My friend is getting a brand new M-B E350 for about the same as I'm paying on my ES350 ($664/month UL all fees and taxes rolled into the lease).

This is simply outrageous.

I thought the biggest part of a lease's determination was what the car was worth when you turn it back ("residual value"). Well the ES350 depreciates less than about any car on the road.

Why the hell are the leases so awful dollar for dollar when compared with the Germans???

IIRC, the Germans subsidize their leases.

My friend is getting a brand new M-B E350 for about the same as I'm paying on my ES350 ($664/month UL all fees and taxes rolled into the lease).

This is simply outrageous.

I thought the biggest part of a lease's determination was what the car was worth when you turn it back ("residual value"). Well the ES350 depreciates less than about any car on the road.

Why the hell are the leases so awful dollar for dollar when compared with the Germans???

Actually, Lexus just released a new lease deal for the ES, $399 a month with $3500 down. That is NATIONWIDE. The dealer should know about that. Traditionally the ES/RX and IS 250 have lease deals.

As for the rest of their leases, its very short term management to sell cars based on a low lease price. We are now seeing the trouble some car companies are having with this.

My friend is getting a brand new M-B E350 for about the same as I'm paying on my ES350 ($664/month UL all fees and taxes rolled into the lease).

This is simply outrageous.

I thought the biggest part of a lease's determination was what the car was worth when you turn it back ("residual value"). Well the ES350 depreciates less than about any car on the road.

Why the hell are the leases so awful dollar for dollar when compared with the Germans???
Residual/resale values are projections, & it may not be realized as projected, & if you saw the latest threads regarding lower resale values of cars, many manufacturers probably get burnt with the great lease deals that they gave out a few years ago. Leasing cars in huge volumes means the manufacturers still carry a lot of risks on the resale value.

I think Lexus policy is probably that they really want to SELL the car rather than leasing them out, so they don't carry the risks on the resale values anymore. They are more oriented to making real guaranteed profits in the long run rather than just "selling" as many cars as possible using great lease deals.

My friend is getting a brand new M-B E350 for about the same as I'm paying on my ES350 ($664/month UL all fees and taxes rolled into the lease).

This is simply outrageous.

I thought the biggest part of a lease's determination was what the car was worth when you turn it back ("residual value"). Well the ES350 depreciates less than about any car on the road.

Why the hell are the leases so awful dollar for dollar when compared with the Germans???


Because, like you said, the residual/resale values on Lexuses are much higher than the German brands.

the biggest factor right now is the E 350 is going to be re-designed that is why your friend got such a great deal on his lease rate!

Wait till the new E classes come out and see what their lease rates will be like

Your ES is new body style.
Your Friend's E Class is the old body style which will be changed rather shortly.

the biggest factor right now is the E 350 is going to be re-designed that is why your friend got such a great deal on his lease rate!

Wait till the new E classes come out and see what their lease rates will be like

Your ES is new body style.
Your Friend's E Class is the old body style which will be changed rather shortly.


Exactly what I was thinking. :thumbup:

I'm getting an E230 tomorrow! New company car. :woot:

Because Lexus really doesn't need crazy lease deals in order to move their cars...

Because, like you said, the residual/resale values on Lexuses are much higher than the German brands.


I'm not a lease expert, but wouldn't a high residual value make the lease cheaper?? You're only paying the depreciation, and if it's not depreciating, then you shouldn't be paying as much???

I'd guess it's more related to lexus financial not giving a low Money Factor (interest rate for leases).

I've never looked into a Lexus lease.

Depends of your market.. Here are the deals now for Lexus cars from my local dealer..

July Lease Specials*

2008 IS250
$359/month for 36 months
$359 First Month Payment
$600 Bank Fee
$0 Security Deposit
$2500 Down Payment
$3459 Due at Signing

2008 ES350
$399 /month for 36 months
$399 First Month Payment
$600 Bank Fee
$0 Security Deposit
$2500 Down Payment
$3499 Due at Signing

2009 RX350
$449 /month for 36 months
$449 First Month Payment
$600 Bank Fee
$0 Security Deposit
$2500 Down Payment
$3549 Due at Signing

2008 GS350
$599 /month for 36 months
$599 First Month Payment
$600 Bank Fee
$0 Security Deposit
$2500 Down Payment
$3699 Due at Signing

2008 LS460
$849 /month for 36 months w/10K Miles Per Year
$849 First Month Payment
$600 Bank Fee
$0 Security Deposit
$3500 Down Payment
$4949 Due at Signing
http://www.lexusofrvc.com/AboutSpecials

the biggest factor right now is the E 350 is going to be re-designed that is why your friend got such a great deal on his lease rate!

Wait till the new E classes come out and see what their lease rates will be like

Your ES is new body style.
Your Friend's E Class is the old body style which will be changed rather shortly.

All that and he rolled everything into the lease which could be $100\month more.

Maybe less then great credit.

And or just bought at the wrong time..............

Because, like you said, the residual/resale values on Lexuses are much higher than the German brands.

So if the residual value is higher, you should pay less for the lease, right?

What you're paying for is the use of the car during that time period and any depreciation. So my point is that Lexus' depreciate LESS than most other cars so their leases should be lower, not higher on a dollar for dollar basis (based on the MSRP of the car). Instead, you get "more car" from the Germans when you lease and their cars depreciate more.

So that makes no sense.

See what I mean?

we got quoted the same when we wanted to lease a es ul, apperently the ul package adds like 200 to the lease so instead we just got the rx, although i really wanted the es

So if the residual value is higher, you should pay less for the lease, right?

What you're paying for is the use of the car during that time period and any depreciation. So my point is that Lexus' depreciate LESS than most other cars so their leases should be lower, not higher on a dollar for dollar basis (based on the MSRP of the car). Instead, you get "more car" from the Germans when you lease and their cars depreciate more.

So that makes no sense.

See what I mean?

Exactly..Lexus leases never made sense. I think Lexus does this on purpose so they make you buy their cars instead of lease them! If leasing go with with a German..if buying go with a Lexus!

Since I lease cars, once I trade my GS in next year I'm going with a German one.

GUys, you missed the part where the Germans subsidize the leases, to the point where BMW in Germany is very alarmed at the lease rates and offers in America.

Wow, 664/moth! I guess it has to be a NY thing.

Interesting, the leases in Florida for Mercedes or BMW's are always more expensive than a Lexus. Given similar prices for the vehicle.

In my case, I could never lease a BMW 330 for anywhere close to what I got my lease on the IS.
I would have been paying more for a BMW 328 than what I pay for an IS350.

Because, like you said, the residual/resale values on Lexuses are much higher than the German brands.

That's not true.

It could also be that Lexus does not want to flood the market with their cars and in turn lower the resale value.

It could also be that Lexus does not want to flood the market with their cars and in turn lower the resale value.

That too. Lexus is in it for the long haul and never meant to be the sale champ.People were so happy with the product they did become it and have held that title. I think BMW/Benz are doing anything they can to wrestle that title away, thus short term strategy.

The 7 series NEVER had a lease deal or discounts until this current model for example.

The 7 series NEVER had a lease deal or discounts until this current model for example.

Actually they had some pretty sweet deals on the 2001s near the end....

and let's also not forget that a 745/750 costs significantly more than the old 740. Leases are often required on cars costing $85K or more - when Lexus gets some traction up in this area (yea, that's a dig, because I bet that most LS460s are below that amount), they will offer better deals as well (of course they have some pretty significant lease deals on the LS460 as it is).