So Are you LEasing Or Buying - Lexus Lease Factors Suck
08-08-06 | 02:12 PM
#1
Thread Starter
Rookie
Joined: Jul 2006
Posts: 76
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From: FL
So Are you LEasing Or Buying - Lexus Lease Factors Suck
Whats the deal with Lexus Residuals and MOney Factors.. not the best at all.
They don't compare to Mercedes or BMW at all and should.
A 40k is350 should be tops 550 a month with 1500 down. with the low residuals and high omney factors people arent doing well.
Im almost consdering buying this sucker... although I hate buying depreciating assets... espcially since I'll have a new one in 3 years tops...
Anyone here happy with the lease they got?
They don't compare to Mercedes or BMW at all and should.
A 40k is350 should be tops 550 a month with 1500 down. with the low residuals and high omney factors people arent doing well.
Im almost consdering buying this sucker... although I hate buying depreciating assets... espcially since I'll have a new one in 3 years tops...
Anyone here happy with the lease they got?
08-08-06 | 02:22 PM
#2
Im happy with my lease..........its through wells fargo, 15k a year 500 a month for 60 monthes.
I dont plan on keeping the car that long, but since its through wells fargo i believe there is a 300.00 fee to buy me out of my lease at any time which is a nice option to have. i dont usually keep my cars longer then two years
I dont plan on keeping the car that long, but since its through wells fargo i believe there is a 300.00 fee to buy me out of my lease at any time which is a nice option to have. i dont usually keep my cars longer then two years
08-08-06 | 02:36 PM
#3
i am happy with my lease too...
I didn't pay anything and drove the car out from the lot, 11.5K miles/year $575 with tax for 63 months...that also includes my big time upside down from my 2 previous cars. I am planning to keep the car anyway. I don't really care about my milage/ year tho.
I didn't pay anything and drove the car out from the lot, 11.5K miles/year $575 with tax for 63 months...that also includes my big time upside down from my 2 previous cars. I am planning to keep the car anyway. I don't really care about my milage/ year tho.
08-08-06 | 02:40 PM
#4
that is an intresting lease term 11.5 per year..........
wells fargo actually does leases up to 50k a year for people who lease there cars for business, i think alot of people dont know that you can tailor the lease to meet your needs, you pay for it either way......might as well benifit you.
wells fargo actually does leases up to 50k a year for people who lease there cars for business, i think alot of people dont know that you can tailor the lease to meet your needs, you pay for it either way......might as well benifit you.
08-08-06 | 04:19 PM
#6
MultiTasking Mom
Joined: Mar 2003
Posts: 1,662
Likes: 2
From: California
wow, 60 month leases 
lexus lease rates do suck right now. i am comparing it to Audi which is much much better. the thing that drives me nuts is the residual. audi residuals are a few percentage points higher for the same mileage, and the current A4 is scheduled for redesign in 2 years whereas the IS is still "fresh".
i don't know what is up with that, but i sometimes think the fact that there is such a huge markup by lexus over invoice means that ultimately the true market value of the car is lower than other carmakers where the invoice and MSRP difference is much less.
in any case, i guess it all goes back to supply and demand. they don't need much to entice customers to get their cars, so they can go with current market rates. the money factor i got recently was .00265 which supposedly is a Golden Opportunity Encore LFS rate. audi is almost 2% APR equivalent better...
lexus lease rates do suck right now. i am comparing it to Audi which is much much better. the thing that drives me nuts is the residual. audi residuals are a few percentage points higher for the same mileage, and the current A4 is scheduled for redesign in 2 years whereas the IS is still "fresh".
i don't know what is up with that, but i sometimes think the fact that there is such a huge markup by lexus over invoice means that ultimately the true market value of the car is lower than other carmakers where the invoice and MSRP difference is much less.
in any case, i guess it all goes back to supply and demand. they don't need much to entice customers to get their cars, so they can go with current market rates. the money factor i got recently was .00265 which supposedly is a Golden Opportunity Encore LFS rate. audi is almost 2% APR equivalent better...
08-08-06 | 09:24 PM
#7
Pole Position
Joined: Aug 2002
Posts: 228
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From: Florida
You mean money factor or residual?
And they suck, dunno...but I got a .64 residual with Lexus Financial....and that is a hell of a residual.
Comparing to the the 330/325 that was looking for as well, it was a higher money factor. The 325 was .55 at the time, and 330 was .57. BTW, both cars were more money than my IS.
The money factor was also tops with lexus financial, .00245 I think it was....I would need to check my lease.
And remember this was back in February when the car was hot.
And they suck, dunno...but I got a .64 residual with Lexus Financial....and that is a hell of a residual.
Comparing to the the 330/325 that was looking for as well, it was a higher money factor. The 325 was .55 at the time, and 330 was .57. BTW, both cars were more money than my IS.
The money factor was also tops with lexus financial, .00245 I think it was....I would need to check my lease.
And remember this was back in February when the car was hot.
Last edited by meteoro; 08-08-06 at 09:33 PM.
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08-08-06 | 09:34 PM
#8
Driver School Candidate
Joined: Aug 2006
Posts: 23
Likes: 0
From: CA
Man I got ripped off.... my lease is 680 for 3 years and 30,000 miles... and I traded in my 04' RX 330 for only 22,200!!! 
I couldnt get the monthly any lower because just ten days before I went to get my car, my parents got my brother one for 740 a month... AHHH SO STUPID AND SO MAD!!!!!!!! 
I couldnt get the monthly any lower because just ten days before I went to get my car, my parents got my brother one for 740 a month... AHHH SO STUPID AND SO MAD!!!!!!!!
08-09-06 | 02:32 AM
#9
Driver School Candidate
Joined: Aug 2006
Posts: 6
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From: O-VL
Leasing a IS220D
4 years, 35.000km/yr ( = 21,748 US miles/yr)
IS220D + ML package + 17" alloys
Full operational lease (maintenance, tires, insurance, taxes, ... everything except diesel included).
Purchase price would be approx. eur 34.500 incl. VAT (= $44,386)
Costs me EUR 850 a month incl. VAT (= $1,094)
p.s. if this is a positive experience, think i will buy the next one in 4 years
4 years, 35.000km/yr ( = 21,748 US miles/yr)
IS220D + ML package + 17" alloys
Full operational lease (maintenance, tires, insurance, taxes, ... everything except diesel included).
Purchase price would be approx. eur 34.500 incl. VAT (= $44,386)
Costs me EUR 850 a month incl. VAT (= $1,094)
p.s. if this is a positive experience, think i will buy the next one in 4 years
08-09-06 | 06:03 AM
#10
Rookie
Joined: Apr 2006
Posts: 57
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From: ON
I am very happy with my lease. I am in Canada so i will try my best to convert everything to US measures. I am paying roughly $545 US with tax (We pay 14% tax). I have 15000 miles a year and paid $5700 US down including delivery and everything else as well as $4000 for a security deposit (which i will get back) with a 48 month term. I plan to buy it out at the end and for some reason, I will end up paying less in the end than financing it from the very beginning.
08-09-06 | 06:07 AM
#11
Driver School Candidate
Joined: Dec 2005
Posts: 27
Likes: 0
From: CA
Originally Posted by meteoro
You mean money factor or residual?
And they suck, dunno...but I got a .64 residual with Lexus Financial....and that is a hell of a residual.
Comparing to the the 330/325 that was looking for as well, it was a higher money factor. The 325 was .55 at the time, and 330 was .57. BTW, both cars were more money than my IS.
The money factor was also tops with lexus financial, .00245 I think it was....I would need to check my lease.
And remember this was back in February when the car was hot.
And they suck, dunno...but I got a .64 residual with Lexus Financial....and that is a hell of a residual.
Comparing to the the 330/325 that was looking for as well, it was a higher money factor. The 325 was .55 at the time, and 330 was .57. BTW, both cars were more money than my IS.
The money factor was also tops with lexus financial, .00245 I think it was....I would need to check my lease.
And remember this was back in February when the car was hot.
08-09-06 | 07:26 AM
#13
Pole Position
Joined: Mar 2006
Posts: 224
Likes: 0
From: OH
60 and 63 month leases??? That's crazy.
I did a 36 month lease on a VW and it was 12 months too long. And you think you can get out of it easily? Even if you are not upside down, they don't just transfer from a Lease to another person who is buying it out for a fee. The Leasee will be required to buy the car, pay the sales tax to register and turn around and sell it private party. Even if you turn around and sell the next day, you'll be on the hook for tax. You can't get around the tax easily. Some people who have a family member at the dealership will let a Lease Buyout go through to a 3rd party, but good luck with that if you don't have an inside track.
Not sure on how lexus is with terminating leases, but you'll probably have to get into another Lexus and eventhough it may not really be a problem/hassle, you know that somewhere Lexus will be making more money and you'll be losing it. If you could get out of leases so easily, don't you think everyone would lease for 60 months and jump in a new car in 24 months all while paying super low payments?
On our VW lease for 36 months, the payments would have been about the same if we just bought the car and paid for it over 60 months. We checked into turning it in early but it was such a hassle as I mentioned above, that the car sat in my garage for a year an a half because it was cheaper than the tax and all the hassles selling the car myself. Turned the car in with 13k miles on a 3 year lease. Still had the new car smell. Lesson learned!
Financed my purchased 250 with no money down for 60 months at $607 a month (paid the tax straightup, not rolled into financing). Leasing would have been just over $100 cheaper a month, no way...
I did a 36 month lease on a VW and it was 12 months too long. And you think you can get out of it easily? Even if you are not upside down, they don't just transfer from a Lease to another person who is buying it out for a fee. The Leasee will be required to buy the car, pay the sales tax to register and turn around and sell it private party. Even if you turn around and sell the next day, you'll be on the hook for tax. You can't get around the tax easily. Some people who have a family member at the dealership will let a Lease Buyout go through to a 3rd party, but good luck with that if you don't have an inside track.
Not sure on how lexus is with terminating leases, but you'll probably have to get into another Lexus and eventhough it may not really be a problem/hassle, you know that somewhere Lexus will be making more money and you'll be losing it. If you could get out of leases so easily, don't you think everyone would lease for 60 months and jump in a new car in 24 months all while paying super low payments?
On our VW lease for 36 months, the payments would have been about the same if we just bought the car and paid for it over 60 months. We checked into turning it in early but it was such a hassle as I mentioned above, that the car sat in my garage for a year an a half because it was cheaper than the tax and all the hassles selling the car myself. Turned the car in with 13k miles on a 3 year lease. Still had the new car smell. Lesson learned!
Financed my purchased 250 with no money down for 60 months at $607 a month (paid the tax straightup, not rolled into financing). Leasing would have been just over $100 cheaper a month, no way...
Last edited by sailing217; 08-09-06 at 07:32 AM.
08-09-06 | 07:26 AM
#14
Rookie
Joined: Jun 2006
Posts: 75
Likes: 0
From: VA
The best way to go is a 36 month lease with lexus. The 24 month residual was only like 4% better. I just put down first months payment and rolled in the rest and I'm paying $650. I'm sure I could have done better on the deal as well but dealers don't like to budge much in northern VA. A 60 month lease is crazy!
08-09-06 | 09:45 AM
#15
Driver
Joined: Jul 2006
Posts: 116
Likes: 0
From: ca
wow and I thought my lease rate is high (Probably still is compared to some of you)
Zero down $652 per month
12k miles/year 36 months lease
Residual 60% MF 0.0029
I know I got screwed on the MF but my purchase price was low at $40500
IS350 sport/ML/Nav
Zero down $652 per month
12k miles/year 36 months lease
Residual 60% MF 0.0029
I know I got screwed on the MF but my purchase price was low at $40500
IS350 sport/ML/Nav