Buying out a lease

wik1982 · May 2016

Hi all. I am in a bit of a situation and trying to figure out my best option(s). Here is the situation:

I am nearing the end of my 2013 Nissan Altima Lease. I have been very frustrated and am strongly leaning towards not going with Nissan again. I have 2 payments remaining. I am torn between staying with Nissan and picking another vehicle or going elsewhere. I was told at the time of my last lease that if I leased again with Nissan that I would get automatically bumped to their "AAA" rating (assuming I didn't miss payments, which I did not).

So, I feel that lease wise I maybe able to get a "better deal" with Nissan. That being said my employer offers discounts through Nissan, GM, BMW, Ford that I feel could help to create more value. I am a bit confused on the lease option though...looking at a local Lexus dealer they have an advertisement for a Lexus IS250 for 324/month where I have an Altima that has a much lower MSRP and pay that amount. Did I get an awful deal? Did I mess up? When I last visited they offered me an Alima for a little under 300. I felt that the credit boost and lack of negative equity should have lowered it more than that. Am I crazy?

My last option (in my mind) is buying a used car. My concern is even though my car is in fantastic shape and well under my mileage limit, from the value estimators, it seems my car is valued well under the residual price. The other option being buying out the lease but then I believe I have the last 2 payments plus the "displacement" fee and who knows what else.

I'm kind of stuck...I don't want to go into a dealership being ignorant but I can't really get information or answers unless I go into a dealership lol. So, if anyone has experienced this or has any input and suggestions with useful ideas I would very much appreciate it. If any additional information is required just let me know!

--Wik

Mr_Shiftright · May 2016

Well you don't want to buy a car well under residual value--that's like telling the seller "OK, I'll give you $2000 more than it's worth!"

So if you're sure about those numbers, then you've just answered your question about buy-out.

As for leasing again after turning your car in, you can always come back here with the numbers they are offering you and let us help you figure out if it's a good deal or not.

You can't go by lease ads you see for other makes, because there is so much they don't make clear in those ads. The "up front" money is usually in small print, and the "per month" usually doesn't include other fees, taxes, etc. So don't compare those advertisements with your actual current lease payments.

You'll need to know the MSRP, the "cap cost" or ACTUAL price you are paying, "cap cost reduction" (any down payment you give them to reduce the cap cost), the residual value (usually a percentage) and the money factor (the interest rate). Also we would want to know the mileage limits and where you live.

Michaell · May 2016

Not much I can add to that.

I'm sort of in the same situation with my Hyundai lease - 5 payments left but pretty well upside down if I decide to purchase it (option 1).

Option 2 is to get another Hyundai lease. OK, they make some decent cars - I like the one I'm driving now, and, like you, the local dealer will make it easy to swap once my lease is up. And, the mileage charges and lease end costs may go away.

Option 3 is to go with a different brand. Oops, I'll be over on mileage by that time, so I'll owe Hyundai that amount plus the disposition fee. So, several hundred to over $1000 later, I'll be free to go to Mazda, Toyota, etc.

Option 4 is to buy used. Not a huge fan of used cars (personal preference), and a non-starter with She Who Must Be Obeyed.

wik1982 · May 2016

Mr_Shiftright said:
Well you don't want to buy a car well under residual value--that's like telling the seller "OK, I'll give you $2000 more than it's worth!"

So if you're sure about those numbers, then you've just answered your question about buy-out.

As for leasing again after turning your car in, you can always come back here with the numbers they are offering you and let us help you figure out if it's a good deal or not.

You can't go by lease ads you see for other makes, because there is so much they don't make clear in those ads. The "up front" money is usually in small print, and the "per month" usually doesn't include other fees, taxes, etc. So don't compare those advertisements with your actual current lease payments.

You'll need to know the MSRP, the "cap cost" or ACTUAL price you are paying, "cap cost reduction" (any down payment you give them to reduce the cap cost), the residual value (usually a percentage) and the money factor (the interest rate). Also we would want to know the mileage limits and where you live.

Says residual is $13,788.30 and the value given on here and KBB and such is between 9 and 11k.

The original lease (current 2013 model) had a gross cap of 24,941.26 with adjusted cap of 24,287.51.

So, this is the information, in regards to what you mentioned, that was provided to me back in November (I know things change, but I also want to make sure this is all the info you need/want). I know November was 6 and a half months but, at least this gives me an idea on the type of offer I am getting.

I'm in Toledo, Ohio. My current car has about 26k (had 36k for the 3 year lease) on it. This is the offer I got back in November of 15.

Nissan Altima, 2015

MSRP: 24,985
Init Cap Cost 22,484
Rebate 3,450
Misc 1 1,944
Adjusted price 20,978
Total Taxes 791.66
License Fee 120.00
ACQ Fee 595.00
Doc Fee 250.00

Gross Cap Cost 23,245.74

36 month lease zero down would have been 306.71/ month.

1,000 down would be 278.11
2,000 down 249.50
3,000 down 220.89

If you need anything else, let me know!

wik1982 · May 2016

Oh and I also forgot to mention that with my employer they offer I believe 1,000 or 1,500 "additional off of best negotiated price" I believe was the wording. I will check that at home ASAP, not sure how or if at all to factor that in.

Michaell · May 2016

wik1982 said:
Oh and I also forgot to mention that with my employer they offer I believe 1,000 or 1,500 "additional off of best negotiated price" I believe was the wording. I will check that at home ASAP, not sure how or if at all to factor that in.

If your employer uses VPP, then it's a fixed price; no negotiation allowed.

The numbers from your above post are certainly different - different residuals, different incentives. So, what was true in November is in no way true in May.

wik1982 · May 2016

Yup, I know i need a recent version but i thought at least giving this example would give me an idea on quality of offer. Ill be going in tomorrow to get an updated version.

With the VPP i believe that is what it is...any input on how it factors in?

Michaell · May 2016

wik1982 said:
Yup, I know i need a recent version but i thought at least giving this example would give me an idea on quality of offer. Ill be going in tomorrow to get an updated version.

With the VPP i believe that is what it is...any input on how it factors in?

Like I said, it establishes a fixed price, before incentives. What I don't know is if you can beat that price with good negotiation skills.

wik1982 · May 2016

Any feedback on this from my earlier post....? Does it prove anything in the sense of a good or bad deal?

I'm in Toledo, Ohio. My current car has about 26k (had 36k for the 3 year lease) on it. This is the offer I got back in November of 15.

Nissan Altima, 2015

MSRP: 24,985
Init Cap Cost 22,484
Rebate 3,450
Misc 1 1,944
Adjusted price 20,978
Total Taxes 791.66
License Fee 120.00
ACQ Fee 595.00
Doc Fee 250.00

Gross Cap Cost 23,245.74

36 month lease zero down would have been 306.71/ month.

1,000 down would be 278.11
2,000 down 249.50
3,000 down 220.89

wik1982 · May 2016

bed time bump, if anyone else cares to give their advice it would be greatly appreciated.

Michaell · May 2016

wik1982 said:
bed time bump, if anyone else cares to give their advice it would be greatly appreciated.

I guess it doesn't matter what we think .. this is a deal that was offered 6 months ago.

I suggest using the "make / model / year" pull downs at the top of the page to link to the pricing tools. That should give you a sense of your target price for a new Altima.

wik1982 · May 2016

So i went in, because i am trying to get a cheaper payment i am looking at a sentra. I have 2 models....they claim they are coming in cheaper than the VPP discount. Thisnis scenario 1.

Image: https://us.v-cdn.net/5021145/uploads/editor/lz/raqagqhf9lg4.jpg

wik1982 · May 2016

And here is option 2...

Image: https://us.v-cdn.net/5021145/uploads/editor/lj/rbyzxc9ufg9p.jpg

Michaell · May 2016

These are lease quotes for a Sentra? Wow, that seems expensive.

wik1982 · May 2016

Ya i man ive never owned one so not exactly sure....thats why i wanted to check....and obviously my big goal was price reduction.

Michaell · May 2016

wik1982 said:
Ya i man ive never owned one so not exactly sure....thats why i wanted to check....and obviously my big goal was price reduction.

How much negative equity is there in your current lease? May be better to think about a used car that is a year or two old.

wik1982 · May 2016

When you say negative equity in a lease, didnt kmow there was sucha thing....i only have 2 payments lwft but the pull ahead program will cover them they said.

Michaell · May 2016

wik1982 said:
When you say negative equity in a lease, didnt kmow there was sucha thing....i only have 2 payments lwft but the pull ahead program will cover them they said.

Oh. I see. I thought you were trading it in.

Those numbers on a Sentra lease seem very expensive.

wik1982 · May 2016

I talked to him' he said what woukd it take i said 245. He said he would do it (made an apt for tomorrow). Thats for yhe fully loaded SL.....seem bad still or...?

Michaell · May 2016

wik1982 said:
I talked to him' he said what woukd it take i said 245. He said he would do it (made an apt for tomorrow). Thats for yhe fully loaded SL.....seem bad still or...?

What is the sticker price on one of those?

wik1982 · May 2016

24575 is MSRP

Michaell · May 2016

wik1982 said:
24575 is MSRP

If the $245/mo includes tax and there are no further obligations on your current lease, I'd say that is a pretty good price.

Buying out a lease

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