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Have a 2006 Murano coming off lease in a few weeks. 20k miles, and the buyout is $19k. Seems like a good deal but would like to be sure. Also, is it correct that I'd pay tax twice? Would I pay tax on just the $19k or the entire value of the car?
Thanks in advance,
Jason
I WILL NEVER lease another car!
My 2007 Honda Odyssey (base model) lease is coming to an end. My maturity date is 10/21/09. I am trying to decide what my best option will be for when lease is up. I'm not sure if I should buy, hand it back and walk away, or what ever other options might be available.
If I need to share more info, please let me know.
The current payoff amount is $16822. The residual value on the lease agreement is $15481.
I am over mileage, I had a 15000/yr and am presently at 46500. I don't have another car to drive, so the over mileage will continue till I decide what I'm going to do next.
I would like to get my payments back down to something more reasonable, whatever option I choose. These lease payments are killing me, I was so foolish in my younger days..anyways, any help would be greatly appreciated.
Try not to post the same question in multiple topics to avoid confusion.
tidester, host
SUVs and Smart Shopper
Los Angeles, CA
2007 BMW X3
3.0 Liter V6 Auto
AWD
15,100 miles
Platinum/Butter
Sunroof, Premium Package 18 inch wheels
Excellent Condition (No dings or scratches) In or out
Tires: <10% Worn
Brakes: no problems to date
This car is in Primo condtion, never had any problems.
My Residual is $35K but BMWFS said the would give me $7K off the residual but the interest would be 5.9% for 36 months. The dealer said she would give me $6K off the residual and the interest would be 4.9 for 36 months, PLUS they would extend the warranty & maintenance out to 6 years (from the current 4).
Is $28k-$29k a good price for a 2007 X3?
If the dealer is going through BMWFS, how can they give me a lower interest rate? Should I try to negotiate a lower interest rate with BMWFS?
Also, I have a feeling that in 3 years, I'm going to want to have a different car, should I even deal with the higher payments from the purchase? Or just continue to lease and get something new now at a lower payment than what a purchase would be.
Thanks in advance for your advice!
$28,000 @ 5.9% = $850.54 payments/$2620 total interest
Total cost: $30,600
$29,000 @ 4.9% = $867.65 payments/$2242 total interest
Total cost: $31,243
You'll need to figure in the cost of the extended warranty to see whether that $600 difference is worth it and make your decision based on that.
tidester, host
SUVs and Smart Shopper
BMWFS will sell the car for (a lot) less money to the dealer than they will you. This allows the dealer to pay for the CPO warranty and maintenance, oonly charge an extra $1000, and still turn a profit. The extended maintenance and warranty would cost you at least $3000, even if the car needed nothing...
The dealer is definitely the way to go on this... If you don't like the high payment, see if you can get the same rate for 48 months. The money is cheap enough, and the car will still be worth quite a bit more than the payoff after 3 more years.. and, the payment will be a couple of hundred less per month..
If you want to keep driving an X3, it's really your only choice... Lease deals are terrible on the new ones...
regards,
kyfdx
Edmunds Price Checker
Edmunds Lease Calculator
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Edmunds Moderator
'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
Looks like I have no choice but to get a new car.
Leasing companies used to be cool about extending leases now they don't want to.
I'm not sure what MSRP really has to do with the vehicle three years down the road though. The only way to determine if the buy-out is a good deal is to compare that to the current value of the vehicle. If you can buy it out for less than market price, it might be worth considering. If it's worth less than the buy-out, then you benefited (somewhat) because you paid for less depreciation than actual.
* the msrp was $34,485
* the adjusted capitalized cost (selling price) of the vehicle that the lease was based on was $28043
* I put $2500 down and had $405/month payment at the end of the lease which means at the end of my 3 year lease I put out of pocket $16675
* if I wanted to buy the car at the end of the lease the non-negotiable buyout price was $17932
if you add what I paid out on my lease and add it to the buyout price ($16675 + $17932) you get $34,607; so if I bought the car I would have spent almost $200 dollars over msrp (list price) to keep the vehicle; to me that was no incentive or deal for me to buy the vehicle so I decided not to buy the vehicle and I leased something else from a different car manufacture
what I don't understand is, shouldn't the buyout price (once added to the amount I paid out in my lease) be no more than the selling price of the car because the way this was laid out, if I had bought the car the car company would have made almost $6000 profit on me
First, the payments include interest. Interest on a lease is calculated on the depreciation amount AND the residual. Second, you are also paying tax on your payment and you are adding that to your total price for the car.
Put it this way, if you bought the car and financed it, chances are once it's all said and done the purchase price,taxes and fees plus the interest would be way over MSRP.
I have read on edmunds and other sites that most financing companies will or are willing to negotiate the buyout price for a vehicle at lease end because financially it is a lot easier to have the consumer buy it then the cost associated with auctioning, paperwork etc for returning a 3-4 year old car to their lot
I was hoping either you are someone else knows which car manufacture fiancing companies are wiling to negotiate with you on the selling price? - from experience I know that Infiniti finance is willing to negotiate but that Toyota financing is unwilling negotiate
This is a business, not a charity.
That would be true only if there was zero interest on the lease and usually lease rates (money factors) are higher than normal financing rates. I don't know what your sales tax rate was...but assuming average sales tax is 7%...that would make your interest rate (apr) about 9.5% on the amount financed. One reason leases are usually bad deals is the high interest rate which has been proven here.
Also, you need to realize these are two seperate transactions. The dealer made $XX when they sold the car to the leasing company for whatever your agreed upon sales price was. The leasing company now is on the hook for the car and they either can sell it to you or sell the vehicle elsewhere. Some of the captive finance arms (toyota motor credit for example) have incentives that can go back and forth on these deals, but essentially that's how it works.
Thanks
When you say "worth" more than the residual...are you speaking of retail, private party, or trade-in value? Residuals are set on trade-in or auction values.
If the finance co will sell the car for $25,500 and its worth $28,000 a) WHY would they lower the price anymore and b) why would you not just take the deal and be happy?
I was talking to a Cadillac dealer today, and he suggested I call back in a month and see if he can help me with a lease end purchase. If I understood him right, he said sometimes he's seen where the residual can be negotiated down if you're 90 days from the end of the lease (possibly several thousand dollars) but usually it's a lot tougher or impossible if you actually wait to the end of the lease to try and purchase. I'm assuming he's expecting I would finance a loan for the buyout price. (Which I do want to do.)
He wasn't guaranteeing a residual reduction, but he seemed to think with the market conditions he's seen it's possible or likely.
Does this sound right and/or likely? Do I need to work through a dealer necessarily? Thanks for the comments and suggestions!
I'll bet that when it comes right down to it and he cannot negotiate a lower residual he's hoping you will be so in love with whatever you replace the current car with that you'll go ahead and do the deal anyway. "Instant gratification".
My negotiated price for the car was $45,575.00 (MSRP was $47,795). Residual value $30,000.
Thank you very much in advance!