Lease Deals for 2013 ES
#16
Lexus Test Driver
Bill G
#17
Lexus Fanatic
I have absolutely seen dealers reduce residuals...
#18
Lexus Test Driver
Ok Steve - I guess we'll have to be content with your short answer without further elaboration. I've just never personally seen it happen but I will certainly watch out in the future. I've only ever leased Hondas, Acuras and Lexus's and the residuals are usually high enough that when combined with a well negotiated selling price and low money factor, the result is a good deal on the lease payment.
I still find it amazing that someone is able to lease a new ES350 for 400 bucks a month with nothing up front - that's a pretty good deal.
Bill
I still find it amazing that someone is able to lease a new ES350 for 400 bucks a month with nothing up front - that's a pretty good deal.
Bill
#19
Lexus Fanatic
what is there to elaborate on? The residual is set by LFS, dealers cannot raise it, but they can lower it, and lowering it makes them back door profit. I have had dealers quote me residuals that were lower than the manufacturer's residual for the month, and I have taken my business to dealers who offer the proper residual.
I have been leasing cars for years, I have never had a lease calculated properly the first time. Dealers try and pad money factors, mess with residuals, apply taxes weird ways. Anything to get more profit, it's easy for them to do in a lease because there are so many terms and most consumers don't really know how a lease works.
I have been leasing cars for years, I have never had a lease calculated properly the first time. Dealers try and pad money factors, mess with residuals, apply taxes weird ways. Anything to get more profit, it's easy for them to do in a lease because there are so many terms and most consumers don't really know how a lease works.
Last edited by SW17LS; 10-05-13 at 12:08 PM.
#20
Lexus Test Driver
LOL, what is there to elaborate on? The residual is set by LFS, dealers cannot raise it, but they can lower it, and lowering it makes them back door profit. I have had dealers quote me residuals that were lower than the manufacturer's residual for the month, and I have taken my business to dealers who offer the proper residual.
I have been leasing cars for years, I have never had a lease calculated properly the first time. Dealers try and pad money factors, mess with residuals, apply taxes weird ways. Anything to get more profit, it's easy for them to do in a lease because there are so many terms and most consumers don't really know how a lease works.
I have been leasing cars for years, I have never had a lease calculated properly the first time. Dealers try and pad money factors, mess with residuals, apply taxes weird ways. Anything to get more profit, it's easy for them to do in a lease because there are so many terms and most consumers don't really know how a lease works.
Thanks, Bill
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.... I ask for an itemized breakdown of the numbers so I can compare. I don't recall any disparity as far as the residual is concerned. It doesn't make sense that if a dealer wanted to be competitive, they would play with such an obvious part of the numbers - but dealers do strange things. As I said, I will take your info and tuck it away as something to look for in the future.
Thanks, Bill
Thanks, Bill
#22
Lexus Fanatic
The whole way a lease is calculated and presented is designed to confuse the consumer...
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Here is how I calculated the lease payment.
1. First I calculated the total lease payment amounts over the lease period. Then I divide the amount with number of months in lease. This is not an accurate number but is very close and is definitely more than what it should be so if your dealer gives you a bigger number, you know you are being screwed.
2. Lease payments can be put into three categories. (i) Depreciation. This is the difference between the purchase price (negotiated one, not the MSRP) and residual value (usually given by lease company. it is expressed as a %age of MSRP). In my case, this was 37,038-26,2581=~10,800.
(ii) Finance charges. You take the money factor and multiply with 2400 to get the interest rate (%/year). Since leasing a car means you are borrowing money to pay for it, multiply the purchase price with interest rate times no. of years in lease. In my case, interest rate was (.00060*2400=1.44%/year) so the total interest charges were 37,038*(1.44/100)*27/12=1200). The actual lease finance charges should be less than this since the value of the car is reducing every month, meaning you are borrowing progressively less.
(iii) Title charges and other fees.
When I added them all up and applied the 1800 lease discount that Lexus was offering, I got a number that was slightly above 400 but the dealer's calculation came back with 400. Probably a big explanation but I thought this is necessary to share since people can still be screwed over for 1600-2000 even after you are looking at good MF, residual, purchase price.
1. First I calculated the total lease payment amounts over the lease period. Then I divide the amount with number of months in lease. This is not an accurate number but is very close and is definitely more than what it should be so if your dealer gives you a bigger number, you know you are being screwed.
2. Lease payments can be put into three categories. (i) Depreciation. This is the difference between the purchase price (negotiated one, not the MSRP) and residual value (usually given by lease company. it is expressed as a %age of MSRP). In my case, this was 37,038-26,2581=~10,800.
(ii) Finance charges. You take the money factor and multiply with 2400 to get the interest rate (%/year). Since leasing a car means you are borrowing money to pay for it, multiply the purchase price with interest rate times no. of years in lease. In my case, interest rate was (.00060*2400=1.44%/year) so the total interest charges were 37,038*(1.44/100)*27/12=1200). The actual lease finance charges should be less than this since the value of the car is reducing every month, meaning you are borrowing progressively less.
(iii) Title charges and other fees.
When I added them all up and applied the 1800 lease discount that Lexus was offering, I got a number that was slightly above 400 but the dealer's calculation came back with 400. Probably a big explanation but I thought this is necessary to share since people can still be screwed over for 1600-2000 even after you are looking at good MF, residual, purchase price.
#24
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Easier thing to do is to just use a lease calculator
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I bought my first Lexus last Sunday. My 2013 ES350 came with Luxury Package, Nav Package, Blind Spot Monitor w/ Rear Cross Traffic Alert, 18" wheels with Liquid Graphite Finish, HID Headlights, Power Rear Sunshade, Parking Assist, Rain Sensing Wipers, Wood and Leather Trimmed Shift **** and Steering Wheel, Rear Lip Spoiler, Trunk, Cargo Net, Whl Locks and Rear Bumper App. MSRP was $45,002, and selling price was $39,700, 36 months, 10k/year, residual 60%, and money factor .0006, with zero down, monthly payment of $428. I only had to pay first month. I am happy with my purchase!
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Leased a 2013 ES300h with luxury package last night for $389.14/mo for 27 mos 10k mi/yr, tax included with $2800 drive off (fully refundable security deposit). Here are the details:
$46577 MSRP
$41000 sale price
$1800 lease rebate
0.67 residual
0.00004 money factor (0.0006-7*(0.00008)) using multiple security deposit (7X$400), refundable at end of lease. Lexus allows maximum of 9 security deposits but limited to 7 because can't have negative money factor.
$10117.64 out of pocket over 27 months.
payments are ~$40 more a month when not using multiple security deposit, since money factor will be 0.0006.
Using this method, you can buy the car at the end of the lease for over $1k less than if you bought it outright from the start because of the $1800 lease rebate.
Never thought that I would ever lease a car but if I end up buying after, the $1k savings makes it a no brainer.
$46577 MSRP
$41000 sale price
$1800 lease rebate
0.67 residual
0.00004 money factor (0.0006-7*(0.00008)) using multiple security deposit (7X$400), refundable at end of lease. Lexus allows maximum of 9 security deposits but limited to 7 because can't have negative money factor.
$10117.64 out of pocket over 27 months.
payments are ~$40 more a month when not using multiple security deposit, since money factor will be 0.0006.
Using this method, you can buy the car at the end of the lease for over $1k less than if you bought it outright from the start because of the $1800 lease rebate.
Never thought that I would ever lease a car but if I end up buying after, the $1k savings makes it a no brainer.
Last edited by joebruin; 10-20-13 at 12:22 PM.
#27
Leased a 2013 ES300h with luxury package last night for $389.14/mo for 27 mos 10k mi/yr, tax included with $2800 drive off (fully refundable security deposit). Here are the details:
$46577 MSRP
$41000 sale price
$1800 lease rebate
0.67 residual
0.00004 money factor (0.0006-7*(0.00008)) using multiple security deposit (7X$400), refundable at end of lease. Lexus allows maximum of 9 security deposits but limited to 7 because can't have negative money factor.
$10117.64 out of pocket over 27 months.
payments are ~$40 more a month when not using multiple security deposit, since money factor will be 0.0006.
Using this method, you can buy the car at the end of the lease for over $1k less than if you bought it outright from the start because of the $1800 lease rebate.
Never thought that I would ever lease a car but if I end up buying after, the $1k savings makes it a no brainer.
$46577 MSRP
$41000 sale price
$1800 lease rebate
0.67 residual
0.00004 money factor (0.0006-7*(0.00008)) using multiple security deposit (7X$400), refundable at end of lease. Lexus allows maximum of 9 security deposits but limited to 7 because can't have negative money factor.
$10117.64 out of pocket over 27 months.
payments are ~$40 more a month when not using multiple security deposit, since money factor will be 0.0006.
Using this method, you can buy the car at the end of the lease for over $1k less than if you bought it outright from the start because of the $1800 lease rebate.
Never thought that I would ever lease a car but if I end up buying after, the $1k savings makes it a no brainer.
#28
Lexus Test Driver
Leased a 2013 ES300h with luxury package last night for $389.14/mo for 27 mos 10k mi/yr, tax included with $2800 drive off (fully refundable security deposit). Here are the details:
$46577 MSRP
$41000 sale price
$1800 lease rebate
0.67 residual
0.00004 money factor (0.0006-7*(0.00008)) using multiple security deposit (7X$400), refundable at end of lease. Lexus allows maximum of 9 security deposits but limited to 7 because can't have negative money factor.
$10117.64 out of pocket over 27 months.
payments are ~$40 more a month when not using multiple security deposit, since money factor will be 0.0006.
Using this method, you can buy the car at the end of the lease for over $1k less than if you bought it outright from the start because of the $1800 lease rebate.
Never thought that I would ever lease a car but if I end up buying after, the $1k savings makes it a no brainer.
$46577 MSRP
$41000 sale price
$1800 lease rebate
0.67 residual
0.00004 money factor (0.0006-7*(0.00008)) using multiple security deposit (7X$400), refundable at end of lease. Lexus allows maximum of 9 security deposits but limited to 7 because can't have negative money factor.
$10117.64 out of pocket over 27 months.
payments are ~$40 more a month when not using multiple security deposit, since money factor will be 0.0006.
Using this method, you can buy the car at the end of the lease for over $1k less than if you bought it outright from the start because of the $1800 lease rebate.
Never thought that I would ever lease a car but if I end up buying after, the $1k savings makes it a no brainer.
Enjoy your new car!
Bill G
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