Just wanted to share a recent Lexus lease. Please share your feedback so I can improve my future leasing purchases.
2023 Lexus ES350 F Sport Handling
MSRP: $51,020
Discount: 6.3%
Incentive: $1000 Lease Cash
Base MF: 0.00162 ( as per Edmunds )
Term: 36 months / 7500 Miles
Payment: $651 /month
DAS: $651 + 9 x MSDs
Dealer waived off the dealer fee as well as tag filing/gov tag fees. In other words, they just didn’t collect from me even though those fees are listed on DAS. I didn’t list those fees on the calculator. Dealer used a markup MF, but I used a base MF to calculate the true discount. Otherwise, on paper deal may look like that I got a bigger discount which wont be true if we compared the same deal with the base MF.
Congrats! Lets see those glamour shots. Please be blue, please be blue.
Side note - these cars are really that cheap? (MSRP just over $50k?) Not saying that $50k is a drop in the bucket, but that struck me as kind of odd for a Lexus.
I assume you checked offers by brokers before you did this. Not sure what the deals are like for ES.
I general, spending $23661 for 3 years on a 51K car is not the best use of money, especially for 7500 miles allowance. Financing would have been better value IMO, even with current interest rates since Lexii hold value better. And unless you are set on ES or Lexus, may be you could have had better deal with comparable vehicles from other brands.
Not terrible by any means, just my feedback in case it helps in future.
Thank you @pnimith - I really do appreciate your feedback.
Yes, I checked all the offers from brokers on LH. Since there was a $1000 lease incentive so that took care of the $795 acquisition fee and future $350 disposition fee. #2 - Dealers are willing to offer more discount whenever I make the offer for the lease. #3 - MF was real cheap ( under 4% ) plus I did stake the MSD so that made the MF around 2% APR. Lease APR is cheaper than traditional car financing for this particular ES lease deal. #4 - I dont intend to keep this lease for the entire term so I will be trading it way early and upgrading to a new car. #5 - With leasing, I only pay the sales tax for the leasing bill, so I dont have to pay the sales tax for the entire 50k purchase at 6% rate.
I’m not really sure why you’re taking market risk for a short term (the most volatile). How early is “way early” and what’s the next car that I presume was not available yesterday?
Generally speaking, people do make the future predictions based on the past experience they have. That is the same case with me. So far, this risk has been manageable, and I have factored the potential risk if my assumptions go wrong. Anyway, I am riding on this ship as long as it makes sense, if the market really goes off the chart, then I have rights to buy out my lease anytime. I am not buying anything that I wouldn’t like to own it. In the last 2 years, I have not kept any car for more than a year. Next upgrade would be either Toyota or Lexus or Honda. I dont even touch other brands like BMW/Mercedes/etc, as I just dont understand other brands very well. I only fool with these couple of brands where I do have alot of data, and little bit experience.
Your 2021 RX350L may have equity as well. So if you factor your positive equity and higher new payment, it will probably run the same numbers as before. Of course, interest rate is higher than before, so that is indeed making borrowing more expensive.
There is no way I can match the same deal as in 2021… The RX350L was 60K and I pay 522 a month. interest is .003% (I pay 300 bucks in interest for 3-year lease) and dealer gave me a fat discount. zero due at signing.
I agree that price won’t be the same. Unfortunately, due to inflation - everything has gone up! Businesses are forced to pass these costs on the consumers.
But that equity can be monetized… a Lexus RX might be the easiest car in the USA to monetize.
So that cash is still coming out of @jbatzmaru ’s pocket. Skipping the step of liquidation doesn’t change that fact. It’s like handing over a bunch of paper bonds … cash-equivalent should be considered the same as cash.
awesome deal @gopal - well done!! I am looking for the same car, may be less spec - any guidance or contact details you can PM would be greatly appreciated! Thanks!
