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Leases


gaewsky1

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you're not stuck until you make the last payment. until then the dealer gets a buyout price lower than you and can negotiate with you. weather they will, not sure.

 

you're never stuck. try and sell it within the last 6 mos of your lease, trade it, etc....

 

pm me if you have any questions or details specific.

 

Tim

 

 

The lease on my car is almost up and I am wanting to purchase the car. Can I try and talk them down on the purchase price? Or am I stuck paying the remain balance of the car?

 

This was my first lease so I have no idea.

 

Thanks

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Dan Tobin let me out of my lease 6 months early when I told them I was interested in getting an Envoy. If you plan on getting the car from the same dealer you can usually use the current lease as a bargaining chip.

 

 

this is true. you can also use buying another car from their lot as a bargaining tool to get out of paying for overage on the mileage.

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So if my lease is through US bank and I purchased the car at Byers Subaru, I could probably walk into Byers and lease a new vehicle without any penalties?

 

 

They can probably make it seem that way, but you'll end up paying on the new car or your lease.

 

The negotiation is with the bank, not the dealer. If you trade, just remember that the bank is going to get what was promised to them. For example, lets say your residual was 10k and you have 5 payments of 200 dollars left on your lease. If you trade it tomorrow, your payoff is 11000 bucks.

 

Also, most banks inflate their residuals at the time of purchase. What I've been seeing lately is most cars are worth less than their residual values on the open market. Do some research before you pull the trigger on your car. You may be able to buy the same car for significantly less.

 

Best of luck to you.

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Also, most banks inflate their residuals at the time of purchase. What I've been seeing lately is most cars are worth less than their residual values on the open market. Do some research before you pull the trigger on your car. You may be able to buy the same car for significantly less.

 

Best of luck to you.

 

Spoken for the truth. The only car I have ever seen that is actually worth more than their residual after the lease are new accord's, this (by way it was explained to me) was because of their high resale values. Understand there are ALOT of variables to consider, like your intereste rate etc...

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there are no penalties in leasing.....well, very little.....if you're over on miles, you're paying the excess mileage that you drove the car. usually if you lease a car with say 15k mi per year you can pre-pay miles if you drive more...say 25k mi per year. That cost may be like $.10-.15 per, but after the fact they charge you say $.20-.25 of which only a portion is a "penalty". The costs are higher if you go low miles at first and then go over.

 

share more details and I'll be able to provide more insight. if you're in the last 6mos. of the lease, you're in good shape. dealers will then approach the bank and negotiate a buy price....it's 10-15% below what you will be offered as a consumer. banks will always deal as they don't want the car back. the dealer then works with you to put you in a new car.

 

it's not complicated, but better explained via phone...pm me if you need anything.

 

 

So if my lease is through US bank and I purchased the car at Byers Subaru, I could probably walk into Byers and lease a new vehicle without any penalties?
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Sounds like the GM Pull-Through Program. Not sure if it's going on in our region, but essentially they just take your car back anytime within the last 6 months and so long as it was within a range of miles and condition, GMAC let everyone off the hook and sent them to auction. Nice program. My 96GT, 97 GTP, 99 GTP and 01 Trailblazer all went back under this program at 30 months. Cool thing is I then bought my own 99 GTP back at the local auctions for a $2,500 savings :cool:

 

Dan Tobin let me out of my lease 6 months early when I told them I was interested in getting an Envoy. If you plan on getting the car from the same dealer you can usually use the current lease as a bargaining chip.
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there are no penalties in leasing.....well, very little.....if you're over on miles, you're paying the excess mileage that you drove the car. usually if you lease a car with say 15k mi per year you can pre-pay miles if you drive more...say 25k mi per year. That cost may be like $.10-.15 per, but after the fact they charge you say $.20-.25 of which only a portion is a "penalty". The costs are higher if you go low miles at first and then go over.

 

share more details and I'll be able to provide more insight. if you're in the last 6mos. of the lease, you're in good shape. dealers will then approach the bank and negotiate a buy price....it's 10-15% below what you will be offered as a consumer. banks will always deal as they don't want the car back. the dealer then works with you to put you in a new car.

 

it's not complicated, but better explained via phone...pm me if you need anything.

 

 

There is no negotiation involved between a dealer and a bank. It's 10-15% lower because a dealer payoff does not include tax. Banks dont give a rats ass about negotiating because they WILL get their money. They are all insured on the residuals. Why lose money by "dealing" when they can just send it to the block and they are payed the difference with an insurance check?

 

Penalties that come to mind include like you said, mileage overage, damage, change of driving lifestyle (ie longer drive to work), no equity accumulation etc. Obviously, leasing is not for everyone.

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