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Dealer Negotiation.

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I am currently negotiating an end of lease buy out. Lexus Financial Services is telling me that because I live in Florida, I must go through a dealer to arrange for the purchase.

My car is a 2006 GS 300 V6 RWD with the Nav and Mark Levison audio system upgrade package.

The car has 47,890 miles on it. My lease allows for 48,000.

The residual value on the car is 21,800.72. NADA retail value is around $24K. This is what the dealer that I am working with is telling me..

To purchase the car I have to pay:

$21,880.72 Puchase option amount.

$300.00 Fee for the preparation of paperwork.

$689 Dealer Fee

$22,869.72 Total

$ 1,463.52 Sales tax + $50.00

$ 451.00 Tag Transfer & Registration

$24,784.24 The cashiers check I have to give them.

Is this a usual deal?

P.S. They were offering me a warranty for 60K miles or 5 years from the signing date for $3,676.00, GAP insurance for $595 and miscellaneous items if I financed through Lexus Financial which pushed the whole thing up to $29,204. Financing was offered at 7.19 APR for 60 months. I have a beacon score of well over 750.

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Thats a terrible deal with the financing. Lexus is offering 1.9% for 60 months on CPO cars.

The dealer fees and all are probably pretty normal...

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Add what you already have invested in the car, plus their total for financing, etc, and you get the real cost of the car, which will seem rather pricey. Why GAP insurance? That is only if something happens to the car and what you owe is more than the insurance company will pay you. That turns out to be darned expensive insurance. Also, who is underwriting the warranty they are trying to sell you. I do not believe Lexus would be the warrantor on a car that would take it up to 11 years old, or 107,000 plus miles. I personally do not believe in leases, but you would be better off leasing a new car and not shell out $3600 plus for an extended warranty. The new car would give you 4 years and 50,000, with no additional costs.

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