Tvue83

Hey guys, first post here. I've been thinking about leasing a new is200t and have done my due diligence. I've ran some numbers and I've come up with $290 for my monthly before taxes and added fees. I'm expecting after fees and gap insurance, it will be around $340 to $350. Does this look right based off a msrp of $38949, final cap cost of around $32k, money factor of .0005, and 63% residual. I'm also projecting my drive off to be around $1250 out of pocket. Any input would be appreciated.

schwed

If the cap cost, residual, and money factor values are correct it should be below $300 a month with tax with 0 down.

kyoungjook

Doing the math, you take MSRP ($38,949) x Residual (0.63) to get the residual dollar amount ($24,527.87). Then, take your cap cost ($32,000) and subtract the residual dollar amount, to get the total depreciation cost over the life of the lease ($7,472.13). Assuming this is a 36 month lease, divide the total depreciation cost by the number of months to get the base, monthly amount ($7,472.13/36=$207.56).

Then, to determine the monthly money factor, add the residual dollar amount to the cap cost ($24,527.87 + $32,000), and multiply by the money factor (0.0005) to get $28.26. So, your pre-tax monthly payment should be $207.56 + $28.26 = $235.82. Add CA 8.50% sales tax to that to get your total monthly payment - $235.82 x 8.25% = $255.86. This is assuming $0 down, and assuming that tax, title and license fees are rolled into the cap cost. If not, you'll need to either add those and re-do the math, or just pay them upfront.

Why are you purchasing Gap insurance on a lease? If you don't put anything down, then I don't believe you're at risk in the event of a total loss (i.e. car stolen or totaled).

Tvue83

Does the cap cost include taxes? If so is it the full amount of the car or just the msrp - the residual?

kyoungjook

Net Cap Cost can generally be thought of as the final, negotiated price of the car, less any applicable deductions, incentives, etc. However, it does not include taxes, fees, etc.

In CA, for car leases, taxes are paid on a monthly basis. So, you would just add the applicable sales tax rate to your monthly lease payments to get the total amount due.

Other fees, i.e. acquisition fee, tax, title and license, can either be paid up front, or they can be "rolled into" the lease, meaning they get added to the Net Cap Cost.

Tvue83

thanks man. how about the drive off fee? can that be rolled into the monthly to or no?

kyoungjook

The "drive off fee" is typically some combination of tax, title, license, acquisition fees, and 1st months' payment, although I recall Lexus generally waiving the 1st months' payment. There isn't some separate, additional drive off fee. So, in theory, you can roll everything into the lease and walk away paying nothing, although some dealers will (incorrectly) insist that you pay SOMETHING before signing. Make sure you look at the numbers, understand how to calculate the payments yourself, and double check everything to make sure that they aren't adding any mysterious fees or charges.

Tvue83

I have pretty good credit, tier 1 im assuming. Does the dealer base money factor on credit history?

kyoungjook

Yep, money factor is based on credit, but the base money factor is assuming Tier 1 credit - it can't go any lower, but can go higher if your credit is worse. You also have the option to put down Multiple Security Deposits, each of which will lower your money factor. Each Security Deposit is typically equal to 1 months' payment, and given your payments are so low, this might make sense.

Tvue83

So assuming that i have tier 1 credit, will they set the mf to 0.0006? What the lowest mf you can get?

kyoungjook

Lexus determines the applicable money factor, and it can change from month to month. The dealer has no ability to deviate from the rates. I believe right now, it is 00110. Even with security deposits maxed out, I don't know that you're going to get to .0006.

Tvue83

I see. Thank so much for the information.

Skk378

is that for 10k miles? dealer is giving me 330/mo with 1500 down/drive off fee (need to get a clearer breakdown of how they got this # tmrw) for 12k miles using grad student incentive... not sure if this is the best deal.. maybe i should of negotiated harder...

Tvue83

Sorry, this was just a best case scenario type numbers. So far the best offer they have given me is, 375 per month, including ttlr, no money down and no drive off fee. this was for a base model is200t, msrp of about 38959.

Skk378

Thanks for the reply. What is ttlr? And are you also in the OC area?