ls460owner

2007 ls460 lease about to expire - what are options or best deals available? NY based.

miniz

Get into a 2010 and take advantage of the updates/face-lift.

Mike_TX

There are no good answers to this question, but I'll toss out a few points to consider:

- It's usually NOT financially beneficial to buy a car at the end of a lease. The reason is that you end up paying more for the car because 90% of cars aren't worth the residual amount after 3 years.

- You usually can't get good financing terms on a used car, so if you try to re-finance, you'll pay a fat premium for it. There are companies that claim to offer leases for used cars (so you can re-lease your own car), but I understand they are also very pricey.

- It's not a really good idea to keep a high-tech car like a 460 after the warranty runs out, since any of a number of systems can wear out and cost you a BUNDLE to replace or repair.

- Aftermarket warranties are mostly crap, so they're not a good option. I recently saw where the Better Business Bureau has huge complaint files on EVERY extended warranty company in the country, and they recommend you avoid them.


The decision is yours, but you'd probably come out better just turning it back and buying or leasing a new car to replace it. Even if you have to go to a lesser car.

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miniz

While this might be true for other makes, this is the last thing I would be worried about with an LS. The LS has been the most reliable car on the road since it was introduced, and the LS460 is no exception. There is very little that will break and cost you any type of big money on this car.
With the market the way it is, it can be a VERY good deal to buy the car out at the end of the lease (assuming it hasn't been in an accident and was taken care of). You can heavily re-negotiate the residual value of the car because Lexus doesn't want the car back. They want to sell it to you so they don't have to deal with it. I know several people who have walked away paying several thousand dollars less for their lease-buyouts because of the market.

tromly

+1 on renegotiating the residual, in this economy Lexus financial will bend over backwards to sell you the car, make them an offer at least 2K under your buy-out, see what they say. Good Luck

Mike_TX

Far be it from me to dispute what you guys are saying, but

1. While the LS line has been very reliable, just imagine what you'd fork over if a Nav system went out, an A/C compressor died, an ECU croaked, or if (as in my own case) a valve spring broke and the car spent 19 days at the dealer. It makes my skin crawl. No machine, regardless of the brand, is bulletproof and the cost of major repairs on a Lexus will curl your hair.

2. Large luxury cars have tumbled in resale value lately, so the residual amount calculated 3 years ago is generally a good bit above the current market value. If you can actually get Lexus to take a loss and sell you the car below their contract price, good for you, but I'd have to see that to believe it!


I'd personally think you'd do better to use that negotiating power to buy a new one, but that's just me.

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snoylekim

If warranty is the issue , would it not be possible to have the buyback under a 'CPO' type arrangement where the warranty was effectively extended ?? If the car is in good enough shape, Lexus will CPO it anyway and try to sell it used with that attached as a selling point.. Best of all worlds would be negotiating the buyback lower and getting the CPO extensions ..

miniz

The chances of any of this type of stuff happening is slim to none. The reliability of this car is top notch. You sound like a must-have-warranty-coverage-at-all-times type of guy. We aren't talking about a Range Rover or BMW 745 here. This is an LS. I've owned several top-of-the-line luxo sedans that were 5-15 years of age from Germany's top players and not one had warranty coverage, nor was the original owner. Things break, you fix it. It's a small price to pay when you consider that these car's depreciated 50-80% by the time I purchase them. This guy can also take advantage of depreciation, because of what the market has done to the value of these cars. Lexus will re-negotiate the residual's. It is always in the best interest of the dealer/Lexus to sell the car to the lease-holder at the end of the lease period. There can be tremendous cost involved in taking back a lease turn-in for a dealer/Lexus.

rominl

iTrader: (4)

good luck negotiating residual values with lexus. with other brands i have seen it done, with lexus, i haven't. either you buy it or return it

ls460owner

this is a great debate and i appreciate you feedback.

i agree there's generally no right answer, but there are likely better plays given the current economic environment.

went to lexus dealer today and they don't appear overly concerned about returning 2007 flock and were not budging on price despite only 21k miles on car vs 36k on contract.

offering 4.99% on finance.

leasing 2010 model would be similar in cost, but if i purchased current car, at least i'd have a car to trade in 3-4 yrs from now when new model might come out.

any additional thoughts?

miniz

I assume you talked with them about getting into a 2010? If you give any indication that you may turn the 07 in for a 10, then you made a mistake. That seriously hurts any type of re-negotiation on the 07. They are seeing signs of $$$$$$$$ in their head because they know they can make money on either deal. You need to tell them you are either buying the 07 OR walking into the nearest Mercedes dealer and buying an S550. That puts pressure on them to make a deal on the 07 or risk loosing ALL of your business to another dealer. When they understand that they only have one way to make money off you, they will start working with you.

AceVA

In most cases, the dealer is not in any position to negotiate whatsoever on a lease-return. It is NOT their vehicle - it belongs to the finance company (typically Lexus) so I'm unsure where this information is coming from. Many (if not most) times, the vehicle will be picked up by Lexus and taken to auction. If the dealer wants it, they go to auction.

It is the owner of the vehicle (Lexus) you need to negotiate with, not the dealer.

rominl

iTrader: (4)

i didn't want to say much, but this is true. when you return a lexus lease, you return to any lexus dealership, because all they do is paperwork and afterward lexus will pick up the car.

again, i would want to see real case where people are able to negotiate and get a new price on the residual for their lexus. i have asked and tried and heard and seen, none so far. basically dealership said "nop, can't do, nothing we can do. either you buy it out or leave us with the keys"

miniz

While the dealer doesn't own the vehicle, yes, they are still the ones you need to go though to make the deal. They have the connections with Lexus, you don't. Who 'sold' you the car? Lexus or the dealer?...... The dealer. You also have the option of turning in the car, hoping the dealer will buy it (which at 21k miles with no accidents, there is a high chance), then you could walk back in next week and buy it. OR you could hope Lexus takes it back and wholesales it. Figure out where they are putting it up on the auction block, find a dealer friend, go to the auction and buy it for yourself at wholesale.

Do.Man

forget the ls460 get the new lfa.haha,
but really i think you should get a newer ls460 because it probably has all the little knick knacks fixed.