rollinboy

All, what kind of deal are you seeing out there for 350's? Here's my situation:

I work for a government contract and am currently deployed to Baghdad. I am looking at buying an IS350 when I get back. I am kind of at a crossroad on how I should go about it. First of all, anything I buy will have to be done completely over the internet or phone. My wife is available in the states if need be. I am not sure whether I should buy an used '06 or a new '07, or maybe lease? I know a lot of people are against the lease but I have seen some really good lease deals on occasion that in the long run end up costing the owner exactly what MSRP would be. Does any of this sound realistic?

I am keeping a look out for a loaded '06 350 and as of right now I think my max price is about $34,000. Must be Grey or Black. After taxes I am looking at about $36,500. This should include Nav/Premium/ML etc.
On the other hand I have a local Dealership (back home, not in Baghdad) that has all but committed to $38,000 for an '07 NAV/Premium. Basically they say "in order to get that deal you must be here and ready to buy" More than likely it will be the exact color I want in and out. I know that is a good deal but just not sure if it's worth $4,000 to get the new model. In case you hadn't noticed I and quite frugal, not cheep, just careful. My other option is should I Lease or buy? I am only in the country about 8 months out of the year. Mileage will not be an issue. More than likely I will keep the care 3-4 years at the most. As it stands I have a buddy keeping an eye on local Auctions since he is a dealer, unfortunately, you guys love your cars so dang much a 350 at auction is very rare. Just though I would elicit some advise. Thanks guys

p.s. I will be back towards the end of January

Scott

jjbodean

december to remember is based on special interest rates and lease money factors - the factory does not throw dealer cash out there, so you may or may not be able to find a better price than normal.

rollinboy

That's kinda why I was asking. I mean I have worked the deal down to what I think is a good price for the car. I was wondering what kind of rates I should expect if I had them work the numbers. Assuming the rate is below what my Money Market is making it would be dumb to not use other people's money. Basically If the deal is good I'm interested. I'm not hell bent on the lowest payment and such. Thanks

jjbodean

you should expect between 6 and 7% apr, money factor is .00225

rollinboy

Ok guys tell me if this makes any sense to you. Trying to compare buying used vs buying new vs. leasing new vs. buying out right.

Assumptions: You plan to keep the car for only 3 years (pretty normal for the type of people that would drive a Lexus) Including me.

Scenario 1: As I stated in the first post I think by the January timeframe I should expect to get a loaded ‘06 350 for about $34K. Also I plan to put down about half either way. A decent loan rate of 5.9%.

Scenario 2: Buy New. With a new ’07 after taxes we are looking at about $41,000 give or take a few hundred dollars. Same 5.9% interest.

Scenario 3: Lease a New ’07 for the same $38,000 I have already negotiated. The standard depreciation value is 42% if I remember correctly, leaving a residual value of 58% or $22,040. The Lease payment is calculated by Lexus.com and I assume it takes into account the Money Factor. Since you are not incurring the large down payment you might as well invest that same $21,000 into a High Yield CD at say…..5.9% I like even numbers One thing to realize is that you will need to have an extra 20K laying around to make the payments out of while you investment builds funds. or pay the lease payments out of a paycheck. Again I know not everyone has 20K laying around but I'm just trying to prove a point with the numbers.

Scenario 4: Buy it out right. I know this is not an option for some people. If not maybe you should reconsider buying a Lexus. After all the finance rates should be enticements not deal makers. But we all over extend ourselves every now and then I’m guilty too

I think I am even being a little low on the resale price but I think it's a good benchmark. From what I have learned talking with salesmen, the best way to handle a lease when it comes to Lexus is to sell at the end. That is why they are so aggressive with leases, they know they will be able to sell it for more than what the payoff amount will be. It would even be possible to sell it an make a little profit if you kept it in good condition. And boom there's your next down payment.
Just as a point of reference a 2004 (3 year old) IS300 KBB's at $28,000 fully loaded and is no nowhere near the car the IS350 is. If you use that figure you could potentially make 6K off the car by selling it at the end of the lease rather than turning it in.

So the math works out as follows:

Discuss...

Soda

Do NOT put that much money down on a lease. I think that'd almost be a one pay. A lease is for you to keep your money and go w/little out of pocket. I wouldn't be smart!! If you wanna put that much down you need to purchase!!!!

rollinboy

$1700 is alot to put down on a lease?
Just to clearify the Total out of Pocket line constitutes total monies spent for duration of ownership. From cradle to grave. Not to be confused with total out of pocket due at inception. sorry for the confusion.

Soda

Actually, I'm a retard!!! I thought the 20k or something, serves me right for skipping through what you wrote!! 1700 is good!! OOPS..haha

socalJD

Nice to know. Is it the same for the 'Golden Opportunity' Sale or does the factory offer dealer incentives as well ? In your professional opinion, when is the best month to cherry pick the best price on a new Lexus ???

Batmobile

iTrader: (2)

38 for ML with premium package? (assuming you meant luxury) MAN... what was i doing stopping at 40?

rollinboy

I don't know for sure if that includes ML or not. That will bring me to my next question. Does anyone know how the different packages work for the '07? On the lexus website it is very basic and only offers 4 different options. Nothing for ML, Parking Assist, Luxury package, etc. Of course no individual Lexus websites actually show inventory. What can I expect to get with the MSRP of $42,000 that I have negotiated to $38,000? Again I know this is not easy to shop for a car over the internet but I really have no choice. I have had a chance to drive the car and liked it, scratch that, LOVED it. Now I am trying to become knowledgeable on the options subject. Thanks again guys!

Batmobile

iTrader: (2)

Sport package = Has the stiffer suspension

Luxury package = illuminating scuff plates and power shade.

Park assist and the rest of that comes with the nav option automatically...

MARK LEVINSON (this is where i messed up) DOES NOT come automatically if you go with the nav package... i thought it did... until i drove off the lot...

everything else on the site is basically just throwing in the wheel locks and etc... the additional options they call it

make sure you check for everything before you drive it off... especially if you go with the luxury package but no powershade.... i had a couple of those they had to switch cars for me... sneaky lexus guys

rollinboy

So basically I want the Nav w/Luxury and Mark Levinson. That should be fully loaded right? What would MSRP be on that?

rhsmd

nav/ml, lux with 18 ' wheels and pref pack is 44,822 msrp.
best way to price out the car with any option /group you want is on www.kbb.com

wil give updated msrp and invoice price.
i oreded mine as above and am paying 45,000 otd. (colorado with 8.25% sales tax)
also dealer charges 400 hostage fee. anyway i know that i paid over invoice pre tax, but i don't believe anyone who says that they are paying 100 over invoice.
good luck

rollinboy

Can assume by this statement you are infering that My price of $38,000 is only $100 over invoice or is that in general. Like I said in the first post they have all but commited over e-mail to this. I'm 100% positive however that I can get that same vehicle for $38,500. The way I look at it that is almost a 10% discount off MSRP. If I can extend that same value to a more equipt vehicle I am ok paying in the upwards of $40,000 for a FULLY loaded model. It still factors out better in my figures.