kmohager

Hey everyone,

My lease on my IS350 is coming close to an end. I was one of the first people in Denver to get the IS350 back in November 2005 and now I need to think about my options.

I live in Los Angeles now and I need to return the car this November. I wanted some advice from you experts. I really like the IS350 but I don't know if I want to lease again. I think the next car I get will definitely be a purchase.

Most dealers have an early termination program as long as you pick up another Lexus. The main reason why this sounds attractive to me is because my car has quite a few dings since moving to LA. Sadly, people here have a hard time parallel parking and as a result my bumper has many dings and scratches from license plate screws. There are also some scratches on the fender. The wheels are also curb scuffed.

Would I be ahead financially if I just return the car early, thus avoiding payments and wear and tear fees (that's what the salesman told me anyway) and buy another Lexus, or just return my car in November and get something else (not necessarily a Lexus)?

slee18

iTrader: (1)

Do you really want to turn it in early for another lexus?

You will probably get more dings it sounds like. That might save you some money. But in my case i leased a Explorer and it had paint chipping off. They didnt charge me a thing!!!

As long as your not upside down (negative equity)you can trade it in for any other car.

Go to a carmax and see what they would appraise it for. Gives you a better idea of how much equity you have.
IMO I would wait till your lease is almost up and you shouldnt be upside and trade it for a car you want.
Hope it helps.

cssnms

Here's my nickles worth...

Find out what the buy-out is and consider selling it before your lease is up and in the process possibly pocketing enough to pay for the taxes on your next car. The process is no different then selling a car when your bank is the lien holder. Lexus and in particular the IS 350 hold their value in the market with the best of them and my guess is the market value even on a lexus with a few dings or scratches is above the residual value. You may even want to consider having a contractor like Dent Wizard remove the dents before you put it on the market (this is what the dealer is going to do when they resell it). You will get every dime of your $125 back that you spent to remove the dents and probably more. You will probably take more of hit then the $125 on the sales price if you do not have the dents removed. Then go get it all cleaned up - another $75/$100 well spent.

Lexus may agree to terminate your lease early but beware of the fees and they will most likely only agree to roll it into your next deal.

I sold each of my leased vehicles (BMW M Coupe and Acura CL) and made no less then $1000 over the residual value/bank buy-out. Of course I had any dings removed and detailed my cars before hand. The first person to look at each car bought it.

And if you cannot sell it, you always have the option to trade it in. And by fixing the dings ahead of time will probably save you time, frustration and $ when Lexus comes to collect for the damage.

Last piece of advise, when I say sell it I don't mean go to CarMax. Stay away from CARMAX. They will only give you "trade-in" value which is well below what you will be able to sell it for and most likely less then the residual, but even if it is not you will be leaving money on the table if you sell it to them.

Good luck!

Fizzboy7

Agreed. The best financial move is to sell your car privately. You will always net more than what a dealer will credit you. The only reason why I am driving a Lexus right now is because I have slowly moved up with each of my private car sales when my leases were over. It can add up.

kmohager

Thanks for all the replies!

So you folks are suggesting that I buy the car when the lease is up in November? The buyout price is $25K so crossing fingers I won't be negative. I think currently the car is worth $29K-$30K on KBB so I should be OK.

I guess what I need clarification on is if I should sell it now or sell it in November (is it even possible to sell now?).

LSCJJ

iTrader: (3)

negotiate for a cheap buyout price. most of the time, its worth it to buy out.

Regards,

cssnms

No I am not suggeting YOU buy it, I am suggesting calling Lexus financial services and asking them what your buy-out is if you were to buy it now. And YES you can sell it now. Lexus could care less who buys it.

There is no need for you to buy it prematurely leaving you without the option of just turning it in at the end of the lease. Once you know what the buy-out is you can put the car up for sale at a fair market value which you will need to determine through a little research and hopefully that FMV is above your buy-out, if not this is all moot.

If and when you find a buyer and they pay you for the car, send the payment directly to Lexus and they will turn over the title at which point you can sign it over to the buyer.

Whether or not you choose to sell it now or wait until your lease is closer to expiring is up to you, but I would think you would want to sell it during the summer months when sports cars seem to be in more of a demand, plus your not competing with the holiday shopping season and dealer incentives. The other upside is you won't be under the gun and you can afford to feel out the market.