Tomorrow my parents are going to lease a '07 TL (non-navi). They're currently leasing an '06 TSX which we just passed one full year on July 17. They have decided the TSX is just too small for the family and want to upgrade. They went this weekend and the dealer had a demo TL with about 3,000 miles on it. I never really heard the price of the car. They mostly focused on payment. What would you expect to pay for a demo TL? I am going with them and would like to to compare the price. I know that when leasing you still need to negotiate the selling price and then worry about payments. They only have one other '07 TL and it is desert mist which my parents don't like.

They appraised the TSX at $22,500 and we cover what's left on the lease. What do you think about that? The car has about 7,000 miles on it and is non-navi.

 

Not really sure.. It sounds like they are going to buy vs. lease this time.. ?

I know at a local dealer they had a used 07 TL Demo Unit - 4700 Miles, Chrome Wheels, Wood Knob and Steering Wheel; asking price is $39k - which is more than a brand new 07 or 08 TL Type-S and quite a bit more than an 07 "base" TL.

 

They're going to start a new lease in the TL.

 

You don't want know what I REALLY think. I just hope you have more financial sense than your parents.

 

That's a VERY VERY good price for the TSX, I think. The car only has 7,000 miles on it?! WOW, I'd reconsider keeping it instead of the TL...

 

I would like to know what you REALLY think!

 

IMHO of course, a demo 07 non-navi w/3k miles on it bone stock ( in light of the fact that the 08's are on some dealer lots) should have a selling price of between 28-29k. obviously, prices will vary among regions but that's what I would pay, no more.
as far as being upside down on the TSX lease, I personally don't think it's a good idea to put yourself ( or your parents) in that type of situation. wait it out one year and see what the next generation TL will be like notwithstanding the possibility that your parents go ahead and do this deal, be upside down on their current lease and then get in a bigger hole if they decide to switch again when the 4GTL comes out.
how about trying other dealerships?

 

Just based on what you said and not trying to be an ass or anything, I think it sounds like a damn dumbass thing to do. Here's why:


They should have known this a year ago, before they leased it in the first place. Leasing is a dicey thing financially to start with. In general, it doesn't pay, but the trade-off is OK (i.e. small loss) for some if they know what to expect. Getting out of a lease because you don't like the car is usually a losing proposition.



Sounds like they are setting up to buy out the lease. Since you "cover what's left", I assume they are "upside down" on the lease after the $22,500. That is the cost of all remaining payments PLUS the Residual Value is more than $22,500.

So that means, you paid "rent" for a year PLUS the Original Out-of-Pocket money and then will give the car to the dealer and still OWE some amount of "rent" without getting the use.



This is a signal to dealer sales that means "Rape me because I'm stupid." Payments can be jerked around so many ways it's not funny. The problem is by the time you get to the paperwork it is REALLY hard to walk away, even if you don't like the deal. It's psychological/human nature and it works in the dealers favor.



The focus on the montly payment means you are probably not getting the lowest overall lease cost, just a "good" payment. PLUS, you somehow have to build in the amount you are (assumed) upside down on the TSX.

So, now you have a bad deal on a new lease for a car you should have gotten a year ago. Also, the TL is "Base" which, with the focus on payments, indicates that they want more than they can afford (or prefer to spend) even on a lease.


I just don't see how any of this adds up to a good idea dollar wise. Maybe I'm missing something and am dead wrong.