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#1 (permalink) Old 03-02-2011, 05:22 PM
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Buy RAV4 at end of lease

Need some advice on my 2008 2WD. It's nearing the end of my lease and I love this car. Purchase option is $14,042 with fees/taxes they're quoting me $15,665. I've only put 15,000 on this thing over 3 years - from a mechanical standpoint it's been awesome. Street parking has resulted in tons of dings that I don't mind, but would cost me a lot to cosmetically repair before returning at end of lease (est $3000). If I keep this baby the stimate to repair rust with a touch-up to prevent further damage was only $40 from a super-reliable independent mechanic who gave me the $3000 quote to get the thing looking decent again. Am I crazy to buy this thing? If I do, how far can I low-ball without the Toyota dealer laughing in my face - are used Toyotas still languishing on the lot or has the market recovered? Lastly, should I try to just lease a new one at same rate and get them to wave repair fees on the trade-in? I just feel like maybe the purchase option is actually a sweeter deal given the low mileage I've put on it.
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#2 (permalink) Old 03-02-2011, 07:11 PM
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First of all, a few dings shouldn't cost you $3000, that's significant damage. Get some different quotes, even if the guy is "reliable"
Second, are you sure you want to keep the car? With that low milage, it has good resale value. You could essentailly sell it for more than the buy out value and use the difference towards a new car.
Third, the "repair free" time of your car has pretty much passed. Your car has low milage, but it has been four years. I mean you're only look forward to repair issues and such.

Personally, I am going to return mine when the lease is up and buy a new one. No worries about repairs or depreciation, accidents. But everything depends on what kind of situation you're in financially and also your preference, if you want to drive new cars or keep the old and pay for repairs.

Food for thought.

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#3 (permalink) Old 03-03-2011, 02:52 AM
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Toyota is really fair from what I've experienced on wear and tear on lease returns so if it's just a few dings like you say, then don't worry too much about it.

The beauty of the lease is that you have all these options right now. You should look at the values and see what you can get on trade or private sale. if it's more than your residual, then it may be well worth it to sell it or trade it in and use your equity towards a new one, either lease or purchase. Not sure exactly what you have, but keep in mind there have actually been some great upgrades to the Rav4 between 08 and 2011, and the price hasn't changed much, so you can get quite a bit more car for a similar payment.

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#4 (permalink) Old 03-03-2011, 01:28 PM
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at then end of the lease on our 06, we had 30k miles on it and a recid value of 11,000.. The car was worth $19k according to our friend who works there and we would be crazy NOT to buy it. We did. $11,000. Do it if you can but I not think that they can charge you more then its residual value which is determined at the beginning of the lease.

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#5 (permalink) Old 03-04-2011, 08:05 AM
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i actually just bought out my '07 rav. I'm quite happy with it. I had tons of mileage clocked onto it. BUT when i first leased it, i decided to get extended warranty on it, so that is why i ended up buying it out. Currently at ~120,000km's on it and still going strong.

Entirely up to what you want out of your rav. If i returned it, i would've had to pay on top due to my high mileage.
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#6 (permalink) Old 03-05-2011, 01:41 PM
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If the dings on your car have broken through the paint (you mentioned "rust"), then they might charge you excess wear and tear. Usually the lease companies put out guidelines as to what constitures excess wear and tear (e.g. "dent no larger than 1/2 inch, scratch no longer than 1 inch" etc.).

You should check with the used car apprasial sites (kbb.com or edmunds.com) to see what your residual compares with current market value. If you love the car and the buyout is close (or below) market, then you should definitely consider buying it.

You usually cannot negotiate a lease buyout unless the buyout is way over the market value and the leasing company is going to take a real bath if you simply turn it in. It's a contract, after all.
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#7 (permalink) Old 03-05-2011, 02:28 PM
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Quote:
Originally Posted by champ91 View Post
Third, the "repair free" time of your car has pretty much passed. Your car has low milage, but it has been four years. I mean you're only look forward to repair issues and such.

Personally, I am going to return mine when the lease is up and buy a new one. No worries about repairs or depreciation, accidents. But everything depends on what kind of situation you're in financially and also your preference, if you want to drive new cars or keep the old and pay for repairs.
What?

Our '05 has nearly 100,000 miles. Has only needed regular basic maintenance(fluids, brakes, tires) and still runs like new. And is still worth around ~$10,000. My '00 Celica is coming up on 200,000 miles and also has only needed basic maintenance.

$14k for an '08 with 15,000 miles is a great deal.

I understand the desire to turn cars over and have something new and flashy...but citing fear of repairs as a reason isn't much of a valid one on most Toyotas.



Last edited by nouse4aname; 03-05-2011 at 02:38 PM.
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#8 (permalink) Old 03-05-2011, 09:39 PM
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Quote:
Originally Posted by champ91 View Post
Personally, I am going to return mine when the lease is up and buy a new one. No worries about repairs or depreciation, accidents. But everything depends on what kind of situation you're in financially and also your preference, if you want to drive new cars or keep the old and pay for repairs.

Food for thought.
It's pretty much standard that when buy new, you are the one who pays for the depreciation as the resale/trade-in value is less once you drive it off the lot. Also, the only reason you would have to worry about accidents is if they had occurred when you owned it.
Financially it makes sense to buy used vs. new and when you are buying it when the lease is up, you are essentially buying used, but you know the history since you were the one driving it.

Jason


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