Turning in / trading in a leased car

[East Bay Rider]

My wife leased a Toyota Venza LE back in September 2015.
It's 2-1/2 years later and it now has ~ 15,500 miles and obviously is in good condition.
We're starting to get notifications from Toyota reminding us to turn it in and buy another Toyota. The original plan was to possibly buy the car after the lease was up - knowing it was the best deal on a used car ever (~$18K residual buy out and since we were the original owners and the car has such low miles). The problem is my wife isn't so sure she wants to keep the car anymore. She's expressed an interest in looking at other cars and there's nothing comparable in the Toyota family that she's interested in (neither Rav4 or Highlander are of interest).
So how does it work? Is the car worth more than the projected residual buy out (~$18K) due to the low miles? It's safe to assume it'll have less than 20K when the 3 year agreement expires in September.
If she turns it in and decides on another Toyota will the dealer give us down payment money above the residual value to keep us as customers or do we just turn in the keys and start over with our own down payment like the first time?
What if we decide to get a different brand car? Will the other brand's dealer offer more than the residual buy out toward a down payment on their brand? Do I have to bring it back to a Toyota dealer to conclude the lease contract?
I just don't know how this works and I don't want to leave potential down payment money on the table if it's available but I also don't know if I should even expect such a thing it being a leased car and all.

[Chewbacca]

Keep the car leased and go car shopping.

When you find a car she likes, do a deal based on cash. Then introduce the Venza as a trade.

Whatever the dealer is willing to pay you above the amount on the loan $18k + 6mo remaining, is the equity you get.

If the buyout is $18 and they say it's worth $22 on trade (unlikely), you're up $4k as equity against the new car. Then you or the new dealer buys out the Venza and anything above the $18k goes against the new car.

For what it's worth, I doubt the Venza is worth the hassle. It's worth $18 because the bean counters at Toyota say so. And they set the tone on the resale market. It's also not a popular car and now out of production.

I'd just give it back in 6mo and call it.

https://www.kbb.com/toyota/venza/2015/

[Thatguy]

The car is worth what it is worth. If it is worth less then the buyout then turn it in. If more then trade or sell it and pocket the difference with any brand.


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[brandrea]

Originally Posted by Thatguy

The car is worth what it is worth. If it is worth less then the buyout then turn it in. If more then trade or sell it and pocket the difference with any brand.


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[superdog]

Originally Posted by Thatguy

The car is worth what it is worth. If it is worth less then the buyout then turn it in. If more then trade or sell it and pocket the difference with any brand.


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This.

First things first, find out the fair value of the car. Trade in value will be less than selling it privately.

If it’s worth more than the residual, buy it out and then trade it in. Depends to some degree how much more. Might be worth shopping around a bit now. Find a car you like, talk to the dealership. Ask them what they will pay for it when the lease is up with approximate miles.

Then make the call.

[GB-man]

Hey Bill,

PM Shannon (swils8610) he runs a couple dealerships one being Toyota. He’s a great guy and can tell you the nitty gritty and logical course of action.

[swils8610]

Hey guys...turn it back in. It’s not worth anywhere near 18k. The leasing company will offer it to dealer if you turn it in. The dealer will pass. It’s not worth 18k and the Venza was discontinued. It will wind up at an auction eventually. It will sell for 15k to 16k. Let the leasing company take the hit. Shot me a PM if you like.


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[KarlTheToyotaGuy]

I second Shannon. Venza's held their value very well while they were still in production. However, now that they're no longer being made, their value has dropped.

Were I in your shoes, I would turn the lease in. Yes, you will have to go to the Toyota dealer to do it.

Do NOT buy the car only to sell the car. That is ridiculous. You'll literally be paying tax, title, and licensing twice. You may come ahead a few bucks at the most, and it's not nearly worth the hassle.

Go to CarMax, and throw it up on Craigslist for a couple weeks before the lease is up. If the CarMax offer, or you have an agreement with cash in fist to sell it for more than your payoff, you can sell it to another dealer or a private party. As long as it is at least the payoff amount. Your Toyota Financial Services rep can quote you a payoff. If you're close to an equity position, this will be the best way to cash in whatever equity you may posses.

No dealer will offer you more than a Toyota dealer. It doesn't matter if you're just attempting to sell it to them, or just trade it in. For example: Do Toyotas have more value to Toyota customers, or _______ customers? It's simply not another brands market, even though it is an outstanding car. Same goes earlier today for me. I had someone trade in a BMW. The vast majority of my clients buy a vehicle they can keep for 20 years, and keep it running in top shape, with just fluid changes done. With most german vehicles having the reputation of a very luxurious vehicle, that will run well, but MAY potentially require costly more than standard general maintenance, my typical clients will shy the hell away.

I couldn't give him what the car was worth, even on a trade value. For it to be worth sitting in our inventory waiting around for who knows how long, is not worth it without a larger profit. Could I have made a deal with an astonishing low trade value? Probably. However, I believe in fair business. I just called my local BMW store and had them bid on it. It gave my client a few more bucks for trade in value, and I didn't have to bother with a BMW. Same goes vice-versa.

Toyota dealers will only give you trade in value. In my region, we have no trade in rebates, nor any other bonuses for going Toyota to Toyota. Just get a few offers on your car.

Explore your options to the fullest extent, and do whatever pays you the most.

I see that Shannon has offered to talk about it via PM, I would like to offer it as well.

[superdog]

Well. There you have it.

Case closed.

[Etschell]

Originally Posted by East Bay Rider

My wife leased a Toyota Venza LE back in September 2015.
It's 2-1/2 years later and it now has ~ 15,500 miles and obviously is in good condition.
We're starting to get notifications from Toyota reminding us to turn it in and buy another Toyota. The original plan was to possibly buy the car after the lease was up - knowing it was the best deal on a used car ever (~$18K residual buy out and since we were the original owners and the car has such low miles). The problem is my wife isn't so sure she wants to keep the car anymore. She's expressed an interest in looking at other cars and there's nothing comparable in the Toyota family that she's interested in (neither Rav4 or Highlander are of interest).
So how does it work? Is the car worth more than the projected residual buy out (~$18K) due to the low miles? It's safe to assume it'll have less than 20K when the 3 year agreement expires in September.
If she turns it in and decides on another Toyota will the dealer give us down payment money above the residual value to keep us as customers or do we just turn in the keys and start over with our own down payment like the first time?
What if we decide to get a different brand car? Will the other brand's dealer offer more than the residual buy out toward a down payment on their brand? Do I have to bring it back to a Toyota dealer to conclude the lease contract?
I just don't know how this works and I don't want to leave potential down payment money on the table if it's available but I also don't know if I should even expect such a thing it being a leased car and all.

take it to carmax and get the free appraisal. then go from there.

[ejvette]

I find Kelly Blue book gives you a reasonable ball park on trade in.

[pallindrome]

I think the advice here posted thus far is very sound!

Just do simple math. If carmax/dealers offer you more than the payout value, take it. If not return it and I suspect in a competitive market, it is highly likely that you will return it and grab another deal elsewhere.

[swils8610]

Originally Posted by pallindrome

I think the advice here posted thus far is very sound!

Just do simple math. If carmax/dealers offer you more than the payout value, take it. If not return it and I suspect in a competitive market, it is highly likely that you will return it and grab another deal elsewhere.

Exactly.


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[East Bay Rider]

Thank you all for the sound advice so far. For now it seems we should just enjoy the car for what it is but keep our eyes open for deals as its not going to be worth any more to anyone than the buy-out price. Shame as it seems like a decent car, though I seldom drive it except to fill it with gas. She's mentioned looking at a Subaru next.
Does anyone know if we're allowed to turn it in early?

[Chewbacca]

Originally Posted by East Bay Rider

Thank you all for the sound advice so far. For now it seems we should just enjoy the car for what it is but keep our eyes open for deals as its not going to be worth any more to anyone than the buy-out price. Shame as it seems like a decent car, though I seldom drive it except to fill it with gas. She's mentioned looking at a Subaru next.
Does anyone know if we're allowed to turn it in early?

Yes. You can return it early but you're still on the hook for he remaining 6mo.

I'd ask the dealer if there's a Subie dealer in their network and see if they'll eat the remaining payments of you get a car from their sister store.

Alternatively, you can talk to Toyota about the new RAV4 which is being called the Toyobaru due to its good looks and Subaru design cues.

It's arriving in the fall or around your Venza maturity date. I'd be Toyota would give you a very good reason to stay in the brand as an existing client.

But still ask about the Subie dealer.

[Valhala]

Just make sure its detailed good before return

[SDRider]

Originally Posted by East Bay Rider

Thank you all for the sound advice so far. For now it seems we should just enjoy the car for what it is but keep our eyes open for deals as its not going to be worth any more to anyone than the buy-out price. Shame as it seems like a decent car, though I seldom drive it except to fill it with gas. She's mentioned looking at a Subaru next.
Does anyone know if we're allowed to turn it in early?

Which model? I rented a Forester last year and I absolutely hated that miserable car. The ride was bouncy, the seats were hard as rocks, the CVT was awful and the car just felt cheap.

I’ve heard the Outback is decent but I wouldn’t buy a Forester ever.

You probably won’t be allowed to turn in your lease early. We weren’t with our Lexus.

I once traded in a leased Toyota Tundra to a competing brand. Was able to negotiate a trade in value that was within a couple hundred bucks of the buyout on the lease. I was a few months shy of the end of the lease. They were trying to low ball me on it, saying it wasn’t in “good” condition but it was a 2.5 year old truck with low mileage, new tires and brakes, spray in bed liner and not a scratch on it.

[swils8610]

You can turn it in early but you will still be obligated to fulfill the lease agreement.


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[pallindrome]

Originally Posted by swils8610

You can turn it in early but you will still be obligated to fulfill the lease agreement.


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Yeah. I'm pretty sure you could turn it in, but you have to continue paying $X/month per the contract for your contracted period.

One "excuse" to turn it in would be to quickly use up all the remaining miles allowed for in your lease contract! That said, you need to watch out for all the wear & tear issues especially tires that you might need to replace before returning.

[East Bay Rider]

Several people have mentioned tires. Currently the car has almost 16,000 miles. I expect it'll have fewer than 20,000 miles when we turn it in. I think the contract was 12,000/year max.
Tires last longer than that. Should I be expected to put new tires on before I give it back with so few miles?
That seems unreasonable to me. Am I wrong?

[swils8610]

The tires need to be measured at 2/32nds. I’ve never had Toyota charge anyone for tires unless they were the incorrect size.


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[East Bay Rider]

UPDATE
My bride turned in the Venza LE lease. It had just over 18,000 miles. We were still considering buying it just due to the fact that even CPO cars (previously owned by strangers) are in the same price range (so buying my own would be reassuring) but decided against it due to the lack of desired options (sunroof, nav and other niceties).
So she went and leased herself another Toyota. A Rav4 Adventure model. It's a nice little car and has the options she wanted and she's very comfortable driving it.

[swils8610]

Great choice! Toyota is heavily incentivizing the Rav currently. I’m sure you got a great deal! Congrats!!


“I think a man and his watch have a special bond”~Ralph Lauren

[Chewbacca]

Nice.

Can’t go wrong with a Yota.

[Etschell]

Originally Posted by superdog

This.

First things first, find out the fair value of the car. Trade in value will be less than selling it privately.

If it’s worth more than the residual, buy it out and then trade it in. Depends to some degree how much more. Might be worth shopping around a bit now. Find a car you like, talk to the dealership. Ask them what they will pay for it when the lease is up with approximate miles.

Then make the call.

take the car to carmax first. you can sell it get the check pay off the dealer and pocket the difference. always do this just to find out if it makes sense.

[mailman]

Originally Posted by East Bay Rider

UPDATE
My bride turned in the Venza LE lease. It had just over 18,000 miles. We were still considering buying it just due to the fact that even CPO cars (previously owned by strangers) are in the same price range (so buying my own would be reassuring) but decided against it due to the lack of desired options (sunroof, nav and other niceties).
So she went and leased herself another Toyota. A Rav4 Adventure model. It's a nice little car and has the options she wanted and she's very comfortable driving it.

Congratulations to your wife My wife drives a RAV4 also. Great vehicle