Anyone know what the bottom line, Tier 1 money factor is from Lexus Financial for a 36 month lease on the HS? I'm thinking it should be .00215 or lower.

Today will probably be the day I make the deal. So far I've been quoted .00275 and .00245.

 

After visiting 6 dealers here in South Florida, I could only get two to quote lease rates without committing to a deal, rates were .00295 and .00255 for a 36 mo. lease with a 64% residual! .00245 looks pretty good @ 5.88%. Residual on a 48 mo. lease was quoted at 55% with the same money factors.

 

NO GO!

Maybe not forever, but certainly for today. I will still really like this car after this initial crush of people willing to pay full MSRP backs off. The payment numbers just don't make sense at MSRP and no discount on the money factor.

To be continued . . .

 

What was the rate per month that you were quoted I am seeing about $400 for 48 and about $450 for 36 from what you posted. I am afraid to ask what the wait time is for one now as this may change your rates.

 

Another data point from my purchase today.

The residuals on the HS, particularly at 24 months, are pretty good at the moment. I was quoted a residual of 72% for a HS250 Premium with Nav and Tech Packages. The money factor is at .00235. These rates should be good through January 4th.

In other news, dealers in SoCal are DEALING for HS250's on the lot. I wound up negotiating ~$500 over invoice for mine, so if I can, you can too.

- T

 

just off the cuff the dealer here told me a residual of 70% on a 33 month lease

 

I never leased a car but how does the money factor and interest rates and payments come into place when it comes to a lease?

 

Best FAQ on the subject is located here: http://www.leaseguide.com/lease07.htm

Essentially the leasing company (in this case, Lexus Financial Services) is purchasing the entire car and renting the car back to you for you to drive. They spent their money to buy your car. The money factor is the interest they are expecting you to pay in exchange for them buying the car for you so you can lease it.

The residual value is the % of the original value the car will have at the end of the lease. The higher the %, the less it'll cost you to lease the car. In a lease, you're only paying for the portion of the car you use. In my case, 24 months of its lifespan. They are saying that at the end of 24 months, the car will be worth 72% of what it stickered for.

The other way to save money on the lease is to negotiate a discount on the sticker price. Residual values are calculated on the sticker price. Your monthly payment is NOT. It's calculated on the cap cost, which is (hopefully) a discounted price of the car from the sticker price.

All of this and more is covered in the FAQ I linked for you above.

Essentially, leasing is renting your car. Just like renting an apartment, except this is what you drive as opposed to what you live in.

- T

 

Cool.... good to know. Thanks for the info...