# Lexus RX 450H+ Lease to Buy

I got an offer for a lease deal on a Lexus RX 450H+ from a dealership. I’m planning on keeping the car for a long time, so I want to buy out the lease immediately. I’m very new to the leasing process and I had two main questions that is preventing me from moving forward.

1. When I buy out my lease, am I paying the Adjusted Capitalized Cost (9c)?

2. I’m not sure what 32D means for the difference between the Adjusted Capitalized Costs and app depreciation and other amortized amounts accrued through the date of early termination calculated in accordance with the constant yield method.

Based on my understanding, OTD pricing on this car will be \$64,416.19 + tax (10.5%) which would put me at 71,179.88 total OTD. I think there are some other fees associated such as transfer & documentation fees (finance manager quoted \$15 + \$80) for these two.

I’m confused because this seems like a really great deal. Every other dealership that I called said that I should just take this but I’m not sure if I’m missing any gotchas. Is my understanding correct?

Any help would be great! Thank you in advance!

Yes or very close to it with some minor adjustments for daily interest.

Some banks have a purchase option fee but sounds like yours doesn’t.

As @max_g indicated, it is very close. Your buyout is computed as follows…

Initial balance = Adj. Cap – Base Payment
= 64416.19 – 943.20
= 63472.99

The 7.688596% is the constant yield rate for your lease contract. It can be calculated using the RATE function in Excel. I’ve referenced this, in some detail, in several of my posts in other threads.

(Adj. Lease Bal. + any purchase option fee) x (1 + tax rate) + applicable fees

Your sales tax rate is 10.25%. Your buyout is calculated assuming you buy the vehicle within 30 days of lease inception. Remember that payments including lease finance charges are due and collected one month in advance.

5 Likes

Go Wildcats

1 Like

1 Like

Can confirm that the buyout is close to the adjusted cap cost. We just did the same process last month for our new RX450h+

1 Like

If you don’t mind me asking how much did you end up paying for the car in total?

Right at \$65K, plus my state taxes. I am still waiting on the final paperwork from Lexus. Depending on how my trade was reported to the state, I am either gonna owe \$4K or right around \$2K LOL

Apologize for the late reply on this topic. Did you pay all your lease payments (the lexus one pay lease), or just make the first month payment and then pay Lexus financial after the dealer transaction? I’m getting so many different answers. arg.

My “first” payment was included in the pricing. So technically, my 2nd payment I did pay, and now my third, because they’re going slow as bananas to process my buyout.

I sent in my \$20K last week, and “should” be getting a call back from them tomorrow letting me know it finally came off my buyout amount so my actual financed amount will be roughly \$43.5K

Sticker was originally almost \$76K, and when my contract was loaded, at the time, my buyout was \$65,0xx so I saved almost \$11K

Ah, so you did it differently than the original post author. You didn’t pay a large amount at the dealer - you paid 20K later. Can I ask how you found out the value to send? (20K). This isn’t the total of the lease payments - it must be something less that was listed on your lease document?

I sent \$20K. Didn’t specify how much to send them

I knew how much to put down based on where I want my finance payments to be at for the buyout.

In my instance \$63.5K originally, sent them \$20K, I am now financing \$43.5K or roughly \$820 a month for 5yrs.

I only paid the first month which was taken out of the rebate (~\$1000). I also just sent in the full amount to purchase the car outright and it ended up being around \$64K pre tax which was right around what the dealership quoted me for the adjusted capital cost.

My taxes are expensive so I’m looking at being around 70K-71K total OTD for the car.