cbriceno35

Hey everyone,

Brand new to the forum here. I had a quick question in regards to my current lease situation and looking for some advice so here goes:

I leased a base model 2016 IS 200t back in July of 2016. My lease agreement was for 42 months at 12k miles/yr (42k miles total) for $396 per month.

The issue I'm having is that currently I'm about 1800 miles over (43800) with roughly 8 months left on my lease.

One small thing I should mention is that during Hurricane season here in South Florida, I was able to postpone two payments till the end of my lease, so technically I have 10 payments left.

I see two possible scenarios: 1) I attempt to turn the car in early and deal with the rollover payments into my next lease or 2) I keep driving the car (while adding more miles overages) till around Nov-Dec in preparation for the December to Remember event and see what they can do for me until then?

What would you guys suggest I look into?

pizzafan

Not guaranteed, but you will likely be able to turn it in 3 months early without penalty if you lease/finance a new Lexus -- that will help reduce the over-mileage.

What is the residual?
What is the current payoff?
What have you been offered for trade-in value?

Given these cars haven't held up in price on the used market, I'm guessing trading it in early won't make sense -- trade-in offers will be much less than current payoff.

For the dealer, taking the car, and giving you a new car is two seperate transactions. It should be for you too, otherwise they will f you over by mixing the numbers.

cbriceno35

Current buyout is around $24.6k. Don't remember what the residual was unfortunately.

GaryJG

Unfortunately you won't get anything close to buyout. I tried to do that with my leased 2017 is200t. My buyout last month was $25,000. The most I could get was $23,000 and I only have 18,000 miles.

Even if you can turn it in 3 months early your excessive mileage fee will cost you roughly $2000, based on your current average monthly miles. Plus you will still owe the two months in arrears.

GaryJG

Dealers don't "eat" anything. When Lexus (or any car maker) says they'll pay the remaining payment, they really mean they'll factor it in on your new car. Same goes with excess mileage from lease. It's usually in the form of additional down or few dollars tacked onto monthly payment. When they say they'll waive the last few payments, that really means they'll recalculate it and not charge you penalty for ending lease early.

JDR76

Lexus will waive your last 3 payments if you buy or lease another new Lexus. It isn’t recalculated or added to your next lease or purchase. I just went through this when I returned my GS 3 months early.

GaryJG

I understand what you are saying but what I mean is that if the dealer either "pays" some remaining lease payments or excess mileage they are not eating anything - the buyer is because at least in theory that same amount of money would have come to you as a better deal.

JDR76

It’s not the dealer. It’s Lexus Financial that waives the last 3 payments.

GaryJG

when the dealer pays Lexus Financial the remaining obligatory contractual payments, that money ultimately comes from the lessee of the car that was returned early. The money for those remaining payments will likely be setup to come-in over a greater period of time equal to the customer's new lease term (e.g. 24 months). And the dealer will calculate interest on the remaining amount owed and be figured-in to the new car lease payment to compensate for the use of money that goes to payoff the lessee's debt obligation on the old lease. The tail-of-the-tape is: You can bet your bottom dollar that the amount of money still owed on the old lease vehicle that was returned early will most definitely be tacked-on or rolled into the leasing payment for the new car being leased. The remaining payments on the old lease are not just forgiven...or paid by a Good Samaritan.

Either way, he's in a mess. If 3 months of payments are "waived". The amount, which roughly $1200, will be added to the floor during negotiations. Also the mileage overage is never waived.

cbriceno35

Totally understandable.

To be honest, I'm in this kind of mess because of how much I had to drive for my previous employer. I worked freelance for Fox Sports and had to drive roughly 70 miles a day about 3-4 times a week (Miami to Fort Lauderdale). That kind of mileage started adding up quickly.

Luckily last June I found a new job that was way closer to home (about 14 miles a day). So even though I'm over miles at the moment, the amount of driving I am doing is substantially less than before.

I had contacted a nearby dealer and let them know of my situation. I told them I was interested in flipping into a base model UX 200 and they came back to me with 48 months at 10k miles/yr plus $1300 due at signing for $480/month. Definitely out of my budget.

Hopefully waiting 1-2 more months while only driving the car to and from work will help bring the cost on a new lease a tad bit lower. Ideally, I am aiming for 36-42 months with 12k miles/yr, some reasonable down payment (no more than $1200-$1500) for about $430-450/month.

Let's pray for a miracle.

JDR76

When you’re 3 months from lease end, you get a letter from Lexus, with basically a coupon code. You bring that to the dealer and the dealer provides that number to Lexus Financial to forgive those last 3 payments. The dealer never pays them.

When I bought my current GS, I first negotiated a cash price for the GS, then did the lease turn in. Those last 3 payments were waved and not factored into the new car.

For the OP, your best bet is to strongly negotiate your next car and work through that penalty in your negotiation. Good luck!

premier3IS

Situations like yours should always be factored in prior to making a lease. If not, this is what you fall into.

Also, try for 0 down payment on your next lease. The down payment you put in is just lost money end of day, and you'll see many people on the forums typically suggest to go for 0 when leasing.

cbriceno35

Oh trust me, my job situation would've definitely been a factor when I was at the negotiating table but I was actually hired about two months after I leased the vehicle.

Had I known that I would be driving as much as I did, I would've requested the 15k/yr and would have had a little more wiggle room. Unfortunately, this wasn't the case.

I do plan on trying to get as close to $0 down on my next lease but within reason. I just can't really afford anything higher than $450-$480 a month.

E46CT

Yep. Lexus *WILL* eat 3 months. A dealer can also eat whatever they want at their discretion, particularly if they're trying to move a unit. There's no hard and fast rule that dealers/finance companies/ etc won't "eat" anything. But yes I hear what that person is saying. You have to becareful of dealers *SAYING* they'll eat something but simply rolling it over. It's a pretty vast spectrum, just make sure whatever you do is in writing before you sign anything. Simple as that.

As far as OP, look, either way you are LIKELY going to pay. Either for over mileage or an early trade in on a negative equity roll over. You MAY be able to get your mileage waved PLUS 3 months or whatever months taken off if you lease/purchase a new Lexus. Best thing to do is talk to your dealer.

As far as 0 down, you can always do it as long as you meet credit. Never be afraid to *DEMAND* 0 down or 0 drive off as a pre-req.