ES350 Leasing.

[mmcartalk]

A friend of mine (a guy I swim with regularly at the recreation center) picked up his third leased ES350 a couple of days ago....a 2010, 2013, and an end-of-model year 2015. The Lexus dealer he was at (twice) gave him a discount off the full lease total for paying it all up front, at once, with one check, rather than a monthly payment. All he had to do was ask for it. Might be an option for you guys leasing ES or any other Lexus models....depending on the dealership, if they will do it. I personally think it makes sense for both involved, since the dealership gets their money without the possibility of a default or late payment, and the customer is free of debt from Day One.

I told him about this forum, BTW, but he's older than me, and doesn't seem to want to really get involved with computers and forums.

 

[Bulldog 1]

Nah. I haven't kept a lease to term in several cars now. I traded off my 2010 early cause I fell for the UBM F Sport in 2012. Traded that off almost a year early cause I wanted the new IS body and MRM back again. Traded off the 2013 ES350 in May with a coupon walking away from final 3 payments. Got itchy on the 2014 IS because the '15 ES had a backup camera and traded it off for a 2015 IS250 F Sport two weeks later.
My dealer loves me because we drive low miles and are meticulous on keeping our cars clean and damage free even though they're a lease.
None of that would be possible paying up front because they have their cash up front no matter what happens to you.
I do electronic payments so there is no inconvenience.
Leasing since 2000 in general and from Lexus since 2006, my theory has always been keep your principal in the bank. Low down and low payments are the name of the game in my experience.
I haven't bought a car since 2001. They've all been leases because Lexus makes it so easy.

 

[mikeavelli]

I have noticed the pay up front lease option being advertised more as an option for people. Thanks Mike and Bulldog.

 

[mmcartalk]

I have noticed the pay up front lease option being advertised more as an option for people. Thanks Mike and Bulldog.

Just for the record, my friend just got his new 2015 ES lease a couple of days ago. They repeated the former offer he got on the last one (the 2013 ES)......a discount for paying it all off up front.

 

[Och]

If you do a full payout, what happens of the car is totaled? I know I leased a 2010 335 coupe that got destroyed by hurricane Sandy exactly a month before the 3 year lease term was expiring - and even though I was making monthly payments, I got back I think about $4-5k from insurance company because they went by KBB value, paid off BMW what BMW's buy off price was in my agreement and gave me the difference. All I had to do is make that last monthly payment and keep the rest of the money.

 

[mmcartalk]

If you do a full payout, what happens of the car is totaled? I know I leased a 2010 335 coupe that got destroyed by hurricane Sandy exactly a month before the 3 year lease term was expiring - and even though I was making monthly payments, I got back I think about $4-5k from insurance company because they went by KBB value, paid off BMW what BMW's buy off price was in my agreement and gave me the difference. All I had to do is make that last monthly payment and keep the rest of the money.

You actually raise a good question.....and I don't completely know what the answer is. Even if the insurance company pays off a totaled car and gives the dealership or bank what it is worth (KBB), you're still out the entire two or three lease-payment, but have not gotten the full two or three year's use of the vehicle that you paid for. Technically, after the dealership or bank gets their payment from insurance, they might (?) owe you somewhat of a refund for the missing period that you did not have the use of the car, but it might be a sticky situation.

 

[mmcartalk]

While we're on the subject of ES prices and leases, It's interesting the way that Lincoln prices the competing MKZ sedan, with both hybrid and non-hybrid versions having exactly the same starting price ($35,190). Not surprisingly, it has stimulated MKZ hybrid sales. Can't help but wonder if ES Hybrid sales would increase if Lexus did the same thing. (Can't depend on personal observation, of course, to determine actual sales figures, but, nevertheless, I haven't seen that many ES hybrids in the D.C. area...the regular ES seems a lot more popular to the naked eye).

Of course, one cannot directly compare even non-hybrid sales of ES and MKZ models....the ES, overall, has been a far more popular vehicle. And, given the choice, between the two, I'd buy an ES myself...I personally never liked the 2Gen MKZ.

http://www.autotrader.com/car-news/lincoln-mkz-hybrid-proves-more-popular-than-expected-212028

 

[Bulldog 1]

Exchanged emails with my VIP Sales Manager whom I buy from exclusively.
Mentioned I saw a 2016 Matador Red Mica ES350 in stock and was wondering if I made a bad decision buying two cars back in May.
His response was, "2016 payment $200 a month MORE than 2015".
I'll let the rich gotta-be-the-first-on-the-block buyers overpay for the privilege of ownership, but I am mad jealous of those GS inspired rear exhaust inserts!
Oh well, have my Matador Red Mica and a super low affordable monthly payment, so I'm good for 20 more months.

 

[PaulA]

Hi Everyone,

I know this is an old thread, but I just wanted to add one more thought.

Aside from sales volume, the most important item that a dealer and any other business of any size needs to control is "Cash Flow". It is probable that when someone brings in a lease early, the dealer gets a lump sum which can be deposited immediately, and pay some bills that might offer the dealer a discount for early payment. Additionally,he gets a lightly used car that will sell well as a Certified pre owned.

This cash flow reason is why you'll see promotions at specific times through-out the year.

PaulA
Manager for Lexus Owners Club - North America.
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