Good price for a 2015 Lexus IS 250 Balloon Option?

brady15

I was quoted the following price for a fully loaded (Navigation, luxury package, etc.) 2015 IS 250 AWD, for 36 months and 12k miles (balloon option):

- MSRP of $44,493
- Cap cost: $41,919
- Residual: 65%
- 2.4%
- $565/mo.

Is that a good price? Thanks very much.

Mr_Shiftright

???? I thought balloon payments were only for purchasing a car, not leasing.

Anyway, as a lease, this seems high by about $100-125/mo to me but let's wait for the leasing experts to jump in. No front money? What are the fees?

brady15

Thanks for your response, Mr. Shiftright. The quoted price of $565/mo. assumed no money down and nothing due at signing. I don't remember the total amount of the taxes and fees, but I think they were in the neighborhood of $5-6k, and they are rolled into the monthly payments. A balloon option operates similar to a lease, but yes, it's technically a purchase. They are common here in Chicago b/c they allow you to avoid an 8% usage tax that the city imposes on leases.

Mr_Shiftright

OK. This is new to me, sorry. So at the end of 36 months you cough up a balloon payment and then you own the car? Have i got that right?

brady15

At the end of 36 months you have the option - but not the obligation - to purchase the car for the balloon payment (which I understand to be the same as the residual amount).