I believe SETF leases have to go through a Toyota dealer as well if you want to buy it out as well, so it’s not just a TFS thing.
You can shop different dealers to see who is cheapest/doesn’t charge. When I was looking at buying out my Hyundai lease in Florida, there were a few dealers that didn’t charge and some that charged almost a grand.
Thanks for that. Interesting that SETF also uses the same scheme. As you suggest, it is ubiquitous.
I am still curious just what law requires such a scheme - or whether the scheme is just an artifice used to bypass some other legal requirement. I’ve seen FS 320.27, which requires all dealers (meaning anyone who sells more than 3 vehicles in a year) to register, but I haven’t seen any law that allows you to avoid registration by using someone else’s license. That doesn’t mean that such a law doesn’t exist. The motor vehicle laws in Florida are complicated and I haven’t had a chance to look through all of them.
It extends way beyond just Toyota. From personal experience, Hyundai and Audi do the same. I’m sure plenty others do as well. Interestingly, I believe I can buy out my Honda directly from HFS without going through a dealer (although I haven’t actually tried). I can’t imagine that the banks are going through the burden in only FL unless they have to.
I’m soon to end my genesis lease. Mind telling me the names of Hyundai dealers (some Hyundai dealers are still also Genesis dealers) who weren’t charging this legal extortion fee? Good old free market mechanisms will bust up a monopoly if a few break ranks and the word gets out.
Gimme a break.
If you think that other interests are being served instead, I can understand that - but you need to lay out what you mean. “Gimme a break” is not an argument - it’s a dog whistle. I’m sure there are dogs lying about, but I’m not one of them.
I’m curious does it have to be a franchise dealer? Might an independent used car dealer be able to handle the paperwork for a modest fee in Florida?
I went through this last year with Toyota. The Toyota dealers wanted to charge those excessive dealer fees. I finally spoke with someone knowledgeable at Toyota Financial and they recommended going to the local Lexus dealer. No dealer fees there! Maybe you can find an Acura dealer that does not charge those dealer fees.
I’m going through this now, so can update in a few days. I leased a Mazda in Ohio, financed through Mazda, but it’s actually run through Chase. Moved to FL. Residual is around $15.5, but dealers want $18-$19. I called Chase, they sent me paperwork to buy directly from them for $16.5. Paperwork states only lessee or a dealer may buy. I’m hoping this isn’t a mistake on Chase’s part.
Do you have any idea how some brands manage to do it and some don’t? You can buy BMW leases without involving a dealer also.
My understanding, which may be wrong, is that the requirement is that the bank must have a physical location in the state and a dealer’s license in the state. If the bank has those things, it’s no problem.
That’s probably doubtful, to be honest. Define “good number,” because most people aren’t scouring the northeast for a Toyota in the South. Don’t use your experience on this site as the real world norm.
Clearly I was speculating, but not based on my experience on this site. And my guess has nothing to do with the current scarcity.
Florida gains about 330,000 new residents each year. Toyota’s market share is about 12% and about 25% of new cars are leased. Let’s say 1/2 of the new residents are drivers. That’s about 5,000 Toyota leases imported into Florida each year. Is that a good number? Tomato, Tomahto
Let me say this. I’m not concerned about the current scarcity and nothing I say has anything to do with it. I’m just trying to get my hands around the true justification for this practice and its scope in terms of actual outstanding leases. That’s not going to be interesting for the typical consumer who is reading this site.
Toyota may have a 12% market share of new vehicles, but your math here implies that every new resident that is a driver is in a vehicle that is new.
I think I see what you are saying, that Floridians aren’t looking for Toyotas in the north. My speculation wasn’t based on that kind of buyer. As you can see from my last post, I was basing my speculation on new residents who move to Florida with an outstanding lease.
Not everyone leases a car either. There’s more lease penetration in the lux segment than the bread and butter segment
Good point. But my estimate was an estimate and I accept that it has some flaws.
I suspect your estimate is off my a couple orders of magnitude.
2 orders of magnitude is a LOT. Now you’re going to have to justify your estimate.
Easy. If we’re super quick and dirty, the number of vehicles that Toyota produces and sells in the US in a 3 year period (how recently one would need to be acquired to generally still be under a lease) is around 2 orders of magnitude less than the population of the US. Filter your estimates off the fact that it only applies to 2 orders of magnitude less than the number of people, and there you go.