Recent deal on 2019 Lexus RX 350 F Sport -- Opinions?

MSRP: $61,980
Negotiated Price: $54,500


Lexus Rebates: $2000 + $750 Recent College Grad = $2,750 additional discounts
Cash Down: $8,000 (by choice)

Brings down to: $51,750

Money factor (based off of LFS Tier1 Credit Approval): 0.00170 ~ 4.08% APR

Residual: 54% (set by Lexus)

45 Mo Term, 7.5k Miles/Year

State: CA
Tax, license, first payment + registration paid separately = ~1.7k

Monthly payments (including tax): ~480

Thanks! First time posting so not sure if I did this correctly.

This is a terrible deal. First off, never put $8k down on a lease, but if you are, your payments should be closer to $250/mo. Never do a 45 month term. Surprised TFS even offers such a term.


Even if it’s going to be purchased after? What makes it horrible? I also forgot to include in the title that the residual is set at 54%.

Down payment, length of lease and lack of use of MSDs make this a terrible deal.

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How would you restructure the deal?

As a common question, if your vehicle was totaled before you buy it out, you would lose all or at least majority of your downpayment. But first of all, your numbers doesn’t match on calculator. If you put 8000 down, with such discount and rebate, your payment should be much much lower than 480/mo.

$0 down payment, 36 months and max 9 MSDs. If you are going to buy it out, why not just finance it to begin with? You wouldn’t have to pay the acq fee and can get a lower APR?

One thing that I’m a little confused about is: if $8,000 lowers your monthly payment by $XXX amount, why is that any different than not paying that initially and having a higher payment vs. paying that amount over time as the result of higher monthly payments?

Based off of this, what would be the accurate monthly payments?

@songshan311 answered that question. There are risks involved with the down payment.

That’s the only reason, the risks? What if you have replacement cost coverage on your insurance?

So your point is that this would be a good deal if I:

  1. Put less down
  2. Shorter term
  3. Used MSDs

This would result in a substantially higher monthly payment, no? So the general sense of a good deal is to pay more, but carry less risk? i.e., car being totaled?

LFS includes free GAP, so I see no point in getting replacement coverage.

Leases have a sweet spot and it’s usually 36 months. Did you run the deal at 36 month vs 45 months?

I think the dealer marked up your MF by a lot, unless 45 month terms have a much higher MF. Below is how I would have structured the deal.

Dude you need to read up on leasing. When the moment of enlightenment arrives, Nirvana


Check out the market place. There is a deal on basically the same car for the same payment without 8k down.

You want

NEW 2019 Lexus RX350 F SPORT AWD $489/month +tax and inception! 10k/36 months [several colors available]

Assuming residual and incentives are the same in CA as they are in the Northeast, your terms were grotesquely, artificially inflated. Not a dealer is want to work with.

But, you have to arm yourself with knowledge before you walk through the door about the process before soliciting a quote. Salesperson smelled fresh meat. Hard to blame him/her.

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Unfortunately they are not. Residual is set to 50-52% here; and not the 59% seen in the tri-state area I guess. Money factor is different as well. And, these aren’t negotiable. Out of curiosity, how does a dealer artificially inflate things?

Minus putting money down, not sure how else I can negotiate a better deal? Seems as if that RX deal is still going to be in the mid 500’s after tax a month? Pretty on par with mine if I didn’t put anything down, or?

Anything in particular you think I’m not getting?