alexlude

Hey Bass, $637/month including tax for a 27 month 12k lease is quite steep man. I dunno if that's a good deal...

You have been a return loyal customer and all they could give you was $2k below MSRP? Even for a custom order IS, that is nothing. Technically, It doesnt cost them more to order one for you, and they are guaranteed to sell it since they know they have a buyer vs. having a car sit on their lot and lose value. Also with those numbers, looks like you're in the .00320 money factor range (residual for that config is 72%). Isnt Top Tier credit (720+) around .002 at the highest?

Why only 1 MSD? Why didnt you max out 9 MSDs to get the best money factor?

Even if you can afford it, that seems quite high to pay monthly. Looks to be in the LS range (if you can negotiate a good deal).

Anyways, just some personal thoughts... as long as you're happy with that deal is all that matters...

iampraneel

iTrader: (3)

Bass, I'm a bit confused. Looking at my invoice, which is for the same options you got plus mine has the ppf and the accessory package with rear bumper apq, it came out to $46,549. Since you didn't get the ppf ($259 invoice) and accessory package ($208 invoice) your invoice should be $46,082. That means you paid $850 over invoice.

I understand you've got a great relationship with your dealer and you've bought 4 cars from them but at the end of the day the dealership doesn't send your kids to college or buy the nice diamond earrings for your wife.

Also what MF did they give you? From what I've been told about leases the MF isn't tied to the term, it's your credit.

I'm sure you saw the deal that I got. This was for a car which was special ordered but the buyer backed out the day it was being prepped. I called the next day and started negotiating my deal. This was the only one in N CA with ML and VGRS that was available and I still got $1000 below invoice. They even swapped the front bumper for me because I didn't want license plate holes. So saying you lost negotiating power doesn't make sense to me just because your car was special ordered.

Funny story. When I was initially calling around for an IS that had ML and VGRS most dealers were willing to sell me the car $1,500 below invoice on a car that was going to be ordered except for my local dealer. That same dealer was willing to do $3,000 below invoice for a car that was on the lot. I mentioned this to a sales manager in San Diego and she laughed. She laughed because dealerships stand to make more profit on special order cars. I asked how? She said they don't need to market the car, no need to wash the car everyday, no need to fit the car with dealer specific security while it's sitting on the lot and hard money isn't tied up for the car.

Some things to think about when you order your next car.

pikenp

Hi everyone & thanks for all the information you have provided in helping me make a decision to get this great car!
This is the Leasing quote I got from a dealer in Central NJ!

2014 IS 350 F Sport
Nav/BSM/AWD
UW/Rioja Red or OB/Rioja Red

Pricing based on: 45900

$0 down
$570 / month (tax incl)
27 months / 12k miles

$2K down
$485/month (tax incl)
27 months / 12k miles

MSRP - 45900
Money Factor - 0.0011
Res Value - 73% of MSRP @ 27 months lease

Does this sound like a good deal? I am willing to negotiate this further and want to get at least 36 month lease, but what's better in long run, for a car like this? Lower Selling Pricing? lower monthly payments? upfront downpayment?

chamjin

David Song



Happy Hunting !

iampraneel

iTrader: (3)

Need more info. MSRP, Invoice and Money Factor.

pikenp

MSRP - 45900
Money Factor - 0.0011
Res Value - 73% of MSRP @ 27 months lease

alexlude

pikenp, what is your sales price? Are they just selling it to you @ MSRP?

pikenp

I haven't negotiated the price (SP) and the price that was quoted was 45900. I have been following the thread and see that the range that some others paid is somewhere around 1000-1500 less than what was quoted, so I would be negotiating. But say if that's the Selling Price and I agree to buy, is this a good deal, given all the other information?

alexlude

No, you can do better.

After seeing what's possible. I'd say a good deal for leasing an IS350Fsport would be around low to mid 400/month (using MSDs) and up to maximum of low 500s without using MSDs. This is minimum 36mo/12k (64% residual).

If you don't know what MSDs are read up on this - http://www.lexusfinancial.com/consum...asepage_unsclf (2nd paragraph down, and search MSD in 3IS forums)

jimthegree

I got about $4600 off the price of my IS250 last weekend. Most dealers were around the $4000 range but I lucked out as this particular vehicle had been there for over 30 days and they wanted to push it out.

Bass Mech

before you read, SORRY this post got so long..

well i don't remember what the money factor was, i just know that once the money factor is lowered each MSD that you put in doesn't make as much of a difference. its like this.. have you ever run a finance calculator with a 3% interest rate? then 2% then 1% and looked at the difference between each?
for example, i have a payment calculator here on my iPhone. ill punch in a couple numbers.
a hypothetical loan, 30,000 for 5 years @ 3% interest
payment for 6 months comes to 578
at 2% interest payment is 564
at 1% interest payment is 536
at 0% interest payment is still 536

money factors work the same way but we are talking about a 27 month lease. i don't know what the money factor you mentioned comes to when calculated as interest but most leases start around 3-4%
your really not paying much interest over 27 months at 4%.
each MSD lowers your money factor by .00008 i think i don't know what that translates to in interest but each MSD you put down affects the payment my less each time.
the point is the closer you get to 0 interest the less effect it has on the payment.

i pulled my credit scores the day my car arrived. my high score was 769 but when lexus ran my credit they use a AUTO risk score. meaning LFS and most finance companies have a weighted score when it comes to auto loans. the actual score only came to 711 and your right you need 720 to qualify for tier 1 PLUS financing. tier 1 is not the highest tier!
yes i could have put more MSD's but the net result is doing so doesn't save me any money because several thousand dollars tied up with LFS making no interest is not the best use of my money.
what i may do in the future is when i get my MSD back from this lease i may use that money and add another if it makes a significant enough difference.
also because i am self employed i write the entire car payment, gas, tires, maintenance and car washes, oil changes off on my taxes. so the payment doesn't really matter to me. the more i pay the bigger deduction i get. the problem is i make too much money and i fall into a higher tax bracket!
so what i spend on car payments i save getting my adjusted gross income down.
putting all your money into MSD's just to chase the lowest car payment seems to me dollar wise and penny foolish.

here is what you need to understand about colorado and car dealers. we don't have nearly as many dealers here as folks in california or texas or florida, and they are low volume compared to the dealers you guys are buying from.
as a result they have little competition with each other. and they don't move enough cars to get a corporate level cash award from the manufacturer.
Trust me i tried to negotiate a deal with all the dealers in the state. They won't budge! i know what everyone thinks because deals have been had in this thread that seem unbelievable.
however 2 things come to mind. 1. I doubt all the deals you see are legit. if the buyer had a car to trade they may have been told they got the car for 5k off sticker, (and they will see that on their sales order) but in fact got screwed about 3k on their trade! its called the funny money game and every dealer plays it whenever possible.
those who did not trade got the real deal and likely the dealership is striving to earn some incentive from lexus corporate for achieving enough sales. the kickback is something way above the sales staff pay grade for them to even be able to tell you about.. this goes all the way up to the GSM and the owner of the dealership.
let's say for sake of argument the dealership gets 50k for moving 100 cars in a month. they won't give them all away below invoice but they could certainly afford to take a loss on 10% of them and still make a profit, not to mention the holdback fees they get to keep on each one.

you don't need to be a rocket scientist to see that selling a car below invoice is an extremely poor business model!
bottom line is dealers here don't move enough cars to get those cash incentives from Lexus, they just don't sell enough cars.
trust me i am a great buyer of cars, I've bought probably 15 in the past 18 years. i know how to negotiate a deal! i leverage 1 dealer against the other, I've done the walk out and i also know when I've got them down to their best price.

in contrast i called Longo Lexus in CA and asked if i could get one for 1500 under invoice and without hesitation they said YES!! until they found out i don't live in california and then the best they would do was sell to me at invoice. the reason in part is because longo expects they will be able to sell you pre paid maintenance and you get your oil changes at their dealership etc..
so you guys who are getting these great deals aren't necessarily better negotiators, your just dealing with a larger dealership who is willing to pull their pants down to their ankles and let you take advantage of them because they know if they move enough cars they will still make money.

It's simply not worth my time to try to negotiate another 500 bucks off the purchase price of the car, buy from another state, have to pay taxes separately (i also found out they cannot lease to you in another state, you must lease where you live or at least i can't lease from california)
but lets say i could have saved another 1500 bucks to buy out of state, cost me at least 900 to transport it and i save what? 20 bucks a month in payments?

i know i never should have posted in this thread because i think the intent of why it got started was to see who has the bigger dic% and who got the best deal.
i think anyone pinching pennies to get a 50,000 car really shouldn't be spending the money in the first place. sure we all like to get a deal, but the truth is in life most people will pay more just because they know it's a fair deal.
is it not a fair deal unless you get every last dollar off? i bought a 90,000 corvette. i ordered it from scratch through a Montana dealer. i was offered 15,000 off MSRP yes you read that correctly fifteen grand off sticker! i felt guilty!
but this dealer wanted to move corvettes because GM is only going to give allocation to the dealers for the 2014 stingray to those dealers who sold the most cars in 2012 and 2013. this dealer made exactly 95 bucks selling me the car.
but as he told me for his reasoning "would you rather be the chevy dealer who got ZERO 2014 corvettes on their lot selling at full sticker + markup? one of the hottest cars to hit the dealers in almost 10 years? or do you want to be the dealer with 100 of them sitting on your lot and them flying off the lot as fast as they come in by truck?"
he makes a valid point!
my point is i know i got the car below Fair market value another grand or so off a 50k car meaning nothing to me, but seems to mean a lot to everyone here.
so what! you got a good deal! lovely for you! happy for ya, but my budget is not as tight i could easily afford a pair of IS's at any payment!
in fact i could pay cash, but i can't write that off on my taxes as easily. have to depreciate it and loops to jump through easier to just write it all off.

you don't even want to know what i pay for the GS, i was upside down on an acura TL i really wanted out of.
i got 5k off sticker on the 2013 GS from this same dealer! (they had a special going on that month)
but the 5k i saved on the car went right back to the negative equity i had in the Acura, they even called the acura dealer across the street to get a buy bid to help me out! (buying the acura was a bad idea and that was my fault)
so in the end i ended up paying pretty close to sticker for the GS, but again, i didn't care because i was getting the car i wanted.

sorry for the long post, but hopefully this clears things up a little.
so yes i didn't get as good of a deal, but in the end you can't MAKE a dealer give you a better deal, and it was not financially beneficial for me to get in a huff about it.

i know when you got your first car you walked away from the deal over holes in your front bumper, and got another better deal from another dealer. your fortunate you live in california, you have many to choose from, and you also got a car that i believe was already allocated in both cases.

also imagine how much of an *** i would have looked like to put a deposit on a car, wait 4 months for it to arrive and tell them "sorry, i was hoping to pay less than invoice" and then just walk away! i have a relationship at this dealer, they treat me right, my daughter used to work there, everyone knows me from the service department to the parts counter to the GSM and owner of the dealer.
for what it's worth, had i been in your situation i would have taken the car with the holes in the bumper because I've been doing business with them for 8 years now.
they send me referral business and i send them business. its not about how much money they saved me its about the relationships i have created and the respect i have for them and they for me.

you have no relationship with the dealer you walked from and they could care less because in california RWD cars are the norm there.
they could sell your car likely in just a day after you walked.
threatening to leave a custom ordered RWD at the dealer here in colorado with snow on the ground and walking away would be like kicking them in the nuts!

sorry i am not directing this at you and I'm not upset. just trying to make a point..

Bass Mech

i am posting a picture of my window sticker for you to try to answer this question. either you did not get all the features i did, or someone is telling lies.
the proof is in the pudding as they say!

as to the other question i just typed a novel for alex, good information in there i think. you guys in california have it easy, lots of people with money in your state, lots of people who use up cars quickly because you usually drive a lot more then we do per year. also lots of car dealers to choose from.
it's all about supply and demand, when there are a lot of something the price goes down, the more competition you have, the more likely dealers are willing to make a deal of a lifetime, if they didn't they would be the only dealer not moving cars.
i also suspect the same dealers giving away cars like this probably screw people pretty badly on trades. fact is any good dealer is going to make between 6-7k on every used car they sell, wether they buy from auction or take as a trade.
it's obvious! they have to be making money someplace! because they sure as hell aren't making it on the new car sales are they!

SonyHome

I was originally going to get the accessory package but I had them remove it along with factory PPF. I found that I could get all season mats, trunk mat, wheel locks and cargo net for the same price (or lower if you factor in tax) from sewellparts.com. For PPF I decided to go with full bumper, full fender, full hood, a-pillar, roof line, mirrors, rear bumper ledge and door cups and choose to go with Suntek self healing film. I don't think I would have gotten the same protection from factory PPF.

Bass Mech

alex, keep in mind longer lease terms usually have lower payments.

Bass Mech

normally i would go all out, but had it not been for my tint guy offering to clear bra the hood and mirrors for 150 bucks i would have not bothered with it.

i am tempted to get the bumper done but i don't think it can be done in 1 piece and I'm not going to pay that much on a lease vehicle.
i just hate to see a perfect paint job get sandblasted.
however on that note, sometimes i wonder if it's worth the money to cover the entire hood and everything you mentioned because at some point it makes more sense to just repaint those parts.
fact is clear bra isn't perfect either. it will save the paint, but the film itself takes a beating and if you actually pulled it off and replaced it, after 2 application paying for each you might well have been better off to just paint the car.

i don't know about where you live but they throw some pretty big gravel on our roads here.. i saw a stone hit my windshield just today on the highway, it didn't crack the glass but left a mark or divot in the glass. had that hit clear bra i guarantee you it would have torn it at least a little.
it was a low speed rock, but i actually saw it flying towards me, it was reddish brown and then whack!
welcome to colorado in the winter!