finny76

I'm thinking about LEASING a 2014 Lexus ES350 and have received 2 quotes from Dealers.

2014 Lexus with Premium Package

Total Price: $41,303
Monthly payment: $409/month followed by 35 payments of $409.
Down: "$0" down
Mileage: 12,000/year

Just wanted to know if its a good deal and what everyone else is paying.

wasjr

Need more info:
What is the MSRP on vehicle?
What is the capitalized cost you negotiated (same as purchase price if you were buying the car)?
What is money factor in the calculation?
What is residual value %?

The capitalized cost (purchase price) is really the only thing that is negotiable that affects the payments (obviously the down payment also affects the payments) and IMO should be negotiated first, then plugged into the lease calculation. IMO what will tell you if it is a good deal is the spread between the MSRP and capitalized cost.

atoyota

In addition to wasjr's request for info, can you live within the 12K miles/year and what is the cost for going over?

finny76

Here are the Details

What is the MSRP on vehicle? $41,303
What is the capitalized cost: $36,541
What is money factor in the calculation? 00095
What is residual value %? 60%

wasjr

It looks to me like this is a fair deal. I plugged the numbers into a calculator and came up with a $411 payment, but I assumed a sales tax rate of 7% which may be high. As I mentioned, the key to me is the capitalized cost, and you have a nice discount from MSRP in your deal. I have often seen folks that look just at the payment, and the dealer has plugged in the MSRP or a nominal discount for capitalized cost, resulting in an unfavorable deal to the customer.

As atoyota mentioned, make sure you have sufficient miles built into the lease.

Max707

Looks like a good lease deal even if you buy it at the end of the lease.

joebruin

You can drop payment to $362/mo if you use MSD (multiple security deposit). 9 security deposits of $400. Each security deposit drops money factor by 0.00008. That is roughly 15% return on your money per year for 3 years.

finny76

How do i do that? Do i tell the Dealer i want to do that or request for it?

After further haggling they have got the money factor down to 00045 which is for Tier 1+ credit (720 and above)

joebruin

With new lower money factor, your payment drops to about $376/mo. Yes you just ask dealer/finance guy that you want to do multiple security deposit (MSD). Since your money factor is lowered to 0.00045, you can do max of 7 security deposits to bring money factor down to .00005, which brings monthly payment to about $350/mo. Each security deposit is equal to the monthly payment rounded up to the nearest $25 I believe. So, possibly $2625 for 7 security deposits or perhaps $2450, if monthly payment is just under $350/mo. You would save $936 over 36 months of using MSD.

here is a thread discussing MSD.

https://www.clublexus.com/forums/sho...910&styleid=13

wasjr

BTW, you can multiply the money factor by 2400 and get the interest rate, so your interest rate has been lowered from 2.28 to 1.08. I thought this rate was low, but I checked incentives in my area and finance rate is .9 and lease rate is 1.08 for 36 mos. They may have found a credit agency where you have a higher score that qualified for lowest rate.

finny76

OK here is the update. I ended up LEASING a 2014 ES-350 Nav for $405/month with "0" down 36 months 12K annual mileage allowed.

Angelli

Can you guys please help me check if this deal is a good one or I could go for better since in our lexus forum someone mention that she/he got a discount of 14.9% out of msrp

2014 ES350 ultra luxury pkg
MSRP 49,882
My price 44,225
Money factor 0.00055
Residual 34,917
Down 2500
Monthly 405.15
12k for mileage

Thanks