Lease 2013 LS offer from dealer...
#16
Pole Position
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Forgive me if I posted this in the wrong place but can someone tell me if this is a good deal or not? I have a 2009 LS that I am ending lease on this month. Here is the quote I got today for a 3 year lease including turning in the 09 LS, which apparently is worth $8000 more than my residual according to this deal.
2013 LS with optional package
MSRP: $77,950
Selling price: $74,700 ($75,400 with tax)
Residual $45,991 (0.59%)
Trade in $35,000 ($27,900 is current residual on 09 LS lease)
36mo lease
MF 0.0019
$959/mo ($890+tax)
Located in PHX, AZ.
Thanks! KIT
2013 LS with optional package
MSRP: $77,950
Selling price: $74,700 ($75,400 with tax)
Residual $45,991 (0.59%)
Trade in $35,000 ($27,900 is current residual on 09 LS lease)
36mo lease
MF 0.0019
$959/mo ($890+tax)
Located in PHX, AZ.
Thanks! KIT
#17
Pole Position
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When I negotiate a lease I don't ask "how much a month" I ask for the 4 factors below and run it through a lease calculator. I used to use an excel spread sheet on a laptop to calculate lease payments. Today with smart phones and Internet connections it's easier to use an online calculator.
The online lease calculator link that Steve posted is a good one.
http://www.leaseguide.com/calc.htm
Remember every $1,000 lower that you can negotiate CAP cost saves you over $36/month on a 3 year lease.
MSRP (Manufacture's sticker price)
CAP COST (negotiated price you really paid)
RESIDUAL (% of MSRP you can buy the car for at end of lease)
MONEY FACTOR (cost of money, multiply by 24 to get effective interest rate)
Watch out for fees like acquisition fee, disposition fee etc.
Money factor can be closely converted to interest rate by multiplying it by 24. Money factor of 0.0019 is around 4.5% interest.
The online lease calculator link that Steve posted is a good one.
http://www.leaseguide.com/calc.htm
Remember every $1,000 lower that you can negotiate CAP cost saves you over $36/month on a 3 year lease.
MSRP (Manufacture's sticker price)
CAP COST (negotiated price you really paid)
RESIDUAL (% of MSRP you can buy the car for at end of lease)
MONEY FACTOR (cost of money, multiply by 24 to get effective interest rate)
Watch out for fees like acquisition fee, disposition fee etc.
Money factor can be closely converted to interest rate by multiplying it by 24. Money factor of 0.0019 is around 4.5% interest.
Cetainly, CAP cost and residual are important.. but on occasion, I have found that manufacturers promote a very special lease, where the purchase price is actually the list price and the residual is very high but the monthly payment is very low.. The manufacturer is (artificially) guaranteeing the residual. I have not seen such a scenario for Lexus but I have actually leased a few Camry's and one honda and one Passat that way - where the residual is so high that I would never want to buy that car at end of lease.. But monthly payments were low.. Example: 2010 camry for $1500 down and $189/month (36 month/45000 miles). It all depends on the time of the year and whether or not the manufacturer wants to "move" the cars.. Again.. I have not seen Lexus do that very often.. May be I leased a couple like that but i don't recall the numbers.. I do recall leasing a 2002 or 2003 LS for about $900/month but they were charging only 10 cents a mile prepaid - that I pre-paid for 30,000 miles a year..
Last edited by lexus600hl; 10-25-12 at 11:13 AM.
#18
Lexus Fanatic
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While all these numbers are what make up the final price, I believe that the only three numbers which are important to me are: Sticker price, cash due at drive off, monthly payment including taxes. Assuming all being 36 months. These are the only numbers I would use to compare deals not just across different dealership for the same car, I use it to compare to other similiarly priced competetor cars.. Some times, you might find that BMW offers a much better deal on its $90,000 car Vs a Lexus or Audi or Mercedes - and vice versa.
To me its important that if I am told something, that they are going to sell me the car for X, and that the lease will be calculated around that price and that profit for the dealership, then thats what I am actually delivered.
Thats not the case most of the time, and its not the case in the OP's quote for instance. $1,500-$2,000 is being earned by the dealership in that scenario that isn't being disclosed to her.
Without looking at a disclosure of all the figures, and using them to calculate yourself you have no way of knowing what kind of deal you're getting. Obviously, the payment is what you care about, but if you ensure that the cap cost is as low as you can negotiate, that the residual is what the manufacturer is offering, the money factor is what the manufacturer is offering, the drive off costs are legitimate, the low payment will be a result of all of that.
When I get done, the payment is sometimes $100 a month less than what I was originally quoted, and thats not even with negotiating the price more, thats just calling them out on things deep in the deal that aren't right. In 15 minutes my payment on a 2013 ES350 went from $830 to $690. Dead serious.
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