lesz

There is no doubt that, as we go through the next couple of months, the selection of colors, packages, and options will become more limited. From looking at the dealer inventories that I checked, it looks like Ultra Luxury package ESs, which are never available in large numbers, are becoming somewhat difficult to find. And I'm confident in guessing that the dealers are already trying seriously to pare down their inventories of the 2018 ES in the hope of getting the numbers of them down to almost nothing by the time the 2019 Generation 7 ES hits their lots.

Albo

Dont wait. Shopping for a car is exhausting. Like someone said, saving $500-$1000 extra by waiting few more weeks just to settle for a 2nd place car is not worth it. Grab the one you want for what is a good deal for YOU. No one knows your finances better than you(hopefully). You dont ever want to doubt it later being in that second place car you waited for.

Dmaxdmax

lexus1357

MF is 0.00001 and depreciation at 47%. Mileage is 36 mo/10k. and the lease payment offered is $338 without tax. Driveoff is around 2k and seems to mostly cover the first month and a bunch of fees.
I have a basic question on lease since i havent leased before. If the MF is 0.00001, does that mean i am paying next to nothing on interest for the lease.
As i understand the money that i will be paying on interest for the lease is MF*(price+residual)*36. That seems to be a miniscule amount. what am i missing?

lesz

The .0001 money factor translates into an interest rate of .24%.

jollick

Congratulations!

yeskay

lexus1357
what are the options package(s) in the vehicle that you leased.

lexus1357

I havent leased yet. I have a quote for premium package only.

lexus1357

So, the interest i will pay is almost nothing right. As i understand, the total interest paid is (adjusted price+residual price)*MF per month. Assuming adjusted price is 33k and residual is 20k, it would mean 53000*0.00001*36=$19. It doesnt seem right. am i making some mistake somewhere. if interest rate is so low, doesnt lease make sense as opposed to buying considering that lease has $5500 cash vs $4000 for buying.

lesz

Yes, you are correct in saying that, with a .0001 money factor, the monthly interest that you will be paying will be minimal. However, whether you are paying that interest on the full purchase price of the vehicle or only on the difference between the purchase price and the residual can vary, depending on your state laws. I believe that, in most states now, interest is paid only on the difference between the purchase price and the residual, but some state laws still allow calculation of the interest based on the full purchase price of the car.

Be aware that leases generally have fees associated with them that would not be a part of a purchase. Typically, there might be an acquisition fee at the beginning of the lease and a disposition fee at the end of the lease. Depending on what those fees are, they might well offset most/all of the additional $1500 incentive that Lexus is offering for leases over the incentive for purchases.

If you are considering doing a lease, you should also be careful about the mileage allowance. A 10,000 mile/year mileage lease is considered to be a low mileage lease, and the terms of the lease likely call for having to pay a high excess mileage charge for miles that you drive beyond the 10,000 miles/year. Those charges are probably between $.25 and $.30 per mile, which is about 3 times greater than what would be the reduction in the residual value for a higher mileage lease. Thus, if you do a 10,000 mile/year lease and if there is significant chance that you will be driving much more than 10,000 miles per year, it makes sense to be prepared, at the end of the lease, to buy the car, instead of turning it in so that you can avoid the excess mileage charge.

DruLaw

new to the forum. Hello all.
Have a quote from a dealership on a lease. Will pay for my last 2 payments on my Infiniti. $1300 up front which is inception and first payment. Then $390 per month. MSRP is $41,000. Thoughts? Thanks!

lexus1357

Thanks for your response.

nmd

Hi Lesz,
I am ready to buy and I have received following offer from dealer in Dallas, TX. I have also received worksheet & VSpec from the dealer.
New 2018 Lexus ES 350 with Luxury PKG. Atomic Silver/ Black
MSRP: $46009
Price: 36,590
OTD Price: 39,300 (Texas Tax: 6.25 % $2287, Doc. Fee: $150, inventory Tax: $83 and Title, Lic., Reg. fee, Inspection: $190 included)

Please advice. Thank you.

lexus1357

Hi
I have been offered the following for ES 350. My question is if destination charge $995,acquisition fee $795 and license fee $395 are all valid charges for a lease. The first month's payment is included in the $2000 drive off. I am wondering how tax of 460.82 is calculated. We are in an area with 9.25% sales tax.

Monthyl payment for 36 mo/10k :350 ( includes tax) and cash down $2000 which includes first month's payment

MSRP 38900
Destination Charge 995
Misc Charges 150
Total Price 38900
Adjusted Price : 30,072.00 (after discounting for 4400 and 5500 lease cash)

Residual 47%
MF : .00001

Tax 460.82
Acq Fee (Cap) 795.00
Acq Fee (UPFT) .00
License Fee 395.00
CA Tire Fee 8.75
AVRS 29.00
AVRS 29.00
CA Tire Fee 8.75
Registration 46.00
CA TIF 150.00

lesz

Your discount appears to be 20.5% off from MSRP. Note only does the discount look good, but the other charges, including the Doc fee don't appear to be excessive. As I said in an earlier post, I suspect that, around Labor Day, the incentives that Lexus offers to dealers might be a little bigger than they are now, and, at that time, you might be able to do a little better, but, by then, selection of colors, options, packages, etc. for the 2018 ES will likely be getting low.

Assuming that there are no other add-on charges and that the 46,009 MSRP doesn't include any high mark-up dealer add-ons, I wold be inclined to go with the deal, but, before agreeing, I'd do one more thing. For me, there is value in paint protection film, and my buying strategy includes leaving the paint protection film to be the final item to be negotiated before completing a deal. I would want a complete paint protection film package, including the full front bumper, full hood, full front fenders, mirrors, door cup handles, door edges, and possibly A pillars. I'm guessing that the dealer's advertised price for such a package would be somewhere between $2000 and $2400. I would ask the dealer what they could do for me with regard to such a paint protection package, and, if they come back with a number somewhere between $1000 and $1200, I would close the deal. If you can get the paint protection film package for that kind of money, not only are you getting the benefit of good protection for the car at a price lower than you would likely pay at a local trim shop, but you will be driving out of the dealership with the car protected, and you will not be having to arrange for the film to be applied at a later time, or have to risk getting any paint chips before the film is applied.