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2013 and earlier Lexus ES 350 Lease Questions

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey 4barbara. You would be better off waiting until the scheduled end of your current lease to get something new. Unless your leased car is worth way more than its residual value on the open market, to lease something now either you or your dealer will have to make your final four payments on it. If the dealer makes them for you it will hamper your ability to get the best possible deal on your new car.

    You never mentioned the selling price or MSRP of the ES 350 that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this what car's selling price is in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to give you my opinion of this deal if you let me know what these numbers are.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi valew. It's great that you know the selling price of the car that you are interested in leasing. Many consumers never find this important piece of information out. It is difficult for me to give you my opinion on it though without knowing this car's MSRP or dealer invoice price. These numbers will help me to determine how good a deal you are getting. Make sure to stop by the "Lexus ES 300/ES 330: Prices Paid & Buying Experience" discussion to see how much other community members have paid for this car lately.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi mrtrance. The dealer invoice price of the car that you described is probably around $37,200 or so. When we subtract the $500 dealer cash that is currently available on this model from that we arrive at around $36,700. I personally doubt that it is possible to lease one for much less than that. If I could get this car for $36,166 through CarsDirect, I personally would go for it. I doubt that you can get this car for $35,000, but I am surprised that CarsDirect's price for it is so low. Try stopping by the "Lexus ES 300/ES 330: Prices Paid & Buying Experience" discussion to see how much others have paid for this car lately.

    I don't believe that Lexus is providing lease support on the ES 350 in September. If you were to lease one through Lexus Financial Services right now for 36 months with 12,000 miles per year, your buy rate lease money factor and residual value should be .00285 and 54%, respectively.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi oleg. The ES 350 that you are interested in probably has a spread of around $4,400 between its full MSRP and its dealer invoice price. When owe add the $500 dealer cash that Lexus is providing on it to this, we arrive at $4,900. The $4,970 discount that you are being given on this car looks very attractive to me. Just make sure that the dealer that you are working with uses Lexus Financial Services' buy rate lease money factor to calculate your monthly payment and you're in business. I believe that LFS' September buy rate for this car is .00285. This would drop to .00195 with the payment of nine additional security deposits.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Welcome stevegotex. Since you have never leased before, 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.

    Lexus Financial Services or the dealer that you are working with should be able to provide you with the specific guidelines that Lexus Financial Services uses to determine exactly what considered is excess wear and tear. Generally speaking, I have found manufacturers' captive finance companies, like LFS, to be very reasonable when evaluating vehicles for excess wear and tear at lease-end.

    Car_man
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  • acura_tlacura_tl Member Posts: 38
    Car_man/Others,

    What is the residual value at lease end for the 2008 ES350 for a 36 month/10,000 mile lease?
    Is the MF for 2008 same as 2007?

    I am interested in leasing a 2008 ES350 with Navigation System.

    Thanks.
  • integritasintegritas Member Posts: 5
    Hi Car_Man,

    I am a CPA assisting my Southern California clients in negotiating a lease on a
    2008 Lexus ES350 Ultra+Nav+MarkLevinson.

    They require a 15,000 mile/yr lease, 36 month term.

    They have impeccable credit.

    I would be grateful for your wisdom on these items:

    . Lowest money factor

    . Highest residual

    . Sec Dep required? If so, lowest amount? & can it be capitalized?

    . Lowest amount over invoice to pay [Edmunds shows ~ $1,500 for TMV]

    . Your guidance for the dealer-installed high-markup-add-ons (where cost is not apparent): how to negotiate?

    Much thanks!

    And hope this assists the other enthusiastic folks who participate in this forum.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi acura_tl. Lexus is not currently providing any lease support on the 2008 ES 350. As a result, if you were to lease one through Lexus Financial Services right now you would have to use its standard lease program. LFS' buy rate standard lease money factor probably varies slightly by region, but it should be around .00275 for consumers who qualify for its top credit tier right now. LFS' current 36 month, 12,000 mile peer year residual value for an '08 ES 350 without the Ultra Luxury package is 58%. I am not sure if it offers leases with only 10,000 miles per year.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi integritas. Lexus is not currently providing any lease support on the 2008 ES 350. As a result, if your clients were to lease one through Lexus Financial Services right now they would have to use its standard lease program. LFS' buy rate standard lease money factor probably varies slightly by region, but it should be around .00275 for consumers who qualify for its top credit tier right now. LFS' current 36 month, 15,000 mile peer year residual value for an '08 ES 350 with the Ultra Luxury package is 54%. I don't believe that LFS requires consumers who qualify for its top credit tier to pay a security deposit on their lease. It does charge a $600 acquisition fee on every vehicle that it leases though. This fee can be paid at lease signing or rolled into vehicles' capitalized costs.

    I am not personally all that familiar with the market for the ES 350 right now, but it is a pretty high volume vehicle and your clients are in an area that has a lot of competition. If I was in the market for this car under those conditions, I personally would shoot for a selling price of $500 over dealer invoice and see what happens. Make sure to stop by the following discussion to see how much other community members have paid for similar cars lately: "Lexus ES 350 Prices Paid and Buying Experience".

    Car_man
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  • ocautoseekerocautoseeker Member Posts: 425
    I just received a quote on a 2008 ES with UL pkg. that lists for $44,812. Base cap cost was $40,459 ($1070 over invoice) + $1,240 for chrome rims (they retail @ $1,995). Adjusted cap cost would be $41,699.

    Terms: 36 months,15K-mi/yr - $5k out of pocket = $591/mo (includes 7.75% tax rate)

    I assumed a 54% residual and the standard Lexus MF of .00275. Would the residual be higher for getting the car with the UL pkg.?

    Just curious if the numbers they quoted me seem right, or if they hit me for some rate?

    A few dealers tried to tell me that they get full-pop for ones with UL pkgs.??? I still think this is a $500 over car, any thoughts?

    Car_Man, just curious where you get all your residuals and MF's from? I'd love to have access to all that!!! You subscribe to ALG or have someone in the biz??
  • espo1espo1 Member Posts: 27
    I would wait for car man's reply. He has the most smarts on these matters and I'm interested what he has to say. But I'm more than sure that he will tell you not to put the 5k towards the lease. You can loose the 5k if you total the car. If you've got 5k up front use it to buy down the MF and you get it back at the end of the lease. That's what I plan to do when I go for my lease in Dec.
  • dfw_buyerdfw_buyer Member Posts: 2
    Does anyone know if the Encore program for Lexus also applies if you had a previous lease with Toyota? If so how much is the discount? Also, do you have to have tier 1 credit to qualify or just have to have made all of your auto payments on time? thanks
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi ocautoseeker. Lexus Financial Services' residual values for 2008 ES 350 models that are equipped with the UL package are actually 2% lower than the residuals for models without the package. Unfortunately, I am not aware of any source that provides accurate information on manufacturers' actual lease programs to the general public.

    As far as this car's price goes, if you are in an area that has a number of Lexus dealers within driving distance you definitely should be able to do better than full MSRP on this car. Make sure to stop by the "Lexus ES 350 Prices Paid and Buying Experience" discussion to see how much other community members have paid for their ES 350s lately.

    By the way, you definitely should not make a $5,000 down payment when leasing. I always advise consumers not to make any capitalized cost reduction on leases. Those who make them risk losing part or all of them if their vehicle is totaled in an accident or stolen and never recovered. You would be better off going with a zero down lease even though it means that your monthly payment will be a little higher.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello dfw_buyer. Lexus Financial Services' Encore program provides a .00010 money factor reduction on the lease of a new vehicle to current lessees. I believe that this program is available to all consumers, regardless of what credit tier they qualify for. Having said this, the money factors that have been mentioned in this discussion are for consumers who qualify for LFS' Tier 1+ credit tier. If your credit isn't excellent, you will likely have to pay a higher factor to lease the ES 350 that you want than the ones that you have seen mentioned. I doubt that the Encore program is available to current Toyota lessees, but it wouldn't hurt to check with a dealer to see if it is.

    Car_man
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  • espo1espo1 Member Posts: 27
    Car man
    I notice you gave the multi deposit buy down as .00010. Most dealers are saying it is .0008. Is this BS? That could mean a extar payment of about $500 over the cost of the lease. Also A fleet sales person said that one may pay the interest up front intsead of throwing money at the cap cost to reduce the nut.( alot of leases in certain states collect the sales tax monthly through the lease payment ie PA Is this good? If a lease is terminated for ant reason do yoiu get you a sales tax back on unpaid portion?
  • debbie731debbie731 Member Posts: 10
    I am interested in leasing the ES 350 with most of the options except navigation and what comes with it. We were quoted a purchase price of 36,500.00 for the car with a lease payment of 544.74 for 36 months 12,000 miles. I believe the residual on the car is 21,900.00. Our total payment for taxes, first payment, and bank fee is 2955.00. Is this a good deal? We live in New York near NYC. Thank you.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey espo1. The money factor reduction for multiple security deposits was .00010 the last time that I checked, but I suppose that it is possible that Lexus Financial Services has changed it since then. BMW FS lowered the reduction that it provides for additional deposits several years ago. Many banks allow consumers to pre-pay leases. While pre-paid leases are not interest free, consumers who pay for their entire lease in advance do receive a reduction in the money factor that is used to calculate the interest portion of their lease.

    If you decide to terminate your lease early or your vehicle is totaled you will not receive a refund of the sales tax that you paid on it.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi debbie731. What is this car's full MSRP? This number will enable me to see how much of a discount you are being given on it and to use Lexus' current lease program to estimate what its monthly payment should be. Let me know and I'll tell you what I think.

    Car_man
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  • debbie731debbie731 Member Posts: 10
    The MSRP according to your site is 38,100.00 the TMV price is 37,972.00 not including the tax. Thanks in advance for your help.
  • debbie731debbie731 Member Posts: 10
    Sorry I gave you the wrong amount because I wasn't sure of the options but I checked with salesperson. The invoice according to your web site is 37,520.00 and the TMV in my zip code is 37,394.00. You do not give an invoice price on your web site. Please also note that the dealer is paying off 1200.00 of our leased car (the remaining payments we will owe) as well. We are willing to keep our other car until the lease is up but the dealer said because of the Lexus December lease rates that when our lease is up the price will be more for us to lease than now since the next time Lexus has the special lease rates is July and our car is due back well before this.
  • nc_driver1nc_driver1 Member Posts: 56
    Hi Carman,
    Could you please let me know what is the current Lexus 350 lease promotion under this year-end event?
    I qualify for a Tier 1 credit.
    Thanks a lot.
  • ghcrbyrghcrbyr Member Posts: 3
    I have been quoted a residual value of 55% and a .0023 money factor on a 3 year lease for a 2008 ES350 with 12000 miles/year? Any feeling as to whether these are high/low, reasonable/unreasonable numbers?
  • jmatggjmatgg Member Posts: 2
    I understand that the next round of Lexus lease incentives is July. Does anyone know the difference between the July incentives and the December to Remember incentives? Will I get a better deal by waiting until July with their incentives plus near the end of the model year? Are they anticipating making significant changes to the ES 350 for 2009? When do the 2009's come out?
    Thnaks for info.
  • ocautoseekerocautoseeker Member Posts: 425
    Those numbers are spot on.
  • ntlwhslentlwhsle Member Posts: 21
    I wanted to be sure of the post above. Is the Dec to Remember rates 55% and a .0023 money factor on a 3 year lease for a 2008 ES350 with 12000 miles/year?

    The IS money factor is .00155 so the ES would be higher?

    thanks..
  • ntlwhslentlwhsle Member Posts: 21
    also my lexus dealer says that the Money factor reduction is only .0008 with every multiple sec deposit.
  • ocautoseekerocautoseeker Member Posts: 425
    Yes, 55% residual (36 mo/12k) .00230 buy rate MF on the ES.

    All models' money factors vary (set by the bank). The IS rate is much better than the ES right now.

    In regards to the MSD's. .00008 discount sounds about right. I've seen it from .00007-.00010. Unless LFS is paying you interest to hold "your money", no reason for a MSD. Just my opinion, of course.

    Good luck!
  • robpacrobpac Member Posts: 6
    Have they posted the new residuals and money factors for ES350? The local dealer website is still showing the "December to Remember" event although it says it expired 1/2/08.

    Thanks.
  • nomisnynomisny Member Posts: 11
    15k/year, one luxury package ($3,820) most options -- NO navi.
    MSRP = $38,405.00 incl. destination.
    Any ideas on what a good payment would be?

    I'm in the NYC area. Thanks.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi robpac. Lexus has published its new January lease program for the 2008 ES 350. Unfortunately it is not providing lease support on it this month. As a result, if you were to lease one through Lexus Financial Services right now, you would have to use its standard lease program. LFS' current buy rate standard lease money factor is .00255 for consumers who qualify for its Tier 1+ credit tier. Its residual values for the '08 ES 350 vary by term and mileage allowance. The 36 month, 15,000 mile per year for one without the Ultra Luxury package is currently 54%.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi nomisny. The car that you mentioned probably has a spread of around $4,400 between its full MSRP and its dealer invoice price. I will work up a sample payment for you, assuming that you are able to get it for around $1,000 over invoice. It will probably take a dealer discount of around $3,400 to get there. If you are in an area that has a decent level of competition, you may be able to do better than this. Make sure to stop by the "Lexus ES 350 Prices Paid and Buying Experience" discussion to see how much other community members have paid for similar cars lately.

    According to my calculations, if you were to lease a 2008 Lexus ES 350 that has an MSRP of $38,405 and a selling price of $35,005 through Lexus Financial Services right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment would be around $539.

    Car_man
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  • skywalker3333skywalker3333 Member Posts: 7
    Hi Guys - this is a wonderful forum. My last month of my current lease is April. I know intrest rates have fallen recently. Am I better off waiting to lease my new ES350 until April - or do it now when rates have dropped a bit? There is no penalty in the lease after March 5th... Can you advise the current MF's - and whether a 36, 42, or 48 month lease is best?

    Thanks
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    I'm glad that you enjoy this forum so much, skywalker3333. Here's Lexus' new lease program for the ES 350. If you were to lease this car through Lexus Financial Services prior to March 31st, its buy rate lease money factor and residual value for a 24 month lease with 15,000 miles per year would be .00155 and 60%, respectively. The numbers for an otherwise identical 36 month lease are .00155 and 54%. Its 48 month numbers are .00155 and 45%. If the vehicle that you are currently leasing is also an ES 350, you are eligible for a special $1,000 owner loyalty incentive if you lease a new one. Make sure to take this cash into account when negotiating your car's selling price. It is difficult to say what this car's April lease program will be like. There is a chance that LFS will enhance its money factor slightly, but I believe that it is scheduled to publish its second quarter residual values in April. Any drop in this car's residual values, which is likely, would at least partially, if not entirely, offset any improvement in the money factor.

    Car_man
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  • smith83smith83 Member Posts: 60
    Hi Car_Man.

    I have been offered the following deal on a Lexus ES 350:

    MSRP w/XM $37646
    Sale Price for March $35000
    Lease End Residual $18528.84
    Money Factor .00205
    36 mos. @ $619.59 w/$619.59 total down

    What do you think?
  • sextonmsextonm Member Posts: 1
    Hey Car Man,

    I'm in the process of evaluating a first time lease agreement and I wanted to run the numbers by you to get your opinion.

    For the 2008 ES 350:

    MSRP $42,300

    Sale Price $39,900

    term 36 months

    Residual money factor 54%

    Money Factor .00265

    The concern that I have is the money factor. Does this number look high to you? What's the typical money factor range and can this number be negotiated?

    Also, is it recommended to go with as little money down as possible?

    thanks,

    Sextonm
  • laderakingladeraking Member Posts: 69
    Lay it on me....is this a good one?

    24 month
    12000 miles
    MSRP 37,8000 (no Nav)
    selling at invoice of 33861,
    $1000 out of pocket,
    62% residual, .
    00155 buy rate on money factor,
    payment of 545.88 +tax = 588.10 inc tax.
    Offer ends by March 31.
  • ocautoseekerocautoseeker Member Posts: 425
    Car_Man is a busy guy so I'll step up on this one...

    Residual value is correct. Current LFS base rate is .00155. If your credit is 720+, you qualify for LFS Tier1+ credit tier and should be given the above rate. You need to ask for it, otherwise they'll take advantage and "mark the rate up" as they have done thus far @ .00265.

    If you live in a competitive region, they need to reduce your cap cost (selling price) by another $2000-$2500 to get you right around invoice.

    Lexus charges a $600 lease acquisition fee on this vehicle and most dealers will cap the cost into your lease, however, you can pay it upfront or as part of your drive offs. The figures below represent payments with and without the acq fee capped into your payments.

    Judging by the numbers you've provided, they're probably quoting you between $638 and $655 + tax. Realistically though, with a more aggressive cap cost/selling price and utilizing the buy rate money factor, payments should be more in-line of $510 - $527 + tax.

    Do not make a down payment/cap cost reduction on a lease. Just pay your 1st mo. and dmv fees upfront. Again, you can pay the acq fee upfront too, or cap it into your lease. There might be a security deposit required. Have to check, but willing to bet it's waived for tier 1 + customers.
  • ocautoseekerocautoseeker Member Posts: 425
    Numbers look pretty much right on... go for it!
  • lovelaurellovelaurel Member Posts: 2
    From what I can tell, this appears to be a good quote - comments?

    ES 350 MSRP 37800
    $2,812 discount
    no NAV, but standard upgrade pack
    tax included
    acq fee rolled in
    no down
    1st payment included
    15,000 miles per, 48 months
    511.34 month
    central ohio
    by march 31
  • sprolisproli Member Posts: 1
    Am looking to lease in the Miami area this month, as my current car lease is up. Does anyone have figures for April? An incentives? Would like 36 or 39 month lease. No money down (advisable). Leasing prices, etc. Would appreciate any imput ASAP.. Thanks. Miami Gal
  • geojregeojre Member Posts: 12
    Can anyone provide the April Residuals and money factor on an ES350 without ultra premium for a 36mo 12k lease. I live in Pittsburgh PA
  • ocautoseekerocautoseeker Member Posts: 425
    Here ya' go...

    '08 ES 350 (non Ultra-Luxury)
    36 Mo – Residual 52% – .00125
  • colslickcolslick Member Posts: 29
    geojre, saw a lease table on roadfly which gives 52%/.00125 for 36/15k, which would put 36/12k at 54%/.00125. I think, good luck.
  • ocautoseekerocautoseeker Member Posts: 425
    Forgot to mention that you need to add 2% to the residual to adjust for 12k annual miles, therfore the vehicle carries a 54% residual.
  • zachisraelzachisrael Member Posts: 1
    hello
    i am in dallas tx and was offered this weekend a lease for es350 with nav package
    36 months 15k , $720 first payment (first month and tax etc)
    monthly is 590
    msrp was around 42500
    sale price was 38300
    are those good numbers?
    thanks in advance
  • philz46philz46 Member Posts: 3
    I just got a price quote on a Tier 1 - Sign N Drive lease on an ES350 from PA dealer. Here are the details:

    List price: $42025, selling price $3799, dealer cost $37930.80
    Cash down $3500
    Inception fee $694.94, excess /equity $2805.06
    Residual value $21853 (52%)
    Mileage adjust $840.50
    Mileage adjust +2%
    Annual miles 12000
    Discount/Buy Rate .001350

    Not having shopped leases in a while, how does this compare?

    Thanks,

    Phil
  • philz46philz46 Member Posts: 3
    I forgot to put in the price $449.49 + 9% lease tax, $489.94.

    Phil
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Great answers, ocautoseeker. It's great to have informed community members like yourself who are able to answer questions for others. Thanks for the help. Keep up the good work ;) .

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  • car2008car2008 Member Posts: 5
    Following is the deal in MA:
    ES350 navi + prem plus + few extras
    MSRP: 42314 (new price this week)
    invoice: 37520
    sale price = invoice price
    no cap reduction
    36mo/12K
    Residual: 23117
    $543 per month (incl 5% tax)

    Is this a good deal?

    Thanks!
  • ocautoseekerocautoseeker Member Posts: 425
    Is the dealer rolling in your 1st mo payment, acquisition fee + dmv fees, or are you paying them at signing?

    Reason I ask: Based on LFS's current numbers, with the numbers you provided, that lease (including tax) should have you at monthly payments of $499.67. Now, if you capped all of the above into your lease payments so that $0 was due at inception, then $543 sounds more reasonable.

    If this is not the case, they probably inflated your rate. Be sure that they are utilizing the base rate money factor of .00125.
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