Rick_TL-S

Ok, so I've brought this up one or 2 times before, but just as another example.

But, now, I would like some feedback. My car is a lease, and as such, I do want to buy it back. However, I think my dealer is giving me a bogus deal considering I've just read cars with less miles selling were going for less. My car is currently at 21,525 miles and is an '07. My dealer has told me that my car is currently worth $30K and that's what I'll have to pay to buy it out.

Is this right, or is my dealer just looking for quick cash?

dannyboy10

What is the "purchase option" price in your lease contract ?

If you still have outstanding lease payments to be made, the buyout price is generally the purchase option price and
the remaining lease payments outstanding. The lessor may
give you a credit on the interest portion remaining.

greco9885

iTrader: (1)

LOL. My buyout in 3 years is 17k or 18k

Bearcat94

Your buyout was set at the time you got the lease.

Read your contract.

Elegant TYPE S

iTrader: (2)

First rule, regardless of mileage never show interest in wanting to buy your car back from a lease. This will severely hamper any leverage to negotiate later on. I see you have an 07 so that means you are trying to inquire on your own before you were contacted. Also you do not need to go through the dealer for this one. Just contact your leasing bank directly on the phone. If you go through the dealer, they will try to make a profit in between. If you want to buy the car out, just keep quiet and tackle it towards the end of the lease when they contact you, like 4-6 months before your lease is up. In the mean time do your homework and find out what the best loan you can get and what the goign rate is for your car.

There is tons of info on Edmunds on this subject.. just give it a read... you'll be better equipped and glad you did.

ndabunka

Ok, let's get this right. You have a lease. A lease is basically a VERY simply "rental agreement". That rental agreement does have a "value at end of period" included in it. BUT, and here is the important part.... The mfg/dealer wants to get their rental fees out of it before they allow you to buy it. After all, you DID agree to these terms BEFORE taking delivery. Now, you CAN buy out a lease directly from your financing company. However, it is ALWAYS going to cost you MORE to buy out your lease than it would to buy a used car. This additional cost is the "consideration" you are giving for the "value" of buying a car you already know. Bottom line... NEVER, EVER lease UNLESS you can write it off as a business expense EVER! If you can't afford to BUY a car then guess what.... You CAN NOT afford to lease one either...

acura_dipset_tl

iTrader: (40)

I agree with you 1,000,000% Spoken like a true champ.

Elegant TYPE S

iTrader: (2)

Umm.. I dont. People who make these comments I feel are living in the past. I will never buy a car anymore.. I will only lease write off or not. This gives me the flexiibility to walk out after 3 or 4 years once I get bored with the car which is what usually happens to me. Buying the car is only worthwhile if you keep it for close to 8+ years. If you sell it before then, you might as well have just leased it, because you did not benefit from the buy one bit.

Plus before you lease, if you negotiate the deal right, there is practically no loss if you decide to buy it 3 years later since the lease is only based off the purchase price that you and the dealer agree on in selling it to the Bank. This is what your lease rates will be based on. This is exactly how I did it and now if I want to buy the car at the end of the lease I can and will have not lost money compared to if I just bought it out right from the begining and I have the option to walk away. Best of both worlds.

We are all car enthusiasts so how many people do you know on this forum keep their cars for 8 years or more? Prolly only a handful, most of us trade up in 4-5 years anyways. Think about that. Read the Edmunds guide of buying vs. leasing, very informative and it lays it all out with facts and figures.

Simply put: If your going to keep your car for more than 8 years, buy it. If not just lease it.

dannyboy10

Buying vs leasing ? Depends on the situation, vehicle, the deal offered, etc.... I remember people were getting residuals of 65% on 3 year leases for a Ford Expedition! 65%!!

I see 3 year old Jeep Commanders selling for 12 grand. It's probably better to buy a used one then spend $ 25-30k for
a new one.

Ask Infiniti how much money they lost on leasing J30's.

That said, one can lease a Honda Civic for $199 a month from Honda and walk away in 3 years. It is a hassle to sell a car
when everyone is so busy these days. It's no fun waiting waiting for people to show up, low ballers, etc.

In summary, it depends on many factors on which will be better......

Rick_TL-S

Where did I ever say I can't afford this? I just think $30K is asking too much.

Right now, I guess I'll be taking Elegant's advice, and just keeping quiet. I've got another 2 years left on the lease, so I'm sure the dealer will forget I even made an offer. Looks like I also need to dig out my contract once more.

ndabunka

Elegant - It is true that you DO negotiate lease terms "up front" and you can get a lease with a $1 buyout at the end of the term if you want so I do agree that you "can" negotiate a fair lease. Unfortunately, there is a cost to ANY lease that exceeds the value of a purchase. That's just a FACT due to the principles that drive a lease arrangement.

Your a LOT younger than me and based on your reply it will take you many more years until you realize the error in your logic. You quote a car-sponsored website for your justification/references. I provide "REAL WORLD" examples. You are wrong on the duration to "break even" as an example why not use me. I bought an '04. After only FIVE years, I have a $15K asset. So, it does NOT take 8 years. Believe all the auto industry publicity you want on edmunds (who do you think pays them to advertise that way anyway, the public?).

OK, so you think that you want to "trade up" in 4 years. When you OWN a car, YOU control that asset. When you lease, the finance company controls YOU and the value of that asset (to an extent). Selling a car is FAR easier that getting out of a lease. In a lease, you have a CONTRACT holding you to those years of the lease. When you own a car, you can sell it AT ANY TIME without having to answer to anyone (i.e. payoff a leasing company or agree to that "buyout" you negotiated up front).

ndabunka

Sorry about the "you can't afford it". That was an generalization error on my part after seeing SOO many people getting themselves into problems by using the (only marginally) lower monthly payments of a lease to get them the "most expensive" car possible.

Please re-read what I wrote. I explained WHY they are asking too much... because they can. You say you can afford it but then you balk at the $30K price. This means that you may still not realize the TOTAL cost of your lease. Please continue to ask questions and continue to do research. You will see how this all works out in the long run.