atomarchio

I am 2 years into a 3 year lease with 2011 RX350 AWD Navigation.

I am thinking of extending the lease as I will have 4,000 to 5,000 miles and the lease payment is very low (under $400).

How does Lexus Financial calculate the new lease payment should I choose to extend the lease? Could it go down even further from what I am paying now?

If anyone has done this and can help me calculate what the new payment would be should I extend? They said I could extend another 12 months max.

Please let me know. Thanks.

Scott1258

Just give Lexus Financial a call and they will tell you exactly what your payments would be.

EMSLEXUSRX

If I'm understanding you correctly, you're just extending the lease, not buying out the lease, correct? I always thought when people extend a lease beyond the agreed-upon time, that the payment stays the same per month until the lease is completed at the extended time. For example, if you want to extend your lease for five or six months, I would imagine your payments would stay the same, but your buy-out price would probably change also. The buy-out price should also decrease.

atomarchio

That's what I thought also. However, when I called Lexus they said the payments may decrease should I chose to extend. They would not give me exact amounts though until it gets closer to end of lease within 2-3 months.

That's why I am checking here to see about how much it may decrease if other people have done this.

User 41924

This is an interesting question. It never occurred to me that we COULD extend a lease! It makes sense, but I had never thought about it, so I'm really glad that you asked this question! I'll be very interested to hear how this comes out. I'm sure the amount of change will depend on the terms, values, and current rates. Assuming these all remain the same (who knows!), I would look for a significant drop in the payment.

Although we are calling it an extension, I would think it is actually a whole new lease with different depreciation, residual values, lease rates (cost of the money), and maybe the duration and terms. Theoretically, you will have paid for the first 3 years of depreciation with the current lease. Subsequent depreciation should be a lot less, so you will actually financing a smaller amount of money. Your payments should drop accordingly, assuming the length of the new lease and the lease rates are similar. My guess is that the Lexus Financial folks won't quote a new payment, because they have no idea what the cost of money will be in 2 or 3 months.

I would like to hear from others, to know if my thought process is close.

atomarchio

I called LFS and now geting totally different story. They said my contract does not even have a lease extension as an option. The only way I could exend the lease is if I had another RX on order and was waiting for that car to arrive.

Then she said I will be contacted by LFS within 3 months of lease end to discuss options. Based on this call, it does not sound like that's an option.

Of course if I call back next week, I will get another completely different story. I love how they just make these scenarios up each time.

EMSLEXUSRX

atomarchio, I've never heard that you had to already line up your next purchase before being allowed to extend a lease. My mother was able to extend a lease on a Toyota vehicle. This was back in 1999 or 2000.
She extended it for either six months or a year and she didn't even buy another Toyota after that. She bought a different vehicle after. I would try Googling info about this.

atomarchio

No need to bother. Clearly the LFS rep I talked to on the phone was lying for some reason. I've extended leases in the past and know of other people that have also.

Just wanted to point out here how you get a different story every time you call them. If I called LFS again today, they would make up something else.

morphh

There will be a penalty fee for extending usually of one month payment or close to it to extend, but are u planing to buy it out? If so some companies will do a lease to own,

atomarchio

I might the buy the car. It depends on what it would cost to extend the lease. They've told me on previous calls that I could extend the lease for another 12 months (at 2-6 month intervals).

What do you mean "some companies" will do lease to own? I am leasing with LFS so I would be subject to their terms.

I've never heard of the penalty fee. How much is that?

morphh

U have a written contract to bring the car back after 3 yrs, well u want to nil and void that to keep for another year, to write new contract up, they might not but its about almost one month of payment to do that extra paper work, but not all companies do that. ask them first. ask if they have a lease to own..

bextreme1

I just extended my lease this year. Here are the facts about extending: LFS will extend your lease for 6 months only. You need to tell them you are considering a new one but want to wait for a bit. You should be somewhere near the end of your lease, say within 6 or 7 months. NOTHING changes with your payment. Your residual(buyback) goes down every month. Mine went down 2k and I ended up buying the car in November.

I don't know where everyone is getting their info but it sounds like they are trying to get you into a new one. BTW, my dealer took care of everything with my financing and even saved me costs associated with the title changes.

atomarchio

I was not aware the dealer handles this. I've been calling LFS directly and perhaps that is part of the issue I am having. I've been hesitant to call the dealer because I am concerned about getting even more inaccurate information.

Is the dealer also involved should I decide to buy the car at the end of the lease?

Thank you for the information.

bextreme1

I called LFS to extend the lease and told them what I wrote above. Then when I wanted to buy the RX I called the dealer and they handled everything. They got me a better rate from a bank than what LFS had. Bottom line is that you can extend your lease for 6 months and you can either use the dealer to buy the car or go directly to a bank or finance company.

atomarchio

When I first called LFS before posting, they told me you could extend the lease 6 months twice for total of 12 months. Has anyone done that?