Automotive

Can a dealer retake a lease from another brand dealer?

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  • Aug 12th, 2021 9:48 pm
[OP]
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Mar 5, 2018
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Can a dealer retake a lease from another brand dealer?

Dear all,

We're having a lease of a Toyota Rav4 2020 for 36 months, there are still 18 months left. We just receive a letter from the dealer saying that they can end the lease sooner if we take another car. I'm wondering in that case can we go to another brand like Lexus to make a new lease and let them take back the lease of our Rav4?

By the way, our Rav4 lease is a little bit high 550$ / month / 36 months. We think to change for a Lexus NX for 48 months, it should be a little bit more expensive but we can get a better car. There is currently an incentive -4000$ with Lexus.

Thank you

Tom
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Nov 9, 2005
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Yes, I traded in a Lexus at another dealer - I had 2 years left - I needed a bigger car and had to get rid of my RC.
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Can you, yes of course. But know that you may not get quite the same discount on the new vehicle (although with the shortage of vehicles right now who really knows anymore).

The NX is smaller than the RAV4 and is in it's final year with an all-new model set to arrive soon so that's why it has such deep discounts available. Still a good vehicle if it suits your needs.
[OP]
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Mar 5, 2018
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The_Professor wrote: Can you, yes of course. But know that you may not get quite the same discount on the new vehicle (although with the shortage of vehicles right now who really knows anymore).

The NX is smaller than the RAV4 and is in it's final year with an all-new model set to arrive soon so that's why it has such deep discounts available. Still a good vehicle if it suits your needs.
I did search on Internet, it seems the NX is exactly the same size as the RAV4, no? We don't mind very much about the model year as we rent under company name. The RAV4 we have is 550$/month allins is little bit high. Over 16 moths it has only 7k km because the Covid and we don't drive that much, our need is about <10k km per year.
[OP]
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Mar 5, 2018
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By the way, do you know if the Lexus NX has the same easy stolen problem as with RX 350?
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TomShopper wrote: I did search on Internet, it seems the NX is exactly the same size as the RAV4, no? We don't mind very much about the model year as we rent under company name. The RAV4 we have is 550$/month allins is little bit high. Over 16 moths it has only 7k km because the Covid and we don't drive that much, our need is about <10k km per year.
They may be similar in exterior dimensions but the RAV4 has quite a bit more space internally. Again, that may not be an issue for you but just pointing it out.

Edit, this may be of help: https://www.lexuscarlsbad.com/research/ ... a-rav4.htm

Cargo volume in particular seems more limited in the NX but still decent.
[OP]
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Mar 5, 2018
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Thank you for the reference link. We don't mind about the cargo space, but the rear seats leg room of the NX is 1in less than the RAV4 it's a minus point.
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TomShopper wrote: By the way, do you know if the Lexus NX has the same easy stolen problem as with RX 350?
They have the same key fobs/security system so they are just as easy to steal. It all depends on how easy you make your vehicle to steal and if thief's can get a good return on the effort to steal it.
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Oct 16, 2008
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I have done it twice within 20 months basically they are buying your car and just as long as the numbers are good on your end you have no worries. The only issues I have heard of this lately is that Honda and GM (US) are not allowing current leasers to sell there vehicles to off brand dealers (Toyota, Ford Etc.) This can of course be challenged by the current leasers buying out their lease early and then selling to XYZ.

A quick side note make sure you get at least get one more quote prior to proceeding you might be surprised.
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TomShopper wrote: Thank you for the reference link. We don't mind about the cargo space, but the rear seats leg room of the NX is 1in less than the RAV4 it's a minus point.
I haven't hear anything about NX getting stolen, mainly interest are the bigger SUV such as RX, GX, LX and Highlander, etc.
My neighbor has their NX on the driveway every night and it is still there. Smiling Face With Open Mouth
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MP3_SKY wrote: I haven't hear anything about NX getting stolen, mainly interest are the bigger SUV such as RX, GX, LX and Highlander, etc.
My neighbor has their NX on the driveway every night and it is still there. Smiling Face With Open Mouth
Care to post address? haha

Are dealerships allowing people to test drive cars now? I mean why doesn't OP just go to a dealership and sit inside to see the difference in person?
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Apr 22, 2018
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TomShopper wrote: Dear all,

We're having a lease of a Toyota Rav4 2020 for 36 months, there are still 18 months left. We just receive a letter from the dealer saying that they can end the lease sooner if we take another car. I'm wondering in that case can we go to another brand like Lexus to make a new lease and let them take back the lease of our Rav4?

By the way, our Rav4 lease is a little bit high 550$ / month / 36 months. We think to change for a Lexus NX for 48 months, it should be a little bit more expensive but we can get a better car. There is currently an incentive -4000$ with Lexus.

Thank you

Tom
I would be a bit surprised if your RAV 4 Toyota Dealer will just buyout your car and let you walk to the Lexus dealer. The letter you got is from the dealer you purchased your RAV4 if you take another car from them.

I did a car swap earlier this year for my CRV with the original dealer I bought from, dealer was able to lower my lease payment due to lower interest rate now compared to 18months ago and loyalty rate kicks in. Dealer was able to maintain profit on the old CRV he bought from me and maintain profit selling the new car to me. I did my due diligence asking whether other Honda dealers can match this offer, they say is very difficult because each dealership used car inventory are different. The other Honda dealers do not see it profitable to take my old car, absorb the old lease, even in my case sell me a new car to maintain profitability. It boils down to an inventory issue.

In your case, the toyota dealer may be at business profit or loss by taking your old car. (Note this is business loss, not your simple Kijiji pricing minus the trade-in/buy out value, the dealership needs to make profit and pay their staff etc...somehow by moving the profit from new car department to used car department vice versa) If it is their business loss to take your old RAV 4, why would they let you walk away to Lexus? The only way the dealership can maintain their profit is to sell you a new car, which sounds like what the letter is alluded to.

To your thread title is confusing, how can a "Toyota" dealer retake a lease from a "Lexus" dealer? Assuming strictly talking new car here, the title doesn't make sense at all. You can try to ask your Toyota dealer take your RAV4 and make a lease happen with an used Lexus sitting in the Toyota dealership if that is even an option?

Keep us posted how you make out. I hope I am wrong here, that you can simply walk away of the lease with zero obligation hands clean.

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