Aeromotive

Hi all.

Tomorrow I'm heading to my Lexus dealership for a 3IS. Looking at Lexus.ca, I see the RV on a IS350 with F-Sport Premium package is approximately 50% for a 3 year lease and 20k km (12.5k mi), assuming of course that I'm getting MSRP, which isn't going to happen. However this baffles me as I see most people in the US get RV's in the 70's%! The difference is huge... this is the main reason why payments in Canada seem to be higher.

Question is : besides negotiating total price and decreasing my annual mileage, can I do anything to increase my RV? Or is this set by Lexus Financial? Am I missing something here?

Thanks.

Edit : screenshot to illustrate what I'm saying.

an3i7rust

you can drop the money factor by leaving multiple security deposits.. but different month terms have different residuals you can't really negotiate those

gmanusmc

As far as I know, residual values set by manufacturer captive finance companies, in this case, Lexus Financial, are pretty much locked in and not negotiable. Third party lenders might be different but their money factors usually aren't as good.

Bill G

Aeromotive

Thanks guys. I can put the maximum amount of MSD's and lower my mileage to the minimum that's reasonable for me... that will help me save a few bucks but it looks like I still won't escape that Lease-End Value
Any Canadian people here?

WWM

Is the 70% RV in the US really for three year leases or was it for 2 year? 70% seems incredibly optimistic for three years. A quick search shows RVs in the low 60's for 3 year leases in the US, which is still much better than what we get in Canada. I have no idea really. My first thought was because RWD cars depreciate like a rock here, but even the RV on an AWD IS350 is ~53% for three years.

Just another way we get screwed I guess.

dbs600

Instead of increasing the "Residual Value", what about lowering the "Purchase Option Price"?

Is that possible? Have dealers done same?

Thanks.

gmanusmc

I believe that the purchase option price IS the residual value

Lost808

I think Toyota bases their RV off of the MSRP or value of the vehicle at that specific time. The RV is the amount left that you would have to pay if you chose to purchase the car after lease end. Lower RV% means lower end of lease purchase price but higher monthly lease payments. Higher RV% means higher end of lease purchase price but lower monthly lease payments. Hope that makes sense

dbs600

It is, but it doesn't have to be, at least it didn't have to be (in the past).

I was able to negotiate same on other prior leases, but wasn't able to with the IS, but wonder...

gmanusmc

I understand what you are saying but I was only referring to lease terminology, not whether or not the buyout can be negotiated or not - obviously a completely different matter.

dbs600

Hmm; So can one still negotiate a separate Purchase Option Price?

I asked, but wasn't able to this recent go around...

gmanusmc

I've heard of rare occasions of folks negotiating their buyouts at the end of a lease but don't directly know anyone who has done it. I don't worry about it because so far I've never bought out any of my leases - I just buy or lease a new vehicle when the time comes.

Perhaps someone who has done it can chime in.

Lost808

I have had a friend in the past negotiate a purchase price on a lease he was going to turn in. It was treated just like entering the dealership and negotiating a purchase price for any vehicle. The dealer wants to get rid of the car fast, as prior leased cars don't tend to sell as easy. At first they did not want to do it when they contacted him prior to the lease end. When it got to the actual day of turning it in (after the inspection), the dealer finally relented and agreed to negotiate the price of the vehicle. In that instance though, I am sure the RV was set high, so the dealer had some wiggle room to lower the buy out price.

IIRC, this was on a 2008 or 2009 Mercedes GLK.