bocabailey

I am fairly new to this forum and have been impressed by the support each other gives. Thought I'd give a bit of my own. Lexus Finance allows you to put 9 security deposit payments down on your lease and they reduce the money factor by .0009. To figure out the interest rate reduction, multiply that by 2400 (multiply any money factor by 2400 to get the APR) and you reduce the rate by 2.16%. Since on a lease you are paying interest on the total cap cost (negotiated cost of vehicle) and not only on the residual amount of the car, this adds up to a lot of savings. The difference for me, on a vehicle that had an MSRP of just over $55k, was a little over $50/mo or $600 or so per year. The deposit amount was about $5,400. At todays rates (let alone paying income tax on the interest earned from a bank, etc) its about a 10% return on your money. Since it is with Lexus Finance, I'm not worried about them being picky when you return the car as they want you to lease another Lexus.

I heard that some states (like NY) don't offer this. I'm in Florida.
Hope it helps.