SAFNYC

Hi all, new member here would like to get your take on this lease deal.

2008 Lexus IS 250 AWD
Options
Voice-activated DVD Navigation System with backup camera and Bluetooth® technology, AM/FM radio and CD-changer with 13 speakers
Bi-xenon High-Intensity Discharge (HID) headlamps and Adaptive Front Lighting System (AFS)
Premium Package
Accessory Package

Dealer Lease Offer
Cap Cost (MSRP): $39,125
Money Factor: .00185 (5.4%)
Lease Term: 36 months/10K miles
Residual: 59%

Option #1
Cap Reduction: $0
$562/month

Option #2
Cap Reduction: $2,500
$487/month

The cap cost is MSRP, so I'm sure I can get that down, but by how much I don't know.
The money factor of .00225 is the financing rate offered by Lexus for individuals with a credit score of 730 or higher. Luckily for me I have a 795, and the dealer said they might be willing to lower the rate due to my credit worthiness.

This will be the first time I purchase a Lexus, and I must say that I have never heard of a 59% residual for a 3 year lease. I guess these vehicles hold their value well.

Thanks!
SAFNYX

MoLexus

The 60% residual is what has me iffy about the whole deal but other than that I have never been comfortable with Lexus leasing rates. IMO if you want a good lease program look into a third party leasing company or BMW.

SAFNYC

Why does the residual have you concerned?

carchitect

iTrader: (1)

Residual value is what Lexus financial has set for your lease. Its an agreement that they made for your lease contract provided that you maintain your vehicle (preferably at a Lexus dealer) and is in the same shape as it was when it was delivered to you new. Minor door dings and small scratches that could be buffed out might not be too much to be concerned about but bumper scrapes and huge dents that would involve body work could create issues during lease turnin so be aware of what you are dealing with during a lease. Fortunately, if your vehicle's valued below your lease residual value you simply turn it in and walk away and the difference would be dealt with the dealer and Lexus financial. If your vehicle is valued more than your lease residual value you can use it as a down payment towards your new vehicle but if you finance your balloon payment you're dealing with financing the lease residual value. IMO, you have no reason to be worried about either ways.

SAFNYC

Well, I am in that situation right now. I have a 2005 Acura TSX. I leased it for 3 years and it expires in Feb/08. The lease was for 36,000 miles, but I only drove 17,000, and the car is in dynamite condition, I mean, it can pass for a showroom car. I should check the value of it to see if it's worth more than the buy back price. If so, maybe I can convince Lexus to buy the car and use the excess value towards the IS.

Are there any good websites for appraising used cars?

thanks
SAF

mark5

I have a AWD250, No navi. I put 1st month and dmv fee and some other fee total $980, monthly payment of $485 with nyc tax.

Abs777

We got ours on the last day of the month and had every option as yours does. O down 523 month.

SAFNYC

Ok, I finally closed the deal on 12/29. I think I made off pretty good. Here is what I got:

2008 Lexus IS 250 AWD
Options
Navigation System/backup camera
Bi-xenon High-Intensity Discharge (HID) headlamps and Adaptive Front Lighting System (AFS)
Preimum Package
Accessory Package (Cargo Net, Wheel Locks, Mats)

$0 down, I am paying sales tax, dealer, DMV, and bank fees upfront.

Monthly Payment $450

Not bad in my opinion