Don’t let it. That is just typical language that is in every lease contract with every manufacturer.
Early Lease Termination = you just give the car back to Lexus and tell them you want to end the lease early. If you do that, then yes, it will cost you thousands of dollars.
As noted an early lease termination is completely different than buying your lease out. Nothing to worry about.
Looking at the contract language you posted there is nothing mentioned about any early buyout penalties. If there were any penalties, they would be listed in the last section 32.
Yeah from what I was told by Pleasanton Lexus, the early buyout penalty/cost doesn’t seem to come from Lexus/Toyota financial. It seems to come from the dealership F&I. Serramonte Lexus seems to do the same.
They want to make sure they get their dealer $ from the lease, since they weren’t giving buy rate on these PHEV’s.
I’m still in the camp that this car isn’t worth the hassle, pain, and challenge of an out of state sale… but at the same time I don’t see an out of state dealer F&I successfully enforcing their ad hoc penalty for someone in Idaho buying out their lease early.
Thank you!
So if I understand what you are saying… you do not see any buyout penalties or hidden fees on the lease language, but I should watch for a dealer specific attachment in all this paperwork that may address early buyouts with fees?
Is this what those California dealers were doing?
To make my challenge even harder California will not do a lease with me being out of State which really limits my competitive leasing options.
Thanks again
After the lease is signed the dealer no longer has any ownership or involvement in the process.
The car is then owned by the lessor and only by the lessor. The transaction to buy out the lease is solely an ownership transfer from the lessor to you.
Yeah, that’s what I was trying to say in this post.
Basically the F&I (Finance and Insurance) person that hands buyers all the paperwork to sign and initial includes an extra item. Saying the lessee can’t buy out the lease until 6 months after the purchase. I don’t know how enforceable this is, but it would at least seem to discourage eager folks from pocking the $7,500 right out of the gate.
It’s possible the sales person doesn’t even know this is happening; since many times folks in a dealership don’t talk to each other with this much nuance to know each other’s subject matter areas.
IMO you’re taking this $7,500 a bit too literally. It is not a rebate to the extent you are saving $7,500 when you get this vehicle.
Rather, the automakers pricing EVs, PHEVs, and FCEV’s have already bumped up their MSRP by $7,500 (or more). Getting the $7,500 “discount” in full is just re-setting your transaction price to where it would have been if the government subsidy wasn’t on the table.
Where you could see real value would be if the financing arm were to artificially prop up the lease residual (that is, prop it up way more than what the vehicle will be worth at maturity). And the financing arm hits you with the 0.0006 MF that MBFS was handing out on EQS. So the lessee pays very little depreciation and rent charge during the term compared to owning the vehicle outright.
In the scenario you’re pursuing (Lexus RX 450h+) you’re basically getting worked over on every part of the transaction.
You’re paying a lease origination fee to try and access the $7,500.
And if you’re dealing with my local Lexus dealers, you’re paying stiff rent charge for 6 months.
Then you get the privilege of trying to buy out a Lexus 450h+ lease with a used car loan and paying interest on that loan.
Then you’re stuck bag holding a 450h+ and will need to drive it for a long-ass time to recoup any of this extra $ paid for the PHEV variant.
And the PHEV powertrains are nowhere near as reliable as a ICE/old-school hybrid
It’s not itemized on the lease contract. It’s just a separate page to sign. Like when I get cars in CA I don’t get a front license plate frame. So there’s an extra page that says I acknowledge no license plate frame and the part is in the trunk.
This ‘don’t turn your lease in early’ thing is just another 1-pager where I would attest to not buying out the lease or loan early.
Back in 2019 when I got a XC60 for dirt cheap, one of the rebates was to finance with Volvo. But I had to wait 3 months to pay off that car loan. So the dealership had me sign a one pager to delay paying off VFS until 3 months after the car was purchased.
Then penalty is likely a frowny face IRL; but on the document it said I’d owe the rebate value back to the dealership.
I can ask, but I don’t think it’s likely. I just told them to be certain how long they had to hold the car, and they told me 6 months. The sales guy at Pleasanton Lexus told me the same when I asked about a TX 550h+ (the markup is craaaaazy!)
You know those people that hoard every receipt, junk direct mailer, and whatever to shred because they’re worried about identity theft? Those people often buy Lexus.
You have given me good advice but I wanted to add a few comments.
I have savings to pay for the car so the buyout will not be financed
The cost of the vehicle is $77,000 and that is the price to buy or lease. If I lease they deduct the $7500 down to $69.5K and add back in lease and out of State fees to get it back to $71.8K
There will be rent and interest payments until I can get the buyout completed and the plan is to still be under $77K.
I have purposely left our State Taxes, doc fees that would be paid whether I purchase with cash or lease.
If someone is nutty enough to pay full MSRP (no $7,500 EV lease incentive) for a Lexus RX 450h+, they have overpaid by $7,500. And someone at Lexus corporate will snicker at all these people that paid way too much.
I think the rest of your gameplan is sound. You seem to know what you’re doing with respect to this one vehicle from one manufacturer that is your only considered vehicle to spend money on.
Yes exactly. I have chosen this vehicle and understand it is not the best deal out there by far
With that in mind I am trying to pay as least as possible but the whole lease and lease buyout are unfamiliar to me
I have asked a lot of questions and all have patiently answered so I will commit to update my story after the buyout is complete so others can read and learn as I did.
I went through all of the attachments and do not see anything about agreeing to not buyout early or after 6 months etc.
I do see the below verbiage in the purchase order and do not fully understand any negative implications to my early buyout plan
