What are the fees when buying your leased car?
I'm interested in buying my car at end of lease because I love it, it's way under mileage, and is very well taken care of with minor scratches and dents. The Canadian black book value is thousands more than residual.
In addition to residual and HST, they're charging $500 admin. and $400 "lease buyout" fees. Seems pretty hefty and I could call BS out to them, but how am I suppose to argue something like this when a) I do want the car and b) they want the car too (i.e. they would love it if I just returned it so they could sell it and make more of a profit)
My lease agreement says, however, that the option to purchase price is "the residual value plus applicable taxes, plus the cost of all governmental or other regulatory fees and taxes and all safety standards, emissions, and other required certification incurred in connection with your purpose of the vehicle and the transfer of ownership of the vehicle to you." The dealer made it seem like the $400 lease buyout fee is the cost of transferring ownership - thoughts on this?
The only things I can think of as bargaining chips is a) bringing my car for maintenance elsewhere; b) getting a loan somewhere else (but Infiniti Financial does have the most competitive rate so far)
Any help or comments on these extra fees and how to bargain them down would be very much appreciated. Thank you!
Best Answers
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kyfdx
Moderator Posts: 261,083
Are you required to go through the dealer to buyout the car, or can you just do it directly with IFS?55inthe54 said:Hi all,
I'm interested in buying my car at end of lease because I love it, it's way under mileage, and is very well taken care of with minor scratches and dents. The Canadian black book value is thousands more than residual.
In addition to residual and HST, they're charging $500 admin. and $400 "lease buyout" fees. Seems pretty hefty and I could call BS out to them, but how am I suppose to argue something like this when a) I do want the car and b) they want the car too (i.e. they would love it if I just returned it so they could sell it and make more of a profit)
My lease agreement says, however, that the option to purchase price is "the residual value plus applicable taxes, plus the cost of all governmental or other regulatory fees and taxes and all safety standards, emissions, and other required certification incurred in connection with your purpose of the vehicle and the transfer of ownership of the vehicle to you." The dealer made it seem like the $400 lease buyout fee is the cost of transferring ownership - thoughts on this?
The only things I can think of as bargaining chips is a) bringing my car for maintenance elsewhere; b) getting a loan somewhere else (but Infiniti Financial does have the most competitive rate so far)
Any help or comments on these extra fees and how to bargain them down would be very much appreciated. Thank you!
It looks like you are reading your contract correctly, but if IFS insists you go through the dealer, and they tack on a fee, then there isn't much you can do about it. Unless of course, you know a lawyer that will take a $400 case on contingency..
That sucks, though, and isn't right.Edmunds Price Checker
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Answers
The contract says "Arrangements for the purchase of the Vehicle may be made with the Dealer or an authorized dealer as otherwise designated by us."
so looks like can't go through IFS directly but I can try. Otherwise, it does suck and I can try threatening to do maintenance elsewhere...not sure what else I can try. Anybody else have any tips on dealing with this? cheers