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- The car is under mileage (25k) and in outstanding condition
- Continually maintained & regularly driven
- The buyout amount is $7k
For my western PA zip code:
- NADA value: Avg Trade-in: $8,025; Avg Retail $9,775
- Edmunds TMV: $8,200; $9,510; $10,923
- Kelly Blue Book: Trade: $6,475; Private party: $8,270
I've read that I should try and negotiate the price with my lending institution, and indeed, they even advertise that they "may be able to offer [me] a savings of $1,000 or more off the NADA Retail value!*" Since my buyout is less than that, that isn't ostensibly a deal, but hopefully it at least indicates a desire on their part to negotiate? If so, what the heck do I offer?
I've seen it's not a good idea to tell them you're over mileage, is the same also true of being well under mileage?
I saw a few comments with extended warranty offers, but my financing isn't through Toyota; would that be the only way to get such an offer?
I feel fairly good about buying it at 7k, but I guess there's no reason not to ask for a better price if it's possible to get it! Again, any tips or advice appreciated; I've read the articles on this site, but most seem to apply to over-mileage vehicles.
2) If this is not TFS, but a private bank, it raises the likelihood that they will bargain on the buyout price.. You need to speak to a "regional manager" or someone that has the power to make decisions...
3) The time to call is in May.. about six weeks before your lease is up.. that way they have current auction reports, and can judge what they will receive for the car..
4) Not knowing the trim level or options on your Corolla, it is hard to get a good read on the price.. but, just about any '01 Corolla with 25K miles in good shape is worth $7K.. I doubt you can go wrong at that price..
And, you are right.. nothing lost by trying to get it cheaper!!
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Rarely happens in the real-world, though..
Usually, paying the sales tax when you buy the car out will eat up any profits, if you happen to be "right side up".
I've done five leases.. Only once has the car been worth the residual at lease end... One other time, the residual was less than I would pay at the dealer for a similar car, but still not worth it to me..
The key to a really good lease payment is a residual that is too optimistic, which pretty much precludes it from being a good buyout deal..
If the residual is lower than actual value at lease end, you got a bad lease deal..
regards,
kyfdx
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Also, from examining various lease deals via internet, I have yet to find one where the residual is at or above what I estimate to be market value. They are always less, only question is by how much. Are you aware of any model that has high residuals?
I should clarify that I use strictly a non-scientific, personal anecdotal approach to estimate market value. My experience is that if you keep a car for 3+ years, assuming no accident or any other catastrophy, the car would average out at a depreciation rate of around 8 - 9 % per year (if you were to sell it privately). Whereas if I take the difference between MSRP and residual on posted lease deals, the best I have come across is a BMW X3 at less than 12% per annum. Even most of the popular Honda and Toyota models seem to come in at around 13 - 15% per annum. This leads me to conclude that the manufacturer would have to miscalculate big-time to offer a residual higher than probable market value at lease-end. I have not investigated lease deals for the really high-end stuff like MB S-Class, 7-Series Bimmer, Porsches, etc. So perhaps residuals are higher on those models?
Personally I may be willing to accept a 2 - 3% difference as a cost of reduced stress from actual ownership, but I would have to think hard about a spread of more than 5% per annum. I suppose if it enables me to lease a car I normally would not be able to afford to buy, then maybe it would be an option, but the prudent side of me precludes going down that road anyway.
Pontiac Vibe, base, 5sp, pwr package.
$12k residual after 24 months.
Won't be worth $10 in the real world.
-Mathias
Actually I've never checked out American cars --- maybe the American manufacturers all have over-inflated optimism for the market value of their cars.
Depending on the model, you'll see Hondas, BMWs, and Lexi in this range...
Many people will look in the paper and see '02 Honda Accords with asking prices of $17K and think that their '02 Accord LX is a great buy at only $12K residual.. Not taking into account that the one in the paper is the V6 with leather and navigation, and that the real-world selling price is probably going to be under $15K...
Some residuals may be less than what you can buy the car at the dealer, but in my experience, they are usually overly optimistic... which is what makes for a good lease deal...
American cars usually get their low lease payments from cash incentives on the front end.. Their residuals are usually low, but with good reason.. I don't follow them much, because I don't desire any of their cars..
The Vibe would be an exception, because it is really a re-badged Toyota...
regards,
kyfdx
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I want to know whether it's worthwhile to try and flip a profit when my lease ends since my mileage is quite low, and if so, how exactly to go about it. Here are the details:
2001 Acura 3.2 CL, 30,000 miles, clean condition, gold color, zip code 91604. Lease residual: $14,515.
Now here's my first point of confusion. According to Edmunds, the private party price should be about $14,983. But running the same query on Kelly's (using "Good" condition, which seems to be the equivalent of "Clean") brings a private party price of $15,905. Why such a big disparity?
I've got a bunch more questions but I'll wait to hear your initial thoughts.
jginbama, "Real-World Trade-In Values" #25282, 28 Feb 2005 11:02 am
I think you'll find that flipping your car will not make you any money..
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Just follow the template in red at the bottom of the discussion, and give him as much info as you can about the car..
regards,
kyfdx
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Has anyone gotten IFS to deal? Would love to know.
Thanks,
Dean Mixon
I leased a 02 Maxima, and now have less than 30 days left on the lease. The buyout is $14.5K + tax. Calling around to dealers, nobody offered more than $12.5 for the car. So to me, that's really what the vehicle is worth. The lease is thru SouthTrust, and when I spoke to them a month ago, they wouldn't deal.
The car is flawless, and I'm just under the mileage. Do you think the closer it comes to the end of the lease, the more SouthTrust will be willing to deal? I'm kind of hoping they take a firm stance, I'd really like to lease a new BMW, but the wife wants me to keep the Max if the price is right.
Terry.
I'd like to take it to a dealer and use it as a "trade-in" on a new Odyssey. Was told by a salesperson that it's no problem, they do this all the time, they will take it as a trade-in and credit me the difference between the trade-in price they offer (obviously to be negotiated) and the buyout price.
Any special tricks to watch out for? Any fees, taxes, etc that would eat up my $2,200?
Sounds almost too easy ... if true, I would just have to post over on the "trade-in values" board to get a good estimate from Terry, and I'd be all set.
Thanks!
If you want to trade now, you have to call the bank for the current payoff.. they'll want more than what the residual value is, in August..
In theory, this will work.... but in practice, it usually doesn't.. Actual trade-in values are notoriously lower than what is published on Edmunds or KBB, etc..
It could happen... but, I doubt it.. And, I also have an '02 CR-V EX..
regards,
kyfdx
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Still, it's frustrating, because '02 CRVs with low mileage in my area are listed on AutoTrader at $18,000 ... and up (from dealers). Even if they take $16k for them, that's $3k above my buyout price. Seems like a lot of $ to leave on the table!
If you could sell it yourself for what they do, then you would be set.. But, they provide financing, etc, that you just can't do.. (Selling a used car for $16K is a tough market). Plus, if you buy it to re-sell yourself, then you have to pay sales tax on it first, eating up any potential profit..
Don't be frustrated... you rented a car for a specified period of time for a reasonable price.. You really aren't leaving any money on the table... it just appears that way... unless you want to be in the car business..
regards,
kyfdx
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Now just have to decide whether to get another lease on the Odyssey, or buy it this time. Better get over to the lease v. buy boards ...
Cheers,
darthken
These CRV's still do some stupid money ... trade side, the 05 SE's are doing the super tall $23's with short miles - and the super clean 02 Ex's with miles in the 35ish range are seeing the super tall $14's low/mid $15's .. I'm guessing, but they probably will be doing the light side of $14 come fall ..... at least you have something to think about .... good vehicles.!
Terry.
And, I have a long memory... I was basing my estimate on one of yours from 4 months ago...
rroyce10, "Real-World Trade-In Values" #24309, 12 Jan 2005 6:45 pm
Also, my point wasn't that the buyout price wouldn't be a good deal.. Just that it would be hard for an individual to make money on the car, taking into account selling expenses and taxes... or even trading it, for that matter.. He says he doesn't want the car... I doubt he'll make money trying to flip it.
I learned everything I know from you....
regards,
kyfdx
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I knew that would get a rise out of ya, I just didn't know how long it would take, and yes I do remember your CRV ...
I may forget birthdays, paperwork, dentist appointments, where my keys are, but I never forget a vehicle ... ......... it depends on the dealer (and the time of the year) but if they will show it as a trade it might work out for him ....
Terry.
I have a lease on a 2002 Ford Winstar that comes due on June 8, 2005. I have a relative that is interested in purchasing this vehicle. Generally, what is the process and what are the fees that are involved. Also, would you know if there's any negotiation room in the contracted buy-out price with Ford?
Many thanks.
MY DILEMMA: SHOULD I PURCHASE MY VEHICLE OR LEASE ANOTHER VEHICLE CONSIDERING MY CURRENT SITUATION (HUSBAND BEING OUT OF WORK) AND THE CAR'S CONDITION (WILL IT BE OF MUCH VALUE ONCE I PAY IT OFF AND TRY TO RESELL)?????????? PLEASE HELP!!
One nice thing about leasing (as you will shortly find out) is that accidents don't cost you, if the repairs are done correctly. You turn it in and walk away. However, they can be a big hit when you sell a used car (and should work in your favor if you bu one).
IMO, I wouldn't touch your car if it was for sale, since it has effectively had 3 serious accidents. Plenty of clean off-lease Acords out there that haven't been smacked.
Since Accords tend to have a pretty high residual, I highly doubt the buy-out price is going to work in your favor, especially considering that the value has been diminished quite a bit by the accidents.
You need to figure out your finances, but I would say either get a different used car (maybe something cheaper than an Accord), or lease a new one (there are some great LX deals right now, if you can live without some of the goodies). At least the lease will give you cost certainty (unlike a used car), but you will be stuck with it if your financial situation goes downhill.
Plus, even a used car will require some amount of $$ down.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
all help appreciated:
how to negotiate lower purchase price??
when and where to fix the ( 1400 damage- scrape to passenger front fender)??
any other input! thank you ??
If it's a 4wd and depending on where you live - and if it's semi-clean, and if it only needs $700/$900 worth of "stuff" ... then they will probably see $16,5/$17,5 range at the block ...... try (in a nice way) to negotiate with a decision maker and see what they will do ...
I've seen clean 00 125K 4wd RX300's do the high $10's, low $11's .... they're stronger than the 101st Airborne in a fire fight .......
Terry
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Real World Trade-In Values
Use the template at the bottom of the page, and give lots of details..
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Audi Financial says that I have to officially buy the car first (even if it's with their money) and then "sell" them the car myself (basically a title transfer). The catch is that my parents need to finance the purchase and I do not have the luxury of possessing gobs of money to act as their lender. I heard from someone that other companies will let the lessee sell the car to another party (even non-family), transfer the title, etc. w/o a problem. Has anyone else heard of this? Can I get Audi to do this?
The other wrinkle is that the car is currently registered in NY (where I used to live before moving to CA) but I am keeping it now at my parents' house in MA. Should I bother transfering the registration, insurance and stuff to MA in preparation for this transaction? I'd prefer to avoid paying a bunch of different fees 2X if I can help it.
These are not cheap cars to maintain, and as soon as something silly like the automatic climate control computer goes, they will be very sorry.
It's still going to be a $20 car I'm guessing -- you didn't give any specifics -- and your folks would be much better off spending that kinda money on a new car, with a warranty that lasts (hopefully) until it's paid off. Camry or Accord comes to mind... maybe a loaded-up Corolla... nice car, same size. Mazda3?
Retirees on a fixed income have no business buying 3-year-old German near-luxos, IMO.
I don't mean any disrespect, but if you think it over, you may see I have a point. You just enjoyed the three best years of that car's life...
-Mathias
He hit the nail on the head, though.. This isn't the kind of car you should buy as a retiree... if you don't have the resources to pay for it upfront.. at least temporarily...
Nothing wrong with getting a loan for it, if that helps you budget... But, if they don't have $20K cash, and they are retired... definitely the wrong car..
If you decide to go through with this hare-brained scheme.. ( )... then ask the dealer where you are acquiring your next car to assist you... You can trade in the Audi to the dealer, and he can then sell it to your parents... Most dealers will do this for a few hundred over their costs..... (and nothing illegal or unethical about it).
regards,
kyfdx
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Audi's are nice vehicles .. as a matter of fact my g/f is driving an A8 right now - "but" when she rings up $3/$4,000 miles on that dude I can take her out of it and put her into something else and sell it with the balance of the factory warranty ..... in the meantime, if the air conditioner coughs up a lung or there is an electrical problem with your parents behind the wheel, then your going to look like an assassin and a enemy of the family .....
Cars like Bimmers Benz's and Audi's can be Veeeery expensive just for "standard" repairs and lets not forget the "k" service .. this doesn't make them bad, it just makes them expensive and not for the "light" of heart (or pocket book) ..... lots of nice vehicles on the road (except Hyun/Kia) so let them look around and get some idea's ...
Terry
I'm a little surprised b/c I thought audi's were better built than what you guys are suggesting. Or at least that there was fairly low risk of serious/expensive problems once the 4yr warranty ran out.
Just wanted my folks to have a nice car to tool around in, but will rethink that.
Thanks again