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Hi
I have been offered the following for ES 350. My question is if destination charge $995,acquisition fee $795 and license fee $395 are all valid charges for a lease. The first month's payment is included in the $2000 drive off. I am wondering how tax of 460.82 is calculated. We are in an area with 9.25% sales tax.
Monthyl payment for 36 mo/10k :350 ( includes tax) and cash down $2000 which includes first month's payment
MSRP 38900
Destination Charge 995
Misc Charges 150
Total Price 38900
Adjusted Price : 30,072.00 (after discounting for 4400 and 5500 lease cash)
Residual 47%
MF : .00001
Tax 460.82
Acq Fee (Cap) 795.00
Acq Fee (UPFT) .00
License Fee 395.00
CA Tire Fee 8.75
AVRS 29.00
AVRS 29.00
CA Tire Fee 8.75
Registration 46.00
CA TIF 150.00
Yes, the destination fee is a legitimate charge, and it is not negotiable. The $395 license fee seems high to me, but I have no idea what the fees are in California. and I also have no idea what is included in the "misc. charges" or what the CA tire fee, CA TIF, and AVRS are.
As I said in an earlier post, the sales tax calculation can vary by state, depending on state laws for such calculation on a lease. In most states, the taxable amount would be the difference between the price of the new car and the residual value. More specifically, it would be the negotiated price for the car minus any non-taxable fees (such as the acquisition fee) minus the residual value of the car. In your case, my calculations are coming up with sales tax somewhat higher than the $460 that you indicate. So, I must be missing something. Do you have a trade-in? If you do, the value of that trade-in would also be non-taxable, and it would reduce the amount of sales tax that you were required to pay.
As I said in an earlier post, even though the Lexus lease incentive is $1500 higher than the purchase incentive, much of that higher incentive is offset by additional lease charges that would not apply to a purchase. Those charges that you would not have to pay on a purchase include the $795 acquisition fee, and I'm guessing that you will have to pay a disposition fee at the end of the lease.
All of the things that you have to consider with a lease, including the money factor, residual value, acquisition fee, disposition fee, etc. are what makes leasing more complicated than buying, and they are also what makes it more difficult, with a lease, to determine whether you really have a good deal.
Yes, the destination fee is a legitimate charge, and it is not negotiable. The $395 license fee seems high to me, but I have no idea what the fees are in California. and I also have no idea what is included in the "misc. charges" or what the CA tire fee, CA TIF, and AVRS are.
As I said in an earlier post, the sales tax calculation can vary by state, depending on state laws for such calculation on a lease. In most states, the taxable amount would be the difference between the price of the new car and the residual value. More specifically, it would be the negotiated price for the car minus any non-taxable fees (such as the acquisition fee) minus the residual value of the car. In your case, my calculations are coming up with sales tax somewhat higher than the $460 that you indicate. So, I must be missing something. Do you have a trade-in? If you do, the value of that trade-in would also be non-taxable, and it would reduce the amount of sales tax that you were required to pay.
As I said in an earlier post, even though the Lexus lease incentive is $1500 higher than the purchase incentive, much of that higher incentive is offset by additional lease charges that would not apply to a purchase. Those charges that you would not have to pay on a purchase include the $795 acquisition fee, and I'm guessing that you will have to pay a disposition fee at the end of the lease.
All of the things that you have to consider with a lease, including the money factor, residual value, acquisition fee, disposition fee, etc. are what makes leasing more complicated than buying, and they are also what makes it more difficult, with a lease, to determine whether you really have a good deal.
Thanks for your detailed response. I dont have a lease. Basically the way i was looking at it
2000(down)+350*35 (monthly payments)+ 18785*1.093 (residual value +tax if i decide to buy back the car)= =34782.99 is the cost of the car if i lease. This seems to be the about the same if purchased the car now 31572*1.093 = 34508. so, i feel like the lease is almost like interest free loan.
I am ok with the deal as long as there is no additional charges when i go to actually purchase. Keeping fingers crossed...
new to the forum. Hello all.
Have a quote from a dealership on a lease. Will pay for my last 2 payments on my Infiniti. $1300 up front which is inception and first payment. Then $390 per month. MSRP is $41,000. Thoughts? Thanks!
If it includes all taxes and fees, it seems like a very solid deal!!! Enjoy!
I leased a base ES 350 with 40,200 MSRP for 357(inclusive of 9.3% sales tax) and $2k drive off(includes 1st month payment). As i was finalizing the deal, i ended up adding an extra 27 for excessive wear and tear and ended up with around 384.
Is the excessive wear and tear a useful thing to have. I was told that i could cancel it and they would prorate it but wanted to seek the opinion in this forum if that is needed or not.
Just purchased Luxury ES 350 with other options at a 46,488 MSRP for 37,000 + state tax. Works out to a bit over 20% off. Used the email method of requesting offers from 6 dealers within a 100 mile radius. Two were almost identical and it ended up with picking the color combination and closest dealer of the 2. Took about 10 minutes of financial discussion. It was almost too easy (probably left some money on the table?). But it's a beautiful car - white / flaxen.
Just purchased Luxury ES 350 with other options at a 46,488 MSRP for 37,000 + state tax. Works out to a bit over 20% off. Used the email method of requesting offers from 6 dealers within a 100 mile radius. Two were almost identical and it ended up with picking the color combination and closest dealer of the 2. Took about 10 minutes of financial discussion. It was almost too easy (probably left some money on the table?). But it's a beautiful car - white / flaxen.
Congrats! Yeah, they really need to get rid of them now that the 2019's are showing up.
Congrats! Yeah, they really need to get rid of them now that the 2019's are showing up.
It looks like the dealers have been quite successful in paring down their inventories of the 2018 ES.
I just checked the web sites of 3 Lexus dealers. Two of those only had one remaining 2018 ES. The third, which is one of the largest volume Lexus dealer in the region, normally would have 50 or more ES in its inventory. Today, they only have 17 left.
So, for those still interested in buying up a 2018 ES, the pickings appear to be getting pretty slim.
If you can wait a few weeks, at some point in May, Lexus should be starting its 2nd best sales event of the year. Even better, around the middle of the summer is when, in addition to bigger advertised rebates, dealers will start to get significant unadvertised incentives from Lexus to help them start to clear out their remaining 2018 model year inventory. Typically, late August or early September is the sweet spot when pricing should be at its lowest and there is still a nice selection of cars from remaining inventory. With the Generation 7 ES soon to be announced, I would expect that there should be very attractive rebates and pricing for the 2018 ES.
Can you use those same unadvertised incentives to order from the factory?
When do they stop building new 2018s?
Last edited by nuraman00; Aug 29, 2018 at 03:04 PM.
We are already near the 20% mark. My wife had a 2013 ES 350 which she loved and we traded it in for a 2018 ES 350. Last night we where clearing out her car to buy her a Benz GLC which she liked and she started crying. She said I really love this car and I don't want to give it up but she wanted the new safety features. I then knew what I had to do. Drove over to my local Lexus dealership and got her the same color combo with more features. She is very happy!
Deal: MSRP 45,332.00. Got it for $37,000. That is 18.37% off MSRP. This 18.37% number included the $4,000 lease incentive. Took about 5 minutes to get the deal but I don't play games and had my ducks in a row. Good luck, deals can be had. To be fair the dealer was great and it was the easiest car deal I have ever done. Money factor was .00001 AKA 1/4 of 1%. LMAO! How could I not lease this car.
P.S: Happy wife, happy life.
So you ended up getting the 2018 ES 350 over the Benz GLC, right?
Can you use those same unadvertised incentives to order from the factory?
When do they stop building new 2018s?
I'm guessing that Lexus stopped building the 2018 ES around a couple of months ago. There is a member here at CL who works in the Kentucky plant that builds the ES. I'm sure that he could tell us exactly when the production of the 2018 ES stopped and when they started to re-tool the assembly lines to build the 2019 ES.
Generally speaking, incentives that Lexus offers to dealers are only available on cars that are already in a dealer's inventory, and they are not available on special order vehicles. That is why you can buy a car from a dealer's inventory for the same price that you would pay for a special order vehicle that is less well-equipped.
Just a word of caution about the Costco Auto Program. Their price quote is likely to be okay, but it is not likely to be even close to as good as what is possible. It just makes sense that, when you add a middleman to the process, that middleman is going to be taking his/her cut, and that means a higher final price.
That was my experience.
I was able to negotiate more than what the Costco Auto program offered, this year.
I'm planning on buying a 2019 when they come out in the fall. I contacted my dealer - where I bought the 2013 - and asked if they still accept Costco Auto Buying Program. The salesman stated that they do but usually the price is lower without ANY auto buying program as they must reimburse the program when a sale is consummated. I was surprised but happy to hear that I could use my superior negotiating skills when I'm ready for the new 2019... JK, JK...
I actually plan to utilize the LESZ AUTO BUYING PROGRAM to buy the car and pay as little as I can... In any case, I wish you good luck with your search Dmaxdmax...
The "wire the money" part makes me nervous... As Les states, examine the sales sheet line by line. Typical add-ons are engine additives, "special" wax, engraved VIN on the windows,
Scotchgard the carpets, nitrogen filled tires, (the air you're currently breathing is 78% nitrogen) and other stupid crap that just adds cost and profit for the dealer. I'd be extra careful with this transaction... Good Luck!
There should probably be a sticky post with this, and any other of these silly add-ons.
I'm guessing that Lexus stopped building the 2018 ES around a couple of months ago. There is a member here at CL who works in the Kentucky plant that builds the ES. I'm sure that he could tell us exactly when the production of the 2018 ES stopped and when they started to re-tool the assembly lines to build the 2019 ES.
Generally speaking, incentives that Lexus offers to dealers are only available on cars that are already in a dealer's inventory, and they are not available on special order vehicles. That is why you can buy a car from a dealer's inventory for the same price that you would pay for a special order vehicle that is less well-equipped.
When I special-ordered mine, the deal was negotiated on Jan 3rd. They said they couldn't apply rebates until delivery.
Delivery was April 14th. At that time, they had $1000 cash back (which was better than the $750 in January). So I was able to use the cash back.
So wasn't I able to use the incentive too?
Or, is an unadvertised incentive different from an advertised incentive?
