How to deal with this situation? Lexus MF Markup

Yeah, IMO right now you have to be ready with your Plan B in South Florida (purchase) especially given current limited inventory and upcoming Toyota production cuts. You can’t force a lease, but seems your numbers should be close - so it has to be MF/rent charge double SE Toyota Finanical’s set rate.

The above applies assuming you are focused on the RX350 and trying to get a deal done.

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@xenhacker , @mllcb42 , @Jon

Got the detailed lease sheet from dealer B. These figures are after MSD.

Could you please guys look and give your input?

Thank you!

Quick note: dealer A’s OTD is $45,749 ( cash purchase ) and dealer B’s OTD is $46,060. Only $300 difference. So I got the lease worksheet from dealer B. Still waiting for the detailed sheet from A.

You are only making things harder by mixing and matching offers. Post the detailed lease worksheet with all info (not like the above that’s cutoff and doesn’t list rebates, doc fees, DMV fees, due at signing amount, etc) for the lease offer you originally posted.

sales rep sent me like that - I didnt cut off the screenshot at all.

True, you need the lease deal sheet for your original deal to compare numbers in your beginning post.

For this deal sheet they appear to be marking up your MF from .0061 to something much higher. With 9 MSD"s you are still paying $50+ a month in rent (would be zero at MF = .0061).

We can’t match your quoted discount and cap costs as this is a different deal and the sheet is cut off… But looks like your “MSRP” discount is no where near the other deal.

Minor but this shows 7.5% monthly sales tax (you said should be 6.5%)

Double your MF, reduce your discount by $1500 and adjust sales tax % and this Deal #2 seems to check out near ~$632 per month, getting close to matching the worksheet

dealer B who sent the sheet like that,

here is the breakdown:
MSRP: $46,720
Dealer Discount: $3282
Rebate: $1500

Sell Price: $41,938
Tag Fee: $425
Tag Filing fee: $149
Dealer Fee: $799

@xenhacker - just got the response from A. He said that he will send it to me tomorrow.

this dealer is from other county where sales tax might be higher. Where I live, sales tax is 6.5% so he may be using a different zip to calculate the sales tax.

Looks like Dealer B is using the $1500 rebate (maybe more) as a lease down payment and jacking up your MF by 2x. You definitely aren’t getting ~5K off MSRP with the info and sheet provided by Dealer B. And you definitely aren’t getting a zero rent charge (Std .0061 MF + 9 MSD’s would give you free money) with a $51 a month rent charge.

At least that’s my sleuthing based on what you’ve provided

Exactly! that is the thing. How do we overcome this situation? Use LH calculator and give them actual number? Any input?

I asked this dealer B ( an hour ago ) about MSD, and he said that it is .00081 before MSD, which is equal to 1.94% APR. He is taking 10 MSDs, there should be no rent at this point.

Thank you!

You could say “I will do X per month with Y das” based on your target deal or you could make an offer specifying every last detail.

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Sounds good - will do that! Thank you!

@gopal keep in mind that Lexus programs are regional so what you find on Edmonds could be for a different region.

Yes, I checked the MF and lease offer on Edmonds for Florida only. Thank you!

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you should ALWAYS have everything worked out clearly BEFORE you go to the finance office… including saying the following “And please tell your finance person I won’t be purchasing any extra addons. No nitrogen in the tires, no window protection, nothing that wasn’t agree to out here first. We can save them a lot of time saying that now.”

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Don’t forget the power of “No.” It’s a complete sentence
.

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Any update from the original dealer lease worksheet?

No update from the dealer A for the lease worksheet. I also realized that two colors that he mentioned yesterday about incoming RX, those are 2022 models. This sales rep seems newbie, and doesn’t know enough. Yesterday he was very confident to say that he will do the same price for upcoming VIN. I am doubtful if they will consider to match the same deal as 2021 for 2022 VINs.

Anyway, in this mean time, I tried dealer C for lease deal then cash. Dealer C lease offer was $671 and I did count offer as per LH calculator, but he declined. Seems like most dealers do have mark up MF lease, so their numbers dont look straight. But as soon as I ask for cash deals, their price is good. Dealer C gave me the OTD $45,519 - only thing is that I dont like the exterior color for that RX. I tried to call dealer D who had the right color/combo with the same MSRP but dealer D wont match the same price. Dealer D offered $47,000, which I declined it at 47k OTD. Not many 2021 RX350 base trims are available in FL right now, so I guess I might have to wait for 2022 models and see how it goes in next couple of months. Anyway, it would be interesting to see if dealer A really gives the same price for 2022 as he said so yesterday, but it was said verbally. I guess verbal communication has no value.

In FL, I have contacted several dealers for lease, seems like that most do mark up MF. It seems so simple but difficult to get this point across to their head. So far I have found that JM Lexus is the one who doesnt markup MF but the problem is that they are no haggle dealership, no price match, etc.

Will keep you posted if I get any next update.

Actually it isn’t - they know they have a marked up MF. They just refuse to acknowledge it in any manner. Fully marked up MF’s are part of the business practices for some (like AutoNation stores). Either try other levers (i.e. more discount) or move to a different dealer.

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