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Is A Lease Buy-out Negotiable?


kws23
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Hi - We have a 2001 Rx300 which is due to be returned in a month and it's currently leased through Lexus/Toyota Financial. The lease buy-out is $24,360. We have 42,400 miles on the car and it has zero problems. Has anyone here been able to successfully negotiate the lease buy-out? I was told the price is not negotiable, but I'm sure if there is a will, there is a way. Any feedback and comments is appreciated (I've tried to search the forums for any psots like this in the past but have nit been able to find any).

Kevin

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Regarding lease buy out:

How does the lease buyout amount they are quoting compare to industry wholesale/retail price for your vehicle?

When comes to finances and automobiles -- everything is negotiable. We are all fair game for one another. In my experience, leasing companies are reasonable and professional as long as accepted they have a right to try and obtain the best price possible out of the vehicle. As in the movies, "Nothing personal, just business!" Often times if presented with finesse and facts, they will adjust their price to move the vehicle without further handling.

Just finalized a deal from Bank America Leasing -- they dropped the inflated price (offered a "special early buyout" to lessee) $6000 in two months.

Suggestion -- mostly likely leasing company will ask if you are interested in purchasing ahead lease end with some sort of enticement. In the deal I worked, all they did was add two months of lease to already "certified" high list price for car and then offer to let owner out of two months lease if the owner purchased two months early. Leasing company in our case became much more reasonable as the lease approached two week expiration.

As leasee, you can also opt out completely and permit a third party to discuss with lease company to determine acceptable price as though third party is purchasing the car. In my case as a third party, friendly discussion/ negotiations took two phone calls and my presentation of industry trade-in/list price considerations. Also factored in that the Southern states currently overloaded with availiable cars. Lease company very professional and this is their business -- they already know these facts anyway.

As third pary, I purchased the Lexus because I knew the car and its excellent care by a friend who was leasing it -- so I had to make same value judgement about the cost spread. We split the difference between the price I claimed the car to be worth (trade-in value) and the list price they determined. So it turned out overall to be a little less than probably what some industry pundits would determine as "private party selling price." But knowing the history and care of this pristine garaged Lexus was an advantage as the leasing company is focused on the numbers with no way to determine the outstanding condition of the vehicle.

In some situations, leasing company is reasonable and will not expect you to pay from the get-go more than somewhere between trade-in and reasonable retail price.

Since you know the car and how well it has been cared for -- then just a value judgement on your part how much spread you are willing to pay with knowledge of car. That is a considerable plus factor financially and functionally reducing risk -- just talk to those who have purchased used cars and find out later there is serious engine/transmission problem. Lease companies know exactly what that car value is at dealer car auction.

Looking forward to hearing about how works out for you!

Good Lexus Luck...

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You can certainly negotiate the lease buyout price. Think of it as buying a used car, you've never owned this car before, Toyota Financial Services was the first owner, your lease is up so they will be selling the car. You can purchase it, or someone else can. Look around at similar cars and see what they're going for, and offer them slightly above that. Remember that you know the car's history as you have driven and maintained it, so thats worth something.

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