mdk77

Thinking about buying out my lease at the end of the month (residual much less than KBB). For those who have bought out their leases, what fees can I expect to pay in addition to the cost of the car (residual)? I assume sales tax obviously but will there be any hidden dealer fees?

birador

iTrader: (10)

normally its indicated or written on the back of your lease agreement,same as buying a car the only difference is like what you said is much lower compare to the kbb or nada because you only paying what is the actual residual value of the car without commission and additional charges that will profit the dealer..aside from the taxes and fees you have to pay the purchase option fee which is also indicated on the agreement plus doc fee and license/tags coz you have to surrender your old tag and get a new tag under your name and the other options like getting a warranty and extras that is only up to you,but the dealer or the business manager will offer and convince you to get this thing and its up to you...piece of advice,do research first on financing specially banks i.e. bank of america or chase and alike or credit unoin,they might have a nice apr compare to dealer financing and do use calculators like the one found at cars.com website,just put all the numbers and you gonna have at least estimate what are you going to pay every month so if you're ready to purchase the car,you know where to go.hope this will help and good luck....

mdk77

I made some calls and confirmed the following:

1) Lexus Financial cannot deal with me directly and can only provide loans through the dealer specifically.

2) I called the dealer and besides the buy out option price in the contract, taxes, and registration, there is a $150 dealer fee and that is it. I don't need to bring the car in (and I won't to avoid a possible "inspectiion fee").

I do not see a purchase/option fee in my contract.

I have be approved from Chase for a loan with a low rate just in case the dealer and LFS tries to roll me on their rates.

While buying out a lease usually means paying more for the car in its entirity, I have extremely low miles on my car and right now it is retailing for 30K on the dealer lots used and my buy out is 20K.

I am ready!

birador

iTrader: (10)

that's it,for sure you get the best price for the your car..the 150 that you mention is the purchase option fee,they just put on different word.

AlphaMotor

iTrader: (5)

Which model is it? Typically when u buyout the lease, the brand will give u the Certified Preowned Rate that is offered for that particular vehicle at that point in time. This rate could be as low as .9%-3.9% if u qualify.

mdk77

Starfire pearl 2008 AWD - hoping LFS will give me a good rate. The LFS rep says I qualifiy for Lexus loyalty program so not sure what that means.Chase gave me 3.5. - .9 APR would be sweet.

AlphaMotor

iTrader: (5)

My good friend is the finance director for McGrath Lexus in Westmont. He will let me know what the best option is for you.

mdk77

great, thanks.

AlphaMotor

iTrader: (5)

Confirmed 2.55% with A+ credit. I hope this helps!

mdk77

yes, thank you. I may have Chase match it and then see if LFS will go lower. Worth a shot.

mdk77

Ok I did the buy out today. Here's the run down:

The total included the residual, taxes, doc fee, and registration. No other hidden costs.

I called the dealership twice this week and purposely spoke to two different people about the process to make sure the stories lined up. I called LFS twice and asked about the buy out process as well to make sure that aligned with what the dealer said. I also called Chase and haggled a 3.1 APR.

I brought the pre-approved loan document from Chase with me. When I sat down with the business manager he tells me that Lexus financial can do 4.25% APR at the lowest. I showed him the Chase APR and he said "well we normally don't do this but I can probably match it". I knew they would try to roll me on APR! I then pulled up a advertisement from their website - 2.9% APR on certified used IS250's. I showed him and he said "well that is only for CPOs and your car is consider used since we haven't done our inspection". Bull**** - but that is fine.

They dropped the LFS APR to 3.1%. I did have my car there in the vistor lot and they asked to "see it" for the VIN and mileage. I told them the VIN is on my insurance card and license registration card - both of which they had made copies of. I also wrote the mileage and signed the odometer statement. They claimed it was to "verify the VIN". Again bull**** - they were probably checking out the mileage to make sure I wasn't lying.

Anyways, I walked away with a IS250 AWD 2008 with 17,000 miles for about 20K. I am happy and finally out from under that lease!

Moral of the story - do your homework, get comptitive loan rates from other banks before walking in...

AlphaMotor

iTrader: (5)

Way da hustle bro!

PurduePete

Good work and Congrats!