Advice on possible FR-S lease take over?

[Brocklanders]

I'm not sure this is the correct spot, but being canadian prices, I thought it was appropriate.

So I'm starting to rebound from a shitty Divorce. I just got a decent raise, and my 10 year old car is on its last legs. I was looking at a few new cars and the FRS is on my short list. I have great credit, and have bought new in the past, but for the last few years have been running a beater to save $$. Randomly a friends neighbor mentioned to me that he wants out of his lease he started last august. Long story short this almost 60 something man decided that living in the snow belt and driving an FRS on stock tires was maybe a bad idea. (I've been told he's an impetuous dude). So the short details are as follows: 2013 Scion FRS Stock with a hair under 10k kms. Leased august 10 '12 @ $361 monthly taxes in for 36 months. 60k kms allowed over 3 years. $16633 buy out, $3696 down And for those needing hard numbers, I have his lease agreement here:

Kilometers allowed: 60000 Charge of $.07 per km overage
Delivery price including freight pdi..etc. Minus Tax: $27584
Cash down payment: $2500
Net Leased Vehicle Price: $25084
Estimated Residual Value of Vehicle: $16633
Amounted to be Amortized: $8450
Total Lease Implicit Finance charge: $3051.56
Annual Percentage rate: 4.9%
Monthly Payments: 36
Base monthly payment: $319.50 GST/HST: 41.40 total Monthly Payment: $361.04
total of monthly Payments: $12997.44
Date started: Aug. 10 '12
Amount due on delivery: Net cash down payment: $2499.96
GST/HST: $324.99
Vehicle License fee: $20
Other? $490.65 ( think this is a dealer "Platinum Security Protection Guarantee") subtotal: 3335.60
First monthly in advance: 361.04 total :$3696.64
FYI Canadian MSRP with taxes and delivery, pdi etc is $31,521.35


I suppose my question is, is this a good lease at all? Especially considering I want to buy it out and either pay a large chunk off the hop, or finance the rest?
TL;DR: 2013 Scion FRS Stock with a hair under 10k kms. Leased august 10 '12 @ $361 monthly taxes in for 36 months. 60k kms allowed over 3 years. $16633 buy out, $3696 down. CDN MSRP: $31,521.35
EDIT: Sorry for the shitty formatting. that's hard to read.

[Skurj]

What does he expect from you? Just to take over the payments?

You might also want to find a dealer and do the numbers for a new one and see how that works for you as far as buying instead of leasing.

[chenshuo]

I gotta tell ya, for this car, its gonna be really hard to keep it 60000km in 3 years. Once you drive this car, you wont want to stop

[Brocklanders]

He doesn't want anything, just the lease transfer ($400) Which I'm pretty sure I can talk him out of.
I've done that on the scion website, and with what I have to put down at the moment( currently nothing) I cant even get close to the monthly. To hit the same monthly payment on the lease, I have to put down $3500, which it looks he did, to get $360 taxes in.
Financing is significantly higher.
I should have close to $10k after a few projects are finished this year to put down on the car once I buy it out, so I'd only be financing much less than $10k after the buyout.
I've just never leased before, and I'm very unsure of all this.

[Brocklanders]

And I have a second summer car I drive quite a bit, so the kms aren't an issue doubly due to 2 cars, and since I'm buying it out, I don't care what the kms are.

[Juurian]

if you feel that you wont be modding the car lease it. If you do plan on modding the car, buy it out or buy a new one instead IMO.

[Brocklanders]

People seem to be hung up on the lease. The lease itself is simply a way I can get in to a new car with nothing down and low monthly.
I fully intend on buying out the car. A lease to me is just an expensive rental. The lease payment is low and the current leasor paid $3696.64 down and 8 payments equating to $2888.32. He's eating $6584.96 of the cost and I have no problem picking up a used FRS with way under 10k kms for $6600 off the price.

With that knowledge is it a good idea? lol

[Kayzer Soze]

http://www.leasebusters.com/en/details.asp?ID=142254

if you want an automatic BRZ.... saw that when shopping for a car last week, but went with a manual demo brz.

[Kayzer Soze]

btw, i did a lease takeover on a 370z a few years ago, im pretty sure you can buy it out right away, but the interest is already price in and wont be removed..... if this is the case, theres no point in paying anything more than the monthly payments.

but if you intend to buy back in the end, the higher the downpayment and the more monthly payments already past makes it that much more interesting a deal

[Brocklanders]

That BRZ is on a 42 month lease, but SIGNIFICANTLY less on the buy out...it is 1.5 years longer though..

I would just pay the lease as is, then pay off the buyout and finance the rest. I just honestly don't know if that's a good idea or not, most people I've talked to seem to have no idea and guess either a yes or a no.

[Juurian]

10k km's less you don't know how that car was driven, if i were to buy a car thats "almost" new i'd just eat the brand new car price just to get piece of mind and not have to worry about it down the long road.

you asked for advice , i just gave you my two cents. plus you get the new car smell =D

[Brocklanders]

lol, sage advice I'm sure, but financially sometimes whats ideal and whats possible are at two ends of the doable spectrum.

[mrdanyo]

I've never leased a car before, so can you explain to me how this works?

Let's use the above link on the 42 month lease as an example. (http://www.leasebusters.com/en/details.asp?ID=142254)

$400 * 48 months = $19200
+ $4070 down = $23270
+ $6980 purchase option = $30250

Doesn't that make the final price of purchase to own a leased car in this scenario cheaper than going to the dealership and paying a full cash buyout?
Or am I using the "purchase option" incorrectly? Somebody enlighten me, haha.

[Brocklanders]

Using the lease details of my possible lease:
Estimated Residual Value of Vehicle: $16633
Amounted to be Amortized: $8450
Total Lease Implicit Finance charge: $3051.56
Total down payment:total :$3696.64

= $31830

Canadian MSRP with taxes and delivery, pdi etc is $31,521.35

That really makes me realize that the financing of whatever remains of the $16633 buyout is what could kill you. The interest on the almost $17k amortized over however long is what you'd be paying over MSRP.
You pay more to finance a car over msrp regardless, but the rate had better be good. Clearly a car that's a hot as this will NEVER get a 0% from the dealer.