Did you recently take on (or consider) a loan of 84 months or longer on a car purchase?
A reporter would like to speak with you about your experience; please reach out to PR@Edmunds.com by 7/22 for details.
Options

Purchasing at the End of Your Lease

191012141520

Comments

  • kyfdxkyfdx Moderator Posts: 265,514
    I've never known Honda Finance to negotiate..

    Plus, even for a base 2WD model, the CR-V holds it's value better than almost any other vehicle.. $12K doesn't sound like a bad deal.. I traded in my '02 CRV EX AWD this summer and received $9K from the dealer.... with 106K miles!

    It never hurts to ask... also, take a look at what your model is selling for at the local dealerships...

    Good luck!

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • TekOneTekOne Member Posts: 1
    My friend has Rx 330 2005 going to be end of lease on mid of Feb. I want to buyout on end of lease. His car has 31k miles, good condition, but it had mild accident of back bumper and it has been fixed. Now, should my friend has better chance to call LFS for lowest buyout price or should I do it? The Trade in Value about 18- 19K, but I want to offer 15-16k since it has been accident. Please advice.
  • sebring95sebring95 Member Posts: 3,241
    Toyota/Lexus finance does not negotiate on the lease buy-out. I'm guessing they're insured against the residual. I've been through a couple buy-outs with them and talked to several folks up the chain of command and they claim it doesn't happen. I have also never found anyone on a forum that successfully negotiated with them.

    In most states, they require you go through an auto dealer which is typically a PITA, but actually might benefit you. Some other leasing companies will only sell directly to the lessee, which could cost a lot more depending on your states sales tax (friend pays tax on buy out, then you have to pay sales tax to buy it from them).
  • boozoo99boozoo99 Member Posts: 5
    Hi,

    I have an 06 Audi A4 with right under 22k miles that is up for lease at the end of February. The buy out is $18k. I love the car and love having a small car but don't necessarily need it. i am wondering what I can see in regards to negotiating on the buyout price, the fees associated with turning it in, the warranty if I bought it and whether it would be smart to buy it out or give it up and go another option if I want to keep a small car. The car is in great condition.

    Thanks for your feed back. I could also buy it out and sell it if you think that would be beneficial.
  • crematercremater Member Posts: 3
    hello a little help here I purchased my lease recently for 11788 + TT&L totaling 12473.20 GMAC has now sent me a letter stating that I now owe $2275 minus my secuity deposit for a total of $1975.00 for which they say is 10000 miles over my allowed miles for the lease my gripe is that I bought the lease out and the mileage should not even be an issue they are trying to tell methat I did not buy the lease out but the dealer bought the lease so I am being charged for mileage how can this be when I paid the dealer the residual and taxes I know GMAC is in a bad bind but it seems like a bunch of BS to try to make a person pay more money when it is not owed. the dealer has stated I have to work it out with GMAC not them what can I do to file a complaint or fight it I am getting no where with either party THANKS FOR ANY INFO AND I WOULD HIGHLY RECCOMEND NOT DOING BUSINESS WITH GMAC. iF IT WERE NOT FOR MY SON i WOULD NOT HAVE BOUGHT THE LEASE OUT I DID AND AM PAYING FOR IT I AM NOW PERSONALLY DRIVING AS FORD SO LONG GMAC
  • sebring95sebring95 Member Posts: 3,241
    I think your claim might be with the dealer. It sounds like they ran it as a lease return and then bought it from GMAC. They may have made a buck on it because GMAC could have discounted the truck below the residual (used an auction price). I know the GMAC lease I had back in '04 had the residual, and it also had a different price if a GM dealer was buying it. Did you sign any paperwork showing it as a lease return? You shouldn't have if you were buying it out
  • volvomaxvolvomax Member Posts: 5,238
    Assuming that it is the 2.0T, wholesale is in the $13-14,000 range.

    So, $18k is about retail.

    Depending on who the lender is, they may negotiate the buyout.
    End of term fees, however are never negotiable.
  • volvomaxvolvomax Member Posts: 5,238
    I think Sebring is right here.
    GMAC thinks you returned the car and the dealer bought it.
    Under those conditions, you would owe the over mileage.

    I think your deaer screwed up the deal somehow and now doesn't want to make it right.
    I would have a sit down w/ the GM of the dealership and get this straightend out.
  • CAT1023CAT1023 Member Posts: 2
    I have an 2005 Chevy Cobalt with about 33,500 miles on it. I need to turn the car in by 3/18/09. I am buying another GM vehicle, this week and the Cobalt was not worked into the deal. I plan to just turn my car back in when I pick up the new one.

    HOWEVER, there is damage on my car. I got an estimate from the dealer about 1 year ago for $2,500 to repair. The Chevy dealer is telling me now that if I turn it in I will get a bill for $500-$800???

    Anyway, I am wondering am I really gonna get hit with a bill of $4000 or something crazy? Is the dealer just telling me a lower number cause they want to sell me a car?

    Help!!! What should I do?
  • crematercremater Member Posts: 3
    I would be careful or ask another dealer in times like this would not trust anyone I bought out me 2005 chevy colorado lease and the way the dealer did the paperwork GMAC is now saying I owe $2000.00 for overage miles when I bought out the lease. just because of the way the dealer worded the paperwok
  • volvomaxvolvomax Member Posts: 5,238
    Does GMAC do pre-term inspections?
    If so,get one done. This will tell you exactly what GMAC will charge you.
    If not, you probably should just get the car fixed before you turn it in.
    A dealers estimate holds no water w/ the finance co.
  • gdclnfngdclnfn Member Posts: 3
    skopiec, I am also coming up on my lease end on an xc90 and I am finding that my residual / buyout price is much higher than the auction/wholesale price. As Huntington is also my leasing company, please keep us posted on your negotiations.

    Regards,
    Rick
  • Kirstie_HKirstie_H Administrator Posts: 11,242
    Hi Rick,
    The person you responded to posted over a year ago (Jan 2008), so I would be surprised to hear from him/her, as negotiations are likely to have concluded for his/her deal.

    MODERATOR /ADMINISTRATOR
    Find me at kirstie_h@edmunds.com - or send a private message by clicking on my name.
    2015 Kia Soul, 2021 Subaru Forester (kirstie_h), 2024 GMC Sierra 1500 (mr. kirstie_h)
    Review your vehicle

  • CAT1023CAT1023 Member Posts: 2
    OK I took my chances and turned in my 2005 cobalt to the hummer dealer which is what I bought and H3 on the last day of January. Since it was also a GM I was able to be a part of the pull ahead program which gave me 2 payments. I also was paid 1 month ahead. My dealer 2 years ago quoted me $2500 to fix the damage on the car. GM gave me a bill for About $1200 but once the pull ahead and payments were credited I ended up owing about $632. WOW! I was shocked when I opened the bill, and VERY VERY happy. Plus, I got a CRAZY deal on the H3 which I'm sure you can imagine which GM's status right now. It all worked for me....Good luck to the rest of you:-)
  • volvomaxvolvomax Member Posts: 5,238
    Incentives can be a beautiful thing. :)
  • worrworr Member Posts: 45
    My contract buy out price is $15,400 on a 06 Altima 3.5SL with 36K miles silver and in excellent condition which according to NADA is priced at $12,350 $13,600 $14,625 for trade in. I'm assumign that is the number to compare with...trade in value not retail.

    Anyhow...my lease is up in a couple months...and the dealer is offering to trade in my lease and take over my payments for a new car purchase. There are some nice deals on new nissan altimas this weekend.

    Are they able to negotiate my residule price? If so, that means a win win...and I'd be happy to let them get a deal on a used car. I just don't want any penalties, fees, taxes carried over to a new car purchase if I turn this over to them.

    The car is in the upper midwest.

    Thanks for any help.
  • volvomaxvolvomax Member Posts: 5,238
    Most likely, your dealer is just going to lump your remaining payments into your new deal. Or they may use a loyalty incentive, if applicable to make your payments.
    It is very rare that a dealer can get your amount owed on a lease reduced.
  • worrworr Member Posts: 45
    You were right.

    But with the $1,000 extra rebate for President's day it would have been a wash.

    Auction prices are way below the residual price right now. Maybe Nissan is willing to sell for below that...maybe not.
  • jbaek74jbaek74 Member Posts: 9
    Volvomax,

    You helped me with some lease-end questions couple months ago. I'm now about to negotiate a buyout price with the leasing company.

    Can you please let me know the latest auction prices you have available for a 2004 ES330 with about 40,000 miles. I'd like to use this info as a reference to get a fair and reasonable purchase price.

    Thank you sir~
  • sebring95sebring95 Member Posts: 3,241
    Is this with Toyota/Lexus finance? If so, please let us know how the negotiations go. To date, I've yet to hear of getting any answer besides a resounding "NO". I've tried through multiple leases as well with no success.
  • volvomaxvolvomax Member Posts: 5,238
    Not too many 40k 04 ES330's out there.
    Figure the car would trade in the $11-12k range.
    Lease co's don't always go by trade value when they negotiate a buyout.
  • jbaek74jbaek74 Member Posts: 9
    No - it's with Wells.
  • jbaek74jbaek74 Member Posts: 9
    Thanks again for your help volvomax!

    Given the low miles, I think I'm going to offer them $12.5k and see if that works out.
    Anybody have any other tips on negotiating the best possible price?
  • sebring95sebring95 Member Posts: 3,241
    I wouldn't mention the miles if you could help it.
  • volvomaxvolvomax Member Posts: 5,238
    I wouldn't mention the miles if you could help it.

    That is usually the first question.
  • jbaek74jbaek74 Member Posts: 9
    Yup, that was the first question..."miles??"

    To my dissapointment, they said that my offer of $12.5k was not acceptable.
    Their best possible price was $14k. When I pushed for a lower price, I was told to call back next week to see if auctions over the weekend could enable them to offer me a better deal. Do they have some kind of a formula based on the auction prices to determine the minimum that they'll take for a lease-end vehicle?

    Do you guys think $14k is a reasonable price for this car?
  • sebring95sebring95 Member Posts: 3,241
    How much longer is left on the lease? The closer you get to turn-in the more likely they'll be to negotiate. For curiosity sake, what is the stated residual in the contract? While residuals are based on wholesale value, I don't think $14k sounds like a terrible deal if you like the car and want to keep it. Less is always better, but you do have to take into consideration the fair-market value if you were to try and buy an identical car.
  • volvomaxvolvomax Member Posts: 5,238
    As I have stated before, lease co's don't sell cars for wholesale.
    If the car would trade for $12k, then $14k is reasonable as a buy price.
  • sebring95sebring95 Member Posts: 3,241
    Why wouldn't they negotiate to wholesale? That's what the residual was supposed to be predicting in the first place. And a bank like Wells will be into more expenses to take the car in and resell it. Unless they have a retail lot somewhere we don't know about.
  • volvomaxvolvomax Member Posts: 5,238
    And a bank like Wells will be into more expenses to take the car in and resell it

    Thats what the disposition fee is for.

    Banks are funny about things like that. They get a price in their fuzzy little heads and they won't get of it.
    I've seen VFNA no sale a car at the auction over $250.
    I guess they think it will be worth MORE at the next sale. :sick:
  • jayessjayess Member Posts: 59
    Trying to get an idea of what to consider a reasonable profit margin for a dealer to live with. My '07 Sonata lease expires 1 May, and we're interested in buying it. We'll probably be in the vicinity of 8600 miles below the total mileage allowance. The kbb trade-in value is about $1500 below and the pp $440 greater than the buyout in the documentation. In PA the buyout has to be done via the dealer which I knew but the Hyundai CS rep 'realized' during the pre lease-end phone call when he found he couldn't give me a price. I just said we hadn't decided yet.
    I'd much prefer to be closer to trade value but waiting until 2-3 weeks prior to call and make an offer. From their website they have over 100 '09's Sonatas and a dozen or so used - mostly '08's on the lot. I'm hoping they'd rather not have to add, spiffy up, advertise and try to sell another one. Is a few hundred over trade in reasonable ? Any input would be welcome!
  • sf1210sf1210 Member Posts: 3
    i am interested in purchasing my car now before my lease is over. i got messed up in a very bad lease and now i just want to buy it out and not have the pressure of going over the miles. i leased with Chase Auto finance and they told me the buy out price is never negotiable. i find that hard to believe. can anyone guide me through the steps . . . if indeed it is possible. thanks.
  • kyfdxkyfdx Moderator Posts: 265,514
    If you want to buy it early, it's doubtful they will negotiate.. especially, if it's very early in the lease..

    They won't be in any hurry to take a loss on a car that you are committed to paying lease payments on... They have no motivation.

    regards,
    kyfdx

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • sf1210sf1210 Member Posts: 3
    thank you for your help. it's not early into the lease, it has been 3 years already, but i have another 14 months to go. i don't see it as the company taking a loss since i owe them over $5000 to finish the lease, and i would offer considerably more than that (12 - 13K), but less than what they are asking for the buyout ($16000). my issue is i cannot get to the right person at chase to even know if i can negotiate. i am new to all of this but i am trying to educate myself so i am never in this mess again.

    thanks again for responding.
  • volvomaxvolvomax Member Posts: 5,238
    Frankly, it's still too soon for Chase to want to take a loss on your car.
    As someone said, they simply have no motivation.
    I'd wait if I were you and see what they say next year.
  • sf1210sf1210 Member Posts: 3
    thanks for the advice.
  • commprocommpro Member Posts: 13
    Hi there,

    My father has a Honda Accord that is at the end of its lease. The contract he signed with Honda stated a buy out value of just over $12K but last week he got a letter from Honda stating he could buy the car for $16.5K.

    I've checked the Canada Blackbook Value and the trade-in value is about $9.5K and the resale value just over $11K.

    My questions are: Can my father neogtiate? Why would the contract and offer letter vary by $4.5K? What advice can I give him to help him from getting taken advantage of?

    I've told him if he want to buy the car to make them an offer based on what the vehicle was worth minus the cash he's paid (exclusive of interest) and to be prepared to throw them the keys if they say no. Am I off base?
  • grandtotalgrandtotal Member Posts: 1,207
    Why would the contract and offer letter vary by $4.5K?

    That is a very good question. I don't think you'll get the answer on this forum. I suggest you call Honda Canada and ask them to explain.
  • volvomaxvolvomax Member Posts: 5,238
    The only things that Honda could add to the residual value is a buy fee and any applicable sales tax.
    I'd contact Honda and get a breakdown of that $16,500
  • worrworr Member Posts: 45
    The answer I got from NMAC was "not authorized to negotiate" and that was that.

    So it goes back. Seems odd Nissan wants to turn around and auction the vehicle for 2-3k less.
  • jjc42482jjc42482 Member Posts: 1
    I am in very difficult situation. My current lease is set to expire at the end of April. I am not sure whether to buyout my lease or lease another car. Also, I am not sure whether or not Nissan offers financing on leased car buyouts. I have spoke with several banks and none of them will refinance my car. Also, I am concerned if I buy the car that the maintanence and repairs will be costly. But if I lease another car, I will be going over the mileage because at the current time I work 40 miles away from my home. Buying a new car seems even more farfetched because the monthly payments are very high. Does anyone have any suggestions?
  • volvomaxvolvomax Member Posts: 5,238
    If your lease is thru NMAC chances are they will offer you a way to finance the buyout.
    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.
  • toenlo36toenlo36 Member Posts: 8
    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.
  • rayd8rayd8 Member Posts: 5
    I wish Toyota was like that. I have 2 months left on my lease and so far I havent heard one succesful story regarding Toyota Financial Services negotiating residuals.
  • jayessjayess Member Posts: 59
    Hyundai's response "we don't negotiate" but since we like our 07 with pp 02 and just shy of 30k miles we're planning to buy out the lease at the end of this month. Did receive a couple of lease-end enticements - 24 mo lease on an 09 Sonata base model for 219+2499 down or 0%/60 mo on a Sana Fe. Total out of pocket - lease payments +buyout is still reasonable as to what they were selling for new, we have an 08 Sonata plus we just picked up an 06 elantra for my daughter to use at school. So buyout makes the most fiscal sense. Was hoping to be able to negotiate down a few pesos but I'm satisfied just the same.
  • toenlo36toenlo36 Member Posts: 8
    I couldn't help myself, I beat them down another $500 to $16,400 + $45 DMV fees...I love working these guys. :)
  • friarfunkfriarfunk Member Posts: 19
    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?
  • volvomaxvolvomax Member Posts: 5,238
    No, Honda can't charge you more than the buyout price for your car.
    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.
  • qbrozenqbrozen Member Posts: 33,736
    I really should have bought this thing at the outset

    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.

    '11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S

  • jayessjayess Member Posts: 59
    Unless you are able to negotiate a lower buyout figure, what's listed in the paperwork is it. They can't charge you more than what they agreed to sell it for at the end of the lease contract.
    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.
Sign In or Register to comment.