kenatro

Kondypl, I just purchased an IS350 F-Sport in Chicago for 1K under invoice. You need to find either TrueCar pricing or an auto club buying program (ie Costco) to provide a baseline price under MSRP and start your negotiations from there. Try to buy towards the end of the month as dealerships will be more likely to deal if they are close to sales incentives. If you aren't in a rush if you wait until around August when the 2016s get released you can get a great price on a 2015. Best of luck to you. I wasn't able to find anyone on here to give any useful info on the Chicago market. I bought from McGrath Lexus of Chicago if that makes any difference for you.

kondypl

Hey! Thanks for responding. I purchased the car two days ago, its 2014 IS250 AWD and I got it for $33k , I don't think its a bad deal... I love it tho!

kenatro

Kondypl, sorry I didn't see your posts sooner. Congrats on the new ride I'm loving mine as well.

ziggymad

Got the following offer for from a dealer in VA. for a IS350 AWD F sport

MSRP $49,853.00
Selling Price $45,155.00.
Money down 1500 which is all that is due at signing

First month credit and $750 Military Credit

$479/month with the VA tax of 4.05% for 36 months/12k miles

Sent inquiry back about MF and residual waiting to see what they are but seems like a good deal since I have been getting quotes well into the 500s before today.

gmanusmc

Looks like a pretty good deal - almost 10% off - but with the 1500 up front and military rebate, seems like that should bring the payment down a bit. Also get a quote for 24 months - you can always extend the lease if you want to keep it a little longer.

ziggymad

Thanks. Here are the full details I got on the offer sheet

MSRP 49,853.00
Sale Price $45,500.00

Residual: 64% of MSRP
Money Factor: 0.00090
36 months, 12,000 miles per year lease
$1,500.00 down with 35 X Payments of $479.66/month.

gmanusmc

Punching the figures into a leasing calculator, I get that your payment should be around 430-440.

I allowed approx 1500 to be added to the selling price to cover Lexus initiation fee of 700, first payment of 440, dmv/misc fees 360 (not sure what the dmv fee should be). Does the dealer have a large dealer doc fee?

I allowed for your 1500 up front, a credit of 440 for first payment, and a credit of 750 for military rebate.

I used the residual and money factor they provided.

The dmv and misc dealer fees would have to be around 1900 to get you to 480 on the payment.

Good luck and let us know how you make out.

ziggymad

I have to look into that more but also having to pay 4.05% VA tax on selling price of vehicle.

gmanusmc

Bingo - there's the difference - that's about $1800 it looks like. Under those circumstances, it might be better just to buy it. Obviously, you won't get that extra tax money back if you don't buy it out at lease end.

glo6035

Think this thread needs to become a sticky.

jman817

Hello all, thank you for the help on leasing! Here is my new quote from a dealership in Texas (6.25% Tax on total price of vehicle)

MSRP: $41,915
Negotiated Price: $36,705
Residual: 65% (24 months = $30,655.62) (36mo. = $27,296.10)
Money Factor: .00090
Cap Cost: $39,406 (TTL, + Fees )

Monthly payments:

$455.41 for 24mo.
$415.03 for 36mo.

$0 down. First months payment on Lexus.
No security deposits...I'm told that it does not effect the money factor, only the residual. Not sure on that.

Deal or no deal?

gmanusmc

Whoever told you that about MSDs is either lying or does not know what they are talking about. Each MSD reduces the money factor by .00008 (max of 9 MSDs allowed if permitted in your market - some areas don't allow them). Reducing the money factor by .00072 can substantially reduce your payment - just ask uclabruins and BOBFSPORT.

I think those are high payments for an IS250 - I guess caused by being required to pay all the sales tax up front - takes some of the advantage away from leasing.

jman817

Thanks for the tip. I think I'll look into purchasing a used 2014 instead. According to two salesman I spoke with, security deposits, buy down the residual, not the money factor. Which goes against everything I've read.

EDIT: Dealer response; "Standard rates are open to do so. Standard rates are .00170. You are allowed 9 MSD, so you would still be coming out behind the special rate that Lexus IS offering."

gmanusmc

Interesting - uclabruins got his money factor to .00006 from .0007 by using 8 MSDs - his deal is over in the leasing price thread - his payment on a 350 is 300 incl tax - again, maybe different markets adhere to different rules - I'm not sure.

Good luck - you're right that you might be better to buy a low miles 2014.

FastTags

What town your in? In Houston the have whats called Tax pool,which will bring that tax rate from 6.25% to 1.25%. Ask the finance guy if they off tax pool break!!!!

Msd does lowers the MF!!