Super Blue

My RX450H is up on the lease. Contacted Lexus Financial first, they said to call the dealership. Called the Dealership, and they are advising that a safety needs to be done and there is a $550.00 admin fee. I'm ok with the safety, but this admin fee sounds like complete BS.

I'm thinking that I should just get the vehicle safety done at my mechanic and mail a cheque in the amount of the buyout amount plus HST to Toyota Finance Canada.

Any suggestions from anyone having been through the process?

Thanks

Holeecow

I don't have any experience with Lexus directly, but did do a buyout for Infiniti and Ford.
Safety is standard because you're switching ownership from TFC to yourself.
I don't think it matters if you take it to your mechanic or the dealership. I personally think your mechanic is better so he can at least get the business.
From what I understand, the buyout depends on the MFG. Try calling Lexus again and ask them, are dealers allowed to charge an admin fee to end the lease/purchase the car at the end of the lease? If they say no then three way with the dealer and make sure they confirm this.
For example, Ford doesn't allow an admin/buyout fee anymore (they used to in the past) and I had to call the dealership with Ford Credit for them to waive it.
Also, some dealers charge different amounts for their admin fees, (again might be different for mfg) so you might be able to save a bit if you go to another dealer? Sometimes they won't let you go to a different dealer unless you live more than 150kms away or something.
Check your original bill of sale, it might say something to the effect of ' $xxx.xx lease end purchase fee applies'. But that was probably 4 years ago and the rules might have changed?
Hope that helps! All the best!

computerwi

The buyout fee is clearly stated in your lease agreement. The dealer cannot charge for anything beyond this. Remember that taxes will be applied to this fee and the residual amount. If you left a security deposit applied, make sure this is applied to your buyout amount.

Not sure what this "safety" thing is? Never had that before.

Fraser

Not sure if this is relevant but I just bought out a neighbours lease on a 2013 ES350 Technology Package. He leased a new RAV4 Titanium. The Toyota dealer arranged the buyout of the Lexus with no admin fee. I had the safety and e-test done in advance. I dropped a cheque off and they did the transfer and licensing. My total costs were: exact buyout on the lease, HST (damn Ontario), safety ($100), e-test ($35) and license plate and misc Ontario charges ($100).
The dealer said they were sad not to get this beautiful fully loaded car (38,000km) but were happy to lease the RAV4. Based on comparables on AutoTrader and Kijiji, I figure I saved between $10-12k.
Maybe there was no admin fee because of the new lease but I wouldn't think it was a good business practice to charge a fee for a buyout. Not even sure if it's legal to charge an admin fee!!