Earliest Lease Renewal?
05-03-16, 05:30 AM
#1
Intermediate
Thread Starter
Earliest Lease Renewal?
Just wondering, on a typical 3 or 4 year lease. What's the earliest Lexus will let you renew your lease with a different car? I mean, without being upside down on the lease.
05-03-16, 07:43 AM
#2
Well,
You can lease a new car at anytime, but without being upside down? Usually LFS has a lease payment waiver program, currently they will waive your last 3 payments.
In some rare circumstances you can walk away early if you're not upside down in the car; many GX and LX lessees are in this position now.
You can lease a new car at anytime, but without being upside down? Usually LFS has a lease payment waiver program, currently they will waive your last 3 payments.
In some rare circumstances you can walk away early if you're not upside down in the car; many GX and LX lessees are in this position now.
05-03-16, 08:34 AM
#3
Lexus Champion
It's really a case by case basis. It all depends on the current value of your car versus what you owe (residual plus remaining payments).
I was able to get out of my IS lease about 10 months early. The trade in value and balance owed were basically even, so it was quite easy. We treated it as a trade-in rather than a lease return. The dealer paid it off with the trade value and I was able to slide right in to my GS lease with nothing out of pocket or negative equity to carry over.
I was able to get out of my IS lease about 10 months early. The trade in value and balance owed were basically even, so it was quite easy. We treated it as a trade-in rather than a lease return. The dealer paid it off with the trade value and I was able to slide right in to my GS lease with nothing out of pocket or negative equity to carry over.
05-03-16, 02:22 PM
#4
Intermediate
Thread Starter
It's really a case by case basis. It all depends on the current value of your car versus what you owe (residual plus remaining payments).
I was able to get out of my IS lease about 10 months early. The trade in value and balance owed were basically even, so it was quite easy. We treated it as a trade-in rather than a lease return. The dealer paid it off with the trade value and I was able to slide right in to my GS lease with nothing out of pocket or negative equity to carry over.
I was able to get out of my IS lease about 10 months early. The trade in value and balance owed were basically even, so it was quite easy. We treated it as a trade-in rather than a lease return. The dealer paid it off with the trade value and I was able to slide right in to my GS lease with nothing out of pocket or negative equity to carry over.
05-03-16, 03:48 PM
#5
I leased a 2014 is250 in February 2014 on a 27 month lease @499.99 a month. I traded in in September 2015 for a 2015 is250 fsport. Both times only $1500 out of pocket. Any things possible.
05-03-16, 05:04 PM
#6
Intermediate
Thread Starter
Ah awesome. But when you did all that, is it like getting a new car? Ran credit again and whatnot? Curious how the process worked.
05-03-16, 05:08 PM
#7
The pursuit of F
It's really a case by case basis. It all depends on the current value of your car versus what you owe (residual plus remaining payments).
I was able to get out of my IS lease about 10 months early. The trade in value and balance owed were basically even, so it was quite easy. We treated it as a trade-in rather than a lease return. The dealer paid it off with the trade value and I was able to slide right in to my GS lease with nothing out of pocket or negative equity to carry over.
I was able to get out of my IS lease about 10 months early. The trade in value and balance owed were basically even, so it was quite easy. We treated it as a trade-in rather than a lease return. The dealer paid it off with the trade value and I was able to slide right in to my GS lease with nothing out of pocket or negative equity to carry over.
It's what I've done too and it has paid off in the black since my mileage has been lower than expected.
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05-03-16, 05:15 PM
#8
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The moment you lease a car, the bank/financial institution typically buys it outright from the dealership. From the dealer's perceptive, the car is sold and they no longer have any vested interest in it. So, when you "turn in a lease early," what you're really doing is asking the new dealer (doesn't even have to be the same manufacturer) to buy the car back from you at the then-current buyout price (which your lender can give you at any time).
Ideally, you do this when you have built up some equity in the car, i.e. the then-current buyout price is less than the market value. This way, you can use the positive equity towards a new car, either in the form of a down payment, or to lower the cap cost on a new lease, etc.
If you're upside down on the lease, then you'll have to absorb that negative equity - typically this gets added to the price of the new car.
In any case, the new lease or purchase is a separate transaction, and they will run your credit, etc., just like they did the first time.
Last edited by kyoungjook; 05-04-16 at 09:14 AM.
05-04-16, 08:05 AM
#9
Lexus Champion
Ideally, you do this when you have built up some equity in the car, i.e. the then-current buyout price is greater than the market value. This way, you can use the positive equity towards a new car, either in the form of a down payment, or to lower the cap cost on a new lease, etc.
05-04-16, 09:15 AM
#10
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05-06-16, 08:26 PM
#11
05-06-16, 08:31 PM
#12
Some dealers (BMW) will do an early lease trade in if you get another car from them. Sometimes the manufacture will have these programs for 6 or 3 months before your lease is up.
05-23-16, 08:21 PM
#13
Intermediate
Thread Starter
Well, those interested, I actually got an e-mail saying Lexus wanted to buyout my 2015 IS 250 base, that I could lease a newer model, same price, and probably no out of pocket. I didn't make much of it.. Me and my wife went in and at the end I upgraded to a new 2016 IS 200t F Sport. Same monthly payments. And no down payment, well the deal was, instead of paying the car this month, just put that as your down. I was a year and 5 months into my lease.
I honestly just wanted to go with the F Sport. Love it so far.
I honestly just wanted to go with the F Sport. Love it so far.
02-05-23, 09:52 AM
#15
Intermediate
Thread Starter