Buy a car at the end of your lease.
Buy a car at the end of your lease.
Buy a car at the end of your lease.
You’ve come to the end of your lease and you like you car enough you want
to keep it in the driveway. Just like buying a used car, there is some
research to be done to nail a good deal.
First, you need to know the cost of buying out your lease. Read the fine
print of your contract and look for the “purchase option price”. This
price is set by the leasing company and usually comprises the residual
value of the car at the end of the lease plus a purchase-option fee
ranging from $300 to $500. When you signed on the dotted line, your
monthly payments were calculated as the difference between the vehicle’s
sticker price and its estimated value at the end of the lease, plus a
monthly financing fee. This estimated price of the car value at the end
of the lease is what is termed in leasing jargon “residual value”. It is
the expected depreciation – or loss in value – of the vehicle over the
scheduled-lease period. For example, a car with a sticker price of
$40,000 and a 50% residual percentage will have an estimated $20,000
value at lease end.
Now that you know the cost of buying out your lease, you need to determine
the actual value, also termed “market value”, of your vehicle. So, how
much does your car retail for in the market? To pin down a good, solid
estimate you need to do some pricing research. Check the price of the
vehicle, with similar mileage and condition, with different dealers. Use
online pricing websites, such as Cars.com, Edmunds.com and Kelly Blue Book
for detailed pricing information. Gleaning pricing information from various
sources should give you a fair estimate of your vehicle’s retail value.
All you have to do now is compare the two amounts. If the residual value is
lower than the actual retail value, than you’re into a winner.
Unfortunately, there is a good chance a car coming off a lease is a little
on the high side.
Don’t despair though. Leasing companies know as much that residual values
on their vehicles are greater than their market value and as such are
always on the look out for offers. You can knock down on the price of your
leased vehicle with some smooth negotiating tactics. Put forward a price
that is below your actual target and negotiate hard until you wind up near
that figure.
Originally posted 2008-10-03 03:00:04. Go Home page
Tags: lease period, sticker price, option price, depreciation, residual value, edmunds, dotted line, car value, Auto, leasing company, leasing companies, residual values, retail value, good chance, purchase option, buying a used car
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Your understanding is incorrect. You pay for rent by the month, not the day, unless the lease specifically allows it. If the lease period ends at the end of the month then you need to give notice effective the end of the month. Unless your lease ends on the 13th of the month you can't just pick that day unless you're willing to pay for the entire month of December's rent.
You are right, but different cars can have widely different residual values even if the prices are the same. Cars that hold their resale values well, such as Honda, Lexus, BMW, are better to lease than cars with low future resale values, such as Kia, many Fords, many Chevrolets. Here's an article with more details:
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You are right, but different cars can have widely different residual values even if the prices are the same. Cars that hold their resale values well, such as Honda, Lexus, BMW, are better to lease than cars with low future resale values, such as Kia, many Fords, many Chevrolets. Here's an article with more details:
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& will be giving away 10 FIT Complete Packs ($180 retail value). Enter at
Windmill Leasing Listed Among Top 50 UK Business Car Leasing Companies –
Pull back lid to dotted line. Fill cup to inside line with boiling water. Close lid. Let stand for 3 min. Remove lid. Stir well + enjoy
FS: Glycine Airman 7 Plaza Mayor XL World Time Watch 3861 *Brand:* Glycine *Brand Style:* Airman 7 Plaza Mayor *Model #:* 3861 *Retail Value:* $7,250.00 *Gender:* Men’s – Gents *Condition:* New in Box *Box:* Glycine Box & Papers
You are right, but different cars can have widely different residual values even if the prices are the same. Cars that hold their resale values well, such as Honda, Lexus, BMW, are better to lease than cars with low future resale values, such as Kia, many Fords, many Chevrolets. Here's an article with more details:
.
Ford cuts price of Sync in-car connectivity system
USA Today
Ford is cutting the price of its hands-free, in-car connectivity Sync system by $100 and making it an option on base models for the first time. The move to price the system at $295 will help broaden Ford’s appeal. …
Ford Seeks Higher Sync Sales by Cutting System Price to $295Bloomberg
Ford Begins New Pricing Strategy For SYNC; Dropping Option Price To $295RTT News
Ford Drops Price of SYNC by $100, Making Hands-Free, Voice-Activated In-Car …PR Newswire (press release)
all 17 news articles »
Your understanding is incorrect. You pay for rent by the month, not the day, unless the lease specifically allows it. If the lease period ends at the end of the month then you need to give notice effective the end of the month. Unless your lease ends on the 13th of the month you can't just pick that day unless you're willing to pay for the entire month of December's rent.
You are right, but different cars can have widely different residual values even if the prices are the same. Cars that hold their resale values well, such as Honda, Lexus, BMW, are better to lease than cars with low future resale values, such as Kia, many Fords, many Chevrolets. Here's an article with more details:
.
I'm not sure what it stands for, but it's a railcar leasing company.
Your understanding is incorrect. You pay for rent by the month, not the day, unless the lease specifically allows it. If the lease period ends at the end of the month then you need to give notice effective the end of the month. Unless your lease ends on the 13th of the month you can't just pick that day unless you're willing to pay for the entire month of December's rent.
Your understanding is incorrect. You pay for rent by the month, not the day, unless the lease specifically allows it. If the lease period ends at the end of the month then you need to give notice effective the end of the month. Unless your lease ends on the 13th of the month you can't just pick that day unless you're willing to pay for the entire month of December's rent.
The owner of a lease car is (drum roll please) THE LEASING COMPANY.
If your car is from Honda, it is probaly something like "HONDA CREDIT CORP" or "HONDA ACCEPTANCE CORP"
You are right, but different cars can have widely different residual values even if the prices are the same. Cars that hold their resale values well, such as Honda, Lexus, BMW, are better to lease than cars with low future resale values, such as Kia, many Fords, many Chevrolets. Here's an article with more details:
.
Is your name Hank Hill? LOL
This reminds me of an episode from 'King of the Hill'…… whenever he would buy a car, the same dealer would treat him like a king and charge him sticker. So for 30 years he thought he was getting a "special" Hank Hill price which was nothing more than the sticker price. LOLLLLLLLLLLLLLLLLLLLLLLLLLLLL
You definately should take someone who knows how to negotiate for you.
thats why i dont sign on the dotted lines. problem solved.
According to what I see there, you put down 3K to secure the option of purchasing the house. If you can't purchase it, or just decide not to, you lose that 3K. This is why, as landlords on this list will freely admit, landlords like lease-purchase options. Very seldom does the person in one actually wind up purchasing the home, and the landlord gets to keep the deposit and offer the house to someone else as a lease-purchase. 3k is actually pretty small… sometimes its 10-20K.
Insurance companies use and use the clean retail value of the car. They then deduct any damage not related to the accident from the value of the car and pay you that amount. For example, let's say your car is worth $5000 but has $1000 in hail damage, they will pay you $4000.