So at first I was thinking about targeting a luxury entry level crossover/suv but I really don’t need that much space. Now my eyes are set on a 2016 Lexus ES350 with the UL package. Just stepped in the ring contacting dealers, any idea what sales price I should be shooting for? Looking for a 36/12. Residuals? MF? Thanks.
So i’m following this guide so far. http://www.realcartips.com/guide/checklist.shtml I have a “range” i’m looking for but i don’t really have any numbers to go by. Still looking for residuals and mf for this car.
Okay so I got numbers from one dealer.
"We propose as follows below…
2016 Lexus Es350 Ultra Package
MSRP is 49603.00 invoice is 46954
dealer cash insentive is 4500
I will sell you stock number G562 for 41453 plus tax and fees this vehicle is matador red with a black interior. This is our last 2016 in ultra package…"
Which part should i attack first?
You would probably be better off waiting to see the December programs to see if they improve. I’d also look at the 2017 model, the residual should be much better. Are you sure the $4500 manufacturer to dealer incentive can be applied to a 2016 lease or does it apply to only a purchase? I think the 2017 has $1500 incentive now so that plus the better residual might make it a better lease than 2016. I see the current advertisement is $479 per month with zero down on a 2017 $40k MSRP plus Lexus pays your first month. It used to be around $430 with zero down few months ago. The 2017 is also better if you would ever consider buying the car at the end of the lease. At these numbers you could also probably get more bang for your buck from BMW or Mercedes, or even top of the line Toyota Avalon which is almost same car.
These are the numbers if I wanted to finance. I learned from the boards to approach them as if i’m financing a car to lower the MSRP and then ask for the lease options. Which models of BMW or Benz are you referring to? I’m a newbie so i’m just learning as I go. Thanks for responding.
There have been some pretty good deals on here for Mercedes C300 and some 2016 demo E350’s and then BMW 320 and 328 as well although BMW numbers this month aren’t as good. Hopefully they improve in December. Which Lexus dealer did you get your quote from? Paul Caputo at Bredeman Lexus is a nice guy, straight shooter.
McGrath Lexus of Chicago. I like all the series you mentioned, C300 was my first choice but I assumed it would be more expensive. I think i’m going to go that route now. I spoke to someone from Bredeman, I believe her name was Angela. So are you saying I should give up on the ES350?
No if the ES 350 is what you want then don’t give up. It’s a nice car and a different ride than the German cars. You have to be happy with what you are driving especially at this luxury price point. I’m just saying to explore all your options and maybe get more bang for your buck.
Gotcha, So should i try to get the MSRP down?
Yeah definitely it’s their first offer so they likely have more room to move and contact other dealers. If you were actually buying the car, it would be a year old the minute you drove off the lot. But if and when you tell them you now want to lease it you are going to have to make sure the MF isn’t jacked up. I’m sure the first lease offer will be Goan extent to allow for negotiation. You can get the MF and residuals for 2016 ES 350 from Edmunds site or ask Michael on this site.
I was told on Edmunds
.00190 MF and 56% residual for 36/12k
$4500 dealer cash
Yeah that’s a very high MF and why a 2017 may lease out cheaper, even without as much lease cash available. The base MF on a 2017 is only .00100 I believe with a higher residual value as well. Not great but better and you should be able to do MSDs to bring the MF down on either model year.
So normally you would subtract the dealer incentive from the quote, but since the lease incentive is the same you can just leave it in there.
Just take the quoted 41453 selling price, and plug it into the calculator with the info you got from edmunds and it will tell you the cost to lease. It looks like $532 + tax + drive-offs. You’ll have to decide if you like that price, if you want to do MSDs to lower it, or if you think you can get the dealer to go even lower on the sale price. Or you may decide to get another quote or look at different cars.
So the $4500 dealer cash, is that something I can ask for? Or is that the most they can take from
the MSRP?
It’s an incentive from Lexus Financial and it is automatically applied.
The dealer can and should discount even further after 4500 dealer cash is applied. Might want to also check out the Infiniti Q50 as well, some very good deals on here.
They did discount it further.
Sorry I meant even further than they already have.
thanks for the tips, guys.
Update: I decided to go for a 2017, just cheaper but I can’t get the MSRP to get any lower than 41,000. Is this fair for a 2017 es350?
Would need to know what options, the listed MSRP and actual selling price being offered to you to better assess. Is this for a lease or purchase?