My parents seem ready to trade in their leased 2023 Lexus RZ450e. I’ve posted in the past about this, but it was too early and still may be. They are on a 3 year lease that ends next summer.
Attached is the Cadillac Lyriq lease offer from the dealer out in the Desert. I have already made a few comments to my parents, but, as usual, it doesn’t seem like a great deal.
I don’t see the $7.5k Fed Tax credit called out - it should still be there AFAIK. Maybe it’s the “discount” but it’s off a little ($7,370).
Black Book Lite suggests $32.7k as average for the trade in of the vehicle. The dealer is offering less than “rough.” The Lexus is in very good condition.
15k miles will suit their needs. Their current lease is 10k miles and isn’t enough.
They show a discount, customer cash & rebates, which are all nice, but the starting MSRP seems high. I’ve asked for trim details.
I don’t know what the “Cilajet” markup is for yet. Theft? Of What?
Thank you for any comments and I will run this thru my calcs to see what I can figure out. Obviously, they aren’t showing much here, not even a MF.
I think Cadillac reflects the EV credit by inflating the residual value, could be wrong though. It is worth becoming a supporter for access to the rate finder, which will show you all these values and what additional incentive they may qualify for.
To a novice like me, this seems like it would be an awful decision.
Of course we are looking for more than what this Cadillac dealer is offering for the trade-in, but some negative equity will have to be absorbed I’m sure.
Any particular reason they are eager to get out of the Lexus knowing they will have to take a bath? Waiting a year to avoid $10k+ in negative is the rational decision.
What is their monthly on the current lease? Might be cheaper to have two car payments than to absorb 12k in negative equity. Does Lexus allow lease swaps?
They don’t like the range on their current Lexus RZ450e (200 miles at best but usually less even with the small 18" wheels). Since my Mom got sick they have to do a lot more driving to doctors in LA (they live in Palm Desert). They ran out of juice last week, though they could have stopped at a station they didn’t know.
The current RZ450e payoff is $40,413, which is more than I expected.
They are looking to trade/buy after Memorial Day, so it won’t be this week or next.
Assuming 24k miles and a 4.5 CR, MMR is $33k-$34k. If they can swallow, $7k in negative, then that should be your target. But it will probably be tough to get.
Assuming there is a year left on the lexus lease, you are looking at $9,960 in remaining pmts which is 2k less than the negative equity you current have. I would just leave this car in the garage as a backup and negotiate the lyriq deal independent of the lexus.
What mllcb42 said. Also, does the lease contract say your parents would be putting down $15k? If so, that’s even more reason to just keep the Lexus in the garage. You’re essentially paying $12k upfront plus 8% interest and 9% tax on that $12k just to not use the car for a year.
A 3yr lease for Lyriq may not be the best given the high MF (>8%). If your parents are open to another brand built on the same platform, you may want to consider an Acura ZDX. With the >$23k+ incentives currently available, you should be able to easily snag one below $500 for 3yr/15k miles.
Correct, if the car functions just fine and is under warranty.
We’ve seen posts here where someone is very underwater on an “older” used car w/ high mileage (so no longer under warranty) that has required a lot of service and will likely require a lot more. That’s a bit of a different situation.
This seems like a bad deal to me. Looks like almost 45,000 for the lease term. Might as well just buy at that point.
I’d just negoatiate out a Lyriq deal. I’ve seen closer to 600 for those then just pay out the lease term and turn in. Or try to get rid of it on swapalease and add some incentives. Will be cheaper.
