2013 and earlier Lexus GX 460 Lease Questions

CarMan@Edmunds

No problem, phat3. I am not personally all that familiar with how much this truck is selling for right now, but you may be able to get an idea by visiting the following discussion: "Lexus GX 470: Prices Paid & Buying Experience".

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds

Hello hpt. Lexus' lease program for the 2006 GX 470 is very attractive right now. If I was in the market for this truck I would definitely lease it. Having said this, the lease money factor that you were quoted is much higher than Lexus Financial Services' current buy rate factor for this model. If you were to lease a 2006 Lexus GX 470 through LFS right now for 48 months, its buy rate lease money factor should be .00120, assuming that you qualify for its top credit tier. It appears to me as though the dealer that you are working with is trying to mark-up this truck's base money factor to add additional back-end profit to your deal. This practice is completely legal and fairly common, but can usually be avoided by consumers who know what their vehicle's money factor should by by confronting the dealer that is trying to mark their lease up or by shopping around.

I notice that you mentioned you might make a $1,500 down payment on your lease. 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 GX 470 would be exactly the same, regardless of whether you had put $1,500 down, or had made absolutely no down payment at all. You can still trade in your Caravan if you want to, just have the dealer cut you a check for it rather than using the proceeds as a capitalized cost reduction for your lease.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds

Greetings banneheim. The selling price that you were quoted for this truck looks good to me. Furthermore, the lease money factor that the dealer told you they are using is right in line with Lexus Financial Services' buy rate lease money factor for this model right now. Both of these things are good signs. I personally don't think that you have much more room to negotiate here. Using the numbers that you provided in your post, I estimate that this truck should have a zero down, pre-tax monthly payment of around $543.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds

Congratulations on your new truck, kgb77. Thanks for taking the time to share the details of your lease with everyone. Enjoy!

Car_man
Host
Smart Shopper / Prices Paid Forums

bodhi2

Dear Banneheim,
Can you please give the detailed specs of the GX470 as well as the detailed formula of your lease deal one more time please.
I will try and mimic the same deal in Illinois.
Thanks for your help.

Best Wishes,
Bodhi

banneheim

Bodhi,
2006 GX 470 , NAV, Mark Levinson Audio, RSES(DVD), Third Row, Hitch Bracket, Preferred Accessory Package, Cargo Mat, Net and Wheel Locks, Rear Spoiler and Tow Hitch.

Final Price: 48216.00
Fees: 1025.00
39 month lease, 12K year, 55% residual, .00120 MF
Payment : $600.00 month (includes NC 3% sale's tax), 0 downpayment, 0 security deposit.

Hope this helps.

hpt

Thank you, Car_man, for the advice. One follow-up question. Now that the "December to Remember" even is over, do you know what the lease money factor is likely to be?

bodhi2

Thank you so much Banneheim.

Best Regards,
Bodhi

magee1

I can't see how in the heck you can come up with a payment of $543 on a 36-month GX470 lease. I've plugged the numbers into Edmunds' lease calculator

MSRP $50,050
Purchase price $44,500
Residual (58%) $29,000
Mileage allowance 45,000
Money factor .0021

And with nothing down, the payments are pushing $800. (The dealer quoted me $857.) Am I missing something?

Please help.

Thanks

kyfdx

Using your example... I get $585/mo. plus tax..

magee1

Can you tell me where (and how) I can come up with that number?

Thanks so much.

kyfdx

Selling price minus residual = Depreciation
$44,500 - 29,029 = $15,471 / 36 months = $429.75 monthly

(Selling price + Residual) X Money factor = Finance charge
($44,500 + $29,029) X .0021 = $154.41

Depreciation + Finance Charge = Monthly payment
$429.75 + $154.41 = $584.16 PLUS tax

At signing, you would have to pay first payment, security deposit (if required), acquisition fee and title/license fees... This is all pre-tax.

regards,
kyfdx
Host-Prices Paid Forums

bdl99

Can anyone tell me what I could expect as a Tier1 MF for 36 month lease on GX470? I am in NJ and looking for a GX470 with Nav and 3rd Row. I was also interested in sports package but no one in the area appears to have any.

Today I was quoted .00275, which seems high to me. Is it just that there are no deal currently or should I be trying elsewhere? I was also quoted

MSRP $53,143
Purchase price $51210
Residual (59%) $31354
Mileage allowance 12,000/year
Money factor .00275

I'm assuming that there would be some more movement on the purchase price but didn't even go there based on the MF.

The other element to this deal is that I still have six months left on my RX330 lease, so they would be buying the RX330 for $30K to purchase out of the lease. I think there was a shortfall of about $800 which I think they rolled in to the lease price. My RX330 has sports package and 25K miles so I don't think they are using any of there movement on giving me a high price for the RX330.

thanks

cwakefield

Help! I'm desperatly trying to figure out your numbers. I hope you are right and I'm just not getting it.

I figure a selling price of 44,500 with a 55 % residual to me more like this.
44,500-24,475=20,025 / 36 = 556.25

You would have to have a 67% or so residual value to get these numbers.

I have a negotiated price of 44,500 with a 58% resiual and a .00255 money factore (not real keen on that) trying to figure out if I can afford this payment.
thanks again!

bdl99

cwakefield

Shouldn't the residual be 55% of the MSRP not 55% of the selling price.

cwakefield

The calculation above by kyfdx shows the calculation using 'selling price' He used 44500 which is the same as mine. I don't see MSRP given...

bdl99

I don't think that kyfdx showed the MSRP, but I believe he did use if from an earlier message. The earlier message shows MSRP of $50050 and 58% of 50500 is indeed $29029 (as shown in the message from kyfdx)

thanks
Brian

kyfdx

Yup... what bdl99 said... The residual is always calculated off of the MSRP.

cwakefield

Gotcha!! Thanks!

trj

Does anyone know the current Money Factor rates on 06 GX's, now that the "December to Remember" offer is long gone?

CarMan@Edmunds

You're very welcome, hpt. Unfortunately, now that the special "December to Remember" sales event is over, Lexus is no longer providing any sort of lease support on the GX 470. As a result, if you were to lease one through Lexus Financial Services right now, you would have to use its standard lease money factors. Its current buy rate standard lease money factor for consumers who qualify for its Tier 1+ credit tier is .00265. As you can see, this is a lot worse than this truck's December money factor.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds

Hi bdl99. While the lease money factor that you were quoted for this truck looks high, it's about right. Unfortunately, Lexus is not providing any sort of lease support on the GX 470 this month. As a result, if you were to lease one through Lexus Financial Services you would have to use its standard lease money factor, which is .00265 for consumers who qualify for its Tier 1+ credit tier and .00275 for consumers who qualify for plain Tier 1.

You probably would be better off waiting to lease the new Lexus GX that you're interested in. By doing so, you won't have to pay to get out of your current lease and Lexus may eventually introduce some sort of lease support on it. The next logical time for it to do so is April, but there certainly is no guarantee that it will have any sort of special lease program on this truck then. The main reason to wait would be to avoid having to pay the costs associated with getting out of your current lease early.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds

Hi trj. I am sorry to say that Lexus is not currently providing any sort of lease support on the GX 470. As a result, if you were to lease one through Lexus Financial Services, you would have to use its standard lease program. Its current buy rate standard lease money factor is .00265 for consumers who qualify for its Tier 1+ credit tier.

Car_man
Host
Smart Shopper / Prices Paid Forums

cdfwife

FYI, I went back to the dealer that had quoted me invoice and a money factor of .0012 in December. Because they had quoted me by email, and we had a record of it, she was able to honor the deal on Jan 30. Walked out with a lease of $630 per month and change, loaded with nav, Levinson, tow, chrome tip. Down was roughly $1000, which included the first payment. She also offered to sell my friend an RX at invoice that very day. Otherwise, yes, the money factor has risen quite a bit, making the leases more expensive right now. We had a tremendous experience with this dealer, they gave us a straightforward quote via email, and we drove up and just signed the papers. No crap, no finance manager, etc. And we love the vehicle. Thank you Edmunds for the great info!

cdfwife

I almost forgot, we have the rear entertainment option too.

bdl99

Hi Car_man

Thanks for the information. I have one question that I'm hoping you can help with:

Where does any capital reduction fee fit in to the lease calculation? I've followed the examples that you have posted and they have been a great help. I'm now actually looking at an MDX and their offer calls for a $1005 capital reduction charge. I've read of the inherent risks of putting money down, but a MF or .0014 is not to be sniffed at.

Do I:
1) Just reduce the sale price by $1005
2) Reduce the depreciation cost by $1005
3) Something else more complicated

thanks

CarMan@Edmunds

That's great news, cdfwife. Congratulations on your new truck. Enjoy!

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds

You're very welcome, bdl99. If you decide not to make a capitalized cost reduction on an advertised lease that calls for one, the vehicle's capitalized cost will be higher. Specifically, in this example if you choose not to make a $1,000 cap cost reduction, the cap cost would go up by that same amount and the vehicle's monthly payment will increase a little. Keep in mind that most manufacturers' advertised lease payments leave a little meat on the bone so to speak. You may be able to negotiate a lower selling price on the truck that you want than the one that was used in the advertised lease. If so, this will help to make up for some of the cap cost reduction that you have decided not to make.

Car_man
Host
Smart Shopper / Prices Paid Forums

leventor

Can you tell me the dealer name,
I am quoted for lease the following lease, I like this dealer but seems like he is trying to take advantage of my liking Lexus, I have Rx330 currently.

$1770 drive off, with first months payment
$780 per month with 15K a year on a 36 mo lease..

Thanks

cdfwife

The dealer was Crown Lexus in Ontario, Southern California. Internet department. Email me for contact name if you like. They are also selling my friend an RX330 at invoice.

Good Luck.

shepali

Carman - what are the current lease factors for a GX470 for a 24 and 36 month lease, with 15,000 miles/year? (i.e. MF & residual)
Thanks

amcpa

Also, what about the money factors for 20K miles per year for 24, 36 and 48 months?

jr32

I'm told that in Ill, unlike many other states, the buyer has to pay the taxes on the lease sale price. My question is: If I lease from a dealer from another state, do I have to pay Il taxes? Being that I don't own the vehicle, the lease bank does, I don't see why I would have to pay taxes if the lease bank is in a state that doesn't charge taxes on lease vehicles. Any idea?

CarMan@Edmunds

Hi shepali. If you were to lease a 2006 Lexus GX 470 without the rear entertainment system 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 .00265 and 63%, respectively. The numbers for an otherwise identical 36 month lease should be .00265 and 57%.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds

Hi amcpa. The money factors for any length lease of this truck are the same as the ones that I mentioned in my previous post. This truck's 48 month, 15,000 miles per year residual value is currently 47%. 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.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds

Unfortunately, jr32, I believe that the answer to your question is yes. So many people were travelling to states that had no sales tax to purchase their new vehicles that consumers are now required to pay their home state's sales tax on vehicles that were purchased out of state when they try to register them in their home state. The interesting aspect of this deal is the fact that you are talking about a lease and the bank's name will be on your vehicle's registration, not yours. It probably wouldn't matter. The bank that you are leasing through might get billed for the sales tax instead of you, but they would just send you a bill for it.

Car_man
Host
Smart Shopper / Prices Paid Forums

gxworld

hi guys and car_man. this is my 1st post but i've been reading posts for a long time. this year i plan to lease a new 06 gx470. this will be our 3rd car, will be used mostly for leisure. i've done my initial research so i felt compelled to approach my bank (navy federal cu) to give me a rough estimate on a lease. here are the #'s i gave the bank:
06 GX470 w/Nav,3rd row and Rear entertainment
MSRP 53970 (Cars.com)
Target price 47000 ~400 over invoice
NFCU lease offer:
24months for 640.00 res 37300 15k miles 4.9%APR GAP incl
36months for 655.00 res 30800 15k miles 4.9%APR GAP incl
upfront cost: 200.00 + 1st month, no tax in texas if car is not used for income purposes.
end of lease: 350.00 dispo waived if i lease again
i can buy, trade or sell the vehicle at any time or return at the end of the lease. no downpayment involved.
is there anything hidden or i need to ask the bank to clarify? good deal, bad deal?? pls feel free to throw you 2 cents. thank you guys in advance.

kyfdx

I'd check on that... Texas sales tax on leases are usually very high... Not sure how you would get out of paying that..

gxworld

kyfdx, i'd appreciate you checking. that info i got from nfcu itself. if they're not being truthful, they'll probably ask for it later in the process. however, their website says "Initial taxes, registration fees and Navy Federal's origination fee are included in the capitalized cost." any of my fellow texans here who can shed some light to this, i'd appreciate it very much. thanks guys.

shepali

The taxes on leased cars in texas has changed recently (like the last 2-3 years or so...). It used to be VERY disadvantageous to lease in Texas - each and every lease payment included sales tax on the total value of the payment (both principal and interest) - it was this way on my 1999 Tahoe that I leased in Washington state and when I moved to Texas my payment went up!! So what people did was do a balloon payment loan, which resulted in the same terms as a lease when all was said and done (I did this on my 2001 SAAB). But, since then, they have changed the rules such that leasing a car has the same sales tax consequences as buying a car - so I actually leased my 2005 ES330.

Also, I'm not sure how it works, but the dealerships earn 'tax credits' from the state based on the volume of cars they sell, I believe. Then, they get to sell a certain number of cars without sales tax - and that actually happened to me when I bought my 2005 ES330. While I was in the market for a new car in December 2006, almost all of the dealers were offering the same thing. What I don't understand is if that is really just a marketing thing (i.e., you are really paying sales tax, but they are discounting the car to cover it), or if it is really a state incentive. And I don't understand what happens if you traded in a car where you got the sales tax credits on a new car without the credits - I was initially told that you would still get the benefit of the sales tax on the car you didn't pay taxes on, but I have not validated that.

So, I believe that what the bank quoted was that the initial taxes that are included in the cap cost, are in fact the sales taxes on the purchase price of the vehicle - which would be the same regardless of whether you leased or purchased.

Having said all that, I am not an expert on Texas sales taxes - just someone who has leased 3 vehicles in this state, and purchased 2 others.

gxworld

thanks shepali. i searched the net about the auto sales tax in tx. i found no tax exemptions for auto leases nor anything related to credit unions. there are some specific exemptions for churches, etc. i think the qouted monthly payment already accounted for taxes. i hope that's the case. thanks again for the insights.

CarMan@Edmunds

Hi gxworld. Lexus is not currently providing any sort of lease support on the GX470. As a result, you would probably be better off leasing one through an independent bank, like your credit union, than doing so through Lexus Financial Services. I just played with some numbers and the lease payments that you were quoted by your credit union were lower than Lexus Financial's lease payments for both of the terms that you are interested in. $00 over invoice is a fairly aggressive price that I do not know if you will be able to get, but it looks like you should go through your credit union unless the dealer that you get your truck from knows about an independent bank that can give you an even lower lease payment.

Car_man
Host
Smart Shopper / Prices Paid Forums

jas9

Hello Car_man and all.
I am going to be turning my RX300 in later this month. I am interested in a GX470. I called my dealer the other day and asked if there was going to be anything on in May. He said he didn't know then, but would know around the 3rd or so. I got a telephone call this morning from a salesman who said that he was asked to call me to let me know that there were some special rates available on the GX. Tomorrow they are going to fax me over a proposal. I am going to search previous posts pretty thoroughly to gleen what I can, but was hoping you might give me some pointers. The salesman told me that the ones they currently have in stock are "typcially equipped" with "53," which have the nav, spoiler, etc.
Thanks in advance for your help. Oh, the dealership is Lexus of Reno.
Cheers,
John aka jas9.

CarMan@Edmunds

Hi John. Despite what you were told, I do not believe that Lexus is currently providing any sort of lease support on the '06 GX 470. If this is indeed the case and you were to lease one through Lexus Financial Services, you would have to use its standard lease program. This trucks residual values vary depending upon how long you lease it for and how many miles per year you need to be able to drive it. I would be happy to give you an idea of what its current program is like if you let me know the term and mileage allowance that you want.

Car_man
Host
Smart Shopper / Prices Paid Forums

jas9

Hi Car man: I believe you are right. The deal they shot me was the following:
Base $46,635.00 plus Total Accessories $6,421.00 plus Destination Charge $695.00 for total of $53,75l.00. Dealer discounted unit $4,212.00 for price of $49,539.00 then added Document etc. fee of $456.75 and Bank Acquisition Fee of $600.00 for Total Balance of $50,595.75. On a 24-month lease, 20,000 per year, the payment was $1,065.05 plus $78.55 in monthly sales tax for a total monthly of $1,143.60. Residual was $31,326.08.
For 36 months, 20,000 miles per year, the numbers were $901.26 plus $66.47 sales tax for a total of $976.72. Residual at end of three years $27,101.72. From the info I'd seen on this forum I gathered they were using the .00265 number. I didn't feel comfortable with that so decided to pass. I bought the RX300 instead of turning it in, and figure I'll keep an eye on this forum and hopefully make another attempt when they really are subsidizing.
I'd be interested in your opinion of the numbers above.
Thanks,
John.

CarMan@Edmunds

Hey John. You are definitely receiving a substantial discount on this truck. The money factor looks reasonable as well. It's just an expensive vehicle to lease right now, especially with such a high mileage allowance.

Car_man
Host
Prices Paid Forums

conflictedguy

In shopping for a new GX 470 (NAV, Rear Entertainment System), I came across an interesting situation where one dealer put together a Lexus Financial lease with a Residual % of 55% for a 15,000 36 month lease, and another cited 56%.

While I realize that's not much, one dealer said that should not be possible: Lexus Financial sets both the Residual % and the Money Factor -- they cannot be different. I checked with Lexus Financial and they confirmed this.

Anyone come across differences in Lexus Financial Residuals on essentially the same car / deal?

conflictedguy

I'VE DISCOVERED THE ANSWER:

As expected, one dealer mis-quoted the residual percentage. Even though I asked her to confirm it three times. It does appear to be a case where the people she asked just pulled it off the top of their heads -- I told her I would be running the lease through software and spreadsheets, so it would've been pointless to pad the %.

xhristina

We are considering leasing a new 2006 GX470 with navigation, the 3rd seat, etc.. This was our first visit to the Lexus dealer, so we really didn't negotiate too much - we just wanted to gather our information. The price quoted was $45,800. Leasing for 36 months, putting $1200 down and with a money factor of .0017, our monthly payments ended up at $617.

Is there any room for negotiation in that deal? Or is that pretty much as good as it's going to get? I find it hard to believe that they would hand over their BEST offer, right upfront like that. Any advice?

CarMan@Edmunds

Hi xhristina. I would be happy to give you my opinion of this deal, however it would be easier for me to do so if you would provide me with this truck's full MSRP first. You can either ask the dealer for this number, or look up the MSRP of this truck exactly as you want it equipped by visiting the following section of this site: Edmunds.com - New Vehicle Pricing. This number will show me how much of a discount you are being given and will enable me to use Lexus' actual lease program to estimate what its monthly payment should be.

For now I can tell you that the money factor that you were quoted is fine. Through September 4th, Lexus Financial Services' buy rate lease money factor for a 36 month lease of a 2006 GX 470 is .00160 for consumers who qualify for its Tier 1+ credit tier. If you only qualify for LFS' "Tier 1" tier, this truck's money factor would be .00170.

Car_man
Host
Prices Paid Forum