thanks for this info - questions:

1) if the dealer purchases it, won't the price they sell at likely be higher than the residual? they still want their pound of flesh.

2) any idea of wholesale discount over msrp? any dealer i use would also want their finders fee.

 

^ +1

I've leased cars for years and I've never seen a manufacturer "deal" on the buyout. You and Lexus entered into a contract when you leased, and in that contract they specified the amount they will pay for the car at lease end. It's important to the whole lease process that they stick by the contract.

And the dealer has no part in the process after the "sale". They get their rake-off and then it's between you and Lexus Financial after that. All the dealer does is handle repairs and maintenance, and they actually contract with Lexus to be able to do that. They have no authority to deal on buyouts, and I don't think Lexus would even use them as a mouthpiece to pass along offers, if any.

If someone can show me evidence this kind of thing actually happens, I'll be happy to eat my words.

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now to be fair, i do know someone who was able to negotiate the buyout price for his bmw before the lease return and bought out the car for a lower price. but on lexus, i haven't seen it done yet so far, i would love to see one

 

My family owns a series of dealerships - I've heard of customers negotiating buyouts with other brands, but it has always been the customer dealing with the finance company directly.

I once leased a Lincoln and had a relative (dealer) follow it to auction (Ford Motor Company's agreement with the dealer states it must be done this way) and got it at wholesale, plus auction fee. There's no guarantee I would have been able to get it, it was a hassle and not something I'd ever do again.

I suppose Lexus could handle it differently, but I doubt it.

 

I've never heard of it before with ANY brand, but if it happened, I'm eating my words. *chomp* *chomp*

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The only lease turn-in vehicles that make it to auction are usually less than pristine. The nice ones are usually purchased by the dealer where it was turned in at a price determined by Lexus Financial. If they don't want it, other Lexus dealers can claim it at that price. If unclaimed, it Lexus Financial has them picked up and they go to auction.

 

hahhaa nah, topic here is lexus so we are good

 

1) Dealer doesn't pay residual. They have a lower price which they can purchase the car for.

2) The top bid wins the auction. You could try finding an auto broker, who will go the auction and win the car for you. They normally charge very little money and they never get added to the title of the car (act like a normal dealer). This doesn't artificially bump up the number of owners on the car.