2014 Lexus Lease rate reduction August?
 

Just ordered the 2014 Lexus IS.
Was only able to get 500$ off MSRP

Haven't decided to finance or lease yet.

Was told by the dealer that there'd be a lease reduction rate sometime in late august/september.. That will be about the time when i take delivery.


Right now monthly payment for a 2014 IS AWD Executive F Sport package with 0 down 2014 IS is around 740$ for a 4 year lease at 3.9% rate , residual 51%.

Another salesman i went to to inquire about the IS did a bunch of calculations and the interest is around 5000$ paid for these 4 years of leasing.

:/ seems like its a bad time to lease right now. Maybe Finance ? What do you guys think? I do intend to keep the car for more than 4 years.

http://i41.tinypic.com/214pmk8.jpg

Did a quick loan calculator:

$50,000 loan @ 1.9% for 60 months yielded payment of $870. Total interest paid over the 5 years was 2,452.

Here in Los Angeles money factor I got was .0016, with a residual vale of 56%.

51% you were quoted is low

From my experience having bought the CT and RX in the last two years (and now the IS), 3.9% in Canada will stick around for several months after launch. It's actually a fairly decent rate for a brand new model if you think about it. I expect '13 models to drop their rates in Aug/Sep to make room for the '14s, but I doubt it will apply to the IS. Earliest would be the November time frame that would last at least throughout the winter months in an attempt to boost sales in an inherently slower selling season, but neither I nor the sales rep has a crystal ball.

For me, as a general rule of thumb, if you plan on keeping it at least 6 -7 years or more, buy to own it but finance it at the shortest term possible with rates equal to or better than lease rates (or ideally, you have a sizeable down payment or all the money to buy the car upfront to further save on interest costs). On the flip side, the nice thing about leasing is it gives you a lower monthly payment and you give the car back generally before major wear and tear items will need replacing , like some for a first time (brake pads and/or rotors), others maybe a second time like tires. Also, maybe your rep didn't say this but with Toyota Financial Services, for every $5K you put in as a 100% refundable deposit, the rate drops 0.5% - something to consider.

Good luck. :thumbup:

I went to a few dealers for lease rates and the best I got was a 27 month lease @$535/month (15k miles/year). But this was with $2995 down + taxes, first month payment, and fees which came out to a grand total of $5944 due at signing.

oh and this was for a 350 f-sport with navi& blind spot monitoring.

Residual was 70% with buyout of $33,xxx. Money factor was .00130

So is this good or bad?


Posted from ClubLexus.com App for Android

What is the payment, residual, money factor on a 36 month lease?

IMHO the sweet spot for LFS is a 36 month lease...

Here is a link to a lease calculator that will let you know how good of a deal you are getting. You will have to know the MSRP, negotiated sales price, fees, money factor, sales tax rate, months, and milage. At least gives you a point of reference.

http://www.ridewithg.com/calculator/index.html

Wait longer if you want a better rate. It's as simple as that. The car is still new and supply and demand is dictating sale prices. This winter should yield some attractive deals and incentives.

They are really cashing in on demand for this new IS. I lease 2013 fully loaded GS 350 F sport and I'm paying 640 over a four-year lease with zero down. And that car MSRP'd at almost 60 k. Why not just get the nicer car and save money in the process.

Not sure why anyone would do a 4 year lease except to write it off for business. Finance it if you want it for 4 years. Most people that lease just want to give it back and get something new when the lease is up

There are 3 main reasons people lease a car:

1. Cant afford the payment if they were to buy
2. Want to get something new in 2-3 years
3. Need a business write off

Oh and when you lease you may have a lower payment but when the lease is up you have to either pay cash for the payoff or get another loan. A car purchased after a lease with a loan could mean you are paying for the car for 7 plus years which is nuts (see #1)

PenFed Credit Union is at .9% for 48 months,
1.74% for 60 or 72 months.. Hard to beat!!

Cheers, Zale

You missed one:

Do not know how or do not want to take care of a car.. ha!

Cheers,

Zale