I know, I know, I’m not planning on doing it and most likely wouldn’t, but just curious how it works if you purchase the car AFTER the lease. Do you still pay taxes on that amount or is the buyout including taxes and everything? I’m assuming no, since of how leases are structured. Thanks in advance for the dumb question 
Cheers,
Phil
You will pay taxes on the residual amount in most situations (not sure how it works where they paid tax on the entire sales price like TX). Not sure if it’s determined by state or by the financing bank, but some buyout prices include tax while some do not.
As Jon said, unless the tax was paid on the whole car when you first leased it, you’ll pay the tax on the buyout, either to the lender (and they might not charge the full amount) or to your DMV when you register the car. Almost always, the tax has not been paid on the residual and purchase option (usually a little higher than the residual for the purchase fee). If the lease was a 24, 36, or 48 month lease, the license fees will be due (unless you already paid them).
Look on your lease contract to see what you can find out. There’s a small chance that if your residual is above the wholesale market for the car, you could negotiate with the lender to buy it for less than the normal buyout. This opportunity seems to have gotten pretty scarce.
Will do, i was going to try and do the CarMax/see where you are at kinda thing (Location&Brand: California, Lexus Financial). But if you tag tax on top of the buy out, its probably not worth it, but we will see!
Okay, so I’m assuming you’re in CA, which means the residual has never had tax paid on it.
Some lenders won’t give the same payoff to another dealer as they will to you- so I’d suggest calling them to ask. Also ask if the buyout is negotiable (I seriously doubt it). You can get an instant bid from Carvana, and a quick one from Vroom and KBB affiliated dealers as well. Look up the trade in value on KBB. It’ll be an optimistic number (I think), but if it’s well below the residual, you’re sunk.
The buyout price on LFS doesn’t include TTL. The price is also the same for you or a 3rd party (ie Carmax, Carvana, etc).
What does KBB say the trade in value is? What’s the residual?
Gotcha, sunk in the aspect of dropping the car off at the dealer and paying disposition fee? The lease is up Sept 4th, i’m not only like 5 months into it 
I’ll get you the residual/buy out probably by tomorrow. I kinda have a feeling its not going to be worth more, but always good to try for 30 minutes of my time 
I meant sunk in regards to not having equity you could pull out of it or buying it for a below market price.
If you turn it in, there can also be charges for excess wear and tear (including well worn tires), and excess miles. If you got an excess wear and tear policy, that could help. If you’re over on the miles, it could be worth it to turn it in now and stop the excess mileage charges from continuing.
Gotcha, i’ve been seen a lot of posts on other forums with people 8 months in and they want to dump the car, lol.
We have the excess wear and tear (the inspector person that looked at the car said it is probably about $1000 in excess wear/tear, which is fine, it’ll be covered) and mileage is unfortunately about 3000 miles under 
I stopped looking at all the numbers when i saw 68% residual 