I myself have pondered this scenario. Sorry to hijack, but If the original owner put down MSD’s, I’m assuming those will be transferred to the new owner? Or will the respective financial company refund the MSD’s to the original owner, and recalculate the new owners payments if the lower MF is no longer without the MSD’s.
Is that a Lexus thing? Or do most manufacturers do the same thing.
But back to your OP. Seems like a good deal Using the 1% rule.
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I think all manufacturers let you do this, but I may be mistaken. One of the major negatives would be if one returned a Challenger Hellcat to a Dodge dealership in Alaska- extreme case I know, but how long do you think that car will sit for? So I’m assuming every manufacturer participates in this practice, within a reasonable/regional area. Hopefully somone with better knowledge can clarify.
Yes, most manufacturers allow it, but the rules are different for each one. For instance, I was looking at a Cadillac ATS-V takeover, but the car was in Florida and GM will only allow transfers within the same state. Lexus allows them to transfer to a different state.
@anon98469396, i assume it’s this car:
I dont recall which thread it was but i recently replied to someone about this topic and wrote in detail about the issues with Lexus financial lease transfers. Maybe you can do a search on this forum. Basically Lexus lease transfer takes a long time with no updates given and you might not even get it at the end.
The good thing is that given the monthly payment, the guy probably put a ton of $ down and it appears he doesn’t care to loose it because he’s not asking to recoup any of it. You do need to find out if he paid any MSDs because that’s a tricky subject.
On a side note, you do have the option with Lexus to extend a lease for 6 months at the same payment, so if you like the car you could keep driving it for another 6 months. Just a thought, it all depends on the miles driven and warranty coverage too. You’d have to do your research.
I personally have had great experiences with lease transfers on the BMW side, but i saw the hell my friend went through with Lexus so keep that in mind. See if you can find my posts about the subject.
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i found my previous post about this subject (toyota and lexus have pretty much the same transfer process):
Thank you. I’ll take a look and verify the MSD question. I’m also going to call Lexus Financial and get as much info as possible. That is the car I’ve been talking about.
@anon98469396 btw…i would feel out the seller if he’s willing to pay or at least split the transport cost, tell him you still have to pay the disposition fee, transfer fee etc. Doesn’t hurt to ask. The car is located in DE, not exactly a hot market to get rid of a car.
@anon98469396 when you speak to Lexus Financial, have them explain to you the lease return process, inspection in particular. I can tell you from experience that they inspect the car a lot more closely with Lexus than with BMW. BMW is pretty good about damage and let you get away with a lot more than Lexus. But it would be a good question to ask them since you’re new to this.
Not saying this to scare you out of it, just to let you know ahead of time so you can prepare and go into this with as much knowledge as possible.
Thank you. That’s exactly the kind of information I was looking for. I will ask about splitting the cost. The good news is, I have my 335i until May 5th, so I have some time to get through the process if it does stall. I do take very good of my cars, and treat them as if I own them. I even follow the break in instructions, because I don’t want to be that asshat who hoons the car with 10 miles on it just because I know someone else is going to get stuck with it at the end of my lease.
Yes, the Lexus looks like a solid deal 
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It was mentioned this lease has platinum scratch and dent protection. So maybe you would be ok with a few scratches lol!!
@vhooloo is right , the protection plan should take care of most damage, I completely overlooked it.
@anon98469396 make sure you pull a car fax and/or have it inspected to ensure that this car didn’t have an accident
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I would look into taxes, it might end up costing you a significant amount. Just because the $642 a month includes taxes in his state it could mean nothing to your state.
That is a good point. I had investigated that and found two different answers. I called Lexus Financial, Swap a Lease, the local BMV, and the state tax office. I was told that either:
A) the taxes would stay the same as it was still owned by Lexus Financial and the taxes were rolled into the lease at the time of inception so a transfer to a new state would not matter
B) I would pay the difference between the Delaware “documentation fee” (which is their version of a tax on vehicles) of 4.25% and the Indiana tax of 7%. The monthly difference would be approximately $15/month in this case
It seems like after two hours, someone should be able to give me a solid answer, but I guess that shows how convoluted our tax system is.
It’s a monumental pain in the ass. I swapped out my BMW from to va to md, and I spent 3 hours on the phone and getting a definitive answer from BMW, md, or va was almost impossible. I did find out the key question that needs to be asked is does the state the car is being transferred to recognize tax paid in the state it’s coming from.
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After quite a long time on the phone I have found out that I will have to pay the difference ($15/month), but Indiana would give me a credit for all taxes paid in Delaware, so I won’t get hit with a large tax bill for taking over the lease.
This is a great deal, I would jump on it and try to cancel the 7500 wear and tear and get my money back lol
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Thanks. Are you generally able to cancel these things? I’ve never been a big fan of them, and it if it could cover some of my transfer costs, it would be worth it cancel it.