Lease program changes after June 30th
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From: NY
Lease program changes after June 30th
Now that the 06's have been out for a while now and the new 07's are about to come out, I'm wondering what that is going to mean for the 06's. A couple dealers recently told me that any quotes given now will no longer be good after June 30th more than likely because theLexus leasing program is going to change and more than likely the residual will drop. That sucks for me because I recently got a quote on a lease for $2700 off MSRP for an AWD IS 250 with navigation but I wasn't planning to get it until mid to late July. I'm confused because I figured that the later I waited to get my 250 the less I would pay because the hype would have died down and the next year's vehicles would be coming out. How can that happen when the residual will be even lower?
Lexus Test Driver
Joined: Apr 2002
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From: Ft. Lauderdale, FL
When you lease a car, you are basically paying for the amount of money that it loses in value over the term of the lease. The residual value is the value they predict the car to be when the lease term is up. For example, if on a 40,000 car, the residual is recalculated to be 20,000 instead of 22,000 after 4 years, then that means you are basically paying for a 20,000 drop in value instead of the 18,000 that had been originally calculated. This is why your lease rate will likely go up a bit if lexus lowers residuals. That combined with the fact that interest rates are rising as the economy is slowly swinging back up....
Lexus Test Driver
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From: Ft. Lauderdale, FL
Hmm... i'd assume so. However, I think Lexus starts discounting outgoing model years starting in August. What month is the 07 IS coming out? If you can find leftover ones 1-2 months after this you should be good to go!
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From: Mo
not always the case. the residual will probably go down 2%. since they're are no specials on financing they'll probably stay the same. if they're are any left over cars you might get a better discount. 07's should be at MSRP for a while.
Lexus Champion
Joined: Jun 2003
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From: Oregon
Originally Posted by tragic22
I understand that but what I'm saying is that as the 07's are about to come out shouldn't the 06's pretty much be more affordable/ cheaper.
Driver School Candidate
Joined: May 2006
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From: Orange County, CA
When the '07's come out it would make sense that cap cost would be reduced at a larger percentage than the residual would drop. From what I've seen it's been either a 1% drop or remained even on a month-to-month basis for the past 3 months. When the '07's come out I bet you'll hear the '06's going for around invoice.
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From: NC
I would have to imagine that by September, whatever is left on the lot, '06 wise will be cheaper to lease than right now, but you will have to take what is available...Taking the good (lower monthy) with the bad (less choice of color and options)...I plan to wait to see what kind of a deal I can get as my color choices and option choices are very flexible...Let me know what you work out!
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Racer
Joined: Feb 2006
Posts: 1,419
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From: AZ
I'm not sure that leasing at the end of a model year is ever a good deal. The puchase price will be the lowest, but the residual will also reflect that the car is a year old even when it is leased so that the net amount of the lease could be more than at the beginning of the model year particularly if it is a short term (3 year) lease. Model year end prices are good, however, for the buyer since this is likely the lowest purchase price and highest incentives of the year. If you keep a car only a short time, you still get hit at trade-in time since your new car started life already a year old. You should get some of that loss back in the low mileage premium since your 2006 would have virtually no miles until the start of the 2007 model year.
If you are determined to lease, I'd wait and get a 2007!
Steve
If you are determined to lease, I'd wait and get a 2007!
Steve
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From: NY
Originally Posted by oldcajun
If you are determined to lease, I'd wait and get a 2007!
Steve
Steve
But that's just me.
Im just hoping that when the residual drops next month that the price the dealer is selling it for drops too.
Lexus Champion
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From: FL
Originally Posted by tragic22
I understand that but what I'm saying is that as the 07's are about to come out shouldn't the 06's pretty much be more affordable/ cheaper.
Lead Lap
Joined: Dec 2001
Posts: 491
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From: North Jersey
An 06 will be worth less than an 07 at the end of the lease...so you dont automatically svae more as you need to eat up some of the payment. Sometimes I dont get it, if you want the car and the time is right for YOU to buy it now, why not buy it? There is not going to be much a difference in price anyway. Some of the 05 IS3s were leasing for a small fortune, because the car is utterly worthless after 3 years.
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