Car Buying Advice - 2017 LEXUS LS 400 Leasing Help

kevinpatrick

Very interested in leasing from Lexus of Knoxville. (Tennessee) Honestly I don't know questions to ask but I do know I know what to expect as for incentives, money factor and residual. Can anyone give this newcomer any guidance please?

kyfdx

Ask for a lease quote, with specific numbers, then start from there. No point in giving them a number, first.

kevinpatrick

Switching gears to ES 350. MSRP 46792 .52 Residual - 15k Yearly - Money Factor .00150 - Lease Cash 2k - Trade in 5k - Payment 653.60

Michaell

kevinpatrick said:

Switching gears to ES 350. MSRP 46792 .52 Residual - 15k Yearly - Money Factor .00150 - Lease Cash 2k - Trade in 5k - Payment 653.60

Not a good deal.

Base MF on the ES350 is .00050; your dealer is marking it up.

And, what is the adjusted cap cost?

We also don't recommend using trade equity to buy down the lease payment; only out of pocket money should be the first payment and DMV costs.

kevinpatrick

So I should just sell my trade in and take cash?

Michaell

kevinpatrick said:

So I should just sell my trade in and take cash?

You can have the dealer cut you a check for the equity in your car.

I don't see a selling price / cap cost on that sheet, and you can ignore the taxes, as TN taxes the monthly payment on a lease.

Any other Lexus dealers you can work with? The competition should help you get the best deal.

kevinpatrick

Would Carmax be a good place to sell car?

kevinpatrick

I think the selling price would be the MSRP minus the 2k lease cash? What is a cap cost?

Michaell

kevinpatrick said:

Would Carmax be a good place to sell car?

It's certainly a place to check out.

kevinpatrick said:

I think the selling price would be the MSRP minus the 2k lease cash? What is a cap cost?

You should negotiate your best price before applying the lease cash.

Cap cost = negotiated selling price less incentives plus any taxes or fees you are not paying up front.

kyfdx

Run away from that dealer. Full MSRP and a massive money factor markup, on a car that is usually heavily discounted?

I rarely say this, but that dealer is trying to take advantage of you.

kevinpatrick

Thank you guys for the feedback!!