MrPLP

Edmunds is reporting an increase from 0.0018 to 0.0019 for February. Again, it seems that Lexus is supporting purchases with this move, and not leases.

Also, from what I'm seeing, all the 2016s in my area are $71Ks. It looks like the dealers "learned their lessons" and are now ordering the 2016s with just the Luxury package and another such as the ML or Pre-collision(and no wheel options).

With that said, which option is preferable: the ML or the Pre-collision? Can the Radar Cruise Control be used in Stop&Go traffic? I mean I use the radio everyday on my commute, but don't see a need for smart cruise control unless I get stuck in bumper to bumper traffic(which rarely happens).

kdphan

at 0.0018 MF, i would just purchase instead.

Or if they accept security deposits to lower MF, I would do that.

stoomac

It sure looks like (at least in Texas) leasing an RCF doesn't make sense at this point. The dealer that gave me the MF of .0025 said they could get to .002 (based on Edmunds they are trying to keep some for themselves). They seemed to think the MF on the RCF wouldn't come down until the 2017s are out (and this is on a 2015! 1 of 6 they have on the lot - you would think they would be trying to offload these).

lamborarri

I just received the following offer in CT

2015 RCF

MSRP - $73.5k
Sale - $62k
36 Months/10K Miles
Sale tax 7.75%

With $2800 drive off, $860/month for 35 months.

How is that sound? Not sure why but I do feel kinda high. That's about the similar payment on my M3 but with $72k selling price.
Thank you for your input!

JeroCool

What's your MF? I feel like you should be able to do better on the sales price by about 3-4k regardless. This is a 2015 and they want to get rid of them. I'd probably walk if I wasn't able to get 57-58k assuming the MF is up to .0019.

lamborarri

I asked them for the MF but the financial manager said we don't need to care about it. Basically he's trying to say let's work out a number on down payment and monthly payment, as long as it works, he will move numbers around and make it happen.

JeroCool

The problem there is if you ask for the lower payment they are automatically going to ask you to put more money down. 2800 down seems like a lot to begin with, should be somewhere around 1500ish. His explanation would worry me.

It's less about the payment and more about the cap cost of the car and the MF. You want to put the least amount of money down possible. First month payment and their charge is generally 1k-1.5k. The only exception to this is when dealers have MSDs (security deposits) which will lower the MF but also be refunded to you at the end of the lease term.

lamborarri

Yes that's what I have in mind as well. I probably gonna ask them to give me more details. I think I should ask a few more dealers just to compare

JeroCool

I'd be ready to walk away from that deal. From what i'm currently seeing I'd say a good deal on a 73k msrp is probably 60k, MF (whatever Lexus is at right now, 0.0019 I believe with Tier 1 credit). A very good deal is 58k, and a great deal is anything lower.

If you have tier 1 credit I wouldn't take any MF more than .0019. And I wouldn't put anything more than 1500 down.

ghoffner

The fact that your dealer won't tell you the money factor, at least to myself, is very very shady. I negotiated with 6-8 dealers before I leased mine and they all didn't hesitate to tell me the MF.

And agreed on putting the smallest amount of money down as possible. If anything, put down MSD's to lower your money factor even more.

For example- I leased mine in November with a mf of 0.009. MSRP of 73,074 and negotiated price of 63,999. I also got an additional 3,000 in lease cash from Lexus on top of the price discount. 36 months, 10k miles a year. I added the wheel and tire package. Payments are $755/month.

MrPLP

Lamborarri, I'd recommend plugging in your numbers to a lease calculator like this one: http://leasehackr.com/calculator/ and verifying the numbers yourself.

Play with this and calculate a deal that will satisfy you, then you'll know what you're dealing with.

lamborarri

Thank you for the help guys!!! I will shop around today.

finny76

I would only sign that deal if it was a 2016 NOT 2015. The only way I would sign that for a 2015 is if they waive the $2800 down and get the payments to $800 flat . If they can do that then sign immediately, else just walk away and l

ohiois350

iTrader: (13)

Hi guys, please me understand more about leasing on a car work? I never lease a car before, i just wonder what is the residual mean? Ok the rcf i was looking for is $74k and they agree to take $14k and the lease for 36 months with $1000 down and 10k miles the payment is $846 a month residual is 56% which is $41909.84i don't understand please help, thanks

JeroCool

Search the terms: Money Factor, Residual Value, Capital cost, and Lease on google. Seriously, some article written by an academic is probably going to be more accurate than anything we can tell you (with less spelling errors).

In short, MF is your interest rate, RV is your car value after the lease, and Cap Cost is the net cost of the vehicle after fees. These along with your lease term (How long you plan to lease the vehicle) will determine the cost of your payments/overall cost.

By the way, the deal you mentioned probably has a REALLY high Money Factor (interest rate). If you have good credit (around 800) your payment for that deal should be around 700-750$ per month.

EDIT: This is assuming no other costs. If you're upside down on a trade or something then it could be close. Ask them for the lease sheet that shows all the numbers and percentages.