Hi guys,

I have a question on 2015 I leased a 2015 IS F sport 3 series, first lease ever, at that time I wanted to try it out and check the car as also was my first Lexus, my lease expires on Nov 2018, but at this point I really like the car, it only has 20 thousand kms, also the car itself it's awesome and I want to keep it, my question is should I wait for the lease to come to and end or should I try to finance the car thru LF, as I said earlier this is my first lease and I'm trying to figure out what's the best option for me now.

For reference I'm in Vancouver Canada, I pay 400$ a month and my lease ends on Nov 2018, the buy out at that moment will be 23,000$ CAD.

Thanks in advance for your time and help, I know there are some experts on this field and I'm trying to educate my self for future references.

Cheers

 

If you're going to finance, I suggest shopping around at your local credit unions. They're going to give you better rates than LF. Also, this is probably common sense but if the person who sold you the car contacts you about getting your car serviced/inspected, it's not necessary. After I called Toyota (cause their service dept is much nicer) for my lease buyout papers, the salesman started emailing me how he NEEDS me to bring my vehicle back to the dealership for a safety inspection and there's a fee of $287. Oh and right, they wanted ME to PAY FOR IT and they were not willing to waive the fee for a service they're requesting. Hah, that's some cute BS. Seriously, go to a credit union.

 

Thanks, for the heads up, I'll try to get away from that cute payment lol!!

Thanks for the feedback!

 

thanks a lot I appreciate the input, I'm already working on finding the cheapest interest rate available.

thanks again!!

 

^^^^ this.

I would also suggest trying to negotiate the residual value if you decide on buying it out. Go on KBB or any site that gives you the current value of the vehicle and if your lease buyout price is less than the current value of the vehicle, it shows you have equity in the car. If the residual is higher than the current value (which it may be because they could've inflated the residual when you got it to help lower your monthly payments and get you in the car) then you know that you'll be paying more for the car than the current market value.

Also do your research to get the lowest interest rate beforehand, so if they do lower your residual you'll be ready to finance without having to start looking after.

 

I'd talk to the dealer and a bank about what you want to do and see what the scenarios are.

When you lease a car, there is a payoff amount you have to cover (the whole point of a lease is that it's structured so that the payoff and the car's value are equal at the end of the lease, which is why you can hand it back and walk away). Paying it off early means you will have to cover a higher payoff than you would in Nov. I don't think in your scenario the value of the car plays a role. It only plays a role if you try to trade out of it - in that case you'd have to cover the difference between the payoff and the car value. But if you just want to buy it, you'll have to cover the current payoff with the loan.

But get the numbers first and I think the best choice will be obvious.

 

Thank you all this is very new for me being as my first lease, I thought you couldn't negotiate the residual? I'll have to talk to my salesman to understand a little more about this transaction.

Thank you all again!!

 

Yes you can negotiate it. Call the finance manager at the dealership and see if you can negotiate it with him. That's why I said find out the current value of the vehicle so you can use it to your advantage during the process. GL and keep us informed.

 

The only way you can negotiate the lease end value amount is if you are getting into a new vehicle, not if you are buying it out. The dealership doesn't care if you buy out your lease or not (they would actually prefer you return it and buy a new one!). If you don't want to pay the lease end value, the dealership will get the car back and have a great car to sell on their lot if they want to keep it. If they don't want it, the vehicle simply goes back to Lexus. Going back to negotiating on a lease end value, if your buyout is $23,000, yet the vehicle's wholesale price is worth more, that is when you can negotiate with them and ask the dealership to pay more for your vehicle if you are looking to get into a new Lexus. If wholesale price is $25,000 for example, you just made $2,000 in equity that goes toward your next lease. Hope this information helps.

 

Some car companies do allow you to negotiate on a lease end buyout. I don't know where you got your information from, but I did a quick Google search for you.

Moreover, leasing companies have to resell their returned cars either directly to a dealer or through an auction. Often they will negotiate a buyout price that's more favorable to you to avoid that hassle and expense.

Be aware that many lease companies have “residual insurance” that makes up the difference between wholesale auction price and contract residual value. So, they have no reason to want to negotiate with you on the purchase price since they’ll get the full price anyway. There’s no way for us consumers to know, however, whether a lease company has the insurance. They’ll either negotiate with you or they won’t

I don't know how Lexus deals with it, that's why I told him to get a hold of the finance manager and ask them. Wont hurt him if he asks, they either work with him or not. If anyone has dealt with LFS maybe they can give him more info.

 

LFS does not alllow you to negotiate the buyout price. What you agreed for on the contract is what you pay.

 

I don't know how they do it in Canada, but here in AZ, the dealers charge an arm and a leg just in documentation fees. My dealership told me I had to go through them when I wanted to buy out my lease. Don't believe them if you get told that. They just wanted to get more $$ from me. I spoke with LFS directly, and sent them my pay off, and they sent me the title.

 

If you google "Heffner Lexus" it's a dealer in Ontario, so he probably got the information from his dealership where he works since it all sounds on point.

 

ahh I see, anyways someone else on the thread also said LFS doesn't negotiate it so I guess that's the end of that option lol.

 

Based on my personal experience, you cannot negotiate the buyout price if your lease is with Lexus Financial. If you are not buying another Lexus, the dealer will not be involved in the lease termination process. Be careful about the buyout price. Lexus often inflates the residual value to make the lease price more attractive. If they did this on your lease, your buyout will be higher than the value of your used car. Good luck!
Steve