cupofjoe

Hey all,

Going to pick up my IS350 F Sport tomorrow, and I can't help but think I'm getting a bad deal. I haven't really cross shopped dealerships, but I feel like I should have.

Anyway, my car is a 350 F Sport, Nav, Blind Spot, Accessory package (MSRP $49464) Putting $6500 down (I know, unadvisable, but I'm not here for that), 8.875% Usage tax puts me at $415/month (36m/12k miles). Dealership did not provide money factor or residual on that lease.

I can't help but feel like I should be a lot lower with that kind of money down. I was hoping to figure out how they came to that number, and either get it down, or get them to throw in wheel and tire insurance (~$700)

How does everyone feel about that deal? If its not so good, can someone give me a breakdown of what they think is a decent deal?

Loe

Sounds like they are charging you full MSRP . The residual would be approx 64% (+/- 1%, I forget the exact rate) on a 36 months lease. Based on full MSRP, the above sounds about right without any form of negotiation; however you should be able to negotiate at least 93% of the MSRP depending on how aggressive the dealer is (mine was). Yes, I would cross shop because you should be able to get near that price with half that (or less) due at signing.

cupofjoe

Do you know what the current MF is? I've been using 0.00130 (3.12%) but have heard as low as 0.00085 on the boards here (under top tier credit)

toyotatom

If they charged you MSRP for the car then you probably didn't get a bad deal. Based on the limited information you gave us, it looks like your MF was around .00065 which is pretty good from what I can figure out. If you signed already good luck on them throwing in a extras, you can always try.

lexi90

They should disclose the MF and residual. I know they didn't when I was given a quote, so I went back and asked for it in writing. These 2 factors are very important to determine whether you're getting a decent deal. Also, mind you that you're bringing a big chunk of downpayment monies - You should absolutely shop around. A good start - email the internet sales manager from your local dealers, then work from there. It worked for me!

drbazing

I think you forgot the $6500 down in your calculations.

link13

$6,500 down on a lease for anything is too much for me. That is a red flag IMO. Everyone's situation is different. Personally, I would not be willing to put that much down on a lease.

jarabanos

Yikes...

Well just to give some perspective, I had a similarly priced/optioned 2014 IS350 F Sport that I leased in April. MSRP was $49,210 and final negotiated price was around $43k. 12k miles/year and 27 month lease. MF: .00085. 72% residual (If I remember right).

I only put down $500 which was the value of my trade in (a junker car I bought when I first moved to LA) and my lease payment before I added the wear and tear package was $500/month and some change (keep in mind sales tax in LA is 9%). I think you definitely got the butt end of the deal. Did you already sign the contract? If not, you should really try to get out and establish the money factor, final negotiated price, residual, etc... Based on the astronomical amount of money you put down toward cap cost redux, I definitely think you could have gotten a better deal and I would be curious to see what your out the door cost was before the cap cost redux.

JDR76

Bear in mind, these deals are highly dependent on your location. I have no idea what it's like in NY, but I haven't often found the deals being offered in California and Florida to be readily available to the rest of the country.

jarabanos

This^^^

Also OP check out this calculator if you really want to dig into the numbers once you find out all of the selling factors like MF, Residual, etc... http://www.ridewithg.com/rwg-calculator/

Assuming you had a money factor of .00085, a $700 acquisition fee rolled in, 60% residual (which I think is the residual for a 36 month lease, but I could be off) I back-calculated the "sale price" with your 6500 cap cost reduction to $41,250 which means the sale price before that figured in would have been $47,750. This is 3% off of msrp. Here in California it's fairly easy to get 10-15% off msrp as the final negotiated price but as JDR76 said, it all depends on your location and level of dealer competition. Find out what other people in your area are getting off of MSRP and use that to negotiate if there's still time to do so. I actually used True Car to get my negotiated price and it worked out pretty well.

Disclaimer: My numbers may be way off, but just trying to piece together some more information for you based on the numbers you provided. Good luck!

Edit: I just saw Loe's post about the 64% residual. If that's the case, then it would appear your final negotiated cost was basically full MSRP based on a .00085 money factor.

cupofjoe

This was the only Lexus dealership for at least 30 miles, and was part of a much bigger dealer network (Acura, BMW, Mercedes, etc). TBH, I got a car I love, and I'm paying a lot less than I was for any of my BMWs. I guess I can call that a win-win.

gmanusmc

Congrats and enjoy your new ride - these IS350s are super cars!

Bill G

toyotatom

No I didn;t

drbazing

Ok then the MF is wrong. I don't think a dealership changes their MF by that much. The usual tier 1 credit MF is at the lowest of 0.00085 for the IS350s.

BOBFSPORT

You could do much better and i wouldn't look at it this way. Since you have the cash to put down you are better off using it towards security deposits to lower the money factor. If you didint pull the trigger yet.....where in NY are you located?