bruin18

My lease is up on my '06 IS 250 at the end of March. My residual is around 18k which is around 3k below the private resale value.

I haven't had any problems with the car and I only have about 25k miles on it so I'm thinking of buying out the car but I'm still not 100% sure yet.

Lexus Financial said that I can extend my lease month to month for 6 months, which seems like a good plan for me. Has anyone done this? They said the buyout price goes down as I make payments and there is also some depreciation that factors in.

Also, anyone have suggestions on whether I should consider staying financed with Lexus Financial for the purchase or look at a 3rd party loan, payoff Lexus Financial and then start a new loan?

Lastly, I've only leased cars so I've never dealt with this. I believe my Lexus has a 7 year / 100k mile warranty. If I buy it out should I look into any extended service warranty?


Thanks!

Fizzboy7

I'd shop around the financing just as if you were buying a new car. You'll find different rates out there.
Question: What does extending your lease for a few more months accomplish? If you are going to buy it eventually, why not buy it now and start gaining equity.
P.S. Our cars hold their value well. My lease buyout is way under what the market says it's worth.

fredw1

I agree with Fizzboy. Compare total out-of-pocket cost for:
1) buying now and financing with Lexus
2) buying now and financing with someone else
2) making six more payments and financing with either Lexus or someone else

integlspwr

iTrader: (2)

I am in the same boat BUT i am looking to purchase the is350 from my friend who is currently leasing it.

Basically.
1. friend is leasing car, lease ends in march.
2. he will sell the car to me for residual, no mark up or anything.

question is, how would i go about's doing that since the lease is under HIS name etc.

I would get the loan from my credit union for the residual, and then whats the steps after that?

Anyone know exactly how does it work with Lexus Financial Services?

Thanks!

iRock

iTrader: (12)

Just call ur credit union and ask em... they probably dealt with that before once or twice. If not they can figure it out. I would guess that he would get approved for the residual and then sign over the loan to u or something along those lines

Evitzee

If you like the car buy it. With only 25k on the the clock you'll be getting good value for the money. You won't be able to go on the used market and buy a car with that kind of value for what he buyout price is. Don't wait and keep paying month to month, that is just wasting money. Start the ownership process NOW.

You have 4 years (50,000 mi) general warranty, and a 6 year (70,000 mi) powertrain warranty. Buying an extended warranty with a Lexus with only 25,000 mi on it doesn't makes sense to me. All warranties are gambles, and like Las Vegas, the odds are tilted in the houses (Lexus's) favor. My IS is coming up on the four year mark and I don't have that many miles on mine, either. No issues so far and I don't expect to buy an expensive extended warranty.

LexusRuss

Agreeing with what was stated before, there's no reason to extend the lease if you're going to buy the car. You want to jump over to the purchase side as soon as you can.

If you use a 3rd party loan, you can probably get a lower interest rate (depending upon what Lexus is offering). Credit Unions which don't traditionally operate for profit, usually offer a lower interest rate.

An extended warranty is entirely up to you but, my guess is that you don't need it. Toyotas are high on reliability and your car is well below the normal wear and tear based upon the miles.

Good luck