When you click on links to various merchants on this site and make a purchase, this can result in this site earning a commission. Affiliate programs and affiliations include, but are not limited to, the eBay Partner Network.
Hi there, I am in Southern California and was going to cash buy out my Lease that just ended. I was sent this from the dealer when I called and asked what the process should be. I have read about them adding unnecessary fees but what do you think about these?
I was told to just go through LF to pay off instead of the dealer? Any thoughts or help would be appreciated. Thanks.
Some states require you to go through the dealer for buyout, but I don’t think CA is one of them. Definitely skip the dealer (and their $1k inspection fee). Call Lexus Financial and they should be able to help you.
I don't understand why an inspection is needed if you are buying it out, rather than returning it.
I found this article about it:
Now, if your only option is to head back to the dealership for financing, there are a few things to keep in mind to avoid getting scammed. Some dealerships will tell you that your car must undergo a mandatory inspection and service before they are able to sell the vehicle to you. They’ll cite “liability” reasons, but that doesn’t make a whole lot of sense considering you’re the one that has been driving the vehicle for the past few years.
In fact, no one knows the history of the vehicle better than you and you likely know it’s safe to drive. So why would a dealership insist you do an inspection anyway? Some shady dealerships want to charge you for the inspection and service, and they’ll likely try to force you into some unnecessary fixes before they will sell you the vehicle. Believe it or not, there are actually dealerships that refuse to let you buy out your lease until you pay for the inspection and service.
So how do you avoid being forced into an unnecessary inspection? Simply go to another dealership that doesn’t require the inspection and service. If the dealership you’re at is requiring the inspection before letting you finance the vehicle, your best option is to walk out the door and find one that is honest and willing to work with you.
This^^. That's insane that they will inspect the car that you already possess. You should tell them YOU will charge them your standard Purchase Fee of $1,495.99.
I'd also tell them you aren't paying for "Other". Explain *exactly* what it is, or waive it.
The others you just need to determine if they are fees the dealer is paying to other parties, or by state regulation....and if so, are they padding those fees. Anything they are paying themselves is fair for them to charge them back to you.
*Update* I just spoke with LF and told them I was going to purchase the vehicle and wanted to know the price after tax. The representative said there is no tax until you re-title it at the DMV. He said the cost is 23402.80 and to write them a check after I receive the paperwork. Wow, what a dealer scam. Yes, avoid Lexus Autonation for trying to do something like this. Once this is all paid for I am going to text the E-sales guy back and ask him some questions regarding these fees they try to tack on.
*Update* I just spoke with LF and told them I was going to purchase the vehicle and wanted to know the price after tax. The representative said there is no tax until you re-title it at the DMV. He said the cost is 23402.80 and to write them a check after I receive the paperwork. Wow, what a dealer scam. Yes, avoid Lexus Autonation for trying to do something like this. Once this is all paid for I am going to text the E-sales guy back and ask him some questions regarding these fees they try to tack on.
Not sure how it works in CA, but here in PA, when you go to the dealer, they handle titling your car, so you don't have to go to the DMV, but you pay the dealer licensing fees that you would have paid at the DMV (plus an upcharge--which is usually worth it so you don't have to stand in a 2 hour line @ DMV).
Why is your payoff different than their selling price? It looks like they want to buy the car out at the end of the lease themselves from Lexus Financial and then sell the car back to you for an increased price.
Why is your payoff different than their selling price? It looks like they want to buy the car out at the end of the lease themselves from Lexus Financial and then sell the car back to you for an increased price.
They added the "Lease buyout inspection" fee to the price which the guy said was to make sure the car was safe to drive. I'm glad they have a thoughtful service like this to make sure my car is still safe for me to buy. What a joke.
Not sure how it works in CA, but here in PA, when you go to the dealer, they handle titling your car, so you don't have to go to the DMV, but you pay the dealer licensing fees that you would have paid at the DMV (plus an upcharge--which is usually worth it so you don't have to stand in a 2 hour line @ DMV).
They added the "Lease buyout inspection" fee to the price which the guy said was to make sure the car was safe to drive. I'm glad they have a thoughtful service like this to make sure my car is still safe for me to buy. What a joke.
I'll put it this way. When I traded a leased car a few years ago, they didn't make me do an inspection. They just took the car. Seems like a similar scenario here.
I'll put it this way. When I traded a leased car a few years ago, they didn't make me do an inspection. They just took the car. Seems like a similar scenario here.
Ya, the dealer was trying to pull a fast one for sure. I went directly through LF and they only want the original price nothing added. Once I have the title in hand I will be contacting the dealer about why they try to add these extra fees.
Why bother? You know the answer. They want to make more money.
Well, I am not going to tell them I have already gone through LF when I reply. If he tries to tell me something along the lines of that fee is mandatory and I must pay it. It would be helpful to be able to put that on here to let others know what they are trying to do.
05-27-20, 10:08 AM
Lexus Lease buyout question
