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Yes, but $80K is a lot for a new one.
I think you should bear in mind that if you had not put so many miles on the car it would be worth the residual, more or less, and so would represent a good buy if you wanted to buy it. What actually happened is that you did more miles than you contracted for and those miles have to be paid for one way or another.
I think it really boils down to this, do you want to own the car or not? If you do, then buy it, at least you know how it was looked after. If not then pay the over mileage charge and move on.
I think the chances of negotiating are very slim because you already told them that you are way over on miles. That fact will have been recorded. Therefore they either expect the car back together with your cheque for over mileage or they expect a cheque from you for $37.9K. Either way they stand to realise about $37.9K from the deal, so why would they negotiate?
If you are determined to try negotiating then your best bet is to wait until the day before you are due to return the car and call them with an offer. Don't be surprised though if they reject it.
I can buy the car for $8,900. On Edmund's, the car has a trade-in value of $10,403, a private party value of $11,665, and a dealer retail value of $12,721.
I need advice. What are my best options? I don't mind driving the car for the next ten years, but I also wouldn't mind getting a new one, to be honest. I currently only use my car twice a week, and I would like to share my partner's car, but he's not really open to that. So, what do I do?
In terms of financing, I can pay cash for the car and buy it in August.
Forget about the lease for a moment.. It looks like you need a car, but won't use it a lot, so you don't really want to spend a lot of money...
This seems like a great deal, plus you know it's been well taken care of.. Not as exciting as buying a new car, but a lot thriftier..
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It's a 2007 Matrix XR, but I purchased it in August 2006. It is the high-end trim level with a sunroof, six-disc CD changer, and other stuff.
Do you think I could negotiate with Toyota? I recognize that Toyota is not likely to negotiate, but I'm curious to know if others have had any success.
The members here that seem to have had any luck, have waited for the bank to contact them, to see if they have any interest in buying the car.. then, expressing mild interest, but not at the residual price... and, waiting for the bank to suggest a lower price. Those that have just called, asking for a lower price, don't seem to be too successful.
Certainly, you wouldn't want to mention the low mileage on your vehicle. Any inference that the car might be worth more than average will lessen their desire to cut a deal.
It never hurts to try!
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I absolutely have overpaid for this car, probably by about $2,000, if my calculations are correct. A 48-month lease is a bad idea; I know that now. If I knew I'd buy the car, I could've negotiated a better financing deal anyway. Oh well. But I'm going to go with what you've all said--buy it out and drive it for a while.
I'll let you know if Toyota offers a lower amount.
Thanks!
Any help would be greatly appreciated
There should be a lease end or pre-lease end inspection and they will see the low miles at that time. About the only hope is that they will contact you about buying the car and you can play hard to get ("Gee, Saturn is out of business I don't know that I would want to buy the car - for sure not for $6k").
Keep in mind this is the beauty of the lease - the bank took the chance on the future value of the car and not you. Saturn going under may kill the value of your car, but the bank has the pain and not you.
I know Honda Financial and US Bank have no problem with it as I have sold cars while on lease to them. Sometimes at the end of the lease, but often in the middle of the lease.
A payoff quote from Infiniti or Toyota FS says you have to go through a Infiniti / Toyota dealer to buy the car. This is true in my state if you are buying the car for yourself - you have to go through *A* dealer because of the taxes and title rules that apply. They make it sound like you have to go through THEIR dealership ONLY.
So if I wanted to sell an on lease car it to Carmax or any other dealer (assuming positive equity) then is it OK or will TFS/IFS only sell the car to ME?
Just wondering...
Check here at Edmunds, NADA, and KBB to see what the trade in and retail values on your car with its current mileage and condition. Is it a good deal compared to your lease end purchase price? If not, then you might just turn it in and think about something else. It may be easier to buy the car off the end of the lease, but not a good idea if it is a bad buy.
Have you had you pre lease end inspection yet? Any problems? Over miles?
'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
The $750 fee sounds really high, but it could be $300-400 is the Ford Credit buy out fee and the other is for business taxes and the trouble of selling you the car (AKA profit for the dealer). It could be the whole $750 is dealer profit. Check with other Ford dealers including the one that leased you the car and see what they say.
Honda Finance, for example, will accept a check direct from the lessee for the buyout but then you pay the title and taxes when you transfer the title. They also discount the buyout by $500 if you prefer to go through a dealer - this way the dealer makes $500 and you get the car for the buyout price (everyone is happy).
Every area is different, but in theory any licensed car dealer could buy the car from Ford Credit and sell it to the lessee and charge as little or as much as they wanted to. No need to wait until lease end either, unless the lease is at some smoking low rate.
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In the last six months or so, I've had to deal with a few lease-end purchases (or attempts to purchase)- one for a friend and the other was for my cousin.
My friend had a 3-year lease on a 2007 Saturn Aura XR. The purchase price at lease end (according to the lease contract) was in the mid $16k range. Edmunds TMV and KBB priced it at less than $14k (Dealer Retail Price), so the purchase price in the lease was at least $2500 more than the car was worth. I tried to negotiate a purchase price that was at least $500 under the Dealer Retail Value ($13,500 was the goal), but they wouldn't go a penny below $16k!!! They discounted it about $600 but wouldn't go another penny lower!? Even after I reminded them that it would cost them to prepare the car for resale, then sell it for FAR less than Dealer Retail, still no luck! It made no sense whatsoever.
I went with her to turn it in at the specified local dealer (a huge Chevrolet dealership) and I didn't give them a chance to even ask if she was interested in keeping it. We just turned it in, I did a walk around with them to verify the condition of the car and they signed off of the return.
As we were going thru the whole process, I spotted two Saturn Auras in the Chevy dealer's used car section with 'GM Certified Pre-Owned' banners across the windshield. She drove off the lot in a 2009 Aura XR with 33k miles (10k less than the lease car she turned in) and it had a Moonroof which her '07 didn't. They had it priced At $14,675 and I got them down to $13,500 on it. The '07 probably won't sell for more than $10k at auction, but that's their problem! She ended up with a lot more car for the money.
My cousin had a 2007 Lexus GX470 and the 36-month lease ended back in August. She lives in L.A. and I flew out at the end of June to visit and help her with some things, one of which was deciding whether to buy the Lexus or turn it in and get something else.
The purchase price in the lease contract was actually a bit low at $28,300. Trade-in value per Edmunds and KBB was at least $32k. Still, I called Lexus Financial and managed to get them to knock $1000 off the price and waive all fees associated with the transaction, making the price $27,300! I advised her to buy it at that price even though she didn't really want to keep it. At that price, she would have several thousand dollars in equity to use if she sold it or traded it in.
Two days after she purchased it, Carmax offered $31,700 for it. We test drove a new Mazda CX-9 Grand Touring that afternoon and they agreed to match the Carmax trade-in offer of $31,700, so she essentially had a $4400 down payment on the CX-9.
I was amazed that they wouldn't discount the Saturn and almost as surprising that they WOULD discount the Lexus! But it worked out well for both of them....but I'm trying to keep my family and friends away from leasing whenever I can....it's a major pain in the @ss!
As information, I am significantly under lease mileage, about 10K miles less than the contract. And the 3 months lease payment waiver is reflected in my pay off quote, so I think the dealer is not offering anything extra.
The car is in excellent condition and we have maintained well.
Good news it's that it's a Honda, and they hold value pretty well - if you buy it and decide to trade in a year from now, you *might* still be better off than paying the over-mileage charge.
To check how the residual compares, you can search used vehicle listings to find what prices are being asked for the same vehicle. You can also head over to Real-World Trade-In Values and post info about your van & location to see what others think.
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According to Edmunds and KBB, the trade-in value on a 2008 EX-L with 55k miles is in the $21-$22k range. So I'd say buying for $18,300 is a very good purchase price and you'll save $1000+ in mileage overage charges!
'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
Keep in mind that for most of us, sales tax is due to transfer the title from the lease bank to a private party. So the $27,300 would cost me $29,211 plus title fees. Still less than Carmax gave for the car, but the tax bit does hurt. It that case, you could have sold CM the car for the normal buyout direct and pay no tax and netted $3.400 without spending a penny of your own money.
A good lease deal is a good deal, just like a good finance deal is a good deal. There are LOTS of folks who do not understand how to work a good lease deal and that gives leases a bad name.
If either of these was a good lease deal then they were paying a lot less per month than buying the car and the lease bank was taking all the risk. Think how upside down your friend would be if they PURCHASED the 07 Aura new on a 5 or 6 year note. The payments would have been higher each month and if they wanted to sell or trade they would be way upside down.
If your cousin had financed the Lexus it would (likely) have been a lot more per month - if you got a good lease deal. The car would still sell for the same amount now, but they would have paid more for it over the last 3 years so their net could have been less.
Bad deals are good for no one, but good lease deals can be really nice...
Once they see you are over miles (pre-lease end inspection) all thoughts of negotiation will vanish if they even had any. You owe them for the over miles and they will collect for them. Honda gets either $0.15 or $0.20 for over miles (it is in your contract and is based on MSRP) so 10k miles is $1,500 or $2,000 in charges.
So if you turn your Ody in and nothing else is wrong, then you pay the miles and walk away.
If you choose to buy the Ody, then you pay the $18,300 agreed price plus taxes and title fess and you drive away. You don't state the trim level or package, but right now an 08 EX with 55k is worth about $18k. If you have a higher line model, then more value there makes it a nicer deal. Keep in mind values will probably be lower come March than they are now. Only buy it if you really want to keep it and it is a good value (including avoiding the over miles fee).
Take it to Carmax if you have one local and see what they will give you for it. Anything over the current buy out price (call Honda Finance or look it up online) is profit to you - just sell them the van. Works the same at any licensed car dealer, if they will cover the buy out then sell it to them. Keep in mind your $2k or $1.5k over miles charge at lease end. So if you get within $500 or $1k then pay them to take your van and come out "ahead" (of just turning it in and paying).
As sebring said, the best way is to work a deal with a dealer to buy the truck off of lease and sell it to you. Someone from your company would give the dealer permission and power of attorney to buy the truck from the lease bank, you would then buy the truck from the dealer. How much will they charge for this? I have done it for as little as $300-400, but I would bet it would cost you a whole lot more - if you can even find a dealer to handle it. It would help to know a dealer or have that owed you favors...
The transaction takes place between the lease management company (in Chicago) and the individual employee who is purchasing the vehicle (in this case, located in Georgia). My mom, sister and step-dad all drive former McFleet cars. My mom has a 2007 Explorer Eddie Bauer (with a 38k MSRP new) that was 15 months old and had 70k miles on it when she bought it for $15,500. Step-dad's 2008 Fusion SEL V6 was only $11k when it was 22 months old and had 63k miles.
The only part of the purchase and registration process that is different from usual is that the seller (leasing company) doesn't collect sales tax for Georgia. So a visit to the nearest Georgia DOR office to pay the tax due is required before the car can be registered and a tag issued.