Lease buy out negotiation

[tundradg]

Originally Posted by Cliffy1

This is the most complete post I have ever seen on this topic. Well done and correct on all counts.

One other thing that can be added in is that all of this applies to Toyota Financial Services leases. Other lease companies are not the same. TFS also has various dealer agreements involved. This is why your local dealer can't just buy the thing at current market price and then resell it back to you the next day. If they don't buy it for the residual is has to be made available to all Toyota dealers via an auction. Your local dealer may get out bid by a dealer that has better market conditions than others.

Thanks. I have been out of the dealerships for some time now, but I try to keep up on stuff.

And yes, I did forget to mention that Toyota makes the vehicles available online to dealers at auction first. Several of the dealers within our group buy them frequently (especially our 600+ car a month flagship store). I know Lexus (and I believe Toyota does the same thing) requires the purchase of a certain number of vehicles through Dealer Direct to qualify for certain promotions...Part of how they help move their products.