LyncStar

I'm coming up on the end of my lease and am planning on purchasing the vehicle. It's a 2006 TL w/Navi, 25K, excellent conditions. The payoff is about 21.5K. Anyone had any luck negotiating a lower purchase price from the dealer?

vinnier6

iTrader: (1)

not sure if its possible or not, but i would give it a go anyway....you could always turn it in, then let them make it a certified acura, and then turn around and buy it from them....i seriouosly doubt that an 06 will sell for more than 21.5k, so even if you bought it for that, add the warranty they will add on and it will be a good deal....

ndabunka

You DO realize what a lease actually IS, right? I mean, you've been driving it for that past few years and you've had this financial instrument called a "lease" during that time. That lease states that you agree to "rent" the car for a period of time. The CONTRACT also outlines what the "pre-determined" value of the vehicle will be at the end of that term (i.e. today). That number is IN THE CONTRACT (or at the VERY least an equation outlining the percentage of the MSRP is in the contract). So...no, the lease is the lease is the lease....

However, as we are all aware dealerships are trying to remove inventory so here is your best "option". Turn the car over to them and then try to buy it back from them for a few thousand BELOW the turn in price AS A SEPARATE transaction. They will have to reduce the price to market value which is more than likely a bit less than the $21.5K they are seeking now. Get it CPO'd so that it carries the additional milage warranty and offer them $19K and see what happens.

Elegant TYPE S

iTrader: (2)

^^^ Good Plan however good luck executing it. There is no way a dealer is going to be likely to budge on the pricing just because he now knows you really want the car with the sentimental value it has. He has you by your cahunas. Plus when you turn the car in, the bank still owns the car and so its up to the bank once again, whether or not to allow the dealer to sell it to you at your asking price.

The process for the dealer on a returned car goes as follows.

1. Try to sell the car within a few weeks at the price per your contract to you or any other buyer. Any negotiations will have to be approved by the bank which is most likely a no.

2. He most likely will not sell the car and so the bank will take the car off the lot and bring it to a regional dealer auction.

3. Dealers will bid on the vehicle (bids are based on the local market value) and it will sell depending on the final bids. Not all final bids result in a sale since if it was too low, the bank can still refuse the sale to the bidder (dealer).

4. If a dealer has won it, now he will recertify it and clean it up and sell it for profit. Plus I see that your car has only 25k miles very low mileage so your car will sell for a premium at the auction and on the lot.

I know it seems like long drawn out bullshit, where if they could jsut sell the dam vehicle to you in the first place without going through the auction, but the BANK deals with 1000's of cars so they will most likely go this route as it is easier for them. If this was a GM then yes, you could've probably hammered them to sell you the car outright since we know their predicament.

Also I forgot to add, that this all depends on your leasing bank, since different banks will deal differently. When I leased a Honda Accord through Honda Financial once they waived the last 6 months of lease payments and said they would apply it towards the price of the payoff. That's the best I got, also, don't call them regarding your buyout, let them contact you, I've been told that if you place the phone call your account gets notated so that they will play harder to negotiate. You gotta pretend like you don't want the car.

LyncStar

THanks for the tip. That said, your approach leaves risk on my end. There is no reason that the Dealer can't simply lower the residual value of the vehicle and take the "loss", if the cars aren't selling for the current residual value amount. Your suggestion leaves me potentially exposed without a vehicle, not an very attractive "option".

My point in posting was to see if anyone has had any success in this regard.

flydasky

The dealer has nothing to do with the residual value. The lease / finance company controls what the lease end purchase price is. The dealer is given the option to purchase the car for sale or return it to the manufacturer who will sell it at a dealer only auto auction. You need to call the finance / lease company to see if they are willing to sell you the car for less. In most cases the residual value is not negotiable simply because the residual value is an insurance policy that is purchased by the finance company. The lease company will probably allow you to refinance the residual value with them and you will now be so buried (financially) in the car that only a winning lottery ticket will get you out of it.

bmaczo6

iTrader: (1)

Guys, you seem to be missing the most basic question. What is the name of the leasing company? That is who will have to deal with to discuss your options.

greco9885

iTrader: (1)

i went through this with jeep, the buyout was 22k. but if we were to put it in someone elses name, it would knock off around 4k. the only way you can knock it down is if someone you know buys the car, or if the dealer buys it for cost then sells it back to you for alittle cheaper

F23A4

The lowdown on buying your leased car, by Bankrate.com

GeezerB

iTrader: (1)

I just went through this on 2 vehicles. The bank gave me 3k off my G35, so I bought it. Chrysler gave me 1k off my wife's van so I gave it back & bought a new one. It depends on the company & the demand for the vehicle. You do have more leverage near the end of the lease as they gave me a better price in the last week of the contract. It's a tough call.

Hacura

Don't forget that base TL's are dime a dozen these days popping up all over the place - demand vs. supply + new model release. Dealers are hurting and would rather have you keep the car than deal with it. I'm keeping my eyes open for used TL's at a dealership and will go in offering KBB trade-in values because I'm not dying to buy a car.

It can vary however, because I've seen banks and finance folks do some pretty stupid things lately. I was looking at a newer short sale home in my neighborhood and last June offered $900k, the bank wanted $930k or more, they wouldn't budge because of the neighborhood blah blah. I checked myself and wasn't trippin at all. Now they called and said give us $875k, I said sorry I'm only interested at $825k. By the time they sell it they will have lost over $100k if they would have sold it to my dumb ass...Common sense isn't so common!

Look at the economy and all the folks that lost serious cash, it just goes to show fear is good in making a large investment and the financial guru's don't know half the ish they claim. Damn I'm rambling...

Elegant TYPE S

iTrader: (2)

It all depends on the leasing bank. Some banks are more willing to off load it then others.