15951

Like many of you, I leased through LFS, and have a few questions I'd like assistance with from anyone that can help:

1. My lease allows 48k miles, and I will have 20k miles at most at lease end. LFS does not allow "credit" for low miles, so I'm going to probably buy the car and resell it at lease end (purchase price for loaded IS350 at lease end: $22,241.50). Question: Is the purchase price at lease end negotiable?

2. Item 36 on my lease contract covers "Excessive Wear and Use Charges", and it is more vague than other leases I have entered into. It states that excessive wear and use incudes, but is not limited to:

- inoperative mechanical and electrical parts;
- damage due to failure to maintain the vehicle;
- damage to the body, lights, trim or paint;
- damaged, broken or tinted glass;
- torn, damaged, or stained interior;
- damage from flood, water, hail or sand;
- damage from removal of quipment or signs placed on the vehicle;
- missing equipment, parts and accesspries, including keys/remotes;
- tires with less than 3/32" of tread remaining.

Question: This is pretty broad, and there is no 'acceptable' wear and tear here. Has anyone had experience with lease end problems with LFS - e.g. being charged for minor dings, normal wear and tear, etc? Also, I was surprised that LFS identifies tinted glass as "excessive wear and use". The way this reads, they could charge for paint chips on the front of the car, or any other wear that makes the car less than perfect at lease end.

I look forward to any input you guys have. Thanks.

15951

Well, I'm guessing from the silence that I'm getting a collective shrug. Oh well, thanks anyway!

Evitzee

There is no definition of what is normal and what is excessive wear and tear. Some makes want the car to come back just like it rolled out of the showroom, others are more sanguine. That is one reason I don't lease. You probably won't have any problems.

dw8787

I agree there is no specific definition. It is also based on the area of the country you live in. For example, a car up north is obviously subject to increased wear due to the weather, over a car in the south. It is a game you play with the dealer. They look for more obvious signs of wear and tear, stains on the seats, cigarette burns etc... The exterior could be excessive door dings, or minor damage that obvioulsy wasn't repaired. They do understand the some rock chips are part of normal wear. The fact of the matter is, if you took reasonable care of your car, then you won't have an issue.

Technique

bumped to see if anyone has experience with the OP's first question:

"Question: Is the purchase price at lease end negotiable?

Joeb427

iTrader: (1)

If you're buying the car,you don't have any wear and tear issue to worry about.
You may be able to negotiate a bit but usually not much with a auto manufacturer.
You can negotiate much more with a leasing company.

tex2670

My understanding is that it's impossible to negotiate the residual value up front, let alone on the back end. All of the stories I have heard are that the lease companies are stupid about these things, i.e., they won't negotiate down if the residual value is low and they would take a bath on a resale, and the lessee wants to buy out the lease for less than the contract price.

slee18

iTrader: (1)

The residual value is based upon the car. Sometime like my Ford Explorer it was negotiable up front and at the end. You just have to make a guess if you negotiate at the beginning.

I agree with tex that leasing companies wont negotiate down sometimes because the resale of certain cars are higher. In the case of my Explorer they just wanted to get rid of it at any cost due to all the lawsuits of the tire blowing out and flipping.

15951

Some leasing companies are glad to take a little less than full residual value on purchase so they can avoid the expense of reconditioning the car for sale, having it take up space on the lot, etc. Lexus probably won't have the same opinion of my car, seeing as how I'm significantly under the allowable (pre-paid, essentially) mileage and, therefore, the car is worth substantially more than residual.

It's true that residual isn't negotiable, but buyout should ALWAYS be negotiable, in my opinion. The car is only worth what they can sell it for, regardless of what their crystal ball told them three years ago.

Also, I would never think to haggle on residual at the front end of a deal. I just negotiate reduction in cap cost (price of vehicle), which many people fail to do on a lease. I discuss the purchase price, and then tell them I want to lease after I settle on a final price.

Thanks for all the input - sounds like I'm stuck with the full residual value if I choose to buy the car, then.

fantom

While that sounds logical from our side, most of the time it doesn't work that way, mainly because the residual is set up front, as is the future selling value. Large leasing companies have a business agreement on exactly what they will get for your car on the back end, before you lease it, so no crystal ball is involved. They've been through it too many times, and it's the correct way to run a large business.

No harm trying, however.

Good luck.

carchitect

iTrader: (1)

"RE: Question: Is the purchase price at lease end negotiable?[/QUOTE]

No, but you can negotiate the residual before you sign on the lease. Most dealer's finance person won't necessarily give you that option though since its not a path most wander onto. If you are certain you wish to purchase the vehicle you can get a lease with a higher payment to reduce your residual payment.

If you have significanty lower miles on your car than what you signed your lease for, the vehicle is worth more and you could get a credit toward a new vehicle purchase.

AsianGirl007

iTrader: (1)

I'm on my fourth leased car from LFS....

No, the buy out is NOT negotiable with LFS nor is the residual at time of delivery.

Yes it is very broad but I can tell you LFS has never charged me with any extra costs. As far as banks go, LFS is one of the easiest I have dealt with.