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2013 and earlier Lexus RX 350 / RX 450h Lease Questions

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  • After a couple of months researching, we are ready to buy the RX330. I was able to get a quote of 40,988 on an MRSP of 45,753 and 42,579 on an MRSP of 48,573. My question is what type of pmt would I be looking at for a 36 or 39 months lease with 15k mileage per year? Now that I reached my targeted price I don't want the dealer to do anything weird when I tell them I want to lease the car vs purchasing it. Thank you for your time!
  • Tonight we went to the local dealership who promised via email that they could match another dealer's price. However, when we arrived, they showed us the invoice and said that the other dealer was giving us $300 under invoice and that they could only offer $500 over invoice. The price is still fair, but I am questioning their original promise. I have not picked up the car, just did the initial paperwork and will be handling the financing tomorrow and pick up of the vehicle. The MRSP is 48,573 and I am getting 43,179 locally. Or I could drive 2 hours to the Bay Area to save $600 and get a price of 42,579.
  • I am going to Ray Catena Lexus of monmouth on Friday to look at the Lexus RX330. I am always cautious when going to a dealer. What should I look for as far as a lease. I have looked at the prices people were getting on there cars. I just don't want to get nailed.
  • Car Man, can explain why the multiple security deposits is a good deal? Yes, it lowers your monthly lease payment but you essentially tie up a huge amount of money that is better off invested elsewhere (i.e. ING, a 4% one year CD). From what I understand, you are lowering your money factor slightly by doing this. Let me know what I'm missing.

    Thanks
  • Hello vt100. You never mentioned the selling price of the RX 330 that you are interested in leasing. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the truck that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to work up a sample lease payment on the truck that you are interested in for you if you let me know what its selling price is. You should be able to get an idea of how much you should pay for this truck by visiting the following discussion: "Lexus RX 330: Prices Paid & Buying Experience".

    Car_man
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  • Hi rlb1957. Lease payments are made up of two main parts, the interest portion and the depreciation portion. The depreciation portion is the difference between your truck's MSRP and what Lexus believes it will actually be worth three years from now (or however long your lease is for) divided by the number of payments. It is difficult to predict exactly what the future resale value of this truck will be. However, theoretically assuming that you pay the same interest rate you should come out about the same by leasing this truck for three years and by financing it for three years and then selling it or trading it in.

    Car_man
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  • Hi lexusct. All you need to do to make additional security deposits on your lease is tell the dealer that you want to make them. Most banks provide some sort of discount in the lease money factor that is used to calculate the interest portion of leases for each additional deposit. I am not sure of the exact reduction in money factor that LFS provides, but I suspect that it is around .00005 to .00010.

    Car_man
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  • Hi sued2005. Let's work up a sample lease payment on these trucks for you and see what we come up with. According to my calculations, if you were to lease a 2006 Lexus RX 330 4WD without the navigation or entertainment systems options with an MSRP of $45,753 and a selling price of $40,988 through Lexus Financial Services right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $566. The payment for an otherwise identical 39 month lease should be nearly the same. For a similar truck with an MSRP of $48,573 and a selling price of $42,579 I estimate that the 36 month, 15,000 miles per year payment should be around $572. Again the 39 month payment would be about the same.

    Car_man
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  • Hi footwood. If you are not all that familiar with leasing and how it works, 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.

    As far as what to look for goes, make sure to negotiate as low a selling price as possible for the truck that you want and that the lease money factor that is used to calculate your lease payment is in line with Lexus Financial Services' current buy rate money factor of .00225 (this assumes that you qualify for its top credit tier).

    Car_man
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  • Hi lex123. While you are tying up a significant amount of money by making multiple security deposits on a lease the return that you get on that money often exceeds the low returns that individual investors are able to get on safe investments right now. Let's say that Lexus Financial Services provides a .00005 reduction in money factor for every additional security deposit (it could very well be more than this). Looking at the lease payment that I just calculated for another community member, the normal lease payment on a 2006 Lexus RX 330 with an MSRP of $48,573 and a selling price of $42,579 leased through LFS for 36 months with 15,000 miles per year would be around $572. If you were to make 5 additional security deposits on this truck, with each one providing a .00005 reduction in its money factor, you would have to lay out $600 times 5 or $3,000. The .00025 reduction in money factor would reduce this truck's monthly lease payment by $17, for a total of $204 per year. A $204 annual return on a $3,000 investment is equivalent to an interest rate of 6.80%. Even with the conservative estimate on how much of a reduction LFS provides for each additional deposit this return blows away any return on investment that you could get from a CD.

    Car_man
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  • Car_man,

    I want to thank you for the invaluable service you provide to the community.

    I wanted to know if you knew the fico scores needed for each tier for LFS and associated interest rates/MF.
  • Hello Car_Man,

    Here are the numbers I got from a DFW dealer today.

    MSRP - 37065 + Premium Plus Pckg ($ 2960) + Alloy wheels ($ 495) + Rain sensing Wipers & headlamp washers ($ 665)
    Total = $ 41, 185

    36 Month Lease -- Down Paymnt $ 975, Monthly Pymnt $ 750, Residual Value = $ 23,065.

    48 Month Lease -- Down Paymnt $ 850, Monthly Pymnt $ 675, Residual Value = $ 18,946.

    The Money Factor that the dealership gave me was .00285

    After the "let me talk to my manager" thing, they came up with the following quote:

    Negotiated Price = $ 39000, Monthly Payment on 48 month lease = $ 625.

    I would like to know what you think of this deal.

    Also, would appreciate your thoughts on the message I posted on the MDX Lease discussion.

    Thanks
  • Car_Man:

    What are the current January MF and Residuals on 36 month/12,000 mile leases from Toyota FS.

    Also, do you have what the "December to Remember" numbers were?

    Thanks. :)
  • Thank you george29. I don't know the exact credit score that is necessary to qualify for Lexus Financial Services' top credit tier (I would guess that it is somewhere in the 730 range or so), but I can tell you that its buy rate lease money factor for consumers who qualify for that tier and lease a 2006 RX 330 is currently .00220.

    Car_man
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  • Hi kaipaji. If you are in an area where there is a decent level of competition, I suspect that you can do better than the deal that you were quoted. I estimate that the price that you were given is at least $2,000 over dealer invoice. See if you can knock them down on the price a little more. Once you arrive at a price that you are satisfied with, make sure that they use Lexus Financial Services' buy rate lease money factor of .00220 to calculate your lease payment. This factor assumes that you qualify for LFS' top credit tier. If you do, then the dealer that you are working with is trying to mark up your money factor to add additional back-end profit to your deal.

    Car_man
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  • Hi soccerpws. If you were to lease a 2006 Lexus RX 330 AWD without the entertainment system 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 .00220 and 57%, respectively assuming that you qualify for its top credit tier. I believe that the "December to Remember" special money factor for this truck was .00225, but I don't remember what its residual values were.

    Car_man
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  • As always, my sincerest thanks.

    The lease on my 2003 RX300 (acquired in the December 20002 DTR) is up at the end of March, so I'm looking to replace it with the RX330.
  • You're very welcome, soccerpws. Let me know if you have any other questions.

    Car_man
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  • Car_man,

    Could you tell me the money factor and residual for this month on a 2006 RX330 AWD w/ Premium Plus (no nav) - 36 months - 12k miles. Do you think it will get better next month as the debut of the RX350 approaches?

    A dealer in my area offered me invoice on a RX with a MSRP of $43358, he claimed invoice was $38486 (does that sound right? The payment he quoted me was $584, I hoping this might get better as the RX350 release date nears. What do you think?

    Thanks.
  • Oh had a few other questions. I am currently leasing a RX300 and just got some papers about the Encore program and how I am preapproved and can waive the security deposit. Does this program provide any further improvement in the money factor or residual. The website claims lower payments, what exactly does this mean.
  • karepkarep Posts: 2
    This is what I am accepting from Ray Catena Lexus in Larchmont NY (MSRP in parentheses):

    2006 RX330 w/o Navigation ($37,770)
    -Premium Plus Package ($2,960)
    -6 disc in-dash CD Auto Changer ($500)
    -18" wheels 235/55 M/S tires ($495)
    -Heated front seat w/rain sense wipers ($160)
    -Transmission cooler, heavy duty alternator/radiator ($160)
    -cargo mat ($92)
    -wheel locks ($66)
    -S&H fee ($695)

    MSRP Sticker $43,403.
    Capitalized cost $39,000

    Am leasing it. Was offered two options:

    1. Via Hahn Financial :
    -$500/mo. Bank fee $842.70 + FMP $500 + $477 TTR for total of $1,819.70 at time of signing. Vehicle disposition fee of $450.00 at end of lease. 30 months/10K miles/year
    2. Via Lexus Financial
    -$515/mo. Bank Fee $636 +FMP $515 + TTR $467.50 for total of $1,618.50 at signing. $0 Vehicle disposition fee at EOL36 months/12K miles/year
    Trade in 1999 RX 300 in 'good' condition 81,500 miles =$11,000

    selected option 2 because I live in CT and Hahn does not do leases there because of the vicarious liability law (Lessor gets sued i case of accident caused by Lessee). Did the math, and for me it comes out at $495/mo.

    ONE other note: I bought through the Costco auto program --avoiding the infamous 'Let me talk to my manager' routine

    Ray Catena Lexus is straight-foward and is not into the arrogance and stupid mind games found across the state border at a competing dealership.

    I'm sure if I invested hours and psychic payments I could have saved a few buck/mo--I'm too old for that now.

    My perception is that there are a lot of cars (in the NYC area) and the dealers are getting heavy support from Lexus to clear the decks before the 2007 comes in.

    BTW, I could not see much in compelling new features (would have loved an MP3 player and power adjustable pedals but they are not in the 2007) that would make me wait.

    Hope this helps.
  • My present lease will be over March 12th and I was planning on getting a 2006 RX-330 FWD with premium plus package Premium Plus Package with Additional Options:

    - Two-level heated front seats (includes rain-sensing variable intermittent wipers and headlamp washers)
    - In-dash, single-feed, six-disc CD auto-changer
    - 18-in alloy wheels (235/55VR18 and full-size spare)
    - Towing prep package
    - Cargo mat
    - Wheel locks

    The MSRP with delivery is $42,003.00, so far the best deal in January was around $520 plus tax on a 48 month/15K lease with inceptions of around $1000, but last night the dealer called and told me that Lexus has a new deal which is almost like the "December to Remember deal" and the monthly price dropped to $499, this making me quite suspicious, is there something about to happen to make them want to unload inventory like the 2007's coming out? Any ideas?

    If there is a new deal do you know the particulars for South Florida, like special lease rates, money factors?
  • The deal Malenky first posted looks fantastic, I wish I could get that in South Florida, it's the same car with the same equipment I am looking for, in fact his car had AWD and is only 36 months but with 12k miles per year.

    "Folks, just got a quote on 2006 RX 330 AWD with Prem. Plus package (w/o Navigation) at $495 a month including 6% tax with LFS for 36 months 12K a year. Out of pocket $495 First Month, $600 Bank Fee, $265 NJ Reg. and Plates, about $1350."

    Do you think there is any chance I'll be able to get a deal on a 2006 RX330 FWD with premium plus package with options at a price like his, the best the dealer will do for me is $499 plus tax with about $1300 down as inceptions on a 48 month/15K miles per year.

    In my previous post I thought the inceptions were around $1000 but they are actually in the $1300 range.
  • The deal you posted looks terrible,you can get the dealer down to this on a 2006 RX-330 with premium plus package,

    36 month /15k is around $520+tax with around $900 down

    48 month /15k is around $490 + tax incep. $875 down
  • Hello highfidelity. If you were to lease a 2006 Lexus RX 330 AWD (without the entertainment system) 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 .00220 and 57%, respectively assuming that you qualify for its top credit tier. This lease program is currently scheduled to run through March 31st and I don't expect Lexus to change it before then. It is difficult to say what its April lease program for this model will be like. There definitely is a chance that Lexus will enhance its money factor then, but its residual value will almost certainly fall eating up most of the difference.

    You can look up the exact dealer invoice price for the truck that you are interested in by visiting the following section of this site: Edmunds.com New Vehicle Pricing. Dealer invoice is definitely a good price for a lease on an RX right now.

    Car_man
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  • Hey highfidelity. I believe that Lexus does provide a slight money factor reduction for Encore aka loyal customers, but unfortunately I do not know exactly how much that reduction is.

    Car_man
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  • i think i got a good deal, what do you guys think ?

    in Los Angeles...

    '06 RX330 FWD
    -6 Disc CD in dash
    -18' wheels
    -heated seats
    -Nav w/ bluetooth
    -Prem pus package

    MSRP $44,193
    36 months/15K miles
    $900 drive off
    $535 month tax included.
  • linodis,

    What car dealer?

    Thanks.
  • Glendale. what do you think of the deal i got ?
  • Thanks for all your help Car_man. I finally settled on a lease and wanted to share the details with the forum...

    I ended up leasing a 2006 RX330 AWD (Premium Plus, no nav) for 39 months, 12k miles for $533 w/ tax from Putnam Lexus of Redwood City, CA. I also didn't pay anything out of pocket as I had some positive equity on my previous lease (basically sold them the old lease vehicle for a $1200 profit, 2003 RX300).

    I think I could have made more selling it on my own privately, but, I wasn't sure it was worth the hassle. I was very satisified with my previous vehicle. The overall payments will end up being less than my previous vehicle. I am pretty happy with the deal.
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