Most important question: What will my buyout price be when I try to buy it after 1 payment?
Thoughts on the deal?
Is the MF fixed? I got 2 different quotes from 2 different dealers. How can I negotiate this?
I am a bit confused about what these mean: Tax on Collected Items, Capitalized Initial Fees. Anything I can do here to be careful?
Any other dealer shanangans here? Any fees, etc that I can have them remove?
Does the dealer need to co-operate for me to buy out the vehicle Or is it just between me and LFS?
I have a trade in. Its a 2011 Nissan Murano SV with 49k miles. They are offering 5k. Should I do it? Is there any advantages (tax, etc) selling it to a dealership?
This forum is awesome! Hope you hackers can help me take this seach to the finish line.
Im currently lower than this offer with no games in CA
Is the MF fixed? I got 2 different quotes from 2 different dealers. How can I negotiate this?
This dealer is using the highest money factor allowed through Lexus Financial this month
Does the dealer need to co-operate for me to buy out the vehicle Or is it just between me and LFS?
Its between you and LFS after you take ownership of the vehicle
I have a trade in. Its a 2011 Nissan Murano SV with 49k miles. They are offering 5k. Should I do it? Is there any advantages (tax, etc) selling it to a dealership?
There is no tax advantage to selling a trade in as part of a new vehicle deal. Im guessing you can probably get more if you sell to Carmax, etc
Thank you for the response, @Jeff_BeachCitiesAuto !
I am in nor-cal. I assumed if I buy from so-cal with you, shipping would be extra. This dealer is offering 3500$ off. Won’t it work out to be nearly the same? (I saw your offer of 4k off MSRP for this vehicle) Am I missing something?
Thanks, @mhd521. It does seem a bit high. I have free charging at work. So thought of this as a great (smooth on electric engine) commute car. I need a new hybrid luxury SUV. Is there any other that fits the bill that costs much less? I would love to hear your ideas.
This is the hard part. Everything I have read indicates that it is very close to the net cap number. But
LFS cannot give me that number without having a lease first.
The interest component of the 1st payment is something that will be lost as a part of this deal.
Some references:
Another person who did this: Ev 1-day lease buyout - #56 by panchovilla. Perhaps @panchovilla can comment here?
Your adjusted lease balance = (68933.67 - 1213.89) x (1 + .10438/12) = 68308.84 as long as you buy within 30 days. You may need to add an early termination fee plus tax @9.25 on the total plus any other admin fees. You’ll need to read the lease contract regarding early termination with an early buyout. The 10.438% is the interest rate implicit in the lease used to amortize the lease. The section in your lease agreement dealing with the calculation of the adjusted lease balance will refer to it as the actuarial or constant yield rate.
Comment: The base payment is off a little… it should be…
.00434 x (68933.67 + 42652.40) + (68933.67 - 42652.40) / /36 = 1214.32
adding tax, I get 1326.64
If you have good credit (720+), you should qualify for the MF buy rate. The buy rate is free of dealer profit (0% reserves). Check Edmunds and ask them for the MF buy rate plus all rebates/incentives… Lexus RX 450h — Car Forums at Edmunds.com
The capitalized initial fee of 1326.17 is your 1st payment due upfront. This fee was not capitalized. It was paid by the 7500 rebate and the balance was used as a cap reduction. The dealer WS is a bit misleading in this regard. The 693,75 is tax on the 7500 rebate… 9.25% x 7500 = 693.75
None that I can see. License/Title fee seems high.
The buyout is between you and LFS unless CA, like FL, requires you to go through a dealer. I don’t think they do.
You don’t pay tax on the equity if used as a cap reduction. However, I would ask the dealer to cut you a check for the 5K for a couple of reasons…
A car is a depreciating asset. It’s an expense, not an investment. On the other, given the 10.438% lease amort. rate, it’s like earning 10.438% tax free on the 5K cap reduction. But it comes at a risk…
If you total the car, you will likely lose all or part of the 5K.
It’s your decision. Hope this helps.
EDIT: According to the dealer WS, you owe nothing out of pocket at lease signing (DAS = 0).
I’m thinking of doing the same thing. I live in SF Bay area too, my local dealer Putnam Lexus won’t come off the sticker price. Might need to take a trip out to Concord. I was in contact with Jeff at Beach City Autos and still might go that route.
Side note, where is the 7500 ev credit? I don’t see it on your contract, or I’m missing something.
@lexusfan - stop wasting time and just get a better deal with @Jeff_BeachCitiesAuto. Take a cheap flight to SoCal and drive the new car back and unload the Murano private party or to Carmax, etc.
