Anyone work at a lexus dealer?

[GB-man]

I am mid negotiation on an rx350 lease for my mother and am caught up on the cost to purchase extra miles above and beyond the 15k per year. On lexus financials own site it clearly states extra miles can be purchased ahead of time for .10 per mile but the dealer is telling me .20.

I am looking to bump it to 18000 per year so we are talking $900 difference.

See under excess mileage charge.

https://www.lexusfinancial.com/pub/w...ments/glossary

I called lexus financial and they guy basically had no answer for me other than he has "seen .15 or .20 before"

I guess this is more a rant than anything

[MonBK]

So did you get the 10 cent?

[GB-man]

Originally Posted by MonBK

So did you get the 10 cent?

I haven't called them back yet. If I cannot get the advertised .10 rate on extra miles I will likely advise my mother to purchase fewer or no extra miles as the penalty for going over is only 5 cents difference .20 pre lease vs .25 post lease.

Everything else in the deal is sound.

[MonBK]

Originally Posted by GB-man

I haven't called them back yet. If I cannot get the advertised .10 rate on extra miles I will likely advise my mother to purchase fewer or no extra miles as the penalty for going over is only 5 cents difference .20 pre lease vs .25 post lease.

Everything else in the deal is sound.

If their own website states 10 then thats what it should be.

Did the finance guy possibly worked for a Rolex AD before?

[GB-man]

Originally Posted by MonBK

If their own website states 10 then thats what it should be.

Did the finance guy possibly worked for a Rolex AD before?

No kidding. Problem is they are presenting it as non negotiable and lexus financial is of no use.

[MonBK]

Originally Posted by GB-man

No kidding. Problem is they are presenting it as non negotiable and lexus financial is of no use.

Then screw them and go see another Lexus dealer.

[Chewbacca]

Originally Posted by GB-man

I am mid negotiation on an rx350 lease for my mother and am caught up on the cost to purchase extra miles above and beyond the 15k per year. On lexus financials own site it clearly states extra miles can be purchased ahead of time for .10 per mile but the dealer is telling me .20.

I am looking to bump it to 18000 per year so we are talking $900 difference.

See under excess mileage charge.

https://www.lexusfinancial.com/pub/w...ments/glossary

I called lexus financial and they guy basically had no answer for me other than he has "seen .15 or .20 before"

I guess this is more a rant than anything

never buy additional manufacturer lease miles on a car/brand with a high residual.

from personal experience; take the lowest and then on the last 3mo remaining, offer to transfer the lease to a new lessee who is looking to buy one outright, and/or ask which lexus dealer wants it back at the maturity date. that way, it won't go to auction and the dealer that takes the car back has first dibs.

just option it out so it has the right package; which makes it easier to sell and market.

take the lowest mileage lease, drive it like you own it. this only works for in-demand vehicles. ie: nothing fleet sale or rentalish.

[GB-man]

Originally Posted by Chewbacca

never buy additional manufacturer lease miles on a car/brand with a high residual.

from personal experience; take the lowest and then on the last 3mo remaining, offer to transfer the lease to a new lessee and/or ask which lexus dealer wants it back at the maturity date. that way, it won't go to auction and the dealer that takes the car back has first dibs.

just option it out so it has the right package; which makes it easier to sell and market.

take the lowest mileage lease, drive it like you own it. this only works for in-demand vehicles. ie: nothing fleet sale or rentalish.

I don't think that's going to work. Take a 3 year 30,000 lease and try to transfer it to another when it has 50,000 miles with three months remaining? That would be $5000 in overage charges not to mention the disposition fee. I have found dealers are not so jumpy to acquire high mileage examples coming off lease. They send em straight to auction.

[Chewbacca]

Originally Posted by GB-man

I don't think that's going to work. Take a 3 year 30,000 lease and try to transfer it to another when it has 50,000 miles with three months remaining? That would be $5000 in overage charges not to mention the disposition fee. I have found dealers are not so jumpy to acquire high mileage examples coming off lease. They send em straight to auction.

i have. and it worked.

its about allocation.

lexuseses hold their value and people tend to hold onto them.

as mentioned, it only works with very few brands or nameplates.

Lexus SUV's, Porsche 911's (generally only 911's), ltd edition models, tacoma's, Land Cruisers, diesel full size trucks etc...

[brandrea]

Originally Posted by Chewbacca

never buy additional manufacturer lease miles on a car/brand with a high residual.

from personal experience; take the lowest and then on the last 3mo remaining, offer to transfer the lease to a new lessee who is looking to buy one outright, and/or ask which lexus dealer wants it back at the maturity date. that way, it won't go to auction and the dealer that takes the car back has first dibs.

just option it out so it has the right package; which makes it easier to sell and market.

take the lowest mileage lease, drive it like you own it. this only works for in-demand vehicles. ie: nothing fleet sale or rentalish.

Interesting points and thank you for this.

[keithl]

Originally Posted by Chewbacca

never buy additional manufacturer lease miles on a car/brand with a high residual.

from personal experience; take the lowest and then on the last 3mo remaining, offer to transfer the lease to a new lessee who is looking to buy one outright, and/or ask which lexus dealer wants it back at the maturity date. that way, it won't go to auction and the dealer that takes the car back has first dibs.

just option it out so it has the right package; which makes it easier to sell and market.

take the lowest mileage lease, drive it like you own it. this only works for in-demand vehicles. ie: nothing fleet sale or rentalish.

...or be even smarter and never lease a vehicle.

[Chewbacca]

Originally Posted by brandrea

Interesting points and thank you for this.

anytime! but with your bank, not sure why it matters, bri...

Originally Posted by keithl

...or be even smarter and never lease a vehicle.

leasing is a great option if researched and done right.

plenty of threads and websites to support.

[keithl]

[QUOTE=Chewbacca;8040629leasing is a great option if researched and done right.

plenty of threads and websites to support.

[/QUOTE]

Financially speaking, it's never going to be a great option. It is the most expensive way to operate a vehicle. The only way I would tell someone it's ok to lease a vehicle is if it's for an emotional reason and driving a car they really can't afford will make them feel better.

[pickettt]

Leasing makes sense for plenty of reasons.....finance just isn't one of them.

[SDRider]

Originally Posted by keithl

Financially speaking, it's never going to be a great option. It is the most expensive way to operate a vehicle. The only way I would tell someone it's ok to lease a vehicle is if it's for an emotional reason and driving a car they really can't afford will make them feel better.

My friend and his wife only lease their vehicles. They like to drive new cars and switch them out every two to three years. He swears by leasing, especially German cars, as you are always under warranty. They could easily afford to buy but they both drive less than 10k miles annually so leasing works well for them. She drives a new BMW 530i and he drives a new Lexus RX. He’s a finance guy and makes good money, she’s a corporate attorney.

I always buy because I typically put 20k miles a year on my car.

[Old Geezer]

Shop another dealer. Everything is negotiable. I’ve had multiple Lexus vehicles in succession and quite honestly I’m finding it increasingly difficult to deal with them. I’m all about a fair deal for both sides but they are starting to play too many games and make the purchase process way more arduous than I’m willing to tolerate for what should be a fairly straightforward transaction of purchasing a vehicle.

[joli160]

I'd move on and even consider another brand.

[Abdullah71601]

That looks like a Toyota RAV4. You can get the fully loaded hybrid Limited RAV4 with leather, heated seats and all the Toyota safety technology for about $36K. And Toyota Finance is easier to deal with.

[breitlings]

Originally Posted by Abdullah71601

That looks like a Toyota RAV4. You can get the fully loaded hybrid Limited RAV4 with leather, heated seats and all the Toyota safety technology for about $36K. And Toyota Finance is easier to deal with.

Rav 4 is the base to the NX . RX I think is a highlander base.

[GB-man]

Originally Posted by 1st amg

Being that you live on both sides of the border, do you find that cars in general lease cheaper in the USA? It seems when I travel there, for fun I price cars and trucks on leases and it seems they are substantially cheaper to lease


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I don’t actually own property in Canada just frequent TO for shopping and entertainment. Very fortunate to have a great metro so close to home. :

I always thought cars were both more expensive to buy as well as insure in Canada. Maybe I’m wrong there just my gut.

Originally Posted by swils8610

Leasing and buying both have advantages and disadvantages. Many things are to be considered. Money factor, residual incentives etc. Neither is right or wrong.


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Hey buddy I sent you a pm. Hope your weekend is going well

[pickettt]

Originally Posted by GB-man

I am mid negotiation on an rx350 lease for my mother and am caught up on the cost to purchase extra miles above and beyond the 15k per year. On lexus financials own site it clearly states extra miles can be purchased ahead of time for .10 per mile but the dealer is telling me .20.

I am looking to bump it to 18000 per year so we are talking $900 difference.

See under excess mileage charge.

https://www.lexusfinancial.com/pub/w...ments/glossary

I called lexus financial and they guy basically had no answer for me other than he has "seen .15 or .20 before"

I guess this is more a rant than anything

I worked F&I for a number of years (though not anymore.) If you want to message me with a specific question, maybe I can help.

[raulpsanch12]

Idk if I could ever lease a car. Unless i absolutely have to but why not pay to own if the difference in cost isn't that significant.

[1st amg]

Being that you live on both sides of the border, do you find that cars in general lease cheaper in the USA? It seems when I travel there, for fun I price cars and trucks on leases and it seems they are substantially cheaper to lease


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[breitlings]

Originally Posted by 1st amg

Being that you live on both sides of the border, do you find that cars in general lease cheaper in the USA? It seems when I travel there, for fun I price cars and trucks on leases and it seems they are substantially cheaper to lease


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Interesting, I know people go to Canada to buy cars, they swear canada is cheaper and from the cars I've looked at they seem to be about 20-30% cheaper. There's quite a few discussions on how to get the manufacture statement etc.

[swils8610]

Leasing and buying both have advantages and disadvantages. Many things are to be considered. Money factor, residual incentives etc. Neither is right or wrong.


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[jrs146]

Originally Posted by swils8610

Leasing and buying both have advantages and disadvantages. Many things are to be considered. Money factor, residual incentives etc. Neither is right or wrong.


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I would agree. There is a scenario that works best for both. It just really depends on the scenario.

I buy my vehicles through my company and use section 179 depreciation to accelerate the depreciation. To me it’s an advantage I don’t get with leasing. The only downside is I’m stuck with the vehicle for a while otherwise you may be left with depreciation recapture.


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[phm14]

I'm no financing expert, but I have been driving Toyota & Lexus for ~35 years. I think leasing works best on vehicles with higher depreciation/lower reliability, from a cost per mile standpoint. Seems to me it's hard to beat the scenario of buying a clean ~3 year old Toyota/Lexus right, and driving it 3 years or more. The longer you keep it after it's paid off, the lower your cost per mile gets, generally, resale factored, of course, vs leasing or buying new more frequently. If you want to drive the latest hot model, it's pay to play. ;)

[bdex75]

This is a situation where there is no absolute in my opinion. To say that leasing is “always” bad. Or is only good for the dealer is BS. Just like anything else it is easy to shop the payment on a lease. All else being equal (same trade in or no trade in, same credit, same vehicle and same leasing company) you can get the best deal. Just like price shopping a purchase or an interest rate on a or purchase at a bank.

A 36 month 15k mile a year residual factor from GM Financial on my new truck was the same no matter what dealer I go to. I buy at GM supplier rates minus any rebates no matter what dealer I go to. I do not recall if there was dealer cash or not, that is one place the dealers can differ. As is he money factor. One may try to hold rate more than another just like on a purchase.

Full disclosure my best friend owns a Chevy dealer so he gives away the farm to keep me in new trucks.

All that crap equals the lease payment. Not hard to understand.

Here is the bottom line on my new truck (2017 Silverado High Country)
Right at $47,000 was supplier minus all incentives (with Sales tax included on a purchase). Was $45,000 without tax.

Purchase at 3% for 60 months no money down was about $850/month.

A 36 month, 15,000 mile/year lease with no money down was$680month tax included.

$170 a month cheaper to lease.


Here is the kicker. Last 2 trucks (a LTZ Z71 and a High Country) I leased like above. Drove for 32 months and put 65-68k miles on them (way above the 45k allowed in 36months). Between the ACV of the truck (its actual cash value) and the available incentives for pull ahead at the time I was not upside down at all when we called to get a buyout on my lease.

I trade out of it. I don’t turn it back in to the leasing company, then you have to pay the excess mileage charges etc.


To CJ’s point you have to do this with the right vehicle. I have a co-worker that wants to do it with a Tahoe. It doesn’t work. Won’t work on a impala or a Malibu or a focus or an es350 and probably not on a rx350.


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[breitlings]

Originally Posted by GB-man

I am mid negotiation on an rx350 lease for my mother and am caught up on the cost to purchase extra miles above and beyond the 15k per year. On lexus financials own site it clearly states extra miles can be purchased ahead of time for .10 per mile but the dealer is telling me .20.

I am looking to bump it to 18000 per year so we are talking $900 difference.

See under excess mileage charge.

https://www.lexusfinancial.com/pub/w...ments/glossary

I called lexus financial and they guy basically had no answer for me other than he has "seen .15 or .20 before"

I guess this is more a rant than anything

I've been told that Toyota Lexus, will forgive all overmilage if you either 1) buy out the car at the end of lease 2) buy or lease another toyota lexus at the time of termination

Maybe that was one dealer but they seemed shady as fuck to me, so I bet it applies to every dealer.

[GB-man]

Originally Posted by breitlings

I've been told that Toyota Lexus, will forgive all overmilage if you either 1) buy out the car at the end of lease 2) buy or lease another toyota lexus at the time of termination

Maybe that was one dealer but they seemed shady as fuck to me, so I bet it applies to every dealer.

You always have the option to buy out the car in any lease. Check your contract to find out exactly what it will cost. Occasionally leasing companies will negotiate buyout but generally whatever’s in the contract is the price.

Yes many times they will also forgive you for modest overages if you release or rebuy with them. That said, I find it compromises your negotiating position.