Money Factor Reduction
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Hey,
I'm coming over from BMW. I'm looking at an IS250 or IS350. Can anyone help me with how much of a money factor reduction for:
1. MSDs. I'm pretty sure it is 0.00008 with a maximum of 9, and a total reduction of .00072. Is this right?
2. One-pay. Does anyone know how much this reduces the Money Factor by?
Also, is there a thread that lists monthly residuals on here? Does anyone know if it is still 65% (36/10k).
Thanks.
I'm coming over from BMW. I'm looking at an IS250 or IS350. Can anyone help me with how much of a money factor reduction for:
1. MSDs. I'm pretty sure it is 0.00008 with a maximum of 9, and a total reduction of .00072. Is this right?
2. One-pay. Does anyone know how much this reduces the Money Factor by?
Also, is there a thread that lists monthly residuals on here? Does anyone know if it is still 65% (36/10k).
Thanks.
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Hey,
I'm coming over from BMW. I'm looking at an IS250 or IS350. Can anyone help me with how much of a money factor reduction for:
1. MSDs. I'm pretty sure it is 0.00008 with a maximum of 9, and a total reduction of .00072. Is this right?
2. One-pay. Does anyone know how much this reduces the Money Factor by?
Also, is there a thread that lists monthly residuals on here? Does anyone know if it is still 65% (36/10k).
Thanks.
I'm coming over from BMW. I'm looking at an IS250 or IS350. Can anyone help me with how much of a money factor reduction for:
1. MSDs. I'm pretty sure it is 0.00008 with a maximum of 9, and a total reduction of .00072. Is this right?
2. One-pay. Does anyone know how much this reduces the Money Factor by?
Also, is there a thread that lists monthly residuals on here? Does anyone know if it is still 65% (36/10k).
Thanks.
Your second question, Im not sure
The residuals seem to vary dealer to dealer, for 36 months I would expect it to be around 65% or even 68%. Some dealers seem to give a low Residual but the MF will be lower also. I think Ive seen one poster get a 73% residual for 27 month lease.
Hope you make the switch over to Lexus
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I believe with Lexus each MSD is .0001, so the total reduction would be .0009 with 9 MSD.
Your second question, Im not sure
The residuals seem to vary dealer to dealer, for 36 months I would expect it to be around 65% or even 68%. Some dealers seem to give a low Residual but the MF will be lower also. I think Ive seen one poster get a 73% residual for 27 month lease.
Hope you make the switch over to Lexus
Your second question, Im not sure
The residuals seem to vary dealer to dealer, for 36 months I would expect it to be around 65% or even 68%. Some dealers seem to give a low Residual but the MF will be lower also. I think Ive seen one poster get a 73% residual for 27 month lease.
Hope you make the switch over to Lexus
Just like BMW, the residuals are set by Lexus Financial. There is no funny business going on with the residual, dealerships cannot lower or raise them at their whim. Same as BMW, residuals are quoted for 15k/year, 2% more for 12k/year, and 1% extra (so 3% more than 15k) for 10k/year. Check edmunds lease guide for the Lexus IS250/350 for guidance on residuals. The lexus website does not give you the requisite information to "back into" the residual %.
MSDs are possible - some dealers may kick and scream, most sales guys won't have a clue of what you're talking about, but it is available if they let you. Your math is correct, max 9 security deposits at 0.00008 each. Calculation of MSD due at signing is the same as BMW - take monthly lease price NET of the MSDs, round up to the nearest $25 increment, multiply by number of security deposits. Hopefully the finance guy has been around the block and knows how to do this - it's my understanding that Lexus FS will reject the application if calculated incorrectly.
I've leased with BMW and now Lexus, and the BMW leasing process is much more straightforward and you can walk in there with the calculated monthly in advance. Lexus the dealer tried to hose me several times before they got it right.
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^
I agree that BMW is pretty straight forward with leases (I have had 6 BMWs before), but Lexus was on par with my BMW lease experience ease. I went in with a lease app I use on my phone all pre calcualted with the exact amount I was willing to base the lease on, along with True Car info. They accepted all of the information and I was still able to negociate a little more off. Guess it all depends on what dealer you use, what area, ect.....
I agree that BMW is pretty straight forward with leases (I have had 6 BMWs before), but Lexus was on par with my BMW lease experience ease. I went in with a lease app I use on my phone all pre calcualted with the exact amount I was willing to base the lease on, along with True Car info. They accepted all of the information and I was still able to negociate a little more off. Guess it all depends on what dealer you use, what area, ect.....
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Just an update guys. I went to the dealer today. He gave me a good deal on the sale price, but the finance guy said that I couldn't do 9 MSDs and the most he could give me was like 0.0005 off of the Money Factor. I'm so confused, have you guys actually been able to get the full 0.00072 off the Money Factor? And you used the 0.001 MF right, so .001-.00072 for 0.00028, right?
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Thank you so much stupenal and celsius.
So one pay essentially makes the money factor 0! Your reduction was almost .001which is the money factor on these cars. I wonder if they will let you extend your lease month the month at the end of 24 if you have to. Most likely they will at what your monthly payments with the one pay are.
So one pay essentially makes the money factor 0! Your reduction was almost .001which is the money factor on these cars. I wonder if they will let you extend your lease month the month at the end of 24 if you have to. Most likely they will at what your monthly payments with the one pay are.
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I had the same BS with the dealership I went to. First it was zero MSD, then max 3. Sales guy said "finance manager won't let me do it, these are his rules, sorry." I'm about 100% sure he didn't talk to the finance manager because when I did close my deal, the finance guy was really knowledgable about MSDs and even corrected my sales guy's errors. It was beyond frustrating since I know this has zero impact to the dealer as MSDs all go through Lexus FS. Dealers should just be concerned about moving cars and complying with whatever rules are imposed by LFS.
Regardless - if they don't want to let you do MSDs, just tell them this is the sticking point in the deal and that you're walking away. I walked away, got a call back the next morning and got the price down a bit lower plus got them to do MSDs. Tell them you're not stepping foot into the dealership until they send you the lease calculation worksheet and final numbers. After you check the numbers, call them and tell them you're ready to buy. If it's something that won't impact their bottom line, they'll come around eventually and "give in" (or at least, thats the impression they want to give you).
Regardless - if they don't want to let you do MSDs, just tell them this is the sticking point in the deal and that you're walking away. I walked away, got a call back the next morning and got the price down a bit lower plus got them to do MSDs. Tell them you're not stepping foot into the dealership until they send you the lease calculation worksheet and final numbers. After you check the numbers, call them and tell them you're ready to buy. If it's something that won't impact their bottom line, they'll come around eventually and "give in" (or at least, thats the impression they want to give you).
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