How to buyout a lease
07-05-14, 07:53 PM
#16
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Dealers do not buy lease returns at residual value, especially for a model like GS 350 with artificially high residuals. Dealers buy lease-returns (if they wish so, but about 70-80% of the cars they sold, they have to buy) at latest auction prices. So you should work with your dealer. They may offer you a lower that the residual price, knowing that this will be a quick turn around case. Go to Edmunds, not KBB, find real-world trade in values topic and check what the current auction value of your car is. Add $1-2,000 to the auction price and offer the resulting amount to your dealer. They may accept it.
07-05-14, 09:09 PM
#17
Lexus Fanatic
The dealer doesn't have control over what lease returns they keep and what they don't. Lexus allocates them based in demand, etc. That's why a lot of times dealers want to trade you out of it if it's a car they want.
03-16-15, 03:32 PM
#19
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I just bought out my Prius. I never called the dealer, since they were zero factor in the decision IMO.
I called TFS and they gave me the price. I didn't even try and negotiate, because I didn't care. I bought it out for $15.3k and sold it on CL for $14.8k within 2 weeks of listning it.
The rub, is that TFS is NOT a dealer. You can in theory pay it off and within the 10 day period flip the vehicle to someone else and avoid the tax with CA DMV. BUT, when we went to go do this, DMV did not collect a red cent other than the sale price to the new owner, which was "$1000". I have a feeling TFS is going to come back to haunt me with a 1099 or something for 2015, where they'll want to collect a 10% sales tax on the buyout price of the vehicle. We will see..
I called TFS and they gave me the price. I didn't even try and negotiate, because I didn't care. I bought it out for $15.3k and sold it on CL for $14.8k within 2 weeks of listning it.
The rub, is that TFS is NOT a dealer. You can in theory pay it off and within the 10 day period flip the vehicle to someone else and avoid the tax with CA DMV. BUT, when we went to go do this, DMV did not collect a red cent other than the sale price to the new owner, which was "$1000". I have a feeling TFS is going to come back to haunt me with a 1099 or something for 2015, where they'll want to collect a 10% sales tax on the buyout price of the vehicle. We will see..
03-16-15, 03:42 PM
#20
Lexus Test Driver
How ironic. I was thinking about buying out my lease and paying off my car instead of putting it towards a new house. Just a thought. I've only leased once before and just traded it in half way through so I'm not really sure what to do at this point but not really worried.
03-16-15, 05:12 PM
#21
Were you facing large fees/costs by turning it in I assume? Otherwise sounds like a quick way to lose $500.
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