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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
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Replying to: jjc42482 (Mar 14, 2009 11:43 am) Otherwise, lease or buy a new car you can afford. Buying a new car seems even more farfetched because the monthly payments are very high ???? I NEVER understand how someone can say this. Rule of thumb is you pay $20 of payment for every $1,000 you finance for 5 yrs. Pretty simple. So, if you can afford $300/mo, you need to finance  $15,000 $400/mo finance $20,000. That way, you know not to go looking at $30,000 cars if you can only spend $300/mo. |
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I have a 2006 Trailblazer LT leather etc...everything but Nav basically, and it only has 19,500 miles on it. I have leased the car for 36 months at $389 / month, nothing down at signing but tax and first month (total $13,615.00 paid to date in payments(35)) My buyout was to be $21,132.70. The private party value according to kbb.com in Excellent condition (which it is) was $19,840.00 (amount expected to see the car on a dealer lot for). Chevy negotiated with me (after playing 4 dealers against each other, and some white lies) a buyout of $16,900...I took it even though I could probably squeeze another $500 out of them if I go back and forth a few more times. Overall I got a 2006 for $30,515 (was on the lot for $33,085.00 in 2006) cause I bought out the lease cash. I am happy with the deal, and note to all GM lease holders...they don't want the cars back and will pretty aggressively negotiate the buyouts.
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Replying to: toenlo36 (Apr 04, 2009 8:15 pm)
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Replying to: rayd8 (Apr 06, 2009 5:21 pm) |
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I couldn't help myself, I beat them down another $500 to $16,400 + $45 DMV fees...I love working these guys. 
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I have a 2006 Accord Coupe EX-L coming up for end of a 3-year lease on July 4. I really should have bought this thing at the outset, but I definitely want to hold onto it--I'll probably only have 15k miles on it by the end, and I love the car. Residual is just under $14,592 and my research is that it's probably worth about 2k more than that on the open market, and even more to me; at the low amount of wear I put on it, I figure I can probably keep this car for 10 years. I lease through Honda Financial Services. 1) Is there any way Honda can charge me more for the car because I put so little mileage on it? 2) What exactly is a "lease buyout" financing rate? I'll probably put between $5-10k down and pay off the rest over two years, but I'm a bit confused on the difference between a lease buyout rate and a used car rate. The few sites I've found that have lease buyout rates (Bank of America is one) have them considerably higher than used car rates. Is the best plan here just to try to get preapproved for a bunch of loans? 3) Does this all got done through Honda Financial Services, my dealer, or some combination of the two?
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Replying to: friarfunk (Apr 15, 2009 6:36 am) Even if it has fewer miles. Never heard of "Buyout" rates. It should be financed as any other used car. FAIK, a Honda dealer has to handle the paperwork. |
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Replying to: friarfunk (Apr 15, 2009 6:36 am) I wouldn't sweat it. If I am correct, you leased this right around the same time I did, which is when Honda was offering ridiculously low money factors on Accords. It worked out to somewhere around 0.9%. Their financing rates were nowhere near that good at that time. Leasing was the way to go, even if buying out at the end. |
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Replying to: friarfunk (Apr 15, 2009 6:36 am) As to the 'lease buyout financing rate' it is possible that as a lease customer they might have special/lower rates so that they can keep you as a performing asset for HFC vs. a bank or credit union. We have an 07 Sonata 30 month lease expiring in two weeks and while they will not negotiate on the buyout, we've received several offers - lease an 09 or very low APR's to buy a new Sonata, Santa Fe or Genesis. We like the car, w/02 popular pkg, should turn 30K miles by next week and there's still 2.5 yrs left on the original mfg 60/60K warranty. Additionally, the low money factor, cash back, lease support etc. in Oct 06 when we did the lease was quite good so including total lease payments and residual the final cost is still quite reasonable. We're planning to buy it out week after next. |
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We had our lease inspection done yesterday and I asked our inspector what the market is and he said in his 15 years this has been a good time to be in a lease as the prices fell on the cars, but a bad time to buy out a lease....the trend is for people to return their lease cars (unless they can negotiate a price) and buy new. That's what was said. |
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