Lease End Strategy

[wackysoft]

So I've got a Blizzard White RAV4EV with an unlimited mileage lease ending in September. I do love the car, and it JUST got a new drive unit installed at Toyota Carlsbad. But it's got 50K miles, and will end up with about 55K by lease end. And I was dumb and didn't buy an extended warranty. So now I'm trying to figure out what to do. My residual value is a bit over $19K but I'm scared to buy it without warranty coverage, plus its higher mileage.

Has anyone tried selling their RAV4EV to a dealer or CarMax? Would that show a profit over the $19K residual? Do I have to pay CA sales tax? I wouldn't mind buying a lower mileage Mercedes B-class EV, or I wouldn't mind buying a lower mileage RAV4EV that I can get a warranty on. Any suggestions for my strategy to get that? As far as I can tell, buying my 55k mile RAV4EV is probably not the best option, but need to figure out what path I should go on. Thanks!

 

[Incredulocious]

So I've got a Blizzard White RAV4EV with an unlimited mileage lease ending in September. I do love the car, and it JUST got a new drive unit installed at Toyota Carlsbad. But it's got 50K miles, and will end up with about 55K by lease end. And I was dumb and didn't buy an extended warranty. So now I'm trying to figure out what to do. My residual value is a bit over $19K but I'm scared to buy it without warranty coverage, plus its higher mileage.!

Why can't you buy an extended warranty now? (Coincidentally, my Blizzard White lease ends this September as well. Planning to buy and keep until something else, like Model 3.)

 

[eplantz]

I just purchased mine yesterday at end of lease. I did buy the Platinum warranty for 7/75 to be sure i had coverage. Only 21000 miles. No troubles. There are just no good options, at this time, where I live. I would have gone with a BOLT lease if available.

 

[bruin nut]

You can extend the lease up to 5 months through TFS at the same payment. By then the Bolt will be available.

As for selling the car at a profit, that's not going to happen. I just tried at CarMax last week. I have the exact lease as you and the same expiration date. I owed $20,800 and I was offered $20,500. And my Rav had 31k miles. I ended up doing a straight swap for a Mirai fuel cell vehicle. It's great, by the way.

 

[eplantz]

You can extend the lease up to 5 months through TFS at the same payment. By then the Bolt will be available.

I considered that but feel that even 5 months from now, the BOLT will not be available in my location. I think it will be a geographic rollout like the original Volt. Most EVs on the market now are not sold around here (Chicago).

 

[smkettner]

Just buy the RAV and drive it. No Fear.

 

[wackysoft]

After needing a new drive unit and onboard charger, I fear plenty.

 

[wackysoft]

So I've got a Blizzard White RAV4EV with an unlimited mileage lease ending in September. I do love the car, and it JUST got a new drive unit installed at Toyota Carlsbad. But it's got 50K miles, and will end up with about 55K by lease end. And I was dumb and didn't buy an extended warranty. So now I'm trying to figure out what to do. My residual value is a bit over $19K but I'm scared to buy it without warranty coverage, plus its higher mileage.!

Why can't you buy an extended warranty now? (Coincidentally, my Blizzard White lease ends this September as well. Planning to buy and keep until something else, like Model 3.)

I mean, can I? I'm over 36k miles. And then is it worth it when I can buy a lower mileage RAV4EV or B class that I can still get a full extended warranty on.

 

[wackysoft]

You can extend the lease up to 5 months through TFS at the same payment. By then the Bolt will be available.

As for selling the car at a profit, that's not going to happen. I just tried at CarMax last week. I have the exact lease as you and the same expiration date. I owed $20,800 and I was offered $20,500. And my Rav had 31k miles. I ended up doing a straight swap for a Mirai fuel cell vehicle. It's great, by the way.

So you bought out the RAV and immediately traded it for a new Mirai?

 

[Incredulocious]

As for selling the car at a profit, that's not going to happen. I just tried at CarMax last week. I have the exact lease as you and the same expiration date. I owed $20,800 and I was offered $20,500. And my Rav had 31k miles. I ended up doing a straight swap for a Mirai fuel cell vehicle. It's great, by the way.

Well, to be fair, selling to CarMax or a dealer is not how you go about maximizing your return. In fact, some say you should consider the CarMax offer the low end of what you might get from a dealer. However, looking briefly on the web, it appears that it can go either way. Sometimes under, sometimes better than what other dealers will offer.

"What’s My Trade-in Worth? Not Very Much at CarMax"
[url|http://oncars.blogspot.com/2012/06/whats-my-trade-in-worth-not-very-much.html[/url]

Of course you would need to do a private sale to get the most out of it, not sell it to someone else who needs to make money on the deal. But of course people are often willing to forgo thousands of dollars to avoid the hassle of selling to a private party. For what it's worth, when the time comes, I currently plan to sell mine myself via craigslist, as I have in the past.

 

[bruin nut]

You can extend the lease up to 5 months through TFS at the same payment. By then the Bolt will be available.

As for selling the car at a profit, that's not going to happen. I just tried at CarMax last week. I have the exact lease as you and the same expiration date. I owed $20,800 and I was offered $20,500. And my Rav had 31k miles. I ended up doing a straight swap for a Mirai fuel cell vehicle. It's great, by the way.

So you bought out the RAV and immediately traded it for a new Mirai?

No, Santa Monica Toyota took the RAV in trade and offered me the payoff. I know I could have done better in a private sale or with Beepi, but I didn't want to be bothered quite frankly.

 

[wackysoft]

As for selling the car at a profit, that's not going to happen. I just tried at CarMax last week. I have the exact lease as you and the same expiration date. I owed $20,800 and I was offered $20,500. And my Rav had 31k miles. I ended up doing a straight swap for a Mirai fuel cell vehicle. It's great, by the way.

Well, to be fair, selling to CarMax or a dealer is not how you go about maximizing your return. In fact, some say you should consider the CarMax offer the low end of what you might get from a dealer. However, looking briefly on the web, it appears that it can go either way. Sometimes under, sometimes better than what other dealers will offer.

"What’s My Trade-in Worth? Not Very Much at CarMax"
[url|http://oncars.blogspot.com/2012/06/whats-my-trade-in-worth-not-very-much.html[/url]

Of course you would need to do a private sale to get the most out of it, not sell it to someone else who needs to make money on the deal. But of course people are often willing to forgo thousands of dollars to avoid the hassle of selling to a private party. For what it's worth, when the time comes, I currently plan to sell mine myself via craigslist, as I have in the past.

And i assume id owe sales tax regardless of how I sell it, Carmax, private party, etc.

 

[Incredulocious]

And i assume id owe sales tax regardless of how I sell it, Carmax, private party, etc.

Well, you'd have to pay the sales tax on the residual amount at the time of the lease buy-out, but when you sell to someone (dealer, private party, etc), they have to pay the sales tax to the state on your sale to them. You don't collect it if you're a non-business. (In California, they call it a "use tax" when you buy from a private party/non-business and it's reported on their DMV registration, but it's really just the same sales tax by a different name.)