ALL About Leasing and Buying
Thread Starter
Lexus Test Driver
Joined: May 2014
Posts: 1,059
Likes: 3
From: tx
Trade in, is when you are taking your car and selling it to a dealer.
Lease return is not a trade in, its when you are returning the vehicle after the contract is up.
Although you can trade-in the lease vehicle as well, meaning you can sell the leased car to the dealer.
You can also sell the leased car to an individual as well. Same concept as selling a car that you owe money on.
Lease return is not a trade in, its when you are returning the vehicle after the contract is up.
Although you can trade-in the lease vehicle as well, meaning you can sell the leased car to the dealer.
You can also sell the leased car to an individual as well. Same concept as selling a car that you owe money on.
Pole Position
Joined: Oct 2004
Posts: 3,393
Likes: 4
From: Maryland
Calling all leasing experts, of which I am not...
Thinking about taking over my cousin's friend's 2015 M4 lease (info below). Is this a decent deal?...especially if I seriously want to have the option of buying the car at the end of the lease. Is this residual too high? There was no down payment or rebates at the time the lease was started.
LEASE INFO:
Msrp: $92k
Lease Term: 36 months
Lease Start: 4/2/15
Lease end 4/2/18
Months Remaining: 23 months
Allowed Mileage: 10k/year
Current Mileage: 7700
Payment: $1,121.90 (with NYC 8.875% Tax and W/T Insurance) ($1,022.33 before tax)
Effective Monthly Payment: $1,013.30 (including tax after $2500 incentive)
Residual: $58,542.75
Thinking about taking over my cousin's friend's 2015 M4 lease (info below). Is this a decent deal?...especially if I seriously want to have the option of buying the car at the end of the lease. Is this residual too high? There was no down payment or rebates at the time the lease was started.
LEASE INFO:
Msrp: $92k
Lease Term: 36 months
Lease Start: 4/2/15
Lease end 4/2/18
Months Remaining: 23 months
Allowed Mileage: 10k/year
Current Mileage: 7700
Payment: $1,121.90 (with NYC 8.875% Tax and W/T Insurance) ($1,022.33 before tax)
Effective Monthly Payment: $1,013.30 (including tax after $2500 incentive)
Residual: $58,542.75
Last edited by KevinGS; Apr 7, 2016 at 09:00 PM.
Lead Lap
Joined: May 2010
Posts: 746
Likes: 4
From: NJ
Seems OK with nothing down, one of my salesmen just got the same car (In Yellow...) and I think he's at $915/mo but he traded his G37 in that I do believe had a bunch of equity in it.
I can get deal specifics if you want.
I can get deal specifics if you want.
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Lead Lap
Joined: May 2010
Posts: 746
Likes: 4
From: NJ
friend has a leased toyota (prius) and they're not able to drive any longer. there's still over 12 months left on the lease.
can they get out of the lease without having to pay a year's worth of payments??
does the car have to be returned to where (dealer) the car was originally leased?
any other tips/suggestions would be appreciated.
can they get out of the lease without having to pay a year's worth of payments??
does the car have to be returned to where (dealer) the car was originally leased?
any other tips/suggestions would be appreciated.
Lexus Fanatic
Joined: May 2012
Posts: 68,096
Likes: 3,870
From: Maryland
No, theres not going to be any option like that. Its a financing contract, they're going to get their money out of it one way or the other short of the lessee dying, at which case the lease is terminated.
I would start by calling TFS and getting the payoff, then take it to Carmax and get an offer for it. Good news is TFS/LFS doesn't give you two payoffs like some leasing companies do (one if you trade it in to Lexus/Toyota, another higher one if you trade it in to somebody else, my Jeep had such a thing). If you can get what you need to pay if off from Carmax I would just do that.
You could also try one of these swapalease or lease trader sites where you can find somebody to assume the lease. I assume they probably still have a bunch of miles left, someone may need a car with a bunch of miles for a year...
The other option is to turn it in early, but that will involve a penalty which is roughly equal to all the remaining payments.
But no, theres no way to just terminate it with no penalty.
I would start by calling TFS and getting the payoff, then take it to Carmax and get an offer for it. Good news is TFS/LFS doesn't give you two payoffs like some leasing companies do (one if you trade it in to Lexus/Toyota, another higher one if you trade it in to somebody else, my Jeep had such a thing). If you can get what you need to pay if off from Carmax I would just do that.
You could also try one of these swapalease or lease trader sites where you can find somebody to assume the lease. I assume they probably still have a bunch of miles left, someone may need a car with a bunch of miles for a year...
The other option is to turn it in early, but that will involve a penalty which is roughly equal to all the remaining payments.
But no, theres no way to just terminate it with no penalty.
Pit Crew
Joined: Mar 2011
Posts: 164
Likes: 9
From: Stamford CT & Weeki Wachee FL
First, thanks for this awesome thread!!
First-time lessor here, shopping for twice the car I got last time I financed. Just left dealer after looking at 2013 and 2015 RX350 F Sports. I'm looking to do an L-certified lease.
Salesman hasn't run my credit yet, but depending on which credit bureau they check and which version of the FICO they use, my best number will be FICO Auto 8 of 674. Yeah, not so great. But from the examples in the first post, that's tier 2, right?
So how does 0.0014 MF sound for my credit? We'll see if it changes If/when he pulls my report.
Thanks again!!!
Kevin
First-time lessor here, shopping for twice the car I got last time I financed. Just left dealer after looking at 2013 and 2015 RX350 F Sports. I'm looking to do an L-certified lease.
Salesman hasn't run my credit yet, but depending on which credit bureau they check and which version of the FICO they use, my best number will be FICO Auto 8 of 674. Yeah, not so great. But from the examples in the first post, that's tier 2, right?
So how does 0.0014 MF sound for my credit? We'll see if it changes If/when he pulls my report.
Thanks again!!!
Kevin
Lead Lap
Joined: May 2010
Posts: 746
Likes: 4
From: NJ
First, thanks for this awesome thread!!
First-time lessor here, shopping for twice the car I got last time I financed. Just left dealer after looking at 2013 and 2015 RX350 F Sports. I'm looking to do an L-certified lease.
Salesman hasn't run my credit yet, but depending on which credit bureau they check and which version of the FICO they use, my best number will be FICO Auto 8 of 674. Yeah, not so great. But from the examples in the first post, that's tier 2, right?
So how does 0.0014 MF sound for my credit? We'll see if it changes If/when he pulls my report.
Thanks again!!!
Kevin
First-time lessor here, shopping for twice the car I got last time I financed. Just left dealer after looking at 2013 and 2015 RX350 F Sports. I'm looking to do an L-certified lease.
Salesman hasn't run my credit yet, but depending on which credit bureau they check and which version of the FICO they use, my best number will be FICO Auto 8 of 674. Yeah, not so great. But from the examples in the first post, that's tier 2, right?
So how does 0.0014 MF sound for my credit? We'll see if it changes If/when he pulls my report.
Thanks again!!!
Kevin
Truth? You're probably a 700 on one auto bureau so that means you qualify for Tier 1. Actual tier 1 rate is .00110 but I can mark it up .00040 which is what I suspect they are doing... If you're 740+ it's .00100
If you truly are tier 2 I think it's over .00220 but I would have to look.
Also tier 1 and 1+ = No security deposit.