Advice on possible FR-S lease take over?

[Brocklanders]

Anyone else?

[KingGeo]

Never buy out a lease.
as you pointed out in your last post, the buyout of the residual is a terrible deal.
I have leased all my new cars, including my FRS, and have no problem with it. but i also know that i wont keep a car for more then 5 years anyway.

as someone else mentioned, if you plan to mod then dont lease. if you plan to buy it out, dont lease.
if you get bored with cars every 3-5 years or just like the newer models and lower monthly, then lease.

IMO this deal looks ok but only if you give up on the buy out plan.

[abitolder]

living in oshawa down the road from you, i would be more concerned with rust on all of those 10mm bolts under and around the car, and whether he had it rustproofed, we have seen how many potential areas there are for corrosion on these if winter driven, my advice is spend a bit more and get a new one.

[Slick]

Originally Posted by Brocklanders

Anyone else?

I've gone through leasing a few times, but when I got my first Miata I got a great deal by taking over an existing lease which saved me $$ and money on the front end.

At the end of the term, I bought it out and was still cheaper than having financed one, simply because of the downpayment that the previous lessee had made toward the car.

It comes down to choice. Save a bit of money or buy new and know it's history.

[pheoxs]

There is some interesting (odd) advice in this thread that I don't agree with.

Simply put, if you take over the lease, pay the remaining months, and then buy out the car, you are paying 23k for a 30k vehicle that has 10k kms on it.

I haven't seen a single used FR-S go for 23k in Canada.

If you believe he took proper car of it, did the first few oil changes on time, and didn't abuse it, then its a great deal. However be sure that you can afford the buyout at the end if you decide to go this route. A lot of times its easy to say I'll just buy it out at the end, but then either come up short with funds or run into a snag and can't.

[f0rge]

This is way cheaper than my lease on a new FR-S. You should take advantage of the money this guy put down, ride out the lease and then buy the car when the lease it up.

As mentioned right above me, you'll end up saving a ton because of how much he's already paid into the car/lease.

Even if you only ride out the lease and return the car, you're still saving a ton of money over new.

[Kayzer Soze]

The buy back price is before tax so you know.... In my opinion, as long as you don't have to put money down to cover his down payment, and ur simply taking over his payments, its not such a bad deal. Just have car inspected at dealership obviously.... Since ur leasing you have less risk since you can give it back to dealership after lease is up.

Buyout is only worth it if value of car is superior at the time, but by then who knows, maybe you'll want to get a 2016 model instead.

If he wants you to give him his down payment , then definitely a bad deal

[wparsons]

Originally Posted by KingGeo

Never buy out a lease.
as you pointed out in your last post, the buyout of the residual is a terrible deal.
I have leased all my new cars, including my FRS, and have no problem with it. but i also know that i wont keep a car for more then 5 years anyway.

as someone else mentioned, if you plan to mod then dont lease. if you plan to buy it out, dont lease.
if you get bored with cars every 3-5 years or just like the newer models and lower monthly, then lease.

IMO this deal looks ok but only if you give up on the buy out plan.

If the car was leased with $0 down, and/or has close to the full term left in the lease it's not a good idea if you plan to buy it out, BUT if the original buyer put a significant amount down or the lease is a good portion through it's term then taking over without giving them equivalent cash effectively lowers the buyout by the amount already paid off.

If you take the car in question here as an example, the original buyer put down over $6k so now the buyout is the equivalent of $10k, not $16k since you're paying $6k less in payments over the life of the lease.

If you take the 8 months of payments out, there's $10108 left in lease payments plus the buyout of $16633 for a total of $26741. If you factor in tax on the buyout, the total is $28903. If you can get an FRS or BRZ out the door with $0 for under $29k then that's a better deal, but if not then this is the better deal.

[Brocklanders]

Very interesting responses here...


The original leasee put down this:
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

and he wants me to simply cover the lease transfer fee and that's it. Taxes on the buy out was a question I had intended to ask as well. So the $16633 buyout isn't including taxes on the $16k or the entire original car value? (i assume since the lease payments have taxes pegged on, It's only taxes on the $16k)

So in fact my buyout on the car would be:
$16633+ 2162.29 + 299 admin fee.
= $19094.29?
Can't discount the lease transfer fee $400
= $19494.29
Yikes that kinda kills it right there.

[wparsons]

^^ It's still $29603 total so the question is can you get another FRS for less?

[BioRage]

Originally Posted by wparsons

^^ It's still $29603 total so the question is can you get another FRS for less?

Could not just get a Line of Credit, and buy it out?

Pretty sure a LoC is <4% if he was to do a cash purchase for a brand new one.

[wparsons]

Cash price for a base FRS with no options (and no haggling) is $31,521.35. Factor in at least 2.5% for interest on top of that.

[Brocklanders]

Of course I cant get a new one for that price. But I'm still not really sure if it's the right deal for me. @ $16-ish k the buyout was pallatable, but approaching a $20k buyout on a 3 year old car with most likely 60-70k kms seems like the value is over what actual market value will be. If the deal is back loaded so to speak, what seems great @ a low monthly rate now will be a killer at the buyout point in 2.5 years.

I'm not worried about wanting out of the car. I hold onto cars for a long time, and never this nice. Not even close to this nice actually.
I just want to be fully informed and have researched everything before I make a bad decision, or pass up a good deal.

[Employee]

Originally Posted by 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.

All he wants is the $400 transfer I think that's a great deal.

I just leased a frs with my employee discount my actual cost with nothing down is $379 (upgraded stereo=$383\48 months) I get it for a $1000 less than dealer cost

I wanted the cheapest payment possible so if I choose to get rid of it after a year or 2 then it won't be hard to transfer over the lease.

My other cars are leased as well the reason for this....if you own the car and you get into an accident that goes thru insurance you will get hooped on trade in value.

I was going to buyout my lease and 2weeks before I was going to buy it out my wife hit a car in the rear end....long story short it went to Toyota for OEM parts which came to $7700 damage. Dealer told me the $16000 car is worth $11000 due to the accident...I decided to lease a frs and the other car will be sent back to Toyota Canada

Very rare will you find a lease as cheap as the guy is asking without you not paying more down on it. He just wants to walk away early


My lease will work out to about $405 tax in nothing down, extra costs due to (tints, spoiler & upgrade stereo) I was going to get the tints and spoiler done separately but this way I will not pay directly out of pocket. You will be hard pressed to find one cheaper with the extras on it

If I decide in a year or two its not for me someone can assume the lease for $0 down and have a very cheap payment. My discount works out to $2653 (a dealer can't get the car for the price I can) they make nothing off Toyota employees

They will however pay the transfer of $400 and I will walk away I have done this 2times before as we'll.

FYI Toyota Canada is one of the hardest companies to get credit approval from