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Or you could buy it from any Honda dealer and AHFC gave them a $500 discount on the buy out as "profit" for selling you the car for buyout plus taxes and title.
Does it still work like this?
Thanks
I imagine they have done this to give the dealers a shot at add-on sales, etc. After the dealers likely lobbied for it...
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"Attractive financing rates are available for lessees who wish to purchase a leased vehicle. Ask your dealer for details about our Lease to Retail Rollover program. "
"Lease-End Process: Option 3
Purchase your leased vehicle.
If you decide to buy your vehicle, there is no need to have it inspected. Just follow these easy steps.
Step 1 - Obtain a Payoff Quote: To find out your purchase amount, you can get a payoff quote 24 hours a day, 7 days a week through our online Account Access or by calling our Express Payoff System at 1-800-708-6555.*
If you call for your payoff information by telephone, you may request, by mail, a written confirmation of your payoff quote, along with instructions and required documentation.
* The Express Payoff System cannot provide quotes on lease accounts in which the vehicle is garaged in AL, AK, AZ, or IL, or if certain conditions require that you speak with a Honda Financial Services Representative, Monday through Friday from 9 to 5 CST.
Step 2 - Notify us of your intent to purchase: Contact the Lease Maturity Center and let us know you intend to purchase the vehicle.
Step 3 - Provide payment and required documentation: Mail the full payoff amount (including state sales tax, if any) to the address below. If there is no outstanding balance on your account, the title will be mailed upon receipt of payment. It is important to verify Honda Financial Services has your current address on file to ensure you receive your title.
Because federal law requires that you disclose the mileage to us in connection with the transfer of ownership, you must submit a signed and dated Odometer Disclosure Statement.
Your check and Odometer Disclosure Statement should be mailed to:
Honda Finance Exchange, Inc. *
P.O. Box 70252
Philadelphia, PA 19176
If you are using a special delivery service such as FedEx, use the following address:
Honda Finance Exchange, Inc. *
Lockbox # 70252
101 N. Independence Mall East
Philadelphia, PA 19106
* Notice is hereby given that Honda Lease Trust has assigned all of its rights (but not obligations) to purchase and/or sell this vehicle to Honda Finance Exchange, Inc. pursuant to the Sub-Servicing and Master Exchange Agreement. Notice for New York and Virginia residents: The Trust designation is HVT, Inc., as Trustee for Honda Lease Trust.
Step 4 - Re-register your vehicle: State law requires that you transfer the title and vehicle registration into your own name and pay any applicable sales tax and/or fees. This can be completed at your local Department of Motor Vehicles."
The Dealer stated I would pay the Residual Amount, State Tax, Tag Transfer fees AND a $500 Dealer Fee.
I ask if any of this was negotiable, and they stated it was not.
Is this normal? A $500 Dealer Fee?
You can call around and see if any local caddy dealer will do it for less.
Is it your leased car? You may be able to purchased it direct from the lease bank and not need a dealer. You would pay tax and title at the time you registered the car.
Any dealer could purchase it at lease end and sell it to you, but most are going to want to make some money for their time and paperwork.
I am very pro-lease, but in a situation like this everything works so much better if you were doing a purchase.
Call the red carpet lease folks and tell them you are interested in buying your car at lease end if they can fiance it for you. If that does not work, then try for something cheap like a Kia or Hyundai. If that does not work, then try for a cheap, but reliable used car like a Honda Civic or Fit or maybe Accord.
I work at a Honda dealership for 4 years now, and that's what I tell all my customers who's on a lease, and have mileage over the allowed limit.
My 328i is nearing end of lease and I've been offered a residual value of 21,000. The vehicle comes with no additional package, just the basic model + silver color + ipod adapter .... Edmunds TMV (private party) is exactly 21,000.
The car is well within the mileage limit and in good condition.
Any scope to lower the residual or get some other incentives such as extended warranty/maintenance etc ? Having the dealers compete with one another will definitely help but my question is can I go to a dealer different from whom I originally leased the vehicle ?
Any advice from the experts would be very much appreciated !
thanks
I did find out there is no $500 incentive / discount for a dealer to handle this, so every dealer I talked to was going to charge me their full doc fee to handle the transaction (most were not really interested in handling it).
If this is a closed end BMWFS lease the buyout terms are spelled out in your lease agreement. What is the residual buy out price lited there? Who "offered" you the $21,000?
Most all the lease banks carry residual insurance these days, so there is no incentive for them to discount the buyout to you.
What a lot of BMW lessees do so is turn it in and buy it back from the dealer as a CPO car. BMW has no other factory extended warranty you can buy, so this can be smart deal. You would work with the used car manager (usually) at your BMW dealer. After you turn it in, that dealer will get an offer to buy the car (before it rolls to auction), if you agree to that price plus dealer markup, CPO cost, and cost to fix anything to get the CPO wearranty, then you would buy it back CPO. The offer would be residual or less but not more than residual (AFAIK). You should shop several BMW dealers to compare prices and markups to do this type of deal.
The dealer lowered the residual from 22K to 21K. As I understand the residual value + tax should be my buy-out price ?
Doesn't BMW sell extended warranty and maintenance packages seperately. I'm considering buying one or maybe both of the above.
Why should I have to pay to fix anything or for the CPO inspection when I've been the only owner ?
In my particular case, does CPO offer any benefit? I'm not looking to sell the car in the near future and already have competitive financing.
BMW sells extended maintenance plans (pre-paid maintenance) to take you past the factory free period. They (BMW) does not sell any factory backed extended warranties - many of the dealers do but they are not BMW backed and accepted everywhere and perhaps a waste of money. That is why folks do the CPO trick - to get the long CPO warranty.
CPO warranty is not free, the dealer has to pay BMW for it, Maybe $1k or more for a 3 series CPO - this is the cost of the warranty only. They also have to pay techs to do the inspection an pay for parts and labor to fix anything not right on the car. For example: Your car may have had enough tread to not cost you on lease turn in but the BMW CPO rules require more tread - so the dealer has to install new tires to get the CPO warranty - so your cost goes up by CPO + inspection + tires + labor.
"Every Certified Pre-Owned BMW has coverage for up to 6 years or 100,000 miles" and free roadside assistance for that same period.
If you are a BMWCCA member (and have been for at least a year before purhase) you get $250 or $500 back (m models) when you buy a CPO BMW.
Years ago I had a BMW 740IL coming off lease at a time that they were apparently choking on many others coming off lease. Someone at the company called me to try to interest me in purchasing my car instead of turning it in. I hadn't even been considering doing that but the deal they agreed to ($5000 below my residual plus an extension of the warranty to 100,000 miiles) was too good to pass up.
I realize this was undoubtedly an unusual moment that I happened to fall into but I just point out that if you happen to find yourself with a car coming off lease at a time that the used car market (for that vehicle) is weak it may certainly be worth the effort to try to negotiate aggressively.
Years ago, that was the case. Now, most all the lease banks carry residual value insurance and / or use third party remarketers to handle the end of lease. With either, the odds go way down that you can get any sort of a discount or deal.
I agree that there is no reason not to try for a better deal, but that is just not very common these days.
My car has no special options. My lease ends Sept. 16th. Mileage is 24,698, but have damage to car in excess of $1500 allowance for 3 separate instances. Payoff amount is $15,704.53. Am trying to negotiate a financing deal with dealership I originally leased car from, and submitted my application 2 days ago, but haven't heard back from them as yet.
What is the best way to negotiate the best financing available? Should I also reach out to other dealerships in my area? I realize that my rate would be based on my credit standing.
Thanks for you help.
Dorothy
You may not even have to use the dealership.
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I planned on checking with banks/credit union for comparison, but am surprised that no one has gotten back to me as yet.
Any other ideas are welcome
Once you have a check in hand (or money in the bank) you just do an odometer statement and mail it in with the payoff check to Honda Finance and they send you (or the bank) the title. Otherwise, you have to go through a dealer who will likely have a higher rate and may charge you doc and other fees. You can go through any Honda dealer, not just the one you leased from. You could also try to sell your to any dealer, like Carmax, if the value exceeds the buy out. Having damage to it may preclude this option.
So I complete the bill of sale, purchase and financing contracts on 8/31 that show trade in of 14,900 and pay off of 14,900. However, it was the end of the day and for some reason the dealer had a computer glitch and I was unable to sign the electronic "Dealer trax" system they use. So as it was around 10pm, I agree to comeback on my lunch break for 5 minutes and finish it up. I went home with the new vehicle and turned my old vehicle over to them. Afterall, I did have the bill of sale contract and all the other paperwork.
When I went back today, I was there for more than I bargained for. Because I had made a payment on my lease on 8/31 the payoff had apparently dropped to around 14,000.00 with the leasing company. And I was told that I need to sign another bill of sale for the updated payoff amount. When I looked at the new bill of sale the trade in price was now knocked down to 14,000.00 again matching the lease payoff.
I refused to sign the new bill of sale and told them we have a done deal and they can work the accounting out themselves. I was rather livid.
I did not request the difference at the time, but the more I think I believe I am entitled to the difference between the original 14,900 on the bill of sale as the TRADE IN VALUE, versus the 14,000 that was the lease payoff amount. Am I wrong in thinking this way? and what would be the best approach to getting my money back? I feel like I should hire a lawyer or write a letter myself to recoup the difference. Any advice?? Thanks in advance.
'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 said, if they were willing to give you $14,900 before they should honor that. It is what is in your sales contract. If they will not, then give them back their car and unwind the deal and start over with another dealer.
Then the next day they tried to change the paper work.
Why would I unwind the deal at this point? I have the new car, I like the new car. I'm not going to hold there feet to the fire over the difference, it's just unprofessional to make a CUSTOMER sign a second bill of sale after agreeing on numbers and executing a contract the day before.
You say Honda Finance is on the title as lienholder? I don't really understand that part unless you financed the buy-out from Honda Finance as well.
Putting aside all tax issues, what is the quickest way of doing this. If I FedEx a certified check to BMWFS for the full buyout amount, will they FedEx me the signed title the next day? And, if they do, can I sell the car to the guy that day - even though I havent yet had DMV transfer the title to my name?
Any help is appreciated
thansk
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Second, you CANNOT just sign the title over to your buyer, you first must title the car in your name, pay tax and reg fees on it, and then sell the car to your buyer.
If nothing else because BMW FS is almost certainly not going to send you an open title, it will be reassigned to you.
Jumping title is illegal in any state that I am aware of.
You might be better off to try to find a licensed dealer to handle the sale for you. I have done this a few times (but not lately) and paid $400 or so to the dealer to handle it for me.
It might also net you more money to sell your car to a dealer (assuming you have high taxes like me). Anything carmax or a dealer on autotrader (for example) gives you over the buyout amount is in your pocket - no taxes.
'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 $1,000 mark-up could be construed as fraud assuming you did not agree to that. But it sounds like you signed the docs and were aware of the markup at that time. I'm not sure how they could squeeze an extra $1,000 into the deal without you knowing/signing as such. There's no reason you couldn't have used your own financing as well.
If they'll give you $1,000 then it sounds like you did alright. Pay it down on your note and forget about it.
I know that on any of my leases, it says I can buy the car for a stated amount. There is no language that says the only way to do it is through a third party (the dealer), who can then add charges for their "services".
Now, I know there are makes/banks that won't let you do it any other way, but I'm betting if you had a contract lawyer that wanted to make a point, they could put a stop to this..
/rant over
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It just seems wrong to get extra charges that aren't part of the contract..
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Banks are usually better to deal with than the captives. I've leased $10M in equipment in the last few months and the independent banks beat that tar out of (insert major equipment manufacturers captive finance here) in both terms and contract stipulations. Hard to turn away the captives on vehicles though due to the heavy subsidies they sometimes offer.
mileage, saying a new car or lease would have to absorb 11K with their taking " a hit" of 6 thousand, along with my paying sticker price too. So I said I would simply pay 17K and buy my leased truck. Said he had to track it down, then 2 days later, said it was sold and I would have to go with paying 11 K cash up front and then finance the full sticker for a leased or new car. I think it is consumer fraud and don't know who to contact or if I have any recourse. I have very little money as it is let alone a ton of money to pay a lawyer and still have to possibly pay 11K etc. Advice? thanks!!!
Perhaps the original selling dealer (out of state) may have done it for less, but that is an 8 hour round trip.
I had heard that Honda discounted the price to the dealer by $500 to let them do it for "free" but every dealer I asked denied any such discount.
Some lease contracts have a fee they charge if you turn the car in, some charge you if you buy it as well.
After the inspection was done you should have known how much you were going to owe for damage and miles, you should have made your choice to buy it out for the residual price written in the contract (plus possibly some fees).
Sounds like the dealership did not treat you fairly, but nothing they did sounds legally wrong - you turned it in and they sent it to the auction or bought it from the lease bank and resold it.
Take a look at your loan agreement to see if there is any sort of penalty or fee for early pay-off. If not, start shopping around for another loan at a lower rate. Most major banks and finance companies offer auto "refi" loans at decent rates. If you have access to a credit union (or can join one), explore that option for a loan as well.
Good luck!
Nearly 3 years ago I leased a brand new 2009 Audi A4 convertible. Thinking that I would drive the car more than I actually did, I opted for 15K miles per year. I am now 5 months away from the end of the lease and I only have 20K on the odometer. The car is in excellent condition, has never been in an accident and has been garaged kept and only driven on weekends.
The residual price is approximately $24K and looking online I should be able to sell the car for $28K-$29K without much hassle. Should I do it? Are there any other costs that I should consider that will eat into my profit (i.e. taxes, fees, etc)? Am I better off trying to turn the lease in early and negotiating with the dealer since the car is clearly undervalued for the mileage? Also, is the residual price negotiable?
Thanks in advance for your advice.
Further, unless you are in a warm locale selling a convertible when winter is around the corner might prove difficult.
Carmax shows 2 09 A4 drop tops right now, one in b'ham has 19k and is $28,147 the other in GA has 10k and is $31,998, Both are 2.0T automatics.
If yours is similar to the one in b'ham then I would say $27k or less. You would still net a profit, but after taxes not as much as you would like. More for a quattro model (depends on the location) and more for a 3.2 model.
I would take the car to Carmax now (if you have one around) and see what they will offer for it and compare to the current buy out price. No need to wait for the lease to end (and colder weather) unless you want to drive it the last months yourself. By avoiding the last 4 or 5 payments of $xxx you save and they may offer you $25k for it now (2.0t). If you don't like the offer, keep the car and try again at lease end. Also try the autotrader dealer buying thing online or see if the used car manager at various Audi dealerships has any interest.
I live in NJ and the car is in fact a Quattro Sport model with basically every option but nav.
It's always my theory that you should buy a car at the end of someone else's lease.....
Even though you have a Quattro, probably better to sell the drop top before the really cold weather hits or hang onto it until it warms back up.
Don't forget tags and personal property tax if they apply in NJ. Owning the car to resell it may mean you have to tag or pay property tax on it.