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Smart Shopper Certified Pre-Owned Vehicles
662 messages, Last post on Feb 18, 2009 at 2:08 PM
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Replying to: kzybulew (Nov 02, 2007 8:49 am) Many people ask me if they should buy the car at the end of the lease. Usually the end of lease purchase price, known as "Residual Value" is $3k -$4k more than actual market value of the car. Smart shoppers know the buyout price is thousands over market value, and will turn in their leased cars to the leasing companies instead of buying. That caused used car values to tank unexpectedly in 2001-2003. Many people forget there is also a $300-$400 non-negotiable "purchase option fee" buried in your lease contract if you buy the car at the end of the lease. Your strategy: I would wait until the end of your auto lease and ask the leasing company if they will sell the car for less. Offer less than market value for the car. Many leasing companies are arrogant and still play hardball. If you leased and took it on the chin going into your lease or if your gross cap cost was MSRP, don't give them one cent more. If they don't budge on the buyout price, exact your revenge on them by dumping another used car on them where they will lose $2000-$4000. Don't let them scare you with threats over mileage penalties, or non-matching tire fees, it still beats paying $4000 more for a car than the market value. They'll call you in advance to pressure you to buy the car at lease end. Research the value, dodge their calls, and show up at lease termination with a check in the amount you want to pay. Haggle smartly, telling them you know used cars are worth a lot less now. With no sale they have to dump the vehicle at auction. Don't pay them until they sign a buyer's order first! If they reject your offer, walk away, game over. Now they have no time to strategize, the deal is over and you pinned them against the wall. Maybe they'll chase after you before you drive out to give you the lower price, but if not, just keep on driving with a grin on your face.
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Replying to: kzybulew (Nov 02, 2007 8:49 am) As we're nearing the end of our lease, we've test driven quite a few vehicles but aren't finding anything that we love as much as our car (and everything seems expensive.) The payoff quote from Audi Finance for our car is $26191.20, (without taxes, fee's etc.) Our dealer is saying that their CPO cost is 2260.00 (that seems high to me?) and that the CPO price including tax and title etc. (minus the $850 loyalty) is $30554.30 Should I try to negotiate that CPO price? Should I shop other Audi dealers? He stated that the top tier financing rate for 25 - 60 months is 5.9%. When I got off the phone with him I went to audiusa.com and found a up to 60 month 4.9% promotion for 2005 allroads. When I called him back he said he'd speak to the business manager. Were they trying to make additional $ there or was that simply a mistake? (I'm so mistrustful of this whole process.) I appreciate the assistance and sorry if there is pertinent information that I've left out. kzybulew
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Replying to: kzybulew (Nov 07, 2007 6:02 am) |
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Replying to: chop629 (Nov 02, 2007 5:51 pm) The residual value at the end of a lease shoul be close to the wholesale value of the car. I have no idea where you came up with your idea that the cars will be worth 3-4000.00 less than they are actually worth. Now, in the past some car manufactures have done some dumb things on leases that have caused this to happen. they have set residuals artifically high in order to make the lease payments attractive. You could say they have mortaged tomorrow for today's sales. This, however, is uncommon and I would think lessons have been learned from this. Lease residuals are NOT negotable! Where do you come up with this? You WILL pay the residual value you agreed to when you leased the car! You WILL pay for excess mileage or damage on the car! This has nothing to do with arrogance or playing hardball. a lease is a contract and nothing more. It's like you seem to think you can change the terms because you don't like them.
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Replying to: kzybulew (Nov 07, 2007 6:02 am) Few cars cause as many problems as an aging Audi and the warranty companies are well aware of that. Kind of like an 80 year old man who smokes two packs a day trying to buy life insurance. You may be a lot better off just walking away from that lease. |
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Replying to: isellhondas (Nov 08, 2007 7:26 am)
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Replying to: qbrozen (Nov 09, 2007 6:38 am)
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Replying to: isellhondas (Nov 09, 2007 4:08 pm) Even the folks who could afford the $550 had a hard time swallowing that pill because they had gotten used to paying that $325. Between that and the undisclosed lease contract allot of the import stores were using(at least in our area) pretty much killed our leasing program for a number of years, and has really never been the same. |
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Starting today you can CPO a used car up to 6 years old (used to be 5) and with up to 80K miles (used to be 50K). The warranty is now Power Train to 100K (used to be 75K on most) and the first 3 months or 3000 miles is Comprehensive, AKA Premium Care (used to have no Comprehensive) The new inspection is now 165 point instead of the old 115. It will be a great program once we get it going. |
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