Indecisive

Has anyone tried multiple security deposit leasing in Nor. Cali. ? I was wondering how much of a difference it makes compared to the standard down payment leases. But for some reason about all the dealers at varies lexus dealerships doesn't know what this program is. One said that I won't get all my deposit back. Thanks for any replies in advance. Was hoping for my first post to be pictures of my new ride
Thanks

rominl

iTrader: (4)

?! whoever told you about those bagus information, walk away from them and dont' go back. they are all idiots. it hurts when they dn't even know about their OWN policies well...

anyway, i am in norcal, but i got my car from socal, and i used the multiple deposit plan. it's on my sc430, but it's the same for all lexus. basically you put in a certain amount of deposits, and they have to be in multiple of your payments. each payment will lower the money factor by 1 point i think, 9 points max.

at the end of the lease, you WILL get ALL of the original deposit out, EVERY cent of it. so it's very different from downpayment, coz' once downpayment is in, they are gone. you are not going to get anything back.

basically when you are leasing a car, downpayment is a big no no, coz' you don't own the car and you are not getting anything back in return after the lease. the multiple deposit plan will help coz' you get the money back, and you lower your monthly payment.

for example, if the payment is like 840 bucks a month. with multiple deposit plan, if you put in 7560 bucks (that's 9 payments), then maybe the monthly payment is lowered to say 780 bucks. that's 60 bucks saving every month for the entire lease (assume 36 months, that's a good 2160).

and btw, i got this method through my DEDICATE sales by then, her name is elizabeth and her screen name is here AsianGirl007. she's simply one of the most knowledegeable lexus sales out there i have seen so far.

topgun04

I did the multiple deposit with Lexus in Pleasanton for both an 02 SC430 and 02 LS430. The finance manager did know about hte program back then but they call Lexus financial to find out. You can call Lexus financial to confirm it as well. Here is how it work, each deposit you put down lower you money factor by 0.0001. You can do a max of 9 deposits so you can reduce your money factor by a total of 0.0009. It depend on how expensive is your car. For SC and LS, it is about 100 to 110 or so a month (I remember the SC 430, our payment is 830 a month including tax and 0 cap reduction (pay the license, first payment, acquisition fee etc upfront). You can fingure out you saving by:


lease payment = depreciation + rent + tax
depreciation = cap cost - residual / total month of lease
rent = (cap cost + residuel)*money factor
tax = (depreciation + rent) * local tax rate (mine is about 0.0825)

residual is a percentage of the MSRP. I think for 36 month 15kmi without NAV is roughly in the 58 - 60% range (check with car_man in Edmund board or someone in here). For IS350, I would guess the saving including tax may be 60-70 a month (for 36 months, it will run abut 2000 to 3000 saving so it is worth pursuing). And you get it all back if you don't miss the payment or damage your car. (by the way lexus has gap insurance so you probably get it back even if you have an acident and you insurance don't cover all of it.. but you can check)..

Indecisive

Wow, thanks for the replies. Yeah I have been speaking with Elizabeth but I'm not quite ready to go all the way to So.Cal just yet until these ddealerships that do not know what they are talking about drives me totally insane.
So, I guess I'll just keep trying other dealerships here in Nor.Cal first.
One concern is that if it is a security deposit when I return the car at the end ....... would dealerships try to be **** and overexaggerate wear and tear stuff that is normal for 3 to 4 years cars and try deducting it from the security deposit?
thanks







PS: Thanks to whoever moved thread

rominl

iTrader: (4)

i don't see why they would be **** about it. but that's not really my concern coz' i am buying my car out in 3 yrs, so that's why i didn't pay much attention. i am sure if you keep everything cool it should be fine