- #692 of 716
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Re: Help on Buying at Lease End [smarty666]
by volvomax
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Aug 19, 2009 (11:03 am)
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Replying to: smarty666 (Aug 19, 2009 10:55 am)
Generally speaking, the independent banks will negotiate, the captive manufacturer lenders won't.
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- #693 of 716
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Re: Help on Buying at Lease End [volvomax]
by smarty666
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Aug 19, 2009 (11:10 am)
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Replying to: volvomax (Aug 19, 2009 11:03 am)
really, wow that is pretty lousy for them to do; you would think how bad car sales have been since last year when the economy tanked they would do whatever they could to get rid of their cars - oh well
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- #694 of 716
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Re: Help on Buying at Lease End [volvomax]
by smarty666
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Aug 19, 2009 (11:21 am)
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Replying to: volvomax (Aug 19, 2009 11:03 am)
I think eventually it is going to come to the point that leasing won't be a viable option anymore because since I started leasing in 2005, I have seen so much changes when it comes to leasing and each year it is becoming more and more difficult to lease - now, dealerships want more money down, longer lease terms, disposition fees and the buyout price higher than TMV and the way the economy has been the last year, the dealerships are doing what they can to get people to buy the vehicles so that they don't get 3-4 year old cars no their lots in 3 years from now because they know they might have a problem selling them, especially large gas-guzzling SUVs
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- #695 of 716
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Re: Help on Buying at Lease End [smarty666]
by volvomax
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Aug 19, 2009 (11:24 am)
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Replying to: smarty666 (Aug 19, 2009 11:10 am)
Most captive lenders have residual insurance on their cars. That is why they don't negotiate, they don't have to.
This is a business, not a charity.
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- #696 of 716
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Re: Help on Buying at Lease End [smarty666]
by volvomax
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Aug 19, 2009 (11:27 am)
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Replying to: smarty666 (Aug 19, 2009 11:21 am)
Remember, the BANKS set the lease terms not the dealers. Banks have been losing money leasing, thats not what they are in business to do. Leasing has been ridiculously inexpensive for years. Both banks and car co's thought that sheer volume would lead to profits and that just hasn't been the case. Leasing is going to be done at realistic terms from here on out.
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- #697 of 716
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Re: Help on Buying at Lease End [smarty666]
by sebring95
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Aug 19, 2009 (11:34 am)
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Replying to: smarty666 (Aug 19, 2009 10:29 am)
what I don't understand is, shouldn't the buyout price (once added to the amount I paid out in my lease) be no more than the selling price of the car
That would be true only if there was zero interest on the lease and usually lease rates (money factors) are higher than normal financing rates. I don't know what your sales tax rate was...but assuming average sales tax is 7%...that would make your interest rate (apr) about 9.5% on the amount financed. One reason leases are usually bad deals is the high interest rate which has been proven here.
Also, you need to realize these are two seperate transactions. The dealer made $XX when they sold the car to the leasing company for whatever your agreed upon sales price was. The leasing company now is on the hook for the car and they either can sell it to you or sell the vehicle elsewhere. Some of the captive finance arms (toyota motor credit for example) have incentives that can go back and forth on these deals, but essentially that's how it works.
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- #698 of 716
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Re: Help on Buying at Lease End [volvomax]
by smarty666
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Aug 19, 2009 (11:43 am)
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Replying to: volvomax (Aug 19, 2009 11:27 am)
very true, leasing used to be inexpensive but as you said the car companies, rather the banks of the car manufactures were losing money on leases and they are getting smart and learning from their mistakes; for instance, each year more and more car companies are now charging disposition fees if you decide to return the vehicle and not lease or buy something else from them; it originally started a few years ago with GM and Chrysler and now its starting to make its way into the Japanese automakers; all my leases up till now have not had disposition fees but I know Nissan/Infiniti started it early this year and I've heard Toyota/Lexus has it on certain leases; I've been lucky that Acura hasn't started it yet since that is what my current lease is with; to me a disposition fee is just another way to get more money out of the customer and punish them for returning the car; even if I leased for three years, made every payment on time, kept the car in pristine condition none of that would be taken into consideration and if I decided to return the car I'd be charged that $400-$500 fee regardless of how good a customer I was and the great condition the vehicle was turned in; you have the legal right to return the vehicle at the end of a lease why should I pay a fee to return it; just seems ridiculous but at least my lease now doesn't have one
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- #699 of 716
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Re: Help on Buying at Lease End [sebring95]
by smarty666
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Aug 19, 2009 (11:46 am)
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Replying to: sebring95 (Aug 19, 2009 11:34 am)
yeah I see what your talking about; I live in NJ so my sales tax was 7%; no matter how good the lease deal was, unless the selling price is lower than the TMV it is not worth it to buy the vehicle at the end of the lease and as volvomax has stated most manufacture finance companies don't have any incentive to negotiate the selling price since they have residual insurance on the vehicles
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- #701 of 716
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Residual on VW end of lease in CO.
by itslisa
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Aug 22, 2009 (2:14 pm)
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I just tried to negotiate buyout with VW dealer in Denver area on buyout. VW said perviously that I needed to contact the dealer. Dealer tells me that 'they' are only 'middle' men and they have NO power to negotiate price down.....that VW is the owner and they are not licensed in CO?! I'm wondering what the heck that means relative to my lease buy out. And, if this information is true? Does anyone have any help they can offer to this. My lease is up in 3 weeks. FYI- I know for a fact the same car today is less than it was priced at in 2006 when I negotiated my price then. Is this a bunch of crap?
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