Why Does Lexus Have The Worst Leases?
07-30-08, 10:01 AM
#1
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Why Does Lexus Have The Worst 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???
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???
07-30-08, 10:06 AM
#3
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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???
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???
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.
07-30-08, 10:17 AM
#4
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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???
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???
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.
07-30-08, 10:32 AM
#5
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???
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.
07-30-08, 10:37 AM
#6
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.
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.
07-30-08, 11:36 AM
#7
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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.
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.
I'm getting an E230 tomorrow! New company car.
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07-30-08, 12:16 PM
#9
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.
07-30-08, 12:59 PM
#10
Depends of your market.. Here are the deals now for Lexus cars from my local dealer..
http://www.lexusofrvc.com/AboutSpecials
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
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
07-30-08, 01:30 PM
#11
Lexus Test Driver
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.
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.
Maybe less then great credit.
And or just bought at the wrong time..............
07-30-08, 01:44 PM
#12
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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?
07-30-08, 03:40 PM
#14
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?
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?
Since I lease cars, once I trade my GS in next year I'm going with a German one.