[antonio]

Does anybody know how to figure out residual values? It seems to be the one major factor in car leasing that you can't figure out until you are sitting in "the box" at the dealship. For somebody who likes to have all my "ducks in a row" before I show up at the dealer, this is frustrating.

Any ideas?

 

[LexusRexus]

mine is 21 something after 3 years... they claimed at the time it is non negotiable but who knows... bought mine aug 2000

 

[antonio]

There are only two possible scenarios here . . .

#1 There is one central authority for all residual values, and all banks/lease companies use these values. I have heard that this is the ALG (Automobile Lease Guide).

-OR-

#2 Each bank/leasing company makes up its own values.

If #1 is accurate, how do I get these numbers so I can be prepared when I get to the dealership. That way, I know what I am dealing with before I get all emotional and start drooling over a new IS300 on the showroom floor.

If #2 is accurate, there must be a way to "shop" for a good (a.k.a. high) residual value. But how? I tried this once at Union Bank (where I leased my wife's Durango) and they told me that they only released residual values to the dealers. They would not deal directly with the customer until after you signed the lease.

I think reality is closer to scenario #2. I know there is an organization called the ALG. I just don't think that all values are determined by them. I am sure the banks have discretion to set there own.

Does anybody know more about this? I would love to figure this out. Once you figure this stuff out, leases are not so mysterious, and you can really go into a dealer with the upper hand.

 

[LexusRexus]

why dont you just call your lexus dealership up and ask them. I mean there is no harm in that. and if they dont tell you then say thanks i will go shop at another lexus dealership. always let them know your goin to leave on a dime if you dont get what you want

 

[antonio]

I'll try, but I know what they'll say . . .

that I have to come in and pick a specific car and start the negotiation process that I hate. I swear, they will do anything to get you committed to a particular car and into "the box".

Plus, the only residual they will be able to quote is the one from Lexus Credit. What if there is a higher residual (and therefor lower lease payment) from another bank? The real question is, how do I get that info?

 

[LexusRexus]

hmm that is a tough question... just go in there and sit in the box and negotiate like your going to buy it... then once you find out all the numbers get up . walk out. and go to the bank down the street and say look this is what i got and can you beat it.! bam easy as pie..

 

[Firebird_EOU]

This value seems to change, I thought I read the lease deal was 60% residual, but when I talked to the dealer he said 52% off MSRP. Lower residual means higher monthly payment, but less to buy at the end. I'd just give them a call to see if there are any manf. lease prog, and if they are expecting any anytime soon. Check the Leases! topics for my recent lease.

 

[louiee_g]

i don't think residuals are a big dealer kept secret. they reveal the residual to you in newspaper ads. since residuals are indicated as a percentage, it shouldn't matter which IS you choose, all IS's have the same MSRP. so i don't see why dealers won't give you the residual over the phone or in the dealership...just give it a try. oh...my residual in April was 56% after 3 years.

 

[louiee_g]

i forgot to add, that's for 15K miles/year. the residual for 12K miles/year was 58%.

Originally posted by louiee_g:
i don't think residuals are a big dealer kept secret. they reveal the residual to you in newspaper ads. since residuals are indicated as a percentage, it shouldn't matter which IS you choose, all IS's have the same MSRP. so i don't see why dealers won't give you the residual over the phone or in the dealership...just give it a try. oh...my residual in April was 56% after 3 years.

 

[mjoo600]

Also, something to keep in mind is that the residuals continously slide as the model year progresses (assuming leasing periods and mileage/year are equal). {By residuals, I am talking about the residuals that Lexus/Toyota Financial Services sets/guesses when you lease.) Let's assume that for a 39 month lease on a 2001 was 59% when the car first came out in August 2000 or whenever it came out. It will be worth 59% in November of 2003. However, if you lease the same model year IS300 in let's say, March of 2001, then the residual will be lower (57% or around there), because by the time the 39 month period is over it will be June of 2004. I not 100% certain, but I'm sure someone on this forum who has connections to Lexus (if I remember correctly, I think scoot's dad was a manager at Lexus) could verify this.

 

[Firebird_EOU]

I think so, because my end of the year model lease (end of July) has 52% residual value for 15k miles, 54% for 12k.