End of Lease - Should I buy it?
12-28-09, 06:52 PM
#1
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End of Lease - Should I buy it?
Hi, this is my first time on here, and I'm hoping to get some feedback as to my RX350.
It's a 2007 RX350 AWD, with the NAV and premium? and all that comes in that trim level. I did not get the Mark Levinson Radio. It's got about 27,500 miles, and my residual is $26,052.42. Color is Navy with beige interior. It was never in an real accident, except for parking lot scape which is being repaired to like new condition at a Lexus approved facility.
Car has been very good to me. Has been extremely dependable and no issues I keep reading about, that's why I'm thinking of buying it. Only thing that happened was my mom left the back seat lights on when we went on a 7 day cruise, and it would not start when we came back, and the electric front passenger window controller also stopped working. All was fixed under warranty. And I think that was due to her and not the car's fault.
Anyway, any advise or response is appreciated in advance. If you bought a similar car recently, I would love to hear about how much you paid, and how many miles it had. I tried to negociate a better price, but they said since it's a close end lease, the price is set. I did some research on the internet, and it seems like it is a good deal, but I don't know how close those are to the real prices.
Thanks for your help!
It's a 2007 RX350 AWD, with the NAV and premium? and all that comes in that trim level. I did not get the Mark Levinson Radio. It's got about 27,500 miles, and my residual is $26,052.42. Color is Navy with beige interior. It was never in an real accident, except for parking lot scape which is being repaired to like new condition at a Lexus approved facility.
Car has been very good to me. Has been extremely dependable and no issues I keep reading about, that's why I'm thinking of buying it. Only thing that happened was my mom left the back seat lights on when we went on a 7 day cruise, and it would not start when we came back, and the electric front passenger window controller also stopped working. All was fixed under warranty. And I think that was due to her and not the car's fault.
Anyway, any advise or response is appreciated in advance. If you bought a similar car recently, I would love to hear about how much you paid, and how many miles it had. I tried to negociate a better price, but they said since it's a close end lease, the price is set. I did some research on the internet, and it seems like it is a good deal, but I don't know how close those are to the real prices.
Thanks for your help!
12-28-09, 07:11 PM
#2
I think you have low miles and it appears you a have $45,000 vehicle when new. I also think if you were shopping for a used RX with low miles like that the price would be very close to the $26,000 the dealer is willing to sell you the vehicle for. Also, look at it this way. You have driven the vehicle since new and know how it was maintained and driven. To reassure your self on the price, go to www.kbb.com and you can see what the values are.
12-28-09, 11:56 PM
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Thanks for bringing that up. I did consider leasing another, as my dealer loaned me a 2010 RX350 to try out when I took it in for an oil change. I did like it a lot...especially the new mouse navigation control, the newer bluetooth which instantly plays the music from my iphone, an AUX input jack, and of course the new air conditioned seats! (since I'm in Southern California). Wondering if that is enough reason to spring for a new one which cost probably about $15,000 more.
Here are the reasons I'm swaying to buying the used one:
1) New car is bigger and heavier, and old car seems to be more peppy.
2) The thing that drove me to go with the old model in the first place was all the space of the open console design, where I can put a real tissue box on the floor, and plenty of room for other stuff.
3) first year of production is a concern for me. I read some people find the seats uncomfortable, lesser quality leather in seats, front bumper loose, etc. Also, cigarette and ipod jack in weird location.
4) Leasing this last car was a departure for me in the first place. This is also the first time I'm financing a car. I paid cash before that and tend to keep them a long time. My previous car was a 2000 Mercedes ML320, coming up on 10 years, and I still own, it. Before that, I had a 1989 Mercedes 300E which I owned for 13 years until my husband totalled it! This Japanese car is a first for me, and I like it...faster than the other 2 cars, and a lot cheaper to maintain. I figure since I still see a ton of the first generation on the road, it will have good resale value down the road. Once I pay it off, I can still keep it as a spare car, or sell it then and buy or lease a new car. Whereas if I leased another car....my car payments may never end.
I'm just trying to get an idea if it is a good deal, or if I should turn it in and shop for a better deal. I did check out blue book, but they are not always accurate either. So I thought I would try and get some real world feedback. BTW, I failed to mention I'm in Southern California. Don't know if car values vary from state to state or region to region or not.
Sorry for the long reply. Don't know if I'm making sense, but I really appreciate your inputs.
Thank you!
Here are the reasons I'm swaying to buying the used one:
1) New car is bigger and heavier, and old car seems to be more peppy.
2) The thing that drove me to go with the old model in the first place was all the space of the open console design, where I can put a real tissue box on the floor, and plenty of room for other stuff.
3) first year of production is a concern for me. I read some people find the seats uncomfortable, lesser quality leather in seats, front bumper loose, etc. Also, cigarette and ipod jack in weird location.
4) Leasing this last car was a departure for me in the first place. This is also the first time I'm financing a car. I paid cash before that and tend to keep them a long time. My previous car was a 2000 Mercedes ML320, coming up on 10 years, and I still own, it. Before that, I had a 1989 Mercedes 300E which I owned for 13 years until my husband totalled it! This Japanese car is a first for me, and I like it...faster than the other 2 cars, and a lot cheaper to maintain. I figure since I still see a ton of the first generation on the road, it will have good resale value down the road. Once I pay it off, I can still keep it as a spare car, or sell it then and buy or lease a new car. Whereas if I leased another car....my car payments may never end.
I'm just trying to get an idea if it is a good deal, or if I should turn it in and shop for a better deal. I did check out blue book, but they are not always accurate either. So I thought I would try and get some real world feedback. BTW, I failed to mention I'm in Southern California. Don't know if car values vary from state to state or region to region or not.
Sorry for the long reply. Don't know if I'm making sense, but I really appreciate your inputs.
Thank you!
12-29-09, 06:20 AM
#5
Thanks for bringing that up. I did consider leasing another, as my dealer loaned me a 2010 RX350 to try out when I took it in for an oil change. I did like it a lot...especially the new mouse navigation control, the newer bluetooth which instantly plays the music from my iphone, an AUX input jack, and of course the new air conditioned seats! (since I'm in Southern California). Wondering if that is enough reason to spring for a new one which cost probably about $15,000 more.
Here are the reasons I'm swaying to buying the used one:
1) New car is bigger and heavier, and old car seems to be more peppy.
2) The thing that drove me to go with the old model in the first place was all the space of the open console design, where I can put a real tissue box on the floor, and plenty of room for other stuff.
3) first year of production is a concern for me. I read some people find the seats uncomfortable, lesser quality leather in seats, front bumper loose, etc. Also, cigarette and ipod jack in weird location.
4) Leasing this last car was a departure for me in the first place. This is also the first time I'm financing a car. I paid cash before that and tend to keep them a long time. My previous car was a 2000 Mercedes ML320, coming up on 10 years, and I still own, it. Before that, I had a 1989 Mercedes 300E which I owned for 13 years until my husband totalled it! This Japanese car is a first for me, and I like it...faster than the other 2 cars, and a lot cheaper to maintain. I figure since I still see a ton of the first generation on the road, it will have good resale value down the road. Once I pay it off, I can still keep it as a spare car, or sell it then and buy or lease a new car. Whereas if I leased another car....my car payments may never end.
I'm just trying to get an idea if it is a good deal, or if I should turn it in and shop for a better deal. I did check out blue book, but they are not always accurate either. So I thought I would try and get some real world feedback. BTW, I failed to mention I'm in Southern California. Don't know if car values vary from state to state or region to region or not.
Sorry for the long reply. Don't know if I'm making sense, but I really appreciate your inputs.
Thank you!
Here are the reasons I'm swaying to buying the used one:
1) New car is bigger and heavier, and old car seems to be more peppy.
2) The thing that drove me to go with the old model in the first place was all the space of the open console design, where I can put a real tissue box on the floor, and plenty of room for other stuff.
3) first year of production is a concern for me. I read some people find the seats uncomfortable, lesser quality leather in seats, front bumper loose, etc. Also, cigarette and ipod jack in weird location.
4) Leasing this last car was a departure for me in the first place. This is also the first time I'm financing a car. I paid cash before that and tend to keep them a long time. My previous car was a 2000 Mercedes ML320, coming up on 10 years, and I still own, it. Before that, I had a 1989 Mercedes 300E which I owned for 13 years until my husband totalled it! This Japanese car is a first for me, and I like it...faster than the other 2 cars, and a lot cheaper to maintain. I figure since I still see a ton of the first generation on the road, it will have good resale value down the road. Once I pay it off, I can still keep it as a spare car, or sell it then and buy or lease a new car. Whereas if I leased another car....my car payments may never end.
I'm just trying to get an idea if it is a good deal, or if I should turn it in and shop for a better deal. I did check out blue book, but they are not always accurate either. So I thought I would try and get some real world feedback. BTW, I failed to mention I'm in Southern California. Don't know if car values vary from state to state or region to region or not.
Sorry for the long reply. Don't know if I'm making sense, but I really appreciate your inputs.
Thank you!
12-29-09, 08:24 AM
#6
Thanks for bringing that up. I did consider leasing another, as my dealer loaned me a 2010 RX350 to try out when I took it in for an oil change. I did like it a lot...especially the new mouse navigation control, the newer bluetooth which instantly plays the music from my iphone, an AUX input jack, and of course the new air conditioned seats! (since I'm in Southern California). Wondering if that is enough reason to spring for a new one which cost probably about $15,000 more.
Here are the reasons I'm swaying to buying the used one:
1) New car is bigger and heavier, and old car seems to be more peppy.
2) The thing that drove me to go with the old model in the first place was all the space of the open console design, where I can put a real tissue box on the floor, and plenty of room for other stuff.
3) first year of production is a concern for me. I read some people find the seats uncomfortable, lesser quality leather in seats, front bumper loose, etc. Also, cigarette and ipod jack in weird location.
4) Leasing this last car was a departure for me in the first place. This is also the first time I'm financing a car. I paid cash before that and tend to keep them a long time. My previous car was a 2000 Mercedes ML320, coming up on 10 years, and I still own, it. Before that, I had a 1989 Mercedes 300E which I owned for 13 years until my husband totalled it! This Japanese car is a first for me, and I like it...faster than the other 2 cars, and a lot cheaper to maintain. I figure since I still see a ton of the first generation on the road, it will have good resale value down the road. Once I pay it off, I can still keep it as a spare car, or sell it then and buy or lease a new car. Whereas if I leased another car....my car payments may never end.
I'm just trying to get an idea if it is a good deal, or if I should turn it in and shop for a better deal. I did check out blue book, but they are not always accurate either. So I thought I would try and get some real world feedback. BTW, I failed to mention I'm in Southern California. Don't know if car values vary from state to state or region to region or not.
Sorry for the long reply. Don't know if I'm making sense, but I really appreciate your inputs.
Thank you!
Here are the reasons I'm swaying to buying the used one:
1) New car is bigger and heavier, and old car seems to be more peppy.
2) The thing that drove me to go with the old model in the first place was all the space of the open console design, where I can put a real tissue box on the floor, and plenty of room for other stuff.
3) first year of production is a concern for me. I read some people find the seats uncomfortable, lesser quality leather in seats, front bumper loose, etc. Also, cigarette and ipod jack in weird location.
4) Leasing this last car was a departure for me in the first place. This is also the first time I'm financing a car. I paid cash before that and tend to keep them a long time. My previous car was a 2000 Mercedes ML320, coming up on 10 years, and I still own, it. Before that, I had a 1989 Mercedes 300E which I owned for 13 years until my husband totalled it! This Japanese car is a first for me, and I like it...faster than the other 2 cars, and a lot cheaper to maintain. I figure since I still see a ton of the first generation on the road, it will have good resale value down the road. Once I pay it off, I can still keep it as a spare car, or sell it then and buy or lease a new car. Whereas if I leased another car....my car payments may never end.
I'm just trying to get an idea if it is a good deal, or if I should turn it in and shop for a better deal. I did check out blue book, but they are not always accurate either. So I thought I would try and get some real world feedback. BTW, I failed to mention I'm in Southern California. Don't know if car values vary from state to state or region to region or not.
Sorry for the long reply. Don't know if I'm making sense, but I really appreciate your inputs.
Thank you!
Good Luck!!
Anyway, its nice to have this problem
12-29-09, 09:42 AM
#7
Moderator
^^ If I understand it right, the question here is, why would any one lease and then at the end buy the vehicle?
Now if we fast forward to current time, narrow down the options and read the post as ... a choice between buying a used vehicle from open market vs buying a lease return that was leased by wei2go.
I am in favor of buying a vehicle that you like and know the the history of.
Salim
Now if we fast forward to current time, narrow down the options and read the post as ... a choice between buying a used vehicle from open market vs buying a lease return that was leased by wei2go.
I am in favor of buying a vehicle that you like and know the the history of.
Salim
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12-29-09, 10:28 AM
#8
^^ If I understand it right, the question here is, why would any one lease and then at the end buy the vehicle?
Now if we fast forward to current time, narrow down the options and read the post as ... a choice between buying a used vehicle from open market vs buying a lease return that was leased by wei2go.
I am in favor of buying a vehicle that you like and know the the history of.
Salim
Now if we fast forward to current time, narrow down the options and read the post as ... a choice between buying a used vehicle from open market vs buying a lease return that was leased by wei2go.
I am in favor of buying a vehicle that you like and know the the history of.
Salim
12-29-09, 10:28 AM
#9
Intermediate
I would buy it. You know the history of the car and the price is right. It should continue to give you good service. My dad used to buy the company cars his company furnished when the company lease was up and never regretted doing that. What you have paid into the lease is a mute issue on the question of buying the car now that the terms of the lease are over.
Cat
Cat
12-29-09, 12:21 PM
#10
Yes, you may think you like this vehicle more than the 2010 model, but what I was saying was to take into consideration how much you have already spent in lease payments and upfront costs on the 2007 and add that onto the buyout amount. Do you really want to sink that much more money into a used vehicle? I think if I had the chance to walk away from my lease I would do it. You might be able to get a lower lease payment for a brand new vehicle.
Good Luck!!
Anyway, its nice to have this problem
Good Luck!!
Anyway, its nice to have this problem
+1 for buying the car because you know its well maintained, it has low miles, and you can probably negotiate a low cost extended warranty to take you to 100K miles
12-29-09, 01:04 PM
#11
someone didnt remember Economics 101. An economist would tell you that you cant factor in previous costs when making a decision now. You are making the decision now, meaning youre starting at zero. therefore your options are to buy out the vehicle at $26K, buy a new vehickle at $45K or whatever your range is, or lease another vehicle, or not buying anything at all.
+1 for buying the car because you know its well maintained, it has low miles, and you can probably negotiate a low cost extended warranty to take you to 100K miles
+1 for buying the car because you know its well maintained, it has low miles, and you can probably negotiate a low cost extended warranty to take you to 100K miles
Lets say the lease payment is $525 (guessing). That times 3 years equals$18,900 of payments. :Let's assume the upfront cost was $4,000. Add the $26,000 purchase price and now you are at $48,900, not even including the interest to be paid on the new loan, or potential repairs or a warranty cost. To me, it makes more sense to either lease or buy a new vehicle rather than pay this much.
Please don't think I am being a blowhard, I am just looking at it purely from a financial aspect. I generally think leases are for the birds anyway and would encourage purchasing outright.
Either way, you are getting a great vehicle.
Adam
12-29-09, 01:20 PM
#12
Hesham, I know what you mean, but don't you think that by buying the leased vehicle, you are doing exactly what Lexus wants you to do? I guarantee you Lexus made more money (and thus cost the consumer more) from this agreement than if the car had been purchased outright? There are better deals to be had now versus 3 years ago in the auto market.
Lets say the lease payment is $525 (guessing). That times 3 years equals$18,900 of payments. :Let's assume the upfront cost was $4,000. Add the $26,000 purchase price and now you are at $48,900, not even including the interest to be paid on the new loan, or potential repairs or a warranty cost. To me, it makes more sense to either lease or buy a new vehicle rather than pay this much.
Please don't think I am being a blowhard, I am just looking at it purely from a financial aspect. I generally think leases are for the birds anyway and would encourage purchasing outright.
Either way, you are getting a great vehicle.
Adam
Lets say the lease payment is $525 (guessing). That times 3 years equals$18,900 of payments. :Let's assume the upfront cost was $4,000. Add the $26,000 purchase price and now you are at $48,900, not even including the interest to be paid on the new loan, or potential repairs or a warranty cost. To me, it makes more sense to either lease or buy a new vehicle rather than pay this much.
Please don't think I am being a blowhard, I am just looking at it purely from a financial aspect. I generally think leases are for the birds anyway and would encourage purchasing outright.
Either way, you are getting a great vehicle.
Adam
I've read Lexus does not negotiate the buy out number.With that mileage,Lexus would want that RX and probably wouldn't negotiate anyway.
Last edited by Joeb427; 12-29-09 at 01:35 PM.
12-29-09, 06:09 PM
#13
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Thanks for all the inputs! Okay, I paid $800 drive off, which was first month and license fees, I think, and total monthly payments were $510/mo including taxes. So yes, I've put about $18,000 into this car.
This is my thinking:
If I turn the car in, I get nothing, just walk away.
If I get a new lease, I'll be in the same boat in 3 yrs, and if I walked away then, still get nothing after 6 years of car payments!
My thinking is, if I buy the car, and pay it off in 4 yrs, the car will be 7 years old but it will be mine to keep. And perhaps I can drive it for 3 additional years without any car payments. Or, if I want to get a new car after 7 years, the car will still have some value. Looking at what a 2003 4WD is going for on autotrader, it may be worth between $15,000 to $18,000 for the mileage that I drive, which may cancel out my original lease payments? And I get a rebate when I sell, which I can use to pay towards a new lease or new car. Am I making sense?
Anyway, I am still thinking of keeping it. Have till 12/31/09 to decide. Just wanted to find out what others paid for a car with similar specs.
This is my thinking:
If I turn the car in, I get nothing, just walk away.
If I get a new lease, I'll be in the same boat in 3 yrs, and if I walked away then, still get nothing after 6 years of car payments!
My thinking is, if I buy the car, and pay it off in 4 yrs, the car will be 7 years old but it will be mine to keep. And perhaps I can drive it for 3 additional years without any car payments. Or, if I want to get a new car after 7 years, the car will still have some value. Looking at what a 2003 4WD is going for on autotrader, it may be worth between $15,000 to $18,000 for the mileage that I drive, which may cancel out my original lease payments? And I get a rebate when I sell, which I can use to pay towards a new lease or new car. Am I making sense?
Anyway, I am still thinking of keeping it. Have till 12/31/09 to decide. Just wanted to find out what others paid for a car with similar specs.
12-29-09, 09:19 PM
#14
Thanks for all the inputs! Okay, I paid $800 drive off, which was first month and license fees, I think, and total monthly payments were $510/mo including taxes. So yes, I've put about $18,000 into this car.
This is my thinking:
If I turn the car in, I get nothing, just walk away.
If I get a new lease, I'll be in the same boat in 3 yrs, and if I walked away then, still get nothing after 6 years of car payments!
My thinking is, if I buy the car, and pay it off in 4 yrs, the car will be 7 years old but it will be mine to keep. And perhaps I can drive it for 3 additional years without any car payments. Or, if I want to get a new car after 7 years, the car will still have some value. Looking at what a 2003 4WD is going for on autotrader, it may be worth between $15,000 to $18,000 for the mileage that I drive, which may cancel out my original lease payments? And I get a rebate when I sell, which I can use to pay towards a new lease or new car. Am I making sense?
Anyway, I am still thinking of keeping it. Have till 12/31/09 to decide. Just wanted to find out what others paid for a car with similar specs.
This is my thinking:
If I turn the car in, I get nothing, just walk away.
If I get a new lease, I'll be in the same boat in 3 yrs, and if I walked away then, still get nothing after 6 years of car payments!
My thinking is, if I buy the car, and pay it off in 4 yrs, the car will be 7 years old but it will be mine to keep. And perhaps I can drive it for 3 additional years without any car payments. Or, if I want to get a new car after 7 years, the car will still have some value. Looking at what a 2003 4WD is going for on autotrader, it may be worth between $15,000 to $18,000 for the mileage that I drive, which may cancel out my original lease payments? And I get a rebate when I sell, which I can use to pay towards a new lease or new car. Am I making sense?
Anyway, I am still thinking of keeping it. Have till 12/31/09 to decide. Just wanted to find out what others paid for a car with similar specs.
12-29-09, 09:40 PM
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Curious...if I were to sell it for $30,000 before my lease is up, would I have to pay taxes on it, or would the buyer pay the taxes? Tax in my area is high, 9.75%, so if I were to buy it first, it would cost me about $29000. Therefore selling for $30,000 will only net me $1000 profit. But if the buyer pays the taxes and I don't need to, then I get to keep $4000? Is this right?