RX Lease help needed.
08-23-11, 06:45 PM
#1
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RX Lease help needed.
Was looking into leasing an RX but wasn't sure how the process worked.
Is the price of the vehicle still nagotiable?
Can I sell the car at the end of the term or do I have to turn it in?
Is the down payment negotiable?
Would the down payment be considered a loss?
What portion am I paying taxes on?
What would be a good monthly payment on an RX? Only things I'm looking for is Nav.
Let me know if there is anything else I should be thinking of.
Thanks....
Is the price of the vehicle still nagotiable?
Can I sell the car at the end of the term or do I have to turn it in?
Is the down payment negotiable?
Would the down payment be considered a loss?
What portion am I paying taxes on?
What would be a good monthly payment on an RX? Only things I'm looking for is Nav.
Let me know if there is anything else I should be thinking of.
Thanks....
08-23-11, 09:53 PM
#2
You have to turn the car in at the end of your lease contract. To my knowledge, you can't make any modifications to the car for personal touches, correct me if I'm wrong. That's why I don't like leasing.
Leasing is good if you like to switch cars every few years and don't do road trips but just the thought of keeping track of my mileage each year and not have that freedom to where I can do road trips without having to pay extra is a no go in my book.
Leasing is good if you like to switch cars every few years and don't do road trips but just the thought of keeping track of my mileage each year and not have that freedom to where I can do road trips without having to pay extra is a no go in my book.
08-23-11, 11:21 PM
#3
Lexus Test Driver
here's a different perspective.
Even though we are 100 percent sure that we'll be buying the Lexus, we lease it first for the first 3 years. then buy it at it's residual value.
since we have plans of buying it, i really don't care about the 10,000 or 15,000 miles/ year on the lease agreement.
the logic here is, i'm paying less per month compared to buying it outright.
i'm not paying for the Sales Tax ( 8.5% of purchase price here in CA) right away.
i will be paying for it after 3 years when i decide to take over the car.
without going through the details like money factor, residual value etc.
the only thing you can negotiate is the purchase price ( even if you're leasing).
getting it a couple of grand below the invoice is a good deal.
Now it depends on how much RX 350 you wanted, the monthly payment adjusts accordingly,
as for us a 2011 Lexus RX FWD without Navi, premium package, comfort package, standard alloy wheels costs $509 before taxes with $3,500 due at signing.
the due at signing part contained the first monthly payment.
Even though we are 100 percent sure that we'll be buying the Lexus, we lease it first for the first 3 years. then buy it at it's residual value.
since we have plans of buying it, i really don't care about the 10,000 or 15,000 miles/ year on the lease agreement.
the logic here is, i'm paying less per month compared to buying it outright.
i'm not paying for the Sales Tax ( 8.5% of purchase price here in CA) right away.
i will be paying for it after 3 years when i decide to take over the car.
without going through the details like money factor, residual value etc.
the only thing you can negotiate is the purchase price ( even if you're leasing).
getting it a couple of grand below the invoice is a good deal.
Now it depends on how much RX 350 you wanted, the monthly payment adjusts accordingly,
as for us a 2011 Lexus RX FWD without Navi, premium package, comfort package, standard alloy wheels costs $509 before taxes with $3,500 due at signing.
the due at signing part contained the first monthly payment.
08-24-11, 08:00 PM
#5
I've found http://www.leaseguide.com to be a very helpful site, although you do have to buy a subscription (I forget the cost). Not only is there basic information about leasing, but there are also good tools for evaluating the lease offer. HTH
08-25-11, 03:34 PM
#6
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I leased my 2009 Lexus RX350 and found it to be very worthwhile. I negotiated a killer sales price into the lease. I guess the dealer needed to hit the quota. After 30 months of a 3yr lease, I ended up buying it. The process was great. The benefit to me was getting a good car and not paying for the excess mileage I had on it. The lease statement is very clear about what the buyout would be. You can check it any time.
08-27-11, 05:07 AM
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here's a different perspective.
Even though we are 100 percent sure that we'll be buying the Lexus, we lease it first for the first 3 years. then buy it at it's residual value.
since we have plans of buying it, i really don't care about the 10,000 or 15,000 miles/ year on the lease agreement.
the logic here is, i'm paying less per month compared to buying it outright.
i'm not paying for the Sales Tax ( 8.5% of purchase price here in CA) right away.
i will be paying for it after 3 years when i decide to take over the car.
without going through the details like money factor, residual value etc.
the only thing you can negotiate is the purchase price ( even if you're leasing).
getting it a couple of grand below the invoice is a good deal.
Now it depends on how much RX 350 you wanted, the monthly payment adjusts accordingly,
as for us a 2011 Lexus RX FWD without Navi, premium package, comfort package, standard alloy wheels costs $509 before taxes with $3,500 due at signing.
the due at signing part contained the first monthly payment.
Even though we are 100 percent sure that we'll be buying the Lexus, we lease it first for the first 3 years. then buy it at it's residual value.
since we have plans of buying it, i really don't care about the 10,000 or 15,000 miles/ year on the lease agreement.
the logic here is, i'm paying less per month compared to buying it outright.
i'm not paying for the Sales Tax ( 8.5% of purchase price here in CA) right away.
i will be paying for it after 3 years when i decide to take over the car.
without going through the details like money factor, residual value etc.
the only thing you can negotiate is the purchase price ( even if you're leasing).
getting it a couple of grand below the invoice is a good deal.
Now it depends on how much RX 350 you wanted, the monthly payment adjusts accordingly,
as for us a 2011 Lexus RX FWD without Navi, premium package, comfort package, standard alloy wheels costs $509 before taxes with $3,500 due at signing.
the due at signing part contained the first monthly payment.
Scott
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08-29-11, 06:36 PM
#8
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Here are some answers to your questions...
Was looking into leasing an RX but wasn't sure how the process worked.
Is the price of the vehicle still nagotiable?
YES, absolutely. You should negotiate the sale price BEFORE you start with lease numbers. No down-payment either.
Can I sell the car at the end of the term or do I have to turn it in?
YES, if you make sure your lease agreement includes that clause. Most standard leases from MF have that clause (closed-end lease, with gap insurance) Now, if you don't know what these mean, along with Money Factor and Residual %, you should start by reading about leasing A LOT.
Is the down payment negotiable?
Not only is it negotiable, it is absolutely NOT recommended. If your car gets stolen/totaled, you loose the money.
Would the down payment be considered a loss?
Most likely YES. Check your state's laws
What portion am I paying taxes on?
Each state has different laws. In NYC, we pay tax on total amount financed (leased) + interest. That amount is calculated at Sale Price - Residual % x # Leased Months (residual % is determined by the length and annual mileage allowance)
What would be a good monthly payment on an RX? Only things I'm looking for is Nav.
This greatly depends on the current market prices in your area on RX, plus current lease rates, which I'd think should be pretty low given the whole state of US economy. Shop around, get multiple quotes, then compare against those posted online in your area.
Let me know if there is anything else I should be thinking of.
Know basics about leasing: who owns the car, what your responsibilities are during ownership, can you terminate the lease early (in most cases, you have a buyback figure -- you CAN sell your leased car to third party, most likely at a loss, however, but the point is you CAN sell). Also, do not come near dealership until you understand how to plug-in and calculate the numbers using this Lease Calculator. Get the dealer to email you the full write-up of these numbers, then crunch them yourself. Your numbers will never 100% match, but they should come close within 1K from quoted.
Thanks....
Is the price of the vehicle still nagotiable?
YES, absolutely. You should negotiate the sale price BEFORE you start with lease numbers. No down-payment either.
Can I sell the car at the end of the term or do I have to turn it in?
YES, if you make sure your lease agreement includes that clause. Most standard leases from MF have that clause (closed-end lease, with gap insurance) Now, if you don't know what these mean, along with Money Factor and Residual %, you should start by reading about leasing A LOT.
Is the down payment negotiable?
Not only is it negotiable, it is absolutely NOT recommended. If your car gets stolen/totaled, you loose the money.
Would the down payment be considered a loss?
Most likely YES. Check your state's laws
What portion am I paying taxes on?
Each state has different laws. In NYC, we pay tax on total amount financed (leased) + interest. That amount is calculated at Sale Price - Residual % x # Leased Months (residual % is determined by the length and annual mileage allowance)
What would be a good monthly payment on an RX? Only things I'm looking for is Nav.
This greatly depends on the current market prices in your area on RX, plus current lease rates, which I'd think should be pretty low given the whole state of US economy. Shop around, get multiple quotes, then compare against those posted online in your area.
Let me know if there is anything else I should be thinking of.
Know basics about leasing: who owns the car, what your responsibilities are during ownership, can you terminate the lease early (in most cases, you have a buyback figure -- you CAN sell your leased car to third party, most likely at a loss, however, but the point is you CAN sell). Also, do not come near dealership until you understand how to plug-in and calculate the numbers using this Lease Calculator. Get the dealer to email you the full write-up of these numbers, then crunch them yourself. Your numbers will never 100% match, but they should come close within 1K from quoted.
Thanks....
Last edited by data2009; 08-29-11 at 06:40 PM.
08-29-11, 06:49 PM
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Yes, its partially true. You do want to make sure your mileage stays within the lease allowance. But if you come upon the need to drive more, you can always consider a buy-back in the lease' end, if you make sure the lease contains such clause when you purchase it. Otherwise, you would also be looking at lower $$ when you sell your car in equal term (say 4 years) that has 100k miles on it. Would you not?
09-03-11, 08:51 AM
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some answers
Can I sell the car at the end of the term or do I have to turn it in?
Yes, you can. And as a matter of fact, you can trade in your leased car before the term expired. Depending on your negotiation skill and local supply/demand for your particular model, you may need to come up with cash, break even, or get cash back at the end. We sold our 08 LS460 with one year to go to a Lexus dealer and we walk away from the lease without paying any additional fee.
Is the down payment negotiable?
Yes, it is similar to buying a car. The more "down pyament" you pay upfront, the lower the monthly payment. But it is not advisable to do so in lease since there is a "free" gap insurance provided by Lexus for all leased car. Essentially if you total a leased Lexus with the gap insurance, you can hand them the insurance check and walk away from the lease.. Try that with a financed car... Paying more "down payment" upfront will diminish the value of the gap insurance.
Would the down payment be considered a loss?
Downpayment is just a part of the cost of leasing the car..
What portion am I paying taxes on?
this is a state depenent question. Better check with your local DMV or google it. In Kalifornia, we pay tax on the monthly payment. In Texas, I think one pay the entire value of the car whether one lease or buy a car.
What would be a good monthly payment on an RX? Only things I'm looking for is Nav
You have to go to a lease forum to find this kind of answer. It depend on your local supply/demand which affect you negotiated price of the car (and ultimately your monthly payment).
If this is your first lease, you would want to read a lot about the in and out of leasing.. There is a lot of way dealer can slip some additional profit into your lease if you are not familiar with lease. One additional benefit of leasing a Lexus vechicle is that they allow us to put multiple security deposit (up to 9) to reduce the money factor (each deposit reduce the money factor by 0.00008 or roughly equivalent to 0.192%.. 9 deposits wil reduce the money factor by 0.00072 or 1.72% from the interest rate). In Kalifornia since our sales tax is based on the payment, the multiple security deposit will also reduce the sales tax. The reduction in payment work out to about 12% saving on the security deposit. At the end of the lease (or in our case of the 08 when we terminate the lease earlier), we got back the seucrity deposit money. We did that on our 02 LS430, 02 SC430 and our 08 LS460 (infiniti has a better version and we have done the security deposit on 07 G35, 10 G37 and 11 M37).
Good luck.
Yes, you can. And as a matter of fact, you can trade in your leased car before the term expired. Depending on your negotiation skill and local supply/demand for your particular model, you may need to come up with cash, break even, or get cash back at the end. We sold our 08 LS460 with one year to go to a Lexus dealer and we walk away from the lease without paying any additional fee.
Is the down payment negotiable?
Yes, it is similar to buying a car. The more "down pyament" you pay upfront, the lower the monthly payment. But it is not advisable to do so in lease since there is a "free" gap insurance provided by Lexus for all leased car. Essentially if you total a leased Lexus with the gap insurance, you can hand them the insurance check and walk away from the lease.. Try that with a financed car... Paying more "down payment" upfront will diminish the value of the gap insurance.
Would the down payment be considered a loss?
Downpayment is just a part of the cost of leasing the car..
What portion am I paying taxes on?
this is a state depenent question. Better check with your local DMV or google it. In Kalifornia, we pay tax on the monthly payment. In Texas, I think one pay the entire value of the car whether one lease or buy a car.
What would be a good monthly payment on an RX? Only things I'm looking for is Nav
You have to go to a lease forum to find this kind of answer. It depend on your local supply/demand which affect you negotiated price of the car (and ultimately your monthly payment).
If this is your first lease, you would want to read a lot about the in and out of leasing.. There is a lot of way dealer can slip some additional profit into your lease if you are not familiar with lease. One additional benefit of leasing a Lexus vechicle is that they allow us to put multiple security deposit (up to 9) to reduce the money factor (each deposit reduce the money factor by 0.00008 or roughly equivalent to 0.192%.. 9 deposits wil reduce the money factor by 0.00072 or 1.72% from the interest rate). In Kalifornia since our sales tax is based on the payment, the multiple security deposit will also reduce the sales tax. The reduction in payment work out to about 12% saving on the security deposit. At the end of the lease (or in our case of the 08 when we terminate the lease earlier), we got back the seucrity deposit money. We did that on our 02 LS430, 02 SC430 and our 08 LS460 (infiniti has a better version and we have done the security deposit on 07 G35, 10 G37 and 11 M37).
Good luck.
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