feartheyu

Hi everyone, I'm looking to upgrade my vehicle. This is my first time possibly leasing my next car, which is the IS350 F-Sport.

Here is what I've been offered:
2014 IS350 F-sport +Navi / ML MSRP: $48,548
Adjusted invoice price is $43,900. After tax $1397, GA Ad valorem ~$3060, title and non-tax fees: $45. Which brings the total balance of the car to ~$48,395.

I'm offered $644 for 27mo, $615 for 36mo, 584 for 48mo. 10k annual miles. *ADDED INFO* with $0 down.
Residual value was 72%, 65%, 54% respectively.

Is this a good deal on a lease? What else should I be considering? I'm also considering buying the vehicle at the end of the lease. Would I be paying sales tax at purchase time too?

Thanks in advance.

gmanusmc

Sounds pretty high. What is that Ad valorem ? What do you mean by "adjusted invoice?"

Bill G

toyotatom

I think its like a personal property tax.

feartheyu

GA ad valorem is registration tax. Instead of paying it every year on your birthday, it's up front, and then it's like $20 registration afterwards.

As for the adjusted invoice price is the actual price of the vehicle.

toyotatom

Couple of questions
Are you including the ad valorem to your lease payment or is that a one time payment, if you are for example on a 27 month lease the ad thing is costing you around $113.00 a month right there.
Do you know what your money factor is by chance, it should be a number like .0015, ask the dealer what that is, that is negotiable with the dealer. Money factor is like a finance charge on the vehicle charged for the duration of the lease.
Is that after tax($1397.00) a one time payment of do you pay a monthly sales tax on the lease also.
Let us know

toyotatom

If your including the ad valorem to your lease then the prices you got are fairly close from what I can tell. If you pay it up front you can knock your payment down around $115.00 or so on a 27 month lease, $85.00 on a 36 month lease and $63.00 on a 48 month lease.

feartheyu

I'm guessing the ad valorem is divided in the monthly payment. I'll have to ask about that and make sure.

Would this lease offer be a pretty good deal?

toyotatom

Based on numbers you gave for the 27 month lease I come up with $622.00 using a MF of .0015. It looks like the dealer is adding the acquisition fee of $700.00 to your payment also, if they are then the payment is pretty close to what they told you. I guess with no money down its not too bad, right what you could expect to pay.

gmanusmc

Well....that's actually called adjusted cap cost in lease terminology - using "invoice" kind of confuses it with the word folks usually understand to mean dealer's cost of the vehicle.

I don't understand why the dealer gets involved in personal property tax - that's usually done through the county tax officials - ugh.

Bill

crazych42

I agree with others that those numbers seem a little high. Much of it is that they are adding all the fees to the sales price. If you pay the taxes and fees out of pocket your payment goes down significantly. You may want to verify the MF as well. The current MF for tier 1 lessees is around .0085. I'd also consider MSDs which will lower your MF by .0007 for each MSD up to a total of 9. This effectively will reduce your payment $40-50 a month. Do a search on MSDs on here if you aren't familiar.

toyotatom

Crazycg42, you mean .00085 I hope.

Bearcat

So true that many people think invoice is dealer cost...I bet there are less than 3 people in the building who know what true cost to the dealer. I'd imagine it's about 60% of MSRP. They really want you to think they make $1000-1500 on each sale? Not happening'.

redlined2

Isn't it .00085. Also, I thought MSDs lowered by .00008 each for a .00072 reduction. Maybe I'm wrong, I really don't know for sure.

Also, I agree. There are lot of people reporting below invoice, so I really think Lexus has inflated invoice pricing (unlike BMW for example).

gmanusmc

Correct - invoice is only a reference point - it's the only figure consumers have to use other than msrp. Depending on sales volume, there are certain amounts the dealer receives off invoice that ultimately determines their true cost. But if you think their true cost is 60% of msrp, you've got quite the imagination.

Bearcat

It obviously is different from company to company, 60% probably being closer to a GM/Ford dealership. I just saw a Ford commercial last night offering $15k off new 2014 F150. How do they get that money back? Do you think Ford writes the dealer another check for $13k to make up for the loss. I doubt it. There is big buck padding.