Buying A Leased Xr350

[viejosurfer]

OK folks, I am new but couldn't exactly find my situation during a search. Looking to purchase a turned in previously leased vehicle, 2007 XR350 with 25,000 miles. I know the residual that the prior owner had and the Lexus dealer says it cost them residual plus $2500 to buy the car from Lexus. Then they are tacking on about $2800 for making it a CPO vehicle, that gives me 3 years and 100,000 coverage as well as some perks you all know about. Loaner car, road side assistance, etc.

I read on this site about the cost of a platinum, $0 deductible, 7/100,000 policy for about $1800.

Thus my questions-did the deals cost increase by $2,500 as he had to pay sales tax when he bought it back (almost the exact amount); and secondly now that it has been certified, must I go with the 3/100,000 or can I try to say no and that I'd prefer to buy my extended warranty from someone else?

Thanks in advance.

[SW03ES]

Do you mean an RX350? No such vehicle as an XR350...

I think you can choose to buy the car certified or uncertified. I would buy it uncertified, you can buy the warranty on here through Toby Rivers for less than $1800...

Welcome to the club!

[viejosurfer]

Morning Steve,

Thanks for the prompt reply and welcome. It is an RX350 and I was tired last night.

So if I understand you correctly--I can decline the CPO option even if they have done their inspection and get the coverage elsewhere.

Also, when the dealer or the owner buys the car back from Lexus on a lease, do they pay sales tax on the residual?

It seems to me they want to sell the car to someone else, because they (so do I) have personal knowledge that the care was well taken care of by the previous owner.

Thanks again.

Viejo

[SW03ES]

I think you can. I was talking with a dealer about a CPO '06 LS430 and he told me that I could buy any Lexus CPO car with or without certification. Now, they make a LOT of money on certification so not all dealers may want to do that, but they wanted $4k to certify this LS and I would never pay that...its the same car either way and I'd rather pay my mechanic $150 to look at it and pay $1200 for an extended warranty than pay them $4k for certification.

In terms of sales tax, I'm sure it depends on the state.

And most Lexus dealers will give you a loaner when its in for service anyways.

Have they shown you the maintenance records?

[viejosurfer]

I think you can. I was talking with a dealer about a CPO '06 LS430 and he told me that I could buy any Lexus CPO car with or without certification. Now, they make a LOT of money on certification so not all dealers may want to do that, but they wanted $4k to certify this LS and I would never pay that...its the same car either way and I'd rather pay my mechanic $150 to look at it and pay $1200 for an extended warranty than pay them $4k for certification.

In terms of sales tax, I'm sure it depends on the state.

And most Lexus dealers will give you a loaner when its in for service anyways.

Have they shown you the maintenance records?

[SW03ES]

I don't think your post made it through...

[viejosurfer]

I think you can. I was talking with a dealer about a CPO '06 LS430 and he told me that I could buy any Lexus CPO car with or without certification. Now, they make a LOT of money on certification so not all dealers may want to do that, but they wanted $4k to certify this LS and I would never pay that...its the same car either way and I'd rather pay my mechanic $150 to look at it and pay $1200 for an extended warranty than pay them $4k for certification.

In terms of sales tax, I'm sure it depends on the state.

And most Lexus dealers will give you a loaner when its in for service anyways.

Have they shown you the maintenance records?

Hello SWO3ES,

I know the previous owner and the car has been well taken care of for three years. I had the impression they were charging a bundle for the CPO warranty, based on what I read on this site.

Don't know if they'll make the deal without the certification and I'll find out this morning.

Thanks mucho for the help.

Also, sorry that prematurely pressing the reply button.

[SW03ES]

Good luck, let us know how it goes!

[viejosurfer]

Good luck, let us know how it goes!

[SW03ES]

Theres something really to be said for the fact that you know the prior history of the car.

Congrats!