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Currently, on new leases... there is a $2500 purchase option on top of the residual, if you want to buy out the car..
Yes... that's exactly what I meant to write.... they want to charge you extra to buy the car at lease end..
Most leasing banks will beg you to buy the car, rather than turn it back in... Make sense of that one!
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Honda is best I have ever used, with the pre-inspection report and forgiveness for a lot of stuff. They certainly make you want to lease from them again (and we have).
And I ended up buying a used 2010 Mazda6s Grand Touring...
I don't see how that's going to work, either.... but, maybe they have a plan....lol
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So, a dubious "win/win" - the dealer gets a sale, and the consumer "saves" $1000!
Folks who finance or own their cars may or may not decide to trade cars. Folks at the lease end can either turn it in or buy it - and most turn it in. So those are 100% for sure in the market for a car. So let us hack these for sure buyers off at the turn in to be sure they don't lease with us again? Not smart, but it appears the "strategy" is working!
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Basically, I can buy the car for buyout plus Mazda dealer fees or trade it in on a new Mazda or drop it off and pay for the taillight. I can't even buy the car and then sell it to a dealer because I'd have to pay the sales tax or generate a bunch of paperwork making it not worthwhile.
Bottom line, I cannot take advantage of the $1,000 (new tires and 8,000 miles under allowable) equity unless I trade it in on another Mazda.
The initial delay was due to the dealer not faxing in the paperwork.
The next delay was that after the inspection was scheduled, the car was moved to a different dealership so the inspector did not have access. This occurred on March 23.
After speaking with CS, I was assured the inspection was reset for Friday the 25th. I waited over a week to call back, and nothing has happened. Because I called, CS is now going to look into what is going on. If I did not call, would this inspection just be waiting for eternity???
This is now beyond frustrating and I have a feeling this is not going to end well.
Anyone have lease insurance? Through IA Pacific?
I put in a claim in Dec/2010 but was told to have an extra payment in bank in case investigation took longer than a month. In April, they started paying.
I asked about Januarys payment that came out of my account and was told to talk to GMAC to get it back.
GMAC says that because the insurance company is paying my lease monthly (in arrears) that I am not due any money back.
Now I am stuck between two large corporations that say it is the others responsibility to pay.
I have no income now and the $325 would help out a lot.
If you have lease insurance you should find out how it works before it's too late.
Sorry to hear about your unpleasant dealings. I have had pretty good experiences with all of my leases, but I see two major issues:
1. BEFORE your lease is up and you turn the car in, the finance company will usually send someone to inspect the car. That is the time that they can point out any damage that they consider excessive. Often, they will send you a guide to show you how much damage they will accept at no charge. I think Honda accepts $1,500. Mazda (through Ford) gives you a card with dimensions plus a list of allowable dings. I remember it being something like one half-dollar sized ding per panel. The main point here is you agree to the excess wear and tear and the price before you return the car. The only charge after that could be for extra miles.
2. If there is a disposition fee, it should be clearly listed in your original lease contract. Don't pay a penny more.
There can be times that a manufacturer will use an unrealistically high residual value. This would have the effect of reducing the monthly payments in order to "sell" more cars. This doesn't cause any pain until you turn the car in and it isn't worth as much as the residual. If that's what happened, they are just trying to get you to pay a portion of this amount.
Depending on the trim and mileage, the residual on a Subaru Outback is running around 52%. To learn more about leasing, check the ridewithg site.
Ally will kick that contract back.... and, you'll have to sign a new contract or give the car back..
Dealers can't change residuals on their own...
Good luck,
kyfdx
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As you noted, Ally charges $2500 more than the residual to buy out their leases... It's been that way for over a year (from anecdotal evidence in these forums)..
You'll have to sign a contract with what Ally determines is the correct purchase option amount ($2500 more).. Otherwise, you'll have to give the car back.
I hope I'm wrong..
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However, I'm convinced it's not a mistake. I believe the sales person knew damn well that Ally has a $2,500 purchase option fee yet made the change just to pacify and entice you to lease the vehicle. If he/she didn't know, that doesn't relieve them of their responsibility to know and understand their financial products. How could so many of us know this, yet, those in the leasing business that do this stuff daily, and for a living, not know??? Doesn't seem credible to me.
John
The AutoLeaseGeek
The "blame it on the computer" is typical. Software vendors generally provide outstanding training and support on new software. As such, that story is real tough to swallow. And so, I think they all new exactly what they were doing. Independent of software and, regardless of the computer software used, they had to know that Ally charges a $2,500 purchase fee. My God, that's common knowledge among all dealers having agency agreements with Ally Bank. So, their computer explanation is pure BS.
If they hadn't reduced the buyout to a residual buyout, would you still have leased the vehicle? If not, there's your answer. They were able to make a sale because they changed the buyout price to a residual buyout, even though it's bogus.
As for Ally Bank kicking back the faulty paper work, they'll cross that bridge when they get to it. By that time, the hope is that you will have fallen in love with the vehicle. And, the more time that passes, the easier it will be for them to convince you to keep the vehicle. Don't be surprised if they offer you some sort of split on the $2,500 purchase option fee particularly if they already have enough profit in the deal. So, time is their ally (no pun intended). Frankly, they should eat the $2,500. My dad told me long ago that if you make a mistake in business, you eat your mistake... no exceptions!
John
The AutoLeaseGeek
They have my trade in as well so if they sell it are'nt they in a bit of a jam, also is this now technically a used car. All I have to do is say original deal or give me my car back and they are somewhat stuck with having to honor it?? Sorry to keep asking questions but trying to get an idea as to how this is going to play out. And thank you delta for taking the time to reply
"I said thats' still not right and he this time writes over the top of the stack in pen and makes the change, all copies reflect the 14419 and I initialled the change."
I have no idea what "writes over the top of the stack" means. The bottom line is this...
Was this penned change written on the lease agreement or was it written on some dealer internal document? If it was some internal document, then Ally will never see the penned change. So, you go merrily along until lease end when, to your surprise, you discover that the buyout is $16,919 and nothing was ever changed. The paper you're holding with the penned change could be meaningless and unenforceable in a court of law.
I can't believe a dealer would amend a contract by using a pen to cross out a number and, then, inking a different number. If I were the fund provider (Ally), I would send it right back to the dealer. They should know better which leads me to think that they inked the change on some meaningless document.
If they made the change on the lease contract, then, in all probabilty, they'll have to eat the $2,500. I don't know how much trade credit they gave you, if any, but they may have enough profit in the deal to eat the entire $2,500. DO NOT let them negotiate the $2,500 by agreeing to some split. That's out of the question and, as far as I'm concerned, it's non-negotiable as it's a done deal. If they made a mistake, it's on them.
I don't blame people for being stupid, but I do ask them to pay for their stupidity (mistakes). I'm not about to be victimized because of their stupidity.
John
The AutoLeaseGeek
sorry yes the lease contract, about 4-5 pages, you write on the top one it goes through all copies. they made a change on the contract. It sounds crazy but thats what happened. I have no idea if they made much on the trade. A 08 Sonata base 4 cyl auto in good shape no issue with 81k. So a lot of miles. We owed $7700 on it paperwork shows $9150 trade in which is high KBB trade in. But $9150 is just a number if the cost of the vehicle is higher as well. So I dont know what their margin is but I really dont think its $2500, they were trying to make this go through. Thanks again for your time.
"Last night I leased a wrangler, I was told my residual would be 14419, seemed fair enough to me. Went to finance and noticed the 14419 was 16919 in the Purchase option section at the bottom."
So your lease payment is correctly based on the residual you think is fair. The only problem is that the lease bank charges this silly-high buyout fee on top of the residual. Check your lease contract and see what the turn in fee is, it could be a rip of as well. The bank will not fund the lease if the numbers are not correct and the dealer can't change the residual or buy out fee or price. So unless they didn't change the copy they sent to the bank it is coming back. At hat point you should just unwind the deal - if you plan on buying the vehicle at lease end - and leasing from another bank or dealership. You can also check online at leasecompare.com to see what rates / payments they have.
Most every dealer will make you sign a form that says if the financing does not go through you have to bring it back. This lets them do business nights and weekends when they can't get approval for every deal before handing over he keys. Some have a per day and / or per mile charge on this form. If you signed one of these, then you have to pay them to take back the car -the amount based on days and miles you kept it,
Lease then purchase CAN make sense and I have done it before myself, but only when I had a super low factory backed lease rate. This lease deal is probably not at a promo rate so probably does not make any sense to lease then buy if you want to own the vehicle just get a loan and buy it now. You can run the numbers and see how much money you are tossing away on the lease / purchase but I would guess it is a large amount.
'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
If it's a problem per the contract, you can always keep the old tires and have them put back on right before the lease ends.
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I would check the lease contract, I am sure there is something about the tread depth and they have to match. If the car has a full size spare all 5 may have to match. The speed and load ratings have to meet or exceed the OEM tires as well. They could limit you to just OEM tires (there could be several) as well. To CPO a car they have to have lots of tread and be OEM tires, so dealers do not like to see turn ins with non-standard tires.
Just make sure they're name brand... get some Chinese no names and you might get hit.
Jaguar would allow one speed rating downgrade, from a Z to a V, but if the car came in with non-performance tires, you'd get charged for a set of OE rubber ($900+)
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Another reason to love Honda Finance lease "Excess Wear and Use Waiver" of $500 per incident up to a total of $1,500. I turned in my 2005 S2000 (before getting the 2008) with 2 low tread tires on it. No charge since they were under the limit.
RON
They'll make you an offer to buy your car, and check with Honda Finance for the payoff amount..
Most leased cars are worth less than the payoff, but since yours has low miles and CR-Vs hold their value, you may find that they will pay you enough to walk away from it.
regards,
kyfdx
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I also lost one of my car keys - do you guys know how much they will charge?
Leasing at the beginning and driving until these days are wonderful...but not look forward to paying some fees...
Also consider selling your car to a dealer like Carmax or via the autotrader "trade in market place". Also, any BMW dealer or other dealer may like to buy it for their lot. As long as it is not a "turn in" then you don't have to worry about the inspection. The missing key should be replaced soon as every dealer will knock off for that. Compare the current buy out price (without tax) vs the offers you get for your 3. Anything over the buy out goes into your pocket, accept under and it comes out of your pocket. Even then you might be better of to sell at a loss than to pay high lease end fees, if you owe them.
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I had a Mazda with equity but couldn't sell it to any dealer. The rules came from Ford who owns all or part of Mazda. I understand that Audi also restricts selling of its leased cars.
However, I just turned in a Subaru and instead of paying a $350 turn in fee plus the cost of a few repairs that were in excess of their allowance, I found a dealer who paid me $650.
So, first the manufacturer must allow a dealer sale (you can always buy it yourself and then sell it but then you have to pay the sales tax) and the car needs to retail for well over the buyout price.
The way it used to work with BMW - if you turned your car in then BMW would offer it to that dealer before rolling it through the auction. BMW lesees would use this to buy their cars CPO off lease. Turn it in, have it certified, buy it back (paying buyout price, CPO fee, and dealer markup). Normally you would work with the dealership's used car manager on such a deal. Shop around BMW dealers since the amount of markup could vary.
Other lease banks require the car be auctioned so the turn in dealer doesn't get first dibs on the cars.
Most lease banks carry residual insurance to cover their turn ins, so there is no incentive to negotiate a lower price with you.
I think my Rogue is relatively in a good condition. The mileage is under 20k and there hasn't been any accidents or repairs. There are some minor scratches on the side, on the bumpers and on the side mirrors. Tires are in a very good condition.
I was thinking of giving it a good wash and taking it to a shop to recondition it before heading to the dealership for the inspection.
Any advices for me? And please share your experiences with me regarding this.
Also, during the last 3 years of lease, I only had 3 oil changes and nothing else. Would that be a problem?
Thanks!
The first 100 miles, the ride was very rough. Took it back and they took air out of the tires. But it was still rough ride. I was told it was the tires. So I had to pay a tire dealer, Bridgestone were put on, Still rough but not as bad. It was suggested I put on Michelin, The Michelin felt like there was more rubber on the road. But the ride was still very rough. had the original tires put back Hankook. After going to several dealers. I am told the car was made to ride that way. Hyundai Customer Service said the car is made to ride stiff. I know cars , I restore antiques. Something is wrong with the suspension. Hyundai will do nothing. I am stuck with it until the end of the lease.
Very uncomfortable car to drive. It now has 6,000 miles.
but if it is the type of tire that are self sealant to help prevent flat tire
they give you harder ride , he went through several types and finally got Michelin man , when you did test drive did you notice that type of ride
good luck
I have a 2012 lease. The lease is 15 months old. I only have 9200 miles and the car has no scratches.
I would like to take advantage of the sign and drive event vw is offering.
Is it possible to turn in my lease and get into a new one without any penalties, and making the same monthly payments as my current lease?
Are there any incentives to VW owners and if yes, do these incentives apply to me?
Let me know what to expect from the dealer and how to negotiate the deal,
Thanks,