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2013 and earlier Lexus ES 350 Lease Questions

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Comments

  • car2008car2008 Member Posts: 5
    The drive off amount is roughly $850, incl 1st month payment and Title/Reg fees.

    The money factor they used is 0.00155 but they do get evasive on that.

    How do we know the current LFS MF and how to convince the dealer of that?

    Thanks!
  • colslickcolslick Member Posts: 29
    I've had 2 dealers quote leases with higher MF than the .00125 Apr rate . I don't know if the May rate went up or they are inflating for profit. Does anyone have the May rates for 36/15K. Also they quoted me an msd rate of .0000875 per each deposit instead of .0001. Is this an LFS change or another profit pool for dealer? I know BMW lowered theirs some time ago.

    Thanks for any help here.
  • car2008car2008 Member Posts: 5
    Hello car_man or anyone who has insight into this,

    Lexus Dealership offers couple of plans with a ES350 lease:

    LexusCare - prepaid service plan for all routine maintenance @ 33 per month.
    This is about $1580 over 4 years. Is this worth buying? (is the cost of maintenance
    recovered by this??)

    Excess wear and tear coverage plan - to cover scratches or dents or other wear and tear etc upto $5000.
    The cost is $16 per month or $800 over 4 years.

    Do you recommend buying any of the above plans?

    Thanks in advance for your help.
  • nydesi80nydesi80 Member Posts: 13
    ES 350 w/nav (no mark levinson)
    MSRP: 42,xxxx
    Selling Price: 37,500

    10k/36months
    Due at signing: $2674.58 (this include DMV, first payment, taxes, bank fee and registration)
    Monthly Payment: $470.76

    12k/36months

    Due at signing: $2714 (this include DMV, first payment, taxes, bank fee and registration)Monthly Payment: $481.96

    Money factor they are using for both leaes is .00120. Is there any incentives that they have they can get or is this as low as Im going to get?
  • jamest2jamest2 Member Posts: 1
    I'm picking up my Lexus ES 350 on Tuesday, and I'm debating whether or not to buy the Lexus maintence package for $1,400.00. I'm leasing the Lexus for 3 years. It covers an oil change @ every 5,000 miles + the major tune-ups at 15, 30, and 45,000 miles. I'll probably return the car when the lease is up. Do You think that it's worth it buying the package.
    Thank You,
    James
  • ocautoseekerocautoseeker Member Posts: 425
    Revised rates for May:

    2008 Lexus ES350 Sedan (non-Ultra Luxury)
    24 M – Residual 58% – .00085
    36 M – Residual 52% – .00085
    48 M – Residual 43% – .00125
    60 M – Residual 34% – .00225

    Residuals assume 15k annual miles. Add 2% for 12k annual mile, and 3% for 10k annual miles.
  • moecalmoecal Member Posts: 3
    Should I apply for financing through LFS before I ask for lease quotes from dealerships? I would like to know if I am in the Tier 1 category before I start negotiating.
  • colslickcolslick Member Posts: 29
    Thanks (again) ocautoseeker, This lower MF for May makes about a $25/mo lower payment than Apr rates . Now to decide between M35 and ES350. On a 15K lease gas is $42/mo less w/ES350!!!
  • ocautoseekerocautoseeker Member Posts: 425
    Do you know if your credit score is over 720? You can buy credit reports and scores from any or all of the three major credit bureau's on-line. It's really cheap, and it's good to know where your credit stands, even if you're not purchasing a car.

    The base rates listed for the ES assume that the lessee qualifies for LFS's Tier 1 + credit tier, which is currently 720 FICO or higher. If you're between 700-719, you'd be considered Tier 1.
  • ocautoseekerocautoseeker Member Posts: 425
    Yeah, that has been the major drawback to the M35 - it's lack of fuel economy (city mainly). It's tuned more for performance rather than for quiteness and comfort like the ES.

    Don't get me wrong, they are both great cars, but it will probably come down to where your loyalty falls... Toyota or Nissan?
  • moecalmoecal Member Posts: 3
    According to Experian, I have a 770... but I've been told by other dealerships in the past that your FICO is not the same score used when purchasing a vehicle. Below is the quote I got yesterday through the Lexus Roseville, CA Internet Manager:

    Premium Plus w/Nav. 12k mi./yr.
    MSRP $42,534
    Cap Cost: $38,818 (he says this is invoice)
    Residual: $22,969 (54%)
    .00155 Money Factor (told me that's all Lexus offers and he can't go any lower)
    Drive off: $1,047.85

    .
  • ocautoseekerocautoseeker Member Posts: 425
    Don't worry, at 770 you'll qualify as LFS's tier 1+. If anything, your score will most-likely be higher at the dealership.

    I recently posted the may numbers so check those against what the dealer is quoting you. At .00155, he's definitely marking up his rate to build profit into the deal. It's certainly not illegal for him to do that, but with your excellent credit, you deserve the buy rate money factor.

    If they won't utilize the buy rate money factor, find another dealer - simple as that. There is nothing wrong with letting him know that you know the numbers. I always advise prospective buyers to be firm, but be polite. He needs the deal more than you, especially when there is competition - remember that.

    Double check his invoice against Edmund's or KBB. His invoice will be off about $400-$500 as it accounts for a regional advertsing fee.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi car2008. I definitely would not purchase a pre-paid maintenance contract on a lease. All I ever do in terms of maintenance on leased vehicles is change the oil every 3,000 miles or so, usually more on today's vehicles, and rotate the tires once or twice. Any maintenance on top of that is a waste because A) you won't have the car for that long and B) it's not yours anyhow.

    Unless you are really rough on your cars, I personally would pass on the excess wear and tear coverage as well. Most manufacturers' captive finance companies are very reasonable when evaluating the lease-end condition of vehicles that are being returned. It doesn't make sense for an automaker to nickel and dime a lessee to death and risk making them mad enough that they won't purchase or lease another vehicle from them.

    Car_man
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    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi nydesi80. The .00120 money factor that you were quoted for a lease of an '08 ES 350 is as good as it gets. Just make sure to negotiate the lowest selling price that you can on the car that you want, making sure to take advantage of the $1,000 owner loyalty cash that is currently available on this model if you are eligible for it.

    Car_man
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    Prices Paid: Buying & Leasing Experiences Forum
  • moecalmoecal Member Posts: 3
    Are the money factor rates national numbers? The internet manager I'm working with says that the money factor for the Western Area is .50 higher, and doesn't vary with each model.
  • shaggykenobishaggykenobi Member Posts: 3
    Hello. Brand new here, so not sure about all the money factor, cap cost, and residual value calculation. I wish there is a way to use a calculator to find out what the monthly payment will be. Anyway, called around dealership in my area, asking for a quote on downpayment and monthly. Mission Viejo quoted:

    - $2000 (net cost when I leave parking lot)
    - $399 /mth (everything included)

    Is this a good deal on lease of ES 350 non navigational?

    thanks for help
  • jpackeljpackel Member Posts: 4
    Tier 1+ should be .00110. The security deposit is .0008.. Lexus changed this around 1 1/2 years ago. If you are a current ES client through LFS, you should also be getting $1000 rebate if you are going back to another ES.
  • jpackeljpackel Member Posts: 4
    What MSRP is the car. What does the $2000 consist of? Are you sure it isn't 2000 plis fees? How many mths is the lease, how many miles per year?
  • jpackeljpackel Member Posts: 4
    Also remember the sales person has a family to feed and deserves to make money since he or she is providing a service for you. Invoice is around 37500. Be a human and let the poor sole make a few dollars. Do you negotiate when you go out to dinner? No you don't.. Why, because you are provided a tangible item and a service.
  • ocautoseekerocautoseeker Member Posts: 425
    Don't believe I ever made a comment that insisted on a zero profit deal.

    Buying a meal and buying a car are not fair comparisons.

    A volume (near luxury) vehicle like the ES is gonna' fleet out at $500 or below all day long - anyway you look at it, it's a mini for the sales guy. As a salesman (which I'm guessing you are), you know that there aren't many vehicles in the market nowadays that can hold substantial gross. Blow 'em out, bonus out - that puts food on the table on a much more consistent basis than trying to nickel and dime a well-educated buyer.

    If customer is savy enough to ask around for the captive numbers and has a strong bureau, as long as his deal is reasonable, wrap it up.
  • colotjcolotj Member Posts: 18
    It's up to the buyer to negotiate the best price possible. It's up to the dealer to get a proper profit from the sale. I doubt many dealers are giving away vehicles.

    BTW It is a buyers market right know.
  • Hello all,

    :confuse: Does anyone know what, if any, restrictions there are with the $1000 Customer Loyalty cash that LEXUS is offering prior ES owners?

    Can I use it as a Cap cost reduction, in lieu of inception money, or any another way I may not have thought of?

    I would prefer to use the $1k to reduce my cash out of pocket @ closing, you know use it to pay my 1st months payment, tag transfer fees, taxes and bank (acquisition) fee but the dealer wants to use it as a cap reduction to lower the cost of the car. (Big surprise!)

    Any thoughts out there???
  • jpackeljpackel Member Posts: 4
    It has to be listed as a rebate for tax purposes. If you want to use it instead of paying your fees, let them cap your fees and use the rebate. BTW- I wouldn't pay taxes up front. If you total the car, you are out the money.
  • shaggykenobishaggykenobi Member Posts: 3
    $2000 out the door, the terms turns out to be 10k/36mths. Payment is now $412/mt tax included. The package is non nav, i believe the msrp is around $36k. Now offered a navigational package all terms the same but with mthly pmt of $447/mth (msrp around 39k). Is this a good deal?
  • john252john252 Member Posts: 7
    Hi,

    I am new to this forum and would appreciate any help. I am leasing for the first time ever and thinking of ES350. Been doing some research, but I guess your specialized advice is worth so much more. So, here it is:

    Was offered by a dealer in NY area:
    1) a lease with $800 down (first month, etc) and $467/month for 36 months, 10 K miles, MSRP $37,400 for the car with the premuim package and
    2) lease with $1200 down (first month, etc) and $528/month for 36 months, 10 K miles, MSRP $42,500 for the car with the NAVI.

    Please let me know what you think, would appreciate any useful input that will help me make the decision by the end of this month. Afterwards, dealer says, rates will change.
    Grateful,

    John
  • brian1848brian1848 Member Posts: 13
    Need to know the following things:

    - Sales Price
    - Money Factor he is quoting you
    - Residual rate for your model
    - Tax Rate

    I'd suggest you focus on the actual price that he is charging you and the money factor as your monthly payment is a result of a math problem based on those two key figures!

    Best of luck... also, he may be telling you the rates are going to change to pressure you into buying -- don't let him. They may in fact change (and there maybe someone on this board that knows) but don't let that PRESSURE you into a deal that doesn't feel good - because they could go DOWN!...

    Good luck!
  • john252john252 Member Posts: 7
    Many thanks Brian 1848,

    I'll try to obtain those figures and get back to the forum.
  • john252john252 Member Posts: 7
    Hi Brian 1848 and thanks again,

    Here are the figures you requested:

    - Sales Price : 1) $33,000 2) $37,300 (Navi)
    - Money Factor : .00120
    - Residual rate: 54% for both models
    - Tax Rate : 7.375

    Again, this is the offer:
    1) a lease with $800 down (first month, etc) and $467/month for 36 months, 10 K miles, MSRP $37,400 for the car with the premuim package and
    2) lease with $1200 down (first month, etc) and $528/month for 36 months, 10 K miles, MSRP $42,500 for the car with the NAVI.

    Please advise at your earliest if you can.

    John
  • brian1848brian1848 Member Posts: 13
    I can't comment on the residuals but the price looks pretty close to the deal I am working on an ES350 with Premium Plus and Navi. Lets hope we are both getting a good deal!
  • john252john252 Member Posts: 7
    Thanks again.

    So, in conclusion, if I get the above mentioned figures from the dealer in terms of "drive-off" payment and monthly rate, shall I gon on with the deal and sign the papers? Your opinion is important.

    John
  • brian1848brian1848 Member Posts: 13
    John, as I said, ultimately you are the one that has to decide but it sounds to be a pretty good deal. The key will be for you to review the paperwork in detail as other dealers i have worked with (this will be my first lexus should the deal go through) done things like put the "net sales price" (which includes sales tax) as the top number in th lease -- in NC we pay tax on the lease payment not on the purchase price so that adds another $600ish dollars to the financing.

    So I say you consider moving forward if you feel this is right for you and your financial situation (only you can determine that) and just look at the paper work very closely!

    Brian
  • brian1848brian1848 Member Posts: 13
    BTW, I noticed that it looks like Edmunds isn't able to provide the invoice price on the ES anymore -- and it looks like the MSRP actually increased on the "base" ES by a few hundred dollars in the last day or two.
  • ocautoseekerocautoseeker Member Posts: 425
    Most of my clients are in either the midwest (where I'm from) or on the west coast (where I live), and thus I utilize a few different leasing sources. A few weeks ago I posted May rates from the programs that I had in my possesion from one source, but it seems that there is a discrepancy between regions on LFS's current numbers. This doesn't surprise me as Toyota's rates are typically regional and can vary substantially. Apologize for any confusion.

    At any rate, the mf and residual appear to be accurate (for your region), and the cap cost looks good. Your drive-off's are low (1st mo and dmv's), so I'd say you've got the green light to proceed. Say "no thank you" to everything in Finance and you'll have yourself a great deal, and a fabulous car to drive around in for the next 3 years.
  • john252john252 Member Posts: 7
    Many thanks, appreciate your insight.

    John
  • john252john252 Member Posts: 7
    Many thanks, appreciate your insight and useful advice.Hope you're getting a great deal!

    John
  • lexluvrlexluvr Member Posts: 1
    Hi-

    I'm looking at a 2008 ES 350 level "3" car (Nav) for a 2 or 3 year lease. I have level 2 credit and live in zip code 30022. I would like to do a 1 payment lease. Hand 'em a check and I'm square for the lease term. Need 15,000 mi per annum.

    Is $16,000 to $17,000 a reasonable "1 pay" amount (for 36 mo), or am I going to be forced to go higher? (Any insights will be greatly appreciated) thanks!

    P.S. - Any thoughts on a reasonable 1-pay amount for 24 mo? Again, thanks!
  • kaweekakaweeka Member Posts: 1
    I'm looking for a lease on a 2008 ES 350. Premium Plus with Nav. MSRP $42325. The best deal so far locally is $38192.12... the Lease end value is $23,229.25 and the Residual is set @ 55% the money factor is 0.00080 and we went 36 months with 10,000 miles per year. $3000.00 dollars out of pockett...

    All of this math equates to a payment of $450.42 Including (Ft Myers, FL) Tax...

    Any thoughts here?
  • drinkinnycdrinkinnyc Member Posts: 1
    Just leased an ES350 with Navigation. 15k/yr 3 years. 1500 due at signing which includes the first month, bank fee and license fees. 520/month (which includes my 9% tax rate). I really had 2500 due at signing but am applying my 1000 return customer credit to the deal. This car seems much better then the 2006 that I am returning 6 months early.
  • lglawlglaw Member Posts: 3
    this may be helpful to some of the recent posts - I have a lease order pending - waiting for the exact car - in nyc - ES350 $1265 out of pocket - $528/mth - 10G miles - premium plus w/nav. - and $12/15 less if I get the car next month because they will not have to pay my last month payment on current car - sounds similar to the other quotes - the only number that bothered me is the $600 bank fee which is half of the out of pocket
  • ocautoseekerocautoseeker Member Posts: 425
    The $600 bank fee/acquisition fee is unavoidable and is set by LFS. If you don't want to pay it upfront, have them cap it into your lease. It will add about $18-$20/mo to your payments.
  • sousixersousixer Member Posts: 1
    Does anyone have any recent experience in leasing a Lexus ES 350 from Parker Lexus in Little Rock, AR? I talked with them last weekend and their offer was based on only $2000 below MSRP. Is that the going discount here in Arkansas, or what would be a reasonable discount for lease purposes? I keep reading where others around the country are getting invoice pricing or below. Thanks.
  • john252john252 Member Posts: 7
    Hi all ES350 fans,

    Just got my order on Smoky Granite ES350 with black leather interior from a NY dealership. I'll go pick the car in a few days.
    These are the options:

    NV : Lexus Premium Audio w/Navigation
    PT : Premium Plus Package
    HL : HID Headlamps w/Adaptive FrontLighting
    PA : Intuitive Parking Assist
    WU : Wood and Leather Steering Wheel
    FS : Full-Size Spare Tire
    BE : Rear seat side airbags
    Z1 : Port installed accessories: Wheel Locks, CargoNet and trunk mat

    1K, 5K, 10K service included free by dealer
    15% off service x 36 months by dealer

    Got the car for 36 months, 10K/year with $2565 down and $439/month for a selling price of 36,403.
    Please tell me what you think.
  • jllorenjlloren Member Posts: 2
    36M/15K. Tungsten Pearl/Black interior Ultra Lux, Mark Levinson and Park Assist. MSRP 44,925 + chrome wheels. Total MSRP 46629. Selling price 39,336 + 600 acquisition fee+ 45 document preparation + 28 electronic DMV for total of 40,009. Cap reduction of 1000 (loyalty bonus) brings the Adjusted Capitalized cost to 39009. Total drive off from me 983.35 (first month + registration). Money Factor .00135 brings the monthly payment to 529.42 + tax. Residual 22962.
  • nydesi80nydesi80 Member Posts: 13
    Hey Jon can you tell me which NY dealership this was with because I'm looking to get the same car as well. Seems like a good deal to me.

    When you mean premium audio you mean the Mark Levinson right?
  • ocautoseekerocautoseeker Member Posts: 425
    That's a great deal!!!
  • jllorenjlloren Member Posts: 2
    This is not in NY is in Southern California.
  • nydesi80nydesi80 Member Posts: 13
    Hey Jon can you tell me which NY dealership this was with because I'm looking to get the same car as well. Seems like a good deal to me.

    When you mean premium audio you mean the Mark Levinson right?
  • mrussomrusso Member Posts: 9
    On ES350, I was offered $520/mo lease with $1500 down for 10k mi/yr, 36 mo includes nav system and XM radio. Is this a good deal, car_man? I don't know the MF. I will probably just lease again at the end of the 36 months so I am not so interested in factors - basically, the lowest bottom line monthly payment is my main focus. Thanks!
  • dhamiltondhamilton Member Posts: 878
    The factors will help determine the payment, and help us know if your getting a fair deal.

    Educate yourself, you'll be glad you did.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi mrusso. You never mentioned the selling price or MSRP of the ES 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 what this vehicle's selling price is 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 am sure that either myself or another knowledgeable community member would be happy to give you their opinion of this deal if you let me know what these numbers are.

    Car_man
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