Woa, that's alot of information to digest.

As with any lease, 3 numbers are important: money factor, residual, and sale price (as always). Lease term x miles driven determine the residual.

Money factor is typically fixed, but some dealerships seem to get slightly better rates, at least from my experience shopping for Lexus 9 months ago.

I'm sorry, I did not follow all the posts carefully, but you stated from the beginning you have been leasing from Lexus previously. I believe you get at least $500 off just for customer loyalty (I may be mistaken, of course).

Your 'cap cost' listed does not explain where the discounts came from. I would start by negotiating the price of your vehicle at or close to invoice (check kbb.com). THEN the loyalty discount, etc.

Other figures seem in tact, except its never a good idea to put any money down on a lease.

Also, I recommend you negotiate some free service. These 5k services that cost over 200 are simply absurd.

 

Ok DetailsGrl - I put all of your information into a spreadsheet that I use and it looks like the numbers match up (within $2-$3) but I have a couple of quick questions:

1. I want to confirm that the tax is paid up front and NOT part of the monthly payment in your state. If that is true then the numbers are in line in terms of the calculations.

2. Did you check to make sure that your money factor and residual matches what Lexus is offering right now? There is are a few websites out there that will give you that info, or I'm sure someone on this board would be willing to share that. I haven't looked at that info since we leased in August so those numbers wouldn't help you at all. You would definitely want to compare what they are offering to the known Lexus Financial numbers to make sure you are getting the best MF and residual.

3. Assuming the above is true then you are basically paying $1700+ out of your pocket to lower your monthly payment to about $499. Not the end of the world but it really just comes down to whether you want to put upfront money into a lease. Most will recommend you do NOT do that because it is lost money if something happens to the car during the lease. Also, you should compare the return on that money vs. what you'll save. Basically, if you put that $1700 in a bank account and have trouble making a $60 more/month payment, you would have that $1700 available to make up that difference. That's quite a few months. You will probably find you don't even need to dig into it. Either way this is your choice but it's good to hear from other people about their opinions on this issue.

4. Finally, I would try to figure out what others are paying in that area for a similarly equipped car. Going back to 'cap cost' and all of that confusion from your earlier posts -
You are basically paying $41,216 for that car. The sales person is calling this the 'starting cap cost' but it's really just what you are paying for the car - or the sales price. It shouldn't matter if you buy or lease - you should be able to get a sale price in line with what most are getting on these boards. Take a look or post the options and see what folks are paying. I don't know what invoice is on that car but you should probably be close to it.
The $39,448.94 TRUE CAP COST is what the lease will be based on for the depreciation portion (that number - the residual amount). The lower this number, the lower that portion of your payment. However, you have to note that the only reason you are getting the cap cost to $39,448 is because you are paying $1767 to get it there.

Forget the down money for now and just negotiate that sale price. You already know the taxes and the fees. Now just focus on what you should pay for the car. THEN you can decide if you want to put money in to lower the true cap cost.

So in short:
- check the boards to see what others are paying and make sure your SELLING PRICE is in line with those numbers to make sure you are getting a deal you are comfortable with
- Verify the lease numbers and make sure they match Lexus Financial or compare them to Lexus if they are using a different bank
- Decide if you want to put any money in up front other than the fees and taxes

Hope that helps - good luck!

Jay

 

Given the salesman's earlier goof up with the tax amount, I ran this past the state Dept of Revenue, and yes, all taxes are paid up front--none are wrapped into the monthly payments.

I'll check that first thing in the morning (dealerships are closed on Sundays here).

That's where the sales guy keeps playing word games. I've repeatedly told him my goal is *not* to pump the downpayment up to max out my upper limits, but to aim, instead, at the lowest possible downpayment. His response is always to avoid the statement entirely, then pressure me for the signed application.

Of course, yesterday, he threw in "We've written an order for someone else for this same vehicle, and will need to give it to them if we don't have your paperwork right away."

Yes, this does appear to be in line with other local purchases for an identically equipped car, according to all the calculators and websites I've found.

This helps like you can't imagine. A heartfelt thanks to all of you who have chimed in on this deal.

Tomorrow morning, I'm going to contact the sales guy, and if I continue to get the run around or full court press, I'll ask to speak to the sales manager. If that doesn't get me to a comfortable place, odds are good my reaction will be to say "See ya in six months," and chance it. Given the sales guy's pressure, my guess is he needs December numbers, big time (he's new, remember), so who knows...?

While I adore every Lexus (well, except for one lemon a couple of vehicles ago), the "art of the deal" does nuthin' for me. Feels like tooth extraction drawn out over a two week period.

Of course, you guys are the wonderful novacaine that's made getting through this less painful. Thank you!

 

Glad to help!

I think you have a good approach now. I would definitely tell him to let the other person buy the car if he is putting that much pressure on you.

In my opinion - it's time to talk to the sales manager anyway. Just a simple call that explains that you don't like all of the back and forth and the pressure and that you would have already consummated the deal if it weren't for those issues. Let him/her know that you don't have a 100% comfort level with the salesperson, and blame it on the fact that the person is new (keep the personal part out of it).

It sounds like, if you are ok with the actual sale price of the vehicle, that there really isn't much more that you need to consider if all of all of the other factors match up.

Did you talk to Lexus about extending the lease yet? If so, I would get that process rolling quickly so it gives you the most leverage and options. You can stop that process or cancel the lease whenever you want and there are no additional charges for any of that so there really is no risk and all potential upside for you.

Good luck and let us know what happens.

Jay

 

The current "best interest rate" for leasing a 2010 RX350 is .00220 or 5.28% (money factor X 2400).

This is for people with a FICO at least in the 740-750 area and above, considered by Lexus Financial Services to be their "Tier 1+" level.

You are being charged .0026 which is 6.24%, a bit higher. This is either because...

a. The dealership bumps up LFS' lease rate to gain profits on the financing; as stated before, they will claim that "Yes - that 5.28% is our buy rate - we always make it a bit higher to cover our overhead expenses etc etc."
b. Your FICO score is lower than Tier 1+

If your FICO qualifies you for Tier 1+, demand the .0022 rate.

Hard to believe that your State requires all tax money upfront - that removes a prime benefit of leasing vs. purchasing a vehicle. Oh well, to quote a famous politician - what is - is.

Your discount off the window sticker to get to the gross cap price (before your drive-off money) is ok but not that great vs. other parts of the country. It might, however, be the best deal you can make from a dealer site that's a reasonable distance from your home.

I really dislike the comments and pressure your sales person is applying to your negotiations - the RX350 AWD is simply not that rare a vehicle - but, again, that could be subject to your geography. That's the way I expect to be treated in a Honda/Toyota/Chevy dealership, not a Lexus dealership.

Given all this, and that fact that you do not seem to a be a desk-pounder when it comes to these deals, right? - this might work for you -

a) As the previous poster suggested, call Lexus Financial and get yourself ready to extend your lease that expires soon. Make sure you discuss getting a 3-6 month extension and what, if any, penalty there is for cancelling that extension early (I don't believe there is a penalty but you need to make sure for peace of mind).

b) Once you have that in place, check the website of your chosen Lexus dealer. All the ones I've seen have their staff listed, usually with their email addresses. If not, you can get their general email and/or fax number. Write a short note to the owner (if he/she is listed) and copy the General Sales Manager - to wit:

"Dear ----- copy: xxxxxxxxxx

I am writing this because you might not be aware of how prospective customers are being treated.

For several weeks I have been discussing the lease of a new 2010 RX350 AWD with Mr. so&so.

As a current LFS customer with a RX lease expiring later this month, this has proved most frustrating for two primary reasons - first, I am unaccustomed to the pressure tactics being employed to close my deal; I would expect these techniques ("To get this deal, you have to take a color you don't want from our lot - and if you don't, I have another party waiting to buy it") in a Toyota or Honda dealership, but not yours.

Second, the lease numbers keep changing - from an incorrect tax rate to a interest rate higher than announced by LFS for December Tier 1+ transactions (6.24% vs. 5.28%).

I wanted to drive away this month in a new RX from your dealership - but, instead, I have no recourse but to contact LFS this week and extend my current lease. Perhaps next year would be a better time as the year-end pressures will be gone.

Thank you for your time.

Sincerely,

xxxxxxxxxxx"

Can't hurt.

Good luck.

 

Hi all, new to the forum, but not to Lexus vehicles, just picked up my 3rd Lexus lease today, a 2010 RX350 (Silver /w Black Interior, Nav, Comfort, etc.) in NorCal. I'm working on a post of my impressions of the vehicle compared to my previous vehicle (2006 RX350, which I loved), but thought I would share my lease experience here since it seems relevant.

I was previously paying $539 for a 39 month/12k mile lease on a 2006 RX350 w/ Premium Plus - No Nav. I had some positive equity on my previous vehicle (2003 RX300) which gave me $1500, so I applied it to drive off and a about $300 down. My lease was originally up in April of this year, however, there was really no MF support and leasing essential the same vehicle in a 2010 would have been $100 more a month. LFS allowed me to extend my lease 6 months (then another 6 months) which allowed me to make to D2D. Had been looking over the buying experiences posts on Edmunds.com so I had an idea of what I should be paying (48800 msrp,4300 negotiated price, .0022 MF, 62% residual, 36month/12k), which was about $590 w/ CA tax for a 2010 RX350 (w/ NAV, 48.8k MSRP).

Back in April I had previously stopped into my would be dealer and spoke to a salesman who was recommended to me, we both quickly determined the rates sucked and he suggested I extend (I also made it very clear I was a no BS kind of guy). I walked in yesterday unannounced, saw him, within 30 seconds, he says, hey rates are good now, you should be around $580-$590 for what you want. I'm thinking great this is gonna be easy. They located the color and interior I wanted. I was hoping I had some positive equity on my '06, however, it didn't work out. I did get them to buy it from me for the payoff, which helped, because I would have definitely had to replace the tires and there was a gash in the bumper that would have needed to be repaired.

Final deal worked out as follows:

MSRP: 48,400
Negotiated price: 42500 (I believe this is below invoice)
Residual: 62% (36months/12k miles)
MF: .0022
Nothing Down
Drive off: 1221.22 (1st month payment + CA registration aka rape)
Monthly payment w/ tax: $585

I'm pretty pleased with the deal and the experience. I am hope their service guys are as easy to deal with. Wish I could say the same thing about the car, having a little buyers remorse, partly because I really liked my old car and partly dealing with the changes of a new car (features lost, features gained, etc.).

Look for a post on my impressions in the near future.