kgreddy

Is it based on the "purchase/negotiated/sale" price or the MSRP?

The dealer is quoting me the Residual on the MSRP.

MSRP is $46.5K
Sale is $43 K

At the end of the lease the residual ( 50% of MSRP ) is $23,300 ( instead of 21,500 ?) is not that I care that much about the residual but if I want to purchase it at the end , i don't want to pay close to $2k more.

Your input please ....

rxdriver

Based on other posts, I thought that the Lexus "standard" residual value was around 59% of MSRP for 36 months.
The higher the residual, the lower the lease payments, but of course then it's more to buy-out at the end of the lease. Interest rates are probably only going to go up from here, so if you're serious about buying it later then you may want to figure out what it would cost to buy right now. The current money factors on leases represent less than 1% APR, but you might not be able to get even 5% APR three years from now on a loan for the buy-out.
And if you're not serious about buying it later, then negotiate the residual value upward!

Foster 525

Lexus Financial leases is 59% of the MSRP of the vehicle at the end of the 3 years. I just picked up new my 07 RX yesterday.

kgreddy

thanks for your replies.

the 3yr lease is based on the 3500 cap reduction and i am looking at 4yr term with 0 down.

I am not sure whether should I go for 3/4 yr and with or without Navi ,etc and on the 4 yr lease , I am being quoted as below

for 07 with PP ,
msrp $42,650
sale $ 40,500
$499/month ( mf 001615 or something turning out to be 3.9 APR )
with 50% residual ( of MSRP ) buyout at the end for $21,375.

Can i negotiate the MF? This is the first time I am thinking of leasing a vehicle.

Fikse

there is a lease deal on the lexus website for the RX350, 36 months, 3500 due, and 429/month...

better check this first:

$429 / mo [1]
36 months - $3,529 Due at Lease Signing
Includes 1st mo. payment, acquisition fee and cap.
cost reduction. Excludes applicable taxes & fees.
No security deposit required. On approved credit.


It's easier than ever to travel in style and luxury. Announcing the Special Lease Offer. You'll enjoy being behind the wheel of the innovative RX 350. For more details, see your Lexus dealer.

[1] Available to qualified customers through Lexus Financial Services and participating Lexus dealers on 2007 RX 350 Premium Package Plus, cargo mat, wheel locks. Offer based on MSRP of $43,933 including delivery, processing and handling fees. Final payment may vary, depending on availability of optional equipment, final vehicle price and your qualifications. You pay maintenance, insurance, excess wear and tear and $.20 per mile over 12,000 miles/yr. 36 monthly payments total $15,444. Lease end purchase option $25,920 plus taxes & fees. See participating Lexus dealer for details. Not available in HI. Must take delivery by 6/30/06.

rxdriver

You can negotiate anything!
You've already done the first thing right - settle on the price of the car irrespective of financing. Then, you can negotiate the residual value (% of MSRP) and the money factor. Finally, find out exactly how the "money down" breaks out - usually it's a mix of 1st payment, security deposit, and "capitalized cost reduction", which is like cash down/trade-in value if you were buying it outright. Make sure all of those numbers make sense to you.
The money factor is APR divided by 24. The number 24 is constant - it's not related to the length of the lease. To determine if the money factor is good, multiply it by 24 and see how it compares to the financial rates if you were to buy it. Others have posted that their money factor was under 1% APR (1% = .01; money factor = .0004), so there's a benchmark.

Foster 525

Lexus Financial is honoring MF of .00145 and.00165. That special is based on the MSRP of $43933. But the selling price and MF are negotiable. I heard the MF will go up after 6/30 on the RX. Better act fast. They need to clear out inventory, it is the end of the month now. Best time to deal.

kgreddy

I was very close to make an offer on the selling price and work 4 yr lease numbers

$39,000 with PP ( msrp 42600 ) or $42,000 for Nav ( msrp 46,500 )

But when the dealer quoted me the 50% residuel on the MSRP , it made me thinking. If I buy it at end fo the lease , I would be paying 15 to 25 hundreds more than I were to but it now ( assuming the I get it for my offer price )

As you guys pointed out , it might work out the same if I compare the APRs now to 3/4 yrs down the road ... I'll nogotiate the numbers again and make a decision in the next couple of days.

Wish me luck and and please advice me what is a good price either to lease or buy.

appreciate your help.

tfischer

You did not mention before that buying was an option.

In almost all circumstances, and especially with cars that hold their value like the RX, in the long run you are better off buying the car outright than leasing. After all, the lessor is going to sell it to somebody else at the end of the lease, and make a profit on the entire buy-lease-sell transaction. Why not do that yourself?

Foster 525

Good thing about leasing is that it requires minimum money up front. But if you have problems with it, you can rest assured it is not yours, and you don't own it. Different strokes for different folks I guess.

rxdriver

This thread recently hashed out a couple of lease scenarios and talked about lease vs. buy a little bit:
https://www.clublexus.com/forums/sho...d.php?t=219125