Flow Lexus Complaint - Watch What you Sign

Review by GatorsJF on 2010-05-07
GREENSBORO, NORTH CAROLINA -- I leased a Lexus from Flow. The sales manager said I needed to put some money down. I put 1500.00 down. After reviewing the paperwork at home I noticed he put a 1000.00 of the money toward capital. Basically putting money down on the vehicle purchase price to lower the payments however this is a LEASE and now I will never see my 1500.00. I asked Lexus finance if that is a deposit and they said NO. I know I should understand what I’m signing. However this is a lesson learned and I will never ever purchase a vehicle from Flow Lexus. I thought that shady stuff only happens at those fly by night dealerships but now I know it happens at the big Dealers as well
Comments:3 Replies - Latest reply on 2010-05-07
Posted by MDSasquatch on 2010-05-07:
I am by no means an expert at auto finance, but I have seen a lot of commercials on TV and most leases seem to require money due at signing; probably has something to do with the dealership needing to make some sort of profit??
Posted by Anonymous on 2010-05-07:
An automobile lease and purchase loan are mathematically the same with the only difference being the 'Future Value' target or in other words the amount owed at the end of the amortization period.

On a purchase loan you answer the question what payment is needed given a certain interest rate in order to arrive at a zero balance owed at the end of the loan period.

On a lease you answer the question what payment is needed given a certain interest rate in order to arrive at the agreed upon residual value owed at the end of the loan period (completion of the lease).

The mathematical formula used is identical. My point is a lease is nothing more than a loan. That being the case applying the down payment to the purchase price only benefits you the buyer as it reduces your monthly payment and reduces the amount of finance charges you'll pay just as it does with a purchase loan.

Auto leases can be really confusing if you look at them as some sort of rent but if you see them for what they are, a loan, then it can make it easier to understand.

Nobody likes to feel ripped off but on this one I think you're okay. Good luck!

Posted by MDSasquatch on 2010-05-07:
Hey Stew, I wanted to rate your comment as helpful, but when I click on the "Rate Comment", I was only given two options (Inappropriate and SPAM).

Either way - NICE COMMENT

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