Early lease renewal?
09-10-12, 04:54 PM
#1
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Early lease renewal?
I have a 2010 RX 350 with 28 months on a 36 month lease. Some of my friends have told me that their Lexus dealers have been taking back the cars when they sign a new lease at the same rate as their old ones. Would like to hear if anyone as taken advantage of this and what the deal was as I would like to re-negotiate.
09-11-12, 12:49 PM
#2
A few forum members have done this and their experiences are in some past threads ... may be tough to find. There was a Wall Street Journal article on this a month or so ago. High demand for 2010 & 2011 used Lexus has made it possible to just trade up. Go down to your dealer and select a new car and let them work the numbers. With luck, you may be able to just drive it off with the same payments that you are currently making. It is essentially a new lease ... so just look at the terms carefully. That is really all there is to it.
09-11-12, 01:13 PM
#3
Lexus Lease
My wife just leased a 2012 ES 350. She was debating whether to hold off for the Gen 6 ES 300h but they made her a deal she couldn't refuse on a 3 year lease. The lease manager at the dealership told her to give it a couple years then bring it in and let them appraise the vehicle. Without any penalty he said she could lease or purchase a new vehicle and they would "credit" her the difference of its current market value vs the remaining lease value. I'm not sure how this works (or if I'm correctly stating the conversation) but we talked about it for quite a while. I told my wife I've never heard of a dealer or manufacturer being that flexible on a lease. When I traded my last GM leased vehicle a few months early I got hit with a substantial penalty for terminating the lease early. This Lexus lease program is the best one I've seen. This is definitely not your father's lease!
I'd say you are well in the optimal range for having them appraise your vehicle and make you an offer to get into a new one! The only caveat the lease manager gave her was that any miles over the lease limit (30k) would deduct $0.25 per mile from the current market value. No penalty for terminating the lease early.
Here's another hard-to-believe story he told me: a guy brought in his ES 350 and handed the dealership the keys. He said he was going to lease a BMW this time. The lease manager told him to wait a few minutes while they appraised his vehicle. Bottom line: the vehicle was worth $1800 more than the residual value so he wrote the guy a check for $1800. He said the guy was astounded and reminded him he was going to the BMW dealer. Lexus told him that was OK; the vehicle was worth more than they estimated and the money was his. Now, the lease manager is a friend of mine so I actually believe him.
Good luck and let us know how it works out!
I'd say you are well in the optimal range for having them appraise your vehicle and make you an offer to get into a new one! The only caveat the lease manager gave her was that any miles over the lease limit (30k) would deduct $0.25 per mile from the current market value. No penalty for terminating the lease early.
Here's another hard-to-believe story he told me: a guy brought in his ES 350 and handed the dealership the keys. He said he was going to lease a BMW this time. The lease manager told him to wait a few minutes while they appraised his vehicle. Bottom line: the vehicle was worth $1800 more than the residual value so he wrote the guy a check for $1800. He said the guy was astounded and reminded him he was going to the BMW dealer. Lexus told him that was OK; the vehicle was worth more than they estimated and the money was his. Now, the lease manager is a friend of mine so I actually believe him.
Good luck and let us know how it works out!
09-11-12, 02:38 PM
#4
This is what dealer will "often" do:
Appraise your current vehicle for the market value (at trade in I guess)
Check with TFS (the leasing company) to see how much is the current buy out price
The different is what you get.
The dealer can also play with your current vehicle value when they really want to sell you a new one (for monthly quota...). Also, they know if they can sell your vehicle quickly. Anyway, give it a try and remember to read everything carefully. Good luck.
Appraise your current vehicle for the market value (at trade in I guess)
Check with TFS (the leasing company) to see how much is the current buy out price
The different is what you get.
The dealer can also play with your current vehicle value when they really want to sell you a new one (for monthly quota...). Also, they know if they can sell your vehicle quickly. Anyway, give it a try and remember to read everything carefully. Good luck.
09-11-12, 03:54 PM
#5
Here's a leasing story I haven't personally encountered until recently.
I leased a BMW car for my son who after a little over a year of use, ran into an accident which resulted in a total write off of the vehicle.
While the insurance adjuster was trying to do what she needed to do, my son got a Volvo S60 for a rental fully paid by the company for about 10 days; paid for my son's therapy sessions just to make sure he was okay, and when they told us it was a total write-off, sent us a check for $6400 dollars and paid off the remainder of the car's market value. BMW also sent us a check for $3900 dollars. Now this was a total suprise to us albeit a very pleasant one. We would have been contented just to be released from any financial obligation to the Financing Company, but receiving $10,300 back from the two companies was totally unexpected.
Can someone in the know explain this to me? Not that I'm complaning or anything ;-)
I leased a BMW car for my son who after a little over a year of use, ran into an accident which resulted in a total write off of the vehicle.
While the insurance adjuster was trying to do what she needed to do, my son got a Volvo S60 for a rental fully paid by the company for about 10 days; paid for my son's therapy sessions just to make sure he was okay, and when they told us it was a total write-off, sent us a check for $6400 dollars and paid off the remainder of the car's market value. BMW also sent us a check for $3900 dollars. Now this was a total suprise to us albeit a very pleasant one. We would have been contented just to be released from any financial obligation to the Financing Company, but receiving $10,300 back from the two companies was totally unexpected.
Can someone in the know explain this to me? Not that I'm complaning or anything ;-)
09-11-12, 04:16 PM
#6
Here's a leasing story I haven't personally encountered until recently.
I leased a BMW car for my son who after a little over a year of use, ran into an accident which resulted in a total write off of the vehicle.
While the insurance adjuster was trying to do what she needed to do, my son got a Volvo S60 for a rental fully paid by the company for about 10 days; paid for my son's therapy sessions just to make sure he was okay, and when they told us it was a total write-off, sent us a check for $6400 dollars and paid off the remainder of the car's market value. BMW also sent us a check for $3900 dollars. Now this was a total suprise to us albeit a very pleasant one. We would have been contented just to be released from any financial obligation to the Financing Company, but receiving $10,300 back from the two companies was totally unexpected.
Can someone in the know explain this to me? Not that I'm complaning or anything ;-)
I leased a BMW car for my son who after a little over a year of use, ran into an accident which resulted in a total write off of the vehicle.
While the insurance adjuster was trying to do what she needed to do, my son got a Volvo S60 for a rental fully paid by the company for about 10 days; paid for my son's therapy sessions just to make sure he was okay, and when they told us it was a total write-off, sent us a check for $6400 dollars and paid off the remainder of the car's market value. BMW also sent us a check for $3900 dollars. Now this was a total suprise to us albeit a very pleasant one. We would have been contented just to be released from any financial obligation to the Financing Company, but receiving $10,300 back from the two companies was totally unexpected.
Can someone in the know explain this to me? Not that I'm complaning or anything ;-)
09-11-12, 06:57 PM
#7
I have a 2010 RX 350 with 28 months on a 36 month lease. Some of my friends have told me that their Lexus dealers have been taking back the cars when they sign a new lease at the same rate as their old ones. Would like to hear if anyone as taken advantage of this and what the deal was as I would like to re-negotiate.
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