How well have you taken care of your 2016? Did you have all the recalls and TSBs applied? Did you have all the scheduled maintenance services done on schedule? How much tread is left on the tires? Are there any concerning performance issues -- leaks, noises, or noticeable problems? If it seems like a solid, trouble-free car, then it is probably a smart idea to buy out the lease and continue with it. If you haven't replaced the OEM battery, do that ASAP. Also the fob batteries. When your tire tread goes below 4/32 inch, it's time to get serious about replacing them, especially heading into winter. There are no guarantees, but that car should perform for many more years if taken care of.

 

Strictly looking from a financial standpoint, we need more info. What is your residual? How much is your monthly payment? Lastly, how much down did you pay?

Most of the time, financially speaking, buying out a lease is not a good idea as the residual value on avg. is higher than similar conditions used market vehicles which maybe CPO'ed with extended warranties. In addition to the full sales tax, you will be responsible for. Take a look at your residual which is pretty much your buy price and compare it to the local used market on autotrader.com. If it makes sense buy it out, if not return it.

Also, allot of times, dealers will incentivize you to lease again by giving you loyalty discounts and eating up some of the wear and tear costs(Unless your car is perfect).

Lastly, remember, everything is negotiable when purchasing a lease out, including the residual.

 

Yes, this is quite true -- not sure how Ontario handles the tax situation, but basically leases are indeed designed to get the maximum price out of a buyout, versus the fair market price.

However, beyond the instant financial cost analysis, for the person evaluating acquisition of a 5 (model) years old used car, you have to consider the reliability risk of the used car with a somewhat mysterious service and usage history, versus the one you've been taking care of since it was new. You can look up the online service history of the used car, and the points about CPO and warranty are valid, but there's still stuff that you won't know. Has it ever been over-revved or stressed in other non-obvious ways? Did the prior owner hear or perceive things deteriorating, under certain driving conditions, before he/she decided to unload it? Were there any repairs done by "shade tree" mechanics, including the former owner, that don't show up in the online service history? Were they done correctly?

So, it's perhaps a trade-off decision between financial cost at the point of purchase, versus confidence in the likely future reliability of the vehicle. IMHO.

 

I had that same decision on a my wife's 2016 RX350 lease with low mileage since she works from home. Excellent condition garaged fully loaded. So I did the math on payments if purchased vs 2020 lease,warranty, and up coming service cost if I keep it. We decided to lease an 2020 RX with a little lower payment with the same promotions I purchased the 2016. Remember, if you buyout your lease you're just purchasing a nice used car, and all service & maintenance is on you.
You can always purchase an extended warranty or have an service agreement, but that will add to your cost. Either way unless you're buying out right you're gonna have a car payment. It wasn't a easy decision until Lexus came up with the discounts. I only had around 30k miles so somebody got a very nice lease return CPO.

 

I’m also going to be in the same boat. I received an unexpected work car and due to COVID we didn’t do any road trips that I normally do this summer. I have a in perfect condition 18 month old, garage kept, washed/waxed bi weekly RX with 4,987 miles.

I basically had her to transport the kids and weekend/ family trips but due to COVID that’s gone out the window. Not to mention I’ve put 36K on my work van this year.

Around this time next year I will probably look into seeing if it’ll be worth it to sell it on Zoom or one of those spots. I’m either going to buy it because the mileage is going to be so insanely low, or I’m going to sell it and buy out right a 3-5 year old GX that won’t be perfect and I won’t be as OCD with.

 

I have leased 4 vehicles in Upstate NY and have NEVER paid TAX on the entire price of the vehicle. Tax ONLY on your payment total.

 

I think if you like the car, and nothing else is tugging at you at that price point, you're good to go! You know the history, you know it's a great vehicle, and I agree there isn't anything I see in the 2020's that would make me part with my 2016. I bought mine, but my plan is to pay it off in 2021 and then see what the 2021's and 2022's look like. Until they refresh the RX in a more meaningful way or go next gen, I don't see much difference in the 2016-2020's, not enough to start over with payments anyway.

I saw a 2021 RX Black Line that looks fantastic, but they are only building like 1000 of them. And I'd want the 450h and there are only 250 of those. But that aside, I'd like to see what the next gen brings.

 

I don't disagree with you. All valid points that should be considered.

Some thoughts: My view is that most, and I say most used RX's are roughly in the same avg condition. Nothing a savvy buyer cant navigate if they decided to look for a used one. Keep in mind, It's an RX! Lexus customers don't lease/buy and then thrash the SUV, this isn't an X5M. In addition, you and I both bought an RX because mechanically they're bulletproof lol.

Furthermore if your savvy and patient, you may be able to buy 1 model year newer(If not two) for the same cost as the buyout with potentially the original warranty and a CPO warranty + the powertrain warranty which is good for 6yrs 70k. I agree though, the biggest consideration to buyout is because you know the history of the vehicle and that's hard to give up.

In parting, there are contracts and programs which owners could have taken advantage which reduce residual costs and kept monthly payments low - they are just rare.

 

hi so im planning to buy the car after my lease end, the dealer told me to come by and bring the car in so they can certify the car to have more warranty. i think after my lease end the car still have $35k-$36k left on the car. this my first time doing lease then buy the car so i don't know the step of buying the car after lease. my worry is that the dealer want to make money off me when they certify the car before I buy the car. In my head isn't that mean im buying a cpo car from them just that they will hold the car for me which is mine and sell it back to me for higher price? can you guys tell me if this is the way how I buy the car that im leasing now or they trying to make money off me?

 

Unfortunately yes they will make money off of you.

You’d think if your buy out is 25k, you could just cut LFS a check a check for $25k but nope can’t be that easy. You will have to bring the car in have it “inspected” pay 2 grand for them to certify it, then pay the dealer fees all over, pay taxes all over.

The 25k number that I made up will get close to $30k real quick!! Every dealer will rape you the same way just try to find the one with the cheapest dealership fees. Honestly it’s setup so you lease another RX, and they can throw your old one on the CPO lot.

 

can the dealer give the price for my rx without going there? for example can i just email every lexus dealership near me and ask them for the otd price for my rx and i pick the cheapest one? or i need to drive to every dealership to find out?

 

You can save money by not having it certified. Call LFS and they will give you your exact balance owed. You can cut them a check and mail it directly to LFS and avoid the dealership entirely.

 

Your lease contract should have a purchase clause at end of lease option but like already stated, call LFS. The only reason the dealership would need to inspect it is if you are turning it in. Any other excuse is just to make them money.

 

This is a mistake most people make when leasing, the car is NOT yours, it belongs to Lexus leasing, you pay for the use of it. Only when you pay the residual it will become yours.
You're right the dealer wants to squeeze more money by certifying it CPO, you don't need that, but there will be fees, make sure they're justified, if not go to another dealer.

 

I was never offered to make it CPO. I just paid the residual value written in the lease contract (plus tax), at the same dealers where I leased it. From then it was mine!