I want to know if this is a good lease offer, I feel like it isn’t and there are still opportunities to lower the OTD cost of the vehicle. When we I ask for that, the dealer keeps giving the top image. When I use these numbers on the lease calculator the monthly payment technically comes out to more than what he is telling me. $946.26, but when I ask if that price includes monthly taxes he just says repeats that. This is 10k/48 mo.
We’ve negotiated mainly through text, I actually got them to agree to $46k for my trade-in instead of the $43k I was estimated at through KBB. $0 down, $436 due at signings
My biggest issue is them not willing to move off the 0.003 money factor. I think that could be lower and technically I can have it capped after I do the contract, I was just hoping to get a better deal than what my state’s law allows for AD military.
Any advice on other areas I could potentially save? Or am I being greedy? I want to get the overall price lower so that I can take the higher mileage option for essentially the same price I’m currently being offered.
Constructively, in order to effectively negotiate anything you need to have a defined objective before you start.
How much is the trade actually worth (as shown by actual offers for it)? They were offering you under your payoff, now just over.
Until you know exactly how much to pay for the lease itself, and exactly what the car is worth, and without a defined objective for the ultimate outcome, I would take a big step backward and reassess the approach.
My impression is this isn’t a vehicle that’s heavily discounted, but don’t go with impressions or feelings, check Marketplace and Signed Deals, Lexus forums, etc., for actual facts.
No it’s not a good deal. Also did you verify that’s the base money factor? If it is the dealer can’t go lower. That’s like trying to negotiate the residual value. It’s set by the bank. The only way you could lower it is with MSD.
What is your target deal? Have you compared with broker offers?
I don’t know the TX market but paying almost $48,000 to drive a $63,000 Lexus for 4 years does not sound like a good deal. Should buy and almost certainly it will be less per month to sell in four years.
My guess is it would be worth in the $30s, not $15,000.
I was offered $43k at a different dealership and asked for them to meet my payoff amount. I was aware that I had excess miles on my car (30k in the last 2 years somehow).
Yes, I looked at what the TX was leading for in my area and the average was around $62k. My biggest issue was they were dancing around the base money factor which. In my area, the average was around 0.00224 and they were telling me 0.003 was the lowest they could go, even after saying 0.00385 and 0.00345 were the lowest possible. All that after saying MF is nonnegotiable.
True. I couldn’t find any other deals in my area in this website, however I saw one in the Midwest where their sell price was at $59k, which lets me know that I was not getting any real discounts.
I tried to mention what the average OTD prices were after taxes, the average MF for some one with tier I credit (they were trying to say their was the best for tier I but that’s hard to believe considering it would be around 7-9% interest based on the ones they gave me).
Realistically, I’m new to this and tried to do research, never had a lot of people around who were good buying cars. Any advice helps and I appreciate yours.
I got the same impression, they insisted it was the best they could offer. There are 3 Lexus dealers in the San Antonio-Austin area and 2 are linked to each other. One of them never really reached out to me so I couldn’t take the competitor angle.
“Out the door” pricing isn’t a helpful concept when leasing cars. It’s esp for someone in TX, where your tax situation on a lease is very diff than most states.
I don’t think it’s uncommon for Lexuses have an MF that’s equivalent to a 7% interest rate.
Is there a reason you wish lease, rather than finance, this model? Lexuses generally don’t lease well (in part b/c of things like a high MF).
If you are determined to lease this, then knowing your target pre-incentive/pre-rebate discount off MSRP, the pertinent incentive/rebates, and the buy rate MF will help you to use the calculator to establish a target deal (as other posters have suggested).
I would also suggest first creating your target deal w/o the trade.
TX350 AWD Premium, base MF 0.0028 (Dealer cannot go lower than this) and RV is 55% (Dealer cannot modify this number). 10k/48m lease. This info is from RateFindr
There is also a $1k Military Rebate (per Ratefinder)
Based on the deal sheet I’m seeing no dealer discount or no military rebate. Am I correct on this?
The discount was $2k based on the window sticker. They also included tax credits.
They weren’t trying to come down any more on the price or budge in the MF (I knew it was around 0.0028), I decided to not waste my time further. Thank you for the advice.
I see, sorry I didn’t look at the MSRP on the window sticker. It’s odd how they phrase their deal sheet “base price.” Probably confusing on purpose, or maybe I’m just dumb.
Bottom line though, if you really like Lexus and want another that’s fine. They just haven’t leased well in a while. If you want this vehicle, it may be best to purchase it. Are there any low APRs on them right now?
With today being the end of them month and end of the quarter it may be a good time to pull the trigger on something.
