lattemocha

My lease will reach the maturity date in a couple of months, and I was wondering if there is any loyalty incentive for leasing new Lexus again through LFS. I have RX and considering another RX if Lexus has additional discount for a current LFS customer...

RXOwner

I am sure that Lexus will reward you with a discount. Lots of money to play with in these transactions and their job is to make us feel like we are getting a good deal.

Only way to know is shop around in other cities to see.

JT4

^^ I agree, I'm also pretty sure Lexus will try to keep you with the brand. Actually if you're only a couple of months before your maturity date, I'm surprised Lexus hasn't contacted you yet to get you out of your current lease early and into another LFS lease.

sirtiger

Its usually $500 towards another lease

lattemocha

Thanks. I got some kind of coupon few month before about the lease renewal, but I didn't really take it seriously and threw it away. Contact the dealer or LFS?

sirtiger

I personally don't think LFS will care.

The closer you are to the end of your lease payment, the better your bargaining positioning will be (less payment the dealer has to make).....of course that depends what promotion there are running at that point in time.

sandy14

LSF will usually refer you to the dealer.

john221us

Lexus finance gave me a coupon for the last three months of my lease (I turned it in early).

gmanusmc

The payment has nothing to do with the dealer - they got their money when LFS funded the entire transaction when the lease terms were agreed to - no different than conventional financing - dealer gets paid for the vehicle up front.

sirtiger

I am not an expert how this all works...every lease I'd done, dealers seem to make the final payments to the leasing company....sometimes they buy it outright. I assume they keep it & resell it at a profit.

john221us

That is a point you can negotiate (they actually just add it to your new lease). This is different. Lexus Finance actually forgave the last three payments, so the dealer doesn't have to bury it in the new lease.

gmanusmc

Sometimes the vehicle approaching lease end has a market value equal to or greater than what the remaining payoff is and the dealer will treat it as a trade in and present it to the customer as waiving the final few payments.

sirtiger

Thanks for the insight bgaerttner. The two experiences where different dealers said they actually make payments to the leasing company. It's possible it's not true or there is an alternative scenario where it's a trade in and waiving scenario.

I do know for a fact that after visiting so many dealers in my experience is that my bargaining position is best when the leasing is closest to the end of the term

coolsaber

If you are at the end of lease do the following:

1) Check if your over the lease limit in mileage
2) Calc your wear and tear on the vehicle that you might need to do before handing it back
3) Check your residual and current Market value only to ensure you dont have positive equity in it
4) Then check with lexus dealers for any time of spring forward deals. Usually as everyone said the bonus comes in early termination of the lease. Discounts on the vehicle depend on the vehicle itself. If its in demand whatever the going rate is for that model expect that.
5) Loyalty bonuses are usually less then conquest bonuses, but again research it to see what they offer.
6) Best time to get into a new lease is at then end of a quarter or end of year since theyre going to throw as much money at customers for a new sales figure.

currently I havent seen anything besides the standard promotional rebates and the $399 month lease special on the RX

EDIT: #6 only applies to off the lot, immediate delivery before quarter/EOY only. if its special order, the day you sign the papers and drive the car of the lot, is that day for Lexus. I know other mfgs have different ideas of "lock-in" dates

sirtiger

^^excellent post.

I'll add that a pre-inspection by the leasing for company can be done a bit early. My buddy painted up his many scratches on his bumper before handing it back in to ensure no surprise bills at the end.