to renew lease or not?
#3
Lexus Test Driver
- 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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#4
Lead Lap
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.
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.
#5
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.
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.
#6
Lexus Test Driver
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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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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#7
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 ..
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#8
Lead Lap
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.
#10
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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?
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?
#11
Lead Lap
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?
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?
#12
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.
It is the owner of the vehicle (Lexus) you need to negotiate with, not the dealer.
#13
exclusive matchup
iTrader: (4)
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.
It is the owner of the vehicle (Lexus) you need to negotiate with, not the dealer.
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"
#14
Lead Lap
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.
It is the owner of the vehicle (Lexus) you need to negotiate with, not the dealer.