Automotive

What would you do in this situation (Lease Ending)

  • Last Updated:
  • Jan 12th, 2019 11:35 am
[OP]
Member
Aug 30, 2017
202 posts
72 upvotes

What would you do in this situation (Lease Ending)

Hi RFD,

My parents leased a 2015 Lexus NX200t (Luxury Package) and it's lease will be up in about 4 months. The buyback (residual) is $27, 500 plus whatever fees are involved. We're estimating it to be about $32,000 all in. The car is in great shape, no accidents and very low mileage (20,100 kms). It has a small scrape on the bumper, we think due to a careless person and their shopping trolley. My parents bought the premium paint protection (Titan Plus or whatever it's called) so that they didn't have to worry about small scrapes and rim rash, etc once the lease was up.

I've gone on AutoTrader/CBB and I figure the approx. value of the car is about $35,000 give or take a few grand, given the low mileage.

My parents offered to pass it onto us (my wife and I) and we'd take over the financing once it's lease is up through Lexus/Toyota Finance. Our only real issue with the car is that while it's a nice ride and it's got tons of great features such as front and rear collision sensors, blind spot monitoring, and neat convenience stuff (heated/cooled seats, memory seats, etc) it doesn't have the speed sensitive cruise control, lane keep assist and collision mitigation. My wife will be driving the car and she'll put on even less miles than my parents and won't really use any of those safety features as she rarely drives on the highway or leaves our little town. I personally DESPISE the trackpad interface and the infotainment system is the most garbage system i've ever used, and this is from someone whose daily driver is a '13 Forester.

We're currently looking for a new car to keep long term, I'm not sure if we're better off buying the Lexus and living without those features or buying something like an RDX/QX50, eating the cost of the new car over the finance period and keeping that long term.

What would you guys suggest/recommend. My parents were told by the Lexus salesman that the car has equity in it because of its low mileage and could actually be worth more if they traded it in or sold it outright. I can see the Lexus dealership wanting to get the car back and maybe giving my parents a few grand off a new Lexus but they're old and were so frustrated by the infotainment system/trackpad that they swore off Lexus for the rest of their natural lives lol.

I don't trust car salespeople so I figured he was angling for a sale, but even if I was to buy it out and resell it I could maybe see only making $2-4K off it and for the work and hassle it's not worth it for me.

What do you guys think?
33 replies
Deal Guru
User avatar
Oct 5, 2008
11517 posts
4852 upvotes
Toronto
Keep the Lexus. It’s a known entity to you and relatively cheap and practically new based on mileage.

You won’t miss the features you want since you have never had them and you hardly drive mileage wise
Last edited by Swerny on Jan 7th, 2019 11:21 pm, edited 1 time in total.
Deal Addict
Sep 11, 2007
4427 posts
627 upvotes
My wife will be driving the car and she'll put on even less miles than my parents and won't really use any of those safety features as she rarely drives on the highway or leaves our little town - its good deal and you know the history, really low mileage too

speed sensitive cruise control, lane keep assist and collision mitigation - only thing i care about is speed sensitive cruise, really good for long distance

We're currently looking for a new car to keep long term, I'm not sure if we're better off buying the Lexus and living without those features or buying something like an RDX/QX50, eating the cost of the new car over the finance period and keeping that long term. - for your wife or you ? tbh feels like a waste of money to get a new RDX/QX50

maybe get a phone mount? to fix the info system issue?

disclaimer i drive a lexus nx f trim lol
Deal Addict
Jan 15, 2017
2552 posts
1877 upvotes
If you don’t want the vehicle, walk away.

If you want it, you will need to take over the lease noe to avoid double taxes at the buy out.
Sr. Member
Jan 20, 2012
548 posts
206 upvotes
Toronto
skeet50 wrote:
Jan 5th, 2019 9:46 pm
If you don’t want the vehicle, walk away.

If you want it, you will need to take over the lease noe to avoid double taxes at the buy out.
You need to act quick if you are going to take over the lease. Some leasing company doesn't allow any lease transfer 3 months prior to lease end.
Deal Fanatic
Apr 16, 2007
7122 posts
2027 upvotes
Financial District B…
Buy it out, sell it and use whatever you made from it as a down for the vehicle you want. simple
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
Deal Guru
User avatar
Feb 11, 2007
11777 posts
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Oakville
skeet50 wrote:
Jan 5th, 2019 9:46 pm
If you don’t want the vehicle, walk away.

If you want it, you will need to take over the lease noe to avoid double taxes at the buy out.
Can't the parents buy it out then gift it to their kid?
Newbie
Oct 5, 2018
29 posts
7 upvotes
Toronto DT
I'd vote to take over the lease and keep the car for another year or two.

I can see the dealership getting it CPO (certified pre-owned) and sell it at a higher value. I am assuming it is a 48 month lease, why don't you get an extended warranty and keep it for the warranty period (another 2 years, may or may not be long term enough) and then resell it. I am guessing you can still make a grand or 2 after 2 years and get another new car then.

But if you decided to buyout and resell it, you are paying the tax 2 times (one time when you buyout and whoever is buying from you is paying it again).

If your parents are not getting a new Lexus, why don't you take advantage of what the salesman can offer, say a few grands off a new Lexus. If you are looking at QX50 and RDX, why don't you consider RX350 (which doesn't have the trackpad system, my dad has a 2012 RX450h, the joystick is kinda better than the trackpad ) and give your parents some cash from it?

But if you absollutely hate its features, then don't do anything to the lease.
Deal Addict
Apr 18, 2005
1718 posts
458 upvotes
Mississauga
If you want it.
- write a check for the amount and give it to your parents and have them buy it out.
- when Toyota sends you the ownership.. just head down to service ontario and transfer it (gift) it over. They charge you $20 to swear your related.

I did this with my in-laws.
[OP]
Member
Aug 30, 2017
202 posts
72 upvotes
Thanks all, I was going to get my parents to set up the finance and then i'd pay it off and they'd gift it to me so I didn't get dinged for taxes twice.

I'm just trying to figure out what the payments will be like, for me to drop $32K on a 3 year old car without the safety stuff doesn't feel right when I can get a loaded CRV for a bit more, or a RDX for even more. The QX50 is nice but a little too much money. I think I can get a RDX for about $23K more (so $55K) and it'll have all the bells and whistles and a less infuriating infotainment system, but for as little as my wife drives, the extra $23K isnt worth it - but if its a car we ultimately own, is it worth it?

I think the buying and flipping isnt for me, seems like too much work for just $1-2K.
Deal Addict
Jan 15, 2017
2552 posts
1877 upvotes
Your payments will depend on any amount you put down and the financing terms. Without any money down, your payments will be somewhat high. $32K financed for 4 years is $8000 a year plus interest.

It's a nice vehicle. You have to ask yourself how much are you willing to pay for a vehicle that will hardly be driven? You could easily lease something brand new with a low kilometre allowance each year for a much lower payment and have full warranty.
Deal Expert
User avatar
Apr 21, 2004
50604 posts
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I think it wasn't until 2017 that the NX got the DRCC as an optional equipment, which is odd because we got it on our 16 RAV4H as part of the technology package. I think the auto emergency braking is over-rated and I've seen it only light up thrice and only brake once though I don't drive the RAV4H as often as my wife and daughter.

Buy what you want. $23k over 10 years (your potential holding period) is a pittance for most households. You can also go CPO for the RDX or QX50 to make comparison more fair.

Don't go with the 1.5T CRV unless you are comfortable risking the motor oil dilution many have been experiencing.
Sr. Member
Jan 1, 2017
641 posts
456 upvotes
You are saying you are willing to pay $23k to get a better infotainment unit? It seems like a waste. Also these safety features are not really worth it. You can easily solve the infotainment issue by getting a phone mount and connecting your phone to the car to play music and use GPS from it.
Deal Guru
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Jul 12, 2003
10342 posts
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Markham
Curious why your parents doesn't want to keep the NX. It is basically almost a brand new car with A Lexus at 20k ish KM. Lower than my wife's 2016 NX Fsport3. Mine has 21700.
Retired Forum Moderator February 2009 - June 2015
Deal Addict
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Jul 26, 2007
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Toronto
Look up the used with similar options and kms in autotrader. If it's more then your residual + admin fees by few thousands, then transfer/buyout/take ownership whatever and sell it or keep it down the road when you have the car in your possession.

If used cars in autotrader is cheaper then the residual, just return it and forget it.

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