Did you recently take on (or consider) a loan of 84 months or longer on a car purchase?
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Assuming you were leasing a car with a $600 payment, making an extra 9 security deposits ($5400), would net you a payment reduction of around $55 per month (rough estimate..will vary depending on your lease paramaters)..
An annual return of about 12% on your additional funds.
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Hey more power to you if your method is repeatable. But you didn't say if you'd bought other cars at such low price or you just had this one great success.
If you can break down dealers that well, maybe people should hire you to negotiate car deals for them. Some people might be willing to pay $250 or so if you can get them a $500 over invoice price (with no bogus fees added in by the dealer) on hot cars.
====END====
tempting---but, no. it wouldn't be worth my time. sure, i could do this on my spare time. however, i would much rather spend my time with family (and/or golf!) than making a few hundred bucks for i am busy enough as it is.
in a way you could make a statement that that is what these sales people are 'supposedly' for (to negotiate for you) and unfortunately they side with the dealership rather than the consumers. they make their commission from the sale, therefore, they will do all they can to get as much out of you for it is for their own benefit. if i were to ask for a 'fee' for my services, then it would be tantamount to paying not just one, but two commission fees. the sales guy and myself. i just don't believe in that.
i would much rather share my knowledge and have people learn from my (our) experience(s) and strategy for it truly is more fulfilling that way. if i could find enough spare cycles within my busy schedule, i just might write a book and share my knowledge that way.
--revangel
P.S.
i will make sure that you get a free copy.
I also got a price of aproxiametly 1300 over invoice for an IS 350.
Considering the time of year are these good numbers?
I would think the 350 would be closer to invoice for September.
bottomline: i believe that the IS250 figure is a good deal (this is the same deal we got a couple of weeks ago). however, since they are giving you this quote, and i am assuming this is by phone or 'internet/email', i would guess that you could go down a bit more.
best of luck!
At lease end, the extra security deposits won't be treated any differently.
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If you put up $5400 in additional deposits, and your payment goes down by $55/mo., then that is an equivalent annual return of 12.2%.. (tax free, I might add).
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Checked the website out and it looks like they're only going to feature new models: new LS, new GS hybrid, new ES350.
Or at least, those are the only ones listed. Any chance of IS and the competition (BMW, Audi, etc.) being available as well?
the Internet for the same car and package (but blue) and now have a great
basis of comparison. I'm in S.Calif too so there are a lot of dealers to contact.
Enjoy your new car and drive safely cuz no one else around here does !
Chris
I haven't had any luck with BMW dealers either. It seems majority of the BMW and Lexus dealers in the Bay area are really stuck in there chairs enjoying the ride.
I am in the process of leasing a 2006 IS 350. I placed a $1000 deposit on the car on Sunday and signed a lease agreement. It is loaded with navigation and 18" wheels and the sticker comes up to about $41200. I negotiated the price down to $36900 and they offered a money factor of 0.00275. Is that an acceptable rate? The monthly payment comes up to $557/month for 36 months and 15k/year with a $3500 down. I appreciate the help.
Have you made yourself a spreadsheet on Excel yet? If not, you should, so you can see what changing the MF to their "buy rate" (.00265) would do. Also, you could then play around with changing the down payment to see what that would do.
I think it's best to always figure it out first with no down payment, to see what the pure lease deal looks like, then you can see if cap cost reductions (down payments) are something you want to do. Many people think they have to make them, but they're just a ruse to get the payment lower so the dealer can advertise the low payment.
Pop quiz.
Would you rather lease an apartment for a year for $1,200 a month, OR put down an upfront payment of $1,200 and then pay $1,100 a month for 12 months? Do the math and compare the total rent over 12 months.
Now what would happen if the apartment building burned down after you'd been there two months? Do the math again, and tell me what your average rent would be for the two months you lived there under both scenarios.
Post your answers, and tell us which way is better, and why. Now tell us what you think about putting $3,500 down to reduce your payment.
Last question. Tell us what happens if your car burns up (or down. I could never figure out why the difference), just like the apt. bldg.?
Remember, there are four basic numbers that go into a lease payment calculation, and the dealer can control two of them - the selling price and the money factor. He has no control over the MSRP or the residual value. So if you can play two dealers against one another and get a good selling price from one and a no markup money factor from another, you can usually get them to match each other. Now you've just put the best of both worlds together and can pick your dealer based on other, more subjective factors.
Hope that helps! Good luck!
They shouldn't care if you put $3,500 down or not. In fact, if you don't, then you finance more of the car, which will increase your payment, which will increase slightly the amount of "profit" they will make on that portion of the deal. The question is whether or not you are more comfortable with the larger payment you'll face without $3,500 down.
You can drive yourself nuts trying to grind these numbers into a fine powder, just to save a $1.98 per month, so call the dealer, tell them you're now thinking you might not want to put anything down, and have him recalc the numbers on that basis. Weigh the two, and decide from there. I see no reason they shouldn't agree to alter your down payment, unless you have credit or income issues. Just don't drive the car off the lot until you sort it out.
You're off the hook on the quiz. It was the concept I wanted you to think through.
I am curious about the inclusion of the destination charge -is there any mark up on this or does this mean that the guy only nets $700 over invoice - $590 destination, or $110? I also know that there are some factory to dealer incentives of 2-4% - so that is another $680 to $1360 in additional profit we never really know about. I have got to believe that after the labor day sales weekend (which went well) that most of these high volume dealer will be getting the factory incentives of 2-4%. If that is true we should be buying at invoice (including the destination charges). To me, $680 - $1360 profit off an internet buyer (no hassle) sounds like a fair profit. What do you guys/gals think?
Also I am considering the black exterior. After buying your color and seeing the others on the road, what are the coolest looking colors???
Looks like Acura TL time at $250.00 below cost, which includes mats and a 2.9%.
However, I can tell you that Lexus' standard acquisition fee is $600, they do not require a security deposit, their standard doc fee is $45, and they charge the state mandated $8.75 tire fee. If a dealer is not charging these fees, then they are marking them up. I'd let them know that you know that, and it's going to result in you going to another dealer. The only other money due at signing is the DMV registration fee, which is set by the state and is based on the value of the car.
You should should be posting these questions on the Lease Questions board instead of here. More people will see your questions about leases there than they will here. You really have to use both boards to get price and lease info.
Use this board to find out what dealer will give you the best price. Once you get that, you know the money factor should be .00265. You can get the residual percentage for your months/miles from someone on the Lease Questions board, and with those numbers you can easily calc your payment yourself. Do you know how to do that?
Personally I think the car looks so good as it is that any color really just enhances it. But I bought the black with black interior.
I have a spreadsheet that calculates all the lease breakdowns, including depreciation for tax purposes. So, i'm fully aware of lease calculations. However, I want to have in writing not just sale price, but money factor/financing in writing so that I don't have to waste my time hassling over .00285 or .00265. In my e-mails, I specifically asked for sale price and the money factor, but dealers are reluctant to give you a money factor information, instead just a monthly payment, so that they can hide their profits. So unless dealers are willing to reveal their financing rate, I will not waste valuable time for both.
One dealer after asking did provide me with 600(acqusition), tire disposal, and doc fee. Good, but after couple of e-mails the sales person would not acknowledge .00265, instead .00300. I may just wait till November and trade-in my 02 QX4 for a G35 or a TL with 2.9%.
Thanks for your assistance.
Highly recommend swapping out OE tires for Michelin Pilot Sport A/S. Cost an additional $200. Quieter, handles as well and tracks better on rough/grooved road. Tread rating is 400 versus 240 for OE tires. Probably get 30-33K miles from the tires.
Treadwear ratings vary from maufacturer to manufacturer
My Poiliot Sports wore out in 18K and I too have rear wheel drive
Good Luck getting more!
I am wondering whether $34,222 for a red 250 (RWD) with premium package (no other optiosn) in Oregon is reasonable?
Thanks!
IS250AWD06 MSRP39,924 Cap 34,900 2500down
Residual 18,365
4yr/15K 510mth
Does the $510/mth include tax? If not, what is the tax rate where you live? The 7.75% tax rate which applies in much of CA will add $40/mth if $510 is pretax.
Does the cap of $34,900 include the standard $600 Lexus acquisition fee? If not you have to add $600 to get the number used in the calc.
Let us know and we can back into the MF they used to calculate the payment.
$2,500 down divided by 48 takes $52 a month off your payment, so think about that, too.
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I have a deal worked out with a Lexus dealer in North Carolina for the following:
2007 IS-350
LT PKG
VN PKG
PT PKG
Z1 PKG
LR PKG
$900.00 over invoice for a "Turn Key Price of $42,191"
Should I close the deal?
Sounds a little high to me. Not including tax and license I'd offer $30,025 including destination charge. If the car has 18" wheels and Preferred Pkg. (which I thought were pretty standard) then I'd offer $30,750 including destination charge. I don't know where you're located but these are the prices I got when I was buying mine. Hope that helps.
Chris
luxery plus pkg.(with 18" wheels)
nv system
hid headlights
rear spoiler
preferred accessory pkg. (mats etc.)
total purchase price was 37,450 not inc. tax and title!
great car!!
1- Leather-trimmed interior
2- Power tilt-and-telescopic steering column
3- Lexus Memory System to control power driver's and front passenger seats (except lumbar), outside mirrors and steering wheel
4- Heated and ventilated front seats
5- Illuminated doorsill scuff plates
6- Power rear-window sunshade
7- Rain-sensing intermittent windshield wipers with mist cycle
8- Electrochromic (auto-dimming) outside mirrors with auto tilt-down in reverse
9- Bi-xenon High-Intensity Discharge (HID) headlamps with
Adaptive Front Lighting System (AFS)
10-18 x 8.0-in alloy wheels with 225/40YR18 tires front
11-18 x 8.5-in alloy wheels with 255/40YR18 tires rear
12-Lexus voice-activated DVD Navigation System with backup camera and Bluetooth® technology
13-Mark Levinson 14-speaker, 300-watt Premium Surround Sound Audio System with 7.1 architecture and in-dash, single feed, six-disc DVD/CD auto-changer featuring DVD-audio and DVD-video playback.
Lexus websit is too confusing, I might have to go to dealer. Thank
I basically got a Quote From a Lexus Dealership in NYC.
2007 AWD is250, With Nav, SPoiler and Wheel locks, HID's, All weather Mats. IT's a Black on Black, For $36,000. Without tax and title and all the other good stuff. What you guys think? i went to a few other dealerships around the area, everyone is asking for 38+++ i don't know if it's the area i'm in, that i can't get a good deal like you guys or what?
sticker was 38,067, paid $35,000 before tax and all that other good stuff.
we shopped around a few dealers and that was the best price we got.
overall looks about $3k off sticker, its a pretty good price.
Thanks, I'm waiting on the car Now.
Bottom line. LOVE THE CAR!