2013 and earlier Lexus IS 250 / IS 350 Lease Questions

valuehunter07

greeneyes, so the ORIGINAL MF was .0007 (1.68%)?

That's WAY better than what I'm getting quoted right now, which is .00125 (3%).

Did the MF go up, or is there something else I can do to try to get it lower?

My credit score is 720.

bmhaven

I would appreciate any feedback on the following lease I was quoted today for a 2009 IS250 RWD AT with premium plus package, HID, 18'' wheels with summer tires, iPod integration and wheel locks.

MSRP: $36,506
Selling Price: $33,200
Residual: $18,253 (50% of MSRP)
MF: .00090 (This is the best rate according to Lexus this month)
Term: 36 months/15k miles
Total monthly payment before tax: $461.50
Total out the door with only first months payment and start up fees: $1446.50
Dealer is also throwing in first two scheduled maintenance checkups and Lexus window tints

CarMan@Edmunds

You're welcome, valuehunter07. I am not aware of any resource that provides accurate information on vehicles' current lease program to consumers, but if you tell me what state you are in I should be able to give you an idea of what the IS' lease program is like in your area right now.

Car_man
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newnmpr0ved

those numbers arent good... i got the same exact car... 2009 with hid, nav,, accessory package, 18's... glacier frost mica back in march 2009 for $472/ month AFTER taxes with 1500 down... i know i couldve done slightly better but i really wanted the car right away and the hid package was just hard to find, that and the sales person gave me the least haggle out of the 7 dealerships i visited... .0007 money factor.. 8.25% sales tax at the time... 3 years 15,000... southern california... right now i'm paying $477 a month and some change since sales tax increased...

greeneyespsu

kingpcgeek,

I don't think you know exactly how leasing works. The money factor (MF) on a lease is the interest rate (APR) that you pay per year on the TOTAL price of the vehicle. You pay MF on both the lease price (depreciation) AND the residual value of the vehicle. Feel free to Google this if you still don't believe me or understand it. In my case, I'm paying MF on $32,448 (selling price of my MSRP $37,656 IS250). So no, my return is not 1.5%. It is well over 10% per year. Let me break it down for you so you understand.

My lease price for 3 years (depreciation) is $12866.88 because my residual is $19581.12 (together these equal my $32,448 selling price) -- ignoring tax/etc for simplicity. Which means per year of the lease I pay $4288.96 towards the depreciation. When the MF is applied to the lease it is MF x $32,448 for the first year. For the second year it is MF x ($32,448 - $4288.96). For the third year it is MF x ($32,448 - $4288.96 - $4288.96). You are only leasing for three years of depreciation, but you are RENTING the rest of the car's value and therefore you are paying interest on the WHOLE value of the car, NOT just the depreciation. Therefore, if you have the same MF on a lease as an APR on a purchase, you would pay more interest over the life of the lease than the purchase because you pay more per year towards the purchase than you do per lease (you decrease the principal by more -- i.e. higher payments).

Let's put actual MF values in here and you can see what I'm saying.

The ORIGINAL (pre-MSDs) MF was .0007 (1.68%). Tax aside, if I used the formulas above for calculating my interest I would pay the following (again, I would actually pay slightly more than this because this does not include tax, acquisition fee, etc):
YEAR 1: .0168 x $32448 = $545.13
YEAR 2: .0168 x $28159.04 = $473.07
YEAR 3: .0168 x $23870.08 = $401.02
TOTAL INTEREST OVER LEASE: $1419.22

The MF I got by putting MSDs down was .00006 (.144%). Tax aside these are the formulas:
YEAR 1: .00144 x $32448 = $46.73
YEAR 2: .00144 x $28159.04 = $40.55
YEAR 3: .00144 x $23870.08 = $34.37
TOTAL INTEREST OVER LEASE: $121.65

$1419.22 - $121.65 = $1297.57

$1297.57 (savings) divided by $3825 (MSD) = 33.9% return over the life of the lease.

I think that's a pretty darn good investment, especially considering I pay no taxes on that return since it's really a savings. Why do you think every leasing forum you go into preaches about putting down MSDs?? If you'd rather keep $3825 in the bank now and spend $1297.57 more over the life of your lease, that's your perogative, but it seems pretty counter-productive to me. If you don't have an extra $3000 in your bank account, you really can't afford a Lexus.

greeneyespsu

Thumbs up, kyfdx. I wish I had seen you replied supporting my answer before I took the time to write out all the details in that last post! haha

Oh well, hopefully it'll help some new people coming into the forums who don't quite understand MSD. I know this forum (and a little googling about leasing 101) helped me tremendously when I got my IS and I understand leasing better now (from NOTHING before!) than I ever could have imagined! The sad thing is, I actually understand leasing a little better than some of the people that WORK at Lexus!

toytolex

Hi I was wondering if you got the RWD or AWD? And did u lease ur IS250? Thank you for ur advice!

anjony1

I have a follow up question on MSD's. What happens to the MSD if the car is totalled and the insurance pays what you owe the leasing company.

Do you get all or part of the MSD?

I know that any cap cost reduction is gone in this scenario.

rohitg

@greeneyespsu

Actually you're not saving 1.5% on $37,656, you're saving 1.5% on 48% of 37,656, which is $18,074, or the amount you're financing over 3 years.

kyfdx

When you lease a car, you are financing the full purchase price (or cap cost).. not the depreciation amount.

The average amount financed over the lease term is:
(CAP cost + Residual) / 2

regards,
kyfdx

greeneyespsu

You are incorrect. I am saving 1.5% on $32,448, which is the price the car was sold to me, as I have said time and time again.

My gosh.. please please PLEASE read the thread and do your research before replying. I've already addressed this more than a handful of times. When you lease a car, you pay interest on BOTH the lease amount and the residual. You're driving around in 100% of the car, not 52% of it, so your MF/APR is calculated on the total value of the vehicle (actually, the total price of what the agreed to sell the car to you for.. this is why it's important to negotiate the price of a car you lease, just as you would one that you'd buy). The residual is the residual is the residual. It's ALWAYS calculated off the MSRP so it will NEVER be negotiable. It's always the % of the MSRP. In my case it was $19,581.18. The difference between the residual and the selling price of the car is the main portion in determining your payments.

For the last time, the interest you pay on a lease is based off of the ENTIRE MSRP of the vehicle. If you have the same MF on a lease as you do APR on a purchase you will PAY MORE interest on the lease because the prinicipal is reduced less each year on a lease than a purchase. If you can find a lease anywhere on the planet that you just pay interest on the 48%, please take it without even thinking about it, then come back here and post so the rest of us can get the most amazing deal in the history of the planet -- because it doesn't exist.

If you still need more proof or still don't understand money factors/interest, here are two good sites I found from googling just now.
http://www.leasetips.com/calculating.htm (see STEP 3)
http://www.leaseguide.com/lease08.htm (see Finance Fee)

If you still don't understand how leasing works, you probably should just finance. There's nothing better to a car dealer than being able to prey on a person who doesn't know how a huge financial deal works (that will profit the dealer). If you're still set on leasing, at least read this first.
http://www.edmunds.com/advice/leasing/articles/48365/article.html

bmhaven

Can anyone confirm the June Lexus Financial Services MF's and residuals for the 2009 IS250 AT? This is what I have seen on other posts...

36 months, 15k miles, 50% residual and .00040 MF
48 months, 15k miles, 41% residual and .00060 MF

Add 2% residual for all 12k mile leases. Also any thoughts on what July may bring as we approach the end of the 2009 model year? Thanks!

penone

I'm looking to get a Lexus IS250 and will probably go with a used 2007 model (listed at $25K) but my mother's husband has offered to co sign a lease if I wanted to get a 2009 model.

With my current credit history (only 3 cards showing with a total credit line of $ 1100.00 and a student loan that is from 1989 and has no lates - another $ 2700 more to go before it's all paid out) I don't think I would be able to qualify for a lease on my own - hence why I am looking to buy a used model.

Will having him co sign help at all? Keep in mind that he is currently financing his own car (2008 Honda CRV), is retired, has a nice nest egg from selling their house a couple of years ago and scores are in the high 700's.

Thanks for any input.

-P.

kingpcgeek

That is a question better left for the dealer. I doubt anyone here will have the answer for you.

penone

thanks for the input.

kyfdx

Try posting your question here:

Credit Scores and Vehicle Financing

Some of our dealer members may be able to answer your question, or at least have some insight.

regards,
kyfdx
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shepali

Has anybody seen any lease rates yet?

I got the following, and am wondering how it compares:
2009 IS250C, with premium and Navigation
12,000 miles/year
3 years
Amount financed: $53,735 (includes TTL, and only first payment at signing)
MSRP: $51,216
Residual: $29,705 (58%)
Payment: $963.71

Thoughts???

kingpcgeek

That almost $1000 a month for a IS250 is ludicrous. Is adding a convertible and removing 2 doors on an underpowered car really worth $450-$500 a month?

fizzboy7

That is a horrific rate. Do not throw your money away like that. Lexus is making triple $ on that car when they lease it to you and then to the next person after your lease is over. Wait until the car has been out for a year and rates will improve. Or at least wait until December when traditional Lexus incentives kick in. Owning a new model when it first appears is never a good financial decision and in this particular case, it's one of the worst cases of car rape I've heard of.

CarMan@Edmunds

I know that Lexus offers official F-Sport performance parts for the IS, so I thought that I would share this new 20% discount coupon for purchases of any F-Sport accessories that recently came out here. The coupon is valued at up to $2,000 (20% of a $10,000 purchase) and valid only during the month of July. If anyone's interested, I can e-mail them a .pdf or a .jpg file containing the actual coupon.



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CarMan@Edmunds

Hi bmhaven. According to the latest information that I have seen, through July 6th, Lexus Financial Services' buy rate lease money factor and residual value for a 36 month lease of a 2009 IS 250 2WD AT with 15,000 miles per year are .00075 and 50%, respectively for consumers who qualify for its top aka "Tier 1+" credit tier. The numbers for an otherwise identical 48 month lease are .00095 and 41%. This lease program may vary by region. If you tell me what state you are in, I can tell you if these numbers are good in your area.

It is difficult to say what Lexus' July lease program will be like at this point. Please feel free to check back with me next week and I will be happy to fill you in on what I have been able to find out about the new program.

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shepali

Oops! I had a typo in the details (although the title was correct). This is for an IS350C (not a 250), and its actually a 2010 (not a 2009). Having said that....I do think that the payment is quite high.

Carman - do you have any insights into what the lease rates are right now in Texas?

kingpcgeek

I have been following the IS's lease rates for quite some time. I can tell you that the 350's lease rates have always been ridiculously high.

nuclear360

Hi Car man

Were you able to get the lease rates for the IS 250 AWD sedan , 36 months and 10000 miles effective July 6? Thanks.

nuclear360

I was just offered a 2009 IS 250 AWD w/ HID Headlamps and Premium Plus Package, MSRP of $37085 and invoice of $33375 in Obsidian with tan seats for $419/month, 36 months and 10000 miles/year. Selling price of car is $33775. Taxes, 1st payment, bank fee, and motor vehicle fees up front. Any comments on the deal? Thanks

wculbert1

I actually got a decent rate on my '06 350. The original residual then was 57% on a 12K lease, so I paid $599/month for a $44.8K car, nothing down. Today, even in this economy, the best I can find on a similarly equipped car is $699/month. I extended my lease on a month to month basis to see what the '10 residuals will be, but I suspect I'll end up switching to a G37 or a TSX 6 Cyl.

megapurple

400 over invoice: sweet deal. I'd pull the trigger on that one.

What's the residual & money factor on that lease? Did you put any money down towards capital reduction? or get any incentive cash from Lexus?

and what state/locality? I'm in the market for a IS250 and the more price info the better when haggling with the stealerships.

nuclear360

Residual is 53%
M/F is .00050
No cap reduction but New York taxes, DMV fees, bank fee and first payment up front ( about $2800 )
No incentive cash ( do you know of any available ? )

Dealer just called me again to ask if I decided and I told him not yet. He said that he could go to manager to see if $9/month can be knocked off to make it even $410/month but he could not ask unless I told him that I would take it for that price. I told him that I would decide tomorrow.

bbeternal

410 include tax or not? May I know which dealnership

cad4me

You should be able to get IS 250 AWD AT for less than $410 with zero cap cost reduction; inceptions due at signing; sales and use tax extra. From what I see, a couple of you in NYC metro area. $410 or $419 is a very good deal. But, you can get it lower; a few bucks lower.
E-mail me at edmunds CarSpace if you want to know the dealer...
cad4me@carspace.com

nuclear360

Hi

Did the price you are talking about include HID Headlights , Premium Plus Package, and Wheel Locks? The $410 price included these items. If you know of a dealer on Long Island, NY that can beat it, please let me know. Thanks.

Nuclear360

greeneyespsu

With the 2010 IS's about to hit market (hey, the ISC's ARE already 2010's) and the current economy, I wouldn't take anything less than invoice. I got my IS back in March for siginficantly under invoice, you should definitely be able to do the same now.

tyler70

sorry I dont have any inputs about finance; however, i just want to tell you that lexus is giving very good discounts off 2009 IS 250 as they want to make room for the convertible. you can expect to get up to a couple thousands off the INVOICE, so if 2007 is $25k, I would consider getting the 2009.
good luck.

tyler70

can I ask how much under invoice did you pay for your IS 250? what state are you in ? does anyone know when the IS 250 change their design ?? how do you like your IS so far ? did you get 350 or 250 ? thanks

tyler70

I dont know anything about leasing, but I know if they offer invoice as selling price for an IS 250 now is high. you can expect to get a least 1000 off the invoice very easily now.

jlee8071

Hello, I got a quote for IS 250 with premium pkg (MSRP:34120)

3 yr/30K miles

monthly payment: $365
Sign and Drive: $900

Is this a decent deal? Can I do better?

thanks,
josh

fizzboy7

That sounds pretty good, considering the local offer here in L.A. is 349/month with 3499 down at 10k miles/year. I did 3500 down at 320/mo with 12k miles/year for three years. My car was a grand more expensive though and this was Feb '08. If you are unsure, email several dealers in your area to see what how low they might go. Pitting dealers against each other is a beautiful bargain tool.

jason38

What state are you in ? That sounds like a great deal compared to current offer (in Bay Area, California) for $3499 down and $329/month, 3 yr lease, and 10, 000 miles.

greeneyespsu

It'd be more helpful to us if you gave us the selling price of the car, not the payments. We don't know what state you're in for taxes and if that includes taxes, what your residual and MF are, etc.. so instead of payments, please tell us what the selling price of the car is (before TTL).

greeneyespsu

I don't know exactly how much under invoice it was because Lexus invoice is slightly higher than what Edmunds says it is. The MSRP was $37,656 (IS 250 with premium, navigation, 18") and I got it for $32,448. Invoice was over $33k, but I don't know how much. I'm in CA. The IS will likely change in the 2012 model based on the 6 year pattern, but maybe someone else has a different opinion now that the ISC is out? I love my car. I got the 250 because I have no use for the 350. Less gas mileage, more money (both on gas and higher payments).. plus with traffic in CA, what good will that extra power do me if I have no room to run the car?

greeneyespsu

Is that the deal you got on a base car (I assume so since you compared it do the $329 offer which is a base car)? And is $320 after taxes? I really hope that isn't on a base car, cause if it is your dealer got you big time. $320 x 35 = $11200 + $3500 = $14700 total for your lease (did that include title, reg, and fees?). I got a IS 250 with premium, navi, and 18's (MSRP $37,656) for a little over $411 per month (that's when CA tax was 8.25% in March, but if you live anywhere else your tax is way less anyway). $411 x 35 = $14385 + $795.83 (first mo plus title, reg, fees) = $15180.83.. so I'm paying less than $500 more (possibly less than that or even less than you total if yours didn't include tax or fees) for a car worth thousands more.

fizzboy7

My deal was based on a Premium Package car. At the time, a 2008 model, the PP included heated/cooled seats, wood trim, xenons, and 18" wheels. My sticker was $35.5k and the deal was $750 under invoice ($320/month out the door). The current lease special (SoCal) I've researched includes the Premium Pack (I think), but that no longer includes the 18" rims or xenons (not so premium).
I think I got a very good deal. No other dealer could match it or find me a Glacier Frost Mica.

bvdj84

Is that with $0 down?

greeneyespsu

Premium Package doesn't include the 18" wheels (I think in 2008 the accessories package also wasn't included stock, but I could be wrong). But didn't you say you got your car in February?? I got mine in March and back in February (I was looking then) they had a $3500 dealer rebate on the 2008 models so you shoulda been able to get your car for $3500 to $4000 under invoice which would have been one heck of a steal! I was looking to do that myself since the only real difference between the 08's and 09's is the turn signal on the side mirrors and something else minor.. but there weren't any 2008's (especially with the configuration I wanted) left to be found by the time I got my car in the end of March.

fizzboy7

The 2009 Premiums lost the wheels and headlights. Not sure about the accessory package, but likely lost that too.

$4000 under invoice- no way, not unless it was a salvage, demo, damaged, had some other "catch", was a GM SUV, or built on April 1st.

Other changes for 2009 include new wheels designs, new bumpers, grille, foglights, and taillights. Also new clock, center stack redone, new interior and exterior colors, contrasting stitching on seats, VDIM standard on the 250, can use steering wheel paddles w/o being in "S" mode, and supposedly revised steering and suspension tuning- although no one has ever been able to officially report feeling any changes.

luvthesuninca

Hi Car Man,

Can you tell what the MF and RV are for Los Angeles? I have been interested in an IS250 to lease with 15K miles/year.

Thanks!
-Mimi

CarMan@Edmunds

I was. Here's the information that you're looking for, nuclear360. Lexus Financial Services' July buy rate lease money factor and residual value for a 36 month lease of a 2009 IS 250 AWD with 12,000 miles per year are .00045 and 52%, respectively.

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CarMan@Edmunds

Hi Mimi. According to the latest information that I have seen, Lexus Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2009 IS 250 2WD with 15,000 miles per year are .00040 and 50%, respectively.

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radioative2006

Hi Car Man,

Can you tell what the MF and RV are for Chicago suburbs (NW) ? I have am interested in an IS250 AWD to lease with 12K miles/year.

Thanks!

jsutter10

Go for the 128i coupe lease. I just did it for $3500 down plus a $2000 refundable security deposit (total $5500 due at signing) for $242/mo for 30 months with 12k/year and that's after all taxes, title, licence etc.