Your email isn't public. Mine is now, you can email me. Do you know anything about if I could use my old address for insurance? It's $644 per year less than where I live now.
Edit -- If it makes a difference, I would be paying the full year of insurance up front.. with Wawanesa :confuse:
So I'm taking the plunge today! Getting a smoky gray on black with premium and navi (MSRP $37,656) for $32,048 (not sure the exact amount that is below invoice, but between $1500 and $1900 under, not including holdback, I believe??)
Will be leasing for 36 months at 12k. Payment will be under $400 a month (residual will be between .00006 and .00014 depending on what Lexus financial allows with putting down MSDs). Will post back more details after I get it -- they're dealer trading for it as I type this!!
. . . for all the great information you provide here! I just took delivery of a 2009 IS250 RWD (NoNav). Lease payment is $440/month including sales tax; drive- off was same. MoneyFactor = .0007 & Residual = 53%. MSRP = $34,200 & Cap Cost was $308 over invoice (plus BankFee, DMV, Doc). (I examined every promo lease on every lo-end luxury car; this is a great deal!)
And I had a great experience with Longo Lexus (SoCal). I worked with Internet Sales Manager Nick Pailevanian (818-726-5073). We structured the ENTIRE deal via email; never talked once. Even the credit app, drivers license & ins card... all scanned & sent by email. Then he met me blocks from the Acura dealer where I needed to return my end-of-lease TL. We executed all doc’s on the trunk (old car of course!). Great way to lease a car.
Hi-I'm looking to lease an IS250 but I'm a bit worried because I'm a girl, and I'll be walking onto the lot with a 700 credit score. The deal they have listed at Santa Monica Lexus is 3500 down 350+tax a month 10k miles MSRP 32,400
I see that some have gotten GREAT deals and I've read through many posts on this forum to see if there is any way to negotiate a better deal.
1.) is the listed promo a good deal? 2.) how can I get a better deal
Would be awesome to jump on greeny's 400 a month plan with the navigation. That sounds like an amazing deal. How did u do it?! :surprise:
Hi Car Man, Could you give me April's MF and residual on a IS250 RWD w/ Nav at 10K per year for 36 months? I think this might be the weekend I make the switch to Lexus...
Elisco....the deal they offer is not the best you can do. Study all the posts on this board and learn how to figure out a lease. Mine was #939. Then take the best deal you can find on this board, knock a couple hundred dollars off, and start calling around. But before you call make sure you know exactly what you want and be ready to buy. Also call as close to the end of the month as possible. A weekday is best. Tell them you will come down today if they can do your deal. Tell them exactly what you want and you will buy it if they can do your deal. And tell them what you want to pay with all the details. Dont go to the dealer to negotiate. You will never get your best price negotiating at the dealer unless your willing to walk. I have leased 3 Lexuses, 1 BMW, and 2 Acuras for myself and family within the last two years and have found this method works the best for me. The biggest waste of time is going to the dealer and trying to work out a deal. Dont let them persuade you to come on down to work it out. Have your deal finalized to the penny before you take a step into the dealership.
cpa3's method is excellent. The only thing that I can add is they will also tend to give you a better deal on a car they have in their inventory, specially toward the end of the month. Therefore, use the inventory locator here in Edmunds or on the manufacturer's or dealer's site to see which dealers have the car you want. Call them first. Also, for Lexus (and Toyota, and probably, others); not every option package is available in every region. For example, in eastern PA, you cannot get the Luxury and Premium Packages without also getting the NAV package. Note, rarely, but sometimes the last day of the month might not always be best. Here's why it is usually good: Each dealer has a monthly target (bogey). Let's say it's 60 new cars. If they hit or exceed that target, they get a bonus for EACH car sold. I have no idea how much that bonus but let's say it's $50. If they've reached 59 on the very last day of the month, they will get an extra $3,000 to sell one more car. If they knock off $1,500 to make that deal, they are still $1500 ahead but that's only on car #60. Car #61 only has $50 extra to give away, but it's still something more.
Here's when it is not good: Same scenario as above but with a few days left at the end of the month, they are at 45-50 cars with no good prospects to sell enough cars to meet the bogey. They are not supposed to do this but they might be less aggressive on pricing and suggest that things might get better the following month. That way, they might get you and a few others lined up to buy early the following month while at the same time, the manufacturer might drop the bogey for that month.
I've been told that this does happen but I also been told that no matter where they are for the month, they still try to maximize each month's sales.
Greetings Eric. Here's the information that you're looking for. Lexus Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2009 IS 250 RWD with 10,000 miles per year are .00125 and 53%, respectively. This car's money factor varies a little by region. If you let me know what state you are in, I can confirm that this is the factor that's available in your neck of the woods.
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I live in Rockville, MD, I'd be interested in knowing the April money factors for 12K and 15K mile 36 mo. leases. Still the 53% residual ? Thank you very much.
hi, i have decided to possibly lease the is350, can anyone help? The MSRP according to longo is $42725. I need help figuring what the best deal might be on a 3 year lease and 12K mile/year. Please help. I get a little confuse with the money factor, cap rate, and residual. Can anyone help?
I am not sure what the actual numbers are at this time. I however can tell you that traditionally the 350 is a horrible car to lease. Lexus usually offers little to no lease support on the 350.
2005 G35 Sedan 2007 G35 Sedan 2008 G37 Sedan 2010 G37 Coupe 2012 G37 Sedan 2014 Q50 RWD 2017 Q60 3.0t RWD 2018 QX60 RWD
Pretty much any advertised lease deal you see is a loser since they are teasing you with a low lease rate by making you put a huge amount of cash down. BTW I am sure that is the same offer that every Lexus dealer is offering.
$3539 down, plus registration and doc fees is outrageous. In this deal you are doing a $3200 cap cost reduction. Any leasing expert will tell you do not do a cap cost reduction. The disadvantage of a cap cost reduction is that, should your vehicle get stolen or totaled in an accident, you probably won't get any of the down payment returned to you.
If you are worried about higher payments take the money that you would have put down to cut the payment in a higher interest savings account. If and when you need to make a lower car payment take some of the money out of savings to help with the payment.
On a lease, just like buying really the only thing you can negotiate is the selling price (Not the MSRP). There are other small things, but in the grand scheme of things the selling price is what matters.
2005 G35 Sedan 2007 G35 Sedan 2008 G37 Sedan 2010 G37 Coupe 2012 G37 Sedan 2014 Q50 RWD 2017 Q60 3.0t RWD 2018 QX60 RWD
Thanks! Yeah I put the $0 down payment. However the Acq fee is pretty high: $700 he said it's fixed. I'm trying to get the selling price lower. Any tips on that?
Does anyone have any additional information about this $379 lease deal on the '09 IS 250? I'd be interested to learn the exact configuration (options) being offered at this price. I also wonder what the annual mileage limit is on this deal?
2008 IS 250 AWD black/black MSRP: $35K (pretty base) got a quater inch on the passager side front windshield, but it's been fixed. Offered for $ 27K... How do you think?
I think you'll find those "teaser' leases are different in different regions. Here, in Southeast PA, the "deal" is $429 per month with $1129 down and uses a car with a price of $35,820, which appears to be the base price without ANY options. Since the due at signing for this deal appears to be the Bank Fee plus first month's payment, I get a "lease Factor" of 83 which is very good. However, I think you'll find that if you try to add any options, the intro lease rates won't apply and the lease will be fairly ordinary. For example, when I added about $3,500 in options (or 10% of the base price) the lease went up 35% to $580. All of the lease price do not include tax
The problem now with Lexus' leases on the IS250 AWD is while the money factor is usually pretty good, the residual is a disappointing 50%. However, a low residual coupled with a very low money factor can be advantageous if you plan to buy it at the end of the lease.
I think if you investigate your $379 lease, you'll find comparable results.
Hi! I'm new at this so hope I'm doing it right. I'm assuming a 2008 IS 250. Its fully loaded, everything possible. For $450 a month. 3 years left (Originally a 4 year lease) with 1100 miles a month left. Is this a good deal. Its Tier 1 Credit. I'm just trying to save myself a downpayment by assuming the lease rather than getting a new one. Any comments, or questions I should ask before I proceed? Thanks!
The car is on a 48-month lease and has about 36-months remaining. You want to assume the lease payments of $450 per month and won't have to pay anything down, correct?
How many miles are on it now and what is the annual mileage limit in the lease agreement (usually 10k, 12k or 15k per year)?
Also, what is the residual value at the end of the lease (stated in the lease agreement)? And do you know what the money factor (aka- Interest Rate) is?
You NEED to know all of those things to evaluate whether it's a good deal or not!
Here you go, hockeymom1712. Lexus Financial Services' April buy rate lease money factor and residual value for a 36 month lease of a 2009 IS 250 RWD with an automatic transmission and 15,000 miles per year in your area are .00125 and 50%, respectively. The residual value for a lease with only 12,000 miles per year is 2% higher.
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Hi ach8888. It sounds like you are new to leasing. If so, you really 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. Understanding how leasing works is the best way to avoid getting ripped off when you get your new vehicle.
I would be happy to work up a sample lease payment on the IS that you are interested in for you if you let me know what its approximate selling price is.
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Hey Folks, Many thanks for all the info on the site. Negotiating with Park Place Lexus here in Dallas. Looking at at 2009 IS 250 with Premium Pkg (SL Z1) for $1,000 down and $439 per month all in. I think this is a pretty good deal, but wanted to confirm before I went down and picked it up. Thanks for all the great info!
First I want to say thank you to everyone posting here! As I've been reading this forum since yesterday, I've really been learning a lot.
I am new to the whole "leasing" thing, but am now considering it. Reason being is that my Pontiac Grand Prix needs transmission work, at only 100,000 miles. So what I'd like to do is trade it in.
Which brings me to my question - can any of you give me feedback on what I might expect, as to a trade in?
The bluebook trade-in value of my Grand Prix is $2,550. The car probably needs about $1500-$2000 worth of transmission work.
I'm hoping that they will offer me $2,000 for the car, since they can probably repair the car, or get it repaired, a lot cheaper, with all of their resources.
In addition to this, I have a payoff of about $6000 left on my Grand Prix. I have NO idea how this will affect the lease deal I might get.
I mean, of course I want to add this amount to the lease, and I wouldn't mind paying a few thousand of it up front, but just wondering if any of you might have some advice or feedback, or might just tell me what to expect.
Thanks very much
Oh yeah, and "greeneyes", may I ask what the name of your salesperson is? You can PM me if you'd rather. I work in Santa Monica, and that's the dealer I'd like to deal with, and it sounds like you got the maximum deal that could be hoped for so far.
I actually got my IS250 through Vista Lexus in Woodland Hills. I would have gone with Santa Monica, but they didn't have the color I wanted and would only deal on what they had in stock. Also, they couldn't seem to make the number match the quote I had been given the first time. Vista dealer traded for my car from Oxnard. I didn't get the car for the price I thought, but it was still a good deal. I probably could have gotten another couple hundred off (maybe) or free maintenance or something had I kept pushing, but I was so exhausted by that point, my sister was in town, my other car had died (and I towed it across the street where they couldn't see and I drove it over -- so how would I have actually left or pretended to leave and see if they went lower?).. I think I had pushed my limits and I'm pretty happy. Below is what I paid..
MSRP $37,656 (IS250 RWD, Nav, Prem, 18" summers) Selling price $32,448 (under invoice, with no rebates/incentives at the time) 36mo/12k (53% residual) MF lowered to .0006 (.114%) with 9 MSD (now I wonder, could I have made it .0000 with 10??) Down $4680 (I think) -- $3825 of that was the MSD -- no cap reduction. Got $1000 from trade -- '98 Chevy Cavalier with 122k+, fair condition (I thought this was fair considering it had scratches, some rust underneath, broken A/C, cracked head gasket causing overheating, though I'm pretty sure they only knew about the scratches) 35 months at $411.xx, but now increased to $415.xx because of tax increase.
As far as your trade, don't tell them you have one until after you get your selling price on the IS set. Don't tell them what's wrong with it, it'll just give them an excuse to give you less. They aren't going to fix your car, they're going to send it to auction. I didn't owe any money on my trade, but it's my understanding that they will roll up what you owe into your lease (so expect an extra $167 per month from that -- based on $6000 owed) and it wouldn't surprise me if a dealer tries to add other fees in on the back end and attributes them to what you owe on your trade. I would doubt that you'd get $2000 for your trade, maybe shoot for $1500, start at $2000. If you think you can feasibly get higher than that, start at KBB.
Don't forget, I think this month's residual is 2% lower than last month, right? I thought I saw that in another post, but I could be wrong. Also, if you have a Costco card you should go to www.costcoauto.com and submit a request through there. That will take you directly to the SM people I dealt with and also the dealer at Vista I purchased from. The Costco price is $750 over invoice for the IS and you can do better than that, but it's a good starting point (instead of at sticker).. also by going the Costco route, the dealer has to show you the invoice price of the car.
If you have any other question, email me, my email is in my profile.
This question is for anyone, and it's a beginner's question....
I can't get my head around the residual value thing. From what I've read, the higher the residual value, the lower your payment.
This seems like a good thing....
but then, if there's a higher residual, then that also means if you want to buy the car (to keep or resell it), then you're gonna be spending MORE to do that.
So am I correct to assume that a higher residual is good if you only want to lease and not keep?
A lease is based on the selling price of the car (MSRP or negotiated price) minus what the estimated value will be at the end of the lease term (Residual Value). The Residual Value in the lease contract is quite often much lower than what the car will actually be worth at the end of the lease.
For instance, you're leasing a car priced at $35,000. The lease contract is written for 36 months and is based on the Residual Value (or 'Value at Lease End;) is stated at $20,000. The monthly lease payment would be based on the $15,000 difference (plus the finance/money-factor rate and sales tax, etc).
In reality, the car is worth $25,000 at lease end. If you simply turn the car back in to the dealer, he will make $5000 by selling it! OR you can purchase it for the $20,000 listed in the original lease contract and you'll be buying a $25,000 car for $20,000. The majority of leased cars are returned at lease-end, which is what the dealer prefers because he will profit from re-selling/leasing it.
You won't find lease deals with residual values overestimated for a particular model, especially in the current economic climate. If anything, leases are becoming more conservative in the residual value estimation- making the payments higher, but also making the cars a better deal for you to purchase at the end of the lease term!
Cars such as Honda, Acura, Lexus and Toyota have some of the highest residual values in the market. As such, these are the vehicles that should have the lowest lease payments (relative to their competition).
That helps me get off the ground with understanding... I feel like I have a little momentum now.....
but this is what I don't understand so far -
I keep hearing "don't negotiate the monthly rate, negotiate on the price, with a lease"
Ok, even if you negotiate a low price though, they can always add fees on top right?
And the residual that you just explained, that is still a subjective figure right? I mean, the dealer can make any residual figure they want right?
So when setting up a deal, if they want to get me paying a certain amount for the 36 month period, they can just adjust the residual, to get their desired amount.
To me, in my VERY rookie and dummy level of understanding here, it seems like the exact thing that should matter to me most, is how much I'm gonna pay monthly. Unless I buy the car at the end (which I most likely will do... probably to re-sell myself), that is the only thing that makes up the cost for me, other than any upfront money I pay.
Am I understanding correctly so far?
Thanks for helping me out.
I have Friday off, and plan to go out to dealers all day on Friday.
I don't want to rush, but I'd like to make a move as soon as possible, because my Grand Prix has the issue, and I don't want to push it, and my other car is a real bucket.
If I understand the numbers, I can understand and target exactly what kind of deal I want, and then I'll be sitting pretty.
Dealers CANNOT set their own residuals. They are set by the leasing company, which almost all cases will be the manufacturers finance department.
They can raise the money factor to make a little more profit, but if you ask they need to tell you so. I would not hit the lots without first laying the groundwork by negotiating with the dealers via email.
Here is a sample email I used when I last went shopping:
I am looking for a G35 Sedan with premium package in platinum graphite and black interior.
If you could please provide all of the following information it would be greatly appreciated. Please do not respond with a give me a call so we discuss this email, nor an email with a monthly payment only.
MSRP Selling price Dealer doc fees Dealer Add ons Residual for 36 months Money factor for 36 months Registration/Plates/Misc Govt Fees Payment with only first months payment at drive off
My last three cars have been totally negotiated via email. All I did was go in to sign the paperwork.
Visit a site like Lease Guide and learn exactly how a lease is calculated, and the reasons why you may or may not want to lease before you hit the lots and the sharks.
2005 G35 Sedan 2007 G35 Sedan 2008 G37 Sedan 2010 G37 Coupe 2012 G37 Sedan 2014 Q50 RWD 2017 Q60 3.0t RWD 2018 QX60 RWD
MSRP $37,656 (IS250 RWD, Nav, Prem, 18" summers) Selling price $32,448 (under invoice, with no rebates/incentives at the time) 36mo/12k (53% residual) MF lowered to .0006 (.114%) with 9 MSD (now I wonder, could I have made it .0000 with 10??) Down $4680 (I think) -- $3825 of that was the MSD -- no cap reduction. Got $1000 from trade -- '98 Chevy Cavalier with 122k+, fair condition (I thought this was fair considering it had scratches, some rust underneath, broken A/C, cracked head gasket causing overheating, though I'm pretty sure they only knew about the scratches) 35 months at $411.xx, but now increased to $415.xx because of tax increase. ==================================================
The net cap here is $31,593 ($32,448 minus the down amount that wasn't part of the MSD).
The residual is $19,581
So the Depreciation fee is $333.66 ($31,593 - $19,581/36 months)
(Net Cap - Residual / term)
The Finance fee is $30.70 ($31,593 + $19,581 x .0006)
(Net Cap + Residual x Money Factor)
Adding these two together we get $364.36 for a monthly payment (without taxes), yet green's quoted price was $411 (without taxes).
valuehunter, I think your math is off. My net cap is $32,448. I did not pay anything towards a cap cost reduction. The only payment I made other than my MSD was my first month payment plus title/registration and doc fees. I also rolled up the $700 aquisition fee into the monthly payments. Also, my per month was $411 and some change WITH tax at 8.25%.
With my numbers on JUST the car, the depreciation is $357.41 ($32,448 - $19581.12/36 months) multiplied by 1.0825 sales tax = $386.90 per month. Add in acquisition fee of $700 = $406.34. Plus interest and any other little fees I'm missing would probably equal the $411.xx per month.
Also, my residual was 52%.. I was wrong in my previous post. I thought it was 53% last month on 12k/36 but the $19581.12 is 52% of the MSRP ($37,656).
It sort of money down. Its called multiple security deposits (MSD). For x amount of deposits (= to your payment) they will reduce the money factor by y. If all is good at the time of return you get all of the deposit back.
In the case you stated it doesn't make any sense to me to do it. Without MSD interest rate was 3%, after MSDs it was 1.44%. That is a difference of 1.56%, but they hold onto your $3200 for three years. I can get a better rate putting the $3200 in a ING savings account.
2005 G35 Sedan 2007 G35 Sedan 2008 G37 Sedan 2010 G37 Coupe 2012 G37 Sedan 2014 Q50 RWD 2017 Q60 3.0t RWD 2018 QX60 RWD
This is NOT a good deal. Sorry I didn't see your message til now or I would have responded before. I got a 2009 IS 250 RWD with premium, navigation and 18" for almost $25 less than that per month, including tax (9.25% in CA). Granted, I did put down 9 MSDs to lower the interest rate (no cap cost reduction -- plus I rolled up my acquisition fee), but for that price per month you should at least have the navi and 18" wheels too!
Um, how do you figure that I'm lending that money at a 1.5% interest rate? Because the MF (APR) is reduced by 1.5%?? That reduces the percent of what I owe on a $37,656 car by 1.5% interest, not 1.5% of $3825. It's more like almost 15% of $3825 (per year!), so I don't see how that's not a good deal. Plus, unlike interest I'd earn at a bank, I don't have to pay taxes on this "return".
That reduces the percent of what I owe on a $37,656 car by 1.5% interest You are incorrect, its 1.5% (on an annual basis) of the amount financed, not the selling price.
Personally I would rather be in control of my extra $3825, free to put it into anything I want instead of having an auto finance company lock it up for 3 years with very little return.
2005 G35 Sedan 2007 G35 Sedan 2008 G37 Sedan 2010 G37 Coupe 2012 G37 Sedan 2014 Q50 RWD 2017 Q60 3.0t RWD 2018 QX60 RWD
Comments
Edit -- If it makes a difference, I would be paying the full year of insurance up front.. with Wawanesa :confuse:
Will be leasing for 36 months at 12k. Payment will be under $400 a month (residual will be between .00006 and .00014 depending on what Lexus financial allows with putting down MSDs). Will post back more details after I get it -- they're dealer trading for it as I type this!!
And I had a great experience with Longo Lexus (SoCal). I worked with Internet Sales Manager Nick Pailevanian (818-726-5073). We structured the ENTIRE deal via email; never talked once. Even the credit app, drivers license & ins card... all scanned & sent by email. Then he met me blocks from the Acura dealer where I needed to return my end-of-lease TL. We executed all doc’s on the trunk (old car of course!). Great way to lease a car.
With gratitude,
Integritas
Msrp: 38455
Cap cost: 33500
3 yrs 15k
.0007 money factor 1500 down residual 50%
470/mo including tax
good or no good ? Lots of dealers won't even touch that price so I'm assuming its good... just doesn't seem good enough compared to others
The deal they have listed at Santa Monica Lexus is
3500 down
350+tax a month
10k miles
MSRP 32,400
I see that some have gotten GREAT deals and I've read through many posts on this forum to see if there is any way to negotiate a better deal.
1.) is the listed promo a good deal?
2.) how can I get a better deal
Would be awesome to jump on greeny's 400 a month plan with the navigation. That sounds like an amazing deal. How did u do it?! :surprise:
Could you give me April's MF and residual on a IS250 RWD w/ Nav at 10K per year for 36 months? I think this might be the weekend I make the switch to Lexus...
Thanks!
Eric
Note, rarely, but sometimes the last day of the month might not always be best. Here's why it is usually good: Each dealer has a monthly target (bogey). Let's say it's 60 new cars. If they hit or exceed that target, they get a bonus for EACH car sold. I have no idea how much that bonus but let's say it's $50. If they've reached 59 on the very last day of the month, they will get an extra $3,000 to sell one more car. If they knock off $1,500 to make that deal, they are still $1500 ahead but that's only on car #60. Car #61 only has $50 extra to give away, but it's still something more.
Here's when it is not good: Same scenario as above but with a few days left at the end of the month, they are at 45-50 cars with no good prospects to sell enough cars to meet the bogey. They are not supposed to do this but they might be less aggressive on pricing and suggest that things might get better the following month. That way, they might get you and a few others lined up to buy early the following month while at the same time, the manufacturer might drop the bogey for that month.
I've been told that this does happen but I also been told that no matter where they are for the month, they still try to maximize each month's sales.
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2005 G35 Sedan2007 G35 Sedan
2008 G37 Sedan
2010 G37 Coupe
2012 G37 Sedan
2014 Q50 RWD
2017 Q60 3.0t RWD
2018 QX60 RWD
http://www.metrolexus.com/AboutThisSite
How do you think of it? Is it a good deal? Beside I'd negotiate the MSRP price, what else can I negotiate on? Thanks!!
http://www.metrolexus.com/AboutThisSite
Do you think it's a good deal? What else can I negotiate beside the MSRP price? Thanks!!
$3539 down, plus registration and doc fees is outrageous. In this deal you are doing a $3200 cap cost reduction. Any leasing expert will tell you do not do a cap cost reduction. The disadvantage of a cap cost reduction is that, should your vehicle get stolen or totaled in an accident, you probably won't get any of the down payment returned to you.
If you are worried about higher payments take the money that you would have put down to cut the payment in a higher interest savings account. If and when you need to make a lower car payment take some of the money out of savings to help with the payment.
On a lease, just like buying really the only thing you can negotiate is the selling price (Not the MSRP). There are other small things, but in the grand scheme of things the selling price is what matters.
2005 G35 Sedan2007 G35 Sedan
2008 G37 Sedan
2010 G37 Coupe
2012 G37 Sedan
2014 Q50 RWD
2017 Q60 3.0t RWD
2018 QX60 RWD
The problem now with Lexus' leases on the IS250 AWD is while the money factor is usually pretty good, the residual is a disappointing 50%. However, a low residual coupled with a very low money factor can be advantageous if you plan to buy it at the end of the lease.
I think if you investigate your $379 lease, you'll find comparable results.
The car is on a 48-month lease and has about 36-months remaining. You want to assume the lease payments of $450 per month and won't have to pay anything down, correct?
How many miles are on it now and what is the annual mileage limit in the lease agreement (usually 10k, 12k or 15k per year)?
Also, what is the residual value at the end of the lease (stated in the lease agreement)? And do you know what the money factor (aka- Interest Rate) is?
You NEED to know all of those things to evaluate whether it's a good deal or not!
Car_man
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Car_man
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I would be happy to work up a sample lease payment on the IS that you are interested in for you if you let me know what its approximate selling price is.
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Many thanks for all the info on the site. Negotiating with Park Place Lexus here in Dallas. Looking at at 2009 IS 250 with Premium Pkg (SL Z1) for $1,000 down and $439 per month all in. I think this is a pretty good deal, but wanted to confirm before I
First I want to say thank you to everyone posting here! As I've been reading this forum since yesterday, I've really been learning a lot.
I am new to the whole "leasing" thing, but am now considering it. Reason being is that my Pontiac Grand Prix needs transmission work, at only 100,000 miles. So what I'd like to do is trade it in.
Which brings me to my question - can any of you give me feedback on what I might expect, as to a trade in?
The bluebook trade-in value of my Grand Prix is $2,550. The car probably needs about $1500-$2000 worth of transmission work.
I'm hoping that they will offer me $2,000 for the car, since they can probably repair the car, or get it repaired, a lot cheaper, with all of their resources.
In addition to this, I have a payoff of about $6000 left on my Grand Prix. I have NO idea how this will affect the lease deal I might get.
I mean, of course I want to add this amount to the lease, and I wouldn't mind paying a few thousand of it up front, but just wondering if any of you might have some advice or feedback, or might just tell me what to expect.
Thanks very much
Oh yeah, and "greeneyes", may I ask what the name of your salesperson is? You can PM me if you'd rather. I work in Santa Monica, and that's the dealer I'd like to deal with, and it sounds like you got the maximum deal that could be hoped for so far.
I actually got my IS250 through Vista Lexus in Woodland Hills. I would have gone with Santa Monica, but they didn't have the color I wanted and would only deal on what they had in stock. Also, they couldn't seem to make the number match the quote I had been given the first time. Vista dealer traded for my car from Oxnard. I didn't get the car for the price I thought, but it was still a good deal. I probably could have gotten another couple hundred off (maybe) or free maintenance or something had I kept pushing, but I was so exhausted by that point, my sister was in town, my other car had died (and I towed it across the street where they couldn't see and I drove it over -- so how would I have actually left or pretended to leave and see if they went lower?).. I think I had pushed my limits and I'm pretty happy. Below is what I paid..
MSRP $37,656 (IS250 RWD, Nav, Prem, 18" summers)
Selling price $32,448 (under invoice, with no rebates/incentives at the time)
36mo/12k (53% residual)
MF lowered to .0006 (.114%) with 9 MSD (now I wonder, could I have made it .0000 with 10??)
Down $4680 (I think) -- $3825 of that was the MSD -- no cap reduction.
Got $1000 from trade -- '98 Chevy Cavalier with 122k+, fair condition (I thought this was fair considering it had scratches, some rust underneath, broken A/C, cracked head gasket causing overheating, though I'm pretty sure they only knew about the scratches)
35 months at $411.xx, but now increased to $415.xx because of tax increase.
As far as your trade, don't tell them you have one until after you get your selling price on the IS set. Don't tell them what's wrong with it, it'll just give them an excuse to give you less. They aren't going to fix your car, they're going to send it to auction. I didn't owe any money on my trade, but it's my understanding that they will roll up what you owe into your lease (so expect an extra $167 per month from that -- based on $6000 owed) and it wouldn't surprise me if a dealer tries to add other fees in on the back end and attributes them to what you owe on your trade. I would doubt that you'd get $2000 for your trade, maybe shoot for $1500, start at $2000. If you think you can feasibly get higher than that, start at KBB.
Don't forget, I think this month's residual is 2% lower than last month, right? I thought I saw that in another post, but I could be wrong. Also, if you have a Costco card you should go to www.costcoauto.com and submit a request through there. That will take you directly to the SM people I dealt with and also the dealer at Vista I purchased from. The Costco price is $750 over invoice for the IS and you can do better than that, but it's a good starting point (instead of at sticker).. also by going the Costco route, the dealer has to show you the invoice price of the car.
If you have any other question, email me, my email is in my profile.
2005 G35 Sedan2007 G35 Sedan
2008 G37 Sedan
2010 G37 Coupe
2012 G37 Sedan
2014 Q50 RWD
2017 Q60 3.0t RWD
2018 QX60 RWD
I can't get my head around the residual value thing. From what I've read, the higher the residual value, the lower your payment.
This seems like a good thing....
but then, if there's a higher residual, then that also means if you want to buy the car (to keep or resell it), then you're gonna be spending MORE to do that.
So am I correct to assume that a higher residual is good if you only want to lease and not keep?
thanks very much
From going through both forums, it seems the better deals for the IS are around $415 a month (12K), while the TSX deals are around $345 (15K).
Also, on the deal listed by Greeneyes, there was around $1500 in upfront fees, and also another $3200 for a deposit.
With the TSX deal, there was no money down.
I'm just trying to gauge the difference in cost, and wondering if I'm understanding and assuming correctly?
thanks
A lease is based on the selling price of the car (MSRP or negotiated price) minus what the estimated value will be at the end of the lease term (Residual Value). The Residual Value in the lease contract is quite often much lower than what the car will actually be worth at the end of the lease.
For instance, you're leasing a car priced at $35,000. The lease contract is written for 36 months and is based on the Residual Value (or 'Value at Lease End;) is stated at $20,000. The monthly lease payment would be based on the $15,000 difference (plus the finance/money-factor rate and sales tax, etc).
In reality, the car is worth $25,000 at lease end. If you simply turn the car back in to the dealer, he will make $5000 by selling it! OR you can purchase it for the $20,000 listed in the original lease contract and you'll be buying a $25,000 car for $20,000. The majority of leased cars are returned at lease-end, which is what the dealer prefers because he will profit from re-selling/leasing it.
You won't find lease deals with residual values overestimated for a particular model, especially in the current economic climate. If anything, leases are becoming more conservative in the residual value estimation- making the payments higher, but also making the cars a better deal for you to purchase at the end of the lease term!
Cars such as Honda, Acura, Lexus and Toyota have some of the highest residual values in the market. As such, these are the vehicles that should have the lowest lease payments (relative to their competition).
but this is what I don't understand so far -
I keep hearing "don't negotiate the monthly rate, negotiate on the price, with a lease"
Ok, even if you negotiate a low price though, they can always add fees on top right?
And the residual that you just explained, that is still a subjective figure right? I mean, the dealer can make any residual figure they want right?
So when setting up a deal, if they want to get me paying a certain amount for the 36 month period, they can just adjust the residual, to get their desired amount.
To me, in my VERY rookie and dummy level of understanding here, it seems like the exact thing that should matter to me most, is how much I'm gonna pay monthly. Unless I buy the car at the end (which I most likely will do... probably to re-sell myself), that is the only thing that makes up the cost for me, other than any upfront money I pay.
Am I understanding correctly so far?
Thanks for helping me out.
I have Friday off, and plan to go out to dealers all day on Friday.
I don't want to rush, but I'd like to make a move as soon as possible, because my Grand Prix has the issue, and I don't want to push it, and my other car is a real bucket.
If I understand the numbers, I can understand and target exactly what kind of deal I want, and then I'll be sitting pretty.
Thanks so much!!!
They can raise the money factor to make a little more profit, but if you ask they need to tell you so. I would not hit the lots without first laying the groundwork by negotiating with the dealers via email.
Here is a sample email I used when I last went shopping:
I am looking for a G35 Sedan with premium package in platinum graphite and black interior.
If you could please provide all of the following information it would be greatly appreciated. Please do not respond with a give me a call so we discuss this email, nor an email with a monthly payment only.
MSRP
Selling price
Dealer doc fees
Dealer Add ons
Residual for 36 months
Money factor for 36 months
Registration/Plates/Misc Govt Fees
Payment with only first months payment at drive off
My last three cars have been totally negotiated via email. All I did was go in to sign the paperwork.
Visit a site like Lease Guide and learn exactly how a lease is calculated, and the reasons why you may or may not want to lease before you hit the lots and the sharks.
2005 G35 Sedan2007 G35 Sedan
2008 G37 Sedan
2010 G37 Coupe
2012 G37 Sedan
2014 Q50 RWD
2017 Q60 3.0t RWD
2018 QX60 RWD
I've learned a lot over the past few days, and it's all starting to sink in, and I'm getting the concept down.
HOWEVER, the monthly payments, still aren't quite adding up, according to my math....
Let me use greeneyes deal for an example....
Here are green's figures:
---------------------------------------------------------------
MSRP $37,656 (IS250 RWD, Nav, Prem, 18" summers)
Selling price $32,448 (under invoice, with no rebates/incentives at the time)
36mo/12k (53% residual)
MF lowered to .0006 (.114%) with 9 MSD (now I wonder, could I have made it .0000 with 10??)
Down $4680 (I think) -- $3825 of that was the MSD -- no cap reduction.
Got $1000 from trade -- '98 Chevy Cavalier with 122k+, fair condition (I thought this was fair considering it had scratches, some rust underneath, broken A/C, cracked head gasket causing overheating, though I'm pretty sure they only knew about the scratches)
35 months at $411.xx, but now increased to $415.xx because of tax increase.
==================================================
The net cap here is $31,593 ($32,448 minus the down amount that wasn't part of the MSD).
The residual is $19,581
So the Depreciation fee is $333.66 ($31,593 - $19,581/36 months)
(Net Cap - Residual / term)
The Finance fee is $30.70 ($31,593 + $19,581 x .0006)
(Net Cap + Residual x Money Factor)
Adding these two together we get $364.36 for a monthly payment (without taxes), yet green's quoted price was $411 (without taxes).
Did green get ripped off???
With my numbers on JUST the car, the depreciation is $357.41 ($32,448 - $19581.12/36 months) multiplied by 1.0825 sales tax = $386.90 per month. Add in acquisition fee of $700 = $406.34. Plus interest and any other little fees I'm missing would probably equal the $411.xx per month.
Also, my residual was 52%.. I was wrong in my previous post. I thought it was 53% last month on 12k/36 but the $19581.12 is 52% of the MSRP ($37,656).
Just wanted to say thanks for sharing this format/letter.
I think it's pretty straight to the point and well done.
I also think I'll use it, or something very similar.
Thanks so much.
Thanks (again
This really does help a ton.
I'm guessing this was no money down?
I saw greeneyes got a money factor of .0006, but of course she put down $3200.
If anyone can help me with further info on this figure, I'd really appreciate it.
I'm trying to calculate my potential lease.
thank you very much
In the case you stated it doesn't make any sense to me to do it. Without MSD interest rate was 3%, after MSDs it was 1.44%. That is a difference of 1.56%, but they hold onto your $3200 for three years. I can get a better rate putting the $3200 in a ING savings account.
2005 G35 Sedan2007 G35 Sedan
2008 G37 Sedan
2010 G37 Coupe
2012 G37 Sedan
2014 Q50 RWD
2017 Q60 3.0t RWD
2018 QX60 RWD
This is NOT a good deal. Sorry I didn't see your message til now or I would have responded before. I got a 2009 IS 250 RWD with premium, navigation and 18" for almost $25 less than that per month, including tax (9.25% in CA). Granted, I did put down 9 MSDs to lower the interest rate (no cap cost reduction -- plus I rolled up my acquisition fee), but for that price per month you should at least have the navi and 18" wheels too!
2005 G35 Sedan2007 G35 Sedan
2008 G37 Sedan
2010 G37 Coupe
2012 G37 Sedan
2014 Q50 RWD
2017 Q60 3.0t RWD
2018 QX60 RWD
You are incorrect, its 1.5% (on an annual basis) of the amount financed, not the selling price.
Personally I would rather be in control of my extra $3825, free to put it into anything I want instead of having an auto finance company lock it up for 3 years with very little return.
2005 G35 Sedan2007 G35 Sedan
2008 G37 Sedan
2010 G37 Coupe
2012 G37 Sedan
2014 Q50 RWD
2017 Q60 3.0t RWD
2018 QX60 RWD
You should look into it. It's a good deal...
regards,
kyfdx
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