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1. That we need to get our Safety Test done at the dealership. Is this true? I'm pretty sure I heard we can get it certified at any certified auto mechanic (no doubt the cheaper option).
2. That we have to pay a $500 "administration fee". When I asked what this was about, he said it would be in my contract. We've both examined the contract, and it says nothing about an administration fee anywhere. However, it does mention we will need to pay "official charges" (along with applicable taxes, vehicle license & registration fees and all costs relating to the certification of the vehicle). "Official charges" sounds like a slippery term to me - is this how they're rationalizing their so-called "adminstration fee"? (And if this legitimates the "administration fee", what's to keep them from charging me $5000 or whatever amount they want?!)
Would really appreciate some honest answers on these matters.
Thanks!
I'm not sure how it works in Canada, but in the U.S., the dealer is the last place you want to go to buy out your car...
regards,
kyfdx
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I'm at the end of my lease on a 2000 Mercedes Benz C230 Kompressor. It had 15,000 miles a year. I have 115,000 on it, or 40,000 miles over.
The residual value is $15,000 and they have offered it to me at $12,800. The car has been keyed by angry residents (I'm a landlord to about 5000 apartments), and is dented and dinged up. To turn it in would be stupid, from what I've read, simply because of the mileage penalties not to mention the damage.
I want a new car, and will never lease again. It doesn't work for my driving habits. The problem---Mercedes will only offer the $12,800 to me and not a dealer for the buyout. The dealer has to pay the 15K. Further, no bank will finance me--even at $12,800 because of the excess mileage. Mercedes offered to finance me as long as I put $4,000 down and pay 15% interest. I feel like I'm without options. I hate to put 4K into this car. The dealers are offering me around $7K for the car for a trade in, meaning I have to put almost $8,000 (the difference between their offer price and what Mercedes will sell to them) into a new car loan as negative equity.
While its been good to me, I am now seeing with every repair it is VERY VERY costly. I'm in a quandry---I want a new car, I do about 30,000 miles a year driving to my properties---yet I have an opportunity to not make a mistake again (the first lease).
Any suggestions?
I would argue that you "pretty much" got your money's worth out of this thing. 115k is a bunch of miles, even today. And the reason you still owe money on it is the lease thing... but even if you had to fork over another $12,800 and throw the car away, that would not be out of line for 115k of Mercedes Benz driving.
"(I'm a landlord to about 5000 apartments),"
Given that, and I'm not trying to be a smart-[non-permissible content removed], shouldn't you be able to come up with some money, your own or borrowed, at better terms than 15%?? From your description, and the miles, it sounds like it'd cost you almost as much to turn the car in as it would to keep it... so keep it and give them the $13. Then you can sell it, or fix it up and sell it. It's a 2000 Mercedes, not a 1996 Dodge Neon.
Let the fact that it's a lease, and the fact that you'd *like* a new car, detract you from the basics. Buy it out, fix it or not, then sell it or keep it.
Good luck,
-Mathias
Your math is also a bit fuzzy. I don't see where you come up with "losing" 8,000 on it. If you pay 13K and can get 7K on a trade, it will cost you 6K to buy it and flip it into a trade (plus sales tax if applicable). If you want to be rid of it, figure out how much it will cost you to turn it in (damage penalty + mileage penalty). If it is less than option A, hand them the keys and walk. If not, buy it.
I would guess you peobably owe 6-8K in mileage alone (at .15-.20/mile), plus who knows how much for damage. So, looks like you should buy.
Also remember that a dealer doesn't want a hi miles Benz, so you will likely get much more on a private sale. Even if you only got 9K private sale, that's only a 4k loss.
You might also want to invest in a top notch professional detail before you try to sell it. You would be amazed what a pro can do for a couple hundred bucks.
Last lease point to remember: You aren't "losing" by paying the mileage overage. You are actually paying for the part of the car you used up (the 40,000 miles) that you neglected to pay for in your monthly payment.
Finally, the unsolicited personal advice: SOunds like in your line of work, you might want to look into a slightly used basic car that won't attract unwanted attention, and won't cost much to run into the ground. A 1 year old Sonata, Taurus, Impala, etc. would be way cheaper overall, and who really cares if it gets keyed?
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
Bingo ..........................!
Step back 5 giant steps and look at the "big" picture .... whether it comes out of your left pocket or your right pocket, it comes out of the same pair of jeans .. you play, you pay .....
Terry.
Any advice is appreciated.
After that, turn in the Volvo, and go lease a Honda Pilot... Comparable room and amenities.... and, you can probably lease it for 18K mi./yr for $450/mo. with nothing down...
Just my $0.02...
kyfdx
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Car_man
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Some banks will negotiate because they do not want to deal with the expense and hassle of selling your car at auction. Furthermore, many vehicles' lease-end purchase prices are considerably higher than their actual value on the open market. The bank that you are leasing through may be able to lower your car's purchase price some and still take less of a hit than if they had gotten it back. There's no reason for you not to try to negotiate your vehicle's purchase price if you definitely are going to purchase it. If the bank that you are leasing it through won't work with you, you've lost nothing other than perhaps 15 minutes of your time, but if they will you have the potential to save thousands of dollars.
Car_man
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Lease cars are kinda like rental properties .. the owners don't care much about the condition until the current renters are leaving, then it becomes important ..... in your case, you're "renting" the Volvo until February and it's not going to be important to the bank/lease company until then .. because under the contract, you owe them "X" amount of bucks a month for the rental and "X" amount of bucks at the end to purchase it .......... that said, in February when the rental is up they're going to be lookin' for a new tenant ~or~ off to the auction it will go .. so in January they will be lookin' at the current auction reports and seeing what this puppy might be worth ......
I think what Car_man is trying to say .. you don't need to tell them you used your bike rack as a chamois and you have a zillion miles on this dude, cuz' then they got ya ...... give them a call in and around 5/6 weeks before the lease is up, make sure you speak with a DM or a Regional lease guy and tell them you have a high level of interest to purchase this unit and what will they'll negotiate as far as price ...... oh yeah - before you do this, drop over to Real World Trade-in Values and I can give you a current value at that time - not now, then .. I'm already backed up .....
Terry
Thanks,
Carolyn
It's no biggie .. most lease companies start sniffing around that 3 to 6 month expiration point, it's common ..... just take the dumb blonde attitude and say you'll start thinkin' about any decisions after the Xmas holidays - besides, you have a cake burning and you have to get off the phone .....
Not knowing what area you live in, any decisions now will be based on "todays" market $$ .. if you wait til' January(ish) the value of the Volvo will probably come down quit a bit because of weather and other issues in the market .... if worse comes to worse, you pay for the extra miles and hand the keys back and get a new vehicle ......
Terry.
Again, I don't know how California works, but here in Missouri, the buyer pays all sales tax at the time he/she registers the vehicle - the dealership has nothing to do with it. Also, it'd be difficult for them to include the sales tax in the buyout price, because generally you know your lease-end buyout price when you sign the lease agreement. Tax rates can change over 5 years, so they couldn't have known what the rate would be today.
Hopefully someone from CA knows more than I.
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If you would have walked away instead of buying the car you wouldn't have had to pay it.
I remember when I lived in CA, they referred to sales tax on used cars as "use tax".
Car_man
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Ok, first of all, if you are using online pricing guides, then i can tell you that, most likely, you are much further in the hole than you think.
Which leads to ... 2nd of all, the cheaper option should obviously be the more appealing one. Just wait and roll the miles cost into another vehicle or pay the cash and start over again. If you are driving that much, I suggest not leasing again, or, if you do lease again, certainly DON'T lease for 5 years.
'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 you decide that you do not want to purchase your truck at the end of your lease no matter what, you still might want to consider continuing to make your payments and getting a second, less expensive vehicle to take up some of the mileage that you would have put on your truck.
Car_man
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The purchase price is $10294 and there is a $250 'turn-in' fee if she doesn't purchase the vehicle. The wear clause is pretty comprehensive "any and all dents, dings, scratches, chips or rusted areas on any body or trim part".
My question is this...should we...
1. Purchase the vehicle and resell it ($850 in tax...ouch).
2. Try and trade it in to Mazda when we lease the Miata
or
3. Turn it back in to Volkswagen and see what they say as far as costs.
Also, should we just go out and fix the dent? Does it increase the value enough in 1, 2 or 3 to be worth it? I would imagine it definitely would if we were turning it in, but is it always the case?
Thanks in advance for any input!
As I said earlier, once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: sysop, "Real-World Trade-In Values" #, 15 Dec 2000 2:07 am. One of our most knowledgeable community members, Terry, frequents that discussion and he is often kind enough to give community members who give him an accurate description of their vehicles with his opinion on their value.
It is difficult to say whether you will have to pay an excess wear and tear charge for the dent that your car has without seeing it. Most banks will overlook dings and scratches that are literally small enough to be covered over by a credit card, but exact wear and tear guidelines vary from bank to bank.
Car_man
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'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
Car_man
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6/8 weeks when the lease is ending, they will be looking at the auction reports and that current market ...
Terry.
Residual is around 7400. There is a buyout fee of $150. I leased through Nissan Finance. I only have 30,000 miles on it and it is in great shape except a couple scratches. TMV and blue book says the value is 1-2k more than residual, but I don't think an '01 would go for that, although it has the moonroof and alloys etc...
My questions:
-Do factory rebates apply to leased vehicles? Nissan is giving 1500 on '06's and 2500 on '05's. One dealer told me no. I want to negotiate the price including rebates and then work out the lease from there.
-I'm hearing from dealers that there's no 05's around. Should I insist on having a locate done to get more rebate? I get the feeling they just want to move what's on the lot.
-Nissan is offering this lease currently http://www.nissanusa.com/buying/SpecialOffers/0,,53011,00.html#21111 It looks to be a subsidized lease which is supposed to be good? When they have these offers are they still negotiable?
-My dealer is offering a "deal" currently where they buy back your lease at 100% of market value and they said they would knock of the last lease payment and any equity in the car above residual would go towards my new deal. I'm leary of anything that ends the lease early and supposedly takes care of old payments. Does this sound legit? What should I watch for? Deal ends Sat. the 12th. Supposedly anyhow.
-I have contacted Nissan finace with some questions, but for the most part they seem to prefer I deal with the dealership. The car isn't the dealerships at this point. Can't I deal directly with Nissan finance if I decide to purchase my current vehicle?
-My credit is excellent, but I am currently unemployed so financing without a co-signer will be tough. I can get one if I absolutely have to, but Nissan has already pre-approved me and said I need no co-signer so my incentive to stay with them is strong. I don't have alot of leverage to walk away and seek out a different brand unless anyone knows where to get good financing with tier 1 credit, but no job.
Sorry this is so lengthy, I don't know where else to get the info. I have done much research, but it's hard to nail down specifics. What is the best time frame to get this deal done? Lease ends in about 6 weeks.
Thanks to all!
Anthony
Peace
Anthony
What would be there financial incentive to pay my last payment and give me an amount of money over what the residual is towards my new deal. They are saying that say my residual is 7400 and the market value is 8000 that they will give me the 600 dollar difference towards my next car. At least that's how I understand it from this letter and my call to them.
My understanding is that they usually take a hit on turn-ins and would want you to purchase. And if they weren't going to take a hit they would be making there money on what the car was worth over residual, but they are saying they will give that to me, which would negate there profit.
This dealership was pretty honest in my current deal with them, but this sounds a little bit fishy.
Thanks
Anthony
Residual is around 7400. There is a buyout fee of $150. I leased through Nissan Finance. I only have 30,000 miles on it and it is in great shape except a couple scratches. TMV and blue book says the value is 1-2k more than residual, but I don't think an '01 would go for that, although it has the moonroof and alloys etc...
==============================
Your current lease and what the dealer is offering you are 2 separate entities .... the dealer has nothing to do with your current lease, it's between you and NMAC .. the letters are just to keep you all excited.
If it's a clean 01 SE with 30k and all the stuff, then the $7,400 residual is very fair and just about wholesale money, most dealers would pay $7,0ish for it on a trade (real money) and probably "ask" $8,9/$9,5 and probably get $8,500ish ....
I would call NMAC and speak with a lease manager and see if they will maybe negotiate the $7,400 (but don't get into the low miles and how nice it is) even if they come off the price $200 - fine ... if not, it still makes for a nice vehicle without all the risk of an another lease car, plus you get small payments - and you can always sell it down the road for a profit or break even a year or so down the road ....
Terry.
Maybe it was poorly worded, but yeah I know it's a seperate deal, that's why I mentioned that the car is NMAC's and not the dealers.
NMAC keeps referring me to the dealer.
I know my posts were kinda long, I just need some more specific answers so I can make a nice deal.
With the higher interest rates on used and possibly having to have a shorter loan I may be able to get lease payments on a new vehicle for very close to the purchase of my current car. Especially with Nissan's cash back and lease offers. That's why I had all those questions so I can sort this out.
Like ability to use rebates on leases? And locating an 05 for a bigger rebate? And how legitimate the dealer buyout offer is, etc... etc...
Thanks
Anthony
If the dealer is giving you $600 towards the next subsidized lease to reduce your payment from $209 or the $790 cap cost reduction and paying your last payment (another $200-ish?), that sounds pretty good to me based on Terry's numbers.
Or, buying your current vehicle at say $7000 finance for 3 years will give you similar payments to the lease, and you'll own it after that. So, when it's paid off, you'll either have no car payments for a while, or you'll have a vehicle that is still worth $4-5k (assuming still low miles) to purchase the next vehicle.
I'm not sure about that 600, that was just an example. They said I would have to bring it in to be looked and they will call Nissan and see what they can do, blah blah. That's why I'm apprehensive, I don't see why they would give me market value, TMV and Blue Book is above the residual.
Thing about the 05' is that it is an extra 1000 rebate, does that apply to leases as well to reduce the cap? That extra off, plus what I would bargain the car for would make for a mighty low selling price to base the lease off of. But, if that other lease is truly subsidized then it might be hard to beat. Can u wheel and deal on those subsidized leases or do u have to take what they give u numbers wise?
Thanks to all!
I've only leased 3 vehicles in my life. For two of them, I walked in with my own offers, and the other, I was pleased with the dealer's terms. There is probably still room to give on the Sentra, a slow moving (selling) vehicle.
What do u mean here?
Thanks
Anthony
Ask your salesman to run the numbers for leasing a 2005 vs. a 2006. The 2006 is right on Nissan's site that you linked, but the 05 is unknown. Leave your 2001 lease/trade out of the equation for now, just to determine which year is a better lease deal.
Anyone have any answers to my questions in my first post?
This forum seems pretty slow, I was going to try posting in another section, but I didn't know if cross posting was allowed here.
Car_man are u out there?
Thanks
Any help would be appreciated.
Most times, however, trade-in value is less than what is owed on the lease buyout ... so she will be upside-down.
What she needs to do is figure out if it will be cheaper to wait until lease end and pay for the overage on the miles ... or trade it in and pay the difference between trade-in value and the lease buyout.
'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
As far as future prices of cars - Who knows. The newer models are likely to cost more than yours so that's a plus in your favor. Take a look at your car here in Edmunds. They have a "True-Cost-to-own" estimate that shows estimates of future depreciation and other (estimated)costs.
2001_Volvo_HT_Convertible_True_Cost_to_Own
But that's just an estimate - your mileage may vary.
Keep in mind that you'll likely spend less driving an older car (like your 01 Volvo) than buying or leasing new every few years.
The way I look at something like that is "would I buy this car from a dealer at that price?" Personally, i find a C70 HT convertible with 30k miles for $17,700 to be a SCREAMING deal and would jump on it in a heartbeat. YMMV.
'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
Thanks for the help.