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Smart Shopper Purchasing at the End of Your Lease
711 messages, Last post on Sep 19, 2009 at 10:24 AM
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Replying to: itslisa (Aug 22, 2009 2:14 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 |
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Replying to: bostonmdxbuyer (Sep 11, 2009 12:15 pm) 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. |
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Replying to: bostonmdxbuyer (Sep 11, 2009 12:15 pm) 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?
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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!
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Replying to: apocalypso (Sep 16, 2009 12:33 pm) 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". |
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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! |
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Replying to: volvomax (Sep 14, 2009 12:04 pm) 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
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Replying to: bostonmdxbuyer (Sep 18, 2009 11:03 am) |
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Replying to: bostonmdxbuyer (Sep 18, 2009 11:03 am) |
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