Fizzboy7

I went to the dealer last week to see what Lexus was offering for APR's. My IS lease is up next month and I've been shopping around rates. The lowest I found was Lockheed Credit, with Lexus a half point higher. When I was at the dealer, it was made appearant whatever Lexus's rate was, that was it. So after an hour of talking, I walked. Then this afternoon I get a call from the sales manager asking me if I was ready to buy a car. I told him I was not at the dealer to buy a car, but was at the dealer to buy out my lease (he was clueless I guess). He asked how did that go and I told him I passed because I had found a lower rater. He asked which rate, I told him, and then he responded with, "what if we matched it?" I was shocked to hear that, as I wasn't aware Lexus Financial's rates were nogotiable, plus no one at the dealership in the hour we talked to them mentioned the rate could be tweaked. It was a take it or leave it choice.
So is this BS? If not, how can the dealer offer a flexible APR when it's all pre-set through Lexus Financial? Lastly, if they could match Lockheed's rate, would there be any advantage chosing one over the other?
I'd appreciate any insight.
(Moderators please move this if need be.)

Big Mack

iTrader: (1)

Maybe they don't have to do the buyout through Lexus financial and have another lending institution that will match the rate.

I would be very cautious in choosing, as you want to ensure they are donuts for donuts matches. If the terms are the same, it's simply your call.

I'm sure if they want the business and to keep you as a customer toting around their plate or ID on the car, they can find a way to make it work and it's amazing what walking away can do as far as your bargaining power. I am always prepared to walk if the terms are not favorable or even as favorable as I think they should or could be. I have walked on deals while sitting to finish the financing because the person from finance said something other than what I was told. I calmly asked for the paperwork with my contact and personal information on it, and proceeded to take it with me.

Bottom line - you're the customer. If he's willing to make amends, ask for an even better rate than the Lockheed rate. Even if it 0.25% less, it's better.

Big Mack

bagwell

nothing is preset....if they want to match or beat the rate, give them them opportunity - and if they do its usually much easier to use the dealer financing - if they don't match it use your own....but trust me, they'll meet or beat it.

also note that the residual prices are usually negotiable.

KLF

Make sure to read the paperwork carefully, and they aren't adding hidden things on to make them some money. Stuff like extended warranties, life insurance, etc.

RX300-BV

Keep in mind that the dealerships will have plenty of financing options like you do. If the Lexus Financial rate is higher, they may find another lender who is willing to match your rate and terms. Bring to a dealer your best legit rate, more often than not, they will match the APR and terms and occasionally beat them.

Evitzee

I bought an RX350 in November. Had a previous Lexus Financial loan, perfect payment, and an 800 FICO score. Finance guy set me up with a local credit union at 3.5% which was lower than what he could get with Lexus Financial. Lexus is not always the best rate and almost all dealers have other options. I imagine they like to place you with Lexus (better $$ for them), but if they are aggressive they can often do better. Just ask.

Fizzboy7

Very interesting. I had no idea the rates were somewhat negotiable. Or at least the dealer could dig into some options and find a lender with a lower rate. What was odd was they did not once offer to meet or beat the rate I brought to the table. It was like they didn't care. When I get that type of attitude, it makes me not want to try with them. Then I got that phone call later from the sales manager sounding more aggressive.
I'll mention all of this to my dad and see if we want to head back to the dealer (he was the one doing all the math). I rather finance the car with them or Lexus if possible. I was also thinking of asking the dealer to beat the APR rate and throw in a free oil change or two. I'd be happy with all of that if they are interested in keeping my business.

bagwell

sounds like you have a grasp of how things work now.

Its pretty simple - if the dealership won't meet or beat the rate, don't use them.

...and I'll repeat - the purchase price of the car after your lease is up is usually negotiable unless the residual price is already crazy low. I'm not positive this is true with Lexus Financial leases, but I know it is with other lease co's so its worth a shot.

Fizzboy7

Yes, the residual price is crazy low already. I think this is likely the case with many IS lease returns. Lexus underestimated the longterm value.