You don’t compare buying vs leasing by comparing monthly payments.
If you can get a Lexus dealer (or dealer of whatever car you’re buying next) to match or come close to Vroom on the trade-in value then you’d pay virtually no sales tax on the new one.
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I’m aware there’s other variables. Was just throwing in another equation.
That’s not an equation that should ever be thrown in.
Compare total costs.
Don’t compare monthly payments or sums of monthly payments.
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No trade in tax credit in CA
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How would that mean no sales tax on new one?
Do you mean, the 12k credit will offset the charge of sales tax on new ? 7.75% is my tax rate.
@max_g im going to disagree with you in this instance. Let’s use the following variables for my example:
Selling price: $60,000
RV after 36 months: $40,000
Loan Payment: $960 ($64k for 72 months)
Lease Payment: $700 after MSDs
$12,000 equity saved in both examples.
36 loan payments: $34,560
Balance after 36 months: $32,000
Total cost after $12k: $22,560
Total after $8k equity: $14,560
36 lease payments: $25,200
Total cost after $12k equity: $13,200
I just don’t know if an RX can be leased for $700/month with MSDs.
Was just stating if it were me, I would look into this scenario as well
In some states, trading in a vehicle you own gives a sales tax credit on the purchase of a new one. CA doesnt
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I bought 3 Lexus leases in the past 2 years and the process was simple.
- Call Lexus Financial
- Ask for the lease buyout
- You will receive an email with the paperwork (Note, the taxes will already be included in the payout amount)
- Fill out the forms (Any security deposit, you can apply it to the payment)
- Get a cashier check from the bank
- send everything in certified or express mail.
- The title will arrive within 2 weeks
The lease payment comes out to $980/mo for 2022 $58k MSRP Lexus RX350, no MSDs.
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ok, wow - that seems easy! So, I can save roughly $1.5k on dealer fees by buying direct from LFS, it seems.
I’m going to call them tomorrow to confirm.
I look at it this way. You’ve got 60 days to find a Lexus dealer with a car in stock that you want. I’d also shop that low mileage Lexus to a Lexus dealer for a buy bid. They’ll be salivating over it. Try Carvana, Carmax, or an Autonation dealer.
At the end of November I was able to get a 2022 RX350 AWD for 5% off sticker for my parents. I also sold their leased 2020 Lexus RX350 AWD with a buyout of 31K+ to the Lexus dealer for $42K.
Can someone clarify, do these online dealers like vroom etc… pay you the difference if you sell to them
Or
Do you have to buyout lease first then sell to vroom etc…?
Looking for a bypass if one exists
Vroom doesn’t buy any leases. Other dealers can buy leases, depending on the bank.
When this happens can you pocket the difference without buying out the car from the LFS?
Yes, there is a thread in the Wiki section that details which companies allow that, and so far LFS and TFS do. Not many left btw. Most of the lenders have caught onto and prevented this.
Can you PM me the wiki thread?
So the only option is to get a quote first THEN buyout from LFS and flip the car to vroom etc…?
Won’t PM it as there will be other people who want it.
Here’s the LINK
Wiki Link for Lenders Who allow Sales
But you keep asking Vroom, they got out of the Lease Buyout game completely. They won’t buy any leased cars anymore. Carmax, Carvana, etc do but not Vroom.
Edit : Oh for LFS/TFS you don’t have to buyout, you can take the car right to Carmax and they will take it off your hands right there.
If you had say a Honda, then you have to buy it out and lose ~$2k for Taxes and stuff.
Looking to make a profit off my lease like OP since I have low miles on it and all others terms are same as OPS
Then go on your computer (You are on one right now hehe) and get a quote from Carmax / Carvana / Algo / etc and see who will give you the best amount. After that look at your payout. If it is say more than 2000, sell it.
Of course you won’t have a car at that point, so unless you are getting over $5k like OP is , it might not be worth it.