2013 and earlier Lexus GS 350 / GS 460 Lease Questions

mi7

btw that's $635 tax included.

billyperks2

Your out of pocket seems a bit high, you should be shooting for $18 to $19 hundred.

mi7

yeah I guess you're right...

well I shopped around a bit more and here's the latest:

$595+tax (CA 7.75%)=$640/month
36 months on 12k miles/year
$2k out of pocket

is this better?

mi7

can someone tell me if there's anything wrong with a 48 month lease?

the dealer says if i go with a 48 month lease, then it's $580 incl tax.

im sure i can drive the vehicle for that long...

billyperks2

Sounds right.

CarMan@Edmunds

Hi mi7. I think that your statement "im sure i can drive the vehicle for that long..." sums up the problem with a four year lease very nicely. A lot can happen over the course of four years that could cause you to want to get out of your lease early, which is usually very expensive to do. Your family situation could change causing you to want a larger / smaller vehicle, your commute to work could change causing you to go way over your mileage allowance, you could just plain get sick of your car, etc... I personally never lease vehicles for more than 36 to 39 months.

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colslick

Car man,
You've been a great help in my current lease search. Am now adding GS350 to my list (can save over $40/mo on gas vs my current M35 I'm terminating ) I'm looking for May 24/15K and 36/15k figures. Thanks in advance if you can help.

madrad

Car_man,
Is there somewhere in the forums that you host where I can info re purchase and lease experiences for Lexus GS 460?
Looking for 24 month lease, 12K...do you have info on money factors and residuals for May or even better June for this vehicle?
Many thanks...
MJC

spacklebucket

I was quoted the following (yesterday) for a lease on a 2008 GS350 AWD:

36mo/12k mi/year....includes sales tax (I think its 7.375% for Westchester County, NY)
residual 49%
MF for tier 1 .00125

Everything except ML -
List = $50,999
Sale = $47,200
Drive off = $3229.04
***** $707.19/month

with ML -
List = $52,396
Sale = $48,994
Drive off = $3353.01
***** $739.11/month

This seems extrordinarily high to me. I have seen some pricing in this forum that looks better, but not sure if that is for a AWD model and if it is - if that really makes such a difference. I'm also not sure where the problem is with this pricing. Does anyone know if its the sale price or the residual?
Couple red flags I heard from the salesman - "the residual went down this month and will go down each month as it gets later in the model year", and "we don't negotiate prices on the GS because they sell so well".
Certainly, I can and will consult another dealer. This one just happens to be the closest to my home.
If anyone has bought one of these cars recently and is willing to post their numbers for comparison, I would be grateful.
Thanks

billyperks2

I can tell you that the sales prices is way too high for this car- I got a quote a couple months back from Mcdermott Lexus is New Haven CT for 45,950.00.
Here is the breakdown:
Base Price 40,568.00
Nav 1,555.00
Rain Sensing Wipers 420.00
Wood Interior 264.00
Spoiler 160.00
Heat/Ventilated Seats 160.00
XM 389.00
Preferred Accessories 117.00
Park Assist 400.00
Delivery 765.00
Total Invoice 44,798.00

44,798.00
500.00
45,298.00

McDermott Price 45,950.00

litman13

I got a lease in Houston, TX 08' RWD GS 350 with ML, NAV, 18' summer tire w/ spare, rear spoiler, rain sensing wipers, rear sun shade, ventilate seats, intuitive park assist, preferred accessory package...MSRP 51,590....
SELLING PRICE 46,388... OTD 49,569.04. I think it's a fair price
I went to finance dept. and they told me if purchase w/out any down payment it would be approx. 980/month for 60 months. They recommended leasing, which they are having a special and Saturday was the last day. The lease came out to be 925/month for 36 months/ 15 k/ year. The residual value was 46%. I do not know what the money factor was....i would think it would be a fixed rate set by Lexus with good credit . This lease i only have to pay 925 at signing. I think the payment is too high....please give some advices on this lease. Thanks

adpcs

I'm not sure how much this will help, but I bought an 07 in August of last year from Dallas (I live in Houston). The price that you are getting sounds fair, but something else doesn't match up. My MSRP was $49047, and I bought mine for $44,200. Besides the first month payment, and security deposit, I put nothing else down. I have a 39 mo / 48750 mile lease. I pay $790 / month. You need to find out the money factor that they are charging, because I think that is where the problem is (it is negotiable, and they will try to get as much as they can from you). If you need someone to talk to at another dealership to confirm numbers, email me, and I can get you my sales lady's info. She was great to work with, and we did a deal in about 2 hours over email.

litman13

The MF is .00215 . I asked the finance guy that there are people that get .0015 at other dealers but he said that rate is unheard of. Is it true ? I did see some postings here that they get 49 % residual and .0015 MF. He also showed me the chart from Lexus financial stating the residual value for each term of lease.
If you could please give me your sale lady' infor. Thanks

adpcs

I don't think I can put that info on the forum board. Can you send me a message with your email address, and I will be happy to give you more details. I have a feeling I know where you are getting your "deal" from...

litman13

litman13@yahoo

tom17

FYI - There is about another $1600 that the dealer should come down if you work hard. The dealer in Orlando quoted me a price over $1600 less than what you mentioned on the same MSRP car. I got my local dealer to match it (FL). Not sure about leasing numbers since I paid cash.

CarMan@Edmunds

Hi colslick. According to the latest information that I have seen, Lexus Financial Services' buy rate lease money factor and residual value for a 24 month lease of a 2008 Lexus GS 350 2WD with 15,000 miles per year are .00115 and 52%, respectively. The numbers for an otherwise identical 36 month lease are .00115 and 46%.

Car_man
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atlkevin

Hi,

This board is very helpful, but I can't find a lot of info on the right purchase price the GS 350. I'm considering the '08 GS 350 RWD with navi as the only addition. Cars Direct shows the invoice as ~$42k, but I didn't know how much (if any) these cars were going for over invoice. I can't find a board dedicated to "Prices Paid and Buying Experience" for this car, but I'm hoping some people on the board can chime in. I'm in Atlanta, if it makes a difference.

Many thanks!

mfrf

Just was offered the following deal on a GS350 with nav. $686 per month 36 months 10k per year includes nyc salestax . no money down except for bank fee and license.
Is this a good deal?

tom17

I bought a fully loaded ($52K sticker) GS350 2 weeks ago for about $1000 under invoice ($7K discount off MSRP). The dealer showed me the invoice & holdback. My price was below invoice and holdback. They had a $699 dealer fee, so that was their profit. I used the internet price from Lexus of Orlando and the local dealer matched it.

shtirlets

mfrf, is your GS AWD or the base model? also, where did you get this deal from?
Thanks.

ghstudio

The problem with leasing the GS350 is the terrible residual. Apparently Lexus doesn't think much of the value of their used cars. 52% residual on a 24 mo lease is almost unheard of....infiniti M35 is 62% which is typical. That's why the GS350's just shouldn't be leased...and if they are right, it's a terrible purchase as well.

And it doesn't get much better if you go out 36 months.

class77

Why in the world is the residual so low? The residual for a 2 yr/15,000 mile BMW 535 lease is 66%. For 3 years, it's 55%.

In the real world, are people that sell their Lexus' after 2 years getting that poor a price?

myerslaw

I, too, could not stomach the leasing rates on the GS350 last year. Clearly, it was not a purchase method Lexus wanted to subsidize! But if Lexus doesn't own and lease the vehicles, then Lexus doesn't end up in 2 or 3 years with a large number of leased vehicles which it must then dispose of. So I'm guessing that Lexus, like any good Japanese company, is taking the long view rather than the three month time period American (and I guess German) companies do -- they worry about things further ahead - they lose some sales now, but they have fewer worries down the road. However, it sure doesn't sound good when a dealer gives you a 52% residual!!!!

CarMan@Edmunds

Hi class77. The reason that Lexus Financial Services' residual values are lower in general than BMW Financial Services' residuals is that BMW artificially inflates its vehicles' resids to provide consumers with lower monthly payments while Lexus does not...at least not as much. BMW will deny that they do this until they are blue in the face, but it's vehicles' residual values are unrealistically high. That's great for lessees, but not great for them when they get the cars and trucks back.

Car_man
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qikcar

Planning on leasing a loaded lexus GS (premium + navi + ML audio/bluetooth). MSRP is 51900. MF is .00085 that I am qualified for. Will put down 2000 only in drive off costs. I need 36 months/12K a year lease. Best offer so far is 659 + tax. Other offers are 699 + tax, and 680 + tax. Residual quoted is 42-52% - its keeps on changing - or are they just lying? Sell prices are ranging from 46500 to 49000. Can I get this car for 650 w/ tax included or am I dreaming.

Thanks

pawatson5

Gikcar,

You've been offered a great deal! I have been shopping for a lease in Dallas and have gotten much worse. Where are you located. I have been quoted a 48 month lease 820 down 711 per month, or 699 per month 1420 down, this inlcudes TTL. I want to get a 36 month lease so if you can share where you are located and the dealer I can try and get the same deal. I can travel to pick a car up.

Thanks!

qikcar

Pawatson5

For a 48 month lease, with 2000 drive off costs, i got 655 a month with tax included, for the fully loaded lexus gs 350. Maybe to far for you, but check out Longo lexus in el monte, ca and also glendale, ca lexus.

motoevolution

2008 GS350 RWD ML + Nav
MSRP $51590
Selling price $45100
36 month lease 15k miles per year with just first payment out of pocket.
$709 + tax
Residual 42% MF .0003
Do the numbers look right? The residual seems horrible compared to other brands.

CarMan@Edmunds

Hi motoevolution. The lease program that you were quoted is right in line with Lexus Financial Services' current program for this car. You're right, the GS' residual values are pretty bad, but unfortunately I suspect that we will being to see a lot of terrible residual values out there over the next several months. Banks, even manufacturers' captive finance companies, are starting to become much more conservative in estimating vehicles' residual values because a number of manufacturers have been forced to take huge charges to their earnings for overestimating residuals in the past lately.

Car_man
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xiajiagg

Hi, Car_man.

Do you know what is the other charges for the current GS lease program, such as acquisition fee, security depost, disposal fee, etc. anything other than the Ist month payment of actual car and tax? TIA.

cardent

Has any one leased or purchased gs350 in last few days, if so what price? its my first time buying/leasing

CarMan@Edmunds

Hi xiajiagg. Lexus Financial Services charges a $600 acquisition fee on every vehicle that it leases. It will waive its security deposit requirement for free for consumers who qualify for its top credit tier. I am not aware of any sort of disposition fee, but that does not necessarily mean that it doesn't charge one.

Car_man
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usp357

Just did a lease on a '08 GS350 AWD with Nav. I only put fees down (regis, destination), which came to about $1,600. Lease is for 48 months and 12K miles/year. Monthly is $588. MSRP was about $50,100. Lease rate based on sale price of $45,200. This replaced my 530xi. There are pros/cons for the GS but so far, the GS seems to be doing fine. The first shock will be when I bring the GS in for servicing and have to open my wallet. BMW covers all service (even brakes!); Lexus does not.

myerslaw

This is the first time I've seen an affordable/reasonable lease on the GS!!!! Good job. Pay very close attention now to your ride comfort/handling situation. Finally tired of being banged around by the 245-40-18 Yokohama summer tires, I just switched to Bridgestone Turanza touring tires in 245-45-18. The ride is quite different, much more comfortable, but the handling becomes slightly "floaty" over 100mph. Wife is ecstatic -- long drives are far, far more tolerable. Had the vehicle been new (mine is an 07) my dealer would have changed tires for me at 1000 or 5000 miles -- so see how you like them.

maximafan

I was curious about the BMW "Free Maintenance". Does that also include the 15,000 and 30,000 mile maintenance that is due like we're supposed to do for our Lexii?

kyfdx

Yes... it includes all maintenance within the 4yr/50K mile period.

usp357

I live in the Northeast so my tires are 50 series 17 inchers; I can't recall the width. Some exact tire size as my '06 530xi. The ride is about the same. Although the BMW is more sport tuned, the stiffer sidewalls on the GS run flats presents inherent ride characteristics. As for those of you out there contemplating the BMW, just remember to factor in that while the monthly on the GS will be lower, add about $500/year in service costs. Oil changes and tire rotation cost about $200. So if you amortize service costs over the course of a lease, that could be an extra $30-50/month that you would NOT pay for the BMW maintenance. And yes, the service is free. In the 3 years I had my 530xi, I did not pay one penny for service. That included a bunch of electrical work plus new brake pads, wipers blades, oil changes (Mobil 1), etc.

billyperks2

That included a bunch of electrical work plus new brake pads, wipers blades, oil changes (Mobil 1), etc.

So the car was in the shop a majority of the lease period?

mmoreno1978

LOL!!!!!!!!

I hate my 535xi

I will never buy German again!

mi7

Hi guys, what should the money factor and residual rate on the GS350 right now?

also, a found a GS 350 ($49k car) with the dealer willing to sell around $42k--is this a decent deal at this time? The reason why im asking about residual value is the dealer told me the GS stands at 42% residual. is this legit?

CarMan@Edmunds

Hi mi7. Lexus Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2008 GS 350 with 15,000 miles per year are an extremely attractive .00020 and an extremely unattractive 40%, respectively for consumers who qualify for its Tier 1+ credit tier. If you were to lease with only 12,000 miles per year, this car's residual value would be 2% higher. As you can see, the horrible residual value that the dealer quoted you is unfortunately correct.

Car_man
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rescuu

I am interested in leasing a GS 350 AWD with NAV- 15K/36 mo only tax title etc down.Unfortunately I am not very versed in the lease lingo.Can someone tell me what is a reasonable lease. I have a great credit and I am willing to put down MSD.
Would appreciate your input.

CarMan@Edmunds

Greetings rescuu. It is extremely important to understand how leasing works prior to entering into negotiations with dealers so that you can avoid being taken advantage of. The following informative articles that are available here at Edmunds.com will teach you everything that you need to know on the subject: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

Here's the crib notes version. The best way to get a good deal on a leased vehicle is to negotiate as low a selling price as possible on the car that you want and then have the dealer calculate your monthly payment using its buy rate lease money factor.

The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Do some research to find out exactly how much you should pay for this car, the "Lexus GS Prices Paid and Buying Experiences" discussion is a good starting point. Then comparison shop with a few dealers in your area and go with the one that gives you the best price, provided you feel comfortable dealing with them.

Once you have arrived at a price that you are happy with, have the dealer calculate your car's monthly payment using its buy rate lease money factor. It is important to know what the buy rate is for the car that you want because dealers are often allowed to mark-up or pad money factors to add hidden, back-end profit to deals. Lexus Financial Services' current buy rate lease money factors for the GS 350 AWD are .00120 on the 2009 model and .00015 on the 2008 model for consumers who qualify for its top aka "Tier 1+" credit tier.

That's about it. As long as you focus on those two important numbers, the selling price and money factor, negotiating a lease isn't too difficult. Good luck and let us know if you have any other questions.

Car_man
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redbull

Hello,

I'm about to pull the trigger on a new 2008 RWD GS350 in Smoky Granite/Black equipped as follows:

18" summer tires
Illuminated door sills
Navigation
Spoiler
Ventilated Seats
Preferred accessory pkg (mats, wheel locks etc)

ML would have been nice but not a necessity - I need to keep the cost down as much as possible. I don't like rain-sensing wipers or the wood steering wheel, and don't need the rear window shade.

$49,030 MSRP
$41,866 Base Cap Cost
$700 Origination Fee
.0002 money factor
42% Residual
36 months @12K miles/yr
$623/mo + CA tax of $48.28
$1,025 OTD (first payment + DMV fees)

Does anyone think I can do better than this, or should I wait for a 2009? The car is brand new (only 14 miles) and is exactly what I wanted if I were to order it. The price I negotiated is $1,750 below invoice, and the interest rate is only .48%. This is really cheap money, the interest for the whole 3 yr term is only $455 - the payments are almost all principal. If I wait for a 2009 I doubt if I could do this for much less than invoice, and the money factor may be higher at that point.

By the way, the cost of the car was $384 higher, but I balked at the $700 origination fee, and so forced them to come down to where they are now to help cover it.

Any comments are appreciated - Car_man, Anyone?

Thank you.

gator5000e

Hi all. given what I have read here, this offer on a 2009 GS 350 ML loaded looks like it is pretty high.

MSRP Price: $52,076
Sale price: $46,250. $300 over Invoice
Residual: 42% / Buy Out price: $21,871
MF: .00065
Term: 12k miles, 36 months
Acq Fee: 700;
etag fees 40
govt fees: 467
no security (assm good credit)
dealer fee 699
tag transfer 100
Mpnthly Payment: $699 plus tax

Sales manager says "$699 + tax is my best deal I can do with $3500 down. Lexus just does not have any incentives cash to give us to go further down. I'm at Invoice now"

This guy pulling my leg here? Think he has some room?

Thanks.

gator5000e

Not much activity here. If anyone has any thoughts on the offer I received in post 305 above would be appreciated. Thanks!!

cpa3

Gator

I think you can do better. Try calling all the dealers around your area. I have never heard of the etag fee or a dealer fee...those are called profit. I also assume the govt fee are you dmv fees? I tried to create your lease payment. The only way I could get it to come to that number is that you also will be paying the 3500 down, the 2006 in fees plus the 699 first payment...then it works out to 699 plus tax. ...I have bought two lexus's 350 for my wife and my mother in law during the last year. In both cases I had to wait until the end of the month to get the deal I wanted....Dont go back to the dealer....do all the rest of your negotiation from home. I purchased those cars at about $1300 below dealers invoice...

Good luck and let us know how you did...I am helping my Dad get a car and he is considering this and the BMW....

The GS is a nice car but the residual value at 42% makes this an expensive car to lease. Compare this to the BMW 328i which has a 58% residual after 3 years...

gator5000e

Thanks you cpa3. The money factor I was quoted, .00065, looks extraordinarily high. Am I miscalculating it or does that seem very high to you? I will also find out what those other fees are - understanding they are profit.

If anyone has leased a GS 350 recently, any specifics on MF, prices paid, etc. to assist in my negotiation would be appreciated.

And thanks,again, cpa3.

myerslaw

Assigning a 42% residual is what absolutely kills you on the monthly payments. Unless your plan is to buy the car at that time, this seems like a lease Carman would have you run away from.....fast. There is far too large an upfront payment, the monthly payments are ridiculously high (because of the completely non-competitive residual). The only good thing is an excellent starting price -- but that is simply eaten up by the residual. Lexus doesn't have incentives because I believe Lexus doesn't want to lease its cars itself. Why not see what another bank/leasing company would do if you gave them that purchase price?