Hey guys, this is my first post so go easy. I have an '05 TL with the lease ending very soon. Yes, I was unemployed at the time and made the poor decision of extending my lease an additional 2 years after my initial 3 1/2 year lease. My question is, can I negotiate the buyout amount of $12,190 with Acura Financial Services? I ask because I have spoken with the dealer and they apparently cannot budge on the price because they don't own the car. They will, of course, offer me financing to buy it. But they said if the car was certifiable, which it isn't due to age, they would have the option to buy the car for the same $12,190 from Acura and then sell it. Any advice or dealings with Financial Services would be greatly appreciated.

Thanks!

 

You might want to search. There have been thread ins the past similar in nature to yours. Sometimes, Acura will sweeten the deal if you want the car but you might need to have a game of chicken during the final days of the lease. I don't lease but I know others have chimed in the past on other threads. The other thing you can do is add a topic to Cartalk and see if any others with other Makes/models can chime in on their recent experience. Seems like used car prices are stronger now so Acura might feel more bold in demanding that as a buyout price possibly.

Good luck!

 

I don't think those residual values can be re-negotiated. You may want to call Honda Financial to confirm. What was the original residual value?

 

You'll have a near impossible chance of renegotiating the residual value unless there is something wrong with the car that makes it worth less than that value. Otherwise the dealer knows he can buy it at that price, and sell it for more, or just make money financing the car for you.

 

There is simply no benefit for Acura finance or the dealer to take less than the residual value (unless the car is damaged).

 

Yeah plus it was on the contract when you initially signed up for your lease if I remember correct.

 

I have to agree with others on here, I lease as well and in the past not just Acura Finance but the other manufacturers as well will not negotiate the price of the buyout at lease end. They would rather take the chance of getting the car back and having it sit on the used car sale lot for awhile and not sell it, then to offer a better deal and have a guaranteed sale to a good client of theirs on a 5.5 year old car that they wouldn't have to take back. Its unbelievable from a business standpoint that they are so fucking greedy they want the car back to try and make even more profit on it as a used vehicle but that is the way they all operate.

I've learned the hard way that this has to be negotiated back before you sign the lease agreement b/c only before you sign the lease can you negotiate the buyout so you do not get screwed if you want to keep the car at lease end.

 

I'm not sure why you think its a good business decision to sell a car at a lower value, rather than put it on the lot and wait for a substantially larger profit (at no cost).

 

Coworker got his MDX lowered by about 25%. It was a 2005 too. They told him no at first and then he scheduled a drop-off. Only then, did they offer him a lower price a day or two later when a "specialist" called. Bottom line - Honda will offer you auction values if they are sending the car to the auction... there is no risk if you pay them so they will extend the deal. If Honda or a dealer are going to keep the car (extra clean and low miles), then you will have to pay full price.

 

Thanks guys, for all your input. The original buyout price at the end of 3 1/2 years was $18,181 and after the 5 1/2 years is currently $12,190. I screwed up and should have bought it after the first term expired but I didn't have much for a down payment on a new one. The dealer even told me that's where I went wrong but Acura made it real easy for me to renew the lease over the phone. The reason they even offered the additional 2 years was due to the poor market on used cars at the time!

One note though, and a few of you brought this up. I was in a front-end collision about 4 years ago in my TL. Was about $7,000 worth of damage and nearly totaled it. The shop did a great job inside and out and knock on wood, have never had a problem. Irregardless, I never shared this with the dealer or Acura unless they know through my insurance company, but should I disclose this info to them? Could this actually benefit me in terms of price if I actually buy the car? I guess I have always been fearful of a charge from Acura for the damage when I turn it in but I'm pretty sure they would be able to tell upon inspection anyway.

Thanks again!

 

If you disclose that information you will be far likelier to reach a deal. Like I said, Acura and/or the dealer has zero motivation to sell you the price for a dollar less than $12,190, unless the car is worth less than that. Otherwise, they take the car back and get to sell it again. If the accident makes it only worth 10K, then you turning it in doesn't help them out if they can get you to sign on the line for 11.