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.

[GB-man]

Originally Posted by MonBK

Then screw them and go see another Lexus dealer.

I am already negotiating within a 500 mile radius

Everything else about the deal is very competitive. Unless LFS steps up to their advertised rate I am S-O-L.

[MonBK]

Originally Posted by GB-man

I am already negotiating within a 500 mile radius

Everything else about the deal is very competitive. Unless LFS steps up to their advertised rate I am S-O-L.

I would go to Honda and get a CR-V.

[GB-man]

Originally Posted by MonBK

I would go to Honda and get a CR-V.

Yeah she drove one of those already. They lease like but of course you can buy for much less and keep them.

[MonBK]

Originally Posted by GB-man

Yeah she drove one of those already. They lease like but of course you can buy for much less and keep them.

If she liked it then there's your answer.

Buy a slightly used 17-18 with low miles.

[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...

[Naples09]

Originally Posted by GB-man

I am already negotiating within a 500 mile radius

Everything else about the deal is very competitive. Unless LFS steps up to their advertised rate I am S-O-L.

LFS is usually very helpful. Have you asked other dealers in the area what the charge per mile is for additional miles upfront?

[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.

[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.

[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.

[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.

[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.

[keithl]

Originally Posted by pickettt

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

I LOVE cars, they really can elicit emotionall and passionate feelings in people. In fact I am an auto broker and dealer. As a dealer, the 2 ways to make the most money are in order:
1. Leasing 2. Subprime Sales. They are both similar in structure. There is a reason call dealers would MUCH rather you lease than buy a car... I just happen to want to help people make good decisions when it comes to their cars.

[pickettt]

Originally Posted by keithl

I LOVE cars, they really can elicit emotionall and passionate feelings in people. In fact I am an auto broker and dealer. As a dealer, the 2 ways to make the most money are in order:
1. Leasing 2. Subprime Sales. They are both similar in structure. There is a reason call dealers would MUCH rather you lease than buy a car... I just happen to want to help people make good decisions when it comes to their cars.

I agree. It's not a good financial move for the buyer (or lessee, in this case.) It can be argued that neither is buying a $10K watch.

[keithl]

Originally Posted by pickettt

I agree. It's not a good financial move for the buyer (or lessee, in this case.) It can be argued that neither is buying a $10K watch.

True, but if you buy a Rolex there's a good chance you'll get that money back, at the very least you'll OWN it and be able to get something for it. Also, I apoloqize if I "derailed" the thread.

[GB-man]

I’m well aware of the pros and cons of leasing a car. My education is in finance. I disagree that leasing is always a poor choice but that’s not the point of this thread.

I have someone getting to the bottom of the 20 cents per mile but honestly I think she will be better just doing 15 per year over 39 months then looking for a pull ahead 36 months from now at the December sales event in 2020.

Thanks to all who replied.

[RolexZen]

Originally Posted by GB-man

I’m well aware of the pros and cons of leasing a car. My education is in finance. I disagree that leasing is always a poor choice but that’s not the point of this thread.



I have someone getting to the bottom of the 20 cents per mile but honestly I think she will be better just doing 15 per year over 39 months then looking for a pull ahead 36 months from now at the December sales event in 2020.



Thanks to all who replied.

What did you end up doing, GB-man?

[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.