Lease Takeover Help

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Mar 16th, 2022 4:04 pm

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Mar 14th, 2022 5:29 pm

MayankY21823 [OP]: Jr. Member; Dec 22, 2020; 124 posts; 69 upvotes; Oakville, ON

Mar 14th, 2022 5:29 pm

Lease Takeover Help

Hi All,

I am a newbie with car buying & because of the low inventory issues I am also looking at lease takeover. I searched and found a Lexus RX450h 2021 + Executive Package but I don't know how the lease take over works and what all should be taken into consideration and if this is good deal or not.

The details are :

Payment Details
Current Payment: 1,074 CAD/month + tax
Required Payment: 11,000 CAD
Payment Including Incentive: 1,467 CAD/month + tax
Residual Value: 28,194 CAD
Months to End: 28 months (Jul, 2024)

Vehicle Status
Contract Allowance: 20,000 km/year
Current Odometer: 15,800 km total
Available Now: 19,657 km/year (1,638 per month)
Excess Km Cost: 0.20 CAD/km

To own this vehicle today (buying it as a used car) would cost:
69,266 CAD
Total Vehicle Debt: 67,932 CAD
Paid so Far: 9,666 CAD (14% Paid)
Remaining Lease Payments: 30,072 CAD
Residual Value: 28,194 CAD
Required Payment: 11,000 CAD

Thanks in advance

Edit1: Updated Package
Edit2 : Updated Model

Last edited by MayankY21823 on Mar 16th, 2022 3:00 pm, edited 2 times in total.

18 replies

Mar 14th, 2022 6:32 pm

booblehead: Deal Expert; Jul 30, 2007; 32220 posts; 19524 upvotes; Toronto

Mar 14th, 2022 6:32 pm

Haha. The current owner wants you to pay him $11,000 for the takeover + the monthly contracted payment to Lexus FS + lease transfer admin fee + inspection costs.

Do you have a pair of running shoes ? Put them on and run like Forrest Gump

+9

Mar 14th, 2022 7:16 pm

EP32k2: Deal Expert; Jan 15, 2006; 20079 posts; 20964 upvotes; Richmond Hill

Mar 14th, 2022 7:16 pm

booblehead wrote: ↑ Haha. The current owner wants you to pay him $11,000 for the takeover + the monthly contracted payment to Lexus FS + lease transfer admin fee + inspection costs.

Do you have a pair of running shoes ? Put them on and run like Forrest Gump

Lol what a joke

Mar 14th, 2022 7:21 pm

aleks: Deal Addict; Jan 8, 2007; 3228 posts; 1821 upvotes; AB

Mar 14th, 2022 7:21 pm

What package is this? Best thing to do is simply build one on Lexus.ca with same package and see what payment you get with $11,000 down to compare to the used one. If payments are around the same I would just order a new one and wait.

+1

Mar 15th, 2022 1:23 am

xjesterxx: Deal Addict; Jul 5, 2011; 2318 posts; 2591 upvotes; Toronto

Mar 15th, 2022 1:23 am

Doesn’t sound like a good deal to me OP.

2013 Wins - $1320 - Woohoo!

+1

Mar 15th, 2022 1:33 am

htc***: Deal Addict; Mar 17, 2009; 1950 posts; 1358 upvotes; Toronto

Mar 15th, 2022 1:33 am

MayankY21823 wrote: ↑ Hi All,

I am a newbie with car buying & because of the low inventory issues I am also looking at lease takeover. I searched and found a Lexus 450h 2021 but I don't know how the lease take over works and what all should be taken into consideration and if this is good deal or not.

The details are :

Payment Details
Current Payment: 1,074 CAD/month + tax
Required Payment: 11,000 CAD
Payment Including Incentive: 1,467 CAD/month + tax
Residual Value: 28,194 CAD
Months to End: 28 months (Jul, 2024)

Vehicle Status
Contract Allowance: 20,000 km/year
Current Odometer: 15,800 km total
Available Now: 19,657 km/year (1,638 per month)
Excess Km Cost: 0.20 CAD/km

To own this vehicle today (buying it as a used car) would cost:
69,266 CAD
Total Vehicle Debt: 67,932 CAD
Paid so Far: 9,666 CAD (14% Paid)
Remaining Lease Payments: 30,072 CAD
Residual Value: 28,194 CAD
Required Payment: 11,000 CAD

Thanks in advance

It is too much $$$ for 2021 model. You can check with this dealership for 2022 NX 450h with luxury package and cost less than 69k.

2022 NX 450h

Mar 15th, 2022 8:27 am

Talamasca: Deal Guru; Apr 26, 2004; 12787 posts; 3235 upvotes; Mississauga

Mar 15th, 2022 8:27 am

One of the big factors about a lease takeover is that your credit rating needs to be as good or better than the current lessee, so make sure you have a good rating. The financial institution that owns the lease has the current lessee under contract already, so they will only give that up if you can match or exceed what they already have.

Mar 15th, 2022 10:27 am

aleks: Deal Addict; Jan 8, 2007; 3228 posts; 1821 upvotes; AB

Mar 15th, 2022 10:27 am

htc*** wrote: ↑ It is too much $$$ for 2021 model. You can check with this dealership for 2022 NX 450h with luxury package and cost less than 69k.

2022 NX 450h

OP edited the post saying it's an executive package. So that's either a $75 or a $77k car before fees and taxes depending on if it's a NX or RX. Given the crazy used car prices the asking price all of a sudden isn't that unreasonable. However I would still order a new one as the incremental isn't that great when spending this much $

Mar 15th, 2022 10:30 am

booblehead: Deal Expert; Jul 30, 2007; 32220 posts; 19524 upvotes; Toronto

Mar 15th, 2022 10:30 am

http://boombo.ca/listingInfo.php?id=55619

Looks like this is the one in question.

You need to find out and/or get a copy of the purchase/lease agreement from current owner to see all details of this car (lease structure and extended warranty. I don't take advertised details as given, the ad says he paid $10,000 in down and now he wants all of it back (and then some). You will also need to find out if the current lease is in good standing.

Flag raised in the ad .... why would anyone doing a simple lease would purchase expensive and extensive warranty.

+1

Mar 15th, 2022 10:40 am

StatsGuy: Deal Fanatic; Dec 20, 2018; 8066 posts; 7381 upvotes

Mar 15th, 2022 10:40 am

booblehead wrote: ↑ http://boombo.ca/listingInfo.php?id=55619

Looks like this is the one in question.

You need to find out and/or get a copy of the purchase/lease agreement from current owner to see all details of this car (lease structure and extended warranty. I don't take advertised details as given, the ad says he paid $10,000 in down and now he wants all of it back (and then some). You will also need to find out if the current lease is in good standing.

Flag raised in the ad .... why would anyone doing a simple lease would purchase expensive and extensive warranty.

i "think" the 10k was security deposit (hence the 0% interest for lease which i don't think lexus ever offered, but i think it's every $1000 in security deposit gets a 0.15% reduction in rate) so whoever takes over the lease gets it back at end.

so basically it's a straight takeover plus admin fees/safety. not bad considering current car market and especially if someone needs the car now eventhough there's like a lot of extra warranties purchased

but ya, seems like somebody in finance manager's office had a great day when the original purchaser went through there...so they somehow got ECP (hence the "free" maintenance) and another warranty on top? lol

Last edited by StatsGuy on Mar 15th, 2022 10:43 am, edited 1 time in total.

Mar 15th, 2022 10:41 am

aleks: Deal Addict; Jan 8, 2007; 3228 posts; 1821 upvotes; AB

Mar 15th, 2022 10:41 am

booblehead wrote: ↑ http://boombo.ca/listingInfo.php?id=55619

Flag raised in the ad .... why would anyone doing a simple lease would purchase expensive and extensive warranty.

People don't know what they are doing, as shown by putting 10k down on a lease, buying warranties past the lease term, maintenance plans and now trying to recover it. Luckily for them, the market is such that they should be able to get most of that back. Pre-Covid that 10k would have been all gone.

Mar 15th, 2022 10:56 am

booblehead: Deal Expert; Jul 30, 2007; 32220 posts; 19524 upvotes; Toronto

Mar 15th, 2022 10:56 am

with the ad & Op's giving fairly unclear details, that's why OP needs to ask for the copy of the agreement to see all items shown on it and then re-evaluate it

OP, if that lease does come with extended warranty, do you want that ?

Mar 15th, 2022 10:07 pm

jeeva86: Deal Fanatic; Jul 4, 2005; 8176 posts; 2131 upvotes; Ottawa

Mar 15th, 2022 10:07 pm

Just make sure you’re aware of all the thefts with this vehicle. I rarely see any Lexus suvs on the road anymore. Used to be a dime a dozen.

Heatware

Mar 16th, 2022 10:43 am

MayankY21823 [OP]: Jr. Member; Dec 22, 2020; 124 posts; 69 upvotes; Oakville, ON

Mar 16th, 2022 10:43 am

booblehead wrote: ↑ with the ad & Op's giving fairly unclear details, that's why OP needs to ask for the copy of the agreement to see all items shown on it and then re-evaluate it

OP, if that lease does come with extended warranty, do you want that ?

Frankly speaking I think extended warranty is just another scam used by dealers to get more money out of your pocket

Mar 16th, 2022 10:48 am

booblehead: Deal Expert; Jul 30, 2007; 32220 posts; 19524 upvotes; Toronto

Mar 16th, 2022 10:48 am

That's true ... but there are people who just want peace of minds as they figure the cost to repair today's fancy vehicles could be an 'eye popping' experience. But for Lexus, I would rather just bank that extended warranty $ and pay as you go, if you are keeping the vehicle 5-6 yrs.

+1

Mar 16th, 2022 1:13 pm

ichibansan: Deal Addict; Sep 14, 2012; 1575 posts; 2307 upvotes; Toronto

Mar 16th, 2022 1:13 pm

jeeva86 wrote: ↑ Just make sure you’re aware of all the thefts with this vehicle. I rarely see any Lexus suvs on the road anymore. Used to be a dime a dozen.

Seriously?

+1

Mar 16th, 2022 1:46 pm

EP32k2: Deal Expert; Jan 15, 2006; 20079 posts; 20964 upvotes; Richmond Hill

Mar 16th, 2022 1:46 pm

ichibansan wrote: ↑ Seriously?

They RX/NX are just as common as Rav4's here...

Mar 16th, 2022 3:47 pm

Talamasca: Deal Guru; Apr 26, 2004; 12787 posts; 3235 upvotes; Mississauga

Mar 16th, 2022 3:47 pm

ichibansan wrote: ↑ Seriously?

It's regularly reported on the news. Lexus has a weak security system that they refuse to do anything about. Combine that with their high value and it's easy pickings for car thieves. They can be broken into and stolen in seconds.

+1

Mar 16th, 2022 4:04 pm

EP32k2: Deal Expert; Jan 15, 2006; 20079 posts; 20964 upvotes; Richmond Hill

Mar 16th, 2022 4:04 pm

Talamasca wrote: ↑ It's regularly reported on the news. Lexus has a weak security system that they refuse to do anything about. Combine that with their high value and it's easy pickings for car thieves. They can be broken into and stolen in seconds.

I'm sure he's addressing the part where someone said they rarely see Lexus CUV's on the road.

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