echelone

I've been lurking around here for a while.

I got this deal from a dealer to order the 07 is350, 999 over invoice.

Everything sounds good, but I have a question on leasing since I never leased a vehicle before. How does it work, will the current residual/money factor for the 06 be used, or will the leasing details going to be worked out when the car arrives in sept/oct? I'm planning to pay the whole lease monthly payments upfront, if that makes any difference. Is it possible to negotiate on the MF&Residual value? Any other leasing tips?

They asked me to put a $1000 non-refundable down payment, is that what everybody is getting or should I ask for less or maybe a refundable downpayment?

One last thing, is it possible if I go the dealer today, put down my down payment, but I just want their quote for leasing for now, and I like more time to compare rates with other banks/credit unions, and finalize my decision on whether to lease from LFS or not later when the car arrives?

thanks

liverichly

Usually lease rates are only good for that month, since they are like interest rates, they can change. You've been offered an '07? Are they talking about the '07's just like they are the '06's, or are they talking about more packages, colors, etc.?

You are planning on paying all lease payments up front, in one bulk payment? If so what happens if your car gets totalled? You just lost all of that money, and would then need to get a new car.

I personally wouldn't put money down on a lease unless it helped the payments out by more than tbe dollar amount you put down over the life of the loan.

echelone

So if I put a downpayment today for a car that will arrive in September, which lease rate will I get, current one, or september's?

I have only talked and negotiated over the phone on the 07 model, and they told me they can't give me any more specifics unless I go down to their place. I'm going down there later, so I'll give an update if they have any more info with the 07 packages, colors, etc.

Griffey222

They can always give you more specifics over the phone. If they tell you they can not, they are lying. It's all a ploy to get you in where pressure is greater adn you have the bad A$$ IS 350 sitting in front of you. How can you say no. As for the lease rate. It will be Septembers rate...

liverichly

Can't blame them for trying to get you down there though. Keyes Lexus, which is about an hour drive from me, says they don't do any price talk on the phone - only in person. But they will beat anyones price all you have to do is walk in - so they say.

Style2k6

Are you referring to lexus 1 pay option?

1Pay Lease

This program saves you money and allows you to avoid the hassle of monthly payments. It permits you to prepay all monthly payments in a single total lease payment at lease signing. This single total lease payment is less than the amount you would pay over the life of a conventional lease.

echelone

Does anyone know how many basis point will the money factor go down with the 1Pay lease?

lexuslover

i don't know how many bp, but the fact that you pay 3 years of payments up front means they are discounting the payments for present value, thus "saving you money". they may reduce the money factor a bit for lower risk, but the main savings comes from the fact that you are paying early.

the lease money factor will be the one in effect when the car arrives. you can't really negotiate that now when the car is a few months away. you will have plenty of time to get rates from other banks as well.

and i agree with the above posts, prepaying can be a risky proposition considering what would happen in the event the car was totaled. usually insurance just gets you out of the lease, but you won't get any money back. it's not the same as totaling an owned/financed car. but you should check with your agent. you are probably safer to put your whole payment in an interest bearing accont or money market and then make your payments automatically thru there. you'd be out the same amount of money as if you did the 1Pay option.

i think most people have been doing refundable deposits. $500-$1000 sounds about right though.

p.s. there is another option thru LFS called MSD (multiple security deposits). you are essentially putting down a lot of deposit to lower your MF, but you are getting the refundable deposit back at lease-end. but of course this is a large cash outlay, but at least you get that money back if the car is totaled by insurance.