I’m in the process of getting rid of a lease of my GX460. I’m getting a great deal from Carvana but am unsure as to how the financial process will unfold.
My Lexus Financial account only lists a “Purchase Amount” under the Lease End–>Purchase Your Vehicle section. Lets say it’s $47,000. When I plug in my car info into Carvana, they offer $50,000. So how is Carvana going to extinguish my lease? Are they paying off the remaining lease payments - ($$$ X remaining lease payments) and then buying the car? OR are they just paying off the Purchase Amount of $47,000? If this is the case, do I get to keep the $3000 profit?
I ask because I always thought that the actual lease payments had to be paid off first. So this $47,000 Purchase Amount is throwing me off a little bit because it is not what I still owe on the lease payments.
The end of lease purchase amount should be the amount you can buy it for when all monthly payments have been made. If you still have time left on the lease, take your monthly payment times the number of months left and add that to the purchase price.
Your buy out is not the sum of remaining payments plus rv but the remaining base payments. Taxes (depending on state) and rent charge are not included.
so I just confirmed with Lexus that the $47,000 Purchase Price (good for 2 weeks) already includes lease payments. It’s the price anyone can buy out the car outright. So then am I to assume that I pocket the $3K from Carvana?
If the number you got from LFS is the 3rd party dealer buy out and not your personal buy out (you need to specify with them), then yes, carvana would pay lfs $47k and give you a check for $3k.
why would LFS have a different payout for a 3rd party dealer? Is this how this works with all manufacturers? They have 2 different payout sums (1 for lessee, 1 for 3rd parties?)
Most are different because of variations in sales tax liability. Beyond that, some banks charge 3rd party dealers market rate for the vehicle and many banks don’t allow 3rd party buy outs at all.
just confirmed with LFS. the buyout (47k is the same for 3rd parties). Thank you for encouraging me to ask all these questions because I did not want to be suprised.
They may not charge market rate, but the inclusion of taxes in the buy out is usually state dependent.
More importantly, confirming with them that it’s the 3rd party buy out also conforms that they’re still allowing 3rd party buy outs in these days of rapidly changing rules.
