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Bankbuster1

Should I Purchase My Lexus At The End Of The Lease?

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I am at the end of my Lease. I'd like to hear some opinions on whether or not I should by the car....

My car is a 2006 / GS 300 4-Dr Sedan 6 Cyl. RWD(has Mark Levison Sound System, Nav System, Rear Camera, Moonroof, etc.) I have 47,600 miles (my contract allows 48,000). My lease is up June 1, 2010. The buyout at lease end is $21,802.72.

Is this a wise decision?

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Very rarely is purchasing the vehicle at the end of the lease a wise financial decision. In addition to the probable inflated residual value, you'll pay sales taxes on the vehicle again along with whatever acquisition fees may apply. Remember - autos are an expense, not an investment....

There is one potential advantage to keeping a leased vehicle, however. If you've had it since new, you know the service and maintenance history. If it was well-cared-for, it may suffer fewer problems down the road compared to a similar vehicle that you are not familiar with....

But from a purely financial standpoint, purchasing your vehicle at the expiration of your lease benefits the seller far more than the buyer. This method usually results in the highest cost-of-ownership experience possible for the consumer....

In this still-terrible economy, some leasing companies are more willing to negotiate with their customers who decide they want to buy their vehicles. Don't settle for the selling price that was determined years ago in a better economy. Contact your leasing company and begin negotiations with them. If you cannot get a better deal, then simply walk away. They would rather sell the car to you at a reduced price than practically give it away at a wholesale auction....

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If you can buy it for a "today" fair market value, then I would. You have history on the car, you know it. If you like the car, and can't replicate it for the same amount of money with something else you like as much, then I'd buy it. If you're just so/so on the car, then I'd walk away. If you like the car, but they won't budge on the price, then maybe they'll negotiate an extended warranty for you instead?

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