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Purchasing at the End of Your Lease

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Comments

  • volvomaxvolvomax Member Posts: 5,238
    Yes they do.
    However, Volvo's tend to need more maintenance as they age than Japanese cars do. So, keep that in mind.
    Even so, I would not own ANY car,short of a beater,without a warranty. Even a Toyota.
  • qbrozenqbrozen Member Posts: 32,934
    maybe i missed it, but how many miles on your XC?

    $2600 is alot for a warranty. But it really depends on how many miles you have and how many you will have when the warranty expires. If the answer to part 2 of that equation is less than 100k, then I would not buy the warranty, personally. As vmax said, it requires a good bit of maintenance, but none of that will be covered under a warranty, since its normal wear and tear.

    '11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S

  • sebring95sebring95 Member Posts: 3,241
    They don't sell warranties as charitable products....they're making coin off of them so obviously the odds are in your favor. I will NEVER buy an extended warranty. But if you're the type that can't sleep worrying about a potential repair bill (as opposed to a guaranteed $2,600 warranty....) then by all means...sleep well.
  • skopiecskopiec Member Posts: 14
    35K miles on it currently - my wife is currently putting on ~10K per year.

    At 2600 or so for a warr, I'd have to say that I'm tempted to self insure. I'd be paying cash for the car, so there'd be no payment.

    Thanks for the feedback!
  • volvomaxvolvomax Member Posts: 5,238
    They don't sell warranties as charitable products....they're making coin off of them so obviously the odds are in your favor. I will NEVER buy an extended warranty. But if you're the type that can't sleep worrying about a potential repair bill (as opposed to a guaranteed $2,600 warranty....) then by all means...sleep well.

    Then why have car insurance?
    Same thing, your ins co is making coin off of you.
    Most people never file a claim either.
    An extended warranty is just insurance.
    Insurance where you pay the entire premium up front.
  • qbrozenqbrozen Member Posts: 32,934
    Then why have car insurance?

    Because the law says you have to.

    ;b

    '11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S

  • sebring95sebring95 Member Posts: 3,241
    I agree that extended warranty is just insurance. But I don't particularly like ANY insurance unless it really is necessary. Lets see, my wifes GX470 policy is right here in front of me. Take out all the legally required bits, liability, bodily injury, etc. and just look at comprehensive and collision: I pay $608 per year to insure this Lexus. Probably worth $25,000 today. I can stomach that. Why should it cost me significantly less over three years to insure the ENTIRE vehicle compared to just some possible repairs? Ah, because extended warranties are a major money maker for everyone involved. Wrong forum, but this isn't exactly the busiest thread around......
  • volvomaxvolvomax Member Posts: 5,238
    Because the law says you have to.

    Not everywhere.
    Even so, the law also states that a new car must be sold with a warranty.
    If a BRAND NEW car needs a warranty,isn't a used one more likely to need one?
    If you could save a couple thousand on a new car by forgoing a warranty, would you?
  • volvomaxvolvomax Member Posts: 5,238
    Well, 1800 to insure a Lexus for 3 yrs, 2600 to warranty a car for 3 yrs
    Diff of $267/yr.
    Where is the significant difference?
  • sebring95sebring95 Member Posts: 3,241
    The difference is in the exposure. Insurance co. has far more exposure to payout and yet it's still far cheaper. It's crystal clear that the average Volvo doesn't need $2,600 in repairs during whatever warranty period, otherwise they wouldn't be selling these contracts. I was offered 5yr/100k mile bumper2bumper Honda Care on my Odyssey for $900. Sounds like a bargain compared to most service contracts, but fact is they've done the math on those too. Sure there is the chance your vehicle might be worse than average and you make out buying a warranty. But if you're going with odds then they're in the warranty co.'s favor. Risk analysts are on staff at every decent sized US corp. You can work for State Farm...Walmart...Harrah's...take your pick. It's all about odds.
  • qbrozenqbrozen Member Posts: 32,934
    Not everywhere.

    And I'm sure in those places there are lots of people driving without it. God help those they hit, though.

    If a BRAND NEW car needs a warranty,isn't a used one more likely to need one?

    That's a loaded question, don't ya think? Depends on the used car. How many miles it has, how many it will have by the time the warranty expires, how its reliability historically is, how it was driven and cared for by its previous owner, etc, etc.

    But, in this instance, we are talking about a vehicle that the person already owns and has driven for 3 years and 30k miles with no problems. Odds are very very good that the next 3 years and 30k miles will be trouble-free (at least the kind of trouble a warranty will cover). And this is true of most mass-produced cars.

    Many folks believe that a car that goes 30k miles with no problems will be good for at least 80k-100k miles. But, a new car can easily be a lemon, so I (and I believe many folks) would be less inclined to give up a new-car warranty, as opposed to a proven used car with no bad history.

    '11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S

  • knathanwknathanw Member Posts: 1
    My lease is about to end on my 2004 VW Passat GLS sedan. I am interested in buying it and am wondering if anyone knows if VW credit is willing to nagotiate. Also, I need to know where to start nagotiating. Four months after I got the car I hit a deer and the repair costs were over 5,000 so there is now a damage disclosure (body and radiator, no frame damage). Normally, I wouldn't consider buying the car because of the accident, but I have had the car for almost four years since and I know it is good shape. Moreover, I moved farther from work soon after leasing, so I will end up owing almost $4,000 in over mileage. The purchase price in the contract is $9,900, which is more than the car is worth because of the accident, but I don't want to pay almost halft that in mileage penalty.
  • sebring95sebring95 Member Posts: 3,241
    They're not going to negotiate at all if they have any idea the miles are that high. That's money in the back for them. I have heard of VW negotiating on leases before, but who knows if they're doing it now. The $9,900 buy-out doesn't sound bad to me based on your current situation. What can you buy for $9,900 that's better? Nothing anywhere near as nice I'm sure. It's certainly not the most ideal situation with the accident, but I think that's your only choice.
  • nanner2nanner2 Member Posts: 2
    I am absolutely frozen pulling the trigger on a decision to buy out my lease on an immaculate 2005 Toyota Rav 4 with 28,000 miles OR to simply lease a new one
    ( at almost the same monthly lease payment).

    It's the base model with 4WD and has a $13,600 (non-negotiable) buy-out. I'm finding that it adds up to $16,000 by the time I add sales tax, extended warranty (now reading here that I shouldn't bother : - ) and registration, etc.

    Why the hesitation?

    Pro-New:

    1. I have a 5 year old and the 2005 doesn't have side airbags - the new ones do. Safety is a big factor. Drivers are crazy in my neighborhood.

    2. I work in sales and write-off most (even tho Suzie Orman says that's BS).

    Pro-Buying:

    1. I love the old look - not big on the new look but would probably adapt to it after a few weeks.

    2. In 3 years, I'd OWN a 6 year old Rav4 with 60,000 miles on it that would probably still be worth some $$.

    HELP! Any advice?
  • dtownfbdtownfb Member Posts: 2,918
    If it were me, i would find out what the value of your RAV4 is at the time of turn in. the $13,6k could be high or low. If it i a good price buy it. you still have 2 years, 32,000 miles on your powertrain warranty. If the buyout price is high, then turn it in and lease another.

    I'm not a fan of leasing except for people who have discretionary income to afford lifetime car payments. You have the ability to end the leasing cycle with a decent vehicle that like you said in 3 more years will still have great value. A lot can be said for that.

    BTW, your 5 year old has lasted this long traveling in your RAV4, I wouldn't make side air bags the deciding factor.
  • sebring95sebring95 Member Posts: 3,241
    I agree with the above, find out exactly what it's worth. There's a real-world trade-in value forum here that would be helpful. Follow their format and someone will give you an idea of the trade and private-party value (if you ask).

    A good quality booster with side-impact protection should do a fine job with your 5yo. Drive carefully (put down the phone) and you're already ahead of the curve.

    If you truly can write-off your lease payments, then you can also depreciate your vehicle. There's very little (if any) financial advantage to leasing an average cost vehicle even when you can write-off the payments. Luxury vehicles ($40,000+) can be beneficial to lease assuming you plan to get a new one every 3 years. So once you buy this vehicle for $16,000 otd, you can depreciate up to $3,060 (current limitation) per year. You are keeping detailed mileage logs, right?? :P
  • volvomaxvolvomax Member Posts: 5,238
    I'd trade the RAV on a new one.
    Right now, your truck is prob worth $15000.
    So, you'd have $1400 of trade equity, which you can apply to your new lease.

    Most people who buy out a lease get rid of the car within 18 months, so chances are you won't keep the current RAV long enough to reap the benefits of not having a car payment. Also, the old RAV is going to have maintenance costs the new one won't have, tires, spark plugs, tune up etc.
  • nanner2nanner2 Member Posts: 2
    Thanks for the advice. I've been online and its selling at dealers for about $18,000 and privately for $16,000 so its kindof a wash.

    I actually went to look at new boosters last night : - ) There is some info out there that says that side impact air bags don't help kids (too short).

    I think either decision is a fine one. I fell in love with my Rav4 but maybe will fall in love with a new one too. (Just don't like the lines - the old one is cute - the new one is copy-cat) I'm figuring that with finance costs and a warranty, etc its going to cost me $17,000 to buy out. Keep it 6 years and it still costs $2800/year and then I have to go thru the hassle of selling it privately (but I may be ahead $6,000 that way.

    I can lease a brand new one with side airbags for the same as I'm paying now - about $335 a month and then get a new one in 3 years - no hassles.

    Plus, I'm thinking that in 3 years, daughter will be 8 and I don't have to load her into a carseat. Might be nice to have a different care - a jetta or something.

    As for write-off, accountant takes 5/7 of the car as its used 5 days a week for business - really!
  • sebring95sebring95 Member Posts: 3,241
    Well I think you've got it figured out. Leasing costs more but is convenient to some extent. The only leasing I do is through lease assumptions. Basically, people got into a lease and then have to get out for whatever reason and they pay dearly for that. That's why I only recommend leasing to those with very strong finances (not likely to be hurt by a circumstance change). I'm a CPA and can tell you your accountants 5/7 calculation will harm YOU if you're ever called onto the carpet. You're ultimately responsible for your return and documentation so keep that in mind. With some of the changes the IRS has made recently towards tax preparers (doubling fines and aggressively pursuing them) he/she may change their policy if they're keeping up with things. They days of gray area and blowing off documentation are over as far as I'm concerned. Glad I sold my practice when I did.
  • sarasmilessarasmiles Member Posts: 3
    Is the purchase price stated in the lease agreement negoatiable at the end of the lease? My lease is through GMAC and on the lease itself states the residual value at $15218. When I called GMAC they quoted after taxes the purchase price would be $17130. This is for a 2005 Chevy Equinox with 34K miles, blue book in excellent condition is $14,500.

    Any insight would be helpful.

    Thanks-
  • dtownfbdtownfb Member Posts: 2,918
    In your case the residual is highe then actual value. Try again at the end of the lease, if they don't negoiate, walk away. You should go over to the Real World values board to find out the real value of the Equinox. SUVs have taken a big hit and I would not trust the Blue Book value. My guess it is worth less then the $14,500.
  • sebring95sebring95 Member Posts: 3,241
    It CAN be negotiable if THEY want it to be. Not sure what GMAC's current position is but it may be on a case-by-case basis. All you can do is call and ask. Regardless of current book value, the real test is how much can YOU buy a similar vehicle out in the real world? If you like the vehicle there could be value in paying a little more for yours, but only you can make that decision. I'm guessing your buy-out is probably still a bit cheaper than you could buy one used that you know nothing about.
  • mzfrankiebabymzfrankiebaby Member Posts: 1
    Help needed :confuse: . I'm at the end of my lease, should I purchase this truck or take the hit pay for the miles and walk away? I have a 2006 King Ranch Eddie Bauer Expedition, lease is up, excellent condition however I have 60,600 yes I'm 36,600 over in mileage. Be nice to me guys :shades:
  • sebring95sebring95 Member Posts: 3,241
    This is pretty easy to calculate. What's the difference between real-world price and residual value? Is that more or less than the (guessing) $5500-$7,500 mileage charge? I'm also guessing someone driving 30k miles per year doesn't need such a vehicle so that will play into the equation. If you don't need such a vehicle, it's obviously not worth as much to YOU. Perhaps someone will come along and tell you what it's worth, or you can try the "real-world trade-in value forum".
  • joel0622joel0622 Member Posts: 3,299
    I don't see how you can't buy it unless you have allot of disposable income. You have $7320 in miles to pay for.

    Just using hypothetical figures here that have nothing to do with what your ride is actually worth or what your buy out is, lets say the buy out is $25K and it is worth $20K. That is a $5K difference but then you have to write the check for the miles.
  • qbrozenqbrozen Member Posts: 32,934
    Drive to the nearest Ford dealer (its a Ford, right?) and ask them what they'd give you for it. Then determine if the difference between trade-in and buy-out is more or less than the mileage cost. If it is lower, than you don't have to pay the mileage fee to get out of it, you just pay the negative equity.

    I shudder to think what you spent in gas alone these past 2 years.

    '11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S

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  • s60leasers60leaser Member Posts: 61
    OK,heres the issue:
    2005Volvo s80 T-awd,40 K miles(in June when lease is up)climate Pkg,KBBvalues=$16.2-22.7
    RV=$24,000
    to turn in, I have to repair some body damage(+3K)
    which I will not repair if I buy.

    2005VolvoS602.5t,leather,climatepkg,30 K miles(in June when lease is up)
    KBB values:$15.8-22.1
    RV=20,400
    To turn in,$2kmileage+2Kbody damage
    Which I will not repair if I buy

    To BUY I have to borrow the $ at 5%,5 years.
    To LEASE NEW ? Leases are up in June,so not sure if I would look at 2009 or 2008.
    To BUY NEW, still get the money at 5%(HELOC,so its variable)and would pay in 5 years.Prices-?Carsdirect says$37.9K for the S80 and $30.8K for the S60.obvoiusly 2008 prices

    I am REALLY confused-and just want to save some money on my car payments!
  • kyfdxkyfdx Moderator Posts: 236,819
    No matter what you do afterwards, at these numbers, you will probably be better off turning these cars in, and coming up with the cash.. Don't look at it as a penalty... you used those extra miles.. you are just paying for what you used (which is how a lease works).

    Pay the end-of-lease charges, then start clean.. Then, you can buy or lease whatever you want..

    It may hurt, but you'll be better off in the long run..

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  • qbrozenqbrozen Member Posts: 32,934
    If the teenies will be driving it, I'd look at an S40, or maybe even a C30.

    '11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S

  • s60leasers60leaser Member Posts: 61
    Yes, I think you are right.
    Man, this is a GREAT forum. Clear heads all around bring muddled decisions into focus.
    Now, maybe I go with More miles and a cheaper car... SAFETY is my big concern with teen drivers, what about a camry?Or, maybe the s60 newly leased is still under $400/mo?
    THANKS again. It looks like I will turn in both cars and ante up for the miles and etc.
    I have contacted CARSDIRECT for help w/lease #'s on a 2008 S60 2.5T and S80 T. we'll see. I may end up with that,

    maybe a less expensive but AS SAFE car-LIKE?????
  • s60leasers60leaser Member Posts: 61
    My concern with the S40 is it is built on a Ford Focus? chassis, making it less safe than your typical Volvo-Is that true?
    Never looked at the c30, but now I will. Is the Camry a good or bad idea?
  • s60leasers60leaser Member Posts: 61
    You're right about the first 36 months brings lots of dings on an expensive car-Thats the boat I am in right now. Which is one reason I thought of buying the s60-Then, I don't have to fix the dingsthat it has now(@2K) and won't care about the new dings so much when they occur ( I have 3 teens driving now, and 1 more in 2 years.Yep, thats 4...)
    At that point Ill have a 5 year old volvo and, I figure the eldest will "inherit" the old car!
    Is that crazy?
    I grew up with 4 of us teens at he same time, all driving a dodge charger,same car for about 10 years...Not safe, but really cool...
  • jlawrence01jlawrence01 Member Posts: 1,757
    Clear heads all around bring muddled decisions into focus.
    Now, maybe I go with More miles and a cheaper car... SAFETY is my big concern with teen drivers, what about a camry?


    A few quick ideas:

    1) Most teens that I know have an accident of some sort (like a bump in the parking lot) in the first 36 months that they are driving. Why buy a really expensive car and put a lot of dings on it?

    2) Personally, I would do an older midsized sedan that is absolutely BORING. If the reaction is "I wouldn't be caught dead in THAT," you are in the right ball park.

    3) Avoid the higher profile vehicles that are easier to lose control of. They can be really difficult for new drivers.

    4) I see so many people spending big dollars on "the latest and greatest safety device du jour." The same people brag that they can get 120k miles on a set of the el cheapo OEM tires. Personally, up here in the frozen north, I replace my tires every three winters no matter what the tread looks like. I buy the better rated traction tires which are usually quite affordable.

    Three of the four vehicles in the ditches last night were larger SUVs while the subcompacts were humming along in the 5" of snow last night.
  • qbrozenqbrozen Member Posts: 32,934
    My concern with the S40 is it is built on a Ford Focus? chassis, making it less safe than your typical Volvo-Is that true?

    No, it is not true. The European Ford Focus, Mazda 3, S40, and C30 are all on the same platform, but it is a platform that was co-developed by Ford/Mazda/Volvo. So it is no more a Volvo on a Ford platform than it is a Ford on a Volvo platform.

    Besides, while a platform is part of the safety picture, it is not the whole safety picture. Volvo has seats, airbags, doors, and even the metal of the body itself that is all engineered with safety in mind. These components are not shared between it and the mazda3/Focus.

    That being said, the safety gap between volvo and other manufacturers has been reduced over the years. Most other manufacturers have "caught up" in many regards.

    '11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S

  • lougheedlougheed Member Posts: 2
    The lease on my 2005 BMW x3 is up next month. I would like to buy the x3. Can I negotiate a lower buyout price or an extended warranty? I'm 10k under my lease miles.
    How is BMW with buyout negotiation??
  • kyfdxkyfdx Moderator Posts: 236,819
    BMW FS won't bargain on the buy-out price.. If the car is truly worth less than the residual, then they would rather sell it to their dealer for the lower amount, than to you..

    Of course, if you are 10K miles under your allotment, then that doesn't help your case any..

    I'm pretty sure that they will refer you to your dealer for the extended warranty.

    If you are certain that you want to buy the vehicle, with an extended warranty, you might check with your dealer. Ask them how much it would be to take the vehicle off-lease, CPO it, then sell it back to you. If the market reports show that the vehicle is worth less than the residual, you might come out ahead this way.

    Good luck!
    kyfdx

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  • jessicabreejessicabree Member Posts: 1
    My lease on my Altima ends in February 2009. I signed a 24month lease 12k/miles per year. I currently have 22k on my car and know that I have totally screwed myself. Would it be best to buy it at the end of the lease, or release another.
    Thanks for any feedback
  • grandtotalgrandtotal Member Posts: 1,207
    You haven't totally screwed yourself, but you will have to pay for the use of the car that you did not contract for. If I were you I'd do the following:
    1) Work out what you are going to have to pay for over mileage. It looks like you are doing about 18000 miles a year so you will be about 12000 miles over your allowance. 12000 miles at $0.10 per mile (or whatever your rate is) =$1200, so if you put aside $120 a month you'll be able to pay the charge.
    2) By all means lease again if that suits you, but contract for 18000 miles a year. The monthly payment will be higher, but no nasty surprise at the end.
  • qbrozenqbrozen Member Posts: 32,934
    yup. as grandtotal says, you need to do some math.

    But what I do with that math is figure out what my best option is.

    To give an example ...

    lease is $250/mo. I hit my 24k mile limit with 7 payments remaining. I can either pay the remaining payments now and get out of the lease (or trade it in and pay the negative equity ... whichever is lower of those 2 options) or I can continue to drive and pay the extra miles at the end. If miles are 18 cents each and I will go over by 10k, that's $1800. But I only have $1750 in payments remaining. So I may opt to terminate early and start over. Of course, there are other possible costs to take into consideration, like paying out-of-pocket costs on a new lease ... but you would have to pay those in 7 months anyway.

    '11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S

  • ktremorktremor Member Posts: 2
    I have a 2005 Toyota Matrix Basic that has 34750 miles on it with the lease ending at the end of the month. The engine was replaced at 6,000 miles due to the careless work of an oil change company (Not replacing a $5 part correctly cost them $12K). The car has no damage, just normal wear and tear. I called the Toyota Financial Services and they said the payoff amount is $8,900. I am eliberating buying the car at the end of lease. We have put about $9000 into the monthly payments over the 36 months of the lease.

    The KBB suggested retail value is 15,795.
    The KBB private party value is 13,250
    The KBB trade in value 10550.

    I don't know much about cars and was wondering if it would be a good decision if the I bought it. Also if I do, does TFS ever negotitate the price they are willing to sell it for?

    Thanks for the help.
  • sebring95sebring95 Member Posts: 3,241
    I've never had TFS negotiate on my buyouts. Take it or leave it. Doesn't sound like you have too bad of a deal, but go to the "real world trade-in value" forum and see what it's REALLY worth on trade. KBB isn't always right. Or even close. If you can buy it for less than trade, it would probably be a good deal if you like the car. You might even be able to make some coin as opposed to turning it in, even if you didn't want to keep it. If you have positive value, that can be applied to a new/used care at trade-in time.
  • volvomaxvolvomax Member Posts: 5,238
    Car's prob worth $9000 on a trade.
    So, your buyout price is pretty good.
    Just have to decide if you want to keep the car.
  • arrowhead3arrowhead3 Member Posts: 1
    I recently traded my Mazda for a Honda at the end of my lease. We called for a buyout and the dealership (Honda) wrote a check.
    I just recieved a bill from Mazda for the excess mileage, which i could understand if I had turned the car back in but it was purchased. My lease says nothing about paying for excess mileage when you purchase the car. I have traded in 3 previous cars by buying/trading in at the end of the lease and have never been charged excess mileage.
    What should I do?
  • dwynnedwynne Member Posts: 4,018
    Look at your Honda paperwork and see if they show that you traded in the car or not. If it is not shown as a trade then the dealer may have pulled a fast one on you.

    The car may not have been worth what the residual / buy out was on the lease so they may have just taken it from you and then turned it in "for you". Nice of them, wasn't it?

    I would call Mazda and ask them where the car is and who turned it in and to what dealership and ask who signed the odo statement, etc. It could be some kind of mistake, but if the car was returned at lease end to a Mazda dealership then you would owe for excess wear and tear and for over miles. Then you have to go talk to the Honda dealer to see what happened and try to get the money from them to pay what Mazda says you owe.

    Did you call Mazda to tell them what was going on after you "Traded" the car in? You should have. Keep in mind it is their car and you are / were just renting it, so once you did anything with it you should have called them and told them who had the car and what the deal was on it. Then follow up every day or two with the lease bank to make sure the car got paid off by the dealer. Then if anything goes wrong you will catch it right away and can start trying to fix it.

    I haved traded cars before the end of lease a couple of times and once dealer got the payoff, but didn't get around to paying for it for several WEEKS. I was worried another payment would come due before the dealer paid up - or that the payoff would no longer be good and I would owe the extra interest. I DID tell the lease bank that day that a dealer had purchased the car and offered to fax them a copy of the paperwork, then when the dealer was slow to pay they went after THEM and not me - though I was ultimately responsible for the car in any case.

    Dennis
  • pdfdgirlpdfdgirl Member Posts: 1
    Our lease term is up next March. I have a couple of questions I'd like to get some feedback on.

    1. Our car is in good shape and under mileage. But we have one small ding where someone opened their door and hit the car. What fees should we expect, and would it benefit us to have the ding fixed ourselves?

    2. We are looking at trading into a larger SUV (despite gas prices, we need to be able to tow). According to Edmunds the residual value is low on these, so the payments are higher than to purchase. We lease because we like to have a vehicle with a warranty. Is it wiser to lease and not risk being up-side down, or purchase now while there is good interest ?

    Thanks in advance for any thoughts.
  • dtownfbdtownfb Member Posts: 2,918
    With the current car market, you may be looking at this a bit premature. If it were me, I would definitely get the ding fixed before turning it in. I would consider buying a used SUV. Right now, you can find a late model SUV for well under book value on jsut about any used car lot. With gas prices likely to stay in the $3-$4.50 range for the foreeeable future, why get bogged down in another lease or long term financing in a vehivle that will be very difficult to unload? Take a look around your area and see how many people are trying to unload their SUV. Buy one that is 2-3 years old for about 50% of the MSRP.

    This car market and credit crisis is not the time to buy big not unless you can truly afford it.
  • dwynnedwynne Member Posts: 4,018
    Probably WAY too early to be worrying about it, since so much can change between now and March.

    In any case, who is your lease with? Most of the captive lease banks have "forgiveness" built into the turn in so you don't get hit with fees for dents and dings. Most 3rd party banks do not. When I had a BMW they mailed you a plastic gauge thing to measure scratches, dents, dings, interior holes, etc. If there were no more than x per panel or car and they were all smaller than the gauge measured for that item then no charge. Honda probably has the BEST forgiveness with up to $500 per "thing" and up to $1,500 per vehicle in forgiveness. Small paint chips and little dings are considered normal wear and tear and don't even count towards the money. I turned in my 05 S2000 with low tread on the rear tires (less then 4/32") and was charged nothing - even though new rubber from TireRack would have been $203 EACH plus shipping, mounting, and balancing.

    In any case, get a pre lease end inspection done and they will tell you what is "wrong" and how much, if any, they will charge you for turning it in with that defect. Then you have the option of getting it fixed at your expense or paying them after you turn it in. Be sure to point out the ding you know about so it will be noted and perhaps not charged for.

    I agree with your other reply, you might want to seriously look at a used SUV when the time comes if this trend continues. Folks are dumping them at big losses and car lots are overflowing with them - a super time to buy. That said, by the time March gets here the makers may be giving them away with huge incentives and cheap load and lease deals. Captive lease banks have residuals that do not have to echo real world expected prices - they can have low rates and high residuals to make low lease payments and move products. My wife's Pilot is leased at 0.31% effective finance rate. Over the course of the 3 year lease the interest we will pay is less than $200 - total. Now that is a cheap lease :D . Get a deal like that, and I would probably not bother with a used SUV.

    Dennis
  • artuartu Member Posts: 7
    Whats the best way to find out if I'm getting a good deal by buying a Honda Pilot at the end of the lease? Its an EX with navi & leather with 60,000 miles. The bank lease has a $ 15,000 buy option in August '08. Is that price negotiable? I feel hesitant because of the uncertainty regarding the value of suvs given current gas prices. Any guidance would be appreciated Art
  • volvomaxvolvomax Member Posts: 5,238
    What bank is the lease with?
    What year is the Pilot?
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