Not sure if this is the correct forum but my wife's lease is ending on her 07 RX350. She only has 19k miles on it and it's in near perfect condition. We're considering buying it at lease end but there are so many good car deals out there we're torn about going with something new.

We're also toying with trying to sell it privately, which we've never done. I know we have a nice chunk of equity if we sell it but we'll probably lose that if we use it for a trade on a new 09. We also aren't sure if it's worth paying quite a bit more for an 09 that is basically the same car.

Anyone else going through this process? Thoughts? Any experiences with selling a used Lexus privately? Is the mid-model update to the 09's worth even considering?

Any idea if the 2010's will be priced at the 10% premium many have been predicting? What is your gut telling you about if/when they'll need to discount those due to the market conditions?

Thanks in advance!!

Jay

 

I think it depends on what is most important to you. Is it financial? Is it knowing you have a great, reliable vehicle? Or do you really value having the newest model? I personally don't see much reason to switch to an '09. You'll get a vehicle that is very close to what you have but you'll have to shell out a fair amount of money to get the newer one. If you really like the '10 and have money to spare, go for it. Why not try to get a really good deal on buying the one you have now? The dealer might accept a lower price as they will have to get rid of it if you turn it back. Financially, I think that makes the most sense if they will deal with you. I doubt it makes any sense to buy the one you have and then try to sell it. The dealer can sell it for considerably more than you can so it seems unwise to try that, especially in today's market. It's all about supply and demand, which is good if you're buying and not selling.

 

Thank you for the input Dave. That's pretty much my thinking. My two main questions (if I don't go with an 09) are:

1. I believe that I can get the car sold at the lease end for a few thousand more than I owe on it AND get someone a great deal. I'm seeing these cars with double the miles going for $32k - $34k and we would probably look to sell it for about $2k below that (again with many fewer miles). That could possibly be a win-win for someone looking and we can get some $$ back. Still not sold on this idea though.

2. I posted a thread a while back asking if anyone had any experience with lease end negotiations with LFS. No one had anything to say other than "Tried and it didn't work". I got a call from them last week to discuss lease end options and I thought maybe they were going to offer something but they didn't move. I will try again until the last day but I'm not expecting much from this. I was hoping someone, anyone could provide some positive experience with Lexus Financial on a lease return negotiation.

Thanks again!!

Jay

 

Go down to your dealer and express your desire to buy or lease another vehicle, this is what they understand. Do not expect them to jump for excitement because you only have 19k miles on your return. You paid for more miles but you did not use them. If you turn it back into Lexus they will charge a premium to the new owner for the lower miles. Lexus is in the to make money!

If you really like the vehicle, I would buy it as it makes sense rather than getting into a new lease where you do not use your allowed miles. There are lots of good miles left in your current unit and think of the moeny you will save after it is paid for!

 

Yes, I wasn't even thinking the dealer would have any impact on the lease return. The only thing I think we have as a bargaining tool with the dealer is if we use it as a trade-in. I believe we would probably make a few thousand less this way as opposed to selling it ourselves privately.

We are definitely considering buying this at the end of the lease. It does make a whole lot of sense. It's just that there are so many darn good deals out there it's hard to pass them up .

My guess is - we buy the lease out, get an extended warranty and add an iPod/Sat hookup. Then I think we'll be very close to an '09 in terms of features and we'll save some decent $$. It sure would be great to see if anyone had any luck with negotiating a lower buyout price on their lease with LFS though.

So far, no one has communicated that they've had any luck. I'd love to hear a success story or two . . . anyone???

Thanks again for the input. You all are helping to refocus my views on this whole thing.

Jay

 

In this market, there is always the danger of the vehicles NOT selling. Just because online cars, autotraders, etc. show that they're listing for $x, it doesn't mean they're selling for that much. Also, those prices are close to "retail" so for you with private sale, you won't get even close to that. If you like the vehicle and wouldn't mind keeping it if a sale doesn't go through, then go for it, but if your whole thought is to resell for money, you'll probably end up getting the reverse. Just my $0.02.

 

Everyone's experience might be different due to their local market conditions. It is up to you whether you will keep this RX or move on, how much this RX is worth to you, and how much money you want to spend. What you can do is place a classified ad to get a feeler of what you could sell it on your own, and shop your local dealers for their best price on trade in.


If you cant find anybody giving you at least 30K for it then might as well keep it.

 

Hi Kostyan. That's pretty much my exact thought. I think I would target $30k for the car or just buy it our ourselves.

I'm also thinking that I may wait as long as possible to discuss the lease turn-in as it sounds like there might be some worsening news for the car companies in the short term and we may be able to negotiate a lower buyout. I'm not hopeful, just thinking a bit ahead.

Thanks all for your input and please keep it coming!

Jay

 

I'm going through this same decision with my 2006 GS. I'm pretty certain at this point that the lease end buyout price is part of the binding lease agreement and can not be negotiated, period. This is basically what I was told when contacted about my lease end options and intentions. I also get the feeling that the dealer does not want customers to buy their leases as that does not directly benefit them while leasing/selling a new/used car from their lot would.

 

That's for sure! My understanding is that Lexus has lease end insurance so if the residual is less than the value of the car, the insurance company eats the first portion of that and then Lexus would pick up the difference. So it seems there really is no reason for them to negotiate on the lease buyouts as they really aren't losing money unless the numbers are wayyyy off - and I don't believe they are in my case.

I'm still torn on what to do so we extended our lease for up to 6 months with no further obligation. We can turn in any time and if we do so before the next billing cycle we won't have to make that month's payment. They add the annual mileage/12 and increase the allowance by that much and a large portion of our payment actually goes toward reducing the buyout. They way I figure it is this, I can't justify paying $10k more for a 2009 (even though it's a great deal, it just seems like it's not worth the premium at this point) so unless the prices just fall off a cliff then we'll buyout if we are looking at the same model- we only have 19k miles so that appears to be a no-brainer.

However, the 2010 RX looks pretty neat. Not 100% sold on it but if we look at a lease on the thing we might be tempted to bite. My main concern is that the leasing options seem to be pretty dismal at this point but since we have the extra 6 months to see what happens I'm not as worried about it.

Jay

 

Its really hard to sell nice high value used cars. The problem is that most buyers require financing and they can often get lower payments buying a new one or a used one from a dealer.
I have sold several late model used cars in the Denver metro area and have been lucky if I've even been able to get the trade-in value for them.
I've turned down low offers, only to wish I had taken them months later when no one else called. Just something to think about.
I have also used this knowledge to buy extremely nice used cars from private parties at very close to the trade-in value. The first time you call them they won't sell at the trade-in price. Call them back 2 months later and they're all over it. Bought my Porsche that way.

Dave S.