End of Lease Options - Am i being ripped off ?

madhurbehl

Coming in towards the end of the 3 year lease on my 2017 MX-5 RF, Grand Turing, Manual, Soul Red. The car is in excellent condition, both mechanically, and exterior wise.

(1) At the time of the lease, the quoted market value selling price was $33,795.

(2) Over the 3 years, I have paid a total amount of $19,936 in monthly payments; not including the $2000 down payment.

I asked the dealership for the quote on purchasing the car at the end of the lease.
The purchase value being quoted to me is $19,530 !
This seems way to high..since i've already paid off about $20k of the market price, shouldnt the end of lease purchase option be around $13-14K ?

Am I being ripped off ?

For whats it worth, I have always done the servicing on time at the dealership; always used only premium fuel; and most importantly only driven 15,000 of the total 30,000 lease miles in 3 years.

Michaell

madhurbehl said:

Coming in towards the end of the 3 year lease on my 2017 MX-5 RF, Grand Turing, Manual, Soul Red. The car is in excellent condition, both mechanically, and exterior wise.

(1) At the time of the lease, the quoted market value selling price was $33,795.

(2) Over the 3 years, I have paid a total amount of $19,936 in monthly payments; not including the $2000 down payment.

I asked the dealership for the quote on purchasing the car at the end of the lease.
The purchase value being quoted to me is $19,530 !
This seems way to high..since i've already paid off about $20k of the market price, shouldnt the end of lease purchase option be around $13-14K ?

Am I being ripped off ?

For whats it worth, I have always done the servicing on time at the dealership; always used only premium fuel; and most importantly only driven 15,000 of the total 30,000 lease miles in 3 years.

When you signed the lease contract, it should have stipulated exactly how much the residual value of the vehicle will be at lease end. How much you paid during the lease has no bearing on that number.

Remember, the payments you made include both the depreciation and the rent charge (aka interest) on the money you borrowed.

What is it you want to do? Buy the car out? If so, you'll be expected to pay the residual value on the contract.

Sorry for the bad news.

madhurbehl

Got it. The amt I paid is depreciated value + interest.
However, I'm looking at the lease agreement and it states that I have the option to purchase the vehicle at the end of the lease term for $18,587.25
Whereas, the dealer is quoting that the market value price is $19,936.

Is the agreement price binding or can they make up whatever market value they want ?

Michaell

madhurbehl said:

Got it. The amt I paid is depreciated value + interest.
However, I'm looking at the lease agreement and it states that I have the option to purchase the vehicle at the end of the lease term for $18,587.25
Whereas, the dealer is quoting that the market value price is $19,936.

Is the agreement price binding or can they make up whatever market value they want ?

You have to pay sales tax on that amount.