2013 and earlier Lexus GS 350 / GS 460 Lease Questions

CarMan@Edmunds

Hi everyone. Please use the following discussion to post any questions that you have about leasing a Lexus GS 300 or GS 430. Thanks.

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sam_k

Hey car_man, you've been really helpful in the other forums and I hope you can give me the information here. I'd like to know the money factor and residual value of both a 2006 GS300 and GS300 AWD for 36 month 10K or 12K/year lease. I've seen some information posted in the Lexus GS: Prices Paid & Buying Experiences forum and the residual value percentages look pretty bad.

If the residual value percentage is low, then it's because Lexus will probably be replacing the GS300 with the GS350 next year and they know that this will hurt the resale value of the GS300s. Also, the 2006 GS models will be available for a total of 18 months from Feb/Mar 2005 until August/Sept 2006 (when the 2007 models come out) and that means the total production numbers for the 2006 GS models will be much higher than a normal production year.

jyurko

Car_man, I have just been offered this lease deal. Doesn't sound too good, however, it looks like it may be in line with previous postings regarding residual and money factor:

Car: GS300 AWD, MV, Z1, SR, SS, RF, RS
MSRP: $52,109
Total Cap Cost: $50,935 (incl. $600 bank fee)
Cap Cost Reduction: $0
MF: .00235
Residual: 54%
State Sales Tax: 6%
Payments: $877.00
Due at signing: $999.50

Also, I inquired about MSDs:
MSRP: $52,109
Total Cap Cost: $50,935 (incl. $600 bank fee)
Cap Cost Reduction: $0
MF: .00145
Residual: 54%
State Sales Tax: 6%
Payments: $809.23
Due at signing: $8571.73 where $7650.00 refers to 10 security deposits

How do either of these deals sound? Do you know of any lease programs Lexus has running? These are numbers provided to me by the salesman. I plugged these numbers into a lease calculator and came up with slightly different numbers (about a $9-$10 less for the 1st scenario and about $16-$17 less for the 2nd scenario), am I missing something?

Thanks in advance!!

CarMan@Edmunds

Thanks sam_k. You're right, Lexus introduced the '06 GS really early. Unfortunately, it is not providing any sort of lease support on the GS300 right now, so its lease program is not very attractive. According to the latest information that I have seen, if you were to lease a 2006 Lexus GS300 2WD through Lexus Financial Services right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00235 and 56%, respectively assuming that you qualify for its top credit tier and pay a security deposit. The factor for an otherwise identical lease of an '06 GS300 AWD without navigation would be the same, but the residual value would be 55%. For leases with only 10,000 miles per year these residual values would be 1% higher.

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CarMan@Edmunds

Hi jyurko. the good news is that the lease money factor that you were quoted to lease this car is right in line with Lexus Financial Services' buy rate money factor for it. The bad news is that it still is not very attractive. The selling prices that you were quoted for this car look reasonable to me, but you may want to stop by the following discussion to compare it to what other community members have paid for similar vehicles lately: "Lexus GS: Prices Paid & Buying Experiences". I'm not sure why the payments that you calculated are slightly different than the ones that the dealer that you are working with quoted you, but I cannot double check their calculations because you never mentioned how long these leases are for in your post.

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jyurko

Car_man, d'oh! I forgot a minor detail: Both leases are for 36 months with 12K miles per year.

Thanks!

sam_k

Car_man, thanks again for the info. Some people on other forums have been saying that Lexus Financial Services (LFS) doesn't offer a 10K miles/year lease but I guess they are wrong. Regardless, those residuals are terrible. Thanks to the upgraded engine and upgraded navigation system coming in 2007, the 2006 GS300 is out of the running for me and I don't think I can wait for the 2007. I'm now considering the IS250/IS350 even though I'm not that crazy about the rear styling. The Infiniti M35 Sport is really attracting my attention especially considering that the money factor and residual percentage are very attractive. I was also considering the Acura RL but the exterior styling of that car is bland compared to the others.

gap4jason

Here's the deal that I got:
06 GS300 RWD
Auto
with NAV (no Mark Levinson)
Satellite Radio (incl. 1 yr subscription)

MSRP is $49129
Deal is $43,779 = Tax and license

To lease it:
36 months 15,000 mi/yr
Cap Cost $43779
Taxable AMO #299
Bank Fee $600
Total Cap $44678
Cap Reduction $ 3193.95
Residual $26124.66 = 54%
Total Drive Off $5000 (incl tax and lic)
Money Factor .00255
Monthly Payment $642.48

36 Months at $12,000 mi/yr

Cap Cost $43779
Taxable AMO #299
Bank Fee $600
Total Cap $44678
Cap Reduction $3219.11
Residual $27092.24 = 56%
Total Drive Off $5000 (incl tax and lic)
Money Factor .00255
Monthly Payment at $615.49 (incl tax)

Is this a good deal???

CarMan@Edmunds

You're welcome sam_k. I just saw my first brand new IS250 on the road yesterday. The car is an amazing improvement over the current IS300, but I completely agree that Lexus could have done a better job with the styling of the rear end. Let me know if you have any other questions.

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CarMan@Edmunds

Hello gap4jason. Let's take a look at the deal that you were quoted for this car. You said that you were quoted a capitalized cost of $43,779 on a car with an MSRP of $49,129 and a capitalized cost reduction of $3,193.95. Let me begin by saying that I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your GS would be exactly the same, regardless of whether you had put over $3,000 down, or had made absolutely no down payment at all.

As far as this car's selling prices goes, if we add the cap cost back into the deal, you are getting the car for around $46,973. This represents a discount of $2,156 from the MSRP that you mentioned. A base '06 GS 300 has a spread of over $5,000 between its full MSRP and dealer invoice prices. As you can see, there is definitely still a lot of room to negotiate with your deal. I am not personally all that familiar with what the market is like on this car right now, but you may be able to get a good idea of how much of a discount you will be able to negotiate by visiting the following discussion: "Lexus GS: Prices Paid & Buying Experiences".

As far as this car's money factor goes, the last time that I saw it, Lexus Financial Services buy rate lease money factor for any lease of an '06 GS 300 was .00235 for consumers who qualify for its top credit tier and pay a security deposit. If your credit is in good shape and you are paying a deposit, there may be a little mark-up going on with your car's factor.

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kssully71

Hey Car_Man,
Now that the December to remember sales event is under way have you rec'd any feedback on what type of deals Lexus is running? I have rec'd a quote from a dealer through the internet sales department for a GS300 '06 w/ ML Navigation
MSRP $48,424
Selling Price $43,424
Given the sale price $5K below the sticker price I would assume the pricing is close to where I want it to be. Any idea what the money factor and residual would be on a 36 month lease, 12K miles/year?
Kevin (SoCal)

michaels6

Hey kssully71:

Where in So. Cal did you get that price? I'm looking to lease an ML equipped GS300 presently and would like to check it out. Appreciate your help.

CarMan@Edmunds

Hey Kevin. $5,000 under MSRP is a very good deal for this car. It's amazing how much of a profit margin Lexus has built into them isn't it? If you were to lease a 2006 Lexus GS 300 2WD through Lexus Financial Services right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00175 and 56%, respectively.

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anijhaw

Car_man - do you know the current money factor and residual for a 60 month, 12k per year lease for the GS300?

fireboss2

Hello Car man,
This is a great resource you provide for the members here, thanks for taking the time. I have two questions for you today.
I'm looking for a lease on a 2006 GS300 AWD. Now that December to Remember is upon us, can you tell me what the current MF's and residuals are on a 36mo and a 24mo lease both at 12k mi.

Also, I was at a dealership in NJ and was quoted the following lease on the above vehicle. We agreed on a selling price of $43,900. We then discussed lease programs and was advised that LFS current programs were not competitive and offered the following lease (from Hann Financial) which I have not accepted yet. He never did tell me what LFS had to offer.

2006 GS300 AWD
MSRP 48,414.
Sell Price 43,900
Cap Reduction 2500. (I know, I know...)
Residual 63%
MF .0026 I only know the MF and residual because I could read it accross the desk.
Term 32mo
10,000 mi
NJ tax 6%
Mo Payment 533.22

Fees outside the loan:
down payment
1st month
No Sec
Bank fee 600.
Reg 250.
Doc 199.

I think I will try another dealer who might be a little more forthcoming on current lease #'s

kssully71

Thanks for the help car man. Hope to be in the new car by the end of the year.

kssully71

Michaels,
I live in San Diego. Got the quote at Kearny Mesa Lexus through the internet sales department.

CarMan@Edmunds

Hi anijhaw. I do know the money factor for a 60 month lease of this car, but I have to tell you that it definitely is not a good idea to lease for that long. A lot can happen during the course of five years. You could move making your commute much longer than it was and causing you to go way over your lease's mileage limit. Or perhaps your family could grow causing you to need a bigger vehicle. Or perhaps you will just get sick of driving the same thing for five years and want something new. It is often very expensive to get out of leases before their scheduled end dates. Furthermore, Lexus Financial Services' current special lease money factor for this car is only good for terms up to 48 months. If you lease for 60 months its money factor jumps from .00175 to at least .00245. The residual value for a 60 month, 12,000 miles per year lease of an '06 GS 300 2WD without navigation is currently 38%.

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CarMan@Edmunds

Thanks fireboss2. I'm glad that you enjoy this discussion so much. If you were to lease a 2006 Lexus GS 300 AWD without navigation through Lexus' "December to Remember" promotion for 24 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00175 and 63%, respectively. The numbers for an otherwise identical 36 month lease should be .00175 and 57%. This lease program is pretty good, so I am surprised that the dealer that you spoke with still ran your deal through an independent bank. The selling price that you were quoted for this car looks decent to me. I estimate that it is around $1,000 over invoice or so. Lexus sure has a huge spread between the full MSRP and invoice prices of this car doesn't it?

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CarMan@Edmunds

You're very welcome, kssully71. Good luck in your negotiations and happy holidays.

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random987

Hey guys,

I am looking to lease GS430 with ML/Nav in the next couple of months. What types of deals are out there now? thx

random987

Bump?

bewitz

The Lexus website lists several models, the GS series among them, as having some sort of special lease incentives, but doesn't specify what they are.

Does anyone have any details?

random987

Its too quiet in here....

fhanson

Would anyone have the MF and Residuals for 36 month 12,000 miles/yr lease on a 06 GS300 MSRP $46,174 I'm thinking $43,000 or so sale price.

CarMan@Edmunds

Hi random987. Lexus is currently providing a decent level of lease support on the 2006 GS 430. If you were to lease one through Lexus Financial Services right now for 48 months or less, its buy rate lease money factor should be .00178. this is equivalent to an interest rate of just under 4.3%. I'd be happy to estimate what your lease payment should be like on this car for you if you provide me with an MSRP and approximate selling price for the exact one that you want. You may be able to get an idea of what sort of price you should pay for this car right now by visiting the following discussion: "Lexus GS: Prices Paid & Buying Experiences".

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CarMan@Edmunds

Hello bewitz. Lexus is providing special lease money factors on the 2006 GS right now. If you were to lease any Lexus GS through Lexus Financial Services right now, its buy rate lease money factor should be .00178. This is equivalent to an interest rate of just under 4.3%.

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CarMan@Edmunds

Greetings fhanson. If you were to lease a 2006 Lexus GS 300 2WD through Lexus Financial Services right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00178 and 54%, respectively.

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random987

Thanks Car_Man,

The money factors are pretty decent, but the residuals on the GS models are not very competitive with the 5-series or the M45. Why is that?

Let's assume that I can get the purchase price for a GS430 for 53,000, 12,000 miles, 3 years. What kind of lease can I expect?

random987

Bump.

Also, do you have Feb's numbers for the GS430 and 300?

THanks

rockclimberla

Hi Car_man,

I've read all of your posts regarding the GS300/430 and you are very knowledgeable and helpful. I have created an Excel worksheet to calculate my possible lease payments and just needed some accurate information to plug in. I was wondering if you had the updated money factor and residual values for the 2006 GS300 in February.

Currently, I am using the January numbers that you posted: .00178 money factor and 52% residual value.

Your help is appreciated.

Daniel

sherry8

I am new at this. What is money factor and residual value? Can you advise me on whether it is more economical to leasea a new 2006 GS 300 for 36 months, 15k miles a year or purchase a pre-owned 2006 GS 300? Or perhaps it would be best to lease a pre-owned 2006 GS 300? I appreciate any help on this matter.

rockclimberla

Hi,

You have a lot of reading to do. http://www.edmunds.com/advice/leasing/articles/index.html

CarMan@Edmunds

Hi random987. It is difficult to say why the residual values for the GS are not as attractive as the residuals for the BMW 5-Series or Infiniti M45. Perhaps Lexus is being more realistic about the future value of this vehicle than those other automakers are. I know for a fact that BMW artificially inflates BMW Financial Services' residual values on a number of vehicles to make their lease payments more attractive than they would normally be. It essentially is a way for it to hide lease support.

I'd be happy to estimate what this car's lease payment should be like for you. However, in order for me to do so I also need you to provide me with the MSRP of the model that you want.

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CarMan@Edmunds

Hey random987. Lexus' January lease program is scheduled to run through March 31st. So the money factors and residuals for the cars that you are interested in should be the same this month as they were last month.

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CarMan@Edmunds

Thank you Daniel. This car's February numbers should be exactly the same as its January numbers. Let me know if you need them again or if you want them for a different term or mileage allowance.

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CarMan@Edmunds

Greetings sherry8. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment. Once you have read them, stop back and I would be able to answer any specific questions that you have about leasing a Lexus GS, or about leasing in general.

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rockclimberla

Car_man,

Thanks for the response. I am getting a quote on the GS300 of MSRP 50704, Invoice 45704. I am looking at 3 year lease, 10k per year. Can you confirm what the buy rate MF and residual value will be for this vehicle with these terms?

The numbers I am using are .00178 and 54% (which is the residual value for 12k a year) which give me $639.09 a month (not including taxes). Also, for some reason the dealer MSRP is slightly higher than the MSRP listed on Edmunds.com--is there a reason why there would be a $394 price difference?

Thanks.

epf55

I'm looking for a GS300 AWD, for 36 months & 20,000 miles/yr. Would you mind sharing what the factor & residual value will be for this? Thanks

shepali

Car man - what are the current lease factors for a 24 and 36 month lease on a GS300, with 15,000 miles/year? (i.e. MF and residual).

dmason12

I am also looking for 36 month money factor and residual for, but for the GS430. I am in CA. The info would be much appreciated.

CarMan@Edmunds

You're welcome, rockclimberla. According to the latest information that I have seen, if you were to lease a 2006 Lexus GS 300 2WD through Lexus Financial Services right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00178 and 54%, respectively. I'm not sure if LFS offers a 10,000 mile per year option. I'm not sure why the MSRP that the dealer quoted you is higher than the one that is listed here at Edmunds.com. Perhaps there was a price increase that Edmunds has not picked up on yet, or perhaps the dealer is including some sort of fee in the price that it quoted you, like an ad fee.

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CarMan@Edmunds

Here you go, epf55. If you were to lease a 2006 Lexus GS 300 AWD through Lexus Financial Services right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00178 and 53%, respectively. 15,000 miles per year is the highest mileage allowance that LFS publishes residual values for. If you need to drive more than this, you will have to purchase additional miles on a per-mile basis. It is less expensive to do so at lease signing than it is to wait until the end of your lease and have to pay an excess mileage penalty.

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CarMan@Edmunds

Hi shepali. If you were to lease a 2006 Lexus GS 300 2WD through Lexus Financial Services right now for 24 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00178 and 58%, respectively. The numbers for an otherwise identical 36 month lease should be .00178 and 52%.

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alboogie7

getting a rate for a GS300AWD with almost every option available Purchase Price$46,322, residual is 55% for 12k per year and the money factor is .00178. Total out of pocket is $3216 which includes 619 1st month, $167 trasnfer plates, 600 bank fee, $44 tax on bank fee. Lease for 36 months is $619. Is this a good deal? Please advise.
Many thanks to all!

acespade

I am new to leasing. I read the primers but can't figure out if this is a good lease.

Here is what a Bay Area salesman quoted me:

MSRP $50704 My price $44500

$3000 down 48 months at $637.72 including tax(7.75%)

Residual Value $20788.64

Money factor is 0.00136

Mileage Allowance 15000 miles

bartalk3

May I ask what Bay Area dealership gave you that price?

acespade

Magnussen Lexus Fremont.

Are you buying a GS?

bartalk3

Possibly. Debating between the GS300 and the new ES350. If the 350's handling is at all improved over the current model, I may go for that. Even at sticker, it's thousands less than the GS comparably equipped. But it won't handle like the GS. On the other hand, the other factor is that the GS350 will debut in the fall.

Thanks for the ref. to the Fremont dealer. I'm going to be spending several months in the Bay Area this summer.

alboogie7

What is the money factor for April?

CarMan@Edmunds

Hi acespade. A base 2006 Lexus GS 300 2WD has a spread of a little over $5,000 between its full MSRP and dealer invoice prices. You were quoted a $6,200 discount on the car that you are considering. As long as the price that you posted is not taking your down payment into account, this is a very good deal. The money factor that you were quoted for this car is right in line with Lexus Financial Services' buy rate money factor for it for consumers who qualify for its Tier 1 credit tier. This factor is slightly lower for consumers who qualify for its Tier 1+ tier, at .00126. Overall, this is a very fair deal.

You really should not make such a large down payment when leasing though. If your leased car is totaled in an accident or stolen, your $3,000 essentially disappears. You would be better off not making any sort of capitalized cost reduction. According to my calculations, if you were to lease a base 2006 Lexus GS 300 2WD with an MSRP of $50,704 and a selling price of $44,500 through LFS right now for 48 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $741.

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