Lexus Finance Advice
03-13-08, 03:17 PM
#18
Lexus Test Driver
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03-13-08, 03:19 PM
#19
I don't know how low the prices go since it's not the end of the year but if you can pull of the MF and prices close to the ones available in December it's a good deal. The residuals are the same from the DtoR sale. Pricing varies of course, at the end of december people were getting close to invoice. I would consider $2000 above invoice or below a good price.
03-13-08, 04:35 PM
#23
Lexus Test Driver
I can't comment on finance through Lexus but for your reference here is how I did mine.
1. Determine how much $ to borrow
2. Get a check for that amount from E-Loan or others (I got for 4%) before buying the car
3. Pay off the car at Lexus
you can stop here if 4% is good for you.
4. Many credit cards offer 0% & ~ 1 year deal to transfer balance, you pay $75 to $99 for transfer fee one time. Repeat it the next year and after.
It could easily save $4000 on a 5% 60 months deal for 30K loan. This does not suit everyone and some people may not even care about $4K, but it's a good reference to save $.
1. Determine how much $ to borrow
2. Get a check for that amount from E-Loan or others (I got for 4%) before buying the car
3. Pay off the car at Lexus
you can stop here if 4% is good for you.
4. Many credit cards offer 0% & ~ 1 year deal to transfer balance, you pay $75 to $99 for transfer fee one time. Repeat it the next year and after.
It could easily save $4000 on a 5% 60 months deal for 30K loan. This does not suit everyone and some people may not even care about $4K, but it's a good reference to save $.
03-13-08, 04:50 PM
#24
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I can't comment on finance through Lexus but for your reference here is how I did mine.
1. Determine how much $ to borrow
2. Get a check for that amount from E-Loan or others (I got for 4%) before buying the car
3. Pay off the car at Lexus
you can stop here if 4% is good for you.
4. Many credit cards offer 0% & ~ 1 year deal to transfer balance, you pay $75 to $99 for transfer fee one time. Repeat it the next year and after.
It could easily save $4000 on a 5% 60 months deal for 30K loan. This does not suit everyone and some people may not even care about $4K, but it's a good reference to save $.
1. Determine how much $ to borrow
2. Get a check for that amount from E-Loan or others (I got for 4%) before buying the car
3. Pay off the car at Lexus
you can stop here if 4% is good for you.
4. Many credit cards offer 0% & ~ 1 year deal to transfer balance, you pay $75 to $99 for transfer fee one time. Repeat it the next year and after.
It could easily save $4000 on a 5% 60 months deal for 30K loan. This does not suit everyone and some people may not even care about $4K, but it's a good reference to save $.
i like saving money! ill bargain for hours to get 10 bucks off! great info!!
03-13-08, 04:53 PM
#25
If they were revised what are the current residuals at 12k and 15k. During the DtoR, it was 51% and 49%.
03-13-08, 07:18 PM
#26
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03-13-08, 09:39 PM
#27
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Join Date: Mar 2004
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JJ is a finance guy with Lexus, but he's in the SE. His rates & terms are prolly not the same for us in SoCal, so it's wouldn't be appropriate for him to post in a thread...
03-14-08, 03:26 AM
#29
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If you have the cash, look into an upfront/one time lease. Call a dealer and have them detail it out for you, but basically you pay a 36 month lease all at once. You can save some serious cash doing this. A friend of mine will save about $4k+ on 36 month lease doing this. Quite the deal.
Here's a general rundown of his situtaion: he wants to buy an IS350 outright, and he has the $45k in cash to do so. But why part with that much cash if you can make it work for you? Lexus dealer gave him the great option to do an upfront lease, even though the plan is to buy the car when the 3 years expires.
- MSRP on the loaded IS350 is $45k. He negotiated it down to $39k.
To purchase outright now:
- MSRP $39k + 7.72% sales tax + fees = @ $42.5k
To do an upfront lease now, then purchase in 3 years if he wants to:
- Pay $18.5k now + $25k in 36 months = @ $43.5k. That works out to a 3 year loan with $1k interest total. Wow. That's an awesome deal. Impossible to get an interest rate so low these days that it amounts to $333 in interest/year. Not that he needs the loan, but even with his credit score over 800 no bank can touch that kind of rate today. On top of that, he will take the $25k that he already has, and lock it into an interest bearing account for 3 years. That's another $3-4k in savings. Then in 3 years, he pays the remaining $25k on the deal if he still wants to keep it, or he can turn the car in and walk away. The lease portion of this deal works out to around $515/mo, vs. the traditional lease option he was offered, which comes in around $625/mo. As is the plan, if he does buy it in 3 years he ends up paying:
- $43.5k minus $3-4k in interest = $40k total. Wow!
I can't think of a better way to do this deal. Not sure if all Lexus dealers offer this option, but it's worth seeking out. To me traditional leasing is a waste of money, but not this kind of lease. This kind of lease, as long the money factor is right, and you have the cash, is a wise financial decision.
Here's a general rundown of his situtaion: he wants to buy an IS350 outright, and he has the $45k in cash to do so. But why part with that much cash if you can make it work for you? Lexus dealer gave him the great option to do an upfront lease, even though the plan is to buy the car when the 3 years expires.
- MSRP on the loaded IS350 is $45k. He negotiated it down to $39k.
To purchase outright now:
- MSRP $39k + 7.72% sales tax + fees = @ $42.5k
To do an upfront lease now, then purchase in 3 years if he wants to:
- Pay $18.5k now + $25k in 36 months = @ $43.5k. That works out to a 3 year loan with $1k interest total. Wow. That's an awesome deal. Impossible to get an interest rate so low these days that it amounts to $333 in interest/year. Not that he needs the loan, but even with his credit score over 800 no bank can touch that kind of rate today. On top of that, he will take the $25k that he already has, and lock it into an interest bearing account for 3 years. That's another $3-4k in savings. Then in 3 years, he pays the remaining $25k on the deal if he still wants to keep it, or he can turn the car in and walk away. The lease portion of this deal works out to around $515/mo, vs. the traditional lease option he was offered, which comes in around $625/mo. As is the plan, if he does buy it in 3 years he ends up paying:
- $43.5k minus $3-4k in interest = $40k total. Wow!
I can't think of a better way to do this deal. Not sure if all Lexus dealers offer this option, but it's worth seeking out. To me traditional leasing is a waste of money, but not this kind of lease. This kind of lease, as long the money factor is right, and you have the cash, is a wise financial decision.
Last edited by spiralynth; 03-14-08 at 03:35 AM.
03-14-08, 06:37 AM
#30
Pole Position
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[QUOTE=spiralynth;3358751]If you have the cash, look into an upfront/one time lease. Call a dealer and have them detail it out for you, but basically you pay a 36 month lease all at once. You can save some serious cash doing this. A friend of mine will save about $4k+ on 36 month lease doing this. Quite the deal.
What happens to his $18k if the car is totaled?
What happens to his $18k if the car is totaled?