2017 Toyota Camry SE 4dr Sedan (2.5L 4cyl 6A) SE
Residual Value $14,200 (58.5%)
Currently at 36 months with 34,200 miles
Is buying for $14,200 + taxes + DMV a good deal?
Any tips to negotiate the price from TFS?
No. You can buy a used one for less than 13k. Examples You could get a CPO one for about the same price. IDK if they’ll negotiate, ask our native toyota experts @derekoh1991 or @Jrouleau426.
Buying out a lease usually is not a good idea due to what’s mentioned above. You can usually find a cpo or better condition/higher msrp camry for a lesser price then what the dealer is trying to sell it to you + fees.
Check KBB to get an idea of your cars value and Craigslist for private party to see what others have them listed at.
No, TFS won’t leave a room to negotiate the price, especially since the COVID-19 is going on.
Just get yourself a new one or CPO, just like @HersheySweet says
Thanks for the feedback. Even the local dealer was hesitant that TFS will not negotiate.
Lease return - I have 1 key missing and some minor scratches on left side. All four wheels replaced after 2 years from Costco tires. Do they impose any fines based on this?
Buyout - CPO is costing $14.9k which is 700$ higher than my quoted price. Does it then not make sense to buyout?
CPO warranty gives you 1 year /12k comprehensive warranty, 7 year/100k mile power train warranty, and new car financing rates. For 700 bucks, you’re going to be paying a ton more in interest and warranty on a lease buyout to match the value of a CPO. Also TFS offers 90 day payment deferment, and their new car rates vs used car rates (higher) anywhere else.
7 year/100k miles powertrain will be applicable even in the case of buyout, correct? I see your point of 1 year warranty - but I just got inspected and all was fine. I am thinking of paying cash so no interest.
What do you mean by TFS deferment - sorry I didn’t understand.
You can wait to start paying TFS on CPO purchase. If I bought the car tomorrow, I could wait 90 days to start making payments.
7 year / 100k miles, hell no. That’s why you pay for CPO. Default you get 5 years, 60k miles from original lease date. 7 years is from when you buy the CPO I believe, correct me if I’m wrong derek.
Lease Return - They do, unless the dealership was to buy that car at an auction price and sell it
Buyout - Maybe. The choice is yours
You are right, @HersheySweet
- Coverage begins from date of Toyota Certified Used Vehicle (TCUV) purchase or 100,000 total vehicle miles. Program available in continental U.S., D.C., Alaska and Canada. See TCUV Warranty Supplement for details.
unless the dealership was to buy that car at an auction price and sell it -
The dealer actually quoted me $14,200 + 600 + plus taxes and DMV fees = $16,500. The dealer said they are essentially charging 600 extra to buy the car from TFS and then selling to us.
What is auction price buyout and how do I talk with dealer about this instead? Sorry, I am new to this process.
That sounds about right. The $600 is what the dealership charges for their profit, not TFS.
You are not really allowed to buyout a car at an auction price and they won’t let you do it
You need to check your lease paperwork for what is considered regular wear-and-tear and what is excessive. Pretty sure you’ll get billed for a missing key.
When is your lease due back? You could consider a pre-inspection (if TFS does that) and fix the deficiencies yourself before turn in (if you decide to do that).
Have you spoken to someone at TFS yet? I’m doubtful because of the generally great resale value that Toyotas have, but several users here have reported that their lender was offering buyout discounts currently, most likely because they are scared of taking a bath on these upcoming lease returns. Even though Toyotas hold their value, that doesn’t mean anything if nobody is buying cars at all. It doesn’t hurt to ask and find out for sure.
Your car would go for about $12-13k at auction btw and they want to sell it to you for $16.5k all in.