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My Acura is in the first year of a 3 year lease and I would love to own it. Does it make more sense to ride the lease to the end or try to buy it now?
thanks
The balances and residuals due were quite a bit less than the book, which formed the basis of the decision to buy it out. In the end, we put an ad in the paper on a Friday, and on Sunday we sold it to a very excited designer from SF for about a grand over book and three grand over our payoff.
I don't recall any willingness to negotiate on VWA's part, though. In a solid equity position, the leasing party has little reason to cut a deal. In a non-equity positon, there's little reason (IMO) to buy out the remainder!
I would ride the lease out, unless you find you can lower your payments and maintain or reduce your payment schedule, or if doing so will put you in a strong equity postion on the car (hard to imagine in year one).
If you can't advantage yourself in the short term, it makes little sense to pull any trigger before lease-end. You effectively "own" it until then anyway.
'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...
ka
We currently have 94,000 miles on our vehicle and we were only allowed 48,000 miles x .15 per mile overage. Thats $6900 just on mileage not included excess wear & tear. Our current buyout amt is $10k.
We don't know if we should try to keep the vehicle or setup a new lease. I've have read a lot online about end of lease options, including the one on edmunds.com. We don't have the money to pay the excess mileage charge. We would like to buy/lease a new vehicle if we could, but don't know how the excess mileage figures in to that. My lease company (NMAC) is telling me I can keep the car, but must pay the buyout and obviously if I can't afford the mileage charge I can't pay the buyout. NMAC tells me I can't finance the buyout through them for some reason.
So, here are my questions. Has anyone of you ever been over the mileage by this much and how did it work out. If i lease/buy a new vehicle are the xcess mileage charges add to the price? How would I go about financing the buyout and can I get it through current financing company. Any suggestions would help as my wife and I are struggling with this is this is our only car. Just sucks we never thought ahead about the end of lease. honestly never thought I would be over the mileage this much, but thats what happens on Long Island. Any help would be appreciated. thanks!
is there still a chance you can prepurchase miles? some leases allow you to purchase miles if you need to add BEFORE the end of the lease. it could be cheaper
actually i would not pay them the excess millage because if you do, plus the wear and tear, you could be out say 7,500-8,000? AND NO CAR! if you buy it out, you could probably end up with a payment of $200-215/month. do the math at
http://partners.financenter.com/kiplinger/calculate/us-eng/auto05.fcs
is the car worth 10K still? http://www.nadaguides.com/
if it is, then you can leverage that towards a new car, pay off the loan on this car, and save some bucks on taxes towards the new car. (this will offset the amount of taxes you spend on buying out the old car).
talk to a dealer with time on his hands, and not the one you leased from. maybe go on a weekday, when there is no one else at the show room and they can actually explain your options. this is what i ended up doing, and it was quite an education.
oh also remember, that buying out a car and then selling it, if you decide to, you'll have to have the title in hand to do so- it adds time to your whole transaction (that's where i was the dope)
hope this helps
cs.
You drove the miles, you gotta pay, one way or the other. Either you pay too much for a 94k Altima, or you pay $7k+ to walk away. That is an easy decision as the car is definitely worth more than $3k.
Smug remarks about how, while you were driving all these miles, you might have set some money aside to actually pay for them, are valid and pertinent, but probably not welcome. But hey, this is the internet, so here they are anyway. Free of charge. What were you thinking?
Relax, it could be worse. Were it a Dodge Stratus with tranny problems, you'd be in REAL trouble. As it is, you'll be driving an Altima with a bunch of miles. That's not so bad. Try to pay the sucker off in 3 years.. that'll be $300/month or so, maybe more if your credit is shaky. And then, keep it even longer and save up for the next one. Buying cars for cash isn't so difficult.
-Mathias
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Oh, by the way, did you tell NMAC how many miles you have? I hope not. If you didn't, then you should try negotiating a lower purchase price from them. They may go down, they may not. But its certainly worth a try. If they know how many miles you have, though, they certainly won't negotiate as they know they've got you over the flames.
'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
My friend, who has been wanting to get the 06 Touareg, is deciding to do this because payments to finance the car is too much.
From what I know, it would be a lot better to just finance from the start. How much more money would she end up spending? Do you guys think it's worth doing this just to have the car that you want? Thanks
It is possible that a dealer would give you a little "extra" when you trade in the car, but you have to understand that they would be buying it from the leasing co. and not from you. After all, you don't own it. Therefore, I would not count on a lot of money... it doesn't hurt to ask, though.
-Mathias
is the problem just that you need a bigger car right now?
'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
Anyway, I'm surprised you would go from a Z4 to an MKZ unless you NEEDED to. Its not a vehicle I see as appealing to car nuts. I mean, its slow, FWD, etc. Eh, to each his own, right? I'm not saying its not nice or anything ... just a strange switch for you, that's all.
You may be shocked by what the Lincoln dealer would give you for trade (and not in a good way). You should stop by and get an appraisal before spending too much time thinking about it.
'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
When I wanted to trade my lincoln LS, I WANTED to like the Zephyr, but a heavy luxo-sedan with an underpowered 3 liter FWD V6 with only an automatic just wasn't going to do it for me. Like you, I've had alot of cars, and the more recent ones have all been sporty.
Are you able to drive the MKZ yet?? Are we talking about the one with the new 3.5 liter? If so, that's a big improvement over the Zephyr .... but I didn't think that was out yet. Lincoln's website certainly doesn't have it. And the press hasn't even published real reports of it yet (only a quick one-lap look has come out in the mags this month).
'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
That is an alright driving car although with an automatic it is not going to be as great as it could be. How much could lincoln have really screwed up that car?
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Have you driven a Mazda6s automatic? Its truly a painful experience. A 3400 lb car with ~200 ft-lbs of torque through an auto tranny is just not going to cut it. Oh, and let's not mention the fact that, despite giving up so much power to the CamCord, it gets significantly worse gas mileage. Yikes!
I drove the Mazda6s and Accord back to back. Lemme put it this way ... if you blindfolded me and put me in each car (as a passenger, of course), I would have told you the Mazda was a compact Asian sedan, while the Accord was a Euro midsize sportsedan by comparison.
but I'm WAAAYYY off topic here. Sorry.
****************************************
edit: oops. sorry, kristie, i was working on this when you posted.
ummmm.... on topic ... on topic ...
beamer ... if you are talking about the MKZ, when will it be available and how much time will you have in your lease at that point?
'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
My friend, who has been wanting to get the 06 Touareg, is deciding to do this because payments to finance the car is too much.
From what I know, it would be a lot better to just finance from the start. How much more money would she end up spending? Do you guys think it's worth doing this just to have the car that you want? Thanks
Nobody replied to this, but IMO your friend can't afford a Toureg. If she can't afford the payments to finance it, she certainly can't afford the maintenance on a German car after the warranty (and lease) are up.
The folks who have the notion that they can afford the lease but not finance usually end up posting here on edmunds the day the lease ends.....it goes something like this
"I'm 40,000 miles over my mileage limit and the car has some dents. I can't afford to turn the car in and pay the damages and I can't afford to buy the car because the buyout is too much. now what do I do?.."
So.. I was probably on to something..
If you can't afford to buy it, then you can't afford to lease it.. Your scenario is a perfect example of why..
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I have a 2006 Honda CRV EX That we might want to buy out before the lease ends....the Residual is about 14500 and the payments total about 12500(I may be wrong). I'm thinking it's better to wait the whole 3 years, but we might want to lower the payment in the meantime. Does Honda Finance do this? Would they finance it for 60 or 72 months...do you guys recommend waiting it out. One of the reasons I wanna do something on this is because when we leased it we didn't know about negotiating lease price, so they stuck us with MSRP...well now I know more since I leased my S40.....it's not a bad situation. live and learn I guess.
So if the lincoln dealer is offering you $32,620, how will you make more by selling it for $32,500??
'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
By the way, have you checked the tax laws where you live? Trading could potentially give you a big tax break that would at least somewhat offset the money you gain by selling yourself.
If it was for the full amount, you'd be looking at a couple grand. But since its a lease, its a different story.
'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
which i leased and the lease is ending on sept 30
i have 14,000 miles and the car is in very good condition..
i have monsoon sound, stability control , heated seats
i checked the appraisal for buying and its prices are
trade in: 10,527
private party: 11,867
dealer retail: 13,058
i was considering to buy a car since i need it..but i dont know if its worth is..the pruchase quote from VW is 10,088 plus $ 700 in taxes making it total of 10,788. I want to know if its worth to buy or release a car..
i did the car inspection and they said they will not charge me anything extra appart from the $350 turn in fee since the car is in great condition
also..i live in MA but im moving to FLorida next week so i was thinking to buy the car and ship it
also..a friend was telling me about lease extension..but how long can i extend it for? i want to know if its a good deal to buy a car..or do what with it? any ideas? car in good condition but im really confused? can i buy it in florida and pay florida tax? maybe a dumb question? what should i do..need advise..asap//please help!!
I've heard so many complaints about VWs over the past few years, that I'd be real hesitant to buy one, personally.
What are your monthly payments now? What would you have to pay on a loan if you bought this car from VW? Is that more or less than a lease of a new car that you might like?
With only 14k miles on this car, you obviously don't drive much. But you are now moving, so that will change. How much will you drive when you are in your new home? Will it continue to be very low miles, or will you now how to drive more? And, if so, how much?
If your situation wasn't changing, and you don't care if you are driving a new car, I'd certainly say buying is for you because you are paying for more miles in a lease than you are using. If you buy something, you'd have it paid off and still have a very low-mile nice vehicle that you could then drive for a long time payment-free. BUT, your situation is changing, so I don't know if this advice applies.
'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
I would like to buy the car when my lease is up. How and more importantly WHEN do I negotiate the best deal with the leasing company.
Do NOT let them know anything about the condition of the vehicle. You don't want to give them any negotiation leverage. If they know it has low miles, then they will want to charge you more. If they know it has damage, then they know you are less willing to turn it back in and pay for the damage, so they'll want to charge more.
'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
Be prepped for the call: know your numbers and what you'd be willing to do, and strike while that iron is hot.
Chris
The only way for you to make money on it is to buy it and sell it yourself. But is it really worth all that hassle? That's the question you have to ask yourself.
'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
My lease is up on my 350Z next month and I do not want to get rid of it until the 2008 Infiniti coupe comes out (May-June 2007). Is it better to just buyout now & sell it when the new coupe comes out? Or, just do a lease extension? It's hard to compare the 2 options since I don't know what portion of my payment will go towards the payoff.
When it does work, as far as I can see, is when there are heavy leasing incentives such as cash and a low money factor. If you calculate out what you'd pay during the lease and then what you'd pay during a short-term loan in the end, you may find that it would be cheaper than one long-term loan now.
Don't forget, however, to add in the inception fees AND, if you don't already carry higher insurance coverage, the increased premiums that come with the higher coverage required for a leased vehicle.
'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
You turn the lease into the dealer at the end.
They buy it for less then what your buy out was and then they sell it back to you.
Doesn't always work but when it does it can be very attractive. The problem is that sometimes the dealer can't buy the lease return for lease then the buy out.
The other choice is to negotiate the buyout yourself with the leasing company (as has been discussed here before). Not all manufacturers will do it, but, from what I've heard, many will.
'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
At the end of last year we got in two so called "brass Hat cars" they were used by Land Rover employees and had less then 2,500 miles on them. Land Rover sold them to us very, very cheaply. These cars had MSRPs of nearly 57,000 dollars and we oned them for around 39,000 dollars. The trick was they did not qualify for any incentives of bonus programs. You could still lease them as new cars and wow did they lease good.
A low mileage lease with no money down was around 400 bucks a month all taxes in. Next year we are hoping to get a couple of more cars like this and so we would do a high mileage lease on them to force the residual down but not actually drive it the full amount of miles. At the end of the lease we would turn them back into the dealership and then do a Pre-owned lease for even less money a month...
On the pre-owned lease the residual is based on the miles the car has at the time of the lease. By doing a high mileage lease at the beginning you force the residual down and help yourself out on the other side. The monthly payments on the new car lease are slightly higher but because the moneyfactor is so low it is like free money. SO now you have a used car with a low buy out but a high residual because the miles are low.
j/k ... i can't even afford the gas in that thing.
'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
Actually our marketing manager is driving a 2006 MY SC Sport right now. I am hoping she turns it in soon and maybe we can snap it up. I wouldn't want to buy it as it would still be too much money for me but I know a couple of people I could sell it to.