Skk378

Dealer is giving me 330/mo with 1500 down/drive off fee (need to get a clearer breakdown of how they got this # tmrw) for 12k miles using grad student incentive (they threw it into the rebate; however, have seen numbers where even without rebate ppl end up around similar net after rebate #'s i think lol)... not sure if this is the best deal.. maybe i should of negotiated harder.

his initial # were:
net after rebate 33100
residual 24,154.58
MF 0.0011

down of $1.5k... i assume thats the drive off, 1st car payment, and everything else in it (although i need to clarify tmrw)


New to the leasing game... would appreciate advice/insight.

Thanks

kyoungjook

What is the MSRP? IS this a 36-month lease?

Skk378

Msrp 38k
36 month lease

kyoungjook

Ok, so taking your net price after rebate, i.e. cap cost ($33,100) and subtracting the residual dollar amount ($24,154.58) gets you the total depreciation cost over the life of the lease ($8,945.42). Divide the total depreciation cost by the number of months to get the base, monthly amount ($8,945.42/36=$248.48).

Then, to determine the monthly money factor, add the residual dollar amount to the cap cost ($24,154.58 + $31,100), and multiply by the money factor (0.0011) to get $60.78. So, your pre-tax monthly payment should be $248.48 + $60.78 = $309.26. Add CA 8.50% sales tax to that to get your total monthly payment - $309.26 x 8.50% = $335.54. This is assuming $0 down, and assuming that acquisition, title and license fees are rolled into the cap cost. If not, you'll need to either add those and re-do the math, or just pay them upfront.

Based on what your dealer told you, the total cost of the lease over the 36-month Term is $13,380 (i.e. $330 x 36 + $1,500). Based on my math, the total cost of the lease would be $12,079.44 ($335.54 x 36). So, there's a variance of about $1,300. Now, dealer acquisition fee is about $750, and registration is a few hundred dollars, so it's close if those fees weren't already included in the net price. The above math assumes that you're paying 36 monthly payments, but Lexus typically pays for your first months' lease payment, so you can confirm this with them and deduct 1 months' worth of payments (although the variance is only $5).

Skk378

ah gotcha thanks for that, appreciate it~ Yea they werent very transparent yet with what the 1.5k was... im assuming they will say it doesnt go into the cap cost at this point... if thats the case, i feel itll be an uphill battle to argue they do include into cap costs... or is it relatively rather easy and understood?

On a side note, What is the MSD reduction rate for each monthly equivalent? wondering if I should just roll it all in MSDs, and see what the payment would be afterwards. they max at 9 payments for lexus?

And as far as lease maintenance, how does lexus compare to bmw (which is no frill just bring in car for regular checkup/maintenance)? This would be my first lexus lease, so not sure what to expect. thanks!