Trying to understand lease and how to negotiate this deal - 2018 Lexus NX300

Ask the Hackrs
1

I have done research and reading and am trying to understand a few things when calculating a lease. If the guru’s can point out what I am missing I’d be greatful.

4 year lease/15k miles - 0 down is what I have asked for.

What the dealer sent me. If I understand correctly, the “Net Selling Price” listed below is the Cap Cost.

MSRP - $40,678
Selling Price - $36,200
Rebate - $750
Net Selling Price - $35,450
Document Fee - $80
Electronic Filing Fee - $29
County Fee - $11
Registration - $470
Smog - $20
Tire Fee - $8.75
Sales Tax - $3,449.35

Money Factor - .0007

Residual = 47% or $19119

Depreciation is: ((Capitalized Cost - Residual Value) / Number of Months) (35,450-19119)/48 = $340.23

Finance charge is: ((Capitalized Cost + Residual Value) * Money Factor (35,450+19119)*.0007= $38.20

Payment before tax = $378.43

Tax = .095*374.13 = $35.95

Total Payment + tax = 378.43 + 35.95 = $414.38

Dealer said $458.75/mo includes tax

What am I missing between what I calculated and what they calculated? Also, they sent over “Sales Tax” of $3449.35. I thought you only paid tax on the lease payments during your term, not on the overall cost of the vehicle?

Any help would be greatly appreciated!

2

So I think most of these concerns can be addressed by doing research here. One thing you may want to ask about is tax credits at the dealership. 4 years is a long time and Lexus maintenance will get expensive… Good Luck!

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3

Is a 4 year lease substantially worse than a 3 year lease? I’m looking for the same car but 4 year/15K miles and my numbers are in the mid 400’s.

4

Go with 2 or 3 yr lease.

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5

you’ll be driving the car outside the warranty period (4yrs/50k miles whichever comes first). At 15k/yr, you’re looking to drive 60k miles on that car. Some of the main lease benefits is to be able to frequently drive a new car and to always be under warranty. You’re basically agreeing to drive a car longer than you should and not have warranty for 10k miles, prob go through another set of tires etc etc etc.

Horrible idea for probably a marginally better monthly payment as most leases are built around a 36 mo sweet spot.

Also you have the option of doing refundable MSDs to lower your payment, do that to lower your monthly payment.

6

You are missing the acq fee. Dealer probably capped that fee. You need to compare the due at signing.

7

@LeaseLoso Thanks for the input, first time to leasing and I didn’t consider it being past warranty. I’ll look into doing 3year/15K

@305Hackr I didn’t consider it being past warranty. I’ll look into doing 3year/15K instead of 4year. It seems like residual tanks after 3 years as well from 56% to 47%

@mani_is_kool i’ll definitely look into a 3 year/15K lease instead.

1 Like
9

I would also look in to other brands as well. The RDX refresh is coming up so they might have great deals on the 2018’s left.

10

have them quote you 24 mo, 27 mo (if Lexus still does those) and 36 mo and then compare. If the payment between 24 and 36 is marginal then do the 24 mo because lexus allows a lease extension in case you want to keep it longer but that way you have an out at 24 mo should a better lease deal become avail.

11

Thank you for the tip. I’m struggling to understand why the numbers from the calculator are so far off from what the dealers are giving me. I’m seeing people mention 40K MSRP after all is said and done around 370-410/monthly.

12

98% of the time, it’s user error. Copy+paste a link to your calculation.

13
14

@Jon After reading the suggestions in this thread, here are the numbers provided for a 36month/15K lease.

They stated there is $2420.11 due at signing. The lease calculator shows $321 monthly including tax, but they are stating its $419. What am I calculating wrong? The only assumption I made was the license/registration fee, but I believe it is close to the true number. And I put 750 incentive as untaxed, I’m uncertain if that was the correct place.

15

You put 48 months instead of 36. That makes a huge difference.

16

@Jon Right, my initial post was for 48 months but the lease calculator link I just posted is for 36 and new terms. They are still saying its around 419 with 2420 due at signing. the lease calculator shows much less than that.

EDIT: sorry I see what you meant, my goodness you were spot on about user error. Here is the new link with the corrected 36 month.

17

I just would like a sanity check.

In short 2018 Lexus NX w/Comfort package
Terms: 3year/15K miles

MSRP: $40,347
Selling: $35,125
Rebate: $750
MF:.0006
Residual: 56%

$0 down and $0 drive off in a 9.5% tax area. Dealer is saying my monthly is $515. Since I am not paying anything up front, is this reasonable given the general information I have? New to leasing, feeling overwhelmed and not sure if I’m getting taken on a ride, or if this is reasonable. Just need some general input on if these numbers are even close. I haven’t gone into look at the detailed paperwork and numbers. Are they adding extra add-on’s assuming I will take them as well?

18

It’s is a crap deal. Thousands off.

19

Enter it into the calculator to see if it matches. $515 does sound pretty high for a $40k vehicle, but you are getting 15k/yr. You should put down 7 MSDs to lower the MF to .00004, which would reduce the monthly by ~$42.

1 Like
20

@conanohasselhof could it be a bunch of add ons that the dealer has already figured into the price of the car?

21

@Jon That’s why I’m confused, I’ve tried the calculator but my numbers aren’t matching up. Are they factoring in sales tax, reg, license, fees all into the calculation that I may not be? Would the 15K miles be making that type of impact on monthly?

Also since they are just verbalizing this to me over text, could they be sneaking in add-on’s that is driving my monthly up before I see the actual paperwork ?