Fizzboy7

Did a search and a few things came up. But nothing specific as to what I'm wondering.

My lease ends in February and I'd like to start making payments to own the car. Lexus gives me this option, but I am curious if it's all done through the dealer with his own financing and negotiations, or through Lexus Financial (over the phone) and whatever program they are offering. I called LFS and they basically told me the finance guy at the dealer is the one who handles all this. When I bought out my Audi lease, I did it through Audi over the phone- not at a dealer. So my fear is if it's handled at the dealer, he is going to want to make money somewhere in the deal for his time, etc. I don't want to pay anything extra here, just have a smooth transition from lease to buy with whatever Lexus is offering for their APR program. So that is question one.

Question two is what the APR could be. I get all these ads and emails from local Lexus dealers stating they are blowing out their certified used Lexus models with a special low APR of 1.9 or 2.9%. This is a very low rate and one I wish to get my hands on for my car. So, is there a way to take my car to the dealer, have them certify it (I guess that means they buy it?), and then me buy it back from them using their low advertised APR? I am not after having my car certified, but wonder if this is a cheaper way to go if it comes with the very low APR. My main goal is to not have my lease payment go up nor put any money down. I did this with my Audi and so did my dad with his Acura, so I know it's possible if the rates work out. I also don't mind a long term. I know much of this can be answered at the dealer, but I'd like to get some unbiased opinions and ammunition before walking in.

Comments and help are welcomed...

grondie

I don't see why not, but they of course will hit you with the charge for certifying it. FWIW, when we bought out the lease on our 02 IS300, we had to do it through the dealer and ended up with a great APR and just a small doc charge.

PS: Those 20 Cylinders are fuel hogs

Fizzboy7

Thanks for the info. I'm anxious to hear what the dealer has to offer, although I hope his fees won't get in the way.

LOL, oh yeah... should be rebuilt into a 16 cyclinder without the broken crankshaft problem. hehe

Dunkin1222

I don't see how they can force you to do the financing at the dealer. I'm buying out of mine in August and haven't seen or heard that I'll have to

grondie

Nah, they don't force you to go through LFS. He's looking to take advantage of the low interest rates currently being offered.

If you go through another bank, you may still need to go to the dealer to fill out the appropriate paper work since it's basically a new sale.

Micaiah

Agreed. But in addition try to find out the difference between a personal loan vs a vehicle purchase loan. Percentage rates and terms may be different. You might want to check into a credit union as well. Sometimes they have better rates. Just pay the car off to the dealership and from there you just have to deal with your bank or your credit union.

Dunkin1222

That's what I plan to do. Credit unions are the way to go. I'd pay a 1% higher to go to credit union vs dealer just so they (dealer) can't make anymore money off me.

Good luck Fizz

09lexus250

they cant change the price on you at the end of your lease. when you started the lease you signed a paper that stated the aproximate value of the car would be $xx,xxx. and at the end of the lease that is what your buy out is or otherwise known as residual value. thats also how they come up with your payment amount the difference from the price negotiated on the car and the expceted value at the end of the lease.

as far as fincancing you would not qualify for dealer special financing, you would get regular apr on a auto loan on a 3-4 year old car you would be somewhere around 4-10% based on credit.

RoNx777

+1 ^^^

I was going to buy out my VW GTI after the lease term expired, but the residual value plus the amount I already payed toward the lease would've ended costing me about $5K over MSRP vs purchasing from the get go (that is w/o factoring the high interest rate). That is how I ended up with my IS.

Fizzboy7

Thanks for the responses. I know they can't change the price of what my lease contract says my car is worth at the end. But I was thinking they may have some higher finance rate or extra fee to make an extra dollar or two for their time. It would strike me odd for a dealer to offer his time and service free of charge.