Did anyone research the Lexus 1Pay lease?

1057 Views 7 Replies 4 Participants Last post by IS300GTE, May 17, 2001

RichardTrickle

Discussion Starter · May 16, 2001

I am going to ask my dealer about this after I saw it on the website. Has anyone inquired about it. I'm sure it would be cheaper, but I was wondering how much and if it the residual was higher, etc. Any info would be appreciated. (I like to go into all conversations informed, if possible.)

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IS300GTE

· #2 · May 16, 2001

what is this?

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RichardTrickle

Discussion Starter · #3 · May 16, 2001

This is what it said on the website:

All up front.
This program saves you money and allows you to avoid the hassle of monthly payments. It permits you to prepay all monthly payments in a single total lease payment at lease signing. This single total lease payment is less than the amount you would pay over the life of a conventional lease.

Sounds interesting. I don't like going into a car dealership clueless. I would rather have some inclination to what to expect, etc. If no one else has an idea, I will probably just email a dealer.

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lexusprince

· #4 · May 16, 2001

It permits you to prepay all monthly payments in a single total lease payment at lease signing. This single total lease payment is less than the amount you would pay over the life of a conventional lease.

DUH!? it's obviously cheaper cuz u're not paying the interest. and in common sense, paying all the money upfront has nothing to do with residual value. just because u paid for the car with one payment, why the heck would that effect the value of the car? and the price obviously depends on u negotiating, just like financing or leasing.
think of it this way. it's just like financing a car. if u have the money, go a head and pay it up front and save on the interest fees. if u don't, finance it. the only diffenrence here is u're leasing and it's exactly the same thing.

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mjoo600

· #5 · May 17, 2001

I completely agree with you, lexus prince.
Unfortunately, from what I understand, Lexus Financial Services offers a lower money factor/interest rate if you make a lump sum payment for the lease, and seems to think that this is some great deal we should be excited about. Logically, if you are making one payment, you should only pay for the depreciation (negotiated cost-residual value), plus tax. One way to think of it is this: Instead of making a down payment ('cap. cost reduction') of $1,000 or so, make a down payment equal to the amount of depreciation (depending on how low you negotiate the cost of the car) - let's say about $10,000 to 12,000. Then the remaining amount that would be financed would obviously be zero.

Essentially, what Lexus wants to do is take your money now, and still make you pay interest on the money that you just paid.

The only decent 1-pay deal would be one with a interest rate of 0% and a payment equal to the residual.

[ May 16, 2001: Message edited by: GSXR600 ]

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IS300GTE

· #6 · May 17, 2001

let me know what you find out, if lexus makes it so that you can pay 0% interest with this lump sum payment, i would be interested also, and if you can get a guestimate on what it will be on a new lex that say cost 32k, that would also be something i would like to know. thanks.

Originally posted by RichardTrickle:
This is what it said on the website:

All up front.
This program saves you money and allows you to avoid the hassle of monthly payments. It permits you to prepay all monthly payments in a single total lease payment at lease signing. This single total lease payment is less than the amount you would pay over the life of a conventional lease.

Sounds interesting. I don't like going into a car dealership clueless. I would rather have some inclination to what to expect, etc. If no one else has an idea, I will probably just email a dealer.

Save

RichardTrickle

Discussion Starter · #7 · May 17, 2001

I will update everyone on what I find, but I'm going out on vacation for a week tomorrow and then out of town for Memorial Day weekend. I don't know if I can squeeze in a visit to the dealer or not. I was thinking that it must be near 0% for it to be a deal, otherwise what would the point of having that lease option? BTW, I bought my first car, but now I am looking into possibly leasing my next and am not 100% clear on how residual values are decided. (Are they just decided btwn you and the dealer or is there a method to the madness?)

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IS300GTE

· #8 · May 17, 2001

when i inquired about a lease, they had a preset number that lexus expects the car to be worth in a preset amount of time, i don't think there is much room for negotiation, the whole entire reason i didn't even think about leasing, is the fact that you were paying around 150 a month in interest, and i'll be damned if i am going to get boned like that! if they do have this 0% interest thing, i would be very interested, i wonder how much you would have to put up for it though? 10,000 maybe 12,000 ?

Originally posted by RichardTrickle:
I will update everyone on what I find, but I'm going out on vacation for a week tomorrow and then out of town for Memorial Day weekend. I don't know if I can squeeze in a visit to the dealer or not. I was thinking that it must be near 0% for it to be a deal, otherwise what would the point of having that lease option? BTW, I bought my first car, but now I am looking into possibly leasing my next and am not 100% clear on how residual values are decided. (Are they just decided btwn you and the dealer or is there a method to the madness?)

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