I considering a lease on a 2008 TL+Nav. All of the quotes I have got so far lead me to believe that the numbers are what they are and it's just a matter of how much I want to part with the day I pick up the car vs. the monthly payment.
Am I right, or can better deals with the same terms be found by shopping around?

 

not really sure what you mean by can better deals be had.

I too am researching a lease on a TL. From what I've seen - and I've been reading heavily on edmunds.com inside line forums.... you CAN easily negotiate a purchase price AT invoice.

if you BUY the car, then you can get into the $2000 dealer cash. you can combine that with the special financing rates on a purchase.. like 4.9 for 60 months.

IF, howver, you want to lease, you are getting a Money Factor of .00081 which equates to 1.9%....so they won't give you the $2000 dealer cash.... your basically getting the money in terms of a low MF.

I think the dealer gets the $2k back if you BUY. if you LEASE they dont' get that, so therefore they won't give it to you either.

so once you know the residual value, and once you know the MF - you just pick the price of the car. the residual is based on MSRP, and the miles you drive/length of the lease.

for exampoe, i'm looking at a TL-S 36 months, 12k/year. the residual for that is 55%. the MSRP is 38940. the invoice is 35700 or something like that.

so if I lease it at invoice, the residual is 21417. (or 55% of the MSRP).

essentially, the lease deals are what they are. they are VERY GOOD righ tnow, but if you go in armed iwth info, you will get the car at invoice.

the money factor is set by the bank. you can't negotiate that. NOR can you negotiate the residual values. the oNLY thing you really haggle on for a lease is the price - which in a lease is called cap cost.

you can also haggle out those stupid dealer add ons...floor mats, teflon coating, dealer "prep" fees or tohe thigns that are just BS add ons. but the basics, nuts/bolts of leasing - the residual, the MSRP, and MF - you can't negotate.

since the cars are reduced to invoice, as long as you only pay that, then yeah, you get the same price no matter where you go. some sucker may go in and pay too much...but you won't suddenly get them to give you an 08 at $3000 off invoice.... then they lose money...

the lease deals are good right now. i think on a 08 TL-S if you ONLY put down about $1000 at signing, you can awalk out for undr $500/month monthly payment. like $485 with tax in CA. not bad.

when i researched leasing about a year ago on 07s...and the MF was at a higher more normal level, it was about an extra $100/month.

from my calcs, that's what you're saving per month with the low MF. about $100/month in rent / interest charges.

 

Just about every component of a lease is negotiable. The saleseman may not tell you that. here is my strategy for leasing. (I have leased my last 5 vehicles)

1. Negotiate the cost of the car first. On a 2008 TL with Nav, you should be able to go 500-1000 below invoice.

2. Don't tell the saleseman that you are going to lease, just tell him/her you are not sure if you will buy or lease.

3. Once you have the price of the car fixed, go see the finance manager.

4. Ask the finance manager to show you the resdiual on a 36 and 39 month lease.

5. never lease beyond 39 months.

6. After you actually see in print (really, have them show you the book) the residual, if it is the same for 36 and 39, go for 39 months, if they are different, go with 36 months (assuming the 36 month is higher).

7. Next, ask for the money factor. If it is higher than 0.00150, don't lease, but ask them if they can lower it. If it is between 0.00100 and 0.00150 you have a pretty good deal, if it is lower than 0.00100 then you have a great deal.

8. Never, ever, ever put any money down on a lease unless it is a state requirement (I think in NY you have to pay the taxes up front, but I am not sure). The only " up front" cost that is fair is the first month's payment (of which my lexus dealer paid that on my wife's RX330.). Document fees and other fees are annoying and negotiable, but have them rolled into the lease.

9. Be prepared to say no if the parameters are not to your liking.

10. Good Luck!

SAW

 

I was looking at a TL+Nav. Most quotes are like $1300 down, $459 x 36 with 18k mi and a $20317 buy out. I believe that is at MSRP. So I guess if I keep looking I can do better? Or is this really just juggling the numbers?

 

Hi,

It depends on the numbers you are getting, share some #s.

I prefer a lease because I'm not planning on keeping a car for more than 2-3 years. If you can get a great lease quote, it will work out the same as purchasing a car, and in 3 years after its value tremendously depreciates selling the car, regardless, you will be in a loosing position, especially considering the new shape coming out within a year.

Also, for some of us who own small businesses this can be a legit tax write off. If you are tight for cash, I don't recommend leasing, as you will never see the money again, as this is not an investment of any sort.

There are advantages of leasing, the dealership does not only answer to you but to the bank,which actually owns the car. The bank has a signed contract where Acura financial headquarters are responsible for any upkeep of the car for any reason and service must be rendered immediately.

 

The sales price of the car determines everything! Salesman dont want you to know that and like to speak in terms of ~how much per month~ can you spend?

Know the dealers actual cost of the car and work up from there. Never look at the invoice as a real number- the low number on it is higher than you should go.

Its year end clearance and sales numbers are down-
dump the commission based salesman and go direct to the finance manager or sales manager. The salesman does not set the cars price- they are just errand boys for the sales mananger who approves deals.

 

If you plan to keep a car, buy it outright from the start.
If you are a business and write off the car expense- get 2 year lease and always have a nice new car.
Make the decision before going in- lease or buy

 

I agree with you about the MF and residual most of the time, however, occasionally the MF is negotiable, so it is worth asking. On my TL-S they cut the MF in half right before my eyes, from 0.00300 to 0.00150. That was in December 2007, the residual on a 36 month lease was 60%. One year before that, the Lexus dealer cut the money factor to 0.00100 to make the deal happen.

Even though the bank sets the residual, different banks will use different residuals. So if the residual sounds low, ask the finance person to check residuals at other banks. If they tell you they are all the same, they are wrong, have them check and make sure they show it to you in print. Be agressive, pleasant, and persistent.

 

So I guess the next question is how do I calculate how much I should be paying?

 

I agree, never focus on the monthly payment. Focus on the main components of the deal; cap cost, residual, and money factor, term. If they are all good, the monthly payment will be good as well.

 

Okay, so the residual is $20317 and the MF is .00081. These are the numbers I have got from everyone. So I should be able to lease the car at at least invoice? Reducing the finaced lease amount by 3k or more shold show up as some pretty healthy savings, no? Then I should be able to do much better on the lease than what they are telling me. Hmmm.

 

If you get the car at invoice, the dealer will profit about 2K. Still a very good deal for you. It is possible that the dealer will go a little below invoice, 500-1000 toward the end of next week or the week after. They really do not like to cut into the "dealer cash" but at the end of the year, they just want to move inventory, so take advantage of it.

 

Check out this website, it can make your life a bit easier with the math, and they do offer a good advice.

http://www.leaseguide.com/calc.htm

My lease for 08 TL-S, out of pocket $1200, and $480 a month.

This is in lovely NY (tax 8.75%), 36 months, 12K/year.

 

Okay, last quote in at 2k down 442 x 36 month, 18k mi with 20317 buyout.
I think I am gog to bite at my first offer. The dealer is closer, less out of pocket, overall cost ends up being the same.
So it looks like 1300 down, 459 x 36 18k mi 20317. I think I'll try to get them to 450 flat with everything else being the same and go for it.
Thanks for all your help folks.

 

was this price of 480 WITH sales tax or before tax.
mind posting the actual cap cost? if your price is with tax..t.hat's pretty good.

from what I can tell, I should be able to get the TL-S at invoice, which is about $35,800. give or take a bit.
with 12k / year the residual is 55%.
do you recall what your residual was and what your MF was?

right now the residuals are ok...not as high as they might ahve been in past, but the MF is great.

i have a car i can trade in worth about 3000. if i trade that in, my monthly on a lease similar to yours would be roughly 400-425/month with tax. that's incluing an extra $1000 fo the a speci body kit.

 

BigDouges, those numbers are super unbelievably good for 08 TLS and with 18K!?

23109VC, those are the final numbers, this is what I've paid. If you can get anyway near those numbers than you are doing great. My whip was bought from Philly, PA thru a personal friend, who runs a leasing company.

Good Luck!

 

Those #'s are not for an S.

 

ggesq,

cool, that makes sense thanks

 

I got the 450/ month. I don't think I got hosed too badly. Hope I'm right.