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I understand that Lexus Financial owns the cars. But doesn't the dealer have some incentive, in the form of money from Lexus, to sell the car? If so, then perhaps the dealer would be willing to give up some of that money to get the deal done, rather than to give that sale to another dealer. When I have purchased or leased a vehicle in the past, I have tried to get dealers to bid against each other to get the best price. I don't know if the same strategy is possible with a end of lease purchase. If there is no incentive from Lexus to the dealers, then I can't see any advantage to shopping different dealers.
Thanks
Just turn the car in would be my advice.
lease was through U.S. Bank. Payoff amount went UP from one week to the next.
if the dealership buys the car at auction or buy's it out from the car manufacture and puts it as a used car on their lot, what you can do is write your VIN # down and wait and watch the used car lot at the dealership you turned the car into at and when you see the car returned to the lot you can then go in an buy or finance it with a deal from the dealership itself
I know of several people personally who have done this because their lease buyout was thousands of dollars above what it was worth and they really wanted to keep the car when the lease was up but didn't want to pay thousands of dollars (when all is said and done) over msrp to keep the car
Anyways, what make was the car and did you know or have any choice on who was financing it? Seems like there's lots of negative posts regarding USBANK.
Also, once I started trying to negotiate the purchase at end of lease and running into all kinds of "attitudes" and problems, I researched USBANK on the internet and found that what I was experiencing was a common problem by most who leased through them. I'm sure you've read the online comments already. My brother has his own business and has often leased cars. When I discussed my situation with him he said he'd never experienced problems when he purchased at end of lease and was always able to negotiate successfully. (he didn't use USBANK, don't know who he leased through)
Oh and, I priced the same car I have at dealerships throughout the Atlanta area when I was considering end of lease purchase and it was selling at a much lower price because of the depressed economy at the time but this didn't change the "attitude" (or price) being given me by USBANK for purchase. At the time, Color was important and couldn't find the exact same color to buy off the lot so I went with the purchase of car I was leasing..
Basically, at the end of your lease or Balloon you can buy the vehicle out for the contract residual, TFS has never negotiated a residual that I have ever seen.
Now, once we ground a lease return, we have 3 options.
1) Buy it for Payoff. Sometimes this is to our advantage, sometimes not. If we do this, the customer is not charged for any excess wear and tear or mileage. This is an amount we can charge a customer for their lease.
2) Buy for residual. This is also an amount we can charge a customer for their lease return.
3) Market Price. We can request a Market price, if the market price is below residual or payoff, we CANNOT offer the vehicle to the customer for that price. If we buy a vehicle for market Price we can't resell that vehicle to the customer, even if it's certified and priced at retail, if we get caught (And we probably will) TFS charges us back the difference between residual and market price.
Other Manufacturers may be different, but Honda Finance is similar.
Some banks, such as Chase, will not let us buy the vehicle at residual, only at what they feel it's worth. As such, I almost never buy Chase lease returns... more out of protest than anything else.
Thanks!
I talked to the Audi dealer today and if I go through them, they want to outfit the car as a used car they would sell - I know I will be needing brake work sometime soon but I do not want to pay them for that work.
Can I just get a used car loan?
thanks for any information you can give me
tidester, host
SUVs and Smart Shopper
The car went to auction at in Palm Beach - Manheim and Get Your Car Back represented me on my buy back. They got me into the auction and I was allowed see the car go through the line. It was a very eye opening process for me. These auctions are like car supermarkets. With about 40-50 people looking at each car as it passed by and people online bidding on each car I was shocked.
Well my car came through the line and the price it started at was 16,500 and the car was bid up by me and 3 other people. The final price which I got my car for was 18,500 + the auction fee of 300 dollars and the $500.00 I paid to the company helping me. At the end of day I paid 19,300. I am very happy with the final result. I must say that some things could have gone wrong and I would have had to use Get Your Car Back to represent me at auction to buy another car within 30 days if my result failed.
Again thank you all for you help....
One thing, it seems that you would have to pay sales tax either way. I had to. also the 2500 fee seems really high. Mine was $450. I got hit with when I returned it back to the company. Once again, sorry I could not be more help to you on this one.
The car is in good condition and has not been in any accidents. I am trying to find out if it is possible to leverage my current lease with the dealer to buy a new Honda Odyssey. I don't want to just turn the car in and go look for a new Honda. Do I have any options?
the only thing you can do is buy the Pilot at the end of the lease for the residual value; then trade it in for a new car. Of course you hope the trade value the dealer gives you is more than the residual value (the price you paid). That's rolling the dice.
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Thanks.
Anybody know a better way to get around this?
'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
There's also sometimes a provision for extending your lease on a short-term basis if you need time to shop around. Read the fine print in your lease.
Coming off a Honda Odyssey 2007 EX lease in 2 weeks. 12k/miles per years, 3 years
Want to possibly purchase at end of lease because nothing new really excites us out there.
$16,988 buy out price on lease + NY tax
Car is in great shape, 35k miles. Is it worth it? TMV is in $17k range. Deals for new ones have been atrocious (not even sure if we are minivan people but like I said nothing fits us). Would finance privately, paying up front for it.
Questions:
1) Does the Honda dealer make any money on the transaction or is it simply a "pass thru" for them? Not crazy about the servicing from the dealership, would prefer to give to some other dealer if someone has to make a buck.
2) It is a lease directly from Honda -- looks like no luck in negotiating. Any advice in getting a slightly better deal?
3) I am reading posts about Odyssey deals but not seeing anything in NY area. Would I be able to step up to EX-L for 3 year, 12k miles/yr, no money down for under $400?
4) Any hidden fees I should be aware of if buying out current 2007 at lease end?
5) Anyone have experience with the wear & tear issue for Honda -- car is in good shape (according to me) - minor scratches, other than that very good. But never know what the 3rd party company could say.
sorry about the tons of questions... thanks in advance. Just really disheartened with all dealers (not necessarily just Honda).
The lease on my 2006 TSX is ending 03/31 and I'd like to buy out the car. The residual value is $15,800 per the lease agreement and the TMV is 19,848. This was a pleasure vehicle and only put 28,500 miles on it during the 4 year lease so this car has some nice equity.
Acura Financial sent me letter saying I'm approved for the lease or purchase of a NEW Acura, nothing mentioning to re: the buyout.
Has anyone dealt with Acura financial on a buyout before? Do they require you to go to a dealership to seek financing or would they handle direct? Should I contact my credit union to ask for a buyout loan?
I'm a bit confused with this process and want to be more informed before I contact Acura.
Thanks for your help.
You should be able to buy your car directly from Acura Finance for the residual amount + sales tax. They don't require you to work through a dealer.
Be prepared to get your own financing, though... I've seen some pretty lousy interest rates on lease buyouts, and some captive finance companies won't finance you, at all.
regards,
kyfdx
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Any idea which banks are offering competitve rates at this time? I sorta don't want my credit to be run too many times.
Drop in to your local bank branch and ask them for their rates.... they won't have to pull your credit, to tell you that..
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Hoping for some advice.......
Have a 2007 Acura MDX/Tech package 42 month lease ending in June. Car is in excellent condition, has 4 new tires, and I completed the $500 30K service. Mileage allotment was 52K and I will be turning it in with approximately 36K. The residual value is $25,615.
If I purchase it would be $25,615 X 7% sales tax which means I could own the car for $27,408. Bottom line is we don't want the car anymore and are looking at sedans, but what's killing me is that I have looked at KBB, Edmunds and NADA and they all suggest a private sales price of like 31K-33K.
Should I just buy it and sell it on my own, or is this something the Acura dealer might want to just buy from me, because he could turn it around and sell it for close to 34K and make a killing?
Thanks,
LJ
My lease on my 07 range rover HSE is due in about a month. I had a 39 month lease (15k miles/year) with a residual of $37.9k. My current mileage is 62k. I called the dealer and they are unwilling to budge on the price of a buyout. Should I a) purchase the vehicle (market value around $35k) or b) pay the $3.3k overage and get out? Need advice (Car Man?) Thanks in advance!