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Prices Paid: Buying & Leasing Experiences Lexus IS 250 / IS 350 Lease Questions
1166 messages, Last post on Dec 06, 2009 at 10:52 PM
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Is this a good deal - MSRP $34,390 includes delivery, processing & handling 10,000 per year miles residual $15,132 389/mo./48 mos. $1,089 down |
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I am trying to work out the deal still, but here is what I was offered. MSRP : $36006 Selling Price $33,345.00 Residual $18,697.00 Depreciation $14,648.00 Acquisition $700.00 Taxes+Tags $423.00 1st Month $381.00 Cap Reduction $2,500.00 Cap Cost $13,652.00 Term 36 Lease $379.22 I am missing MF calculation, but I figured for an approximate .01%, this seems correct, since the dealer quoted me $381.40. What bothers me is that this deal eats up 4000 bucks at inception and is a base model deal with 10k/year. Sounds like a typical deal thrown out - exactly the $349/mo advertised with 3500 down. I told the dealer that I will close at 32k selling price or will need top of the line options for 33,5 price. So far, no answer from them. I feel that I will be contacted in a couple days when the dealer gets close to the end of the month. Any thoughts?
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Replying to: leshxa (Aug 14, 2009 7:24 pm) |
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Why is cap reduction a horrible idea? If I understand it right, in lease you essentially finance the depreciation value. So if cap reduction is almost like a down payment, it reduces the monthly payment for the lease. Perhaps I just don't understand why. Could you please explain?
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Replying to: leshxa (Aug 14, 2009 7:24 pm) Second, the deal you were offered is not good at all. I got my car MSRP $37,656 sold to me for $32,448. You're over $1,500 less than my car MSRP and at over $1,000 more selling price, that's crazy. I would shoot for $31,500 for that car, if not less. Third, NEVER put down a cap cost reduction. NEVER. If you total your car, you lose that money unless you have GAP coverage. And really, what's the point anyway? You're paying the same amount over the life of your lease (aside from a tiny bit of interest) so why pay it now? You could better use that money to put down MSD (multiple security deposits) and pay down your MF. Paying down your MF with maximum MSD (usually the standard maximum is 8, but sometimes you can do more than that.. my dealer let me do 9 and I probably could have done more if I wanted) you could get a 10 to 15% return on investment of that money because you get it back after your lease and you minimize the interest you'll be paying significantly. I think on my lease at .144% I'm only paying like $125 total in interest over 3 years. Look back in this forum and the prices paid forum and you can see the deal I got. You'd be paying significantly more than me on much less of a car. Plus I got my car 4 1/2 months ago. You should be able to get just as good of a deal or better since the 2010's are coming out soon.
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Are you the same greeneyes from the kawasaki forums? lol. Thanks, man you're everywhere 
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Replying to: greeneyespsu (Aug 15, 2009 1:15 am)
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| MSD are multiple security deposits. Each security deposit lowers your MF by a certain amount (I don't know the exact amount off the top of my head.. something like .00007 with each MSD, which seems to make sense based off my numbers). For example, my starting MF was .0007 (1.68% -- multiple the MF by 2400 to get the percent) and with 9 MSDs I brought it down to .00006 (.144%). Your MSD is calculated by your monthly payment rounded to the nearest $25. My payment was $411 and some change before the tax increase so my MSD was $425 each. I paid $3825 for security deposit ($425 x 9) which will be refunded to me at the end of my lease. This decreased my interest by 1.536% per year which is quite a lot of money over the life of the lease (I don't feel like doing the exact math, but I did post it previously either in this forum or the price paid forum if you want to see exact numbers) and gives a very high return on investment -- close to 15%, which is way higher than you could get from investing that money in any CD or bank. Everything that I had read on this forum prior to my getting my car suggested that the most MSDs you can put down is 8, but my dealer allowed me to put down 9 so YMMV on that. He said I could pay it down to 0 MF (which probably would have been 1 more MSD -- or maybe I couldn't since that would have been a little below 0 so maybe it wouldn't have gone through, who knows -- and I should have done that, but wasn't even thinking at the time). Effectively, my interest from paying down the MF is only like $120 or something over the life of my lease. | |
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Replying to: newyorklexus (Aug 17, 2009 7:01 pm) What did you end up getting? I may be getting a car today. My moms Saab was at the end of lease and they were being A-holes so she turned hers in lastnt. She is currently driving my Acura and has decided to pay my last 2 payments till my end of lease on that and that will give her time to shop around...worksout great for me bc now I don;t have to throw away $ by handing in my car early.
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Replying to: ambere10 (Aug 18, 2009 8:54 am) $34016 selling price for $37129 MSRP No Cap Reduction Tax/Tags/Title/1st Mo/Acquisition Fee = 3400 at inception MF is 0.0004 12k lease The offered amount 415 They are saying the selling price is their invoice. I'm not convinced.... This is for 2009 IS 250 AWD without HID
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