Just a reminder to check in with your financing company about potentially extending your lease if you can’t match your current monthly payment. I am on my second 6-month extension with TFS ($141/month on a taco from @derekoh1991). Looked like the market was coming back these last few months but I’ve had zero luck closing a deal.
Hope this post helps at least one rookie like me.
Already extended my pilot lease just yesterday but I know market not coming back anytime soon so I’ll be buying it out comes October.
Just called BMW FS yesterday. They mentioned 2 months regular extension, and 4 more if you have a pending order number.
Looking into the possibility of extending a lease is a great tip, albeit you are probably preaching to the choir here.
However, what you do with that extra time is just as important. I do not believe simply waiting for the market to improve is any strategy. That’s just hoping and praying.
IMO the best strategy in this situation is to look for vehicles that you’d be comfortable financing if the lease programs aren’t better (and to order such vehicle when ordering leads to a greater discount).
keep in mind with lease extension that you gotta pay for car registration. so we have a 3 year lease that’s about to end, and now I’m rethinking extension because I get a 2 month extension from BMW for my X5 (paying $705/mo), but I gotta pay for a full year of registration
Just transfer the registration to your next car
Not an option in all states (ie TX)
How did you do a second 6 month extension with Toyota Financial Services? I currently have a Lexus lease ending end of year. Is it possible to extend two times? I thought they only did one 6 month extension.
Not sure if it varies amongst captive banks, but payments paid towards lease extensions may not drop the buyout price
Yeah, you may just be kicking the can down the road
If you have a lot of equity with a Tfs loan many times it’s better to just pull that out now and put it towards the new one, or get a check. If the new market improves you’ll likely lose equity as the used market will also fall. Many times it’s a wash. Also with extensions you’re not paying down the residual any further.
I recently got a client $6000 of equity on a rav4 le lease they got from me 3 years ago. They upgraded to a high xle and are paying less then $400/mo. Their local dealer offered them a new rav le for 500/mo if they returned the rav to them, basically they were stealing the equity…
You’re also usually out of warranty as well so there’s some risk there as well
Extensions w/ TFS do reduce the rv, or as of the two (6) month extensions I did last year they were reducing the rv / buyout price.
I didn’t know that. I thought all companies froze the residual on extensions. That’s def good to know and has to be factored into your decision
How did you do a second 6 month extension with Toyota Financial Services? I currently have a Lexus lease ending end of year. Is it possible to extend two times? I thought they only did one 6 month extension
At one point I think mostly due to Covid they were doing two (6) month extensions though I am pretty sure they have now dialed it back to one. If your lease isn’t ending for another 6 months and you can get one 6 month extension then…sounds like you’re good till the middle of next year.
You think deals would be great end of December when my lease ends or just do extension for 6 months and take my chances next summer? Id really want to get into an EV if possible with a new lease.
We’re just getting into the let’s speculate about the market 6 months from now territory. Since we’re going down this path one component is interest rates are unlikely to be too much lower by then so we have to get to a good deal through other variables. It’s unknown what production will be so it’s hard to know incentives or rebates at this time or how much inventory is in inbound or in the lot.
If your going to shoot for a good deal in December, start around Dec 10 and narrow your focus and either make a really agressive offer from the 20th onward and if they take it, great, if not see if your phone rings the last couple of days of the month and obv do the math on what you’d be willing to take. The later you wait the less particular you can be on options, trim, & colors.
I’m not sure if I want to buy it out that’s why I extended it my payment is super low compared to new lease