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Purchasing at the End of Your Lease

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Comments

  • I have a leased Lexus that has reached the end. The buy out price of $22k is considerably less than current market value of 30k so I am buying the vehicle. However, the dealer is loading my contract up with a $599.00 dealer fee. Does this sound legit? In FL, you have to go to the dealer for the buy-out. What other charges should I be aware of.

    Thanks

    Libby
  • sebring95sebring95 Posts: 3,241
    I dunno, but I'm guessing the law in FL reads "the dealer may charge up to $600 to cover the "expenses" of processing a lease buy-out". :P Be sure to tip your legislators....
  • kyfdxkyfdx Posts: 133,933
    Yeah.. FL laws seem to be there to increase dealer profit..

    But, if your contract states that you can buy your car for a certain amount, it would at least be worth a call to Lexus Finance. It seems if there are extra charges, then that would be a violation of the contract (no, not legal advice, I'm not an attorney, etc, etc, etc.).

    It would be worth complaining about... the squeaky wheel... and all that.

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • qbrozenqbrozen Posts: 26,315
    why are you going through the dealer??

    you should be buying it directly from the leasing company.

    you said that, in FL, you have to go through a dealer ... how exactly does that work? I mean, who is to prevent you from sending a check to the leasing company? What happens if you trade the car before lease-end? The dealer buying your car on trade doesn't have to go through a lexus dealer to buy it, I'm sure.

    '10 Equinox LS; '08 Charger R/T Daytona; '67 Coronet R/T; '14 Town&Country Limited; '18 BMW X2. 49-car history and counting!

  • According to the lease company, Lexus Financial, I must go to a Lexus dealer to purchase the vehicle. I cannot send a check to the lease company because of FL laws. The dealer says that they must charge a fee because they basically have to buy it from the lease company and then sell it back to me--thus they charge the "dealer processing fee."

    I called a different Lexus Dealer and they charge $489.50 plus $50.00 for transferring title. So it is a bit less, but I am steamed that people in other states can buy it directly from the lease company and don't have to pay this extra fee!!!!!
  • wale_bate1wale_bate1 Posts: 1,986
    That's annoying as hell. Trumps New Jersey's no-self-serve-gas law IMO!

    When I bought out my Lexus, the rep at the credit union called Toyota for the amount, and cut and sent the check. I signed the stub of the check and the odometer disclosure, and that was that. No fees, no paper, no nothin'.

    Screwy law says I.
  • qbrozenqbrozen Posts: 26,315
    I feel sorry for you floridians. first i learn that you can only buy warranties at the dealer in state, and now this. well, you can take comfort in the fact that i probably pay WAY more property tax here in NJ. ;)

    '10 Equinox LS; '08 Charger R/T Daytona; '67 Coronet R/T; '14 Town&Country Limited; '18 BMW X2. 49-car history and counting!

  • joel0622joel0622 Posts: 3,302
    32LOCK, there are 0% for 60 months on the F150's right now. Thats the way to go if you know you wan to keep th truck long term.
  • jazzcat3jazzcat3 Posts: 7
    Hi All,

    When I was young and stupid, in 2001, I got a big-dollar, long-term lease on a nice high-end American midzize car. As many young-and-stupids do, I went way over miles and let's say I didn't take care of it as I should. The lease is up in a month.

    However, I like the car, so I called for a buyout. The buyout is acceptable to me and on the low side of what I could buy a similar car for today. Also, I've been approved by my bank to finance the buyout. So I asked the leasing company (National City, used to be Provident) to send me papers to start the transaction.

    I've run into a minor snag. As part of the transaction they asked me the mileage, and I gave them an estimate (as I haven't driven the car in a year due to being over mileage). However, going out to the garage yesterday I noted that the mileage is about 7k more than I told them. I told them that "my best guess is X but I don't know for sure". (X is in the high 60's, it's actually at 77k) On the Bill of Sale, in no uncertain terms, they require me to sign the odometer statement (which says the number I told them) and they say that the mileage must match what I told them or it "CAN RESULT IN REJECTION OF THE PURCHASE OFFER AND CANCELLATION OF THE SALE TRANSACTION".

    What do I do? I can a) Just modify the number, get a loan check from my bank, and send it in (and risk rejection by them); or b) Call them and tell them about the discrepancy, to get new paperwork, and risk being put over a barrel and having them increase the price. I noted that in the original contract, the residual was $8,900, now their sale price is substantially below that. Or I could turn it in and have to find $4k somewhere for over-mileage fees and have nothing in return.

    Why do they need to know the mileage on a buyout?

    Cheers,
    jc3
  • kyfdxkyfdx Posts: 133,933
    If they knew they had you over a barrel on over-mileage charges, they would be less likely to negotiate a low purchase price.

    So... that is the reason.. Or.. it could be that they just don't want to be associated with any potential mileage fraud and that paperwork is to cover their butt.

    Now... will they change the deal when they find out you are liable for an extra $1400 or so? I'm guessing not.. It just depends on if the deal is in the hands of a clerk, or the guy that makes the big decisions...

    Good luck..

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • jazzcat3jazzcat3 Posts: 7
    That's what's odd - at first I anticipated having to deal with them to get the buyout price down to where I wanted it, and I find out that it's already low. They discounted the buyout without bargaining by me. So half of me is afraid that if I tell them the real mileage, they'll jack up the buyout price.

    So the question remains, if I warn them ahead of time, that gives them time to play with the numbers; if I just send in a check, they'd be more likely to not hassle with re-doing the paperwork... or so I'd think.

    If I want to be a prick about it... the letter with the warning does not specify that it is part of the sales contract (Bill of Sale); the Bill of Sale itself, signed by the bank, does not mention that I cannot change the odometer reading. It just says that I acknowledge receipt of the odometer reading. But I'm hoping that me being a prick doesn't cause me to have to sue them to agree to the deal...

    Another interesting to note thing is, during the conversation, I told her "it's about 74,000 miles", and she did not say, "we need exact mileage to proceed, call me when you get that" - she just indicated an exact mileage of 74k.
  • kyfdxkyfdx Posts: 133,933
    Odometer statements are a big deal... When you take the bill of sale to the DMV to register the car, everything better match..

    I wouldn't take a chance on this... If they gave you that price without any bargaining on your part, then they likely won't change it..

    You don't want to falsify an odometer statement.. that is likely to be all they are concerned about.

    regards,
    kyfdx

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • joel0622joel0622 Posts: 3,302
    I would bet they are a lot more worried about you not buying it then you are buying it. Every lease end car they can get off there hands through customer buy out is money in the bank to them. No turn ins, no inspections, no reconditioning,no auction.

    Call them up and say hey, my ride has 72K on it. Are you going to knock anymore off the price because it has more miles then we thought?
  • jazzcat3jazzcat3 Posts: 7
    Heh, apparently they aren't so concerned - they bumped up the sale price by $800 when I told them the real mileage. Hmmm.... I'm waiting on a call back from a manager.
  • joel0622joel0622 Posts: 3,302
    Does your contract state a lease end value on it? Was it a Closed End Lease or an Open End Lease. On a Ford lease it does not matter if you drive that puppy 135,000 miles, the buy out is the buy out as stated in the contract.
  • sebring95sebring95 Posts: 3,241
    Yes, but they're offering him LESS than the residual/buy-out on the contract. It's obvious they miscalculated the residual when writing this lease and they know they're going to get buried. So they're doing everything they can to cut their losses. This is why most banks have gotten out of the car leasing business.....they weren't good at it!
  • sf_rx8sf_rx8 Posts: 2
    I live in the bay area and have 3 months left on my lease that I need to end early.
    2005 Mazda RX-8, 9100 miles (24k allowed), excellent condition, regularly maintained
    $975 left in payments, buyout price is $16100
    My question is should I buy the car and then try to sell it? If I do that, who pays the sales tax, or will both parties have to? Or, should I just pay the remaining $975 and turn in the car?
  • audia8qaudia8q Posts: 3,138
    the law in FL reads "the dealer may charge up to $600 to cover the "expenses" of processing a lease buy-out". Be sure to tip your legislators....

    mmmmm lets think about this. The $600 is taxable so what legislator is going to roll back something that generates tax revenue from the rich? Pols assume that your "rich" because you drive a lexus. Remember, it was the legislators that wrote and passed the law.
  • I currently have a 2004 Pontiac Grand Am 4 cyl. that I took out a 4 year smartbuy on for 48000 miles. Payments go at $246 a month with a final baloon payment of $8,500.

    My problem is, I have 16 months left to go and I already have 52,000 miles. I called for a buyout and was told if turn the car in right now, it would cost me $3,700 plus the $800 in milage or I can buy it out at $11,600. To be honest I would like to turn it in and just get another one, and I have access to GM friends and family which would decrease my payment (does anyone know what the exact percentage of that is).

    What I'm torn between is the fact the the more I drive it the more the car is depreciating with milage, and if I average the milage that I am right now, is a 4 cyl grand am without ABS with 70k miles in 08 really going to be worth more than 5k?

    The question is Do I start looking now to drop out? I'm really not sure what to do.

    Thanks in Advance!
  • jazzcat3jazzcat3 Posts: 7
    Stripd,

    One of two things has happened here: either you underestimated how much you'd drive when you bought the car, or you had a life-changing circumstance that required you to drive more miles after you signed the contract.

    Either way, you have a choice: come up with the $4,200 and turn the car in, or refinance it at $11k, or take the hit when it comes time to turn it over in 16 months. You might have some luck if you have a GM discount (it might absorb some of that), but you'll be upside down in the new car loan.

    There is another alternative: buy a $1,000 car and put $1,000 into making sure it runs well. Taking a $2k hit now will save you money in the long run because you won't be running up the mileage on your Grand Am. As an addition, your car insurance might actually be cheaper, because with some policies and companies, the multi-car discount is greater than the cost of the additional policy.

    You would "like to turn it in and get another"? Oh well. Unfortunately your desires don't matter when you sign a contract. I would have loved to "turn it in and get another" to get out of the long-term, high-dollar lease I got when I was young and stupid. But I signed a contract, so I had to hold up my end of the deal. In my case it was either handing the car over along with a check for $4k (overmileage and damages) or buy it; since I don't have $4k lying around, the choice was to go to Joe's Loan Shark Inc. and get a 22% loan for the $4k (at $220 a month for 48 months) or buy the car for $8k (11% for 48 months, at $244 a month). I would have loved to get a Jeep Liberty instead, but I've been upside-down in some manner for 10 years and decided it had to stop.

    As a side note: If I had remained in the circumstances I was in when I signed that lease, I could have turned the car over for $0. However, my circumstances changed, and I was suddenly driving many more miles than before. I bought an old beater pickup truck and have put 80k miles on it. For the most part I parked the car for three years as there's no way I could afford the lease turn in if my car had the same number of miles.

    In any case, you need to be prepared to either fork over some cash now or later. Many dealers will be more than happy to bury you in a new car to solve this problem, but that will start a cycle where you're always paying way too much per month for something you owe too much on. I'm not one to judge how you want your financial house to be; but for myself, after I determined exactly how many tens of thousands of dollars I just handed over to banks because I was 3k upside down every time I traded in a car (three cars), I decided it had to stop. You can either continue to be upside down for a long time and hand tens of thousands of dollars to banks that you otherwise wouldn't, or you can swallow the bitter pill now and start saving the extra money.

    Did I want the Jeep Liberty, or did I want more money for retirement and security for my family? I really, really, really wanted the Liberty, but the cycle had to stop...
  • qbrozenqbrozen Posts: 26,315
    well, ya messed up. It happens. And it is the one big downfall of leasing (not knowing how many miles you will put on).

    Also ... they are charging you 20 cents per mile! If you lease again, try to get into a deal that charges 15 cents a mile. Just in case. It can make a big difference. For instance, if you drive this car till lease end, you'll wind up owing $6k in mileage. If you had a 15 cent/mile deal, that would only be $4k.

    OK ... SO ... what to do now? Personally, I'd come up with $4500 and dump it. The suggestion about buying a beater to put miles on isn't too far fetched (i've done it), but i don't think it works in your case. $2k for another car, plus insurance on both cars for the next 16 months, does not save you very much from that $4500.

    My advice? You can trade it anywhere and roll the $4500 into the next car, if you must. Come up with as much cash as possible, though. The dealer you trade at will take care of giving it back to Pontiac. If you lease, see the note above about mileage, but also get ALOT more miles. Even an 18k/yr lease is gonna leave you owing in the end, but at 15 cents per mile, that will hopefully only be a couple hundred bucks. OH, and anything over 3 years on a lease is too much, IMHO.

    '10 Equinox LS; '08 Charger R/T Daytona; '67 Coronet R/T; '14 Town&Country Limited; '18 BMW X2. 49-car history and counting!

  • tidestertidester Posts: 10,059
    it would cost me $3,700 plus the $800 in milage

    Apparently, you're locked into making all your remaining payments whether you keep the Grand Am or not. Since you're putting on additional miles at a rate of 1500 miles per month and paying 20 cents per mile, your additional mileage charge will be $4,800 at the end of 16 months. You would have to set aside $300 each month to cover that.

    It may be worth parking it and finding an alternative as has been suggested.

    tidester, host
    SUVs and Smart Shopper
  • tidestertidester Posts: 10,059
    (not knowing how many miles you will put on).

    The lease was set up for 12,000 miles per year. That should have been a tip off because it's at the very low end for real world mileage.

    tidester, host
    SUVs and Smart Shopper
  • What if I was to roll the remainder of it into a 07' torrent?

    Do you happen to know how much of a discount I would get with a GM friends and Family discount?
  • jazzcat3jazzcat3 Posts: 7
    May want to check on the insurance. With Allstate, my monthly insurance bill was actually $27 LESS per month when I insured two cars, than when I insured one car. So you may SAVE money by owning two cars.

    I got a multi-car discount, and my agent put my primary car as the pick up truck - the truck got a discount because it's a "utility vehicle", and I am cheaper to insure as primary driver on an old pickup, than I am on a relatively newer car. Those discounts were substantial; your mileage may vary.
  • tidestertidester Posts: 10,059
    What if I was to roll the remainder of it into a 07' torrent?

    If you did that today, you can think of it as adding $4,500 (plus interest) to the cost of the Torrent. That would be partially offset by the GM Friends and Family discount but I don't happen to know what the discount rate is.

    tidester, host
    SUVs and Smart Shopper
  • That's what I'm thinking. I'm thinking the only shot I got at this point is to roll the $4500 into the torrent and then hope the friends and family discount takes care of the majority of it. Just wish I knew how much it was.
  • tidestertidester Posts: 10,059
    You may find that information in New car incentives, auto rebates, dealer incentives at Edmunds. I haven't had a chance to dig through it myself.

    tidester, host
    SUVs and Smart Shopper
  • jazzcat3jazzcat3 Posts: 7
    Remember, though, that as soon as you drive the Torrent off the lot it's going to be worth a bit less. So any Friends and Family discount you get will be offset by that.

    I'm guessing with a Torrent being in the mid $20's, the F&F discount won't be much more than $2k. You really need to be careful when you negotiate financing here, because the dealer will most likely think (however incorrect they may be) that because you're so upside down on a very basic car, you're unsophisticated and since you're in a tough position you'll take what they give you.

    I'm guessing that with these numbers, you're in the neighborhood of $350-$400 per month for a 5 year lease and, at the end of that 5 years you'll be in this same position of being overmileage and upside down. What you need to do in this circumstance is go to your dealer, work the deal with the GM discount (but don't give them authorization to enter the code) and quote a rediculously low monthly payment - say $250 per month. Banter back and forth a little, but only budge by, say $35. Then, tell them that you don't really care if you keep your car or buy theirs, it doesn't matter - and walk out and drive away. That sounds like a lot of work - and it is hard to do - but they will usually call you back the next day with a more acceptable number. Then, in the finance office, when they bump the payment up by $10 or $20 per month (they usually do, because "oh, the numbers are fuzzy on these things, it doesn't matter"), walk out again and drive away. The following day you can sign papers knowing that it's probably their best deal. Don't budge even if they say someone's in the showroom looking at your vehicle right now.

    But remember you're probably going to be in this upside-down high-payment trap forever until you actually buy off one of the vehicles; and remember, you'll pay the bank the entire cost of the car, plus your upside down amount, plus some, during those leases. It's only going to end once you bite the bullet and actually purchase one of those cars at lease-end. A Torrent might be nice now, but being able to retire comfortably later and feel secure in your finances is much, much nicer. At least for me it is.
  • tidestertidester Posts: 10,059
    Which reminds me, Owe more than it's worth... I'm upside down and I can't get up! may be helpful!

    tidester, host
    SUVs and Smart Shopper
  • I also have $1000 on my GM card as well....
  • sebring95sebring95 Posts: 3,241
    What is your Grand Am worth today compared to this buyout number GMAC has given you? It appears the buyout is somewhat discounted based on the number of payments you listed and the $8,500 balloon.
  • KBB lists the private party value as $8500 right now. I think I would have a very hard time getting that much though.
  • qbrozenqbrozen Posts: 26,315
    honestly, i think getting another Pontiac is a big mistake when you are already upside down. If you get something that depreciates less, it will help your situation a great deal in the long run.

    '10 Equinox LS; '08 Charger R/T Daytona; '67 Coronet R/T; '14 Town&Country Limited; '18 BMW X2. 49-car history and counting!

  • joel0622joel0622 Posts: 3,302
    and quote a rediculously low monthly payment - say $250 per month. Banter back and forth a little, but only budge by, say $35.

    If he is $4500 in the bucket now he will have $100 a month just to cover his neg. So in the $250-$285 scenario you are only leaving him a max $185 to go towards the new car. What can you buy for that?

    If he is talking about a $20K Torrent $285 a month won't even come close to touching it.
  • bobstbobst Posts: 1,783
    Here is how I see it:

    You can pay $4500 and be rid of the car.

    You can pay $11600 and the car is yours.

    Is the car worth $7100 to you? (7100 = 11600 - 4500)

    If so, pay $11600 and keep the car.
    If not, pay $4500 and walk away.

    Of course, if you want to keep the car you could offer less that $11600 and they may take it.
  • Well I'm going to a couple dealerships today. I'll let you guys know how I make out.

    Thanks
  • jazzcat3jazzcat3 Posts: 7
    The problem is this. If stripdshirt doesn't deal from the start, then the dealer WILL take advantage due to circumstances.

    Let's say that $100/mo goes towards the negative eq, and let's say that an actual fair monthly payment is $385; that leaves us with a total of $485. Now, the dealer WILL see the lack of savvy in the past, and most likely will say that the lowest they can go is $565/mo on a 72 month lease. I saw things like this all the time when I sold cars. (The managers get a very, very nice kickback from the bank - on the order of $5-10k from the numbers I saw - when they jack up the money factor so much, so they have no incentive to give a fair price, especially when they know that genuinely honest dealers won't be able to help stripdshirt due to their integrity.)

    Then, 36 months from now, the cycle will start all over again when stripdshirt wants something else because the Torrent "isn't right" or gas goes up to $6/gallon - and given the current political and economic climate, I don't see $6/gallon unreasonable in the next few years.
  • joel0622joel0622 Posts: 3,302
    Now, the dealer WILL see the lack of savvy in the past, and most likely will say that the lowest they can go is $565/mo on a 72 month lease

    WOW!!! there are people out there doing 72 month leases?

    The majority of the time these situations come from a buying mistake with both the consumer and the dealer at fault.

    It is very simple to figure out how many miles a year you will drive or at least get close. But what happens is the dealer does a dis-service to the customer by putting them in a low mileage lease, and the consumer does himself a disservice by letting the payment monstor bite them and kid themselves into thinking the miles will be fine.

    Leases are great things when they are set up right from the start. But when they are used for payment purposes only they usually bite you in the but. Like in this case to save $15-$20 a month will end up costing thousands in the long run.
  • Greetings: I have a 39 mo. lease on a 2005 BMW X5 3.0 that I might want to keep. My concern is that I'm in IL and would be hit with taxes on the vehicle again (residual) unless I strike a deal with the dealership (have them CPO it and then purchase it from them). I really love my X5 (except for the marginal fuel economy) although I've researched the Honda Pilot EXL w/Navigation (fuel economy isn't much better but at least premium fuel isn't required). Here are the particulars on the vehicle.

    39 mo. lease through BMWFS 8-30-05 thru 11-30-08/10K miles per yr/residual $32,376.40/$625.26 mo. payments. The agreed upon value of the car is $49,520+$2536.34 (IL sales tax) + $625 (acquisition fee)=$52,681.34 gross capitalized cost. There is also a $350 disposition fee if I don't purchase the vehicle. Payments total $24,870.53 and I paid $1410.65 at delivery. '05 x5 3.0 w/ navigation, xenon, premium+winter package, rear climate package, panorama moonroof. I would love to keep this as a long-term vehicle and decrease the scheduled maintenance interval to preserve it for as long as possible (the BMW included scheduled maintenance is unrealistic) What would you suggest? Would you refinance through BMWFS, purchase outright or walk away? This is my fifth BMW but my first (& last lease). Thank you for your attention to this matter. I look forward to your reply.
    :confuse:
  • qbrozenqbrozen Posts: 26,315
    well, i won't comment on whether I'd buy it or not, but what is the IL tax rate? $2500 would seem to be either 5% tax on the full price of the vehicle or about 10% on the lease payments. So I'll assume you have already paid tax on the full vehicle price, leading me to assume you would not have to pay tax on the residual. Isn't there an easy way for you to find this out? Call BMWFS and ask.

    If I were to buy it at lease end, I would not have a dealer certify it. It would be much cheaper to just get a BMW extended warranty, if it is not too late. And as far as who I would finance through, it would depend on who offers the best rate.

    '10 Equinox LS; '08 Charger R/T Daytona; '67 Coronet R/T; '14 Town&Country Limited; '18 BMW X2. 49-car history and counting!

  • kyfdxkyfdx Posts: 133,933
    If leasing in Illinois, BMWFS paid tax on the full purchase price at lease inception (and passed that along, of course). Unfortunately, if the vehicle is purchased at lease end, it will be taxed again (at the buyout price), as the driver is now a different owner. (Illinois lease taxes are not favorable).

    You should ask your dealer how much he could sell you the vehicle for, CPOed, if you turn it in. If auction prices are lower than your residual, it is possible that he could purchase the car from BMW, then CPO it, and re-sell it to you for less than the cost of your buyout, plus the extended warranty. (Or not.. you won't know until you ask).

    Personally, if I had no desire to lease again (and, If I lived in Illinois, I wouldn't), then I would just let this car go, and start over.

    regards,
    kyfdx

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • grandtotalgrandtotal Posts: 1,207
    I have no comment on your leasing question, but the following that you wrote raised a question in my mind.

    I would love to keep this as a long-term vehicle and decrease the scheduled maintenance interval to preserve it for as long as possible (the BMW included scheduled maintenance is unrealistic)

    Are you servicing the vehicle more than BMW require at the moment, and if not, why not? If you think the BMW intervals are too great and you intend to keep the vehicle shouldn't you be servicing it more now?
  • qbrozenqbrozen Posts: 26,315
    wow! yeah, i definitely wouldn't be leasing in IL. That's downright criminal, IMHO.

    I can see it now, The Great Chicago Lease Party. All leasees can get together and drive their cars into a river. ;)

    '10 Equinox LS; '08 Charger R/T Daytona; '67 Coronet R/T; '14 Town&Country Limited; '18 BMW X2. 49-car history and counting!

  • jlawrence01jlawrence01 Posts: 1,828
    Your analysis of the situation in Illinois is completely accurate.

    I usually use open ended leases on most of my vehicles so that we don't need to worry about the mileage charges. Basically, we pay for the car over 50 months and if we have not traded it in, we keep the vehicle.

    However, in Illinois, when the title changes hands to us, we have to assess outselves sales tax based upon the FMV of the vehicle at the time of transfer.

    Personally, I see no great benefit for individuals to leasing vehicles in any state.
  • My 48-month lease on my 2003 Mazda Protege is ending on 6/21/07, meaning I have only one (May's) monthly payment left. I plan on buying the car at lease end, and then selling it, since it's worth quite a bit more than the buyout amount stated in my lease contract. I was allowed 48k miles for the term of the lease, the car currently has 34k miles.

    My concern is this: the Mazda dealer where I leased the car is saying that they have to charge me registration fees (expires in June), plus another doc fee, in addition to the payoff amount. Plus, they say that they will be taking an odometer reading AND checking for damage beyond normal wear and tear, just like I were turning in the car and walking away. I don't understand why they're doing this, since I'm going to be buying the car anyway. I have never leased before, so this is all new to me.

    I live in California, if that matters. Has anyone who has ever leased a Mazda been through this before? Is this make-specific, or do other manufacturers and/or dealers do this, too? Please help and advise, if you can! Thanks! :confuse:
  • grandtotalgrandtotal Posts: 1,207
    My concern is this: the Mazda dealer where I leased the car is saying that they have to charge me registration fees (expires in June), plus another doc fee, in addition to the payoff amount. Plus, they say that they will be taking an odometer reading AND checking for damage beyond normal wear and tear, just like I were turning in the car and walking away. I don't understand why they're doing this, since I'm going to be buying the car anyway. I have never leased before, so this is all new to me.

    I would take the dealer out of the loop if possible. Deal directly with the leasing company, they should provide you with a number to buy the car (unseen), you send them a cheque, and then they send you the paperwork.
  • Kirstie_HKirstie_H Posts: 11,077
    I don't know anything about the law, but do be aware that they might be wanting you to come in so you will trade in and buy another vehicle there.

    The best way to find out what "has" to be done is to look at your lease contract carefully. All of this should be spelled out in the contract... and as grandtotal mentioned, deal with the leasing company and not the dealership. The leasing company owns your car, not the dealership.

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  • susieq6susieq6 Posts: 7
    My lease statement came with a payoff amount. I'm assuming this is what I have to pay to buy the car, but it is less than the amount on my lease contract(the dealer considerably increased the residual/buy out amount) to lower my monthly payments. It was assumed I would turn the car in at the end of my lease, but now I would like to buy it for my son. Is the buy out in the lease agreement not written in stone?
  • Kirstie_HKirstie_H Posts: 11,077
    What kind of vehicle is it, and how long do you have left on your lease?

    If you are nearing the end, you can call the finance company and talk to them about buying it and confirm the buyout price. If they send you paperwork that has a certain $$ amount on it, then that's your buyout price, regardless of what anything else says. Remember that THEY own the vehicle and if you want to, you can negotiate a purchase price with them.

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