Hi All, I was preapproved online with Lexus Financial, which was so to my surprised, for a 2007 IS250. However, Here are the terms:

Type of Vehicle LEXUS IS 250 LUXURY SPORT SEDAN AUTO
Pre-approved Base Monthly Amount $644.07
Contract Type Lease
Term (Months) 36


Now, can anybody enlighten me on what the pre-approved base monthly amount means? Is this saying my payments will be at a minimum of $644? How was that even determined, based on the MSRP price? When I fill out the app I only put that I will put down 1000 as a down payment. I do have a working car, but I didn't plan on trading it in (not for a lease anyway).


The thing is, my company has a discount program for 5% over dealer invoice. I'm not even sure that can be applied to a lease or not. At this point, I don't NEED a car, and so if the terms aren't going to be favorable, then I can walk away.

Please help!

Why ever would you apply if you don't need a vehicle?

the base payment is before sales tax is calculated.

The dealer to whom you would be referred will have the particulars.

And

your particular plan will be applicable.

Well, my car is over 10 years old but it's in a good working state as of today. I do feel like the end is coming, and I do like the IS250. However, for that type of lease payment, I might as well buy. And that was what I meant, that I didn't need another car at the moment, and I feel like still have time to explore other options. I guess I'll just take myself to the dealership and get all the specifics.

You don't have a problem driving a 10 year old car as long as it still works, so it seems almost certain you'd want to keep the Lexus more than 3 years. So, buy it instead.

Your discount can be applied to a lease. Always negotiate the price of the car first, then deal with financing-- including the choice of whether to buy or lease. The figure quoted is probably based on MSRP.

Thanks mk_378!

I'll keep everyone updated...

This is a very high lease payment for this model. Dig deep into the numbers as far as neg. price, residual, money factor, etc. You could get a 36 month lease for <500/month on this model with the lease deals that Lexus has right now.