I'm a month away from the end of a 27 month lease on my 2017 RX350 F-Sport. I'm trying to decide if I want to purchase the vehicle or just turn it in. It is immaculate, never been damaged, always dealer maintained, just had new OE tires installed. My lease payments were $699.00 and the buyout according to Lexus Financial is 38,422.97. At this time, I am also just about 1000 miles over the allowance as well.

I do not want to lease anymore, nor do I want a $700 payment as I am 60 years old and have planned for an early retirement. If I purchase, I think the 38,422.97 is a bit excessive which of course it would be because it never makes sense to lease and purchase. Additionally, when purchasing the leased vehicle, you can't just send Lexus Financial a check. It has to be processed through a Lexus dealer and they add on dealer prep and all that nonsense.

So if I buy, I would need to contribute a sizable down payment to keep the payments at about $500 which is where I would want them. I don't like large down payments because in the event of a total loss, you can kiss that money goodbye. I have great credit and prefer low interest auto loans w/gap insurance.

In conclusion, options are....

Buy my vehicle through Lexus Financial via dealer or turn in and buy less expensive (non-Lexus) vehicle. I think I know the answers I will get because less expensive than 38,422.97 + prep is going to be some small Toyota which I'm sure is a good car but after being with Lexus for so long, I may not be happy. I'm not an elitist and it's not about status - just love the Lexus brand.

Opinions? Thanks!

Some photos of the RX - sorry it is a bit dirty - raining a lot in Miami.

 

This is my question too. I'm not sure if it is ever worth it to lease and buy it outright after the lease. Dealers been talking me into leasing a 2019 GS even though I stated I like owning better (currently in the market for a used GS F sport). Did some calculations with the lease payments and estimated selling price/value of the car after lease and it always turned out costing more out of the pocket comapred to buying outright in the first place. That being said, were there any case or exception that it would worth it going the rout of leasing and buying the leased car afterward?

 

o.o i never know that its bad to lease then buy it later. i was planning to do that if i like the rx.

 

I bought back mine, and it was meant to be from the start.

The thing is that we wanted to buy it at first by giving half of the amount as cash down. We would have paid it within 4 year with a heafty interest rate (which I found out is much higher in Canada than in the US).

Then our sales guy proposed us another scenario: Lease it 3 years with a much lower rate by giving the max of security deposit and give about the same amount of the initial cash down amount that we wanted to give at the end of the lease (less the security deposit that comes back).

After some calculations, it saved us some money this way.

Also if we did not like the vehicle, we had the option to just return it. If it became involved into an accident, even after full repair, the resale of the vehicle could be lower while if in good condition and repair was well done, we could just return it without penalty.

So we took the option of the lease and buy back.

With an RX, it is a good option since the resale value remains high when we will decide to replace it.

 

You can extend the lease by 6 months if you want until you decide. It is also a month-to-month extension during that period. The buyout price will drop accordingly as well. The 6 month extension is available twice.

 

I think the missing piece of info here is what's the alternative you are comparing to? If you turn it in, you still need a car, correct? What would you consider replacing it with?

If you like the RX and you are comparing maybe buying yours vs. another used RX, I think buying yours is the way to go. You know the history and you know if you like it. $38K sounds like a decent price (but I'm not sure what options you have).

Now if you don't like the RX, and want another car, it just sounds to me like your budget is < $38K and that's another discussion really. I'll throw this out - I stretch to drive the RX because I'm still working and commute 50 miles/day in pretty awful traffic. The premium car matters. I always thought that when I retired (I'm 52) my tastes could be more modest because I would not be in it for 2 hrs/day. For me, being in retirement, I might place more value on low cost of ownership and easier payments. I would not be above getting a Rav4, CR-V, or CX-5 as an alternative. You could probably snag a CPO in that tier in the $20k's nicely appointed with extra warranty coverage.

Stepping back, yes leasing then buying is probably the most expensive way to own a car. But that's water under the bridge. I wouldn't avoid buying your RX just because of that. It's behind you - seems like the decision in front of you is do you want to own an RX or get another car? If it's the former, I like the idea of getting a known quantity rather than someone else's lease return. It's possible you could drop to a 2016 RX if you want to stay with the car, but I'm not sure that would be cheaper. I'm not an expert on the Miami market. Up here where RX's are really popular used ones are not cheap.

 

Thanks everyone - great advice! I think I'm going to buy my RX350 off the lease. I know I took care of it, never been damaged and never had one issue with the vehicle. Much appreciated!

 

From an Accounting/Finance standpoint, the lease is over; the money is spent. It does not matter at this point cuz it ain't coming back; it's gone.
The accounting term is a "sunk cost".
Leasing is paying the depreciation for the leasing company and renting for the lessee.

My question is, can you find another car you better for the $38K?

Good luck and enjoy your beautiful RX.

 

Do not forget had you purchased you would have put down at least $35,000 to get the same payment. The question is what did that $35,000 earn during the lease period? Some people may find that leasing and buying at the end was actually a good deal.

 

I'm considering purchasing my leased 2017 RX350 F sport (fully loaded) but am also tempted to try and get a deal on a 2020 RX Fsport because of the latest tech upgrades. However, I'm not sure if I'll be able to get a deal similar to what I have right now. My current situation is the following: sticker was $61,8K, $3K down with $567 monthly ( 36 month lease) and a residual of $35.5K. What do you guys think I should do when my lease ends? I forgot to mention that I'm in SoCal.

 

Just my 2cents.. I have bought out my lease before. Only way i could afford my is in my early 20s not making a whole lot of money. I didnt want a 700 dollar car note. As my wife drives a new rav4 it was close to 30k. I would spend 8k more for my rx.. after driving something that nice a step down is a little disappointing. As others have said. You know the car in and out.. not getting something that you have to worry about.

 

It's difficult to say because we all prioritize different things in different ways. But I have a 2016 450h and here's how I think about it for me. I don't see the 2020's being hugely different - not enough to restart the clock on a new loan or lease. Yes, some small upgrades but it's fundamentally the same car. For me, I want to see what the next gen is all about before I make a move.

So the question before you is do you want to start over and be in the same place you are three years from now just with a 2020, or maybe pay off (or pay down) your 17 and maybe look to the 2021's or 2022's when Lexus does a styling refresh? For me I'm holding tight until I see what the next gen brings. Because if you lease a 2020 now, and the refresh comes along and you REALLY like it, you're stuck until 2023 (or you pay to get out of your lease). If you hold your 17, see what the refresh brings, you can decide to trade in the 17 on a new 21/22. And if the next gen is not to your liking, seek out a 2020 CPO and you know then it's a good long term prospect.

But if you don't feel like the next gen might be of interest to you, and you think the 2020 is what you want to own long term, then making that move makes sense.

 

It's not typically worth it to buy the lease. Do research on what it's worth before you pull the trigger. Often at our store we flip guests to a very similar car with sometimes lower mileage that's also certified with warranty and maintenance and they pay the same or less.

 

Hello everyone, first post. I lease a 2017 RX350 Executive Package, currently 46,000kms, accident free, lease is coming up for renewal next year (Sep) Lexus contacted me about getting a 2020:
Seeking opinions on the following options:

#1=Should I buyout next year for 38k (including taxes) ?
Current payment is $920, using ~$2,000/year in maintenance and owning it for another 3 years it would cost me ~$1,102/month.
I will need to buy a set of winter rims ~1,200 as well as likely do breaks next year (assuming).
Pros : don’t need to worry about swapping cars, switch insurance, Lexus are reliable, it could cost less over the years
Cons: should I have an accident in the future I will have to live with it, it could cost me more than $2,000/year (for whatever reason). I hate the current entertainment system, CarPlay would be useful.

#2=Should I give the car back now and take the 2020?
Pros: Worry free, change oil, should an accident ever happen I just fix it and bring it back. Car play

appreciate your thoughts

 

Have the same vehicle only with the Luxury Pkg.
In your situation I'd buy it back in a flash.