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2013 and earlier Lexus IS 250 / IS 350 Lease Questions

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi aztudio. Through September 4th, Lexus Financial Services' buy rate lease money factor for a 48 month lease of a 2006 IS 250 is .00265 for consumers who qualify for its "Tier 1+" credit tier. If your credit is in good shape, make sure to insist that this factor is used to calculate your car's monthly payment. Let's take a look at your car's selling price. According to the latest information that I have seen, a 2006 Lexus IS 250 AWD with the Luxury Package and Navigation has an MSRP of $39,630 and a dealer invoice price of $34,690. There is a spread of just over $4,900 on this car. You were quoted a discount of $2,800 on the model that you are interested in, so there is still $2,000 to play with. I am not personally all that familiar with the market for this model right now, but I personally would not be surprised if you were able to beat this offer by at least $500 if you are in an area that has a decent level of competition. Make sure to stop by the following discussion to see how much other community members have paid for similar cars lately: "Lexus IS 250 / IS 350: Prices Paid & Buying Experience".

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello mykal1. I personally feel as though the best way to go with down payments when leasing is to not make one. I always advise community members against making down payments on leased vehicles because if their leased vehicle was totaled in an accident or stolen and never recovered, their down payment essentially disappears. Consumers can lease any vehicle that they want without making any sort of capitalized cost reduction. All you will have to pay at signing to lease a Lexus are your vehicle's first month's payment, Lexus Financial Services' $600 acquisition fee, and any required state taxes or fees.

    Most consumers who lease vehicle just have them inspected and return them at lease-end. Some lessees purchase their vehicles at lease-end, but doing so only makes sense if their vehicle's purchase option price is less than they would have to pay for a similar car on the open market. Lessees can purchase their leased vehicles at the end of their deals and try to sell them on their own or trade them in, but more often than not this is not a good idea because leased vehicles are rarely worth more than their purchase option prices.

    You're right, Lexus' lease program for this car is not that great right now. I do not anticipate it getting any better in the near future either (though it is difficult to predict exactly what manufacturers will do with their future lease programs). If you can get an attractive finance rate through an independent bank, there's nothing wrong with financing this car. I doubt that the money factors for the 2007 model will be any better, but the residual values should be. You may find that it is less expensive to lease a 2007 model than it is to lease a 2006 model right now. Whether this ends up being the case will depend upon how low a selling price you can negotiate on an '07.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi billmv. Most banks do not let consumers switch their vehicles' mileage allowance mid-lease. I doubt that Lexus Financial Services allows this and I have never heard that Mercedes-Benz Financial Services does either. I suppose that lessees may be able to purchase additional miles on a per-mile basis at a discount up to a certain point in their leases. If you find out any more information on the Mercedes program that you mentioned, I'd love to hear it.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi billmv. I am not 100% positive, but I believe that Lexus Financial Services does automatically include gap insurance in leases. You need to check with a F&I person at a Lexus dealership to find out of this definitely is the case and if so what exactly what the parameters of the coverage are. I have never heard that Mercedes-Benz Finance's gap insurance program refunds lessees down payments, but if this is the case it is a very interesting program.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey billmv. I haven't seen Lexus Financial Services' lease program for the 2007 IS 250 / 350 yet. I suspect that I will have a chance to look at this car's new September lease program early this week, like Tuesday or Wednesday. If you don't lease before then, please feel free to ask me for the latest info. As far as this model(s) current lease program goes, I doubt that Lexus is currently providing any sort of lease support on it. If this is the case and you were to lease one through Lexus Financial Services right now you would have to use its standard lease program. The last time that I saw its buy rate standard lease money factor it was .00275 for consumers who qualify for its "Tier 1+" credit tier. This factor may vary slightly by region.

    Car_man
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    Prices Paid Forum
  • sthavornsthavorn Member Posts: 31
    Hi car_man, the last question I have left is the option to buy or not to buy at the end of the lease. Will that change residual or money factor that are set by the bank? Who sets the selling price after the lease. Anything that need to aware of? Thanks
  • billmvbillmv Member Posts: 148
    Car man:
    Thanks for the response.

    After I posted the question about gap insurance, I called my insurance broker to see what I could find out. I was told that I could have gotten gap insurance on my wife's leased '03 MB 230 Coupe from my insurance company, Safeco, for $16 a year. That's only $48 over a three year lease. I paid a one time fee of $125 for it from Bank of the West when I leased the car through a private leasing company 4 years ago. That's what they charged the leasing company, which passed the cost straight through without any markup. The MB dealer in San Jose where we bought the car wanted to mark it up to $525, which I found out later was the max BWE would allow. That's one reason we went with the private leasing company vs. doing it through MB, even though the MB dealer was also using BWE as the bank, had they done the lease.

    Moral of the story......call your insurance person first!

    By the way, it was at my local MB dealer, RAB Motors, where I heard about the "expanded" gap coverage program from a salesman. First I'd ever heard about it too. I won't be going back to discuss leases with them since my wife has since decided she wants a Lexus, so I won't be able to provide any additional intel about it. Perhaps another Marin County forum member knows something about this they could share?
  • billmvbillmv Member Posts: 148
    No, it will not. The residual is set by the entity providing the financing, whether it's the manufacturer or a private bank, like Bank of America. It's strictly based on the length of the lease and the number of miles allowed during the term of the lease. It's a percentage of the MSRP, and it's not influenced by what kind of price you negotiate for the vehicle. Two identical vehicles driven an identical number of miles are going to be worth exactly the same 36 months from now, even though one buyer may have paid list price and the other buyer got $3,000 off list.

    Do a matrix of nine boxes, like an enclosed tic tac toe. Across the top write 24, 36, and 48, the most common lease terms in months. Down the side write the most common mileage allowances, 10,000, 12,000, and 15,000 per year. You now have nine boxes to fill in with percentages which represent the percentage of the MSRP which will be applied to a lease for that term and mileage allowance. These are either set by the manufacturer or come from the Automotive Lease Guide (ALG) which is the bible of future valuation used by 99% of the banks which do car leases. When Car Man tells you what the residual percentages are for a particular make and model, fill in the appropriate box. I found that was a good way to envision how much change there was between the various terms and mileages. You'll notice that the residuals usually drop quite a bit between 36 and 48 months. That's because the estimated future value of a four year old car is not nearly as good as a three year old car, so keep that in mind when determining how long you want to lease a car for.

    The money factor is based on your credit, and is one of two numbers used to determine a lease payment which may be marked up by a dealer as a source of profit. (The other is the negotiated selling price of the vehicle.) If the manufacturer is providing the dealer with lease financing at a money factor of .00245, the dealer may mark that up to, say .00295, and quote you a payment of say, $400 a month, when the payment would have been say, $360 a month had the dealer used the .00245 money factor. The dealer can then pocket $40 a month and send the manufacturer $360. The dealer then makes an additional $1,440 profit on the deal that most buyers/lessees don't even realize he's making. ($40 x 36 payments = $1,440.)

    The selling price at the end of the lease is the residual value, which is clearly spelled out in the contract, plus whatever "termination fee" the financing entity charges if you buy the car. Perhaps $250, to "cover the paperwork." If you turn the car back to them rather than buy it, then the termination fee will typically be higher because they have to do the paperwork plus clean the car up for disposition, so that costs more. The latter termination fee should be spelled out in the contract, as the contract assumes the car will be coming back.

    Just check any contract VERY carefully. Go sit in a corner with your calculator for half an hour and figure out where every number on that contract is coming from before you go back to the F&I guy. Write down all your questions. Get solid answers you completely understand before you sign anything. Remember, he's a pro who runs these numbers all day every day for a living, so he can make them sing like a convict cutting a deal. You don't stand a chance unless you know exactly how the numbers should be crunched. They don't pay him to sit there and fill out contracts. They pay him to make money for the dealership from people who don't understand ALL the elements of the deal. He does that by playing with the numbers. The really good ones can pour you a cup of coffee with their right hand while running a 10-key under their desk with their left. "And your card was .....the 8 of spades!" "Good golly, Ethel!! How did that feller do that!?"

    Hope all this helps! Get educated and go get 'em! Let us know how you did.
  • billmvbillmv Member Posts: 148
    Hi Car Man. Glad to see you're back in action. We missed ya!

    Thanks for the reply on the Mercedes mileage switch thing. I too had never heard of that until this sales guy at RAB Motors in San Rafael (just north of San Francisco) told me about it a week ago. I'm pretty sure that a mid-lease purchase such as the one you outlined is what's going on. Unfortunately, I won't be talking to them again as my wife has since decided she wants a Lexus. All I know is that he said at the 12 month mark you could call them up and "adjust the mileage allowance up" if you found that you were driving more than you were allowed.

    Sorry I couldn't be of more help.
    Bill
  • billmvbillmv Member Posts: 148
    Hey Car Man. Just FYI, I was quoted a 60% residual on an '07 IS 250 (w/o nav) lease on Sept 1, 36/12,000. At 36/15,000 it dropped to 58%. This was at Lexus of Marin.
  • sthavornsthavorn Member Posts: 31
    Hi Billmv, so if the MSRP is $44500 and residual is 60% then the selling price at the end lease would be $26700 + TTL fees? I already asked this question before but forgot to mention the lease term. What's average of 48 month residual percentage IS350 with luxury package? Thanks for the infos I'm almost ready for it.
  • sthavornsthavorn Member Posts: 31
    It's 4 year lease term with 15K mile a year of 2007 IS350 with luxury package MSRP $44500. Thanks
  • billmvbillmv Member Posts: 148
    hello sthavorn.
    Yes, your math is correct. The selling price to you would be $26,700. You would also have to pay a (probably reduced) termination fee to the entity which financed the lease, plus sales/use tax on $26,700 to the state. I'm not sure what other fees you would have to pay, but that might vary depending on what state you live in.

    If you negotiate say, $3,000 off MSRP, then the depreciation component of your payment would be the difference between $41,500 and $26,700, or $14,800. Divided by 48 payments that's $308.33 per month. If you just paid list, then you'd divide $17,800 by 48 and the depreciation component would increase to $370.83. So it pays to negotiate price even if you're leasing!

    I'm not sure what the residuals are for the 2007 models, but here are some residuals and money factors I found somewhere which applied to 2006 models in August. I think for 2007 you could increase the residuals by 2%, but I don't think you should rely on the money factors being the same. They probably went up a little. I think they might be .00275 now instead of .00245. I'd confirm that with a couple of dealers. I think they usually change the first of the month, but that might not be the case now, because Lexus has had that Golden Opportunity Event going on for a while, and it runs through tomorrow, so they may still be what they were in August. Any help, anybody?

    2006 Lexus IS350 4dr Sedan

    24 mo/15k mi – Residual Value 62% of MSRP – .00245 Base Money Factor Rate
    36 mo/15k mi – Residual Value 56% of MSRP – .00245 Base Money Factor Rate
    48 mo/15k mi – Residual Value 46% of MSRP – .00245 Base Money Factor Rate
    60 mo/15k mi – Residual Value 37% of MSRP – .00255 Base Money Factor Rate

    36 mo/12k mi – Residual Value 58% of MSRP – .00245 Base Money Factor Rate
    48 mo/12k mi – Residual Value 48% of MSRP – .00245 Base Money Factor Rate
    60 mo/12k mi – Residual Value 39% of MSRP – .00255 Base Money Factor Rate

    2006 Lexus IS350 4dr Sedan w/ Navigation

    24 mo/15k mi – Residual Value 62% of MSRP – .00245 Base Money Factor Rate
    36 mo/15k mi – Residual Value 56% of MSRP – .00245 Base Money Factor Rate
    48 mo/15k mi – Residual Value 46% of MSRP – .00245 Base Money Factor Rate
    60 mo/15k mi – Residual Value 37% of MSRP – .00255 Base Money Factor Rate

    36 mo/12k mi – Residual Value 58% of MSRP – .00245 Base Money Factor Rate
    48 mo/12k mi – Residual Value 48% of MSRP – .00245 Base Money Factor Rate
    60 mo/12k mi – Residual Value 39% of MSRP – .00255 Base Money Factor Rate
  • sthavornsthavorn Member Posts: 31
    Yes, you are right about taking some discout of MSRP that's the only way to bargain. Even the residual is off by 2% it wont make a big difference in monthly payment. The average selling price (net cap cost)as of today is between around $40500 - $42000. Thank you so much for all valuable informations.
  • casturtroycasturtroy Member Posts: 4
    On our first trip to the dealer, we drove the 250 and 350. We decided on the IS350 with all options, excluding navigation. We were interested in a 36 month lease, with 0 down, 12,000 per year. The dealer told us it would cost $700 per month. We didn't show interest and stated that 700 was quite a bit above where we wanted to be.

    The next day, we got a call offering us the same lease for 650. After some calling around, we found the same car at 2 other dealers (one is about 15 minutes away, the other is about an hour). Both offered the lease at 785 above invoice, which came to 580 per month, on a 2006 or a 2007. I was shocked that they would do it on a 2007. Just an FYI as to what some dealers will do, and what others won't.
  • eds1300eds1300 Member Posts: 71
    What target price should I look for an IS250 rwd in the San Francisco/Bay area?

    I been offered so far over the internet for package A, $33,500 and $33,300. Also with above normal money factor.
    I appreciate any input, such as dealers and sales staff in the Bay area. I'm willing to drive 50 miles to make the right deal for 36/10,000 miles on a automatic IS250 rwd with HID lights and leather.

    Package A: 18" Alloy Wheels w/225/40R18 Fr + 255/40R18 R
    Summer Tires, High Intensity Headlamps with Adpative Front Lighting System (AFS), Premium Package Includes: Heated and Ventilated Front Seats, Wood Interior Trim, and Perforated Leather Seat Upgrade, Preferred Accessory Package:
    (MSRP: $35,097.00)

    Package B: 18" Alloy Wheels w/225/40R18 Fr + 255/40R18 R
    Summer Tires, High Intensity Headlamps with Adpative Front Lighting System (AFS), Navigation System Includes: Generation 5 Navigation System with Rear Camera, Bluetooth, and Voice-Activation with Destination Input, Premium Package Includes: Heated and Ventilated Front Seats, Wood Interior
    Trim, and Perforated Leather Seat Upgrade, Preferred Accessory Package:(MSRP: $37,647.00)
  • billmvbillmv Member Posts: 148
    hi eds1300. I think you should target a range of $31,500 to $31,900 for the A package if you live in Marin and go to the local dealer. What town do you live in? Not supposed to mention staff names on this forum.
  • eds1300eds1300 Member Posts: 71
    Thanks billmv,

    I live in the Marina district and have sent out a quote request to Lexus of Marin but they have not responded.

    Although, the interior room of the IS250 is smaller than the
    325i, I really enjoy the leather, wood, and the layout of it much more than the 325i. It seems the base money factor of the IS is higher(.00265) vs. 325i(.00225), but I may just purchase the vehicle instead of leasing if the borrowing rate is favorable. I will be using MACRS depreciation and the residuals are close enough. I'm also looking at 06 Acura TL at cost to below dealer invoice. Any suggestions of other dealers that I should stop by?
  • billmvbillmv Member Posts: 148
    Ahhh, the Marina district. Good place to live. One of my favorite restaurants is there. A101. They sometimes have great dishes that aren't on the menu. The chef's name is Oscar. Call him in the afternoon and find out if they're having one that night, if you don't already know about this. Some of the locals do.

    Sounds like you need a CPA who can run the numbers both ways for you if you want to buy the car and use accelerated depreciation.

    No help on Acura dealers, but the prices seem great if they're below invoice.

    As far as Lexus dealers are concerned, I think some good ones are Concord and Serramonte from what I've seen on this forum. I'd try Marin again. Maybe your email went to someone who's off for a couple of days.

    Yeah, the Lexus MF is higher. It all depends on the desire of the manufacturer to support the leasing program.

    Good luck!
  • eds1300eds1300 Member Posts: 71
    Good place to live sometimes, except for my rent expense. I live in Dallas also(primary residence). I've sent out 5 or 6 e-mails each to BMW and Lexus dealers and only a handful have responded. All ignoring my request for money factor, acqusition fee and so on. They just state only the sales price and the monthly payment, which they increased to Ch7 bankruptcy rate, even with my tier1+ rating.

    Acura TL sure does sound good about now. I just hope the G35 and the new C-class will bring these dealers back to earth.
  • dw8787ddw8787d Member Posts: 1
    ok, sorry for the stupid question. I have searched this forum but can't find how the Money Factor is used/calculated into the leasing calculation. I'm looking at an 07 IS350 in the Atlanta area, with a sticker price of 42,282 (Navi). First attmept at a dealer negotiation was 41,130 selling price, 24,100.74 residual and a payment of $700 a month on a 36 month lease. I told them they were crazy. Unless I'm figuring things in my own little way incorrectly, that doesn't even seem close to what I feel a decent deal should be. He threw the "but this is a Lexus" statement at me. I told him unless they could call me with something better, then NO. Can you help me with that MF calcultaion and maybe what you think is an acceptable deal for an 2007. By the way, I have been using the Lexus.com lease calculator to help me figure out what I am looking for. Thanks
  • billmvbillmv Member Posts: 148
    No problem..It's easy once you understand the math.

    There are basically four numbers that go into a lease calculation: The MSRP (including destination); the Residual Value at the end of the lease term you have chosen; the negotiated selling price of the car; and the money factor.

    The dealer controls, and can make money on, two of these: the selling price and the money factor. He cannot control the MSRP or the residual, which is set by the manufacturer, and is based on lease term and miles driven.

    If Lexus Financial is giving the dealer a .00265 money factor, then the dealer can use a higher rate when they quote you a payment, or they can make nothing on the financing component and pass that rate straight through to you without a markup. Obviously that's what you want.

    There are two major components to a lease payment: depreciation and interest.

    To calculate the depreciation, you multiply the MSRP by the residual value percentage, to get the RV in dollars. Then you subtract the RV dollar amount from the capitalized cost (negotiated selling price of the car + acquisition fee), and divide the result by the number of months in the lease.

    To get the interest, you add the cap cost to the RV, and multiply the result by the money factor.

    Add these two results together, multiply that result by the sales tax where you live, add the three together, and you have your lease payment. Depn + int + tax = payment.

    Be aware that there is always an "acquisition fee" added to the negotiated selling price, and that results in the cap cost. Lexus' fee is $600, and cannot be altered by the dealer.

    Many dealers will suggest you make a "cap cost reduction" (down payment) to bring down the monthly payment, but that's just moving money around and is not a good idea, since it could be lost if your car is totaled or stolen. Insurance may not cover this "gap." Call your insurance agent and get a quote on gap insurance. It will be MUCH cheaper than buying it from the dealer.

    Hope this helps. Go through the calcs a couple of times and it will become very clear that negotiating a good price and insisting on using a money factor that has not been marked up becomes crucial to getting a good deal on a lease.

    Good luck!
  • sthavornsthavorn Member Posts: 31
    billmv or car_man where do you find invoice of 2007 IS? What happened to Edmunds? http://www.edmunds.com/new/2007/lexus/is350/100778075/prices.html
    Thanks
  • kyfdxkyfdx Moderator Posts: 235,217
    I don't know why Edmunds doesn't have it, but the spread between base invoice and MSRP on the '07 IS350 is $4285

    regards,
    kyfdx

    Edmunds Price Checker
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  • kyfdxkyfdx Moderator Posts: 235,217
    No.. the invoice will be lower than that.. The spread is just on the base price.. Each option has an invoice price that is lower than the MSRP, as well...

    Edmunds Price Checker
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    Did you get a good deal? Be sure to come back and share!

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  • d_is250awdd_is250awd Member Posts: 1
    Hi Car_man,

    I just pick up a IS 250 AWD with NAV/WOOD/HID, and this is what I'm paying for, 32 months Lease @ $450/mth and $2600 Upfront.
  • trini305trini305 Member Posts: 7
    Hey Car_Man,

    I live in Miami and I'm looking to get an IS 250 RWD / Automatic/ Premium Plus Package w/ 18" Wheels. The MSRP for the vehicle is $36,355 and Invoice is $31,740. With December to Remember coming up, I'm hoping to get the price down to $32,500 or at invoice. Do you think there's a chance?

    I'd like to lease the car for either 24 or 36 months with $1500 Out the Door. What do you think the payment will be if I can get it down to about $32,500 or at invoice?

    Thanks for the help Car_Man!
  • from_flfrom_fl Member Posts: 113
    You can buy a low mileage,used one with same feature for 32500.
  • pravinmpravinm Member Posts: 12
    Hi guys,

    I really need some help with a 2007 IS 250 lease. I was offered a deal in the DFW area for a 15000 miles/year 36 month lease at $590 a month. This is on a IS 250 with Premium package including the nav and hands free package. The MSRP was 37772 and the dealer gave me $2600 off the MSRP. What concerns me is the money factor. They offered .0035 This seems extremely high. Is this the normal money factor or are they trying to screw with me. I have seen in the forum people talking about .00265 money factor for this car. Is this what i should demand for?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi trini305. Lexus' "December to Remember" sales event has more impact upon vehicles' money factors than it does on their selling prices. During this annual promotion, Lexus usually provides more attractive lease money factors than normal on its vehicles. There is usually not any cash component to this program that would enable you to negotiate a lower selling price than normal. Dealers may be slightly more willing to discount vehicles during the promotion, but I wouldn't count on getting a much lower capitalized cost for a lease than than you would be able to get now. The interest that you pay on your lease, aka the money factor, will just be lower. You may be able to get an idea of what sort of price you can negotiate on this car by stopping by the following discussion: "Lexus IS 250 / IS 350: Prices Paid & Buying Experience".

    I can't tell you what sort of lease payment to expect through the "December to Remember" event until Lexus officially provides its dealers with its details. Please feel free to check back with me after the program starts, probably around November 22nd or so, and I will be happy to tell you exactly what the new program is like.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi pravinm. .00350 is waaaaaay too high a money factor to pay on this car. Lexus Financial Services' current buy rate for Tier 1+ customers who lease it is currently less than .00300. I believe that it varies by region, but it should be more like .00275. Not only that, but I expect this car's factor to get better when Lexus introduces its new lease program late this month. I definitely would not go for this deal if I was in your situation.

    Car_man
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  • mudfudmudfud Member Posts: 6
    Hello Car Man,

    It appears that the "December to Remember" event has started. Any information about the new money factors?
    Thanks!
  • carmeistercarmeister Member Posts: 7
    I was recently looking at the IS350 and asked about when the December to Remember financing would be available. The sales rep told me that they were available now (don't know how long that has been in effect) and that there would be no incentive leases for the IS350 and the financing rates for great credit would be 6.99%. My guess is one can easily beat that financing rate out in the open market.
  • chrisd701chrisd701 Member Posts: 1
    I need others opinion.
    I got a price for an IS250 AWD for the Decemeber to Remember sale of $483. My lease for the car I have now isn't up until March. So I would get the IS in the end of January (still with the december to remember deal) & I would have to give back my current car early (paying for 2 months even though I'm giving it back early).

    Do you guys think I should get the lexus & give my car back early or just wait until March to get the lexus?

    I'm a little worried that I'm not going to get the same money factor in March and I'm going to wind up paying more money.

    Thanks!
  • carlos76carlos76 Member Posts: 1
    2 months ago I leased a Nissan Maxima but now I realize that the car I really want is the IS 250. How should I go about it? My lease payments go to the Nissan Motor Acceptance Corporation... Does this look bad on my credit report? What options should I expect the lexus dealer to give me and what do you think this exchange will cost me?
  • kingsbury14kingsbury14 Member Posts: 1
    I was just quoted the following for a 2007 IS250 AWD:

    36 month lease, 12k miles per year
    Money Factor: .00265
    Residual: 60%

    Is this a good deal for the "December to Remember" event? I've read elsewhere that people were getting the .00265 money factor before "december to remember".
  • topgun7topgun7 Member Posts: 412
    "Does this look bad on my credit report? "

    No, it won't. But you may be out of a lot of money. First, you call Nissan Motor Acceptance Corp to find out your pay off amount. Then you can either sell the car on your own or trade in your Maxima. You will lose out on the difference between you cap cost and the used car trade in value. It can be a few thousand dollars.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You are correct, mudfud. The "December to Remember" sales event started on November 14th. Through this promotion, Lexus Financial Services' current buy rate lease money factor for the 2007 IS 250 and IS 350 is .00225 for consumers who qualify for its Tier 1+ credit tier.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi chrisd701. While the "December to Remember" sales event often provides very attractive deals on select Lexus models, the support that is available on the 2007 IS 250 isn't that great. Its special lease money factor for this car is currently .00225 versus its standard money factor which is probably around .00275. These money factors are equivalent to interest rates of 5.4% and 6.6%, respectively. I would be happy to calculate what the difference between your car's lease payment would be with and without the special December rate for you if you provide me with this car's MSRP and selling price. This will give you an idea of exactly how much this special money factor saves you per month.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi carlos76. As long as you do it properly, getting out of a lease early will not have a negative impact upon your credit report. Unfortunately, having said that it is usually fairly expensive to get out of leases well before their scheduled end dates. In order to do so, you need to purchase the vehicle that you are currently leasing from the bank that you are leasing it through. It often turns out that it costs more to do so than your vehicle is worth on the open market. Furthermore, many banks expect consumers who end their leases early to still make all, or at least the depreciation portion of their remaining lease payments. As you can see, this can get very expensive.

    You can determine approximately how much it will cost you to get out of your current lease by comparing its purchase price to its value on the open market at this time. You should place a call to the bank that you are leasing your vehicle through to find out its exact price. Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". Don't forget to check to see if you are still on the hook for your remaining lease payments. The difference between your leased vehicle's current value and how much it will cost you to buy it plus any remaining lease payments that you are obligated to pay will equal the cost of getting out of your lease right now. You may find that you are better off waiting until you are closer to the scheduled end of your lease to get another new vehicle.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi kingsbury14. The residual that you were quoted for this car is right in line with Lexus Financial Services' published value. However, the money factor that you were quoted is a little high. LFS' "December to Remember" buy rate lease money factor for the 2007 IS 250 AWD is currently only .00225 for consumers who qualify for its Tier 1+ credit tier. Make sure to have your dealer use this factor to calculate your car's monthly payment.

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  • mldj98mldj98 Member Posts: 378
    I have never leased a car before but am thinking about it.
    I have a few questions, please excuse, just trying to increase my knowledge....

    I assume you can haggle on the price of the car first, right?
    Once you establish a price, then you go into all of the details of the lease correct?
    This is where I get lost.....I have excellent credit, score is around 800.....what type of deal should I be looking for during this sales event? How many years is an average lease?
    What kind of money is needed to put down on this purchase?
    How many miles a year is average on a lease? Can you ask for more without paying more? What is a residual payment?
    Last question, what advantage if any is there to leasing?
    Thanks for all input, it is much appreciated!
  • from_flfrom_fl Member Posts: 113
    If you can't afford the car please don't even try lease it.
    It is not a wise move.
  • fitzgibbonsfitzgibbons Member Posts: 12
    Thank you for all of the helpful info. on this site.

    I live in the Las Vegas area where there is only one Lexus dealership. I have reasonable access to Southern CA and Utah so going to either place for a vehicle is not an issue. I currently drive a 2004 Infiniti G35 Coupe (Premium Package) with an expiring lease. I was considering a G35 Sedan although I have heard great things about Lexus so I test drove the IS 250/IS 350 models. I like the IS 350 more and would like to start negotiating. I do not believe that I want the nav and want upgraded seats with either the luxury or sport packages.

    My questions are as follows:
    1. Is the IS 350 superior to the IS 350?
    2. What features are must-haves with the car?
    3. With what dealers should I start negotiating for my lease and what should I be offering?

    I realize that some of these are broader questions and hopefully as I learn more, I will get more direct with the questions. Any help you can provide would be most beneficial as I move forward with this process.

    Thank you,
    Eric
  • edrnedrn Member Posts: 17
    Recently visited a Baltimore Lexus dealer for the IS250 AWD.
    First quoted me MF of .00315(I have excellent credit) then lowered to .00250 saying the dealer buys the rate (probably not true) A few questions:
    1. What is the MF being offered now through Lexus Fin. Service?
    2. In Maryland, are sales tax added on the full sales price of the car.
    3. I was quoted:
    IS250 AWD w/ HID package
    36,000
    Residual value of 18,400
    36 month lease with MF .00250
    $563.00/month
    No out of pocket except obviusly first payment.
    Not sure if this included $600.00 acq. fee.

    Is this a good deal. Some I spoke to said they thought this was the best I could get.
    Also looking at BMW 328XI, I have a 330XI now and the IS250 seems a lot slower on pick up. I know the engine is smaller on the IS250 but are the cars comparable?
    Thanks. I've learned so much from this forum.....
    Forever grateful
  • edrnedrn Member Posts: 17
    Does anyone know the money factor offered by BMW and Lexus right now?
  • prancinghorse9prancinghorse9 Member Posts: 11
    Seems like BMW has better money factor than the lexus.
    I thought all along that I was gonna get a 335 until I used their Nav, and compared to the Lexus Nav, its like DOS to Window. But looking at some of thepost, either Lexus has horrible MF or BMW has super MF
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Greetings mldj98. Since you are new to the world of leasing, 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.

    In answer to your specific questions, yes the selling prices of leased vehicles are absolutely negotiable. Make sure to negotiate as low a selling price as you can on the new IS that you are considering leasing then have the dealer that you are working with calculate its lease payment using Lexus Financial Services' buy rate lease money factor.

    Most leases are 24 to 48 months long. Generally speaking, the shorter your lease is, the higher your monthly payment will be. I usually prefer to lease for 36 to 39 months. This is a nice length because it is long enough that your monthly payment will be reasonable, but too long so you won't get sick of your vehicle.

    Consumers can and should lease any vehicle that they are interested in without making any sort down payment. Consumers who make large down payments on vehicles actually risk losing them if their vehicle is totaled in an accident or stolen and never recovered. At lease signing, you will have to pay your car's first month's payment, Lexus Financial Services' $600 acquisition fee, and any required state taxes or fees. I believe that Lexus Financial Services will waive its security deposit requirement for consumers who qualify for its top credit tier, as you should judging by your credit score.

    Leases usually allow 10,000 to 15,000 miles per year. Most consumers go with 12,000 or 15,000 miles per. Which option you choose will depend upon how many miles you typically put on vehicles. The higher your vehicle's mileage allowance is, the higher its lease payment will be.

    Your vehicle's residual value is used to calculate the depreciation portion of your monthly payment. It is also used to calculate your vehicle's lease-end purchase option price.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi Eric. You should be able to answer all of the questions about which model is better and which options to choose by visiting the following section of the Edmunds.com Forums: Edmunds.com IS discussions.

    Car_man
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