Lexus Lease Terms

Ask the Hackrs
21

You might be right that I am the only one. Not sure

I do agree with what you say about low inventories and not wanting to give incentives.

My hope was this was the background that was considered by others in evaluating my offer.
I do need to find a way to broach the subject of early payoff before I put a hold deposit on it or even worse find this out after I travel to another State.

I saw a post by someone on a different type vehicle where they agreed to keep the lease 3 months so the dealership received their credit and brought the vehicle price down $800. I would consider something like this too for a win/win.

27

Thank you all for responding.

I am pretty much set on the PHEV model and knowing there are very low inventories (especially for 2025) I am going to pay a premium regardless.

My hope was to hear input on the specific deal I posted versus the reality of what this model is commanding at the dealerships.
My local dealership will never get an allocation of this model I am told so I must search out of State.

It also compounds the difficulty to get a lease as I am unsure if I can get full lease paperwork and terms in front of me before I spend time and $ā€™s traveling to out of State dealers. I would want to confirm that the final paperwork does not have pre-payment penalties before traveling. Is that possible to ask for the contract to be completed and sent to me for review before I travel?
I am sure I would have to put some type of deposit down as well for this and that is a concern if they tried to lock in some early buyout limitations on the deal.

California brokers cannot lease out of State so that limits using brokers from a State that has some inventory.

So basically, I am trying to understand if it will save me $ā€™s trying to lease with immediate buyout capturing the Federal credit or just doing a purchase.
It would be much easier for me to purchase the car outright, but if there is money to be saved with all the lease costs captured I would want to pursue that.

Thanks again to the community for taking time to help me with your knowledge.

28

Good Lordā€¦youā€™re almost in BMW X7 territory with those numbers.

Will Smith Fainting GIF

29

Make sure you take into account any taxing situation youā€™ll be in by leasing now and then buying the car out in a few months. I donā€™t know how Idaho taxes their vehicles.

30

Yes, but I like this car and reliability is high priority for me. I understand BMW reliability has improved, but still behind for those of us that will keep the car long term
Thanks

31

I checked Idaho taxing on leasing out of State and no double taxation thankfully

32

Any dealer can do this for you. Any dealer that wont do it is a dealer you want to avoid.

33

I really wasnā€™t concerned with that. Some states will tax you again when you buy the vehicle from Lexus Financial. Example, Iā€™m in TX and I would pay 6.25% sales tax on the sales price of the vehicle when I lease it new. Then at any point if I buy the leased vehicle from Lexus Financial I would have to pay 6.25% sales tax on the buyout as well.

Thatā€™s really what I was getting at. How does Idaho handle the taxes when you lease new, then again when you buy the vehicle from Lexus Financial.

34

My understanding is that I pay my State sales tax monthly in the lease and the lease paperwork satisfies my State DMV
Then on payoff they charge me the rest of my State tax and the payoff paperwork shows my DMV the taxes have been paid

35

Hello,
I am trying to understand how a very early lease buyout (1 month) would be calculated by Lexus Financial Services
I see conflicting answers in my research and maybe I need a ā€œdumbedā€ down explanation?

I am considering a lease only to capture the Federal tax credit with the assumption it will save $ā€™s at the bottom line.

Assuming I sign a lease on a Lexus with the Federal credit how would my buyout request be calculated after the 1st payment and before the 2nd?

I assume I would pay the residual amount but the rest of what would needs paid is unclear.
I have read where you would pay residual plus all remaining payments which would be a very large total and not worth it in my scenario.

Or is there some calculation that reduces interest and depreciation on the calculation.

Thank you in advance on explanations

36

The quick and dirty answer is youā€™ll pay approximately the adjusted cap cost.

1 Like
37

Thank you! That would be great news in my situation.

38

a X5e is way easier to get than a RX 450h+

IMO Iā€™d never want to own a PHEV. Double the junk to fail. All the slightly used 450h+ have lemon titles.

1 Like
39

Really i thought the 500h was the trouble child with its transmission failures.

Interesting the 450h is problematic as it is just an upsized lithium battery pack version of the normal H and a plug for those who remember to charge.

40

So, you pay sales tax only on your monthly lease payment in your state. Then when you buy the vehicle from Lexus Financial you will pay sales tax on the buyout amount?

41

That is my understanding yes

42

I can tell from experience that Plug in is not working as you think and do not make it as a must have thing.

We have level 2 charger at home and 3 cars plug in. Doesnā€™t make sense to plug in, at least during the wintertime and currentgas prices. No money saving at all. A lot of headaches with reparking on the driveway.

Just my $0.02

43

Hello,

I have lease in front of me for a 2025 Lexus RX450h+.
I am wanting to lease to take advantage of the $7500 credit and my plan is to pay off in cash in 2 months.

I am not familiar with lease language that would add prepayment type charges on buying out the lease early and am reaching out to see if I can get some advice and a review a couple of the lease sections.

If there are hidden fees, prepayment penalties etc then I would probably just buy the car instead of trying to capture the $7500 credit and eventually paying more than buying it outright without the credit

Here are the sections I can see that pertain to buyout.
If I need to add other sections please let me know

Thank you all in advance.

29 - Early termination by us We may terminate this Lease at any time if you are in default (see Section 28). If we do at any reasonable location we specify. In addition, you must pay us, upon demand, the amounts set forth in Section 28(vii) and the total of the following
amounts:
a. all Monthly Payments that have become due and are unpaid at termination; plus
b. all official fees and taxes charged in connection with this Lease termination; plus out of pocket costs paid by us for the sale of the Vehicle, including costs for transporting, storing, preparing for sale, and auctioning the
Vehicle; plus
d. the amount, if any, by which the ā€œAdjusted Lease Balanceā€ exceeds the ā€œFair Market Valueā€ (as such terms are defined below); plus
e. all other amounts then due under this Lease, but not including charges for Excessive Wear and Use and excess mileage (Sections 10 and 34);
minus
f. any remaining Refundable Security Deposit (Section 36) or refund we receive from Optional Insurance or Other Products (Section 38). The ā€œAdjusted Lease Balanceā€ is calculated by adding the Base Monthly Payments whose scheduled due dates are after the date of termination and
the Residual Value, then subtracting the unearned portion of the Rent Charge. The unearned portion of the Rent Charge is calculated according to the
ā€œconstant yieldā€ method. The ā€œFair Market Value,ā€ if not established by agreement or appraisal as described below, is equal to the price we receive when we dispose of the Vehicle at wholesale. The Fair Market Value may also be determined by our mutual agreement or by an appraisal of the wholesale value of the Vehicle, which you may obtain, at your own expense, from a professional independent appraiser agreed to by us. If you obtain such an appraisal and the appraisal is provided to us within 10 days after the Vehicle is returned to us, the appraised value will be final and binding on both you and us and willi be used as the Fair Market Value. If the Vehicle is subject to damage or theft resulting in a total loss, in each case as we determine, the Fair Market Value will equal the amount of any insurance proceeds we receive trom your Required Insurance. It there are no insurance proceeds the Fair Market
Value will be zero.

32 - Your option to Purchase the Vehicle. You may purchase the Vehicle at any time during this Lease or at the Scheduled Maturity Date (unless a governmental agency has seized the Vehicle and instructed us not to release the Vehicle to you. I he price to purchase the Vehicle at the scheduled Maturity Date is the Purchase Option Price shown in Section 11, plus, the amounts described in subsections 32(a), 32(b) and 32(c), below. The price
to purchase the Vehicle during the Lease Term is the total of: a. all unpaid Monthly Payments that have become due, and other amounts due and unpaid under this Lease, except the disposition fee shown in
Section 5 and charges for Excessive Wear and Use and excess mileage (Sections 10 and 34); plus,
b. all official fees and taxes, and documentary fees charged in connection with the purchase; plus,
c. all amounts necessary to meet any legal selling requirements; plus,
d. the Adjusted Lease Balance as defined in Section 29. As part of a like-kind exchange program, TMCC has engaged TQI Exchange, LLC (ā€œTQlā€) as a qualified intermediary. Lessor and Lessee are
hereby notified that TMCC has assigned to TQI its rights (but not its obligations) in any agreement for the sale of the Vehicle at Lease termination.

Early Termination. You may have to pay a substantial charge if you end this Lease early. The charge may be up to several thousand dollars. The
actual charge will depend on when the Lease is terminated. The earlier you end the Lease, the greater this charge is likely to be.

This last section concerns me greatly

44

@holeydonut should be familiar with this one.

Early lease termination and buyout are different, but I dont know what F&I lingo they are using to prevent chargebacks.

45

I appreciate your input.
Of course the dealer has me on the clock as well to decide.