Lexus RC Turbo: $5 More To Lease Than Toyota 86

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Senior Pricing Analyst

Alex Bernstein is the Senior Pricing Analyst for CarsDirect.com. Each month he studies immense volumes of pricing and incentives data in search of trends that are useful to car shoppers. In the process, he often breaks industry news stories -- his analyses and insights have been featured on websites such as Automotive News, The Detroit News, Autoblog, The Truth About Cars and The Car Connection.

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, Senior Pricing Analyst - October 24, 2017

Leasing can be a great way to get behind the wheel of a luxury car for less than you might think. This month, the Lexus RC 200t features a stellar deal now that it's been announced the updated RC 300 will take its place.

Interestingly, our analysis shows the over $44,000 luxury coupe is now just $5/month more to lease than a Toyota 86, a vehicle with less power, fewer amenities and a significantly lower MSRP to boot.

But how is that even possible when the difference in sticker price is over $16,000? The reason has to do with how the leases are structured.

Here's a look at what you can expect based on offers here in Los Angeles.

The $5 Upgrade

The 2017 Toyota 86 is advertised at $349 for 36 months with $1,999 due at signing. Its MSRP is $27,840 and comes with 12,000 miles of driving per year.

Effective Cost: $405/month

The 2017 Lexus RC 200t is listed at $299 for 36 months with $3,999 due at signing. That's based on an MSRP of $44,285 and includes an allowance of 10,000 miles per year.

Effective Cost: $410/month

Despite a $16,445 difference in MSRP, the Lexus is just $5/month more to lease. That's about what you'd pay for a pumpkin spice latte each month.

Here's a brief look at why that's the case.

Based on our analysis, Toyota's leasing calculation for the 86 assumes a 55% residual value and a money factor of 0.00114, roughly equivalent to an interest rate of 2.7% APR. There is no "lease cash" to help drive down the price.

On the flip side, the RC 200t assumes a 54% residual and money factor of 0.00001, the lowest rate Lexus is offering at the moment and basically equivalent to 0% APR. The car also benefits from $4,500 in lease cash.

With only a $5 difference in price, which would you choose for the money?

See our full roundup of the Best Lease Deals for more insights based on over 620 promotional offers.

, Senior Pricing Analyst

Alex Bernstein is the Senior Pricing Analyst for CarsDirect.com. Each month he studies immense volumes of pricing and incentives data in search of trends that are useful to car shoppers. In the process, he often breaks industry news stories -- his analyses and insights have been featured on websites such as Automotive News, The Detroit News, Autoblog, The Truth About Cars and The Car Connection.

Follow On: Google+ | Website