I am looking to lease a new Lexus: and did my best to put the most recent offer in the calculator: calculator link
I’ve attached the 2 rounds of offers - it feels like a decent offer? I still need to ask about drive off costs - that was new to me
I’ve never leased a car before and this forum is beyond helpful! Especially during this crazy time I want to be able to get a good deal for my own financial needs but also know that it’s not likely I am going to get something crazy since they aren’t anywhere close to their volumes for the volume bonus - any strategies for next steps? I told the dealer I am not in a rush so I could wait until the end of the quarter but of course it’s a bit nicer for both of us to move forward
thanks for your help! I’m in MA - only want a 36 month lease; low milelage cause i haven’t had a car for 3 years but the times are changing and renting cars all the time seems less safe given all the social distancing concerns etc. Have $$ to put down but it seems like a waste - difference of $250 over 3 years is pretty small for fronting that $3k
Stop talking to dealers. All those emails you sent out? Delete them. Delete the email address from your address book.
Spend a long while reading through the leasing 101 articles on here. Take it all in, except the one that talks about the 1% rule. Forget you ever saw that one.
Once you have that down, pick a vehicle or two you’re interested in, gather the RV/MF/incentive information from Edmunds and research comparable deals on here to develop a target pre-incentive discount for each vehicle.
Take those numbers and determine what your target deal is for each vehicle.
Then, and only then, think about reaching out to dealers to find one that will do your target deal.
Talking to the dealer is for finding someone to do your deal. It is not for finding out what the car might cost. If you don’t already know exactly what the numbers should be before you reach out, you’ll get stuck with offers like this to choose from.
I don’t know much about Lexus, but I do know this from being on here, 12% is the discount to shoot for preincentive. Try to target units that have been in stock the longest, ie use cargurus to find days in stock
Selling price is awful. Like @joeblogs said, shoot for 10-15% pre incentives. Research both sites (leasehckr & Edmunds) to see what other folks are getting.
Verify RV, MF, and incentives via Edmunds. 50% RV cannot be right.
thank you! this is super helpful (I swear I did read through the leasing 101 articles on the site but I will read them again) - I didn’t actually send e-mails out I went to the dealership and test drove the car to see if I actually wanted it
so basically now that I know the car i want i can go back and find a dealer that will offer me something closer to this
thanks for the info on cargurus - the car that i am looking at has been available for 204 days so it should be easier to get them consider what i am looking for
I went to edmunds to get a better idea of residual value - it looks like used nx 300 that are low mileage and 3 years old are about 70% of the initial price - so I used 65% am I underestimating the dealer markup? My floor for this would be 60% RV
I adjusted the discount to be 15% which is the highest end but I figure it would give me a starting point for negotiation - I’d love more insight on how to better use edmunds - all the prices I found on edmunds are about the same as the MSRP I see on this offer so I applied the discount ranges mentioned in this post assuming 12% is my floor but my ask is 15%
The dealer told me the MF he is using is .0006 so I am sticking with that in the calc since my uneducated perspective seemed like that was a decent rate (1.44% annualized seems good right now - please let me know if I am misinterpreting that)
You need to find out what buy rate is. Your goal here is to find out if the dealer is marking this value up to pull extra profit out. They can do that as easily on a low rate as they can on a high.
Don’t just make up the residual value. The captive (bank Financing the lease) has specific residual value and money factors they will approve to finance a lease. You can get these numbers by posting on the Edmunds forums.
Retail for a pre-owned vehicle has no correlation to manufacturer’s residual value at time of leasing. They miss the mark by a mile sometimes…positive or negative. I leased a Lexus GS350 FSport in October 2015. The residual value was about 31k I believe after 3yr/36k miles. The trade in value on that vehicle was maybe 26k on a good day when I turned the car in at the end of the lease. A friend of mine works for Lexus and he said Lexus took a bath on 2015 GS’s at lease end due to Lexus missing the mark on residual.
am i right in understanding that the variables the dealer has the most control over are 1 - discount 2 - MF and 3 - RV? Incentives are set by the manufacturer and so the dealer has less control over these offer?
assuming the MF seems reasonable I should be aiming to lower those other 2 aspects based on what I got from my post in the edmunds forum (thanks for the guidance there! waiting on the info to update my calc)
The dealer has no control over RV. It is what the bank sets it to. The only way to change it is by changing the number of miles or the term of the lease. With that said, it’s ALWAYS a good idea to verify you’re using the same RV to make sure everyone is on the same page.
Dealer has limited control over MF. The bank sets what buy rate mf is and the dealer may choose to put an additional mark up on top of the value provided by the bank. Some banks limit how much this markup can be.
Pre-incentive discount is controlled by the dealer. It’s always important to differentiate pre- and post- incentive discounts.
Dealer has no control over RV…that is set by the lender. Dealer can mark up money factor for extra profit. If the dealer discount is really good on the car then marking up the money factor isn’t as bad since they gave you good sales price. They gotta make a little money somewhere…lol. The dealer has total control over the discount but not manufacturer incentives you qualify for. So you want to make sure you understand how much of the sales price is dealer discount and how much is manufacturer rebate/lease cash…etc.
thanks again for all this help and insight! edmunds told me .00060 and 56%
$3000 lease cash
this lines up with the offer I got - my next step is to negotiate on the discount since everything from edmunds agrees with the current offer i have
this cars been on their lot for a while and i dont think they are turning cars over all that fast anyways but i can wait until the end of the quarter if i need to in order to get a double digit discount
what am i missing in getting this into the calculator right? the dealer confirmed they are using the MF and RV from edmunds - when I put all the details into the calculator here i don’t get the same monthly payments - what am I missing? most recent offer attached
still seems like a not that great of a deal - I think the discount should be at least $5500 - he sent me the invoice to prove otherwise but he already offered something below invoice so i am not sure i believe it!
LEASE OFFER:
i looked up in Massachusetts and i believe we are a state that doesn’t tax incentives - also the quote i attached includes the scenarios of 0 down payment to 3000 down payment - I can’t get the calculator to line up with any of them
i even tried moving it to a taxed incentive and im still getting a lower monthly payment than this offer across the board
