Jump to content

End of lease risidual


Ta00dan

Recommended Posts

Leases can be written so many different ways with so many different factors, that it would be hard to get an accurate figure from anyone other than the selling dealer.

 

You can easily see what the value of a 2010 may be by checking the different websites such as KBB, Edmunds, NADA, etc. This will give a general idea of what the car may be worth. What the buyout figure is going to be may be completely different.

Link to comment
Share on other sites

My lease paperwork says my buyout price.

 

The point was that the buyout is really just a guess based on the estimated residual value at the time of lease. It may or may not be the current wholesale price 2 or 3 years later. The market can change. Sometimes the buyout is cheaper than the current market and sometimes it's more expensive.

Link to comment
Share on other sites

In my experience the buyout price has always been determined at the start of the lease, because what you are paying for is the difference between the original price of the car and the expected residual at the end of the lease plus taxes and interest. Whether or not it makes sense to buy your car off lease depends how well they estimated the residual value of the car. On my last lease, the buyout price was about $8,000 less than the true residual value so it was a no-brainer to buy the car even just to turn around and sell it.

Link to comment
Share on other sites

  • 2 weeks later...

The buy price is on your lease papers. If you are signed up for "auto pay", you can get that number from your account on the computer.

 

Market value at lease end you won't know until lease is over, and you'll probably have to figure that out yourself. There is a big difference between wholesale and retail price.

 

I'm leasing our 2012 Limited Edge with NAV on 27 month lease (and investing the cash I didn't spend), and have no intention of turning our Edge back to the dealership.....unless they want to give me $3000-$4000 to do it again saving me the sales tax on the buy. Will start that negoitation near lease end. My buy price is $23,300 in April of 2014. It will have about 22,000 miles on it, garaged 100% of time, and be as clean as the day I got it.

 

Most likely I'll buy the vehicle, drive it a couple months, then sell it and try to make a few thousand. Already made about 10% on cash I didn't spend, so this deal is working out pretty good. Driving this Limited Edge fairly cheaply. Then look for something else to drive.

 

Leasing is more complicated than just paying a check every month. It costs more to lease.....unless you have the cash available to invest successfully elsewhere. For most, buying is better. Study up on your options, There may be opportunity for you. After all, dealership will want to sell another car at your lease end. Put your car in show car condition....interior, under hood, door jams, paint, wheels, tires, etc. Mine stays this way.

Edited by RJG
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
×
×
  • Create New...