WAY over mileage on LEXUS RX...Help

[David70]

Originally Posted by nick3753

This. Or just buyout.

I am not willing to risk jail time over $7500 but I guess everyone makes their own choices.

[GATORB8]

How is she compensated for her travel? If she can write it off, you can get a big chunk of the money for the payoff in tax savings from the business mileage deduction.

[cruisingdownthestreet]

Originally Posted by yousefnjr

Get new girlfriend

no, no. that's financial ruin.

[RickFLM4]

Originally Posted by yousefnjr

Get new girlfriend

Originally Posted by cruisingdownthestreet

no, no. that's financial ruin.

"Didn't I teach you anything, you gotta problem with your woman you don't go out and get another one. Then you got two problems."

- Frank Barone

[Jacblack]

She needs to get a vaulation of the vehicle. I will recommend the carmax route to see where she stands. You need some rough numbers before going in to make a proper decision.

She also needs to determine if she is going to even want to drive the car. I've seen to many customers make that choice finance the buyout and end up wasting additional money on a car they don't actually want. Remember she won't kept prime rates buying out the lease because of the miles and what the car is going to book out at. TFS standard rates are right around 4-5% on used cars, the lease buyout doesn't qualify for any special APRs.

She could also look at rolling her mistake into another lease properly if she doesn't want to layout or have the means to lay out the cash needed for the mileage penalty.

Remember in NY she has to pay sales tax on the buyout as well which is the residual so account that into math as well. Which is why I'm pro rolling the negative equity into a new lease as it will offset the final amounts do to the trade in credit she would be entitled to.

As far as TFS assistance, there is nothing they can do for the RX lease, the only provide assistance going forward, not backwards. Her account may qualify for rebates on new lease or purchase which again could incentivize her to do something.

If she were my customer, i would be recommended rolling the RX into a new lease with the addition mileage where she won't go crazy over if any, or even calculate prepaying for additional miles as well.

My second would be to pay the penalty.

Buying the car to me is the last resort.

[Jacblack]

Originally Posted by Torgus

Rolling it over is the worst case. She will be massively upside down from the start.

She would be rolling it over into a lease NOT a purchase. Leasing is the best way to get rid of negative equity. She would carry the car until the end of lease and boom walk away from the car. She would get gap so if she wrecks it then it gets paid off. In 24/36 months she would be resetting the clock on the mistake from the RX lease.

[Jacblack]

Also you payoff is very easy to calculate you don't even need to make any calls, the reason it changes month to month is because you are steadily making payments.

It's your residual plus your remaining payments on the lease for a buyout.

For a lease drop you just need to make all remaining payments of the lease term.

[boosted]

Originally Posted by kunzjob

Thanks for the info. Seems like the general consensus is to buy it outright. Not a problem with that just thought I would see if there were any other ideas out there. I have only purchased my cars so this is all new to me.

Lexus charges .25 per mile over.

Don't. If you purchase at lease-end, you'd pay taxes again .
Return and get new 2017 RX lease and tell her to watch the miles . I'm in the same position with wifey but lease expires in 5 mo. Go to a dealer that has most inventory and get a new vehicle. I spoke with dealership and they might work something out by being a loyal Lexus owner (this is her 3rd Lexus).

However, if you just want to walk away then purchase, have her drive until 80k miles then trade-in for something newer with under 15k mi. We lease our vehicles due business write off, otherwise I would purchase barely used and $ave.
Good luck!

[WhatsADSM]

Originally Posted by fkim119

Got to buy it.

Even getting some help on the mileage, it's going to expensive. I would buy it. Drive it for another 2-3 years.

This.

Buy it, drive it another year or two to recoup the loss and sell it private party

[Mingwan]

Originally Posted by yousefnjr

Get new girlfriend

Or tell her to eat the fees or gtfo.

[G35POPPEDMYCHERRY]

plus one on the fire

[DASHOCKER]

how does this happen?

[backhill]

Buy it. If she's racking up this many miles, pulling ahead into another lease won't make any sense. Paying the fees for either cancelling the lease or the overage in miles will just put you in a car-less position, with a lot of money out of pocket and nothing to show. But without knowing all of the details I can't say for sure.

Like others have said. Do the math on all options and go with the one that hurts pockets the least. If the residual is 30 and a trade in is 22, you may get a bank to come up as high as 26-28 and still have to foot the bill for the remainder of the buyout plus taxes which would be then equal to the fees on the additional miles. In that case walk away from the car and buy something cheaper to just slap miles on. 20k miles annually will be murder on depreciation.

[Ric in RVA]

Originally Posted by Torgus

set the car on fire and be done with it.

I was waiting for that response.

Say the insurance agent......

[Jacblack]

Originally Posted by DASHOCKER

how does this happen?

It happens a lot. Lifestyle changes or most of time a dealership doesn't discover enough about the customer to properly recommend what makes sense. They don't even look at the bigger picture, if you set the customer up right they will be a repeat buyer. If you burn them they will never return. Most are caught up in the quick dollar. I see it a lot at work and it's horrible.

[BEM-S4]

Originally Posted by Ric in RVA

I was waiting for that response.

Say the insurance agent......

Better off putting it into a body of water... automatically total loss and no risk of blowing anybody up. And based on the latest GT maybe even helpful to the environment if you start a coral reef.

[eluded]

Cut your losses.

[Bluey//M]

First you need to decide if you want to keep or ditch the car.

If you keep the car:
Go to Toyota Financial services/Lexus financial. Ask for a finance on the vehicle. The max they do is a 4 year finance. Problem is a 4 year finance on a 30K car will be mid 600s.

If that price is too steep:
You'll need to roll in negative equity onto your next lease. The car you lease next MUST be over 50K in order to add 10K of negative equity as you CANNOT exceed 120% of cars value.

Alternatively, if you're dealer is savvy and most Lexus or heck if you're trading it in get an Infiniti Q50 will alter the price of the vehicle and say they sold it to you for 45K [when in fact you bought it for 40K and added 5K of negative equity to yield a 50k loan].

There are a lot of options but it really depends on whether you want the car or not. I've been there done that numerous times and know all the tricks of the trade. PM me if you need more clarity. It's late and I understand what I wrote may be impossible to comprehend.

Best car to roll in negative equity is a car that has very minimal depreciation. BMWs come into mind.

[KingOfJericho]

Originally Posted by Bluey//M

First you need to decide if you want to keep or ditch the car.

If you keep the car:
Go to Toyota Financial services/Lexus financial. Ask for a finance on the vehicle. The max they do is a 4 year finance. Problem is a 4 year finance on a 30K car will be mid 600s.

You can easily find financing elsewhere to extend the term. He's not at all limited to 4 years.

[MightyMouseTech]

Originally Posted by Jacblack

She could also look at rolling her mistake into another lease properly if she doesn't want to layout or have the means to lay out the cash needed for the mileage penalty.

And this is also how you end up with a $60,000 Honda Civic.

[bb1857]

Hit the pause button and give us more details. Everyone giving their opinion without knowing the particulars. If it's purely about money then its a simple math problem.

How many miles over is she right now? How many months are left on the lease?

Get that number multiplied by price per mile and get total. If that number is less than an actual trade in value then buying it out is silly. Also I understand the whole KBB and Edmunds thing but you need a real number because those two sites have NEVER bought a car from anyone so the number is meaningless.

Other option you have to get rid of it besides the payoff is multiply the number of payments left plus the added mileage fees. Many times this number is better for you because you still take advantage of an inflated lease end residual but you are just doing it sooner.

One last thing is check your state laws on buying a lease because many times you get hosed with taxes and that can cost a bunch of money that adds to the problem versus solving it. Being a former F&I manager I dealt with these situations all the time so I am happy to help thru the details if you'd like.

[Ab28]

The excess mileage charge may be close to what you would lose on the sale if you bought it.

You may end up getting very close to Residual-7500.... or worse


I personally wouldn't buy the car.

What would you do if you paid $32k to buy the car back, and then get offers around $20k?

I know the overage charges are expensive, but at least the cost is known.