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Comments
What's your monthly payment?
Anyone look at Costco? CarsDirect?
I REALLY want one of these, but need to be informed before I go to the dealer
Thanks
Randy
I shopped all 3 dealers in my state and the best I could do was $3K off MSRP. The other 2 wouldn't come close. You have to either live in FL or CA or be willing to do your deal over the phone/fax/FEDEX and have the car shipped to you to find a huge volume dealer to get that kind of deal. The dealer closest to me was by far the smallest in my state and they really had zero interest in bargaining at all. They even told me that they weren't a large volume dealer and didn't need to make those kinds of discounts.
Tell him to show you the dealer cost and you'll pay that or you'll buy elsewhere. Unless even with the extra $695 that deal is better than you can get elsewhere. Just be vary careful that you don't get stuffed on some paint sealant and other junk at the closing.
It's a common tactic for them to say that "we don't sell cars without this, it's for your protection, it's not negotiable." EVERYTHING is negotiable. Just tell him you won't pay it and get up and walk out. See what he does.
Comments?
These deals are certainly not doable in my book. On Lexus.com you can calculate lease deals and in order to get to some of the prices I see here you'd need to put $5000 or more down or have a dealer begging for you to take a GX off his hands. Since they sell quickly here that isn't going to happen anytime soon. Each $1000 off is worth only about $20 a month anyway give or tak a dollar depending on interest rates. I paid $2k under MSRP and leased at $740 per month with zero down, zero security and zero turn in fee at lease end - 12k miles per year. Lease acquisition fee was $400. Annual finance rate was about 4.25%. Sticker was $51k.
If a lease is done as low as $600 per month - all-in with sales tax - on a $53k GX then before sales tax, you are paying about $20k over 3 years for the car itself - with no interest factored in. If the car residualizes at 60% (a bit high these days as most are in the mid-high 50's at best) you'd have a $31,800 lease buyout. Think about what that means. The present value of $31,800 today is about $28,000 and the present value of $20,000 of streamed lease payments is about $18,000 using a 4.5% discount rate (back of envelope - I don't have my HP with me). Maybe I'm a bad negotiator but I can't get $7k off of MSRP on a GX. It wsn't easy getting $2k off. There were 4 others who wanted my GX and they were willing to pay sticker. But I have an LS430 lease that's up in two months and I've been a customer since 95. Absent that leverage I would have paid MSRP. It's the law of supply and demand.
By the way I had the 2000 LX. Awesome SUV and a bigger feel. The GX is great also and I'm very happy with it. Best of luck.
Thanks
So I ask... where is this magical 5K off MSRP. Give me a dealer name!!!!
But on Fleetrate.com you may find you are able to get $4-5k off but don't expect a $570 all-in lease as a result unless you are putting money down (which of course is a prepaid lease payment in the first place) and signing up for 4-5 years. They do use Southern Cal dealers as I was in contact with them. Those dealers though may not be in your area.
I saw the story on fleetrates, which in part is why I would think long and hard about ever going that route. The other part is the inconvenience of it all. Nevertheless if they are purely a broker lining up buyers and sellers then the deals they show should be doable if one wants to take the risk. Personally I wouldn't take it.
With respect to the web broker(?) in question...I would only give money to a state licensed auto dealer, not some anonymous website run by folk with a well checkered past, was my point.
steve_ Nov 15, 2003 3:21pm
Steve, Host
Thanks
Ummm...well ok, but, as you know, you can trust those guys about as far as you can throw them.
ps. 1500 miles a month.can someone tell me if this is a good deal? the car is msrp @53,000and i got it for 49200.00
Try this link and remember to fill in your credit rating. The acquisition fee is the cost of the lease application and is not a down payment or dealer fee.
http://www.lexusfinancial.com/estimator/lfs/pe_zip.jsp
What was the guy saying about low 600's on the GX. I'd have to assume it was a longer lease and had a good sized down payment. Lexus finance is doing the deals at 4.6% so that's a pretty good rate and not one that is topped so easily. You probably need to drop the price to a 43k or $44k cap cost to get a low 600's deal on a 3 year lease using that payment estimator. That price is of course unheard of as are $570 lease deals.
The GX handled the snow with ease just in case you ever get some down there in San Diego - one of my favorite California cities by the way.
Let's say you can buy the GX for $50K and the sales tax is 6%. Your total cost is $53K. Now if you are earning 4.5% interest on your money you are also passing up future income. So if you compound your money annually then after three years your total out of pocket is $60,482 to buy the GX up front (just hit $53000 x 104.5% three times on a calculator). Now lets say you can lease it for three years at $740 per month, 0 down and security (you get the security back anyway if there is a small amount) and a $600 lease acquisition fee. The buyout or residual is 58% of the MSRP (note: residuals are always based on MSRP and not on the price you negotiate the GX for - so let's say the MSRP is $52k) or 30,160 plus a 6% sales tax for a total $31,970. So your total payments plus residual buyout with all sales tax included is $600+$26,640+$31,970 or $59,210. However you have also lost earnings power on the $27,240 ($26,640+$600). On average over 3 years you would have had $13,320 + $600 available to earn interest annually. So you are forsaking interest income of $1,965 in the lease payments you make ($13,920 x 104.5% (three times) - $13,920). That makes your total lease cost come out to $61,175 ($59,210+$1,965) vs an out of pocket buy of $60,482. The difference is $693 or essentially the lease acquisition fee. Is it worth $693 to lease and then have an option to buy after three years? If you can negotiate the prices in this example I'd say yes for sure. If you don't like the GX or there is something better or if a new GX is much better in three years, you can change course without the aggravation of selling or trading in (where you always lose out). Look at the $693 in this example as an insurance policy. By the way many people make the mistake of comparing the total lease cost to that $53k initial buy figure and fail to take into consideration the lost interest income the purchase costs them. Thus they tend to think the lease is costing them many thousands more but this is a big mistake in the way they view it.
Naturally there are many other variables that come into play. You may be able to negotiate a better buyout in three years than the lease document says (though this is very rare with Lexus) or you may get a higher return on your money than 4.5%. The bigger the return the more a lease is favored and the less the return the more a buy is favored. Then there are tax issues to consider as well. If you can tax deduct your car it is easier and more advantageous to lease (unless you qualify for that special 6,000 gross weight deduction which the GX should allow) rather than buy and depreciate. If you keep it simple as I did earlier you can easily make the decision on lease vs. buy.
Lastly there are many more sophisticated ways to look at a lease vs. buy involving present value calculations on an HP calculator. But many of these look at the deal through the lenders eyes rather than the buyer. The example I gave is a buyer view and the one most of us face. I do have a business so I always lease for tax purposes. But I also lease my non-business car because I like to have the latest and greatest car improvements. As well many calculations do work out similarly (in the high-end segment) to the example I gave.
By the say I never had a problem turning in a car and I never take a lease with a turn-in fee. If you lease through Lexus finance and take another Lexus in three years they'll never give you a problem unless you had a serious accident or are way over the lease mileage allowance.
Good luck.
But you can find out over in Lease Questions - Ask Here.
Steve, Host
Seriously, I might keep the car longer than my usual 4-5 years if it turns out to be as good as the LX470 in terms of quality.
I'm trying to work out a >3.5K off MSRP deal. Similar to trdid's deal. Wish me luck.
tidester, host