Ultramart

You have really good deals in USA for leasing but is it possible to get similar deals in Canada?

Please post what you got (interest rate, residual, lease ) !

Here is the kind of 'deals' we get in Canada for a IS 350 AWD F SPORT Executive (full). Those are the numbers I got from lexus.ca. The stealer gave me the same numbers but at least he told me 'we didn't start negotiating yet'.

MSRP: $54,870 (base RWD is $46,670) (all canadian dollars, multiply by 0.9 to convert to USD)
20,000 km (12,500 miles) / year
Term: 24 months
Lease rate: 1.5% (MF 0.000625)
Residual: $31,930 (58%)
Lease: $1,024 / month

For a 36 months term is goes down to 826$/month.
Lease rate 2.5% (MF 0.00104167)
residual = $28,196 (51%)

For a 48 months term:
Lease rate: 2.9% (MF 0.001208)
Residual: $25,004 (45.6%)
Lease: 718$ / month

We are far from the prices you can get for a lease in the US.

The residual seems quite low, which would explain the high monthly payment.

Do you know if it's possible to negotiate the residual value?

yycdave

I got cost + 4% on a 350 F-Sport AWD Executive. Something like $3000 off.

Plus $500 credit in the "business office".

I also got good financing terms - 48 months @ 1.4%.

Aeromotive

Salut! It looks impossible to negotiate RV... and Americans get consistently higher RV's. Americans also seem to be able to negotiate interest rate (or MF), or at least get a better one with a good credit score (correct me if I'm wrong?). All we Canadians can do is put max MSD's.
You can do 2 things

1) Negotiate the total selling price to the lowest possible using invoice (unhaggle.com)
2) Put the max MSD's you can afford

Oh and don't put any down payment!

Kimchiguy

Try carcostcanada.com. They give you the original dealer invoice cost for you to calculate how much of a profit margin they are making. If my memory serves me correctly, the profit margin is just under $5K for the IS350 F Sport AWD. The $500 bonus and 2 first lease payments are Lexus Canada factory incentives, don't let the dealer make it seem they are giving these to you as part of their negotiations. Similar to yycdave, I got about $3K off plus I got Nitrogen inflated tires and all 5 windows tinted at no extra charge.

cFoo

It depends on your market as well. If there are demands and the dealer isn't stocking then they don't care to talk to you. PM you the invoice.

Ultramart

Thanks for the reply. Tt gives me a good idea if what I can expect to get. Your numbers seems right. $3,000 off is approx. cost+4%.

1.4% interest rate for a regular financing is really good.

What do you mean by Plus $500 credit in the "business office"?

Ultramart

Salut!

I will try to get the price closest to their cost as reasonnably possible.

Max theMSD is an option but it want to try to get what I can on interest rate / MF and RD first.

Of course no down payment! :-)

Options on Lexus.ca just changed this morning.
- 39 mo lease term is now available. at 2.5%, same as 36 mo term
BUT with 39 mo term:
standard annual km is 22,155km (13,846 miles) instead of 24,000km (15000 miles)


So if I can get $3,000 off I could lease for 36 mo with 24,000km (15k miles)/year for $768 or $719 if i max MSD.
or
I could lease for 39 mo with 22,154km (13846 miles)/year for $667 if i max MSD.

That's 600USD/mo for 13800 miles/month. Does is sound like a good deal?

Ultramart

Thanks for the tips!

Yes I will check. APA.ca also offer this service for 25$.

I was wondering if it was possible to negotiate Residual Value but it looks like it's not.

Theyr profit margit on a full AWD F SPORT would be around $5,400$

Could you share some details of your deal (monthly payment, term, interest rate, annual km)?

Thanks

Ultramart

They have many in stock. :-) Maybe not the exact color and package I want but it depends on what I pay.

yycdave

They had a promotion where you get a $500 gift certificate for Tiffany's. I told them I have no use for that and I wanted the credit off the invoice. They instead gave it as credit for the "business office", which is where you can buy accessories, extended care warranty, etc. I put mine towards the F-Sport Exhaust.