I am in Southern California (tax rate 8.75%) and I am interested in leasing the LexusRZ450e Premium. Lexus currently has $15,000 (taxable?) lease cash discount. I already tested drive and like the car (MSRP $62,500-ish) very much, so I already decided to buy it either at the end of the lease or within a couple months (refinancing with my credit union 5.85%).
This is my first time buy/lease a car from dealer. I have tried to watch YouTube and Google but the lease concept/calculation is still very intimidating since I am not accounting/engineer major. I visited two dealers.
Dealer 1: Recommended put 0 down; offered $5K below MSRP, suggested 10K miles 36 months lease with MF 0.00324
Dealer 2: Recommended put $5K down; offered $7K below MSRP, suggested 7.5K miles 27 months lease with MF 0.00424
The residual is within $500 between the two offers.
Since I already decided to own the car, from the total cost perspective, should I refinance and do the buyout ASAP or just wait until the lease end? Also, which option (dealer 1 or 2) offer should I pursue?
Please advise. Thank in advance!
P.S. I did try the LEASEHACKR CALCULATOR but gave up
isnt @Jeff_BeachCitiesAuto doing 6k off? + buyrate
just buy it as soon as it funds so you do not each the rent charge
Just make sure that they are taking $5k or $7k off msrp before $15k in incentives. If you absolutely have to have it, definitely buy it out as soon as you get your account number
If your goal is to buy it out, do NOT wait until the end of the lease. Do it within 1 week. If you wait until the end of lease to buy, the car becomes a lot more expensive. For me, I leased the car to get 15k rebate, within 1 week, I opened the Lexus online account to get a buyout price. Go to your bank/credit union and request a refinance. The bank will pay Lexus the buyout price and the car becomes a financed car… no longer a lease. This is the way to do it
If you follow how I described above, it doesn’t matter what the money factor is. Go with the dealer that gives you the most discount.
Let me give you an example. The numbers are incorrect but just for you to get an idea. If lease payment is $597/month. You pay $21,492 over 36 months + you pay the residual(~$34,000) at the end. In total you pay $55,492. Also, you need to pay DMV sales tax on the $34,000 residual which is an additional $2,975 bringing total to over 58k. Not to mention, after 36 months, you’ll need to get another loan to pay the 34k residual if you don’t have cash to pay in full.
If you buyout in 1 week; dealer gives you 7k discount + 15k lease rebate then MSRP 62,500 - 7k - 15k = $40,500. With tax and 5.85% interest on a 60 months loan, you pay around 49k.
10k difference almost.