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Smart Shopper Purchasing at the End of Your Lease
716 messages, Last post on Nov 30, 2009 at 8:03 AM
You are in the Smart Shopper Forum. Your Hosts are kirstie_h & tidester
| Don't forget that alot of leasing sources buy residual insurance which makes up any shortfall on the residuals.. If they self insure you might be able to haggle but if they dont self insure they don't have any reason to discount the price. | |
| I've seen that with the Fords that we've leased in the past .. Ford Credit uses the "residual insurance" to ensure that they don't lose their shirts on vehicles that depreciate more than they state in the contract. | |
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...... Folks get this confused "all" the time - and lets be honest, dealers prefer it this way .. For starters, dealers have nothing, zero, less than one, nada to do with the value of any lease vehicle, before, during or at the end of the lease .. those figures are based on the lease companies contract figures and once the paperwork is signed and cashed, it's between the consumer and the lease company, not the dealer ... most lease companies will negotiate, including AHFC, VW, Audi, Bimmer, Ford, Yota, GMAC, etc etc .. That said, it will depend on the "when" part .. 5/25 months before the lease is up, "matters not" to the lease company, they have the contract and you owe them $$ ... now, 5/6 weeks before the lease will actually expire is when they start to take notice, they probably have alerted the dealer months ago to give them another swing at the bat, it's just good business ... Then comes the "where" part, depending on where you live can make a big difference on what the lease company will or won't do -- if your living in Michigan and it's January and you have tons of snow and cold, there is a pretty good chance they will be negotiating convertibles, depending on yesterdays auction reports and the residual - and that brings us back to the "when" part .. You need to be speaking with a decision maker about 5/6 weeks before the lease End, Office zone manager/District Lease manager, not the cute little blonde that answers the phone and looks at your account on her monitor, she has no horsepower ~ cute, but she's not a decision maker and only goes by whats on that screen ~ that's her "Yob Mon" ... at this time they have a reference point, yesterdays auction reports .. (example only) the insurance gig is nice, but thats why BMWFS has been very "receptive" lately, thinking $25, insured for $1,500 a unit, but only seeing $21, all those lease vehicles were bound to bite them in the butt sooner or later, here comes the later part ... Is there wiggle room.? .. it will depend on the time of the year, on what region of the country, what type of vehicle, market conditions and of course, the miles and the condition of the vehicle .................  Not knowing the details on Michaell's VW deal .. it sounds like a dealer thing - "warranty included" is always a dealer thing not a manufacturer thing .. Terry. |
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I never talked with the dealer where we leased our Beetle, only VW Credit, when our lease was coming due. The warranty was through a third party (can't remember the name). What's funny is that when I needed to invoke the warranty, the dealer always had to call in and figure out that I had it! Good thing I had it, though -- I ended up using it twice. Once for the A/C, the second time for the steering rack -- between the two, the warranty paid for itself.
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Replying to: michaell (Jan 20, 2005 7:47 am) Huh ...? VW Credit gave you a 3rd party warranty ..?!? .. makes absolutely no sense, somehow someway the dealer sold you the warranty not VWC .. Terry. |
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I bought the car directly from VW Credit. Now, that doesn't mean that the dealer wasn't involved, but I never spoke with any of their employees when I arranged this transaction. VWC quoted me the interest rate, VWC took some money off the residual price and to the best of my knowledge, VWC threw in the extended warranty. But, it's all moot, as we traded the car in a couple of months ago. |
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Hello. I signed my lease on my 2003 Toyota Solara SLEv6 in May, 2003. I paid for 18k/year miles expecting to do a lot of driving, which I DO (and I love). I figured out that at this rate I'm doing about 27k/year. I've computed that at about 8 weeks prior to lease end I will have an overage of about 25k miles, which will cost me (at .15/mile) about $3,800 as a penalty. I understand that I should PHONE the leasing company (Chase Auto) about 8 weeks before the end in order to try to negotiate the purchase. But is this mileage going to give me any purchasing power with them, or are they just figuring "the heck with him because if he DOESN'T buy it, he'll still owe us the penalty" ? I mean, from their point of view I'm sure they're not stupid enough to not realize that even if I DON'T purchase it, they're going to pocket the penalty/overage fees. I'm just trying to understand how this excess mileage stuff is going to pan out in the end. I'd also like to point out that I am VERY good at maintaining the car. I believe VERY strongly in preventive maintenance and am really taking care of the car (i.e. oil changes at 2.5/3k, tranny fluid changes frequently, fuel filter changes, tire rotations, premature brake pad replacements, etc. I also use ONLY Toyota parts too. Any input would be appreciated.
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Replying to: solaraman2003 (Jan 29, 2005 7:48 pm) Ok pay attention, because we are going to ask questions later .... 7/8 weeks before the lease is up you can try to negotiate the price, the point is: don't give them the mileage, if you tell them they will have you on the hook .. if worse comes to worse and you don't like the figure, then you pay the difference ..............  Terry. |
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I am leasing an 02 Accord CP 5 (3yrs/45K) speed manual and my lease will end in May 2005. By the end of the lease I will have an access mileage of 23k miles which comes to $3450. The residual value on the car in $12700. Do you think this is a good price for a car that will have about 66K miles at the end of the lease ? Also, do you think I can negotiate ? and precisely when ? what if they ask how many miles on the car ? am I obligated to give them the correct mileage? am I screwed either way ? I would like to keep the car since I did all the required maintanance on it plus I can't afford to finance or lease another car right now ! any suggestions or comments are highly appreciated.
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Replying to: zakiman (Feb 03, 2005 11:31 am) If you look back over the messages posted in the past couple of weeks, you'll see that some companies will negotiate purchase price and others will not. You can always try. If you do, don't mention the mileage or they'll know you're desperate This is a good vehicle, and it sounds like you're basically looking for reassurance that purchasing it is the right step. Some folks in your position want rid of their vehicles, but can't do it. If you're happy with the car, you're in luck! |
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