Swordfish

For those of you that lease, it is very good to be able to put down multple REFUNDABLE security deposits, instead of direct cap cost reductions (down payments).

Companies such as BMW allow for up to 7 security deposits and for each security deposit you put down you get a money factor reduction, thus reducing your monthly payment.

When you turn in the lease, you get the security deposits back.

I havent had a chance to negotiate with a lexus dealer that knows what he is talkigna bout yet, as most are clueless to this and insist that you should put down 3 or 4k to get your payment lower...

Anyone pull this strategy yet?

aarya

You're right... most are clueless and will tell you can't do it. Ask to speak to the finance manager or call LFS first and talk to someone there. If you can do it, it is much better than a large cap cost reduction.

Swordfish

Absolutely...I am going to have to go in there with my own paperwork and show them the money factor reduction, deposits, payment, etc.

I'm not trying to shortchange them.. just getting an accurate and smart deal...

rominl

iTrader: (4)

of course multiple deposit plan is better...... that's whta i am using, much better idea than down, those are money down the drain

Technique

There is never any point to putting money down... Every car I have leased I put 0 down at pickup and 0 down at turn in... I roll everything into the monthly payment... I refuse to use terms like "cap reduc" and "money factor"... I just find the car price, interest rate, term, and miles/year. Nothing else matters in a lease, don't let them try and confuse you...

Use that method and you can save $100s per month on your lease...

Swordfish

One of the benefits of putting down multiple deposits is reducing the money factor.. any idea how much easy deposit lowers the MF?

I helped a friend lease a new bmw and was able to get him .00007 reduction for each security deposit, up to 7. Thus making the MF much lower and a better monthly payment.

Can you tell us about your lease deal? I haven't seen any facts about Lexus regarding this method..

I'm going to be looking to lease a is350 with luxury package.. 36 months, 15k/miles. As it stands right now, I dont know the residal percentage nor accurate money factor and I hate to go into a dealership not knowing this.

Swordfish

Tell us more.. you hve an is350?

There are many people here who have know idea what we are talking about and continue to use cap reductions on there leases...

MyFirstLEX

I did a little research myself and Lexus also offers this type of program. You are allowed up to nine security deposits. Check it out.

http://www.lexus.com/financial/leasi..._programs.html

rominl

iTrader: (4)

that's the plan we talking about here right? multiple security deposit

Swordfish

Right.. i also got this information from the finance dept:

You can go up to 9 security deposits equal to the payment rounded up to the nearest $50.00.

Each one reduces the money factor by .001