Any of you honchos ever done this? Can I bargain with the Dealer about the purchase price? Many thanks for any tips or suggestions.
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Been a long time but in my experience they don't want the car back. They have the expense of transporting it and selling it.Any of you honchos ever done this? Can I bargain with the Dealer about the purchase price? Many thanks for any tips or suggestions.
I'm assuming it is a lease return not your personal lease but they may be the same. We purchased a lease returned vehicle from the dealer and it was no different than purchasing a new car . If the price is right, go for it. Recognize any expired warranty will not be available. The dealer has to obtain and sell so many lease returned vehicles each year. He picks the vehicle and puts it on his lot for sale at a price that he can obtain a desired ROI. The price is usually somewhat negotiable.Any of you honchos ever done this? Can I bargain with the Dealer about the purchase price? Many thanks for any tips or suggestions.
based on the title it must be the OP's personal lease return, otherwise buying a used car off someone else's lease is no different than any used car negotiationI'm assuming it is a lease return not your personal lease but they may be the same. We purchased a lease returned vehicle from the dealer and it was no different than purchasing a new car . If the price is right, go for it. Recognize any expired warranty will not be available. The dealer has to obtain and sell so many lease returned vehicles each year. He picks the vehicle and puts it on his lot for sale at a price that he can obtain a desired ROI. The price is usually somewhat negotiable.
Been a long time but in my experience they don't want the car back. They have the expense of transporting it and selling it.
They aren't going to take a bath on it but there is room for negotiation.
Need make/model & whether you’re at/over mileage cap....
If you’re sitting on a vehicle that rots on a lot, you’ve got some bargaining power ....
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Any of you honchos ever done this? Can I bargain with the Dealer about the purchase price? Many thanks for any tips or suggestions.
Might want to check the Ohio St boards. Their players have lots of experiences with leasing/ buying cars. The good news is it appears to never cost them any money so that’s great news for you.
Correct, the original lease was in Michigan for 2 years. Car had just under 20k miles when my local dealer bid on it through the Ford leasing program. car was sent to Pa to the dealer where he then put it on the lot for sale. I got a great price on an almost new vehicle.based on the title it must be the OP's personal lease return, otherwise buying a used car off someone else's lease is no different than any used car negotiation
Need make/model & whether you’re at/over mileage cap....
If you’re sitting on a vehicle that rots on a lot, you’ve got little/no bargaining power ....
Offer $11k and see what they counter with.I’ve got a ‘17 Tucson lease expiring in December. We obliterated the mileage limit and have 64k on it instead of 36k. We like the car but I’m not enthused about paying 17k for a car that’s worth about 11k. What would you recommend?
Any of you honchos ever done this? Can I bargain with the Dealer about the purchase price? Many thanks for any tips or suggestions.
Offer $11k and see what they counter with.
Assume you'll owe $6k+ for overmileage, tires, etc if you turn it in.
Another option, not recommended, but dealer will jump on it .... roll over what you owe when you turn in the car into a new lease
I don’t recommend it, but if you don’t want to buy the car, and don’t have the cash to pay for the excess mileage, you may be able to get a new car (either buy or lease), and the dealer/bank can add the amount you owe for the excess mileage into your new loan/lease.Thanks! Will definitely give that a shot.
What do you mean ‘roll over what you owe’ in option #2? Thanks
Call the leasing company that you pay the bill to. Tell them you like the car, and are interested in purchasing it, but not at the residual price. If they don't make an offer, throw out a really low offer and see what they say. Whatever number they give you, tell them you will think about it. Call back in a few weeks and repeat, except starting at the new number. Repeat until they don't go any lower, you've reached their bottom price. Then decide if you want it at that price. You should ideally start this 4-6 months before the lease expires so that you have plenty of options to compare it to. As others have said, they do not want the car back.
Never reveal that you like the car...
I'm in this situation now, I checked with the leasing finance company and found I could extend the lease for up to six months at the original lease price, would get corresponding miles added and during the extended lease period all lease payments go toward reducing the residual (payoff). Reason for doing this is I like my car but the residual is too high and nobody wants car. Was told by several dealers that there are too many 2015, 16, 17 leased cars being returned and the dealers don't want them.Always tell them that you like it. You want them to think there is a deal to be made if they can find it. What you never want to do is tell them it is your only choice, or by far your most favorite. I let them know that too, and I attach time frames when I get serious. Something as simple as a car are a dime a dozen so I never get emotionally attached to one. Its also important to remember that these people are not typically commision salespeople, but they do have incentive to move the car.
I don’t recommend it, but if you don’t want to buy the car, and don’t have the cash to pay for the excess mileage, you may be able to get a new car (either buy or lease), and the dealer/bank can add the amount you owe for the excess mileage into your new loan/lease.
Always tell them that you like it. You want them to think there is a deal to be made if they can find it. What you never want to do is tell them it is your only choice, or by far your most favorite. I let them know that too, and I attach time frames when I get serious. Something as simple as a car are a dime a dozen so I never get emotionally attached to one. Its also important to remember that these people are not typically commision salespeople, but they do have incentive to move the car.
Generally disagree with what you suggest. It is OK to tell the commissioned sales rep (car dealer) you like something; at least you will retain their interest and start the process of negotiations. Yes, you should do your research and be prepared but, remember the rep wants to sell and you have the final decision.My perspective is that of one who is in the sales profession (non-commission, at that)... when you disclose to me that you “like” something - you’re showing your cards....
the best strategy, always, as a buyer ?
a) project indifference (brand-agnostic, but convey that you are serious about carrying through a transaction, not a tire-kicker);
b) demonstrate authority & readiness to make a decision...
c) product / category knowledge and research in hand ...
Generally disagree with what you suggest. It is OK to tell the commissioned sales rep (car dealer) you like something; at least you will retain their interest and start the process of negotiations. Yes, you should do your research and be prepared but, remember the rep wants to sell and you have the final decision.
Silly response from you. Lease market has changed with so many cars being returned at lease end. In past years I have returned my 36 month lease car at about the 30 month mark and was able to achieve some equity toward the next lease thereby extracting an extremely favorable next lease price. Unfortunately, as several dealers have explained there is a glut of returned lease cars; and so, no continuing equity this time around. Thus, so I have an extremely favorable lease price, and since I really like the car, and since I don't drive lots of miles, with these favorable factors why I not keep the car. Maybe in six months market changes, maybe I buy the car and maybe I just return it and get a new one. The best time to buy a car and negotiate with the dealers is when you don't absolutely have to have a car and you can afford to walk away.Helps explain why you’re stuck at the end of a lease with a lot-rock....
“Ooo yeah I like this car - I’m flattered that you’d ask me to make six add’l payments at the original lease amount ! “
I'm in this situation now, I checked with the leasing finance company and found I could extend the lease for up to six months at the original lease price, would get corresponding miles added and during the extended lease period all lease payments go toward reducing the residual (payoff). Reason for doing this is I like my car but the residual is too high and nobody wants car. Was told by several dealers that there are too many 2015, 16, 17 leased cars being returned and the dealers don't want them.
Generally disagree with what you suggest. It is OK to tell the commissioned sales rep (car dealer) you like something; at least you will retain their interest and start the process of negotiations. Yes, you should do your research and be prepared but, remember the rep wants to sell and you have the final decision.
Silly response from you. Lease market has changed with so many cars being returned at lease end. In past years I have returned my 36 month lease car at about the 30 month mark and was able to achieve some equity toward the next lease thereby extracting an extremely favorable next lease price. Unfortunately, as several dealers have explained there is a glut of returned lease cars; and so, no continuing equity this time around. Thus, so I have an extremely favorable lease price, and since I really like the car, and since I don't drive lots of miles, with these favorable factors why I not keep the car. Maybe in six months market changes, maybe I buy the car and maybe I just return it and get a new one. The best time to buy a car and negotiate with the dealers is when you don't absolutely have to have a car and you can afford to walk away.
Unfortunately you are incorrect presuming dealers could project the influx of returning leased cars. The residual % on my car was the standard in use by dealers. With so many attractive deals on new cars the demand for returned leases diminished along with the increased capacity of inventory. In my case, and only my case, I like the car, it has few miles AND each extended lease payment, remember, I have a great deal, serves to reduce the residual (payoff). Thus I am driving an affordable car and increasing my value with each subsequent lease payment. Thus why pay more, when, as said, I like the car and it is cheaper than anything comparable I can get. Maybe in six months it becomes more affordable. Actually a dealer wondered why, with such a manageable payment I wanted to get out of the lease. Projecting, the longer I keep the car the more it depreciates and considering the continued lease payments reduce the payoff it may become more attractive to purchase. Remember, I know the car, I drive the car, I maintain the car. If in the future I choose not to renew or purchase I can walk away with just a small disposition fee due. In the interim, I'm driving a car I like at an extremely below market rate. You do what you choose, this is most convenient for me.It was intended to be somewhat silly...
Care to fill me in on how the lease market has shifted since you entered into your lease? Earth-to-longago: Lease markets have not changed abruptly over the past 36mos...
Alas, the leasing arena is one littered with carcasses of amateurs and simpletons.... unlike the stock market, the lease market (automotive) is exponentially more predictable and navigable....
lease companies can readily project what the return-market will look like three years down the road as it’s a function of the agreements they write... most are averse, or even too sloppy to move residuals accordingly at Origination.... the lease company surmised there would be a glut of return-cars when they wrote your Agreement, they merely neglected to adjust your residual allowing you to shoulder burden...
For common folk, I’ve always been an advocate of them buying pre-owned vs. leasing... Buy what you can afford, resist the urge to bite on a sexy monthly payment.... Sure, that new car will draw oooh and ahhs and help you fit in with your tract-home neighbors, but leasing ultimately makes you a slave to the dealer... As such, never do i feel sorry for lessees writhing near the end if their agreements.
this doesnt make any sense. Making more payment than due, does not change the residual value of the car. That was fixed at the time of the lease, you can't change that. Now the only thing you are doing is accelerating the payments on the amount of money you owe the leasing company. in other words, if you have say a 36 month lease at $200 per month you owe them $7200, paying early or more does nothing to that figure.Unfortunately you are incorrect presuming dealers could project the influx of returning leased cars. The residual % on my car was the standard in use by dealers. With so many attractive deals on new cars the demand for returned leases diminished along with the increased capacity of inventory. In my case, and only my case, I like the car, it has few miles AND each extended lease payment, remember, I have a great deal, serves to reduce the residual (payoff). Thus I am driving an affordable car and increasing my value with each subsequent lease payment. Thus why pay more, when, as said, I like the car and it is cheaper than anything comparable I can get. Maybe in six months it becomes more affordable. Actually a dealer wondered why, with such a manageable payment I wanted to get out of the lease. Projecting, the longer I keep the car the more it depreciates and considering the continued lease payments reduce the payoff it may become more attractive to purchase. Remember, I know the car, I drive the car, I maintain the car. If in the future I choose not to renew or purchase I can walk away with just a small disposition fee due. In the interim, I'm driving a car I like at an extremely below market rate. You do what you choose, this is most convenient for me.
Actually you are wrong, extended lease payments DO REDUCE the residual (Payoff); I have the contract to prove it. The advantage to the leasing company is they get a bit more $$$, the advantage to me is I like the car, it has low miles and meets my needs. In a cost effective manner it delays any decisions I need to make. Key: I like the car, Key: I don't need a new car, Key: it meets my needs, Key: I will never get anything less expensive. Have Fun!!!!!!!this doesnt make any sense. Making more payment than due, does not change the residual value of the car. That was fixed at the time of the lease, you can change that. Now the only thing you are doing is accelerating the payments on the amount of money you owe the leasing company. in other words, if you have say a 36 month lease at $200 per month you owe them $7200, paying early or more does nothing to that figure.
I think you need to re read your contract. The residual value is not the payoff. The residual value is what they think the car will be worth in x# of years. Its the part of the car you arent really paying for. They get the residual value from a book.Actually you are wrong, extended lease payments DO REDUCE the residual (Payoff); I have the contract to prove it. The advantage to the leasing company is they get a bit more $$$, the advantage to me is I like the car, it has low miles and meets my needs. In a cost effective manner it delays any decisions I need to make. Key: I like the car, Key: I don't need a new car, Key: it meets my needs, Key: I will never get anything less expensive. Have Fun!!!!!!!
Unfortunately you are incorrect presuming dealers could project the influx of returning leased cars. The residual % on my car was the standard in use by dealers. With so many attractive deals on new cars the demand for returned leases diminished along with the increased capacity of inventory. In my case, and only my case, I like the car, it has few miles AND each extended lease payment, remember, I have a great deal, serves to reduce the residual (payoff). Thus I am driving an affordable car and increasing my value with each subsequent lease payment. Thus why pay more, when, as said, I like the car and it is cheaper than anything comparable I can get. Maybe in six months it becomes more affordable. Actually a dealer wondered why, with such a manageable payment I wanted to get out of the lease. Projecting, the longer I keep the car the more it depreciates and considering the continued lease payments reduce the payoff it may become more attractive to purchase. Remember, I know the car, I drive the car, I maintain the car. If in the future I choose not to renew or purchase I can walk away with just a small disposition fee due. In the interim, I'm driving a car I like at an extremely below market rate. You do what you choose, this is most convenient for me.
I think you need to re read your contract. The residual value is not the payoff. The residual value is what they think the car will be worth in x# of years. Its the part of the car you arent really paying for. They get the residual value from a book.
The residual value is simply an estimate of the wholesale value of the car at the end of the lease term. Understanding where it comes from, and how it affects the price you will pay for a lease, is a bit more complicated.
Residual values, which are sometimes called lease-end values or the lease-end purchase price, are set by the company that is financing the lease, not the dealer. They are an expert guess as to what the car will be worth when the lease ends, and they are typically not negotiable. They take into account expected depreciation, historical demand for that model, and the effect of expected mileage on the car’s value. Experts also look at predicted market conditions, such as the price of gasoline, when determining the residual value. It is nearly always expressed as a percentage of a car’s MSRP, not the selling price.
https://cars.usnews.com/cars-trucks/what-does-residual-value-mean-for-a-car-lease
Sometimes the light at the end of the tunnel is a trainObviously you don't understand contracts, I do. My negotiations are with the leasing company, not the dealer. I'm driving a car that I love for cheap, maybe the original dealer made a poor deal. For me I'm quite satisfied with the ride I have had and continue to enjoy. Can't beat the price and it costs me a small disposition fee if I return it AND if I choose to buy the car price goes DOWN with each extended lease payment I make, and it is surprisingly low payment. So for all you experts go search for a better deal.
Obviously you don't understand contracts, I do. My negotiations are with the leasing company, not the dealer. I'm driving a car that I love for cheap, maybe the original dealer made a poor deal. For me I'm quite satisfied with the ride I have had and continue to enjoy. Can't beat the price and it costs me a small disposition fee if I return it AND if I choose to buy the car price goes DOWN with each extended lease payment I make, and it is surprisingly low payment. So for all you experts go search for a better deal.