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Funny leasing numbers...

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Old Nov 3, 2017 | 03:50 PM
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Default Funny leasing numbers...

One of the analysts for CarsDirect ran the numbers for the HP, and discovered you can lease an RC 200t for just five dollars more a month than an 86. Having driven both? I'd probably opt for the 86, just because I love how bare bones it is... But these numbers definitely raised my eyebrows. Take a look at the breakdown here.
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Old Nov 3, 2017 | 07:54 PM
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This is click bait from start to finish, and Lexus is intentionally behind it all. It's an old scam.... advertise a super low monthly payment, but don't mention the down payment, or bury it deep in the fine print. Everyone starts talking. The RC has a massive down payment for a lease, which really does not make it that great of a deal. Twisted words, sly advertising, and people will not knowingly walk into a showroom all excited until the salesperson talks them into a lesser car or a high monthly payment with less down. The company then makes money. Sad gimmicks, old school style.
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Old Nov 3, 2017 | 09:43 PM
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Originally Posted by Fizzboy7
This is click bait from start to finish, and Lexus is intentionally behind it all. It's an old scam.... advertise a super low monthly payment, but don't mention the down payment, or bury it deep in the fine print. Everyone starts talking. The RC has a massive down payment for a lease, which really does not make it that great of a deal. Twisted words, sly advertising, and people will not knowingly walk into a showroom all excited until the salesperson talks them into a lesser car or a high monthly payment with less down. The company then makes money. Sad gimmicks, old school style.
I don't understand. The Lexus add is pretty straight forward, 3999 down and 299 a month for the RC Turbo. Big numbers, no fine print and nothing hidden. If you spread the down payment over 36 months, the lease is equivalent to the $410 mentioned in the referenced article. The real key to the pricing is $4500 lease money Lexus is contributing. If you have 4 grand down in cash or trade, you can lease an RC for $300/mo. For a car in this price range, $4000 doesn't seem like a "massive down payment".
Steve
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Old Nov 3, 2017 | 10:33 PM
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Yes and no. The CarsDirect article is more suspect. Yes, Lexus makes it somewhat clear about the down payment. Although most people are going to look at the monthly payment number in the ad and not the down payment. This is proven marketing. Eyes always go right to the monthly payment and not much further.

Generally, one should not put much down when leasing. I'd say anything over $2000 is too much. $3999 is above what most would or should do. And don't forget, that does not include tax and other fees, which will likely put it to $4500+.

Overall, the $299/mo number is unrealistic for this car. It's a loss-leader number to get people into the showroom. The more common RC leases are no money down to $2000, and a payment in the low to mid-$400's.
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Old Nov 6, 2017 | 05:24 PM
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Originally Posted by oldcajun
I don't understand. The Lexus add is pretty straight forward, 3999 down and 299 a month for the RC Turbo. Big numbers, no fine print and nothing hidden. If you spread the down payment over 36 months, the lease is equivalent to the $410 mentioned in the referenced article. The real key to the pricing is $4500 lease money Lexus is contributing. If you have 4 grand down in cash or trade, you can lease an RC for $300/mo. For a car in this price range, $4000 doesn't seem like a "massive down payment".
Steve
I thought that sounded reasonable enough... Not like I'm in the market for a lease, ha ha.
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Old Nov 6, 2017 | 05:49 PM
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I agree with Fizzboy. This is an attractive deal, at first, on the surface, but, underneath, perhaps a different story. As with all lease contracts, you have to look at the fine print and details. The $5 difference, while literally true, is misleading. First, the 86 gives you 2000 more annual miles of driving without a mark-up....something you would pay extra for with the Lexus. Second, the Lexus requires a significantly higher down payment. Third, insurance usually doesn't come with a lease. You have to supply your own.....and you can bet the monthly rent (or lease-payment LOL) that, for equal policy-coverage, the Lexus will cost more to insure.
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Old Nov 6, 2017 | 06:45 PM
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Infiniti has an ad out now for a Q60 lease -$3999 down and $269 a month. Although the Mercedes 4 cyl in the Infiniti is rated at much lower horsepower than the Lexus, performance is about the same. Leasing looks like the way to go if you want a sport coupe.

While I was at the Honda dealer today, they had a civic Type R on the showroom floor marked at $10000 over list. It was locked with a big sign "DO NOT TOUCH".
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Old Nov 6, 2017 | 06:59 PM
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Originally Posted by oldcajun
While I was at the Honda dealer today, they had a civic Type R on the showroom floor marked at $10000 over list. It was locked with a big sign "DO NOT TOUCH".

While I personally don't believe in gambling, I'd bet (in spirit) that the dealership will actually get that extra 10K. "Gotta-Have" sometimes means "Gotta Pay". Even in a questionable economy, with vehicles like a Civic R, there's never a shortage of Gotta-haves.
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Old Nov 7, 2017 | 09:14 AM
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Originally Posted by Fizzboy7
Yes and no. The CarsDirect article is more suspect. Yes, Lexus makes it somewhat clear about the down payment. Although most people are going to look at the monthly payment number in the ad and not the down payment. This is proven marketing. Eyes always go right to the monthly payment and not much further.

Generally, one should not put much down when leasing. I'd say anything over $2000 is too much. $3999 is above what most would or should do. And don't forget, that does not include tax and other fees, which will likely put it to $4500+.

Overall, the $299/mo number is unrealistic for this car. It's a loss-leader number to get people into the showroom. The more common RC leases are no money down to $2000, and a payment in the low to mid-$400's.
Yes, agreed. I thought my friend's deal for a IS200T (all options) @ 360/mo with zero down OTD was a great deal already. Sub-300 a month is just impossible unless you put some material downpayment.
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Old Nov 9, 2017 | 06:05 AM
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What no mentioned here was the money factor and residual factor which make a big difference. The RC has a 0% interest factor and a $4500 cash bonus which makes it hard to beat.
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