Last post on Nov 26, 2013 at 10:51 AM
You are in the Hybrid Vehicles
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Lexus ES 330, Lexus ES 300, Hybrid Cars, Sedan
#14 of 23 Deal or no deal?
Jul 26, 2013 (7:23 pm)
2013 ES300h w/ leather luxury package, navigation, back up camera, parking sensors, rear sun shade, rain sense wiper, HID lamps, blind spot, intuitive park assist, mats & applique, wood steering wheel and shifter MSRP 46,320:
Lease 46mo 10k mile per year, $650/mo including SD CA 8% sales tax w/ only $1500 down, and $5000 negative equity on my trade. Already got the trade appraised at Carmax and 2 other places and Lexus was the highest offer on the trade.
#15 of 23 Re: Deal or no deal? [djrobsd]
Jul 27, 2013 (11:09 pm)
Are you seeking opinions or have you already done this deal? If you haven't done the deal, I would recommend not doing it - that's way too much negative equity to roll into a new lease. If you have already done this deal, enjoy the car, although it will cost you around 78 cents a mile if you complete the lease as stated.
#16 of 23 Re: Deal or no deal? [gmanusmc]
Jul 29, 2013 (4:43 am)
No I haven't yet. I was trying to figure out if that was a normal range of price to pay for a loaded es300 hybrid when you take out the negative equity.
I'm still not sure how a lease works with negative cost cap reduction.
To me it seems if they are advertising a lease for 369 a month without tax with 3900 due at signing and I am only putting 1500 down and rolling negative then it is around where it should be but who knows. Does anyone know for every thousand dollars change how much it would increase a lease on a car like this?
Is there a one to one relationship with buying a car with higher MSRP then the advertised lease special and negative cost cap? Ie if the lease they advertise is for an MSRP of 39900 and the car I pick out is 46300 how does that change things?
#17 of 23 Re: Deal or no deal? [djrobsd]
Jul 29, 2013 (9:12 am)
You need to educate yourself on how leases work and how they are calculated. I think there is a section on Edmunds that can help you out. Never accept a nationally advertised lease as a figure locked in concrete - there is usually some profit built in to help dealers make more money. Selling price is one of the main factors used to calculate the lease monthly payment - smart shoppers negotiate the lowest selling price possible. For each $1000 the selling price is decreased or increased, a 36 month lease payment will change approximately $28 a month. Negative equity is added directly to the selling price. Therefore, if you add $5000 negative equity to a lease, you would be paying about $140 per month just to cover the cost of trading in your old leased vehicle. Your post history indicates that you don't keep cars long - you would be much better served by entering into a much shorter lease term (24 months) or conventionally finance for no more than 36 months. But before you do anything, educate yourself on how to buy or lease a car - dealers love customers who are confused - they make a lot of money on them.
Hope this helps,
#18 of 23 Re: Deal or no deal? [gmanusmc]
Jul 29, 2013 (11:16 am)
Thanks for your response to my questions about leasing a vehicle. I usually keep cars only if I'm 100% satisfied with them - in the case of my current vehicle, I thought I was buying a Lexus, when in fact I got something more along the lines of a Toyota Corolla with some fancy trim on the inside. When I bought it the dealership pulled the wool over my eyes by giving me the quick 1 freeway exit test drive, and I should have drove it a much longer distance before making a buying decision. The Ct200h is a very attractive hybrid but it is very uncomfortable to drive for long distances due to the vibrations and noise which the dealership service department told me is "Normal for the ct200". It's a 4 year lease and I still have 3 more years to go on it.... It's probably a horrible idea for me to jump ship from this car, but I guess I weigh in heavily the fact that I'm paying $535 a month for a vehicle that feels like a $299 prius C to me. I know it's not quite as bad, but that's the closest analogy I could come up with.
Anyway, you're probably right a 24 month lease would be much better for me. I will have to weigh the payment vs future risk factor in and see if it would work out for me.
BTW, I realize MSRP is the best thing to negotiate with the dealer. But, in a lease, can't they make it back in other ways such as jacking up the money factor or changing the residual, or are those fixed by the manufacturer and unable to be changed based on my credit score (I qualify for tier1+ rates from LFS).
Are there any "penalty rates" when you roll in negative equity do they increase the money factor because it's more of a risk to the lender to loan more then the msrp of the vehicle?
Lastly, are there many dealers out there that are confident enough in their product that they will let me take it for a demo drive for a few hours (or maybe even a day to commute to work and back) so I can see if I really want it so I don't make the same mistake again?
#19 of 23 Re: Deal or no deal? [djrobsd]
Jul 29, 2013 (3:07 pm)
Some dealers will attempt to jack up the money factor - the good ones don't. With your credit, you qualify for LFS best rate and you should demand it. The lease expert on Edmunds (screen name Carman), found in the various lease questions forums, can provide the latest money factors, residual percentages and incentives available. There should be no money factor penalties for negative equity other than you are paying interest on the rolled in amount. Keys to leasing: lease a vehicle with high residual value, negotiate lowest possible selling price, get the lowest possible money factor. Of course, when a trade in vehicle is involved, the whole thing gets tricky depending on the value of the trade in and how much is owed on it. As far as test drive, I guess you should find a dealer who will allow you to test drive the vehicle to the point you are satisfied that you can make an informed judgment that the vehicle will do what you want it to do after you take possession.
Nov 22, 2013 (8:07 am)
What's the actual milage on an ES-300H? Tha stated milage is 40/40 but is that achievable?
#21 of 23 Re: Milage [slowdriver]
Nov 22, 2013 (5:58 pm)
My three week old one with over 500 miles on the last two fill-ups is averaging just over 41 mpg.
#22 of 23 Re: Milage [carnaught]
Nov 26, 2013 (9:24 am)
500 miles between fill-ups is very good. Is the mileage highway, local or mixed?
#23 of 23 Re: Milage [slowdriver]
Nov 26, 2013 (10:51 am)
My mpg is based on mixed driving, close to 50/50.