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Purchasing at the End of Your Lease

711 messages,  Last post on Sep 19, 2009 at 10:24 AM

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What is this discussion about? Car Leasing


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#702 of 711
Re: Residual on VW end of lease in CO. [itslisa] by michaell
Aug 23, 2009 (10:14 am)
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Replying to: itslisa (Aug 22, 2009 2:14 pm)

See my response to your post in the other forum.
#703 of 711
Is it worth shopping different dealers? by bostonmdxbuyer
Sep 11, 2009 (12:15 pm)
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I have a 2007 Lexus RX lease which ends this month. I am 2000 miles under the 36,000 miles for the lease. The residual is $25500. Based on Edmund's and other websites, I think this car is worth $28000+. I want to purchase the car, but Lexus Financial won't negatiate on the price. I have gone to the original dealer and they offered 5.9% financing, but won't go down on the price. Is it worth going to other Lexus dealers to see if I can get a better deal, or will they just offer me the same deal? Any other way to get the price down?
Thanks
#704 of 711
Re: Is it worth shopping different dealers? [bostonmdxbuyer] by sebring95
Sep 12, 2009 (5:44 am)
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Replying to: bostonmdxbuyer (Sep 11, 2009 12:15 pm)

Why would they negotiate if it's worth MORE than your buyout? Additionally, I have NEVER heard of Toyota finance negotiating the buy-out on lease and it's rumored that they're insured. I know some folks that had the big trucks and SUV's that were coming off lease last year worth thousands less than residual and Toyota/Lexus wouldn't budge on the buyouts. I know one guy that turned in his lease and then bought it back off the dealer for quite a bit LESS than his residual.
 
When you say "worth" more than the residual...are you speaking of retail, private party, or trade-in value? Residuals are set on trade-in or auction values.
#705 of 711
Re: Is it worth shopping different dealers? [bostonmdxbuyer] by volvomax
Sep 14, 2009 (12:04 pm)
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Replying to: bostonmdxbuyer (Sep 11, 2009 12:15 pm)

Lexus Financial sets the price, not the dealer.
If the finance co will sell the car for $25,500 and its worth $28,000 a) WHY would they lower the price anymore and b) why would you not just take the deal and be happy?
#706 of 711
Advice needed on LEP for a CTS by apocalypso
Sep 16, 2009 (12:33 pm)
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So I've got a Cadillac CTS and my GMAC lease ends Jan. 18 2010. I have roughly 35,000 miles on it so far, and this was a 15K/year 3 year lease. My residual is $21,000. The residual is roughly equivalent to dealer retail value today.
 
I was talking to a Cadillac dealer today, and he suggested I call back in a month and see if he can help me with a lease end purchase. If I understood him right, he said sometimes he's seen where the residual can be negotiated down if you're 90 days from the end of the lease (possibly several thousand dollars) but usually it's a lot tougher or impossible if you actually wait to the end of the lease to try and purchase. I'm assuming he's expecting I would finance a loan for the buyout price. (Which I do want to do.)
 
He wasn't guaranteeing a residual reduction, but he seemed to think with the market conditions he's seen it's possible or likely.
 
Does this sound right and/or likely? Do I need to work through a dealer necessarily? Thanks for the comments and suggestions!
#707 of 711
Re: Advice needed on LEP for a CTS [apocalypso] by grandtotal
Sep 16, 2009 (1:53 pm)
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Replying to: apocalypso (Sep 16, 2009 12:33 pm)

I think the dealer may be blowing smoke. I can't see GMAC being willing to negotiate a lower residual until just before the lease expires.
 
I'll bet that when it comes right down to it and he cannot negotiate a lower residual he's hoping you will be so in love with whatever you replace the current car with that you'll go ahead and do the deal anyway. "Instant gratification".
#708 of 711
Purchase 335i? by wbb56
Sep 17, 2009 (4:02 pm)
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My 335i 3-year, 36k mile lease is up in April of 2010. Due to an unforeseen job change I am going to go way over 36k miles. In fact I'm over 37k right now. Given that, and the fact that I made eight security deposits of roughly $600, I am considering purchasing the car at the end of lease--rather than pay for the 8-10k additional miles. Is this a good idea? If I decide to pursue it is the price of the car negotiable? What price should I expect to pay for the car?
My negotiated price for the car was $45,575.00 (MSRP was $47,795). Residual value $30,000.
 
Thank you very much in advance!
#709 of 711
Re: Is it worth shopping different dealers? [volvomax] by bostonmdxbuyer
Sep 18, 2009 (11:03 am)
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Replying to: volvomax (Sep 14, 2009 12:04 pm)

Thanks for the replys.
I understand that Lexus Financial owns the cars. But doesn't the dealer have some incentive, in the form of money from Lexus, to sell the car? If so, then perhaps the dealer would be willing to give up some of that money to get the deal done, rather than to give that sale to another dealer. When I have purchased or leased a vehicle in the past, I have tried to get dealers to bid against each other to get the best price. I don't know if the same strategy is possible with a end of lease purchase. If there is no incentive from Lexus to the dealers, then I can't see any advantage to shopping different dealers.
Thanks
#710 of 711
Re: Is it worth shopping different dealers? [bostonmdxbuyer] by sebring95
Sep 18, 2009 (11:52 am)
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Replying to: bostonmdxbuyer (Sep 18, 2009 11:03 am)

Once you turn the car in, the car generally either gets auctioned online or will be physically sent to a sale. The dealer would have the ability to bid on the car...so if the auction value is signifianctly less than your residual, I suppose it's feasibly possible to try and get the dealer to buy it at the sale and then sell it back to you. This is what someone I know did with a Tundra pickup that had a ludicrously high residual vs market value. However, that doesn't sound like the case on your vehicle so I don't think you have a leg to stand on negotiating for a better buy-out price. The dealer will facilitate the buy-out for you, but they're essentially just passing the money onto Toyota/Lexus finance.
#711 of 711
Re: Is it worth shopping different dealers? [bostonmdxbuyer] by volvomax
Sep 19, 2009 (10:24 am)
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Replying to: bostonmdxbuyer (Sep 18, 2009 11:03 am)

Dealer gets no incentive from Lexus Financial to sell a car that Lexus Financial already owns.

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