While it’s true you can do better than 1% of negotiated sales price, that assumes you are willing to drive just about anything. In my case I picked the car (a midsize plug-in hybrid with a very low residual value) and there were virtually no alternatives, so it was necessary to get the best deal possible on a target car. In that case, 1% is a useful rule of thumb, it works out to be almost a 10-year payback period; about a score of 10 on leasehackr calculator.
Is it 1% of sale price after incentives? So
Msrp 10
Sale price 9
Rebate 1
Sale of 8. So 1% of 8 is the rule of thumb or 9?
The 1% rule should apply to the price of $8. However, things are a little different with EVs and plug-in hybrids. These cars get a government subsidy of $4000-$7500 that does not mean the sales price went down! You still have to pay sales taxes on the part of the car that was subsidized! So even though the Sales price might be 8 - 0.75(gov subsidy), it is not 7.25, it could be e.g. 7.25 + (9% sales tax on $0.75 which is 0.0675) = $7.3175.
Was This a F? Where in so cal? Thanks!
It was in Torrance, just south of LA.
Don’t sweat it. It’s literally a rule made up on the internetz and there isn’t even any consensus on what the rule is.
Reading this forum will give you a much better understanding of leasing than any stupid rule.
Thanks guys. It seems I should be shooting for 10k off with 3100 lease incentive on a 17
Do the 17s have any lease support?
3100 or seems…
Agree with max, don’t worry about 1%, that is just a benchmark used to gauge all deals. I would suggest you not bother going into dealerships, just call both after researching models they have and ask for quotes. If you are looking to make a deal sooner, say you’re willing to come over and close if the numbers work so they get more aggressive.
Check on Edmunds forums to see what the MF and residuals are.
Ended up 10,700 off msrp.
Msrp 57459
Sale 46759
MF .00051
Payment 550
Downpayment 550
Brand new 17 f sport
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Great discount! Congrats! Did you negotiate the MSRP down to 50k then applied the 3100 incentive to get that price?
We leased a 2018 RX 350. We paid $482/mo plus tax ($514 incl tax) and zero costs due at signing except the first month payment. I posted the details here: 2018 Lexus RX 350 and a 2018 Lexus RX-L
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The 1% rule is good for rejecting bad deals quickly. Once you filter out the bad deals you can put them through the calculator.
It really isn’t. Honestly tells you nothing about the deal you are getting for that car. It may help tell you if a car leases well or not though. Eg. If you were looking at a Porsche Macan vs Lexus NX300
Mine was on a msrp of 57459 and I did 12k/36
If you haven’t owned a Lexus RX3nn, take it from somebody who has : Buy a Highlander. The Rx300/350/400/whatever is missing about 8 cu ft. of cargo space in the back to make it look “cool”. This 8 cu ft makes ALL THE DIFFERENCE when it comes to packing for a car-camping trip. When my kids were younger they rode to campouts with coolers under their legs. Now that they are teenagers, campouts in the Rx300 are impossible. On the other hand, a campout in the Highlander (1st generation) would be a joy, they have SO MUCH MORE SPACE in the cargo area, compared to the Lexus.
Also, we recently experienced a sensor problem and the ONLY mechanic that could fix it was the Lexus mechanic. We went through $2000 of cash and 6 shops trying to fix the engine problem. Finally we paid a lexus dealer $800 to repair it, they installed a $50 sensor.
Toyota dealers have significantly lower prices on repairs for the highlander. The best Toyota dealer in the region told us that the computers are programmed differently and I had to take our Rx300 to the Lexus dealer 20 miles away …
So, lease a Highlander if you can. For $10k less you get way more cargo space and a tiny bit less sound insulation and otherwise, the same car.
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Thats why I have a truck and thats why her car stays in warranty.
hi - no bank/dmv fees?