buying out a leased car?
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Racer
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buying out a leased car?
I know its premature, but I was considering buying out my leased car. Lease is up next year. I have headers and CAI installed and will probably get the RES when it becomes available. I would even consider the supercharger but with all the transmission woes going around, I'm not so sure I still want it. My question is has anyone ever bought out a leased car? If you did, were you able to buy it for under the price in your lease contract. My buyout is $18,000 however I would like to try to buy the car for $15,000-$16,000. The lease is through American honda. Any advice would be appreciated.
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Re: buying out a leased car?
Originally posted by NJTypeS
My buyout is $18,000 however I would like to try to buy the car for $15,000-$16,000. The lease is through American honda. Any advice would be appreciated.
My buyout is $18,000 however I would like to try to buy the car for $15,000-$16,000. The lease is through American honda. Any advice would be appreciated.
my boss' lease came up back in october/november and the lease company offered him a deal on the car (and it was significantly less than the residual/buyout amount in the contract).
#5
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If you're serious about this, read this article from Edmunds -
http://www.edmunds.com/advice/leasin...0/article.html
The buyback figure is not written in stone.
IMHO, the best part of leasing is a new car every 2~3 years...
http://www.edmunds.com/advice/leasin...0/article.html
The buyback figure is not written in stone.
IMHO, the best part of leasing is a new car every 2~3 years...
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#9
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You can definately negotiate the buy out. AHFC will start calling about five months before the end of your lease to discuss the disposition of the car. I'd wait until until about a month before the lease expires to start negotiating - you'll do better that way.
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Re: buying out a leased car?
Originally posted by NJTypeS
I know its premature, but I was considering buying out my leased car. Lease is up next year. I have headers and CAI installed and will probably get the RES when it becomes available. I would even consider the supercharger but with all the transmission woes going around, I'm not so sure I still want it. My question is has anyone ever bought out a leased car? If you did, were you able to buy it for under the price in your lease contract. My buyout is $18,000 however I would like to try to buy the car for $15,000-$16,000. The lease is through American honda. Any advice would be appreciated.
I know its premature, but I was considering buying out my leased car. Lease is up next year. I have headers and CAI installed and will probably get the RES when it becomes available. I would even consider the supercharger but with all the transmission woes going around, I'm not so sure I still want it. My question is has anyone ever bought out a leased car? If you did, were you able to buy it for under the price in your lease contract. My buyout is $18,000 however I would like to try to buy the car for $15,000-$16,000. The lease is through American honda. Any advice would be appreciated.
Dude you should give back your car and get the 6 speed CL, which will be faster than your current CL.
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The general rule is "never buy out a leased car"......there are very few cars that would pay for one to buy it out after the term is over, basically after adding up your monthly payments/buyout/out of pocket costs/etc it would not go much above or below a retail finance (total amount)- this sometimes works with cars that have an unusually high resale.
Unfortunately, this is not the case for the CL.
Unfortunately, this is not the case for the CL.
#13
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Beltfeld,
I don't understand the logic of your post. The lease was for a predetermined time at a predetermined cost. When it ends, the lessee is essentially without a car. Replacement options include buying a new car, leasing a new car, or buying a used car. If NJTypeS wants to buy a used car, what better car than one he's driven and knows the history of? Assuming AHFC gives him a good price, buying his off-lease car is no different than buying any other used car. Additionally, if he wants to finance the car AHFC offers favorable terms to off-lease purchasers.
I don't understand the logic of your post. The lease was for a predetermined time at a predetermined cost. When it ends, the lessee is essentially without a car. Replacement options include buying a new car, leasing a new car, or buying a used car. If NJTypeS wants to buy a used car, what better car than one he's driven and knows the history of? Assuming AHFC gives him a good price, buying his off-lease car is no different than buying any other used car. Additionally, if he wants to finance the car AHFC offers favorable terms to off-lease purchasers.
#14
I must be the only one that feels like he did OK on a lease. I bought a '98 CL 3.0 on a 36-month Honda lease. At the end of the lease, the residual was $3800.00 cheaper than the dealers where selling the car for on the lot. Honda also refused to negotiate the buy-out. When it was all said and done, the down payment, total payments, plus the buy-out was only $1060.00 over the purchase price of the car, buy far the best interest rate I’ve ever received on a car.
I'd gladly do this deal again.................
I'd gladly do this deal again.................
#15
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Originally posted by BarryH
Beltfeld,
I don't understand the logic of your post. The lease was for a predetermined time at a predetermined cost. When it ends, the lessee is essentially without a car. Replacement options include buying a new car, leasing a new car, or buying a used car. If NJTypeS wants to buy a used car, what better car than one he's driven and knows the history of? Assuming AHFC gives him a good price, buying his off-lease car is no different than buying any other used car. Additionally, if he wants to finance the car AHFC offers favorable terms to off-lease purchasers.
Beltfeld,
I don't understand the logic of your post. The lease was for a predetermined time at a predetermined cost. When it ends, the lessee is essentially without a car. Replacement options include buying a new car, leasing a new car, or buying a used car. If NJTypeS wants to buy a used car, what better car than one he's driven and knows the history of? Assuming AHFC gives him a good price, buying his off-lease car is no different than buying any other used car. Additionally, if he wants to finance the car AHFC offers favorable terms to off-lease purchasers.
I don't know what his contract is, but generally after you lease a car and then decide to buy it out....if you do the math, financing from the start would generally have been a hell of a lot cheaper (sometimes $8-$10k cheaper), depending on interest rate/length of loan/money down.
Plenty of people do it, doesn't make you a glutton for punishment.....its just not the smartest thing to do most of the time, if $$ isn't an issue, then forget anything I said.
#16
Not a flame, just don't understand your logic or numbers. I don't believe either can be substantiated!
Quite simply the difference between a purchase and a lease boils down to if you want to make the down payment in the beginning or the end of the deal.
If you negotiate the price and the rate prior to doing the deal as if you were buying the card, the numbers have to work out exactly the same unless you do something like get a lower payment by limiting you annual miles allotment.
One of the biggest advantages to the lease is at the end of the term you can evaluate the residual against current market value and have the choice to walk away if you like. I much prefer this situation rather than purchase up front and then get burned on a weak resale value.
To each his own…….. Regards-
Quite simply the difference between a purchase and a lease boils down to if you want to make the down payment in the beginning or the end of the deal.
If you negotiate the price and the rate prior to doing the deal as if you were buying the card, the numbers have to work out exactly the same unless you do something like get a lower payment by limiting you annual miles allotment.
One of the biggest advantages to the lease is at the end of the term you can evaluate the residual against current market value and have the choice to walk away if you like. I much prefer this situation rather than purchase up front and then get burned on a weak resale value.
To each his own…….. Regards-
#17
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In theory it should work, but it doesn't usually.....especially with cars that are on subsidized programs.
Unless you really know your shit, the finance and lease will generally not work out the same.
Leasing costs more in the long run, most of the time.
I don't hate leasing my cars are always leased.
Unless you really know your shit, the finance and lease will generally not work out the same.
Leasing costs more in the long run, most of the time.
I don't hate leasing my cars are always leased.
#18
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if no one else will ask..i will....Are you "THE" njtypeS????i dont see how with as few posts as you have
Like Barry H said, the only reason I would consider buying out my leased car is that I am familiar with it since I had it from day 1. I have also slightly modified it. I'm also planning on buying a house in a few years and it would be nice to have no car payment for awhile. As far as the six speed being faster, I already have headers, and intake and am most likely getting the RES. So I'm not that concerned if the 6 speed is a little faster. Besides there is always the supercharger which I would get in a second if Acura fixed the transmission problems!!!!
#19
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Originally posted by NJTypeS
I do not know who THE njtype s is that you are referring to, I'm new to the forum.
Like Barry H said, the only reason I would consider buying out my leased car is that I am familiar with it since I had it from day 1. I have also slightly modified it. I'm also planning on buying a house in a few years and it would be nice to have no car payment for awhile. As far as the six speed being faster, I already have headers, and intake and am most likely getting the RES. So I'm not that concerned if the 6 speed is a little faster. Besides there is always the supercharger which I would get in a second if Acura fixed the transmission problems!!!!
I do not know who THE njtype s is that you are referring to, I'm new to the forum.
Like Barry H said, the only reason I would consider buying out my leased car is that I am familiar with it since I had it from day 1. I have also slightly modified it. I'm also planning on buying a house in a few years and it would be nice to have no car payment for awhile. As far as the six speed being faster, I already have headers, and intake and am most likely getting the RES. So I'm not that concerned if the 6 speed is a little faster. Besides there is always the supercharger which I would get in a second if Acura fixed the transmission problems!!!!
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