This is the plan.
Pay the first month lease, down payment and fees
Take the car, call the Lexus financial in couple weeks for payoff amount which will be calculated, 36 months of lease payments minus rental and interest credit (as we won’t be using them) plus residual value.
I am hoping, it will be a total of 70K including tax (including DAS payment) once I cut the check for pay off balance
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No, you don’t. Because you are hardly paying any of the rent charge. Like 1/36th of it.
You just need to negotiate the max possible discount and let them mark up the MF to get there.
California Marketplace has $5,000 discount last I checked. Before rebates.
You do not need to perform any of the sanity checks of a traditional lease. You don’t need to look at the monthly payment and you don’t need to look at the total payments either.
It’s really a question of how much money this method saves over a traditional purchase.
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Yes, exactly what I am hoping for along with no early lease termination penalty
Take a look at this post for Credit Unions with the best finance rates.
Update : Just signed the lease
Loaded RX 450h+
MSRP : $76,445
Retail lease agreement numbers
Cash price : $70,013
Net Capitalized cost : $61,313 (after $7,500 rebate and $1,499
from $5000 as cash down)
$5000 cash down : $1,499 + $900 (1st Payment) +Dealer
Conveyance ($699) + Initial registration
fees ($1066.95) + Upfront taxes ($834.30)
Money factor : 0.0031
Residual : $42,810
If I end up paying 36 months lease amount and Residual value and down payment, it would come to $77,599.
Not including the fees and taxes so far
I am guessing a $12,000 credit to be adjusted to the above number when I pay it off
I am hoping to pay Net capitalized cost + more processing fee soon once the account is logged in Lexus Finance system
Let’s see if I can avoid a costly lesson in this journey trying to save $7,500 through lease to buy
Won’t you also have to pay all sales tax in CT? What about property tax as well?
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Yes, it’s the same if we buy or lease
Given your stated goal and strategy I also don’t understand the benefit of the $5k cash. Typically the cash down is used to lower the rent charge and net capitalized cost but your stated strategy obviates this. Please do follow up with how this will turn out and how they calculate your payoff. I’ve thought about doing this in the past and I was not convinced it would work. Thanks.
It worked out very well, Lexus gave $11k (not all dealers giving it though) lease cash to bring the lease payment down and also buy out price as it’s used as downpayment on top of $5k CC payment
All in all, OTD including sales tax, it’s 67K
Waiting for the lien release to get the DMV paperwork done, not sure about cost there as Lexus collected the sales tax with pay off
Jumping in late, but had a question about the cash down. Since this will be a short term lease and buyout, does it make sense to put down a large down payment, ($35,000) so the payments are smaller? Also, I had one dealer tell me that this lease & buyout was not worth it and I’d pay more. He said the residual would be the sum of all the remaining payments plus the residual. This doesn’t make sense to me. Wouldn’t the buyout be the sum of all remaining payments less rent and interest, plus the residual? Sorry if this question is too elementary. First time considering a lease.
I don’t know if it makes that much of a difference, if you’re going to buy the car out quickly. Just don’t total the car b/f you buy it out, if you put a huge down payment?
Yes, I think (+ taxes, dispo, and any early termination fees).
Dealer presumably doesn’t want you buy out the lease immediately b/c they lose commission.
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Didn’t think about the consequences of totaling the car before the buyout. Something to be aware of. And regarding the dealer not wanting the buyout, that would explain why the rep told me to wait 5-6 months to let the paperwork settle.
Thanks
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We received our title in mail from Lexus , need to check next steps now with our DMV ( registration at lease, is valid for almost 3 more years) but need to get the car on our name though
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Property tax is town/city dependent. If this was in Stamford where I live, they’d be forking over an extra $1,200ish per year. You are charged the full value of the vehicle whether you buy or lease. The only difference is who gets the bill. If leasing, the bank gets the bill, pays it, then passes it on to the customer. If you own, the city/town sends you a bill. Fun fact, my city recovered something like 1.7 million by hiring someone to go around and see who has vehicles with out of state license plates that live in Stamford. Supposedly they got people from all walks of life from the Bentley/Range Rover owners who had their cars registered in VT & FL to the beat up older vehicles with PA & NC plates.
that happened to me! jerkoffs
Any other Lexus buyers take advantage of the Federal credit on a lease with a quick buyout?
I am in the early stages of this and would love to hear more feedback and issues to be on the lookout for.
Have you used the search function for Lexus and Toyota early buy outs? This thread may be worth a quick read and the linked threads within it:
Lexus One Pay Lease early buyout rent charges credited back? - Ask the Hackrs - FORUM | LEASEHACKR
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^^ thanks for the link, reading through it but im glad i came across this thread. I’m in a similar situation. The dealer won’t give me the lease agreement until I’m ready to come in - I’m presuming because i’ve been waiting for a bit and shopping around (they know this) that they don’t want me to leverage the actual agreement with other dealerships. Here’s my situation:
2025 Lexus RX450H Plug in Luxury
MSRP 77,570
Dealer Discount 13,500 (which includes 7500 lease cash)
Selling Price: 64,070
Doc fee: 85
Tax: 617.48
Non tax fees: 1635.75 (i’ve asked for a breakdown on this)
Net price: 66,408.23
Pre Paid mainenance 1,980 (5 year 75k miles - i wanted this since it’s a immediate buy out after the deal)
Balance: 68,388.23
Residual: 43,434
I’ve been scouring to figure out how the lease buy out works, rental charge, interest, etc. Dealer mentioned they estimate the buy out would be roughly $66000 + taxes and licenses.
So i’m a bit confused since this is my first lease where I’ll be buying straight out (to get the 7500 lease cash incentive).
The 7500 lease cash states i’d need 3999 down but somehow i was quoted 3500 down to ge ta payment of 1063. If payment doesn’t matter at this point and i feel like the adjusted price of $64,070 is a great savings already 17% savings - how does the buy out actually work?
My mindset right now is:
initial outlay of funds: $3700.75 (pre paid mainenance, non tax fees, doc fee). I’d roll the tax into the monthly payment.
Wait till it shows up on lexus financial and then call to buy out:
$43,434 (residual) + 3700.75 + taxes + remaining payments - interest - rent charge? is that the right math?
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