Anybody in here from Canada that is leasing? I would love to see some prices.

 

It looks like you did very well - 38.5 cents per mile to drive a $47k Lexus for 36k miles.

Welcome to the forum - congrats and enjoy your new IS!

 

was just chatting with bpguns on residual value of vehicle.

In Canada what Lexus website is showing me for same milage driven is that RV = 52%

and for US the RV = 63%


Why such a huge gap?

 

I have a question and i hope its not a dumb one. So when they factor in the tax for the lease, its tax based on the selling price of the car? So if you were to purchase the car at the end of the lease, the purchase price would be the residual value with no more tax added?

 

I just asked that questions through PM, the answer was depending in what state you are in, some they charge tax on full price of the vehicle and others will charge you tax on your monthly paymets

 

So if they did the full price... What happens when u buy the car at the end of the lease? No more tax and fees applied right?

I was gonna do PM but I figured others may have similar questions.

Thanks for the reply!

 

Sadly, this isn't the case in Georgia where tax is charged up front. When you lease, you pay what's called title ad valorem tax (TAVT, currently 7% I think) on the full price of the car in lieu of sales tax, and you are not charged any further tax on the monthly payments. But, if you exercise the buyout at the end of your lease term, then you pay 7% TAVT again on the new full purchase price of the vehicle. If you turn the car in and lease another one, you pay 7% tax on the full value of the new car again. The lease taxation in Georgia is completely absurd. I think Texas and Maryland are similar, but theirs are normal sales tax. Most states charge normal sales tax only on the monthly payment which makes much more sense and doesn't unfairly screw over a lessee who technically doesn't even own the car. This is my first lease and I will not be living in Georgia after the end of this year, otherwise I would not do a lease in this state.

 

^^^ Unfortunately Texas is this way as well.. Pissed as NY doesn't do that but tx does.. Oh well!!

 

In CA, you pay sales tax on the base lease payment based on the rate in your location. If you were to buy the lease out at the end, you would be taxed on the residual value you agreed to in the lease terms. It's one advantage of leasing because if you don't buy it out at lease end, you've only paid a fraction of what the sales tax would've been had you purchased the car up front.

 

Don't limit yourself to dealers in your area. The #1 & #2 Lexus dealerships are in Miami. They love to wholesale their cars. I bought online and had car shipped to my door no charge.

Call Evolution Leasing - 786-565-5035. evolutionlease.com. Ask for David. Tell him Mark from Wilmington NC sent you.

CUSTOMER DISCLOSURE


Sale Vehicle: New 2015 LEXUS IS 350 F 9510 4dr Sdn AT w/AC , Automatic , Odom: 0

Payment Details
Term 36
Base Payment 357.30
Total Payment 357.30
Purchase Option 31,196.10
MSRP 47,994.00
Est. Miles Per Year 10,000
Disposition Fee 350.00
Excess Mileage Charge 0.25



Amount Due at Signing
Advance Payments 12,862.80
Acquisition Fee 700.00
Fees & Insurance 350.00
Upfront Taxes 417.42
Total Inception Fees 14,330.22

Total Cash Required on Delivery 14,330.22

 

I need some advice fellas. I put a deposit on a IS350 thats not in stock yet (arrives Aug 20th)

The terms are essentially:
48 month lease, .00065 money factor, and 52% residual with $1000 down. The payment is exactly what I need it to be and we're somewhat good to go.

The problem is, I'd really prefer a 36 month lease. Based on my calculations, with the same money factor money for my trade (negative equity) and selling price of the IS, I'd need to come up with $500 more.

I called the dealership today and asked if I put $500 more in can we do the same payment at 36, they said I'd need to come up with $2500 more, not $500 to be at the same payment.

I can't figure out why its that much more needed. I'm using 63% residual now for 36 which seems common in this thread, the only factor that I can think of changing is that they're using a much higher money factor now.

The question is, does shorter term typically mean a higher money factor is used?

When financing a shorter term ususally means the same or better interest, so why is a higher money factor used for a shorter lease term?

Is the dealer just trying to hose me now that they have a deposit?

Granted I can consider using MSDs instead of a downpayment to get the money factor right... but the main question is why a higher money factor to begin with?

Any help appreciated before they get back to me tomorrow.

Thanks in advance for the insight.

 

We'd have to get all the numbers to run the calculation. The difference in payment will depend on the deal you get vs. MSRP, your negative equity, down payment, any lease incentives, etc.

You're sure the total MF is .00065? That is the Lexus base MF meaning the dealer is not marking that up at all. What's the MSRP on the car, and what is your negotiated price? What other fees? $700 acquisition, how about dealer doc fees, tags and title, etc?

If I plug in the lease I just signed (MSRP $47,519 - negotiated price $41,800 - $700 acq fee + $589 dealer doc fee) with your $1000 down, .00065 MF, and no MSD's... then it gives me:
$410/mo for 36 months @ 63% residual
$430/mo for 48 months @ 52% residual]

If I change the deal to $45,000 negotiated price, then the payments are nearly identical around $505/mo. So as you can see it depends on the deal and how far below MSRP you can get.

For a car purchased at MSRP, the shorter term lease will be more expensive because depreciation costs are more heavily tilted towards the beginning of the term (i.e. it depreciates fast at the beginning then slows down). Just like the saying that a car loses half its value the minute you drive it off the lot.

 

So i have a lot of negative equity due to the car being in an accident and having purchased extended warranties when I first bought it. (dont ask)

Total Cap cost is $50,350 this includes the negative trade equity. They mentioned $1100 in incentives, which was first month's payment and $500 incentive. I'm not clear if that $50,350 does or does not include that incentive.
MSRP they listed is $47,440
Residual: 52% $24,668
MF: .00065
$1000 outta pocket
6.5% Tax
I'm transferring tags, they didn't say how much but my guess is $200
There is no Dealer Fee
I dont know if theres an acquisition fee but if there is one its rolled in some how because I made it clear I'm only writing a check for $1000 when I drive the car off the lot.
Payment is $600 which is what I wanted to be at and no more. So they met this. at 48 months.

Now after the fact, I'm asking if we can do 36mo, 63% residual (my assumption based on this thread) with an extra $500 outta pocket at drive off and stay at $600/mo.

 

OK so with that approximate calculation using $50,350 as the negotiated price, plus $700 acquisition fee, minus $1100 incentives, minus $1000 down, and plus $200 in title/reg fees... I'm getting $595/mo on the 48 month lease so pretty close. If I keep everything else the same and only change the term to 36 months with a 63% residual, it's $625/mo. To make it $600/mo for the 36 month lease it'd require an extra $1000 down, give or take. Unless my calculation is WAY off, then they are changing things up on you for the 36 month lease terms. I'd get a breakdown of EXACTLY what is going into that $50,350 number - what part is the negotiated price of the car, what part is the negative equity, what parts is fees, etc. That will allow you to make a better informed decision. For all you know they could be trying to get you to pay MSRP on the car which is nuts. With an MSRP of $47,440 you'd want the actual price in the $41k-$43k range. Then add in your negative equity and any fees etc. Based on what I was calculating it looks like the $50,350 was just the price of the car + negative equity, not including any other fees. I'd also check with them on the no dealer fee - my impression is that most FL dealers charge doc fees like crazy since it's not state regulated. Same in GA, and they usually charge $400+

If you go with 8 MSD's but zero actual "down payment", then it'd be around $600/mo too. But, it would save you almost $2000 over the lease term. It's a lot upfront, but you'd get it back at the end and save a ton.

 

Unfortunately 3 MSD's is about as far as I can go and thats with no downpayment. If the MF is truly .00065, I'm not sure its worth putting the MSD's down as the downpayment I think makes for a lower monthly payment than MSDs. Granted that money comes back to me though so its worth considering.

I really just dont understand why this stuff is like pulling teeth with them. Here is your payment, heres how we got there... why is it so difficult for them to just give that without me having to pry and pull numbers out of them. In nearly 2 weeks of discussion since I first stepped foot into the dealership no one has once mentioned anything about an acquisition fee. And If i didn't ask about residuals and money factors I'm confident I wasn't going to be offered that information.

I will try to find out whats going into the calculation today and report back, thanks for taking the time to explain bpguns.