Lower RV/MF on Lexus Loaner or Demo Lease?

Hi Guys,

I contacted a salesman with a 2017 Certified Lexus with less than 1000 miles on it and he told me in a sentence that certified lexus will not be lease the same as new one minus the (miles*factor). He said the residuals are much lower, 50% compared to 57% new, and the MF is 3 times or more compared to new one.

Is this accurate ? It just doesn’t make common sense to slash the residual by 7% for just above 500 miles on a vehicle.
I’m in the process of finding an advertised lease or demo Lexus offer so that i can reverse calculate from the payments.

Yes this is accurate. Lexus new RVs are only applicable to inception miles less than 500. As soon as a car hits 500 miles in order to lease it they have to run it through the CPO program. The dealer has to pay for certification fees which are passed onto the consumer.

The CPO RVs are all set in dollars, not percents are are really modeled to be accurate on 2-4 year old models with normal off-lease miles/year. The lightly used demo is a very low volume pool of vehicles for Lexus so they don’t have a program customized to lease those vehicles with subvened MFs.

Your best bet is to purchase a demo Lexus after trying to get a steep discount on the MSRP.

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Thanks @Rvguy, how steep are we talking. 15% or even more ? Also, isn’t it generally not advisable to purchase a demo vehicle because of 50 drivers putting pedal to the metal.

I am not familiar with what a normal discount would be on a Lexus demo. You could see what % discounts BMW is offering and then add back some because Lexus tends to price closer to transaction prices than the Germans.

You are taking a slight risk by buying a demo with an unknown usage record but Lexus models (and Toyota models) are designed from the ground up to last a long time. The only vehicle I might be leery of would be one from the press fleet but those are going to be much higher miles and most likely not end up in a demo pool.

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Thanks @RVguy, Great advice.