Is This a Good Lease?
12-07-06, 01:19 PM
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Is This a Good Lease?
Hi guys, newb here. I am looking at leasing an IS350 with the following options:
Luxury Plus Package
Navigation w/ Mark Levinson
XM Radio
Intuiive Parking Assist
Preferred Accessory Package
Here's what I got from the leasing co:
The negotiated price of the vehicle is $41590
36mth $672.72/mo downpayment $1054.43
48mth $628.34/mo downpayment $1010.05
Residual for 36mth is 57% $25548.54, money factor is .00236
Residual for 48tmh is 48% $21514.56, money factor is .00235
This is for a 15K mile/year lease, BTW.
Any good? Can I do better? Any advice would be most appreciated!
I know a bit about leases, mostly what I've read on some lease websites, but thought I might as well get a business use tax break on this car rather than buying. I also wanted to have my drive-off as low as possible.
Thanks in Advance, Lexus Lease Gurus!
Luxury Plus Package
Navigation w/ Mark Levinson
XM Radio
Intuiive Parking Assist
Preferred Accessory Package
Here's what I got from the leasing co:
The negotiated price of the vehicle is $41590
36mth $672.72/mo downpayment $1054.43
48mth $628.34/mo downpayment $1010.05
Residual for 36mth is 57% $25548.54, money factor is .00236
Residual for 48tmh is 48% $21514.56, money factor is .00235
This is for a 15K mile/year lease, BTW.
Any good? Can I do better? Any advice would be most appreciated!
I know a bit about leases, mostly what I've read on some lease websites, but thought I might as well get a business use tax break on this car rather than buying. I also wanted to have my drive-off as low as possible.
Thanks in Advance, Lexus Lease Gurus!
Last edited by BRBJackson; 12-07-06 at 01:48 PM. Reason: Corrected Money Factors
12-07-06, 01:38 PM
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For about 50-100 dollar less per month, you can get a BMW 335 with nav which supposedly costs more han an IS. I think your money factor is not correct. Do you have the decimal point right?
12-07-06, 01:47 PM
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Whoops, that's what I got from the leasing co, so I called them up, and yes, the MFs were off by 2 decimal places. Thanks for the heads-up!
12-07-06, 03:57 PM
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actually those money factors SHOULD be correct. all the money factors i have from lexus financial right now start with .00 followed by the other numerals. FYI - the way to convert your money factor to an approximate apr is to take the money factor and multiply by 2400
12-07-06, 04:01 PM
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he corrected his post, they were wrong.
12-07-06, 04:57 PM
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Sounds good to me but I dunno if that's a Lexus MF...too low, you might wanna check for turn in fees and buy fees. TMCC doesn't have any but the factor will be a lil higher but you can put down up to 9 sec deposits and lower your factor 10 basis pts for each one. Wells fargo and bk west have good MF's but have other charges as well.
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12-07-06, 10:24 PM
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Cool, great info. I'll be asking for a complete lease contract before I sign anything. Keep the comments coming, thanks!
PS: Right, I DID correct the MF from my OP.
PS: Right, I DID correct the MF from my OP.
Last edited by BRBJackson; 12-07-06 at 10:36 PM.
12-08-06, 11:18 PM
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"36mth $672.72/mo downpayment $1054.43
Residual for 36mth is 57% $25548.54, money factor is .00236"
If your sales tax is roughly in the 8% range, then the number work out. But you should consider the 9 deposits, it readuce the money factor by 0.0001 for each deposit. The rent (or finance) portion of the lease will go from 160 a month down to 98 a month. And your total monthly payment including tax will go from 672 down to 609 a month. Over 36 months period, you would save about 2268 (you also pay slightly less sales tax also). The downside is that the 9 payment will cost you about $5600 or so but you can get it all back when you lease end. It works out to be about 12% return of your 5600 compounded and tax free.
Residual for 36mth is 57% $25548.54, money factor is .00236"
If your sales tax is roughly in the 8% range, then the number work out. But you should consider the 9 deposits, it readuce the money factor by 0.0001 for each deposit. The rent (or finance) portion of the lease will go from 160 a month down to 98 a month. And your total monthly payment including tax will go from 672 down to 609 a month. Over 36 months period, you would save about 2268 (you also pay slightly less sales tax also). The downside is that the 9 payment will cost you about $5600 or so but you can get it all back when you lease end. It works out to be about 12% return of your 5600 compounded and tax free.
12-09-06, 07:09 AM
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"36mth $672.72/mo downpayment $1054.43
Residual for 36mth is 57% $25548.54, money factor is .00236"
If your sales tax is roughly in the 8% range, then the number work out. But you should consider the 9 deposits, it readuce the money factor by 0.0001 for each deposit. The rent (or finance) portion of the lease will go from 160 a month down to 98 a month. And your total monthly payment including tax will go from 672 down to 609 a month. Over 36 months period, you would save about 2268 (you also pay slightly less sales tax also). The downside is that the 9 payment will cost you about $5600 or so but you can get it all back when you lease end. It works out to be about 12% return of your 5600 compounded and tax free.
Residual for 36mth is 57% $25548.54, money factor is .00236"
If your sales tax is roughly in the 8% range, then the number work out. But you should consider the 9 deposits, it readuce the money factor by 0.0001 for each deposit. The rent (or finance) portion of the lease will go from 160 a month down to 98 a month. And your total monthly payment including tax will go from 672 down to 609 a month. Over 36 months period, you would save about 2268 (you also pay slightly less sales tax also). The downside is that the 9 payment will cost you about $5600 or so but you can get it all back when you lease end. It works out to be about 12% return of your 5600 compounded and tax free.
12-09-06, 10:00 AM
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One thing to consider, the multiple security deposits are not always refundable - if you total your IS in an accident, you could lose all your deposits. All LFS leases have gap insurance, so if it were me, I would not put down any security deposits, this way should your car get totaled or stolen, you won't lose any add'l money.
12-09-06, 11:55 AM
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Mutiple desposit
[QUOTE=socalJD;2285788]One thing to consider, the multiple security deposits are not always refundable ]
Don't believe it is accurate, the gap insurance and multiple deposit are two different things that Lexus offer. When I did my multiple deposit for 02 LS430 and 02 SC430, I asked this question specifically. And the answer was no. But it wouldn't hurt to ask if one is interested in doing so.
It is fairy easy to do the multiple desposit. Just tell you car salesman/financial manager who process your application that you want to use multiple deposit to lower the money factor. They will come back with a number for your deposit based of the number of deposit you want and the lease amount (they have some rounding stuff going on, so it is not exactly 9x what your monthly payment is). For our SC/LS, it ran into the 7600 range (our monthly payment is in the 820+ range). And when they figure out the monthly payment, they would reduce the money factor by 0.0009 (double check their money factor since dealer can "pad" money factor to make additional money, you want to make sure that they use the correct money factors). Our finance manager did not know about multiple deposits at the time but he called Lexus Financial and clear it up quickly. We traded in both the LS and SC and got our money back without any problem.
You can use this lease calculator to double check the dealer's number (remember dealer has a lot of fees add into the cap cost - acqusition, dealer processing etc.). Good luck, I am intrigue in getting an IS350/G35/Altima before new year also (G35/IS350 cost almost the same per month if one can get an IS350 3800 below MSRP and G35 2000 below MSRP and do 9 deposits on both. I am in California so the dealer competition is higher here), I may be doing some test drive soon.
http://www.leaseguide.com/calc.htm
Don't believe it is accurate, the gap insurance and multiple deposit are two different things that Lexus offer. When I did my multiple deposit for 02 LS430 and 02 SC430, I asked this question specifically. And the answer was no. But it wouldn't hurt to ask if one is interested in doing so.
It is fairy easy to do the multiple desposit. Just tell you car salesman/financial manager who process your application that you want to use multiple deposit to lower the money factor. They will come back with a number for your deposit based of the number of deposit you want and the lease amount (they have some rounding stuff going on, so it is not exactly 9x what your monthly payment is). For our SC/LS, it ran into the 7600 range (our monthly payment is in the 820+ range). And when they figure out the monthly payment, they would reduce the money factor by 0.0009 (double check their money factor since dealer can "pad" money factor to make additional money, you want to make sure that they use the correct money factors). Our finance manager did not know about multiple deposits at the time but he called Lexus Financial and clear it up quickly. We traded in both the LS and SC and got our money back without any problem.
You can use this lease calculator to double check the dealer's number (remember dealer has a lot of fees add into the cap cost - acqusition, dealer processing etc.). Good luck, I am intrigue in getting an IS350/G35/Altima before new year also (G35/IS350 cost almost the same per month if one can get an IS350 3800 below MSRP and G35 2000 below MSRP and do 9 deposits on both. I am in California so the dealer competition is higher here), I may be doing some test drive soon.
http://www.leaseguide.com/calc.htm
12-09-06, 02:17 PM
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Or in plain old English each "deposit" is equivilant to your monthly payment. If your monthly payment is $485 - it's rounded up to $500. If it's $518 - it's rounded up to $525. It's rounded up in incriments to the quarter.
Each deposit lowers money factor by 1/10 of a point.
You can do up to 9 deposits - you can do 6 if you want.
Other than lowering your payment, another good thing about MSD is dealership can't make any money off you. Lexus Financial doesn't allow it. Which is why, I suspect a lot of dealers don't mention it.
Each deposit lowers money factor by 1/10 of a point.
You can do up to 9 deposits - you can do 6 if you want.
Other than lowering your payment, another good thing about MSD is dealership can't make any money off you. Lexus Financial doesn't allow it. Which is why, I suspect a lot of dealers don't mention it.
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