Last post on Dec 06, 2013 at 1:48 PM
You are in the Prices Paid - Buying & Leasing Experiences
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Lexus IS 250, Lexus IS 350, Lexus IS, Car Leasing, Sedan
#1752 of 1806 Re: Getting a good deal... or not? [ddavydenko]
Oct 15, 2013 (11:52 am)
Squeezed a little bit more and got another $300 discount from them. Final offer is this:
IS350 AWD FSport + Nav + Blind spot monitor
Inception fees: 1,100 (includes 1st month payment)
27 month, 10k/yr
Going to pick up vehicle on Sat.
Negotiating with dealerships is not the witch craft, but it is not an easy walke either. Piece of advise: do not bend too early; execute all possible options (even over color - that what gave me final $300 discount). Do not fall for any commitments they ask you to provide (like credit card deposit to "hold a car for you") - you do no owe anything to dealer until you sign papers. Good luck!
#1753 of 1806 Re: Getting a good deal... or not? [ddavydenko]
Oct 15, 2013 (12:06 pm)
Looks like a great deal to me!! The MSD's are really needed on this car since the money factor is terrible. When I went in there just to BS and work on preliminary pricing, an AWD IS250 with a MSRP of about $42k was offered to me for 27 mo 12K/year at $460/month. I didn't think they would come out of the gate with a rediculous offer considering I told him the money factor and residual. I had calculated an estimated price myself of about $370/month, I was hoping he would be near that and then we could work from there. With the $460 I got up and told him I was not interested. Didn't even try to stop me.
#1754 of 1806 Re: Getting a good deal... or not? [d_nyholm]
Oct 15, 2013 (5:36 pm)
During my research and experience with dealerships I came to a conclusion there are two types of dealers: margin dealers and volume dealers. You probably visited former one. Obviously you need to look for latter. I would also say that stopping by to face dealer might not be a good tactic, they are pros and selling for life. It is quite difficult to out-negotiate them on the spot, even for initial starting price. Maybe you want to try and negotiate with them over email - this way you have enough time to think about your every step and craft your negotiate statements in a proper way, without being stressed sitting in front of salesman who is pushing (almost all of them are pushing one way or another) to close a deal on his terms.
Also I've heard from one of the dealers that they are getting orders from as far away as 1000 miles - because ppl in less dense areas don't have leverage over dealers due to the lack of ones.
Main lesson I picked from experience this time: from now on there are only two ways I'm coming to dealership - to test drive a vehicle or to sign papers for already negotiated deal and pick the car up!
Feel free to PM with questions - I will try to do my best to help fight dealers. I just don't like them, so willing to put time in fighting them when necessary
Oct 17, 2013 (5:33 pm)
For the first time I am going with a lease on a vehicle. I have negotiated a 250 F sport with nav down to $3k off MSRP with an OTD price of $44k. Compared to the numbers I am seeing here my offers seem way off. It looks like the MF is .0013(what I've read here. Thank you all)and I know how to calculate that to an interest rate (multiply by 2400?).
For 36 months and 15k miles the price is $621 per month with $1k down. Something does NOT seem right! Please help me demystify this!
#1756 of 1806 Re: Help me please! [kizersoze83]
Oct 17, 2013 (6:50 pm)
I'm not sure what is the residual % on this vehicle with that many miles. On my deal (IS350 AWD F Sport) with 36 months and 10k/yr it was 65%. I assume on 15k/yr it will be lower than that. According to your numbers here is the calculation I got:
Net Cap cost $44,000
Residual value after 36 months $30,550
Monthly BASE payment $401
MF portion $97
Tax portion $35
TOTAL Monthly payment $533
If we lower residual to 60% that will cause higher payment:
Net Cap cost $44,000
Residual value after 36 months $28,200
Monthly BASE payment $467
MF portion $94
Tax portion $39
TOTAL Monthly payment $600
Here is the link to calculator I created to help with this. It is not the best, but at least gives you a general idea: http://bit.ly/1asLCSQ.
BTW, I'm using NJ sales tax which is 7%. feel free to modify it to your state.
#1757 of 1806 Re: Help me please! [ddavydenko]
Oct 17, 2013 (6:57 pm)
Thank you! One quote I got gave a residual of .65 for 3 year 36k miles. That payment is $556 for the same vehicle. MSRP of 43k negotiated to 40k. Is the sales tax only supposed to account for the difference between price paid and residual value or the entire agreed upon price?
#1758 of 1806 Re: Help me please! [kizersoze83]
Oct 17, 2013 (10:01 pm)
Yes, you are correct. AFAIK taxes are calculated against amortized price of the vehicle: Selling_Price * (100% - Residual_Value_%). I read about that here: http://www.edmunds.com/car-leasing/calculate-your-own-lease-payment.html.
Also, keep in mind that initial quote has nothing to do with the final deal you will arrive at given you maintain composure through negotiation process. Best of all would be to find two "volume" dealers and put them against each other. "volume" dealers are usually with the huge stock of vehicles, located on major highways near/in your city/town.
#1759 of 1806 Re: Help me please! [ddavydenko]
by kyfdx@Edmunds HOST
Oct 18, 2013 (3:02 am)
Taxes can be figures 3 or 4 different ways, depending on the state, and the resulting amount can vary widely..
All depends on where you are registering the vehicle.
#1760 of 1806 Re: Help me please! [kyfdx@Edmunds]
Oct 18, 2013 (7:20 am)
What is the current mf and residual for IS250? .0013 and 65% for 3 yr/45k?
#1761 of 1806 Re: Help me please! [kizersoze83]
by kyfdx@Edmunds HOST
Oct 19, 2013 (7:44 am)
I show the 3yr/45K residual at 63%... .00130 for the MF