mikedozz

Hello Guys, I wanted to know how much the multiple security deposits really lower the payment if you did the full 9 I think it is. I might be interested in doing this for the GS since their really isn't any lease programs or special rates. I would like to see some real numbers that people have used and gotten through lexus with this type of payment. thanks in advance. For Example, 5500 out of pocket with multiple security for xxx per month on xxx month lease. thanks.

Bushwack

FYI... the MF on a GS is 0.00192 (4.62%) and residual is 51% for a 3/36.

FWIW, I suspect a 2008 GS will be 0.00275 and 54% (if history is any inidication) when it come out in a 2-3 months.

mikedozz

I just called a dealer here in NJ and the sales rep said the most 9 security deposits would save me on the monthly payment is 50 dollars is this true, because if it is, I don't think it is worth it to shell out an extra 4500 dollars just to save 50 a month. When I could use that money for more important things, now once you go past a hundred per month saved, then its a different story.

topgun04

"I don't think it is worth it to shell out an extra 4500 dollars just to save 50 a month. "

That is roughly 11% guaranteed (assuming that you like your own credit risk) and tax free.. What is not to like about that???

I think your salesman underestimated it a little bit. The saving is determined by the cap cost (assume zero down payment, it is your purchased price) and residual (determined by the length of your lease and the MSRP of the car). For a 47K MSRP GS with 51% residual (3 yr/15k mi lease), the saving i s roughly 59 dollars a months. And if you live in a state like California where tax is paid on the lease payment, it would bum the saving up to about $64 a month. And it translate to about 14% tax free/risk free investment. The only other investment that is comparable is paying off 18-20% credit card debt (assumed someone has credit card debt). Short of pay off credit debt, it is a pretty good return for your money..

If you want to find out for yourselve how much you are going to save, either find a lease calculater on the web, plug in the MSRP/cap cost/money factor/residaul number based on the lease that you are pursuing and then do another one with 0.0009 less on the money factor(one deposit for each 0.0001 reduction on money facotor) and compare the result. Or do a hand calcuation base on this formular:

Monthly lease payment = monthly depreciation + rent + tax
Monthly depreciation = (cap cost - residual)/term of the lease in month
Rent = (cap cost + residual)*money factor
Residual=MSRP*residual percentage offered by Lexus based on the lease term (year and mileage per year).

lisalisa

two dealers ive dealt w/ told me that the MSD .0001 reduction has changed to .00008. for the max of .00072 being that is 9 MSD. they told me that this changed since jan of '07. can anyone confirm this?

thanks

Bushwack

FYI...as of 7/18, the MF has dropped to 0.00125% and the residual remains at 50% for a 3/36.

lisalisa

yah i just found out this morning...yay!! but w/ this MF can we still the MSD? and do u know how long this MF rate is for? is it until the 22nd? or the end of the month?

thanks everyone has been so helpful!

aptekcom

Funny,I am in the same boat,but am waiting until Monday. Since the lease rate expires Sunday, Monday is the start of the Lexus Golden Opportunity Event (I have confirmed this from several dealers). I figured the lease rate won't go up, but there is a good chance that it might go lower.
Did the dealer offer you the .00125 MF, or did they try to scam you and mark it up like they are trying to do down here?

lisalisa

for some strange reason, i talked to three different dealers and noone says the MF is .00125. they say thats crazy. but one did say that on monday the MF will be .00165. is this the dealer mark up. i was told the dealer can mark up to a max of .0004. I read from 2-3 different people on the internet that the MF is .00125 from the 18th - 22nd. but all the ones i talk too seem to know nothing about it. what should i do. i found the cars i wanted. and ready to sign, just as long as they agree its .00125 MF. can anyone help.??

lisalisa

ive been working w/ three different dealers and all of them seem to say they have seen nothing like this. one did say that on monday the 23rd the MF will drop to .00165. what can i do? why is the salesman telling that monday will change. is this they way of marking it up. he said he was giving me at buy rate.

thanks so much. u have been so helpful.

lisalisa

i talked to 5 different dealers today from north to south and none of them dont have the MF of .00125. They say its a crazy figure.

StevenC56

Are you dead set against buying? Since the lease values on a Lexus don't seem to be that great, maybe you should just buy instead. Just a thought.

lisalisa

i calculated buying vs. leasing and leasing was better for me. w/ buying down the mf. it turns out to be cheaper. the lowest rate i got a new car loan was 5.6%. so thats why..is there any other banks that are cheaper. my credit is over 700..

thanks

StevenC56

My credit union's lowest rate for July which we quaified for is 5.2%.

lisalisa

which credit union is that?