Hi,

Am really new to this forum, so apologize if this topic has already been discussed earlier. My colleague is looking for someone who can take over his IS250 lease. He is exactly at the half way mark of the lease term, both in terms of duration and mileage. Its a 2010 IS AWD base model, 36 month, 30k miles, $420 per month lease. The current buy out price is 29800 and the end of the term purchase price is $23700.

My questions are,

1. Firstly, is it a smart thing to opt to take over someone else's lease?
2. Is there value is buying out the car right away and is there scope for negotiation with Lexus financial?
3. Is the $420/month for 18 months a good deal?

I was actually looking for a used Lexus IS (2007 or 2008), but I notice that the cost of those cars are only slightly lower than the lease take over offer above.

Any advice is much appreciated.

Thanks

 

It all depends on your situation. If you are looking for a short term solution, lease assumptions work. You can usually get in pretty cheap and without any down (capitalized reduction). You'll have to qualify with Lexus Financial and it usually costs about $500 to assume a lease. Not sure how much Lexus charges. For pricing comparisons, take a look at swap-a-lease or lease trader. That will give you an idea on pricing and if your friend got a good deal. Also, a lot of people who are looking to get out of a lease will buy down the rate on these sites. So you might be able to get your friend to pay the lease assumption fee. He's still saving the listing fees if you don't use these services.

You are also getting an 18 mo old car verses something that is 3-5 years old. If you don't like it, you just walk away after 18 mo. If you like it, you can always buy it. Check the contract to make sure you can buy it for the residual value on the lease.

Also, no worries on the warranty and you can always buy the extended warranty before the existing warranty ends (if you end up buying the car). If you're going to purchase an extended warranty from Lexus on an 07-08, you are buying some time here as you can delay this purchase.

One other item to be aware of is that there is a lease turn-in fee. Check to see how much it is. They will usually waive it if you buy the car or if you do another lease or finance with them.

 

I got a lease in 2008 on my IS250. As of last week the term was up and I only had 17,000 miles on it so I bought it out. The residual was far lower than the retail price so it made sense for me. It just all depends.

 

If youre trying to do a lease transfer with someone through lexus financial services... good luck! I tried to transfer my lease to someone last year and they simply dropped the ball and wouldnt cooperate. They kept "losing" our paper work, even after we over nighted it to them. It's $200 lease transfer fee through LFS, and it can pan out in your favor if you do assume the lease. Good luck