chiefguy

Hi..
so I went to test drive the GS-F Sport yesterday...great car..loved the ride, fit, finish, etc..

While in the dealership trying to figure out numbers on a 36 month lease, 10,000 miles per year, residual 63% and money factor .00190, they mentioned the option of using multiple security deposits as a way to get a better rate on the money factor....so, 9 security deposits gets you a .0008 reduction on the money factor..(so the revised factor would be .0011...

has anyone gone this way? Also, not sure they were giving me the best deal...i know how to calculate a lease payment and told them I would check their math when I got home and, of course, my calculations came in much lower then what they quoted me...really frustrating..

any thoughts would be helpful...
thanks

S420merc

What are u calculating the price of the lease from MSRP
Also are u adding the tax if there is one.

caddyowner

I always take my iPad and run calculations as they do them to verify everything.

jjscsix

I just leased a BMW 550. I put down the max of 7 security deposits which gets you a reduction of the MF of .0007 for each security deposit (hope I put enough zeros in their). The bottom line is that I put down $6750 in MSD's which will save me almost exactly $50 a month X 36 = $1800 savings. You can't make that kind of return on your money anywhere else unless you are willing on taking a very high risk.

faifai83

we need to know the MSRP, adjusted cap cost, money factor,and lease acquisition fee...

bmkj

I did it on my GS. Took delivery on 2/29. My 9 security deposits @$650ea came to $5,850.
That saved me $75/mo on my 36 mo. lease (a 15% annual rate of return). This was the second time I did MSDs. First was a RX350 and I got my money back within a few weeks of turning that car in.

chiefguy

the MSRP was $55,407, money factor was .00190, but reduced to .00110 with the multiple security deposits, $700 acquisition fee, adjusted cap cost $53,407

faifai83

I come up with $631/mth before taxes

http://www.leaseguide.com/calc.htm

rominl

iTrader: (4)

i did MSD for my ls460l and gs350. it works pretty well (by itself), whether it's a good lease or not still depends on the other numbers (cap cost, money factor, residual).

given that the money factor on the 3gs is nothing spectacular, MSD gives a good incentive

S420merc

I dont consider that a good deal cause u are calculating the lease of full MSRP
So u are paying full price for the car.

zoombie99

I just discovered you can't use MSDs in New York State due to a state law

zoombie99

I am going from .00190 to .00128 . How did they calculate your reduction?

UPDATE: I got the money factor reduced to .00118.

zoombie99

WORD TO THE WISE: If you are using MSDs, have the dealer confirm to you in writing that you are getting the lowest money factor offered by LFS.

zoombie99

Here is the deal: Lexus Financial Credits lowest rate is .00190 for Tier 1 plus customers. If you are Tier one, you can lower it to .00118 if you give the max security deposits allowed which is 9. The deposit is your monthly payment rounded up to the nearest $25.00 I believe. So if your monthly payment is 595. It would be $600 for each MSD with a max of $5,400 on that example. I paid $6,300 since my payments were right below $700.00.

WARNING. Some dealers add a vig to the rate hoping the customers will not notice it. YOU MUST have the dealer confirm to you in writing that you are getting .00118. That's how I caught my dealer and had it adjusted.,

The deposit will be returned at the end of your lease.

faifai83

Trust but always verify.

I'd suggest making sure that the numbers are crisp before signing on the dot.