I just decided to keep my car at the end of the lease, and want to share my experience to keep more money in your pocket. I contacted Hyundai a month before the end of the lease and discussed options including purchase. They said the easiest way was to go to a dealership and they would help to complete all of the paperwork. They told me my buyout was $14.5K which included state taxes. When we got to the dealership, they said the buyout was $15.2K, or $700 over what I was quoted by Hyundai. I declined and contacted Hyundai again. Seems you can buy your car from the finance company direct without $700 worth of documentation fees. Four pages of docs with 3 signatures and I mailed the check. I will have to go to DMV to transfer title, but well worth the savings.
@@boblee561 That was what Hyundai Financial told me and that was the truth. I paid the 13K+ residual and Mich state tax on that residual. They sent me a document via encrypted service, I printed and scanned the signed copies and returned them with a personal check. They mailed me the cleared title in 2 weeks.
@@dath283 I'm in that same boat today - the lease isn't up on my Tucson until February, however I'll have only used 2/3rd of the miles on the lease. I did speak with Hyundai, and they gave me some numbers, but it sounds like if I call them again, I might be able to avoid some of the fees? Do I have that correct? Thanks in advance!!
Dave Atherton is correct. I have bought my lease car at the end of the term as well. I just asked the finance company for a payoff amount, paid it to the finance company, and then went to DMV to pay the taxes.
Would love to see an update on this topic given current market conditions. My thinking is that a lot of people should buy their lease right now and sell the car
I hear you. I'm weighing "buy & keep" (incredibly fun car to drive and only < 17k mi over 38 months) vs. "buy & sell". Leaning toward the former b/c 1) used car market is overinflated, and 2) I don't really LOVE any brand's new model that fits my budget and family needs.
To me. Leasing means you'll never own it. But a Dealer just told me tonight " You buy what appreciate, and you use what depreciate " thats the best advice I ever heard.
A lease is basically a balloon loan on a car. The few leases I ever did always ended up being purchased by me because I was always over the allowed mileage. I finally quit leasing cars and just financed them.
Im in my 2nd lease and will get my 3rd when its up in less than a year. I love leasing, after owning and having to maintain a vehicle for 20 years, this is so much easier and to me worth the payments and higher ins.
I want to do the same my lease is about to be up in October I want to lease and get a vehicle with the same car company. Do you have any advice I’m pretty new to this?
Just bought out my 2020 Ram 1500 lease, which I have never done, and couldn’t feel more justified. After extending my lease six months beyond my contract, I came to the sad realization that dealer prices were not even trying to compensate for sky-high interest rates, even with perfect credit, and a new lease or purchase would’ve increased my monthly payment by over $400!!! I have been leasing vehicles for over 20 years now and have never felt less inspired to trade-in for something new. Fortunately, I had very low mileage on the 2020 Ram which put me at a reasonable residual value purchase at a payment almost exactly what I leased for through the same lender. I didn’t even have to go back to the dealer for my lease buyout as everything was done directly online with ease. Also, my lender offered very low cost extended warranty coverage and roadside assistance to my payment plan. I feel like I really won the battle at a time when the market is treating everyone like a loser. Screw these greedy Stellantis dealers as they are responsible for not lowering MSRPs at these ridiculous interest rates!
Remember to count in any sales tax and registration fees you will have to pay if you buy the car. This will lower the return to you if you buy it because it is worth more than the residual value. This could change the decision you may want to make.
I have leased four vehicles in my 44 years. What I found was it was great! I found out all kinds of things I'd didn't like about each vehicle. In one case, it was a pile of junk and was very glad I didn't buy it. I now own my vehicles, but leasing worked for me.
Do you have any advice when turning in a vehicle to lease again? I’m turning in my Jeep as my lease is up in October. I want to get another Jeep because I like them but don’t want to buy. Do you have any advice of what I should know before doing so? Will I owe anything? I’m way under mileage and the car is still in great shape.
Well it’s November 2022, and my lease is worth 35% more than the contract signed on lease day…January 2020. I will be buying out the car and selling it to another dealer for over 30% profit ….rare opportunity as you gents say
In November learned abt Gap ins. Dealership added when I bought Hyundai Accent.Picked it up Monday nite. B4 noon Wednesday less than 48hrs was rearended, car was totaled ! Gap also gives $1000 down pmt on next car if U stay with same dealer. Thanx Gap 🌷
My lease is close to an end and I asked the lease company if I could purchase the vehicle. They said yes but there’s no negotiation, I have to pay the residual value plus $350 for fees. This car is not worth the residual value so a purchase is not an option. If it was worth more than the residual value you will have to pay sales tax on that vehicle and much of the profit you think you have may not be there. I do have to pay a disposition fee of $400. The lease company said if you lease another Chrysler vehicle you won’t have to pay the fee, but when I went to the dealer to look at another vehicle they included the disposition fee in my payoff which infuriated me and I just left.
I lease cars for my business and I have never turned in a car to date. I would typically sell the car to a company like Carmax and pay the difference if there is a slight loss especially if I was over miles. I leased a 2019 M5 for 9 months and sold it to Carmax with $5k out of pocket. Happy to have driven it and sell it to see if I liked it or not. In the end I did not car for the car and want to try another brand down the road. I have also used Swap-a-lease a few times but it was a little more work and not all car companies will offer a way out.
mmrlightning Find the best lease deals and write off for the term of the loan. If I paid myself I would pay tax for my income, then take the depreciation hit. Example: those turning in their leases right now mean the dealer is greeting screwed on the real cost of the car vs just turning it in. With super low interest on vehicles that could be up to 50% off might just change my strategy and buy this round. I always run the numbers both ways.
I love your "public service" type of videos. I would love to hear about the lease pass-through situation. Car manufacturers that accept it and the ones that don't.
Maybe I should do that. My Toyota Rav 4’s lease is up in a month, and I’m still on the fence. I really need to lower my payment, and it has less than 1/3 the allotted miles. Any thoughts on trying to talk them down?
So if I understand you correctly -- are you saying that you leased the car, fulfilled the lease term, didn't buy it, traded it back in to the dealership, and they gave you cash??? Or was that difference given to you under the condition that you'd be buying/leasing another car fron that dealership?
Nick Moran keep it simple, as the dealer will probably low ball you. Go online, find the best offer using Carvana/Vroom/Shift or visit Carmax and let them handle it if you’re positive equity. I sold my end of lease Accord $4,000 over residual to Vroom. They handled the entire transaction, including pickup in 2 weeks. Other than FedExing paperwork (power of attorney) I never left the house. I banked the excess and effectively made the new lease $100 a month cheaper without tying it into a new lease.
I have had good luck leasing Toyotas. I had positive equity in 2 of the 3 (had an accident on record with the other 1). Any dealership would love for you to just turn it in at lease end. Even when I told them I wanted to trade it in, they worked their numbers for my new vehicle without the equity I had in essence trying to steal it from me. I went to 3 different websites to figure out “trade in value” for my vehicle which obviously is less than resale because the dealership will still need to make a profit when they sell it and negotiated a fair trade in price. Ended up having around 3-$4,000 equity which I used to pay taxes fees and even a little cap cost reduction (down payment). Bottom line as all these videos prove, do your homework. Know what your trade in is worth and how much they’re gonna turn around and sell it for. Check your local dealerships and see how much your vehicle is being sold for used. Don’t let them steal that money from you. They make tons off of people who think when the lease is up you’re left with nothing. That’s not always the case if you lease the right car
Agreed! I want to lease a Mazda CX-5 select at an MSRP of $29,875. The quotes on residual value/depreciation are 55-65%. You can't negotiate that. It's whatever the dealer says it is. But if you look at 3 year old used Mazda CX-5's, they all have 50-75K on them and they're selling for $24-$26K, so the one I turn in with 30-36,000 miles must be worth more than 60% of the MSRP! Help me understand!
I had a leased vehicle that had two years left on the lease. I traded it in on another brand of vehicle and the buyout was a little over a thousand more than what the new dealership offered me for the trade in. I was ok paying the $1,000 negative equity rolled into the purchase of the new vehicle.
The 4th option is selling it to CarMax beforehand if they'll give you more money than the buying price. The example was given, but it should be considered a 4th option. Turn in, no re-lease. Turn in, lease new model. Buy at the end of the lease. Sell before lease end.
Just got 4800 back on my tucson lease. Had 4 months left on the lease. Killed it!!! Was able to get a better car than I was looking at originally due to the extra cash
There’s also a 4th option at lease end. You can sell the car or trade it in for another car at another dealer. Similar to if you owned it. Many don’t know this.
I think this video today would be very different. I leased my car for 3 years in spring 2020 at a very good discount on the sales price and normal residual value and low money factor. Car prices are now through the roof (if you can get one) and I bought 12k miles per year but have only used 4k/yr (on average) because with covid now I'm working from home vs driving to an office. I'm pretty sure I'll buy my car at end of lease as I expect to have a residual value that is significantly lower then my fair market value (assuming there are still shortages 18 months from now).
Thanks so much for sharing! I've heard a theory before that "real (helpful) information comes out of casual conversations." (may not be exact phrases). That's exactly what I was feeling while watching the YAA videos.
I sold my leased 2016 Honda Civic touring (buyback was 14,500) for 17,500 to a used car company and walked out with a check for 3000. This is in Canada. I was super surprised and happy ! I never bought the car from the dealer. They did so I avoided paying the tax on the 14,500. This type of deal has to be made before the lease ends. The man who bought the car from me said it only generally happens with civics and Carolas.
Toyota and Honda cars must be returned to a respective dealership if you are not purchasing the vehicle! They forbid the independent sale to a place such as CARVANA OR CARMAX, unlike other manufacturers, for obviously financial reasons!😡😡😡😕😕😕
I purchased a 94 Chevy S-10 pick-up at the end of a 3 year lease at the residual value and the salesman got mad that I purchased it. (That truck ran forever. Then I gave it to my brother-in-law for a debt. Then he gave it to our nephew in college. It was rusted bad, but it just kept going.) Then, I leased an Oldsmobile Cutlass (2000 model I believe) and at the end of the lease the residual value was something like $13,000. I wanted to buy it, but the dealer wouldn't come down on the residual value. And he even showed me the contract and said, "This is the purchase price you agreed to at the beginning of the lease." So I didn't buy it. Then about a month later I received a note saying the car was sold at auction for something like $10,800. I don't know how I happened to receive that information, but I took it to the dealer and said, "I would have paid $11,000 and you would have had a happy customer." It was like a postcard from the auction site.
The reason the dealer couldn't come down from the residual value is that your contract was with GMAC, not the dealer. The dealer had no authority to change their contract. Had you contacted GMAC directly, they may have been willing to come down a little. Hard to say 20 years later.
I've had to use GAP on a financed Ford Focus and it really helped when my wife got in an accident. We were able to get in our next car within a week. Car only lost $300 in its value after putting 30k miles on it. Pretty eye opening when it happened.
Thank you for this video. Right now I’m currently leasing a Jeep Compass and my quoted residual price is $13300. I agreed to a 36 month loan for 36,000 miles. Since 2019 I only accumulated 12,500 miles as of today. Yes it’s 2021🤣. Thank you Rona and homebody lifestyle. 🤷🏾♀️. My lease is up February 22 and there’s no way I’m turning the car in. It will be worth more . Might as well keep it because I doubt I can add 20,000 miles in one year.
When the times gets closer, take it to a carmax, carvana, etc and have them give you a quote. The quote may be more than your residual and you could make a few bucks. Friend of mine had a tahoe lease well under mileage, he went to a local auction company and they took over the lease and bought it from him. He walked out with an extra $5k in his pocket.
@@LittleBits0fIce I would have carmax and carvana take a look and see what they offer. I have heard rumors about auto manufacturers not allowing for 3rd party lease buy outs. Which means you would need to buy out your lease then drive to carvana to sell. The BMW lease buy out value may not be too bad but you need to compare. My parents just bought a Mercedes instead of lease because the lease on the luxury brands build in new tire and brake replacements when you turn it in (no matter the condition). So you still pay for new tires and brakes even though you will not use them. They do this so each preowned is sold with new brakes/tires. Grab a few more offers and see what they are willing to pay. Worst case is you walk away with a $2k check from bmw for doing nothing extra
I leases a car about 25 years ago. You really have to make sure to read the lease agreement. I leased a car for 4 years & I drove 18,000 miles a year. The lease agreement said that during the four years that I would put 80000 miles on the car. If I went over milage, it would be 16 cents a mile. This charge could really add up. I got out of the lease a year early by paying off the lease early.
Great conversation. You two are a perfect combination. Great easy to understand information. But what about now that there's a shortage of cars? Please can you speak to that in terms of buying out a lease? I have a 2018 Jeep Summit w 16,800 miles and my lease is up in 4 months.
Good video. I have always figured that a lease is generally more profitable for the dealership over time than a sale. If that is true, then a lease is more expensive to a customer over time than a purchase (the profit to a dealer is always a cost to the customer). Something that is not talked about in a lease is that the dealership also builds a profit margin into a lease just like it would do in a sale. And as you might guess, I do not lease. But that does not mean I am opposed to it for others especially those that are "well-healed" and don't mind paying more for the "perks" or leasing versus buying.
The good thing about buying the car rather than leasing, is that you own the car at the end. A lot of cars hold up and are still useful after the loan is paid off, even if their sales value is pretty much nothing at that point.
i know you had asked for suggestions in other videos.but how about a video on leasing vs used car buying in this current environment we're in. I guess it's subjective and maybe it's more of a topic for a finance channel, maybe..but i do value your guys take on things
I leased a Prius fully intending to buy it at the end. However a woman with a big Lincoln Navigator rear ended me with 5k+ damages to the Prius. Believing, as I do, cars are never repaired perfectly. I turned it in and paid the 395 dollars. Currently leasing my 2020 Santa Fe and if I can avoid a crash I plan to buy it out in three years.
No answer to your question ---- but it's the same one I have too. But, I also have a crack in the bumper which I'm concerned about, and how it will be dealt with by Hyundai leasing.
Hi guys. I love your videos! I am struggling on whether I should turn in my leased Lincoln, or purchase it. My 36 month lease for my 2018 Lincoln MKX is up Aug. 1. Because of covid, I only put 7,700 miles on the car. The tires still have the little nubs on them and are basically brand new. The car is in great, if not excellent condition. I checked the value with Edmunds and Carmax and the value is substantially higher than the residual value quoted on my lease contract. My salesman at the dealership, with whom I've leased my last two Lincolns with, said that the dealership would consider buying the car and passing the profit onto me to put towards my next vehicle. I'm not sure that the profit that he spoke of will be as profitable as it would be if I bought the car at the residual amount myself and took the deal from Carmax. I'm wondering though if my profit would whittle down since I'd be financing the residual in order to get the car in my possession, I'd definitely ask if there is a prepayment penalty, since I'd basically be turning around and selling the car to Carmax. I'm sure I'd have to at least make one payment. Then I'd have to consider my next vehicle. I have bought new, used, and leased new cars. I have likes and dislikes for all of them. I like being able to test out a car with a leasing option, in case I don't like the car after using it for awhile, but hate that I have literally nothing to show for it at lease end. I hate that a new car depreciates so drastically just driving it off the lot, and so if I don't like the car and choose to sell it, most times i'm left upside down. And I have had miserable and costly experiences buying a used car. I will probably lease my next vehicle for 36 months. That being the case, is it better to just go with the dealership passing along the profit to me? Any advice is appreciated. Thanks!
I went to my bank after getting payoff amount while still having a few months left on lease, plan was always to buy at lease specially with high mileage, then todays used car rates I felt it better to sell and buy new for lower rate, but owe a bit more than it’s being appraised for and don’t want to go in upside down with new car plans either, so I plan to sit back watch you guys like a stock market to see when it’s best for me.
Good content. I actually negotiated with the dealer to pay off the car so I didn’t have to pay any fees associated with tear and wear . I was switching from one brand to another. It worked out well for me.
The third option is a great option. I’ve been leasing Honda Accords for years and making always absolutely always a couple of thousands at least before the lease is up. I even remember once making four thousand. One disclaimer: keep the miles under the allowed mileage.
tsifty1 Look it’s not against the terms of any lease to pay off your residual and get out of it at any given time. Having said that making money it’s not as hard as you think if and this is a big if you leased the right car, you kept the mileage under allowed limit and you are in an equity position. Right car: Toyotas or Hondas always make a good seller and particularly Camrys and Accords. Don’t even try imports most likely anyone who leases a BMW or Benz will be upside down. (Residual will be higher than market value). Mileage and equity position go hand in hand because the lower the mileage the higher the value. Give you a recent example: I leased a 2016 Accord and by the time I decided to get rid of it and make a little money my residual was around $12k with a couple of moths on my lease and the mileage was well below the 36k mark which is the standard for a 3 years lease term. I look at different websites (Car gurus, Edmunds, Auto Traders) and similar cars as mine were advertised around $15/16k sale price by dealers. I ran an ad in Car gurus for $14,500 and soon enough a couple of buyers showed up. My car I have to say was spotless, 24 k miles, immaculate in and out hard to pass for any serious buyer. I got an offer on the spot for $14k we agreed $14,200. I explained the lease situation which is always easy to understand for prospective buyers when they see the registration is under my name. We went like many times before to buyer’s credit union and they cut the check to Honda Financial Services and the rest to my name. With cash buyers it’s not much different: :Make the cashier’s check to lender the rest give it to me in cash or cashier’s check. I can’t be more transparent than this buddy. It’s up to you now to make it work.
Charlie Trece thank you for the feedback. So essentially, keep mileage down (pandemic helping here) and sell it a month or two before lease end if market prices are above residual value. Make sense!
@@tsifty1 Final tip: If you don't wanna deal with private parties there's a quick sale you can exercise. Go to Carmax or Carvanas of the world and they cut your check in the spot (your equity) and send the pay off to the lender themselves. I did it once and it was fast. Took Uber home then call my Honda dealer made the new lease over the phone, sign all docs on line and next morning the valet delivery was in front of my house with the new Accord. And remember never ever step in a dealership to buy a car. Take it from me a career finance manager in the car business.
Charlie Trece thank you for all the info, this does open your mind in the many possible options . Now being in Canada, not sure if Carmax etc... have their footprint here, I will need to see if there is anything similar ...by the way, I have a German car Audi S3, and mileage is ridiculously low with Pandemic especially now.
Fast forward two years and the supply chain bottleneck has raised the value of cards like 40%. You can sell the leased car to a place like Car Max. If the value is greater than the residual for the lease, pocket the difference. Never turn it in at the dealership.
I had leased a car once from a credit union. at the end of the lease the residual value was higher than the market value. I was able to offer the credit union less than the residual value for purchasing the car. They excepted. I saved $2000 on the purchase by doing so. Not sure this would work with a lease from a manufacture.
Every time I looked at lease vs buy it was cheaper for me to buy. I thought as convoluted as the car buying process was, it was clearer to see what I was paying for than figuring out a lease.
Is it wise to take over someones lease and buy back the vehicle at the end of the lease contract? Do people want to get out of their lease because there is something wrong with their vehicle? Or is financing a car is a better more reliable option all together?what are the hidden costs of leasing? What exactly are the costs the customer has to put toward the vehicle in terms of repairs?
My lease on an Infiniti is about to end. I want to buy the car but when I went to 2 different Infiniti dealerships they both decided to add a $995 Doc Fee and several other fees in addition to the $300 purchase option fee. Is this legal?
I have heard recently about Nissan facing a class action over end of lease shenanigans by the Stealerships of not honoring the lease contracts as written when lessees decided to purchase the vehicles. I read about the addition of BS fees and even some end of lease Repos as cash is rejected in favor of captive financing arrangements suddenly added. These shenanigans are good to know before ever considering doing business with Nissan, Infinity, or their affiliates.
When U lease a car you save money but with the agreement that you signed You can only drive so many miles per year and then they can hit you with a fee for every mile over the maximum according to the contract you signed a good example would be if you can drive 15,000 miles a year and you did 25,000 They could make you pay a quarter a mile fee for every mile over the max The other downside to leasing is you always have a payment you never own the car you keep rolling it over and leasing something else Some people like that they like having a new car every few years it keeps down on the maintenance because you're less likely to have major problems I'd rather own the car and then hopefully get 10 years out of it
Do you have to put a down payment on a lease? Should you put a downoayment on a lease? If you decide to buy the vehicle when your lease is over, what will the new payments be? Or how are they calculated?
I lease my cars for 36 mo. After 2 yrs, I check my payoff amt against the value(kbb) and almost always end up with a profit. In fact, I will be getting a car tomorrow with a $3500 profit. And they gave me $3700 off the price.
Great tips . Any advice or videos for a lease that will be over the miles at the end of the lease. Can you purchase more miles before you turn it in? Thank you in advance for the help
Is every car on the lot available for lease? My teach said a long time ago said don’t tell them you want to lease. Go in assuming you are buying and after the number is set. Tell them you want to lease the can. So you have an established number to calculate the lease payments. ?
Also, don't forget in my example. I lived and leased my car in IOWA. I moved to TEXAS. Texas considers a lease as a rental and therefore is charging sales tax every month on the payment. I just got a bill for $1900.00 .
Ironically, supply chains are disrupted now and some cars are really hard to find (thus in demand). My 2021 4Runner may be worth more than agreed sales price on my 24mo lease at end. Like more after 24 mos w mileage than it sold for brand new. Crazy times!
Assuming you can make money buying a car coming off lease and you plan to flip it, how do you avoid all the costs in buying the car from the dealership (sales tax, registration fees, license fees, etc). Or do you need to factor these costs in when buying and flipping the car? Love your videos btw. Like you, I’m in the DC area.
I have 1 year lease left on my low mileage car. I am planning to purchase it with a low interest loan for 4 years. What are the pros and cons of this plan? Thanks Mr. Auto Advocate for your response.
The only “con” I see is that, depending on the actual value of the car at lease end, you could end up owning more for the car than its worth. Or you may not. If the actual value of the car is higher than the residual, it’s less likely that you could owe more over the long term. If the actual value is lower than the residual, it’s more likely that you could owe more over the long term. This is a very rough example but if, at some point in a loan, you owe $8000 on a car that’s worth $10000 for a given point in time, you could pay it off and still have an equitable value in the car. This value could decrease over time if you make the remaining payments but either way, this is the ideal situation you want to be in. You could consider this a pro. If, on the other hand you owe $8000 on a car that’s worth $6000 for a given point in time, you will end up paying more than what its worth if you pay it off. This could become worst if you continue to make payments over time. The examples I gave are very rudimentary because dozens of factors can come into play to affect the numbers so don’t take them at face value. Truthfully, most car loans could eventually go “upside down” , especially if the interest is high with a 60 month or higher term. It means that the actual value of a vehicle may be less than what’s owed on it. But if you’re the kind of person that likes keeping a car forever, none of this should matter much.
Depending on the car, the lease company will charge you a lot of $$ to replace those tires. I am leasing an 2017 Acura TLX and I would be charged $300 for each tire below 3/32 wear when I return it in June. I am going to replace my tires with a set of 4 used tires for about $55.00 each. Look for a used tire dealer near you or call tire dealers near you and ask if they sell used tires. Here is one near me: www.champtires.com/ . Check with your lease company; I believe they will require that all 4 tires match. Hope this helps !
You should replace the tires yourself prior to turn-in. The last time I had a lease turn-in that needed a tire, it was $170.00 through the dealer, so I went to the local tire dealer & got a new one, mounted/balanced for $80.00. Fair winds and following seas to all.
Jack R that’s different. If you have a flat tire and need to replace any of them, then they need to match or you will be charged. I was referring to returning the car with the original tires on it.
Because most insurance policies have limited physical damage to Actual Cash Value (which is essentially blue book value) vs Replacement cost value. Some insurers have an endorsement that will give you a higher limit or value on your totaled car if it is 36 months old or newer but not all. So a) not all carriers offer it and b) you have to ask for it and c) you might have to pay for it. It is different from carrier to carrier and state to state.
If you want to terminate your lease early the dealer can pay those payments to the leasing company and roll them into the new car loan rather than paying it in cash especially if their are rebates available
I being leasing car for about 25+ years, normally are 4 years contract 15K miles per year. The way I see lease is. You like luxury cars, and you hate dealing with breakdowns, then the way I figured the cost of lease is like move the down payment to the end of the lease (that is the residual value, is like given a 20,000 downlpyment) but the down payment is not given, then figure the monthly payment imagining 20,000 down... it is of course low payments but at the end of the lease will be time to pay the down payment if.... you like to keep the car, but if the car was not something you like to keep, then like you said, just return it and you done... some times the dealer done this... they called me about 2 month before the end and offered me to forget those 2 or 3 payments if I purchase another vehicle from them... and I done that maybe twice... what you think about my philosophy? Maybe is just a thinking to make feel good when I lease. It works for me...
From an insurance perspective: very rarely would a lien holder require the liability limits to be 100/300 that you mentioned... that coverage limit does nothing for the car. It pays for damages to other people and property. Now the lien holder can *absolutely* say the comprehensive and the collision deductible can only be $500 for example. But even if the vehicle is financed that requirement may be implemented by the finance company. I get those calls all the time. Also GAP coverage is offered by most (sadly not all) insurance companies and is often times very inexpensive so if your dont have it, call and ask your Agent. If you ever do an insurance video I will be sure to give it watch. There definitely needs to be more correct information given about it! Thanks for the informative video. (:
One way I see the lease contract is that that money that you had to invest as down payment to get the payment low to your budget, you save it to the end. What I mean if the residue value is 15000 then just image you drop those 15000 in the bigining as down payment and you will came to a low monthly payment. Except on lease if you don’t like the car, then just return it and walk away. If you like it so much, then refinance or save those 15000 and pay cash. My 5 cents
If I found a car I love (Model Y) does it make sense to break my lease early by trading it in I would take a loss of around $3000? My lease payment is about $360 per month for my current vehicle and I still have 18 months left on it - about $6500. In the end I would be $3500 “ahead” ? Tesla is offering me $21,500 for my car and the dealer buying price (they don’t pay sales tax) is around $24,500.
@@johnsradios484 Thank you both for taking the time to watch! I'm glad people enjoy listening to a 68 year old washed up car guy! I'm here to help and give back what I know.
On the surface, it seems that leasing a vehicle is a waste of money but there are many people that like getting into new cars on a regular basis. You are paying to rent it for the most part but when you’re done with it, hand it in and get into another new car. New style, new toys, (maybe) better performance, new warranty, etc. There are advantages to leasing if this is what you want to do. Of course, if you want to buy or finance a new car, that’s fine too. Some may buy or finance “new” used cars as well. It’s all good because there’s a market for every kind of logic.
I've leased multiple cars over the past few years and at the end of my leases, my cars were worth a lot less than the residual values. When I've asked the lender to allow me to purchase the car for the "actual" value, they have never allowed me to do that! So, with my 34 lease experiences were... the customer almost always gets hosed!
What you are saying is only true if your finance contract matches the lease contract in months. I have sold over a thousand cars and have NEVER had one of my customers opt for a 36 month contract. They always go for the lower payment of a 60, 66, or 72 month term. Try getting out of any 60 month finance contract at the end of 36 months with nothing out of pocket or carrying over a deficit on the new car you bought. Does not happen.
@@christerman I prefer to have 36 mo leases of the various cars I've owned. In many cases, at the end of these leases, the residual value remaining is greater than the wholesale blue book valuation of these cars, by about $3-5k. I have made offers to Ally Financial, VW Credit and Wells to buy the car at the end of the leases for the 'actual' value. You'd think they'd want to reduce the residual values down and sell it to me, rather than take it back at a loss. But instead they always insist on taking the car back even at a loss.
@@23Piccolina The missing thing here is that the finance companies are depreciating these cars from an accounting perspective. Their true "cost" is not the residual. Plus, they have already charged you for an acquisition fee (anywhere from $495-$895 depending on the brand) further lowering their cost. Once you turn in the car, that dealer has the option to purchase the vehicle directly from the leasing company generally at a number below the residual, usually exclusive to that dealer for 48 hours or so. after the car has been grounded. They generally don't ground the vehicle until the used car manager has had a chance to evaluate the price offered. If they don't buy it, it is made available to the other dealers. If no one bites, the car is sent to auction, usually a "closed" auction open only to that brand's dealers. These manufacturers are not dumb; they've been operating like this for decades. If they really lost money on every car that was turned in, they'd quit doing it.
I’ve leased a lot of cars ,the residual value has always been at least $6-$7,000 more the value of the vehicle sometimes even more. I’ve never had the lender try to work with me by bringing down the residual amount. I just end up releasing another vehicle. My auto insurance has not gone up with a new lease. A good insurance company has gap insurance, gap insurance is another attempt for the dealership to rip you off. They will gladly provide you Gap insurance, another way dealerships go long and deep up in ya
@@GunSlinger221 Dealers only sell gap insurance on financed vehicles. Gap is included with all leases by the leasing company. They have to cover their butts in case you total the car and don't, or can't come up with any deficiency between wholesale and payoff.
So I leased a Toyota Tundra in 2015 and when the lease was up I sold it to a Hertz dealer for 6.6K over the payoff of the car. They bought the car from me, paid off the lease holder and I pocked the difference of 6.6K. I then went to Toyota leased another higher trim level Tundra with 6.6K down. I just sold that Tundra back to the Toyota dealer without leasing a new Tundra (they literally have none) and got 6.5K back. Currently sitting on that 6.5K waiting until the factories ramp back up and hope to lease another Tundra later this year. I've also leased an Audi A4 and a Honda Civic Hybrid and there was no equity in either of those when I turned those in.
Ok I’m new to leasing and my lease is up in December. Right now I have a ram 1500 and I want to move into a ram 2500. I’ve talked to the salesperson about wanting to move to a ram 2500. She said she would looking into my payoff and about finding a new vehicle for me. A few weeks later I called back about the status of what she was going to find out and got back to me a few days later. When she got back to me she said that I would be better off ordering a new truck, due to it being so hard to find them during this pandemic. She also asked how many miles I have on the truck now and I told her 19,000, which is way less than what was figured during the start of the lease. I also told her that I don’t want to be over a certain monthly payment and I’m having a hard time getting a brand new vehicle within that amount. She told me that with the equity I have in the truck now, that I should be in the price range. The reason I want to move to a 2500 is because I pull a 16’ enclosed trailer for my business and I also have a 36’6” camper. If it wasn’t for my business and having the camper, I would keep the truck I have now. Right now the truck is in my name, but my accountant says to put my new truck in my business name seeing how it’s mostly used for work than personal. My question is, is my salesperson trying to pull a fast one on me or should I do something different? Will I have trouble with having the current truck in my name and wanting to get the new one in the business name? I know nothing about this stuff. Any advice will be greatly appreciated. Thanks.
The salesperson also told me that I should order sooner than later due to a three month wait to order. But two days ago she found out that you can’t order 2021 models anymore so I would have to order a 2022 model but they don’t have any prices up right now.
residual value is taxed plus the dealer charges $99 for their 120 point inspection which is also taxed. My buyout was 18,995.00 after all is calculated it is 21,100.00.
Great Video, There are 3 months left on my lease and the Dealership is bugging me already. I like it . It has low miles and I want to purchase it. I am going to try to wait til the end.
How much do they charge per/mile on a leased vehicle? Is the mileage figures in on date of closing? Are there packages of mileage deals, or limitations on leased agreements?
I was looking to lease a car last year November, it was very interesting that I got three quotes and all three were the same monthly payment for 48 Month lease with no down payment, each quote had its own dealer discount and different residual value, the three cars were Honda Accord 2L Turbo the value on website $37K( CAD), Subaru Lagacy XT( GT) around $39K and Audi A4 for $48. All three had same monthly lease payment!!! So it all depends on the residual value, lease rate, the discount and your luck ! I got the A4!
Your Auto Advocate thanks, I love it, also just maybe you like to mention this that most people who lease, write off the lease as expense in their business, that is extra saving, I am sure you know how it works, most business owners lease cars!
Always better lease expensive cars like bmw or Mercedes, or land rovers. After a 5 years their resale is crap and expensive to repair when they break down.
I purchased an 8-year old Mercedes eight years ago (so 16 years old now), still with only 130K miles on it. I purchased it for $14K with only 24K miles at the time. It has been an excellent car! I've really not had expensive repairs. Some things naturally had to be replaced at 100K, and that was a bit of a hit, but otherwise it's just been oil changes and minor belt/filter services. But now looking to try out a lease as I'm thinking SUV vs. sedan and not sure I want to commit as long given it's a new driving experience.
I have 6 months left, and i want to turn it in early, my house is in foreclosure, so what more can they hurt my credit. My ex talked me into the lease, what a mistake.
If I was given a dollar amount(roughly $15,500) to buy my leased car at the end of the lease and I just had some major damage all underneath the car to include framework (truck in front of me lost a steel pipe of some sort and I had to hit it or swerve and hit another car), will I still be able to buy it for that amount or will it be worth less so I'll have the opportunity to buy it for less?
Well done, gentlemen, thank you so much. Exactly my situation, my almost premium car's lease will end in December w/ less than 12,000 miles. I anticipate working w/ Carvana or Carmax. Hope to make out pretty well.
You forgot to mention state sales tax. Next Jan my cadillac C5 ends and the residual is $29,000. If I buy it and resell I will need to get $31,000 to break even. Also add $400 for turn in. I'm not sure I will purchase, even though it will have less than 10,000 miles. This was my first lease (2 yr.). I trade about every 2yr. Plus has a summer car.
If your lease is up during the COVID-19 and the dealer says they can’t take back your vehicle you must kept it a few more months. They can’t do that you signed a contract when to bring the vehicle back and they must take it.
This vid was not a comprehensive tutorial , I've leased my last 4 cars with Nissan, every lease, I've turned in the vehicle 4 months early, and leased a new Nissan ( A Maxima), I resumed the new lease at the same payments and conception fee's with no payment or penalty on the Vehicle I turned in, kind of like passing the baton to myself, and only paying inception fee's on new car.
Dealers love Honda’s and Toyota’s, depends how many miles your accord has. For example, 20k-25k miles in 36 months would look good on their used car lot, especially a Honda Accord. Before you do something like that, ask around if they know anyone who works at a certain dealership and see if they buyout other vehicle leases.
So if my car is currently worth 17k but my cars lease residual value is 10k can I go into the dealership and buy the car and get the 7k off the car? My lease ends in December and I’m trying To look at all my options
Either buy the car at the end of lease, or walk away from the lease and be prepared to pay for the overage on the mileage, or get into a new lease or finance and they'll waive the overage. It's in the manufacturers best interest to keep you in a new car. Hope this helps.
When a decent car costs more than my first house who wants to pay one of those mortgage like payments for a damn car? A lease is cheaper monthly so there you are. No brainer.
Danny Walker I agree with you on that. I just paid off my house in November after 33 long years with 3 refinances. I couldn’t’t stand looking at a car balance of $48,000 for another 6 long years. And I’m not gonna take out a equity loan on my home for a car loan. Even though the interest on my equity loan could be an annual write-off on the car.
If my lease ends next month and my vehicle is worth more then my residual value can I turn it in and get into a new vehicle, with the positive equity from turn in value minus the residual value?
Fleecing is the most expensive way to operate a vehicle. See Dave Ramsey. On average paying 14% interest. Most people who lease cars fall into two main categories. Cat 1, people who have champagne taste and beer money they need to be poseur. Cat 2, people who have a business that can write off the lease as a business expense.
Other than spelling poseur correctly, most of what you write is questionable. You left out Cat 3, people who don't want to buy a depreciating asset, don't want to be holding the bag when their financed car is in an accident and loses value, people who want to be able to predict their transportation expenses to the penny, people who like having a warranty during their possession of the car, people who like to have the latest technology. Even surprisingly affordable cars now come with tons of the latest safety features standard.
Christer Whitworth what happens when the leased car is in a accident? You have to pay for diminished value. What happens at the end of most leases? Many people of modest means have not much of a down payment and yet have that yearning for champagne with beer money. So the forever leasing. The only way to look at car “ownership” is what does it cost you all in to drive per mile.
Everything sounds nice and good. But in leasing there is acquisition fee of x dollars like 600 to 1200 depends on the mfr , lease disposition fee at end of lease .. like 350 to 600. On top of lease charge ( finance charge) . When I can finance the car 0 down due at signing on a buy.. total finance charge is $1000 at end of 6 year loan .and only 50 or 60 bucks difference between 3 year lease pymt ( w sales tax included) and the 6 year loan ? After 3 years of my 6 year loan.. I have no headache of finding a bank to loan me money and no worries on miles and this n that
I just decided to keep my car at the end of the lease, and want to share my experience to keep more money in your pocket. I contacted Hyundai a month before the end of the lease and discussed options including purchase. They said the easiest way was to go to a dealership and they would help to complete all of the paperwork. They told me my buyout was $14.5K which included state taxes. When we got to the dealership, they said the buyout was $15.2K, or $700 over what I was quoted by Hyundai. I declined and contacted Hyundai again. Seems you can buy your car from the finance company direct without $700 worth of documentation fees. Four pages of docs with 3 signatures and I mailed the check. I will have to go to DMV to transfer title, but well worth the savings.
@@boblee561 That was what Hyundai Financial told me and that was the truth. I paid the 13K+ residual and Mich state tax on that residual. They sent me a document via encrypted service, I printed and scanned the signed copies and returned them with a personal check. They mailed me the cleared title in 2 weeks.
@@dath283 I'm in that same boat today - the lease isn't up on my Tucson until February, however I'll have only used 2/3rd of the miles on the lease. I did speak with Hyundai, and they gave me some numbers, but it sounds like if I call them again, I might be able to avoid some of the fees? Do I have that correct? Thanks in advance!!
Dave Atherton is correct. I have bought my lease car at the end of the term as well. I just asked the finance company for a payoff amount, paid it to the finance company, and then went to DMV to pay the taxes.
What is the best way to find the most accurate value of the car before buying?
@@thenick95051 read your lease contract. It has the payoff amount.
Would love to see an update on this topic given current market conditions. My thinking is that a lot of people should buy their lease right now and sell the car
I hear you. I'm weighing "buy & keep" (incredibly fun car to drive and only < 17k mi over 38 months) vs. "buy & sell". Leaning toward the former b/c 1) used car market is overinflated, and 2) I don't really LOVE any brand's new model that fits my budget and family needs.
Would love another video on this with current market
Weighing that exact option right now.
My lease is about to end thinking about buying my car it’s worth more than the agreed-upon buyout price
@@Hostage1914 This makes sense for a lot of people in this market, especially if they can afford the monthly payments.
To me. Leasing means you'll never own it. But a Dealer just told me tonight " You buy what appreciate, and you use what depreciate " thats the best advice I ever heard.
So you've been leasing after that?
@@ikharl328 no I never leased
A lease is basically a balloon loan on a car. The few leases I ever did always ended up being purchased by me because I was always over the allowed mileage. I finally quit leasing cars and just financed them.
Im in my 2nd lease and will get my 3rd when its up in less than a year. I love leasing, after owning and having to maintain a vehicle for 20 years, this is so much easier and to me worth the payments and higher ins.
I want to do the same my lease is about to be up in October I want to lease and get a vehicle with the same car company. Do you have any advice I’m pretty new to this?
And a good way to go broke, buy used and invest in the market for your secure retirement.
Just bought out my 2020 Ram 1500 lease, which I have never done, and couldn’t feel more justified. After extending my lease six months beyond my contract, I came to the sad realization that dealer prices were not even trying to compensate for sky-high interest rates, even with perfect credit, and a new lease or purchase would’ve increased my monthly payment by over $400!!! I have been leasing vehicles for over 20 years now and have never felt less inspired to trade-in for something new. Fortunately, I had very low mileage on the 2020 Ram which put me at a reasonable residual value purchase at a payment almost exactly what I leased for through the same lender. I didn’t even have to go back to the dealer for my lease buyout as everything was done directly online with ease. Also, my lender offered very low cost extended warranty coverage and roadside assistance to my payment plan. I feel like I really won the battle at a time when the market is treating everyone like a loser. Screw these greedy Stellantis dealers as they are responsible for not lowering MSRPs at these ridiculous interest rates!
Remember to count in any sales tax and registration fees you will have to pay if you buy the car. This will lower the return to you if you buy it because it is worth more than the residual value. This could change the decision you may want to make.
I have leased four vehicles in my 44 years. What I found was it was great! I found out all kinds of things I'd didn't like about each vehicle. In one case, it was a pile of junk and was very glad I didn't buy it. I now own my vehicles, but leasing worked for me.
Do you have any advice when turning in a vehicle to lease again? I’m turning in my Jeep as my lease is up in October. I want to get another Jeep because I like them but don’t want to buy. Do you have any advice of what I should know before doing so? Will I owe anything? I’m way under mileage and the car is still in great shape.
Well it’s November 2022, and my lease is worth 35% more than the contract signed on lease day…January 2020. I will be buying out the car and selling it to another dealer for over 30% profit ….rare opportunity as you gents say
same here
In November learned abt Gap ins. Dealership added when I bought Hyundai Accent.Picked it up Monday nite. B4 noon Wednesday less than 48hrs was rearended, car was totaled ! Gap also gives $1000 down pmt on next car if U stay with same dealer. Thanx Gap 🌷
Looking at my first-ever lease right now, so this was incredibly timely. Thank you, guys!
My lease is close to an end and I asked the lease company if I could purchase the vehicle. They said yes but there’s no negotiation, I have to pay the residual value plus $350 for fees. This car is not worth the residual value so a purchase is not an option. If it was worth more than the residual value you will have to pay sales tax on that vehicle and much of the profit you think you have may not be there. I do have to pay a disposition fee of $400. The lease company said if you lease another Chrysler vehicle you won’t have to pay the fee, but when I went to the dealer to look at another vehicle they included the disposition fee in my payoff which infuriated me and I just left.
I lease cars for my business and I have never turned in a car to date. I would typically sell the car to a company like Carmax and pay the difference if there is a slight loss especially if I was over miles. I leased a 2019 M5 for 9 months and sold it to Carmax with $5k out of pocket. Happy to have driven it and sell it to see if I liked it or not. In the end I did not car for the car and want to try another brand down the road. I have also used Swap-a-lease a few times but it was a little more work and not all car companies will offer a way out.
This seems expensive, why take the loss instead of turning it in? Just curious
mmrlightning Find the best lease deals and write off for the term of the loan. If I paid myself I would pay tax for my income, then take the depreciation hit. Example: those turning in their leases right now mean the dealer is greeting screwed on the real cost of the car vs just turning it in. With super low interest on vehicles that could be up to 50% off might just change my strategy and buy this round. I always run the numbers both ways.
Great channel containing insider knowledge. I appreciate the great relationship that you have with your son, who is a very good interviewer.
I love your "public service" type of videos. I would love to hear about the lease pass-through situation. Car manufacturers that accept it and the ones that don't.
I sold my Toyota back to a dealer last year because the market value was higher than the RV. Ended up receiving the difference
Maybe I should do that. My Toyota Rav 4’s lease is up in a month, and I’m still on the fence. I really need to lower my payment, and it has less than 1/3 the allotted miles.
Any thoughts on trying to talk them down?
So if I understand you correctly -- are you saying that you leased the car, fulfilled the lease term, didn't buy it, traded it back in to the dealership, and they gave you cash??? Or was that difference given to you under the condition that you'd be buying/leasing another car fron that dealership?
Nick Moran keep it simple, as the dealer will probably low ball you. Go online, find the best offer using Carvana/Vroom/Shift or visit Carmax and let them handle it if you’re positive equity. I sold my end of lease Accord $4,000 over residual to Vroom. They handled the entire transaction, including pickup in 2 weeks. Other than FedExing paperwork (power of attorney) I never left the house. I banked the excess and effectively made the new lease $100 a month cheaper without tying it into a new lease.
@@johnnywhiteside9841 im leasing my car so do i need to buy my car from the bank first and become the owner then sell it to carvana or vroom?
We all should listen to each other more than we do. Active listening requires work. Your Father has the wisdom that comes with age and experience.
Yes Please do A whole video on Just leasing cars. Thank You!! Love Your Channel.
I have had good luck leasing Toyotas. I had positive equity in 2 of the 3 (had an accident on record with the other 1). Any dealership would love for you to just turn it in at lease end. Even when I told them I wanted to trade it in, they worked their numbers for my new vehicle without the equity I had in essence trying to steal it from me. I went to 3 different websites to figure out “trade in value” for my vehicle which obviously is less than resale because the dealership will still need to make a profit when they sell it and negotiated a fair trade in price. Ended up having around 3-$4,000 equity which I used to pay taxes fees and even a little cap cost reduction (down payment). Bottom line as all these videos prove, do your homework. Know what your trade in is worth and how much they’re gonna turn around and sell it for. Check your local dealerships and see how much your vehicle is being sold for used. Don’t let them steal that money from you. They make tons off of people who think when the lease is up you’re left with nothing. That’s not always the case if you lease the right car
Would loveeeee an update to this topic given current conditions
Agreed! I want to lease a Mazda CX-5 select at an MSRP of $29,875. The quotes on residual value/depreciation are 55-65%. You can't negotiate that. It's whatever the dealer says it is. But if you look at 3 year old used Mazda CX-5's, they all have 50-75K on them and they're selling for $24-$26K, so the one I turn in with 30-36,000 miles must be worth more than 60% of the MSRP! Help me understand!
I had a leased vehicle that had two years left on the lease. I traded it in on another brand of vehicle and the buyout was a little over a thousand more than what the new dealership offered me for the trade in. I was ok paying the $1,000 negative equity rolled into the purchase of the new vehicle.
The 4th option is selling it to CarMax beforehand if they'll give you more money than the buying price. The example was given, but it should be considered a 4th option. Turn in, no re-lease. Turn in, lease new model. Buy at the end of the lease. Sell before lease end.
Just got 4800 back on my tucson lease.
Had 4 months left on the lease. Killed it!!! Was able to get a better car than I was looking at originally due to the extra cash
There’s also a 4th option at lease end. You can sell the car or trade it in for another car at another dealer. Similar to if you owned it. Many don’t know this.
I was wondering that. I was also wondering if I had 2 payments left, would they still take it?
Dealerships are limiting this now and not allowing third party sellers. Bummer.
Cadillac doesn’t allow you to do it 😡
Would love to see an update on this topic given current market conditions
I think this video today would be very different. I leased my car for 3 years in spring 2020 at a very good discount on the sales price and normal residual value and low money factor. Car prices are now through the roof (if you can get one) and I bought 12k miles per year but have only used 4k/yr (on average) because with covid now I'm working from home vs driving to an office. I'm pretty sure I'll buy my car at end of lease as I expect to have a residual value that is significantly lower then my fair market value (assuming there are still shortages 18 months from now).
Come up!
Thanks so much for sharing! I've heard a theory before that "real (helpful) information comes out of casual conversations." (may not be exact phrases). That's exactly what I was feeling while watching the YAA videos.
I sold my leased 2016 Honda Civic touring (buyback was 14,500) for 17,500 to a used car company and walked out with a check for 3000. This is in Canada. I was super surprised and happy ! I never bought the car from the dealer. They did so I avoided paying the tax on the 14,500. This type of deal has to be made before the lease ends. The man who bought the car from me said it only generally happens with civics and Carolas.
Perfect timing. Toyota Tacoma lease is up in June.
My tacoma lease ends in June also, lol. Funny how you’re the highlighted comment. Blue paint?
Keep that truck, that thing will still be worth 10k-12k in 2030
@@franciscocolin2008 I needed to buy a property and wasn't ready to buy out the truck. The dealership paid me a decent amount to hand it back to them.
Toyota and Honda cars must be returned to a respective dealership if you are not purchasing the vehicle! They forbid the independent sale to a place such as CARVANA OR CARMAX, unlike other manufacturers, for obviously financial reasons!😡😡😡😕😕😕
I purchased a 94 Chevy S-10 pick-up at the end of a 3 year lease at the residual value and the salesman got mad that I purchased it. (That truck ran forever. Then I gave it to my brother-in-law for a debt. Then he gave it to our nephew in college. It was rusted bad, but it just kept going.) Then, I leased an Oldsmobile Cutlass (2000 model I believe) and at the end of the lease the residual value was something like $13,000. I wanted to buy it, but the dealer wouldn't come down on the residual value. And he even showed me the contract and said, "This is the purchase price you agreed to at the beginning of the lease." So I didn't buy it. Then about a month later I received a note saying the car was sold at auction for something like $10,800. I don't know how I happened to receive that information, but I took it to the dealer and said, "I would have paid $11,000 and you would have had a happy customer." It was like a postcard from the auction site.
The reason the dealer couldn't come down from the residual value is that your contract was with GMAC, not the dealer. The dealer had no authority to change their contract. Had you contacted GMAC directly, they may have been willing to come down a little. Hard to say 20 years later.
I've had to use GAP on a financed Ford Focus and it really helped when my wife got in an accident. We were able to get in our next car within a week. Car only lost $300 in its value after putting 30k miles on it. Pretty eye opening when it happened.
You guys have really improved your broadcast since this time. Both are great though and much appreciate your knowledge. Keep growing!
Thank you for this video. Right now I’m currently leasing a Jeep Compass and my quoted residual price is $13300. I agreed to a 36 month loan for 36,000 miles. Since 2019 I only accumulated 12,500 miles as of today. Yes it’s 2021🤣. Thank you Rona and homebody lifestyle. 🤷🏾♀️. My lease is up February 22 and there’s no way I’m turning the car in. It will be worth more . Might as well keep it because I doubt I can add 20,000 miles in one year.
When the times gets closer, take it to a carmax, carvana, etc and have them give you a quote. The quote may be more than your residual and you could make a few bucks. Friend of mine had a tahoe lease well under mileage, he went to a local auction company and they took over the lease and bought it from him. He walked out with an extra $5k in his pocket.
@@Chris-dr4bl thank you for the advice Chris, I didn’t know this was an option.
@@LittleBits0fIce I would have carmax and carvana take a look and see what they offer. I have heard rumors about auto manufacturers not allowing for 3rd party lease buy outs. Which means you would need to buy out your lease then drive to carvana to sell. The BMW lease buy out value may not be too bad but you need to compare. My parents just bought a Mercedes instead of lease because the lease on the luxury brands build in new tire and brake replacements when you turn it in (no matter the condition). So you still pay for new tires and brakes even though you will not use them. They do this so each preowned is sold with new brakes/tires. Grab a few more offers and see what they are willing to pay. Worst case is you walk away with a $2k check from bmw for doing nothing extra
I leases a car about 25 years ago. You really have to make sure to read the lease agreement. I leased a car for 4 years & I drove 18,000 miles a year. The lease agreement said that during the four years that I would put 80000 miles on the car. If I went over milage, it would be 16 cents a mile. This charge could really add up. I got out of the lease a year early by paying off the lease early.
Great conversation. You two are a perfect combination. Great easy to understand information. But what about now that there's a shortage of cars? Please can you speak to that in terms of buying out a lease? I have a 2018 Jeep Summit w 16,800 miles and my lease is up in 4 months.
Good video. I have always figured that a lease is generally more profitable for the dealership over time than a sale. If that is true, then a lease is more expensive to a customer over time than a purchase (the profit to a dealer is always a cost to the customer). Something that is not talked about in a lease is that the dealership also builds a profit margin into a lease just like it would do in a sale. And as you might guess, I do not lease. But that does not mean I am opposed to it for others especially those that are "well-healed" and don't mind paying more for the "perks" or leasing versus buying.
The good thing about buying the car rather than leasing, is that you own the car at the end. A lot of cars hold up and are still useful after the loan is paid off, even if their sales value is pretty much nothing at that point.
i know you had asked for suggestions in other videos.but how about a video on leasing vs used car buying in this current environment we're in. I guess it's subjective and maybe it's more of a topic for a finance channel, maybe..but i do value your guys take on things
Great suggestion! We'll tackle this in an upcoming segment. Thanks for the support, Michael!
I leased a Prius fully intending to buy it at the end. However a woman with a big Lincoln Navigator rear ended me with 5k+ damages to the Prius. Believing, as I do, cars are never repaired perfectly. I turned it in and paid the 395 dollars. Currently leasing my 2020 Santa Fe and if I can avoid a crash I plan to buy it out in three years.
I agree with you!
Another question guys, should you get your card pre-inspected by the company before returning?
No answer to your question ---- but it's the same one I have too. But, I also have a crack in the bumper which I'm concerned about, and how it will be dealt with by Hyundai leasing.
Hi guys. I love your videos! I am struggling on whether I should turn in my leased Lincoln, or purchase it. My 36 month lease for my 2018 Lincoln MKX is up Aug. 1. Because of covid, I only put 7,700 miles on the car. The tires still have the little nubs on them and are basically brand new. The car is in great, if not excellent condition. I checked the value with Edmunds and Carmax and the value is substantially higher than the residual value quoted on my lease contract. My salesman at the dealership, with whom I've leased my last two Lincolns with, said that the dealership would consider buying the car and passing the profit onto me to put towards my next vehicle. I'm not sure that the profit that he spoke of will be as profitable as it would be if I bought the car at the residual amount myself and took the deal from Carmax. I'm wondering though if my profit would whittle down since I'd be financing the residual in order to get the car in my possession, I'd definitely ask if there is a prepayment penalty, since I'd basically be turning around and selling the car to Carmax. I'm sure I'd have to at least make one payment. Then I'd have to consider my next vehicle. I have bought new, used, and leased new cars. I have likes and dislikes for all of them. I like being able to test out a car with a leasing option, in case I don't like the car after using it for awhile, but hate that I have literally nothing to show for it at lease end. I hate that a new car depreciates so drastically just driving it off the lot, and so if I don't like the car and choose to sell it, most times i'm left upside down. And I have had miserable and costly experiences buying a used car. I will probably lease my next vehicle for 36 months. That being the case, is it better to just go with the dealership passing along the profit to me? Any advice is appreciated. Thanks!
I went to my bank after getting payoff amount while still having a few months left on lease, plan was always to buy at lease specially with high mileage, then todays used car rates I felt it better to sell and buy new for lower rate, but owe a bit more than it’s being appraised for and don’t want to go in upside down with new car plans either, so I plan to sit back watch you guys like a stock market to see when it’s best for me.
Good content. I actually negotiated with the dealer to pay off the car so I didn’t have to pay any fees associated with tear and wear . I was switching from one brand to another. It worked out well for me.
The third option is a great option. I’ve been leasing Honda Accords for years and making always absolutely always a couple of thousands at least before the lease is up. I even remember once making four thousand. One disclaimer: keep the miles under the allowed mileage.
Charlie Trece how may I ask? If you lease and your lease is not up yet, how do you make a couple of grants?
tsifty1 Look it’s not against the terms of any lease to pay off your residual and get out of it at any given time. Having said that making money it’s not as hard as you think if and this is a big if you leased the right car, you kept the mileage under allowed limit and you are in an equity position. Right car: Toyotas or Hondas always make a good seller and particularly Camrys and Accords. Don’t even try imports most likely anyone who leases a BMW or Benz will be upside down. (Residual will be higher than market value). Mileage and equity position go hand in hand because the lower the mileage the higher the value. Give you a recent example: I leased a 2016 Accord and by the time I decided to get rid of it and make a little money my residual was around $12k with a couple of moths on my lease and the mileage was well below the 36k mark which is the standard for a 3 years lease term. I look at different websites (Car gurus, Edmunds, Auto Traders) and similar cars as mine were advertised around $15/16k sale price by dealers. I ran an ad in Car gurus for $14,500 and soon enough a couple of buyers showed up. My car I have to say was spotless, 24 k miles, immaculate in and out hard to pass for any serious buyer. I got an offer on the spot for $14k we agreed $14,200. I explained the lease situation which is always easy to understand for prospective buyers when they see the registration is under my name. We went like many times before to buyer’s credit union and they cut the check to Honda Financial Services and the rest to my name. With cash buyers it’s not much different: :Make the cashier’s check to lender the rest give it to me in cash or cashier’s check. I can’t be more transparent than this buddy. It’s up to you now to make it work.
Charlie Trece thank you for the feedback. So essentially, keep mileage down (pandemic helping here) and sell it a month or two before lease end if market prices are above residual value. Make sense!
@@tsifty1 Final tip: If you don't wanna deal with private parties there's a quick sale you can exercise. Go to Carmax or Carvanas of the world and they cut your check in the spot (your equity) and send the pay off to the lender themselves. I did it once and it was fast. Took Uber home then call my Honda dealer made the new lease over the phone, sign all docs on line and next morning the valet delivery was in front of my house with the new Accord. And remember never ever step in a dealership to buy a car. Take it from me a career finance manager in the car business.
Charlie Trece thank you for all the info, this does open your mind in the many possible options . Now being in Canada, not sure if Carmax etc... have their footprint here, I will need to see if there is anything similar ...by the way, I have a German car Audi S3, and mileage is ridiculously low with Pandemic especially now.
Fast forward two years and the supply chain bottleneck has raised the value of cards like 40%. You can sell the leased car to a place like Car Max. If the value is greater than the residual for the lease, pocket the difference. Never turn it in at the dealership.
I had leased a car once from a credit union. at the end of the lease the residual value was higher than the market value. I was able to offer the credit union less than the residual value for purchasing the car. They excepted. I saved $2000 on the purchase by doing so. Not sure this would work with a lease from a manufacture.
*accepted*
Every time I looked at lease vs buy it was cheaper for me to buy. I thought as convoluted as the car buying process was, it was clearer to see what I was paying for than figuring out a lease.
Have you guys done a vlog yet about taking over a lease from a distress lease owner? If none please do if you guys can.
Intelligent conversation with actually useful tips. I would just add some graphics to really have the numbers stand out.
Is it wise to take over someones lease and buy back the vehicle at the end of the lease contract? Do people want to get out of their lease because there is something wrong with their vehicle? Or is financing a car is a better more reliable option all together?what are the hidden costs of leasing? What exactly are the costs the customer has to put toward the vehicle in terms of repairs?
My lease on an Infiniti is about to end. I want to buy the car but when I went to 2 different Infiniti dealerships they both decided to add a $995 Doc Fee and several other fees in addition to the $300 purchase option fee. Is this legal?
I have heard recently about Nissan facing a class action over end of lease shenanigans by the Stealerships of not honoring the lease contracts as written when lessees decided to purchase the vehicles. I read about the addition of BS fees and even some end of lease Repos as cash is rejected in favor of captive financing arrangements suddenly added.
These shenanigans are good to know before ever considering doing business with Nissan, Infinity, or their affiliates.
When U lease a car you save money but with the agreement that you signed
You can only drive so many miles per year and then they can hit you with a fee for every mile over the maximum according to the contract you signed a good example would be if you can drive 15,000 miles a year and you did 25,000
They could make you pay a quarter a mile fee for every mile over the max
The other downside to leasing is you always have a payment you never own the car you keep rolling it over and leasing something else
Some people like that they like having a new car every few years it keeps down on the maintenance because you're less likely to have major problems
I'd rather own the car and then hopefully get 10 years out of it
Do you have to put a down payment on a lease? Should you put a downoayment on a lease? If you decide to buy the vehicle when your lease is over, what will the new payments be? Or how are they calculated?
I like to know.
I lease my cars for 36 mo. After 2 yrs, I check my payoff amt against the value(kbb) and almost always end up with a profit. In fact, I will be getting a car tomorrow with a $3500 profit. And they gave me $3700 off the price.
Great tips . Any advice or videos for a lease that will be over the miles at the end of the lease. Can you purchase more miles before you turn it in? Thank you in advance for the help
Yes to stories from Ray!
$52K for a Chrysler minivan?? A Porsche Macan starts at $52k!
Is every car on the lot available for lease? My teach said a long time ago said don’t tell them you want to lease. Go in assuming you are buying and after the number is set. Tell them you want to lease the can. So you have an established number to calculate the lease payments. ?
Also, don't forget in my example. I lived and leased my car in IOWA. I moved to TEXAS. Texas considers a lease as a rental and therefore is charging sales tax every month on the payment. I just got a bill for $1900.00 .
If you sign a new lease and you want a similar car and payment as the lease you turned in do you need to put down another down payment?
Yep
Hello ... I have a question how do they determine what the car will be worth 3 years from now?
Ironically, supply chains are disrupted now and some cars are really hard to find (thus in demand). My 2021 4Runner may be worth more than agreed sales price on my 24mo lease at end. Like more after 24 mos w mileage than it sold for brand new. Crazy times!
Assuming you can make money buying a car coming off lease and you plan to flip it, how do you avoid all the costs in buying the car from the dealership (sales tax, registration fees, license fees, etc). Or do you need to factor these costs in when buying and flipping the car? Love your videos btw. Like you, I’m in the DC area.
I have 1 year lease left on my low mileage car. I am planning to purchase it with a low interest loan for 4 years. What are the pros and cons of this plan? Thanks Mr. Auto Advocate for your response.
homer Santos, just make sure you don't end up overpaying for a depreciated car. Just book value before you negotiate a loan buyout.
The only “con” I see is that, depending on the actual value of the car at lease end, you could end up owning more for the car than its worth. Or you may not.
If the actual value of the car is higher than the residual, it’s less likely that you could owe more over the long term. If the actual value is lower than the residual, it’s more likely that you could owe more over the long term.
This is a very rough example but if, at some point in a loan, you owe $8000 on a car that’s worth $10000 for a given point in time, you could pay it off and still have an equitable value in the car. This value could decrease over time if you make the remaining payments but either way, this is the ideal situation you want to be in. You could consider this a pro.
If, on the other hand you owe $8000 on a car that’s worth $6000 for a given point in time, you will end up paying more than what its worth if you pay it off. This could become worst if you continue to make payments over time.
The examples I gave are very rudimentary because dozens of factors can come into play to affect the numbers so don’t take them at face value. Truthfully, most car loans could eventually go “upside down” , especially if the interest is high with a 60 month or higher term. It means that the actual value of a vehicle may be less than what’s owed on it.
But if you’re the kind of person that likes keeping a car forever, none of this should matter much.
I have two tires on my leased car that need replacing- should I buythe new tires now or should I turn it in with the worn tires?
Depending on the car, the lease company will charge you a lot of $$ to replace those tires. I am leasing an 2017 Acura TLX and I would be charged $300 for each tire below 3/32 wear when I return it in June. I am going to replace my tires with a set of 4 used tires for about $55.00 each. Look for a used tire dealer near you or call tire dealers near you and ask if they sell used tires. Here is one near me: www.champtires.com/ . Check with your lease company; I believe they will require that all 4 tires match. Hope this helps !
You should replace the tires yourself prior to turn-in. The last time I had a lease turn-in that needed a tire, it was $170.00 through the dealer, so I went to the local tire dealer & got a new one, mounted/balanced for $80.00.
Fair winds and following seas to all.
Tires are normal wear-and-tear. Don’t replace them. Just turn it in.
Sorry, no, I found out I need to match the rear tires or I'll be charged to replace.
Jack R that’s different. If you have a flat tire and need to replace any of them, then they need to match or you will be charged. I was referring to returning the car with the original tires on it.
Why are insurance companies allowed to total vehicles at only 80% of "what they are worth"? That seems criminal in my mind (I live in NY).
Because most insurance policies have limited physical damage to Actual Cash Value (which is essentially blue book value) vs Replacement cost value. Some insurers have an endorsement that will give you a higher limit or value on your totaled car if it is 36 months old or newer but not all. So a) not all carriers offer it and b) you have to ask for it and c) you might have to pay for it. It is different from carrier to carrier and state to state.
My husband and I did that 20 yrs ago..we bought the car at end of lease and sold it for 7 thousand dollars more!
This is a great idea. Where did you sell? Carmax, carvana?
@@mauricio-from-chi-town private sale
BTW on the Deficiency Value it becomes an unsecured debt therefore it can become negotiable where you can pay a negotiated amount.
If you want to terminate your lease early the dealer can pay those payments to the leasing company and roll them into the new car loan rather than paying it in cash especially if their are rebates available
Give your Lexus lease back. So we can buy it. We have two now and looking for an upgrade.
I being leasing car for about 25+ years, normally are 4 years contract 15K miles per year. The way I see lease is. You like luxury cars, and you hate dealing with breakdowns, then the way I figured the cost of lease is like move the down payment to the end of the lease (that is the residual value, is like given a 20,000 downlpyment) but the down payment is not given, then figure the monthly payment imagining 20,000 down... it is of course low payments but at the end of the lease will be time to pay the down payment if.... you like to keep the car, but if the car was not something you like to keep, then like you said, just return it and you done... some times the dealer done this... they called me about 2 month before the end and offered me to forget those 2 or 3 payments if I purchase another vehicle from them... and I done that maybe twice... what you think about my philosophy? Maybe is just a thinking to make feel good when I lease. It works for me...
I would like to know more. I leased my 2018 volvo and have 13 months left on the lease.
Right now I have a civic that the buy out is 12k and I have had offers from dealers and carmax for 17k!
From an insurance perspective: very rarely would a lien holder require the liability limits to be 100/300 that you mentioned... that coverage limit does nothing for the car. It pays for damages to other people and property. Now the lien holder can *absolutely* say the comprehensive and the collision deductible can only be $500 for example. But even if the vehicle is financed that requirement may be implemented by the finance company. I get those calls all the time. Also GAP coverage is offered by most (sadly not all) insurance companies and is often times very inexpensive so if your dont have it, call and ask your Agent. If you ever do an insurance video I will be sure to give it watch. There definitely needs to be more correct information given about it!
Thanks for the informative video. (:
One way I see the lease contract is that that money that you had to invest as down payment to get the payment low to your budget, you save it to the end. What I mean if the residue value is 15000 then just image you drop those 15000 in the bigining as down payment and you will came to a low monthly payment. Except on lease if you don’t like the car, then just return it and walk away. If you like it so much, then refinance or save those 15000 and pay cash. My 5 cents
If I found a car I love (Model Y) does it make sense to break my lease early by trading it in I would take a loss of around $3000? My lease payment is about $360 per month for my current vehicle and I still have 18 months left on it - about $6500. In the end I would be $3500 “ahead” ? Tesla is offering me $21,500 for my car and the dealer buying price (they don’t pay sales tax) is around $24,500.
Never leased a car nor plan too but that was so interesting.
Mark Anderson Same here.
@@johnsradios484 Thank you both for taking the time to watch! I'm glad people enjoy listening to a 68 year old washed up car guy! I'm here to help and give back what I know.
Same here,i never leased a car but i find it an interesting subject.
On the surface, it seems that leasing a vehicle is a waste of money but there are many people that like getting into new cars on a regular basis. You are paying to rent it for the most part but when you’re done with it, hand it in and get into another new car. New style, new toys, (maybe) better performance, new warranty, etc. There are advantages to leasing if this is what you want to do.
Of course, if you want to buy or finance a new car, that’s fine too. Some may buy or finance “new” used cars as well. It’s all good because there’s a market for every kind of logic.
I've leased multiple cars over the past few years and at the end of my leases, my cars were worth a lot less than the residual values. When I've asked the lender to allow me to purchase the car for the "actual" value, they have never allowed me to do that! So, with my 34 lease experiences were... the customer almost always gets hosed!
What you are saying is only true if your finance contract matches the lease contract in months. I have sold over a thousand cars and have NEVER had one of my customers opt for a 36 month contract. They always go for the lower payment of a 60, 66, or 72 month term. Try getting out of any 60 month finance contract at the end of 36 months with nothing out of pocket or carrying over a deficit on the new car you bought. Does not happen.
@@christerman I prefer to have 36 mo leases of the various cars I've owned. In many cases, at the end of these leases, the residual value remaining is greater than the wholesale blue book valuation of these cars, by about $3-5k. I have made offers to Ally Financial, VW Credit and Wells to buy the car at the end of the leases for the 'actual' value. You'd think they'd want to reduce the residual values down and sell it to me, rather than take it back at a loss. But instead they always insist on taking the car back even at a loss.
@@23Piccolina The missing thing here is that the finance companies are depreciating these cars from an accounting perspective. Their true "cost" is not the residual. Plus, they have already charged you for an acquisition fee (anywhere from $495-$895 depending on the brand) further lowering their cost. Once you turn in the car, that dealer has the option to purchase the vehicle directly from the leasing company generally at a number below the residual, usually exclusive to that dealer for 48 hours or so. after the car has been grounded. They generally don't ground the vehicle until the used car manager has had a chance to evaluate the price offered. If they don't buy it, it is made available to the other dealers. If no one bites, the car is sent to auction, usually a "closed" auction open only to that brand's dealers.
These manufacturers are not dumb; they've been operating like this for decades. If they really lost money on every car that was turned in, they'd quit doing it.
I’ve leased a lot of cars ,the residual value has always been at least $6-$7,000 more the value of the vehicle sometimes even more. I’ve never had the lender try to work with me by bringing down the residual amount. I just end up releasing another vehicle. My auto insurance has not gone up with a new lease. A good insurance company has gap insurance, gap insurance is another attempt for the dealership to rip you off. They will gladly provide you Gap insurance, another way dealerships go long and deep up in ya
@@GunSlinger221 Dealers only sell gap insurance on financed vehicles. Gap is included with all leases by the leasing company. They have to cover their butts in case you total the car and don't, or can't come up with any deficiency between wholesale and payoff.
So I leased a Toyota Tundra in 2015 and when the lease was up I sold it to a Hertz dealer for 6.6K over the payoff of the car. They bought the car from me, paid off the lease holder and I pocked the difference of 6.6K. I then went to Toyota leased another higher trim level Tundra with 6.6K down. I just sold that Tundra back to the Toyota dealer without leasing a new Tundra (they literally have none) and got 6.5K back. Currently sitting on that 6.5K waiting until the factories ramp back up and hope to lease another Tundra later this year. I've also leased an Audi A4 and a Honda Civic Hybrid and there was no equity in either of those when I turned those in.
Ok I’m new to leasing and my lease is up in December. Right now I have a ram 1500 and I want to move into a ram 2500. I’ve talked to the salesperson about wanting to move to a ram 2500. She said she would looking into my payoff and about finding a new vehicle for me. A few weeks later I called back about the status of what she was going to find out and got back to me a few days later. When she got back to me she said that I would be better off ordering a new truck, due to it being so hard to find them during this pandemic. She also asked how many miles I have on the truck now and I told her 19,000, which is way less than what was figured during the start of the lease. I also told her that I don’t want to be over a certain monthly payment and I’m having a hard time getting a brand new vehicle within that amount. She told me that with the equity I have in the truck now, that I should be in the price range. The reason I want to move to a 2500 is because I pull a 16’ enclosed trailer for my business and I also have a 36’6” camper. If it wasn’t for my business and having the camper, I would keep the truck I have now. Right now the truck is in my name, but my accountant says to put my new truck in my business name seeing how it’s mostly used for work than personal. My question is, is my salesperson trying to pull a fast one on me or should I do something different? Will I have trouble with having the current truck in my name and wanting to get the new one in the business name? I know nothing about this stuff. Any advice will be greatly appreciated. Thanks.
The salesperson also told me that I should order sooner than later due to a three month wait to order. But two days ago she found out that you can’t order 2021 models anymore so I would have to order a 2022 model but they don’t have any prices up right now.
residual value is taxed plus the dealer charges $99 for their 120 point inspection which is also taxed. My buyout was 18,995.00 after all is calculated it is 21,100.00.
Great Video, There are 3 months left on my lease and the Dealership is bugging me already. I like it . It has low miles and I want to purchase it. I am going to try to wait til the end.
How much do they charge per/mile on a leased vehicle? Is the mileage figures in on date of closing? Are there packages of mileage deals, or limitations on leased agreements?
It seems like you (we) have less negotiating power with a lease over buying at time of purchase? Is this true?
Jeff Freestone no difference. A sale is a sale to the dealer.
I was looking to lease a car last year November, it was very interesting that I got three quotes and all three were the same monthly payment for 48 Month lease with no down payment, each quote had its own dealer discount and different residual value, the three cars were Honda Accord 2L Turbo the value on website $37K( CAD), Subaru Lagacy XT( GT) around $39K and Audi A4 for $48. All three had same monthly lease payment!!!
So it all depends on the residual value, lease rate, the discount and your luck ! I got the A4!
Nice choice. The A4 is a great car. I'm hoping that you are enjoying it.
Your Auto Advocate thanks, I love it, also just maybe you like to mention this that most people who lease, write off the lease as expense in their business, that is extra saving, I am sure you know how it works, most business owners lease cars!
Always better lease expensive cars like bmw or Mercedes, or land rovers. After a 5 years their resale is crap and expensive to repair when they break down.
I purchased an 8-year old Mercedes eight years ago (so 16 years old now), still with only 130K miles on it. I purchased it for $14K with only 24K miles at the time. It has been an excellent car! I've really not had expensive repairs. Some things naturally had to be replaced at 100K, and that was a bit of a hit, but otherwise it's just been oil changes and minor belt/filter services. But now looking to try out a lease as I'm thinking SUV vs. sedan and not sure I want to commit as long given it's a new driving experience.
I have 7 payments left on my Nissan Rogue. After that, I am not walking away, I am running away from any other deals with NMAC.
So sorry to hear that!
I have 6 months left, and i want to turn it in early, my house is in foreclosure, so what more can they hurt my credit. My ex talked me into the lease, what a mistake.
If I was given a dollar amount(roughly $15,500) to buy my leased car at the end of the lease and I just had some major damage all underneath the car to include framework (truck in front of me lost a steel pipe of some sort and I had to hit it or swerve and hit another car), will I still be able to buy it for that amount or will it be worth less so I'll have the opportunity to buy it for less?
Well done, gentlemen, thank you so much. Exactly my situation, my almost premium car's lease will end in December w/ less than 12,000 miles. I anticipate working w/ Carvana or Carmax. Hope to make out pretty well.
You forgot to mention state sales tax. Next Jan my cadillac C5 ends and the residual is $29,000. If I buy it and resell I will need to get $31,000 to break even. Also add $400 for turn in. I'm not sure I will purchase, even though it will have less than 10,000 miles. This was my first lease (2 yr.). I trade about every 2yr. Plus has a summer car.
If your lease is up during the COVID-19 and the dealer says they can’t take back your vehicle you must kept it a few more months. They can’t do that you signed a contract when to bring the vehicle back and they must take it.
This vid was not a comprehensive tutorial , I've leased my last 4 cars with Nissan, every lease, I've turned in the vehicle 4 months early, and leased a new Nissan ( A Maxima), I resumed the new lease at the same payments and conception fee's with no payment or penalty on the Vehicle I turned in, kind of like passing the baton to myself, and only paying inception fee's on new car.
My accord lease is up in June
Should I let another dealer buy my lease out?
Dealers love Honda’s and Toyota’s, depends how many miles your accord has. For example, 20k-25k miles in 36 months would look good on their used car lot, especially a Honda Accord. Before you do something like that, ask around if they know anyone who works at a certain dealership and see if they buyout other vehicle leases.
What do dealers offer to older version models when a refresh of specific model are announced? What happens to the value of the older model?
^this please! Some multigenerational models have great production generations that are desirable, sometimes more than a current generation model.
In most cases, older model value wont go down until refresh model is released.
So if my car is currently worth 17k but my cars lease residual value is 10k can I go into the dealership and buy the car and get the 7k off the car? My lease ends in December and I’m trying
To look at all my options
So I’m in a Q5 .... ends in September and in about 12k miles over .... what should I do ...
Either buy the car at the end of lease, or walk away from the lease and be prepared to pay for the overage on the mileage, or get into a new lease or finance and they'll waive the overage. It's in the manufacturers best interest to keep you in a new car. Hope this helps.
When a decent car costs more than my first house who wants to pay one of those mortgage like payments for a damn car? A lease is cheaper monthly so there you are. No brainer.
Danny Walker I agree with you on that. I just paid off my house in November after 33 long years with 3 refinances. I couldn’t’t stand looking at a car balance of $48,000 for another 6 long years.
And I’m not gonna take out a equity loan on my home for a car
loan. Even though the interest on my equity loan could be an annual write-off on the car.
@@handsomepackage7004 what’s the best to refinance your house ? Any pro tips
You can't sell the car at the end of the lease unless you pay sales taxes only to another dealer like Carmax.
If my lease ends next month and my vehicle is worth more then my residual value can I turn it in and get into a new vehicle, with the positive equity from turn in value minus the residual value?
Fleecing is the most expensive way to operate a vehicle. See Dave Ramsey. On average paying 14% interest. Most people who lease cars fall into two main categories. Cat 1, people who have champagne taste and beer money they need to be poseur. Cat 2, people who have a business that can write off the lease as a business expense.
You get an *A* from me because you are one of the few people I know that spelled *POSEUR* correctly
Joe Jones thanks for the ‘A’.
Other than spelling poseur correctly, most of what you write is questionable. You left out Cat 3, people who don't want to buy a depreciating asset, don't want to be holding the bag when their financed car is in an accident and loses value, people who want to be able to predict their transportation expenses to the penny, people who like having a warranty during their possession of the car, people who like to have the latest technology. Even surprisingly affordable cars now come with tons of the latest safety features standard.
Christer Whitworth what happens when the leased car is in a accident? You have to pay for diminished value. What happens at the end of most leases? Many people of modest means have not much of a down payment and yet have that yearning for champagne with beer money. So the forever leasing. The only way to look at car “ownership” is what does it cost you all in to drive per mile.
@@appleiphone69 no, you do not have to pay for diminished value. Whoever told you that had an agenda.
So what’s the best option when your lease expires?
Everything sounds nice and good. But in leasing there is acquisition fee of x dollars like 600 to 1200 depends on the mfr , lease disposition fee at end of lease .. like 350 to 600. On top of lease charge ( finance charge) . When I can finance the car 0 down due at signing on a buy.. total finance charge is $1000 at end of 6 year loan .and only 50 or 60 bucks difference between 3 year lease pymt ( w sales tax included) and the 6 year loan ? After 3 years of my 6 year loan.. I have no headache of finding a bank to loan me money and no worries on miles and this n that