mikedozz

Hi Guys, i can't remember if I asked this questions awhile ago, but does anyone in here have experience buying out there Lexus. I have been on the BMW forums and I know alot of people on there buyout there cars and the dealers work with them on the buyout, its not set in stone. I know the 550i's buyouts off a 3 year lease are around 40K, but the market is around 35-36, so the dealers are adjusting. Any experiences with Lexus doing this.

rominl

iTrader: (4)

i have asked this a few times before, but seems like lexus does not negotiate on the buyout price. either the price agreed or you return it.

but then of course, i have never gone through it yet

mikedozz

Good point, i guess you can always give it back and call there bluff, then go in and try to buy if from them, you will know everything about the car because it was yours? I would think they would rather sell it right there then rather than posting it on a site and maybe waiting 6 months before they can sell.

rominl

iTrader: (4)

i think it also depends on how "off" they are in predicting the residuals of the car. you have to understand why bmw is doing that. that's due to the fact that when they are leasing cars, they set unrealistically high residuals. what that means is they are saying 3 yrs later the car is worth 60%, but fact is 3 yrs later the car is worth 40%.

they use that tactic to lower the lease payment to attract customers. but the downfall is 3 yrs later no one wants to buyout their cars. they'd rather do what you mentioned, return the car and buy it again. that's where dealerships are willing to negotiate. that's exactly what happened when i leased my m3, the finance manager basically told me do NOT buy the car when the lease ends, makes no sense at all.

historically speaking, lexus has been better on setting the residuals. that's part of the reason why their lease payments are higher, coz' the residuals are lower (realistic). so after 3 yrs, if you don't buy out the car, they can give the car xxx points check and make it CPO, and then sell it for the residual price or even a bit higher without much trouble.

now of course, given the recent economy situation, things might be a bit different when you return your car. so you will need to see what the market price is at the time to make good judgement

Modeler

Exactly! All the BMW leases are heavily subsidized via inflated residuals. It's not quite as bad as 40% vs 60% because BMWs have very high resale value, but they are inflated by at least 5%.

mikedozz

It makes sense now.. thanks guys

COGF16

iTrader: (1)

My 06 GS lease ends next week and I am still mulling over my options. My residual is $24,999 and KBB values the car around $21K or so. I pushed Lexus Financial and the dealer pretty hard about coming off the resid but they didn't move. Still thinking about a new GS. Last month I got them to $9500 off for a new '08 and about $4500 off for an '09 (sticker price) Would probably buy my car out if they agreed to $22 or $23K.

Thoughts?

mikedozz

I guess I got lucky, i leased an 08 and my buyout is $21,400. Fully loaded with Nav, no ML. Its a 48month lease, was yours?

passnu2

iTrader: (33)

I believe if the dealer buys it they get it at a discount compared to what you would. I am not 100% sure but I recall my buddy telling me this and he owns the Lexus and Acura dealers close to me. This may be state specific also. I used to lease the cars for a short time and trade them in and if I purchased the car outright it was more then what he would buy it back for? Just ask your dealer and see what they say, cant hurt to ask and may save you some $$ if you want to purchase it outright.

The other thing to pay attn to is if you have to pay taxes on the car again. In IL you do and stops many from buying the cars.

I would think that many of these companies would be more prone to work so they dont get stuck with all these lease vehicles and you start to see the financial companies going like we did due to the MTG industry. I think this is going to be the next bad thing to hit the banking industry.

COGF16

iTrader: (1)

48 month lease same options as yours. I unfortunately paid top dollar for mine back in Feb of '05. One of the first 3GS's out there. I think I will inquire once more with dealer and Lexus Financial. Won't pay $25K for a car worth 22K