much!
L
Here's the quote I received.
36 months lease, 15,000miles/year
MSRP: 41,496
Cap cost: 36,660 including bank fee
Residual value: 22,850
Money factor: 0.00165 for Tier 1+ and 9 security deposits= new money factor of 0.00093
15,000 miles / year for 36 months
total due at signing: $5353 includes 9 security deposits
Monthly payment of $472
The dealer told me this was about 1,250 below invoice. This was the best deal out of 5 different dealers. They said the cars are moving out faster and they can't lower their selling price. 2 months ago, I had a quote as low as 1750 below invoice. I guess it's all about supply and demand.
Hey carman (or anyone else), what do you think about this deal?
- 24 mo. (is this available?)
- 36 mo.
BTW, I understand that the residual values are non-negotiable but the MF is. Is this correct?
Also, according to the Lexus website, there is a '1pay lease' program which requires all the lease payments to be made upfront, but the total is lower than the total of the regular monthly payments over the duration of the lease. Any more info on this I can be armed with before talking to the dealer?
This will be my first lease. I have researched the lease info posted here and other websites and I think I have a reasonable handle on the mechanics. Besides the regular other costs for tax, title & reg, any other fees that I should be aware of?
Thanks much.
Here are the specifics:
39 Months
15K Per Year
$525.00 Monthly
From what I see, we got a GREAT DEAL!!!
Dont EVER pay over $575 for this car. Many nicer and expensive cars for that money.
"Money factor: 0.00165 for Tier 1+ and 9 security deposits= new money factor of 0.00093"
I don't get what you mean by "9 security deposits" and how does that effect the money factor?
"Money factor: 0.00165 for Tier 1+ and 9 security deposits= new money factor of 0.00093"
Here is an example of what this means...
For those with outstanding credit (Tier 1), some fund providers will discount the money factor if a customer agrees to pay multiple security deposits (MSD's). For instance, BMW Financial services was deducting 0.0001 from its money factor for each security deposit up to a maximum of nine (9). If the MF equals, say 0.00150, and you put down 9 security deposits, then your money factor becomes 0.00150 - 9 x 0.0001 or 0.00060. It was a great deal and a no brainer. Some folks were even taking out second mortgages to borrow the money so they could pay the security deposits! A second mortgage is around 7.5%. So, why would they borrow money to pay for security deposits? Because the equivalent after tax ROR is a whopping 18.75%!!! This assumes 9 security deposits; a 36 month lease with a $30,000 adjusted cap, and a residual of $20,000 for which the payment is $308 instead of $353. This equates to a monthly savings of $45 for 36 months. The 9 security deposits amount to 9 x $325 or $2,925.
Not bad, eh?
John
Nav + Premium plus
$3,000 drive off (includes $2K cap cost reduction, 1st month's payment, tax, registration, bank fees, etc.)
$500 per month for remaining 35 months INCLUDING tax
57% residual after 36 months on a MSRP of $44,356
12K miles
I have to close on this tomorrow. Would appreciate any feedback.
Thanks
I'm in the NYC area, but can travel to NJ or dealerships outside of NYC. My local dealer said that in the North East, the RX only comes with the Premium Plus Package. Is that so?
The only quote I got so far last week was for $593/month with tax in the monthly payments, about $1,300 due at signing which basically contained a bunch of fees. I don't need Nav and DVD player in it.
Just trying to figure out how much I've getting ripped off!
Thank you very much!
Ross
Thanks for the detailed response and explanation. I've been leasing cars for twenty years and have never heard of MF reduction through MSDs. I've even asked Mercedes Benz Credit Corp. and others if they would decrease the "rent charge" as they call it by paying more payments up front (GM's one pay) and they said no!
Glad to see that some of these lease finance companies are getting a little more creative.
Regards,
JT
Below are some formulas and terminology that you might find useful...
First, there are three formulas that you need to understand.
(1) A = V + F - K
(2) R = Residual Factor x MSRP
(3) P = M x (A + R) + (A - R)/N
where:
A = Adj. Cap Cost
V = Agreed Upon Value (Sell Price)
F = Amounts Financed (capitalized) in the lease
K = Capitalized Cost Reductions
R = Residual Value
P = Payment (may or may not include taxes depending upon whether or not taxes are capitalized in the lease).
M = Money Factor
N = Term (months)
EXAMPLE
Now, consider the following hypothetical example...
MSRP = 37,000
V = 33,000
F = 600 (acquisition Fee)
K = 1,000
A = 32,600
Res. Factor = 54%
R = 0.54 x 37,000 = 19,980
MF = 0.00180
Term = 36 months
Base Payment = 0.00180 x (32,600 + 19,980) + (32,600 - 19,980)/36
= 445.20
I'm not sure how sales tax is computed in NY but I hear it's a real screamer. If NY taxes the payment streams and your sales tax rate is, say 6.00%, then
Payment w/ tax = 471.91
Items Due at Lease Signing...
1st. Payment = 471.91
Sec. Dep. = 475.00
TTL = 150.00
TOTAL DUE = 1,096.91
You may want to look at some of my sample lease proposals in this forum as well as others (e.g., Post #893 in the Lexus RX350 forum Prices Paid & Buying Experience" and #874). Or, just do a search on delta737h to see what I've posted in this regard.
If you still need some help, please fire away or email me and I'll be happy to provide any needed assistance.
John
Medina, Ohio
John
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Lexus still charges interest on one pay leases, but it provides a .00100 reduction in the money factor that is used to calculate the interest portion of the lease.
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