TonyGulati

I currently have a 2010 Lexus ES 350 in white with a beige interior with 58K miles on it fully loaded. The lease is ending in november but I really want to get out of it now before i put more miles on the car and lose .25 cents a mile for the next 6-8 months. i am interested in going into another Lexus as well. If you or anyone you know who can get me out of this car and get me into a new one without any problems and big damage to my pocket that would be a great help. Please let me know.

deilenberg

Have you talked to a dealer? In NJ it's the time of year the dealers start burning the showroom furniture to keep warm, very few customers right before tax time and after the holidays. There may be some offering from Lexus to turn in a lease car early if you re-lease a newer car. Dunno for sure, but other manufacturers offer this sort of thing fairly regularly to clear inventory off the lot. BTW - what was the term of the original lease? 4/48? 3/36? I've never seen a lease that goes much higher then that (the residual falls too quickly.)

SW17LS

Just trade it in. I traded out of my 2010 ES350 7 months early.

You don't need to turn it in early, just trade it like you would any other car. The dealer will help you figure it out.

Call LFS to find out your payoff

TonyGulati

@deilenberg - I did talk to a dealer and they keep saying it does not make sense numbers wise right now, the bank wants 25k - the car is worth 20k apparently. The lease was 39 months.

@SW10ES - My pay off is about 25,092. i am paying about $499 a month on it, not sure what the deal on the RX might be if i go for it.

SW17LS

Well, now lets think about it. The dealers don't have the best heads for putting a deal together, lets put it that way.

How much over the mileage are you now, and are you going to be at the end? What state do you live in, do you get a sales tax break for trading a car (i.e., do you pay full sales tax with a lease where you live).

Have you taken the car to somewhere like Carmax and had another appraisal done?

I traded my 2010 in November, with 42k miles nav, truffle with parchment and I got $25k, but it was 100% mint.

TonyGulati

@SW10ES - Right now I am over 10K miles, I live in NJ, Pay full tax with a lease in NJ which is 7%. No I have not taken it anywhere else but someone i know at a local dealer did do an appraisal using gals which most dealers use and he even said the car is worth about 20K.

Were you over mileage at all? what do you own now?

cossie1600

You might lose 5K now, but you will have to pay more than that from now until November, this is not even including your mileage. Just take your losses and move on. I am not sure how you can go over your mileage by 10K miles

TonyGulati

@cossie1600 - well i was told that if i get a fair trade in at some point, dealer can and might eat the miles, but yes you have a valid point if i stuck it out till november it will be a lot more then 5k now - i was traveling for work 1 hour away at one point and it screwed me big time.

SW17LS

I leased a new GS350 to replace the ES. ES was pretty much on target for miles, the mileage only matters so far as it effects the trade in value when you're trading in vs turning in.

Lets think about this. So right now you owe $2,500 in excess mileage. You won't have to pay sales tax on the amount they give you in trade, so 7% of $20,000 is $1,400. If you turn it in you won't get that. So, thats $3,900 of the $5k difference explained away.

Here's what I would do. Wait until month end. Negotiate your best deal on the RX. Remember, don't negotiate the payments, negotiate the price down as low as you can, then work on the payments. When you're sure that you have the RX as low as you can get it, tell them they need to give you your payoff for the ES.

They probably won't be able to, but they should be able to come up a couple thousand bucks. If you can get a great deal on the RX, and get $22k for your ES. Yeah you have $3k in negative equity in the ES, but $1,540 of that you are getting back in the form of the sales tax credit on the RX, and you owe $2,500 in mileage overage as of today, and thats just going up. You can just roll that negative equity into the RX and it won't hurt the payment too badly.

Once you get down to brass tacks, and they start to see that a deal can happen...they'll work a little harder to make it happen. They just aren't smart enough to see how to do away with the $5k in negative equity on the ES. You might be able to negotiate a little lower money factor on the RX too that will help make up for the difference the negative equity makes in the payment.

After having traded the ES instead of turning it in, I'll never turn a leased car in again.

shaolin

iTrader: (2)

Trading in my 2010 prius lease was part of my deal to get the RX, and the dealer took over the remaining balance + took care of the excessive mileages (est 4k).

TonyGulati

@SW10ES - Thank you for such a detailed response and feedback, i appreciate it. So in other words the $1400 tax credit goes towards whats owed to the bank, if i understand correctly? leaving me with 23k and change owed to the bank. I was told that no matter what happens, the bank will never negotiate the pricing owed. So do you think its possible they will bring it down to 22k? also even then leaving me with 2k difference, i can roll that into the payments, sure but what about miles? i would have to pay that regardless no? sorry if i seem confused, trying to learn as much as possible with others experiences.

SW17LS

If you trade the car in, you are selling the car to the dealer, so there are no mileage overage fees, just like there wouldn't be if you bought the car yourself. You only pay overage fees if you turn the car in at lease end.

When you do a transaction like this everything just goes into the same pot. So you're $5,000 short on the ES, essentially thats $5,000 of negative equity. You get some sales tax savings, thats $1,400 which reduces that negative equity to $3,600. That $3,600 is what you need to try and get the dealership to come up on your value for the ES. Remember, if you turned the car in now you would owe $2,500 in mileage penalties, and that will just go up as you approach the end of the lease and keep using miles. If you turn it in at the end, you'll owe the mileage penalties and not get the sales tax benefit of trading it in.

cossie1600

If the buyout is $20K, you have 10 payments of $500 left. You basically owe $25000 for your vehicle. If dealership will give you $22K in trade, you basically just owe $3K on the car and that is it. Not sure what your overmileage is, but it might come out to be very close. Shop around

TonyGulati

@SW10ES - I got ya, Thank you for the clarification. I just spoke with the dealer, he said there is no sales tax credit for you cause you don't own the car, the bank owns it and they don't negotiate or won't negotiate the pay off amount which is 25k. So they can't do anything now and I gotta wait till march to see if another program comes out and then the dealer said he is going to "attack" my account again. I truly hate dealing with them, its frustrating!

@Cossie1600- Thank you for your feedback, the mileage is 10k over present day. I did shop around, seems like no one can do anything, i even went to infiniti and the guy over there said for a G37 Coupe, he can put me around 459 a month with getting me out of my car.

shaolin

iTrader: (2)

Looks like you're not getting a Lexus or Toyota so my guess they will not help you remove the mileage and payment if you trade in your lease early. I had to convince the lexus sales manager to his friend at toyota to cover my remaining toyota and excessive mileage.

toyota to lexus or lexus to toyota - easier