Lexus Money Factor Markup?

Hello hackrs,

Working a deal on a Lexus IS 300 F Sport and can’t seem to get their numbers to line up in the calculator. My general question is; does Lexus allow the dealership to mark up the money factor? I’m about $20 higher per month on paper than I am on the calculator. I asked the salesman but he hasn’t gotten back to me yet.

Thanks,

yuppers 202020

Appreciate the response. About how high should I accept it marked up from .00065? Enough to really make $20 difference? Don’t want to get taken for a ride

Edit - at second glance, if they really did mark it up and I’m not missing anything, it moves the needle $33 a month on a 39mo lease…that can’t be right

Just show us the lease worksheet and a link to your calculation.

Calculator

Attached. What I’m trying to figure out is if they included my $1300 in trade equity in these calculations. The sheet from the dealer lists a $462 payment with TTL and first month (2500) due at signing. He told me the trade equity was included in those #s but according to this calculator it isn’t. So I’m trying to determine if that’s the difference or if the money factor is double what it should be

We need to see the lease worksheet too, but incentives are usually taxed.

Unfortunately I don’t have an actual worksheet with all the numbers. I know the residual is confirmed due to the number they gave me on a payment estimator sheet, and the msrp/sales price is confirmed as well. I’ll post what I have. Also, incentives aren’t taxed here. They reduce cap cost and tax is paid on final sale price.


Accessories are not residualized, so that might be messing up your calculation.

You are trading in a vehicle with $7500 equity?

Thanks for the response. Can you clarify what you mean on the accessories? I took MSRP - 4500 dealer discount + accessories to get sale price. Then 6500 lease cash entered as an incentive.

Sale price - trade allowance to get the sales tax total amount.

My car realistically is worth 5200 on trade. They are offering me 7500 which is the only reason I’m trading it in. I owe 6200 which leaves me the 1300 allowance that’s circled on my sheet - I think this is what’s causing so much confusion. I can’t imagine those numbers ‘include my equity’ as the dealer stated last night. Does that make sense?

I found out what they did. They made it seem like it was 4500 off sticker when in reality that was just total reduction including my 1300 trade equity. So really they only came off sticker 3200. End of the day no other dealer came close to this trade in number so 4500 off sticker is really the more ‘accurate’ number I suppose.

I’ve run into a similar situation.

I’m hoping someone can help on an issue I’ve run into. I’m looking to purchase a 2019 ES F Sport. I was told on the Edmond’s forum that the current MF and residual is .00075 and 56% respectively. However, I’m being told by the dealer that they best MF they are getting is .00175. I’m curious where the difference is coming from. It seems like the markup is excessive. Agree?

Here’s the details on the deal:
MSRP $51,914
Discount $4645
Rebate $1500
Final Cost $46,938 (includes fees and acquisition fee)
Residual value $29071

This is for 36/10. $0 down = $669/m payment, $3k down = $577/m payment

Here’s the link for my calculator. It says 7.2 years, but I don’t have a reference point to determine if that’s a good number or not.