Ending lease early, new lease, cross manufacturer
10-24-2014, 11:11 AM
#1
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Ending lease early, new lease, cross manufacturer
So, here's a question I haven't been able to find an answer to:
I am 13 months away from the end of an Infiniti lease and I'm look at a new Lexus that I would lease/finance.
Is there any advantage to go to a Lexus dealership whose parent company also owns an Infiniti dealership? Is there any advantage the Lexus dealership might have (other than just ripping me off and then giving the car to their Infiniti dealership)? I have to think they would have more of an incentive to get me out of my Infiniti lease.
Any thoughts on this approach?
I am 13 months away from the end of an Infiniti lease and I'm look at a new Lexus that I would lease/finance.
Is there any advantage to go to a Lexus dealership whose parent company also owns an Infiniti dealership? Is there any advantage the Lexus dealership might have (other than just ripping me off and then giving the car to their Infiniti dealership)? I have to think they would have more of an incentive to get me out of my Infiniti lease.
Any thoughts on this approach?
10-24-2014, 11:27 AM
#2
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How are you going to get out of your lease early? have you paid off the lease total already? The only way you get out of that lease is through Infiniti and if you've not paid it off, they will not be incented to let you out early without paying up the remaining 13 months of lease payments.
Now if THEY offered to take back the lease and put you in a new one, that's different. But i've never heard of a cross manufacturuer situation like your asking about. You are paying the lease to Infiniti, not the dealership. I heard where Volkswagan offered 3 years lessee's the opportunity to bring their cars back two years early but only if you signed a new lease for 3 years on the new car. its there way of getting another year out of you and putting the car you had up for sale and getting their money out of the car quicker.
Now if THEY offered to take back the lease and put you in a new one, that's different. But i've never heard of a cross manufacturuer situation like your asking about. You are paying the lease to Infiniti, not the dealership. I heard where Volkswagan offered 3 years lessee's the opportunity to bring their cars back two years early but only if you signed a new lease for 3 years on the new car. its there way of getting another year out of you and putting the car you had up for sale and getting their money out of the car quicker.
10-24-2014, 11:48 AM
#3
The only way this will happen is if the Infiniti dealership makes money off of you, as well as the Lexus dealership. Even though they are both owned by the same company, they both have the same motive, which is to make money.
They will be motivated to get the best of both worlds, which to to have you pay your remaining lease debt as well as get you locked into a new lease. With this being said, I wouldn't be surprised if they offered you an option of rolling your remaining payments into a new lease plan, but I can not foresee any reason they would be motivated to get you out of the lease for free. You would have leverage for a couple months of forgiveness if you were looking to buy another Infiniti, that's about it.
They will be motivated to get the best of both worlds, which to to have you pay your remaining lease debt as well as get you locked into a new lease. With this being said, I wouldn't be surprised if they offered you an option of rolling your remaining payments into a new lease plan, but I can not foresee any reason they would be motivated to get you out of the lease for free. You would have leverage for a couple months of forgiveness if you were looking to buy another Infiniti, that's about it.
10-24-2014, 12:37 PM
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Ultimately, I figured there was a greater likelihood that they would actually want to buy out the Inifiniti -- they could sell it at their Infiniti dealership.
On this basis, the amount I would owe should be just the delta between the remaining payments plus the buyback minus what their wholesale buying price would be.
Using real numbers, I owe about $8,900 in remaining lease payments, plus the buyback $23,000 = $31,900. If the car is actually only worth $27,000 wholesale -- then instead of owing $8900, I should only owe $4,900 ($31,900 less 27,000).
Presumably, I could then discuss rolling the $4,900 into my new Lexus lease.
Does this strategy make sense?
On this basis, the amount I would owe should be just the delta between the remaining payments plus the buyback minus what their wholesale buying price would be.
Using real numbers, I owe about $8,900 in remaining lease payments, plus the buyback $23,000 = $31,900. If the car is actually only worth $27,000 wholesale -- then instead of owing $8900, I should only owe $4,900 ($31,900 less 27,000).
Presumably, I could then discuss rolling the $4,900 into my new Lexus lease.
Does this strategy make sense?
10-24-2014, 01:30 PM
#5
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Not sure you'd get away without paying the addtional $4K regardsless of how the math works out.
Also, the buyout amount is calculated based on what the expected value of the car is - at the END of the lease. Your residual value is higher right now because the last 13 months havent lapsed yet.
Also, the buyout amount is calculated based on what the expected value of the car is - at the END of the lease. Your residual value is higher right now because the last 13 months havent lapsed yet.
10-24-2014, 02:39 PM
#6
Well if you have 13 payments left, you either take those 13 payments and add them to your next lease or they take the value of your vehicle and see what the difference vs your buy out and then add that to your new lease.
If you have a G sedan....well its not gonna be pretty. Just out of curiosity, where are you located?
If you have a G sedan....well its not gonna be pretty. Just out of curiosity, where are you located?
10-24-2014, 02:51 PM
#7
Ultimately, I figured there was a greater likelihood that they would actually want to buy out the Inifiniti -- they could sell it at their Infiniti dealership.
On this basis, the amount I would owe should be just the delta between the remaining payments plus the buyback minus what their wholesale buying price would be.
Using real numbers, I owe about $8,900 in remaining lease payments, plus the buyback $23,000 = $31,900. If the car is actually only worth $27,000 wholesale -- then instead of owing $8900, I should only owe $4,900 ($31,900 less 27,000).
Presumably, I could then discuss rolling the $4,900 into my new Lexus lease.
Does this strategy make sense?
On this basis, the amount I would owe should be just the delta between the remaining payments plus the buyback minus what their wholesale buying price would be.
Using real numbers, I owe about $8,900 in remaining lease payments, plus the buyback $23,000 = $31,900. If the car is actually only worth $27,000 wholesale -- then instead of owing $8900, I should only owe $4,900 ($31,900 less 27,000).
Presumably, I could then discuss rolling the $4,900 into my new Lexus lease.
Does this strategy make sense?
If you do this, Infiniti is not only going to want every dime of their money, but also before they surrender the title to whomever you sell the car to. You will need to take the delta of this transaction out of your pocket and, Im assuming, pay it to the party you sell the vehicle to so they can acquire the clear title.
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10-27-2014, 11:30 PM
#8
Ultimately, I figured there was a greater likelihood that they would actually want to buy out the Inifiniti -- they could sell it at their Infiniti dealership.
On this basis, the amount I would owe should be just the delta between the remaining payments plus the buyback minus what their wholesale buying price would be.
Using real numbers, I owe about $8,900 in remaining lease payments, plus the buyback $23,000 = $31,900. If the car is actually only worth $27,000 wholesale -- then instead of owing $8900, I should only owe $4,900 ($31,900 less 27,000).
Presumably, I could then discuss rolling the $4,900 into my new Lexus lease.
Does this strategy make sense?
On this basis, the amount I would owe should be just the delta between the remaining payments plus the buyback minus what their wholesale buying price would be.
Using real numbers, I owe about $8,900 in remaining lease payments, plus the buyback $23,000 = $31,900. If the car is actually only worth $27,000 wholesale -- then instead of owing $8900, I should only owe $4,900 ($31,900 less 27,000).
Presumably, I could then discuss rolling the $4,900 into my new Lexus lease.
Does this strategy make sense?
Say it auctions for $20K, you'll owe $11K
11-02-2014, 08:26 AM
#9
I've turned in a leased car at another manufacturer before.
You can "buyout" a lease at any point. Call the company that you have the lease through and determine the exact buyout. The amount they give you will generally be good for 5-7 days then get recalculated.
Go to the dealership where you want to buy/lease a new car and find out what they will give you for your car and decide if the math works for you.
When I traded in my lease, I had switched jobs and dropped my commute from 45 miles a day to 5, so 2 years into a 3 year lease, I had 8,000 miles on my car instead of 24,000 (or something like that). My car was worth on trade more than the buyout amount. So the dealer bought out my lease and applied the extra money towards the new car. They then put my car out on their lot for sale.
You can "buyout" a lease at any point. Call the company that you have the lease through and determine the exact buyout. The amount they give you will generally be good for 5-7 days then get recalculated.
Go to the dealership where you want to buy/lease a new car and find out what they will give you for your car and decide if the math works for you.
When I traded in my lease, I had switched jobs and dropped my commute from 45 miles a day to 5, so 2 years into a 3 year lease, I had 8,000 miles on my car instead of 24,000 (or something like that). My car was worth on trade more than the buyout amount. So the dealer bought out my lease and applied the extra money towards the new car. They then put my car out on their lot for sale.
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