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2013 and earlier Lexus ES 350 Lease Questions
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Just received a fax of lease numbers from my lexus dealer. Here is the case:
MSRP $44084
Agreed price 43084
Term 36months, 15,000 miles
No money down other than first payment and doc fee of $499 and cash down of $236 (not sure where they got this)
These are the numbers they faxed to me:
Agreed value $43084
Gross capital cost $43719.18 (600 doc. fee+tax+other)
Cap cost reduction $ 236.38
Adj. Cap Cost $43482.80
Residual $25568.72 (58%)
Depreciation Charge $17914.08
Rent Charge $8054.16 (I assume this is MF payment)
Total of base MP $25968.24
Lease term 36
Base MP $ 721.34
Tax 43.28
Total 764.62
QUESTIONS?
1. What money factor are they using?
2. Seems to me that instead of them charging me the depreciation over 36 months they are dividing the Residual value over 36 months and charging me that way. That's incorrect according to what I've learned on this forum. Am I wrong?
3. What is the rent charge of $8054? Is this the money factor payment portion over 36 months? If so, way, way too high - $223/month. Forget it. I calculate about $176.
HELP! I am speaking to the sales manager tomorrow and want to know what I am talking about!!! Aren't they trying to trick me into paying the residual value over 36 months and then tacking on the money factor payment over 36 months which is way too high anyway!!
I would appreciate some feedback ASAP from anyone who can help me to know If I have this right?
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UL Package with Mark Levinson Surround Package, DVD Navigation and Park Assist
36 month lease
15,000 miles
MSRP - 44,286.00
Price - 40,163.00
Cash down - 2,800 (1000 is drive off fees and 1800 buy down. I know some of you frown on putting money down but I rather have a lower monthly payment. They said 1000 buys down approximately 25.00 per month.)
Total Monthly Payment - 600.79
Note: The residual when down to 58% from when I received a quote a month ago from another dealer. After the salesman gave me his first quote today, I showed him that quote and he seemed to have turned pale. He knew he had to match it and went down $138.00 in the payment in one shot. So I feel like that was that was a good move on my part.
Please share your thoughts on this deal.
Can anybody shed some light on this for me????????????
Could you answer the post I just posted? I sure would appreciate it.
Keep me posted.
I am trying to do a little more research for you and see what I can find.
(Sorry I didn't see your desperate post earlier. I was getting all involved in a discussion in the main ES forum. Since this Leasing Forum doesn't get much action, if you need a response immediately, try posting a quick question in the main forum. There are more people there.)
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LEXUS ES 350 at NY dealer
32 months
10K miles
MSRP - $38,379
Neg Price - 36,700 ($1,700 off msrp)
money factor - .00275 (sales guy said it was best around for tier #1 which i am)
residual -69%
Total Cash down - $4,600 (includes, taxes, 1st mo, $2,750 cap cost red, etc).
monthly pmts - $425
..or no cap cost reduction down = $494/month (which seems better, but salesguy was even confused when he was running numbers).
seems like a good deal, but want to be sure before i sign. thanks!
#1 What type of discount can I get off the MSRP?
#2 What money factor should I be getting?
#3 What do you estimate my monthly payment?
thanks for your help.
I will post with details after I lease so that others can use as resource.
Appreciate your help.
ES350 (UL, ML, intuitive parking assist, rear lip spoiler, pref. acc. pkg.):
Lease terms: 36 mos./12K miles (60% residual)
MSRP: $44288
Purchase price: $39963
Cap cost reduction: $333.58
Monthly payment (incl. tax): $619.73
Drive-off: $2000 ($1046.69--which I assume includes acquisition fee, vehicle registration, and other required fees; $619.73 first month payment; and $333.58 CCR--yes I could just not pay the CCR but then my monthly payment will increse to $630.84), w/ no security deposit required.
Unfortunately, my FICO-II Auto score isn't all that hot but the finance guy was willing to grant me a Tier exception which bumped me up (down?) to Tier-2 money factor (0.00325).
Any thoughts on whether the above is a fair lease offer would be greatly appreciated!
Thanks!
In addition to the features in the Premium Package: Rain-Sensing Wipers, Memory Passenger Seat, Driver Seat Cushion Extension, Rear-Side Air Bags, Full Size Spare, Park Assist, Voice-Activated Navigation System with Rear Back-up Camera.
Here's what I got quoted @ the local dealer. Keep in mind sales tax is about 7% here.
$492/month including sales tax
32 months 12,000miles/year,
upfront we pay
up front sales tax 1306
Bank fee 795
DMV plates 295
Bank tax 55
First month 492 total upfront $2941
The salesman said he couldn't get it this low through lfs and went through Hyundai's bank. Anything look fishy about this deal? I've been trying to work it out but without the residual for 32months/12Kyear i couldn't. Looks to me like a selling price around 38K and a money factor around 6%(.00245)??? Any input?
You're in good shape with this car's money factor. Thee factor that you were quoted is right in line with Lexus Financial Services' current buy rate for a lease of this car by a Tier 1+ customer.
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I'm guessing that the "bank fee" might be something similar to the Lexus acquisition fee since you're being financed through a different bank? The "bank tax" appears to be tax on the "bank fee"--amazing how companies find many different ways to assess a tax on just about everything...but in any case, I would venture to think that those numbers seem to be par for the course...except for the up front sales tax which to me doesn't make sense--but again, that might be something that's required in your state/county/city.
The dealer should be able tell you what the residual is for 32/12k, along w/ the MF being applied to your loan; no reason why he wouldn't do so unless he thinks you wouldn't know any better. Don't even consider analyzing that--or any--offer until you and the dealer first agree upon an acceptable selling price...then ask him to provide the residual and MF once he quotes you an offer based on those three factors (selling price, residual, MF). Once you have those figures, only then can you figure out if he's trying to pull the wool over your eyes.
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I can't really comment on the money factor that you were quoted because I am not sure what credit tier you qualify for or what Lexus Financial Services' buy rate money factors are for its lower credit tiers.
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I have been negotiating with a Lexus dealer here in the Pittsburgh area for an ES350. Here is the deal as he presented it to me today:
BASE $33,865
VN (Nav System) $4,050
PT (Premium Plus) $2,480
TOTAL $40,395
ALLOWANCE (-) $589
GRAND TOTAL $39,806
With the features above, it will have to be ordered. To do that, he said that I need to put either $500 down (non-refundable) or $1,000 (refundable).
He also said that if the car cannot be found at another dealer and has to be special-ordered, it will probably take 3 months and the allowance above would be $1,000 (instead of $589).
Using the higher amount, here is the possible financing scenario:
CAPITALIZED COST: $39,806
LEASE TERM: 36 months
ANNUAL MILES: 15,000
MSRP: $40,395
RESIDUAL FACTOR: 58%
RESIDUAL: $23,429.10
DEPREC. PORTION: $16,376.90
ACQUISITION FEE: $600
MONEY FACTOR: 0.00335
SALES TAX RATE: 9% (6% STATE TAX, 3% STATE USE TAX)
PAYMENT: $666.75
SALES TAX: $60.01
TOTAL MONTHLY: $726.76
To drive this off of the lot, I'd need to pay as follows:
FIRST PAYMENT: $726.76
TITLE FEES: $153.50
ACQUISITION: $654.00
DUE ON DELIVERY: $1,534.26
If I put $1,000 down (Cap Cost Reduction), my monthly payment becomes $692.83.
My questions:
1) How fair is this deal?
2) My credit rating puts me in Tier 1. Isn't the Money Factor he quoted a little high?
3) As this is a new model, how much more $ do you think I can get out of the deal?
4) Since this is my first time considering a lease, I was a little surprised by the fact that if I try to trade in my Honda Accord, the amount they would give me would be cut as a check to me, instead of coming off of the Capitalized Cost of the car (which would make the monthly payment a lot more reasonable). Is this correct?
5) The ACQUISITION FEE: in one part, it's $600. In another, it's $654. Why the delta? Also, is this something that I can negotiate out of the deal?
Thank you!
1) I'm not familiar w/ how much of a great deal one might be able to get if the vehicle has to be ordered, but FWIW a max $1000 allowance isn't a whole lot, even if the vehicle is a PP vs. UL. I was able to get $4300 off MSRP on a near-loaded UL, so IMHO it's not farfetched for you to try to knock off a bit more off their selling price.
2) That does sound a bit too high, based on Tier 1 MF of approx. .00265 I've seen posted here...along with fact that the MF--which in my case is a Tier 2--on my lease is lower than the one you mentioned. Are you positive that you're Tier 1? I ask because I thought I was close to being Tier 1...until I discovered that auto lenders use what's called a FICO-II score to determine creditworthiness when it comes to installment loans. Needless to say, my FICO-II score was somewhat lower than my FICO score...thus I could only qualify for a Tier 2 MF.
3) See my response to #1 (above); again, I reckon that one might be able to get a larger discount based on which level of trim (PP vs. UL).
4) Dunno why it's done that way, other than perhaps because you own the Accord outright?
5) My guess is it looks like they applied sales tax to the Acq. Fee; maybe it's required in your state? I'll have to double-check my documentation but I'm fairly certain that the finance guy didn't apply CA sales tax to my acq. fee.
Wow...that 9% sales tax does affect your monthly payments pretty bad...
Thank you very much for your insights. Yes, the sales tax is a killer -- but, such is life here in PA. ;-)
Does anyone else here have any thoughts about the whole "trade in on a lease" question that I have? I'd like to make a decision on this asap, but would love to hear from others who have been through this.
Thanks!
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If you have a vehicle that you have equity in that you can trade in you actually would be better off having the dealership that you are working with cut you a check for it instead of using the proceeds from your trade as a capitalized cost reduction for your lease. Consumers who make cap cost reductions risk losing them if their vehicle is totaled in an accident or stolen.
Lexus Financial Services' current base lease acquisition fee is $600. This fee is set by LFS and all consumers who lease have to pay it. I'm not sure why it was $50 higher in one part of the quote you were given.
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Do you have the Lexus Residuals and Money Factors for a 2007 ES350 (premium and nav) for a 15k lease for 36 months?
Also, any word on when December to Remember will come out?
Thanks,
Mike
I am confident that that is at least close to the best you can do in Atlanta because everyone was willing for me to walk away below that number. Every dealer said they had a very small selection of cars available for sale most were coming in presold.
What did you agree upon for purchase price?
Did you put any additional money down outside of first payment and security deposit?
What was the money factor and residual? Also, how long of a term are you leasing for? How many miles a year?
Thanks!
Not sure about money factor...sorry...I was negotiating based on Payment and so was not managing the money factor variable.
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** For every $500 reduction in price (all else constant), the monthly payment drops by approx $15
** For every $500 (or 2%) INCREASE in RV, the payment drops by approx $12
** For every 0.0001 decrease in the money factor, the payment drops approx $6
Hope this is helpful. For me, I'm trying to focus more on negotiating the top line. I'm hesitant to allow them to jack up the residual value, since some lease agreements are open-ended. In that case, you would be stuck with the delta between the actual price in 3 yrs (vis-a-vis the negotiated RV).