Help with Lease Buyout and Leasing / Financing the Remainder
05-03-16, 08:02 PM
#16
Lexus Test Driver
Thread Starter
You've got some quasi-accurate info...
You can lease a CPO IS, the trouble is I'm not sure ethically how that would work with a lease buyout (LBO) as on a typical IS the residual is way higher than market wholesale so I guess we'd have to buy the car at residual, run it through service, do all the work, add certfication... this could get quite spendy especially with what it costs to get the average IS through the shop.
Generally we'd simply sell a CPO out of stock or the customer leases a new one.
As far as how it works with market pricing...
When a car comes in off lease we ground it and an inspection is ordered. On occasion I know that the car is worth residual/payoff or less and I just buy the car from the get go and don't even bother with an inspection.
Failing that within a few days AutoVin or another company comes and does an inspection, generally we get a market price the next day. I then have 2 business days (Unless it's Friday, then I have through Monday) to buy the car at market (or residual or payoff).
If I don't buy the car then it's available to other Lexus dealers starting at just after midnight the next day for a 24-48 hour period. Oh, Toyota dealers have a shot the first day if it doesn't sell by 4pm.
If it doesn't sell in the online sale I have one last shot before it goes to a physical auction.
This is another reason why nice IS F-Sports almost never make it to auction.
You can lease a CPO IS, the trouble is I'm not sure ethically how that would work with a lease buyout (LBO) as on a typical IS the residual is way higher than market wholesale so I guess we'd have to buy the car at residual, run it through service, do all the work, add certfication... this could get quite spendy especially with what it costs to get the average IS through the shop.
Generally we'd simply sell a CPO out of stock or the customer leases a new one.
As far as how it works with market pricing...
When a car comes in off lease we ground it and an inspection is ordered. On occasion I know that the car is worth residual/payoff or less and I just buy the car from the get go and don't even bother with an inspection.
Failing that within a few days AutoVin or another company comes and does an inspection, generally we get a market price the next day. I then have 2 business days (Unless it's Friday, then I have through Monday) to buy the car at market (or residual or payoff).
If I don't buy the car then it's available to other Lexus dealers starting at just after midnight the next day for a 24-48 hour period. Oh, Toyota dealers have a shot the first day if it doesn't sell by 4pm.
If it doesn't sell in the online sale I have one last shot before it goes to a physical auction.
This is another reason why nice IS F-Sports almost never make it to auction.
Need to digest.
Thank you!
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