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!

mmlex1987

I think right now in todays current financial situation, dealers/auto makers are offering better financing rates then banks, even if you have long term relationships with your banking institution. Did you accidently post your IS question in the RX forum? I drove the IS for awhile and thought it was a fun car to drive. I love most all Lexus's.

Joeb427

iTrader: (1)

True.
I just bought my leased RX half way through the lease and was offered a 4.24% for a 5/60 loan from Lexus Financial throuigh the dealer.
A great rate for a used vehicle.

mmlex1987

^Joeb, that is a fantastic rate for a used vehicle.

Joeb427

iTrader: (1)

It is the cheapest I've seen other than a CPO incentive when they run one.
Funny thing is Lexus don't want you to pay cash.
They also don't want you to put down much if you don't pay cash.

joako

In terms of the finance I can not provide a compelling reason to remain loyal to Lexus Financial. Go with whatever reputable bank gives you the best deal, if it's Lexus then so be it.

mandyfig

^^The best rate gets your money. Negotiate. But yes, buy the car if you like it. Do not worry about extended warranty. You can purchase it just before your warranty expires.