Should I buy out my lease (Merged Threads)?
04-09-21 | 01:48 PM
#121
Racer
Joined: Nov 2012
Posts: 1,969
Likes: 563
From: CA
Hi, joining again, as I have been off for years. Have a 1997 ES & a 2017 350RX in the garage. Third 350 lease with a hybrid in the middle. Now need to decide what to do.
Current RX lease was extended twice and ending shortly. Only thanks to Covid is that I am 12K under miles, so in theory purchasing at the residual is a decent value. My vehicle has the great parking sensors, blind spot monitoring, and radar cruse, almost drives itself except it gets unhappy if your hands are not on the wheel frequently enough. Oh, and the Lexus Navigation and verbal command system has not gotten any better since the first time I saw the system (my 2006 predated those capabilities) is in my vehicle. That is probably the worst thing about just buying it out, no Apple Car Play.
My calcs tell me that a purchase or lease capitalization would be about $20K higher than my buy out, and if I bought it out I need to add $4500 to the purchase over three years (36K mile checkup, new tires, both which would be avoided if I bought new, and a service contract if I was to put both choices on equal footing from a repair standpoint). So the difference is really about $15,000. That almost looks promising, owning a NEW 2021 for about $15K more than a 4 year old 2017. Am I thinking straight?
Current RX lease was extended twice and ending shortly. Only thanks to Covid is that I am 12K under miles, so in theory purchasing at the residual is a decent value. My vehicle has the great parking sensors, blind spot monitoring, and radar cruse, almost drives itself except it gets unhappy if your hands are not on the wheel frequently enough. Oh, and the Lexus Navigation and verbal command system has not gotten any better since the first time I saw the system (my 2006 predated those capabilities) is in my vehicle. That is probably the worst thing about just buying it out, no Apple Car Play.
My calcs tell me that a purchase or lease capitalization would be about $20K higher than my buy out, and if I bought it out I need to add $4500 to the purchase over three years (36K mile checkup, new tires, both which would be avoided if I bought new, and a service contract if I was to put both choices on equal footing from a repair standpoint). So the difference is really about $15,000. That almost looks promising, owning a NEW 2021 for about $15K more than a 4 year old 2017. Am I thinking straight?
Good luck.
05-01-21 | 03:12 AM
#122
do they redo everything when you fiance from them? like they have to run a credit report and give me a new apr %? made an app to fiance from them in two week just want to see do they gonna run my credit and give me a new apr.
05-10-21 | 09:43 AM
#124
Intermediate
Joined: Sep 2016
Posts: 363
Likes: 104
From: WA
I hesitated to answer because I can't speak directly to that scenario. However I would strongly suspect one of two outcomes: If the lender is the same company that held the lease, it's possible they may not run a new credit report. However, I've never experienced a case where I got a loan and they didn't run a credit report first. I guess my answer might be expect them to run a credit report but maybe be pleasantly surprised if they don't.
05-11-21 | 08:04 PM
#125
heres an update since no 1 answered. I just fiance my lease car from my local dealer. you have to do all the paperwork all over again and check your credit report. I went with cpo my current lease rx to purchase because if they dont cpo the rx i would have to pay 5.8% apr so to get a lower rate i let them cpo my lease and purchase the rx as a cpo with extra warranty and 4 extra service up to 60k mile at a 3.8% apr. I brought the 4 year extended warranty with the free 2year cpo warranty from them for mybe 6k total with the cpo fee included and key replacement that came with the deal. they say the warranty is unlimited miles and end on may 2028. I was planning to buy the 10/120k warranty but they say that is from the day the car in service and it got mileage limit and this one is unlimited miles and have the same years of warranty so we went with it. Im buying the car for 38k and with all the fee and tax i think around 44k otd
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09-06-21 | 08:13 AM
#128
Pit Crew
Joined: Jun 2012
Posts: 213
Likes: 9
From: ny
The reason I'm going to buy out my lease is I checked all the local Lexus dealers for a comparable 2018 RX. The ones close to my miles are all 8 to 10,000$ more than my buyout price because of the used car shortage.
09-06-21 | 03:10 PM
#130
Instructor
Joined: Jan 2003
Posts: 837
Likes: 47
From: IL
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09-13-21 | 03:13 AM
#131
10-16-21 | 11:46 AM
#133
Racer
Joined: Feb 2017
Posts: 1,555
Likes: 343
From: Ontario, Canada
I think that if you are buying out your lease you'll have to provide your own financing, the dealer/Lexus will not finance it unless you turn it and buy it as a CPO and even that is iffy as Lexus puts back in the general pool.
10-16-21 | 12:05 PM
#134
Lead Lap
Joined: Nov 2013
Posts: 3,642
Likes: 893
From: IL
Dealership will be more than happy to help you complete the purchase. LFS and local banks will all be
available. Rates vary by more factors than your commendable FICO score, what money if any are you
putting down? Check your position at your own bank and maybe a Credit Union would be worth joining.
Armed with comparable rate quotes you can get a good arraignment from your dealership.
Plenty of Pro & Con threads on extended warrantees for Lexus cars that never break, but now would be
the time to ask about that product if you are going to keep the car for many years or miles.
available. Rates vary by more factors than your commendable FICO score, what money if any are you
putting down? Check your position at your own bank and maybe a Credit Union would be worth joining.
Armed with comparable rate quotes you can get a good arraignment from your dealership.
Plenty of Pro & Con threads on extended warrantees for Lexus cars that never break, but now would be
the time to ask about that product if you are going to keep the car for many years or miles.