Hello! I am trying to buy my first car Lexus NX450h+ in Michigan. Since I am new to leasing, so I just wanted to stop in and check my lease deal from one of the broker here.
I am considering the lease one pay option to get the 9500 lease cash from Lexus and hoping to borrow as little money as possible. I also plan to purchase the vehicle after the lease.
Price details:
Quoted MSRP: 66000 with 10% off
Quoted selling price: 59400
Total incentives:
10000 = (9000 Lexus lease cash) + (1000 student). I think it should be 9500 but keeping 9000 for now.
Due on Delivery:
12691 = (total one payment 10443) + (acquisition fee, which is bank fee I think, 795) + (registration fee 500) + (documentation fee 899) + (tax on fees 54)
Months: 24
Miles: 12000 (I typically drive 7000 per year so I could pay less at the beginning though by reducing miles)
Money Factor: 0.00125 (APR: 2.9884) not sure if this is accurate, seems low to me.
Residual Value:
42900 (65%)
Cap. Cost:
49966
Broker Service fee:
600
Based on this, I think I will end up paying $12691 when signing the lease and paying $42900 + 6% tax after 24 months when the lease ends? This means I will approximately spend $12691 + 42900 * 1.06 = 58165 OTD to purchase this vehicle with a 2 year (I think equivalently it means borrow 42900 for 2 years by paying about 5k interest)
Since I am new to leasing a vehicle so I would to ask if all these numbers make sense here? I hope I didn’t miss or misunderstand anything here.
Let me know of any other details you may need! Many thanks in advance!
Thank you for the edits! I think the incentives are lease-only according to the Lexus usa website, but I will double check with the broker.
The broker gave me 2 options of the lease. The first one is a monthly payment option (which I less preferred) and the other is lease one-pay option listed above.
I am not sure how the option “do a monthly lease and buy it out right away” works. But if it is available, I would be happy to take it. Is this something I need to discuss with the broker?
On an immediate buyout, you simply buy the car for the required payoff amount as soon as your lease account is opened up. This amount won’t include unearned rent charges (finance costs that haven’t accrued).
You can do a car loan with the finance company of your choosing (bank, CU) if you don’t want to pay cash.
Someone else here may reflexively know what’s more favorable on this make/model, but for many vehicles its more financially advantageous to do an immediate buy-out than wait until the end of the term, if your original intention is to own the car beyond the term of the lease.
Thank you very much! I just checked with the broker and he said the incentive is lease only and I would be able to buy out the vehicle after 3 payments are made. If this is the case, I am considering buy it out as soon as possible with a auto loan hopefully reasonable APR.
Do you think this deal/fees make sense overall? Is here anything wrong or anything I should pay attention to before signing a lease?
This is usually not the case. For many brands if the lease doesn’t remain open for three cycles, the dealer (and often the F&I person who did your paperwork) can lose their commission from the finance company, which isn’t your problem.
(I’ve kept a low-APR BMWFS auto loan, which I took just to get an additional incentive, open for three cycles as a courtesy to the dealer/F&I person because they provided great service.)
I don’t know anything about the prevailing discounts on this model, so I can’t comment on the deal itself. Have you looked at Marketplace and Signed Deals & Tips for comps?
