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Today I went to local Lexus dealer, I'm interested in the RCF and LS460 Craftedline. Nothing too special, just wanna try sth new.
I got an offer for the remaining 2015 LS460 Craftedline, here's the number. Is it a good deal?
MSRP $90k
Down $3000
30k miles / 36 months
Monthly payment $1180/month
My local tax is 7.75% btw.
Hold on, they're pricing a brand new 2015 Crafted for $90k? And 30k miles a years or for the 3 years? Seems either low at 10k a year or way too high at 30k a year. But then again I don't know how far you live from work, how many other cars you drive etc. I personally wouldn't "rent" a new LS for $1,200 a month but that's just me.
Hold on, they're pricing a brand new 2015 Crafted for $90k? And 30k miles a years or for the 3 years? Seems either low at 10k a year or way too high at 30k a year. But then again I don't know how far you live from work, how many other cars you drive etc. I personally wouldn't "rent" a new LS for $1,200 a month but that's just me.
I don't think that's a good deal. If you're looking to get into a Lexus just buy a used one and by the end of three years you will be able sell it for more than the remaining balance and those should be around $950 a month if you have great credit. Otherwise you're just renting it for $1,200 a month with no intention to buy out the lease.
I don't think that's a good deal. If you're looking to get into a Lexus just buy a used one and by the end of three years you will be able sell it for more than the remaining balance and those should be around $950 a month if you have great credit. Otherwise you're just renting it for $1,200 a month with no intention to buy out the lease.
Lets not get into a lease vs buy thing here. He's looking for advice about the lease he was offered and whether its a good deal or not. Buying a used one or whatever is an entirely different thing.
As for the lease, the $90k for a 15 Crafted MSRP is right, what we need to know is what is the dealer discounting the car to. That discount should be AT LEAST $10,000, and probably more. When I got my 15 in May of 15 I got $10,000 off, and that was on a car with an MSRP of only $80k.
A quick look at the lease rates posted on edmunds leads me to believe that deals are not nearly as good as they were when I leased mine in May. The latest MF I'm seeing is .00120 which isn't great and 55% residual which is typical for this car. My MF was .0009 if I remember correctly.
I did a calculation for you, assuming a $90k MSRP, an $80k purchase price, .0012 MF, 55% residual, $1,500 in fees rolled in ($700 acquisition, $300 tags, $500 processing), $2,000 down ($3,000 total down but that includes your first payment, so only $2,000 down towards the payments), 7.75% taxes paid per payment (may or may not be that way in your state)...payment I get is $1,064.71. Thats pretty damn close for not knowing what the actual residual, MF or sales price is.
It's not a lease vs. buy, I only illustrated that based on the numbers a purchase would make more sense because if it's a lease where he doesn't intend on buying it then the money factor doesn't matter as much. I think he's have to consider it like renting and if that's the case $1,200 a month is at a 15k mile rate and what I would expect to see is a deal in the $900 range with $3,000 down to be attractive. But that's just comparing what I've seen here locally. If he's leasing a $80k car then $1,200 for only 10k a year seems much higher than comparable leases.
Originally Posted by SW15LS
Lets not get into a lease vs buy thing here. He's looking for advice about the lease he was offered and whether its a good deal or not. Buying a used one or whatever is an entirely different thing.
As for the lease, the $90k for a 15 Crafted MSRP is right, what we need to know is what is the dealer discounting the car to. That discount should be AT LEAST $10,000, and probably more. When I got my 15 in May of 15 I got $10,000 off, and that was on a car with an MSRP of only $80k.
A quick look at the lease rates posted on edmunds leads me to believe that deals are not nearly as good as they were when I leased mine in May. The latest MF I'm seeing is .00120 which isn't great and 55% residual which is typical for this car. My MF was .0009 if I remember correctly.
I did a calculation for you, assuming a $90k MSRP, an $80k purchase price, .0012 MF, 55% residual, $1,500 in fees rolled in ($700 acquisition, $300 tags, $500 processing), $2,000 down ($3,000 total down but that includes your first payment, so only $2,000 down towards the payments), 7.75% taxes paid per payment (may or may not be that way in your state)...payment I get is $1,064.71. Thats pretty damn close for not knowing what the actual residual, MF or sales price is.
It's not a lease vs. buy, I only illustrated that based on the numbers a purchase would make more sense because if it's a lease where he doesn't intend on buying it then the money factor doesn't matter as much. I think he's have to consider it like renting and if that's the case $1,200 a month is at a 15k mile rate and what I would expect to see is a deal in the $900 range with $3,000 down to be attractive. But that's just comparing what I've seen here locally. If he's leasing a $80k car then $1,200 for only 10k a year seems much higher than comparable leases.
Why would the money factor not matter if he's not going to buy it at the end? The money factor and the residual are two of the most important terms of any lease, the lease payment is calculated off of the residual, the cap cost (purchase price) and the money factor (interest rate). Buying it at the end is an entirely different discussion. The MF is vital when discussing any lease.
Its like renting because it is renting, thats all leasing is. If you're going to buy it at the end you should generally buy it from the onset.
You can't compare payments that you see advertised, those leases are ultra low mileage, they usually have a ton down plus they require fees and taxes and all down on top of the huge amount down.
You're not going to get a $90,000 car for less than $1,000 down when the residuals are like they are and a MF of .0012. Look at my calculation above, the math is the math, with $10,000 off the price the payment I calculated is $1,070. I could be a % or 2 off on the residual and that would be the difference between $1,070 and $1,170.
If you financed the $80,000, plus 7.75% taxes which equals $6,200, with $3k down at 1.9% the payment is $1,455...the difference is $300 a month in cashflow.
These big sedans don't lease out like a GS or a 5 Series.
Why would the money factor not matter if he's not going to buy it at the end? The money factor and the residual are two of the most important terms of any lease, the lease payment is calculated off of the residual, the cap cost (purchase price) and the money factor (interest rate). Buying it at the end is an entirely different discussion. The MF is vital when discussing any lease.
Its like renting because it is renting, thats all leasing is. If you're going to buy it at the end you should generally buy it from the onset.
You can't compare payments that you see advertised, those leases are ultra low mileage, they usually have a ton down plus they require fees and taxes and all down on top of the huge amount down.
You're not going to get a $90,000 car for less than $1,000 down when the residuals are like they are and a MF of .0012. Look at my calculation above, the math is the math, with $10,000 off the price the payment I calculated is $1,070. I could be a % or 2 off on the residual and that would be the difference between $1,070 and $1,170.
If you financed the $80,000, plus 7.75% taxes which equals $6,200, with $3k down at 1.9% the payment is $1,455...the difference is $300 a month in cashflow.
These big sedans don't lease out like a GS or a 5 Series.
Oh I get the money factor is calculated into the cost hence the higher payment as the car is expected to depreciate quickly vs. a GS/ES/IS otherwise it would be lower. I was just going off the actual payment as a value proposition. Hope that makes sense. I wasn't bothering breaking it all down.
Oh I get the money factor is calculated into the cost hence the higher payment as the car is expected to depreciate quickly vs. a GS/ES/IS otherwise it would be lower. I was just going off the actual payment as a value proposition. Hope that makes sense. I wasn't bothering breaking it all down.
The money factor doesn't have anything to do with depreciation. Its simply the interest charge on the money lent for the lease. The residual is what varies depending on depreciation.
One of the quirks about comparing say an LS lease to a GS lease. The GS has really high residuals but resale values on the GS are actually quite poor, which means that at the end of the lease you're likely to be upside down, but the payments are really low compared to the vehicle's cost.
On the LS, they're less aggressive with the lease residuals so at the end its more likely they you will have some equity in the lease....but the payments are higher.
The money factor doesn't have anything to do with depreciation. Its simply the interest charge on the money lent for the lease. The residual is what varies depending on depreciation.
One of the quirks about comparing say an LS lease to a GS lease. The GS has really high residuals but resale values on the GS are actually quite poor, which means that at the end of the lease you're likely to be upside down, but the payments are really low compared to the vehicle's cost.
On the LS, they're less aggressive with the lease residuals so at the end its more likely they you will have some equity in the lease....but the payments are higher.
Today I asked them again, they said the selling price is $12k off. I have not yet asked for discount or anything yet. Sounds lots of discount to start with, they even have 2 of them exactly the same, look like they stuck with them.
Maybe if I punch them a little bit, I can get somewhere close to $1k a month easy.
02-04-16, 12:16 AM
2015 LS lease question
