Extending a current lease
Thread Starter
Lead Lap
Joined: Jul 2010
Posts: 3,872
Likes: 280
From: NY
Extending a current lease
Hi,
I'm looking to extend my current lease to see what a 2022 GX brings. I heard many infotainment upgrades. Has anyone extended a lease by say 3 months? Are there any addition fees or will my current payment change?
Thanks.,
I'm looking to extend my current lease to see what a 2022 GX brings. I heard many infotainment upgrades. Has anyone extended a lease by say 3 months? Are there any addition fees or will my current payment change?
Thanks.,
Lead Lap
Joined: Nov 2013
Posts: 4,297
Likes: 1,225
From: IL
Contact Lexus Financial and simply request a lease extension. You will continue to pay the
same payment you originally contracted for and will get additional miles per month matching
your current allowance. Limited to six (6) months, you are still responsible for all the usual
lease ending criteria: damage, missing equipment etc. If you decide at that future date to
buy out the lease your pay off will be lower that the original, you've paid payments and it has
more miles/age. Pretty common maneuver with the shortage of inventory to move into.
same payment you originally contracted for and will get additional miles per month matching
your current allowance. Limited to six (6) months, you are still responsible for all the usual
lease ending criteria: damage, missing equipment etc. If you decide at that future date to
buy out the lease your pay off will be lower that the original, you've paid payments and it has
more miles/age. Pretty common maneuver with the shortage of inventory to move into.
CL Community Team
Joined: Feb 2007
Posts: 9,339
Likes: 600
From: IL
Used car prices are so screwed up right now, I'd recommend taking the buyout, and then selling or trading it when you start the lease on your 2022. You will most likely make several thousand dollars.
Thread Starter
Lead Lap
Joined: Jul 2010
Posts: 3,872
Likes: 280
From: NY
I'll see. Maybe I'll extend my lease and then buy it out if anything. I can still have the dealer buy out my car even if I am still leasing it, they just do all teh paper work I suppose.
Lead Lap
Joined: Nov 2013
Posts: 4,297
Likes: 1,225
From: IL
Your dealer can: a) accept the car you have "turned in" to Lexus Financial or
b) they can aid with your "Buy Out" where you pay it off and take it home or
c) they can "Buy Out" the car for their inventory.
b) they can aid with your "Buy Out" where you pay it off and take it home or
c) they can "Buy Out" the car for their inventory.
Thread Starter
Lead Lap
Joined: Jul 2010
Posts: 3,872
Likes: 280
From: NY
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I plan on extending my 2022NX six months to lower the buyout. Unfortunately was told by Lexus financial you don’t get the entire monthly payment x number of months extended reduced in full from the buyout. It’s a portion of the monthly payment. I’m going to wait and see the exact amount. If it’s something ridiculous won’t even extend, will just purchase.
Was also told couldn’t get the exact figures until lease ended and I called to extend. Kinda sucks. Audi reduces the buyout the entire amount of the extended monthly payments.
Was also told couldn’t get the exact figures until lease ended and I called to extend. Kinda sucks. Audi reduces the buyout the entire amount of the extended monthly payments.
Last edited by RobF; Nov 25, 2024 at 05:09 AM.
Lead Lap
Joined: Nov 2013
Posts: 4,297
Likes: 1,225
From: IL
Updated information from our experience. I previously wrote that Lexus Financial Lease Extensions were
limited to a one (1) time six-month term. Turns out that we could (and did!) get another six-month extension.
In IL the sales tax is based on the original sales cost minus the residual (tax on what you use, not entire car).
When calculating the extension(s) they include the tax you would have had to pay on a 3 1/2 or 4 year lease
if you had chosen that term originally. Our payments went up $35/month. As with RobF's Audi experience
our residual payoff amount went down almost dollar for dollar for the 6 and then 12 months we extended.
We enjoyed the very favorable "money factor" (interest rate) from our Sept 2020 transaction. Interest rates
available for the buyout loan in 2024 were rather higher because of both current market rates and the usual
structure of Used Cars having higher rates than New Cars. In this case it was well worth it because we were
able to buy out an original MSRP $54K car that had a $29K residual at 3 years for $24K! Blue Book on it
with 33K miles was $31K so all's well for now.
limited to a one (1) time six-month term. Turns out that we could (and did!) get another six-month extension.
In IL the sales tax is based on the original sales cost minus the residual (tax on what you use, not entire car).
When calculating the extension(s) they include the tax you would have had to pay on a 3 1/2 or 4 year lease
if you had chosen that term originally. Our payments went up $35/month. As with RobF's Audi experience
our residual payoff amount went down almost dollar for dollar for the 6 and then 12 months we extended.
We enjoyed the very favorable "money factor" (interest rate) from our Sept 2020 transaction. Interest rates
available for the buyout loan in 2024 were rather higher because of both current market rates and the usual
structure of Used Cars having higher rates than New Cars. In this case it was well worth it because we were
able to buy out an original MSRP $54K car that had a $29K residual at 3 years for $24K! Blue Book on it
with 33K miles was $31K so all's well for now.
Lexus Champion
Joined: Apr 2007
Posts: 11,030
Likes: 97
From: Southeastern PA
I plan on extending my 2022NX six months to lower the buyout. Unfortunately was told by Lexus financial you don’t get the entire monthly payment x number of months extended reduced in full from the buyout. It’s a portion of the monthly payment. I’m going to wait and see the exact amount. If it’s something ridiculous won’t even extend, will just purchase.
Was also told couldn’t get the exact figures until lease ended and I called to extend. Kinda sucks. Audi reduces the buyout the entire amount of the extended monthly payments.
Was also told couldn’t get the exact figures until lease ended and I called to extend. Kinda sucks. Audi reduces the buyout the entire amount of the extended monthly payments.
But even if they did, what is the benefit to paying additional monthly payments equal to the reduction of your buyout?
Lead Lap
Joined: Nov 2013
Posts: 4,297
Likes: 1,225
From: IL
Payments usually are both going to reduce the principal and to pay the interest of the loan.
If you wish to be shocked and depressed look at the actual principal reduction of your mortgage
payment in the first 10 years... $2000 in interest and $350 in principal payment...
In this lease thread, the residual or final buyout was computed as a percentage,
Example: New car was $50k, residual (based on mileage) is $30K, you pay the $20K + tax.
What I found was that our extension payments were going almost entirely to paying down
the final purchase cost. Wished I could have strung this out a couple more years at the
highly favorable 2020 cost of money.
If you wish to be shocked and depressed look at the actual principal reduction of your mortgage
payment in the first 10 years... $2000 in interest and $350 in principal payment...
In this lease thread, the residual or final buyout was computed as a percentage,
Example: New car was $50k, residual (based on mileage) is $30K, you pay the $20K + tax.
What I found was that our extension payments were going almost entirely to paying down
the final purchase cost. Wished I could have strung this out a couple more years at the
highly favorable 2020 cost of money.
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Mar 24, 2007 07:05 AM