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NFT: End of the Car Lease Question

GMAN4LIFE : 1/21/2015 8:56 am
At the end of a car lease, I know you have the option to buy but I have some questions

Can you negotiate the cost of buying the car? When you buy the car, can you buy more warranty coverage? Can you pay for the car in monthly installments?
i have 2 leases about to end  
tator : 1/21/2015 9:02 am : link
No you cant negotiate the price of the car

If you but it, yes yu can also get an extended warranty.
You can try to negotiate the buyout  
jcn56 : 1/21/2015 9:09 am : link
I did this recently - wasn't successful, but the dealership told me that my deal was a particularly good one (and the car was worth at least $3k over what the current book values I dug up were). The salesman there told me that on average, they'll cut a grand here or there depending on the make and the buyout, so it's worth a shot.
You can negotiate anything  
fbdad : 1/21/2015 10:04 am : link
you just might not be successful. Like any negotiation, the better prepared you are, the more likely your success. Check out Kelly Blue Book or other sources of sale price information on the car you're taking off lease. If the prices are a lot lower, bring the info to the discussion. If they still won't budge, screw 'em - turn in your car and buy a like one that you've already determined is a better value. You've got a far better chance of getting a deal if the dealer knows that you'll buy the car from somebody at a fair price. His decision is whether you'll buy it from him or someone else.
There's still a shortage of quality used cars  
Gary from The East End : Admin : 1/21/2015 10:39 am : link
So you can certainly try to negotiate, but it's unlikely they'll move much on the price.
does it make sense to buy a car after a lease?  
fkap : 1/21/2015 11:01 am : link
On the one hand, you know the history of the car. On the other hand, you're making monthly payments for most of the car's life (first lease, then loan), and when the payments are done, you're about due to get another car, when the payments start up again. IF you're going to make monthly payments forever, just keep leasing, and don't worry about maintenance.
RE: does it make sense to buy a car after a lease?  
Jim in Fairfax : 1/21/2015 11:09 am : link
In comment 12103730 fkap said:
Quote:
On the one hand, you know the history of the car. On the other hand, you're making monthly payments for most of the car's life (first lease, then loan), and when the payments are done, you're about due to get another car, when the payments start up again. IF you're going to make monthly payments forever, just keep leasing, and don't worry about maintenance.

Depends on:

1) the price to buy the car
2) Interest rate
3) how long you plan to keep the car.

Crunch the numbers.
to answer your questions  
The Natural : 1/21/2015 1:18 pm : link
the purchase buyout price is generally not negotiable. You are buying out your lease from the lease company, not the dealer.

You definitely can purchase an extended warranty and yes, you can finance the purchase.

One of the nice options with leasing is that you have a pre-set price that you can buy the car at. So, if you do a little research is that particular car selling on the open market for more or less than you can buy it at.?? If similar make/model cars with the same approx mileage are selling for more, than by all means, consider purchasing the car yourself. If they are selling for less, then you can walk away and the lease company absorbs the loss.
that will suck for me because i will be giving the car back with half  
GMAN4LIFE : 1/21/2015 1:52 pm : link
of what its expected to come back with.

i will be giving it back with 20000 miles when they expected 36000. Car will probably be valuable for them to buy me out
RE: that will suck for me because i will be giving the car back with half  
Jim in Fairfax : 1/21/2015 2:06 pm : link
In comment 12104066 GMAN4LIFE said:
Quote:
of what its expected to come back with.

i will be giving it back with 20000 miles when they expected 36000. Car will probably be valuable for them to buy me out

They don't have to buy you out -- it's already their car. You've just been paying a rental fee to use it,
My understanding  
mcr2343 : 1/21/2015 2:16 pm : link
Is that the lease should include a residual value already written in, that's how you're payments were determined. I haven't done it but my understanding is if the car is worth more than that they will often negotiate paying you the difference in value...because otherwise you could just buy it at the residual plus purchase option fee and sell it somewhere else. Read up on it tho and maybe find someone that has done it.
your. damnit  
mcr2343 : 1/21/2015 2:16 pm : link
your payments
RE: My understanding  
The Natural : 1/21/2015 3:58 pm : link
In comment 12104086 mcr2343 said:
Quote:
Is that the lease should include a residual value already written in, that's how you're payments were determined. I haven't done it but my understanding is if the car is worth more than that they will often negotiate paying you the difference in value...because otherwise you could just buy it at the residual plus purchase option fee and sell it somewhere else. Read up on it tho and maybe find someone that has done it.


I have never seen this happen. You have the first option to buy the car or not. It's up to you to see if it's a viable option for you to purchase the car or just walk away.
the time to crunch the numbers is before you sign the lease, IMO  
fkap : 1/21/2015 5:16 pm : link
IF you buy the car after leasing, that basically turns the lease portion into a loan. my understanding is that the buy option is written into the lease, so you know the amount, and you can make a good guesstimate of how long a loan you'd need to buy the car afterwards. The only thing you don't know is the interest rate a few years down the road.

I suppose there could be times when it makes more sense to do it that way over simply buying outright and borrowing the entire purchase in one shot. And it does give you the option of just turning the car in when the lease is up if you're not thrilled with it.
However, it's dumb, beyond belief, to do what my step son did with his last car: lease for 3 and a half years, then take out a loan for 5 years. He was making monthly payments for 8 1/2 years, with a couple of tire changes in there, the usual muffler type repairs, plus another major repair, and the car was approaching 200K miles by the time payments ceased, it was time to buy a new car. There is simply no excuse to have 8 1/2 years of payments on a Nissan Altima, plus all the maintenance/repairs on top of that.
With the mielage that he was driving  
The Natural : 1/21/2015 5:27 pm : link
a lease was a bad option to start with....He was at almost 2000 per month so when he got to near the end of his lease he would have had an extreme overage on miles. Most leases are .15/mile charge for any excess miles so you can see how these charges can add up very quickly.

He basically had no choice but to buy the car or face paying the excess mileage fees.
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