New or Used (off-lease)?

[mjonis]

Has anyone ever purchased an off-lease vehicle? I don't mean one that you leased and then purchased, I mean one where someonen else leased, turned in at end of lease, and then you bought it "off-lease"?

 

If so, is the residual value a good number to base potential price on? Or does the dealer take the residual price and tack on a little extra and then sell for something more?

 

I believe that the residual on the 2015 Edge is 56%

 

I'm still a ways out (especially with the 2016 models being delayed some more), but in our area, looks like a 2015 Ford Edge Platinum with 302a and tech package has MSRP of $42,995 and TrueCar of $41,246 (not much of a discount, IMO). If Residual is 56%, then I could theoretically wait 3 years (well probably closer to 4 by the time Ford comes out with the 2016) for $24,000

 

Although that's a tad longer than I'd like to wait.

 

Anyway, just mulling things through. $24k is a big price difference for waiting a few years (I'm guessing the 2-year lease is not very common).

 

Obviously "New" is easier, but more expensive. I'm a little surprised that the TrueCar pricing in my area (12205) is only about $1700 off MSRP compared to competitors. Altough Ford's NET pricing lists for under TrueCar's pricing (40,something). But I have a feeling the website lists incentives I'm not eligible for.

 

And I probably have to factor in if I buy used, I will need (well will want) an extended warranty, so that's a cost factor (plus my "trade-in/private party" will be half what it is now).

 

[akirby]

The residual is the wholesale value - that's what a dealer would pay. They're going to mark that up before they sell it to you. If you happened to find one before it got turned in you could get the owner to buy it for you and pay them a small fee but that would be really lucky.

 

If you want a warranty you might be better off buying a CPO vehicle. I would guess a CPO vehicle that wholesaled for $24K would probably cost closer to $30K retail.

 

One option to keep costs down is to lease a new one, then buy it out and finance it for another 2-3 years if that's the goal.

[my 2012 edge]

how about certified used it comes with a extended warranty

[akirby]

how about certified used it comes with a extended warranty

That's CPO - certified pre owned.

[mjonis]

Thanks for the info. I forgot about CPO (didn't know it was called that until now). LOL! But it sounds like they'll tack some extra on, although 30k is about $12k cheaper than Trucar pricing if new. Of course there's no guarantee the vehicle I want with the features I want will come in off-lease. And I'd need one local enough to test drive (will not buy a car without taking it out for a spin). Thanks for the info though, it definitely helps!

[WingNut]

I am under the impression that when a car comes off lease, it doesn't go back to the dealer. It goes to the leasing company which, sometimes, is a 3rd party bank/institution. They then auction the car off which some dealer (could be Ford dealer, could be a CarMax type place, or could be your mom/pop shop) buys it. Then they sell it for whatever they feel the market will pay.

 

Unless some dealers have first bids on off-lease vehicles.

 

I know my leased '15 Sport's MSRP was around $45k and the end of lease buyout is around $26k.

[Southpaul]

Shop Smart!

 

Yesterday I came home with a 2014 Limited base package (300A). It has 28000 on the clock.

Used most of the car shopping sites. Car Guru, True Car, Car Fax, and Auto Trader.

The MSRP was around $35995

My purchase price was about 35% off MSRP. (be prepared to negotiate) The advertised price was above book value. We bought below book value.

We drove several other Edges and ran a Car Fax on each.

This unit was very tight with no wear to show other than the tires.

This Edge was a 1 yr lease that made its way to the dealer.

I know some people have landed a better deal, but I am happy.

 

Best wishes,

 

Southpaul

[rhales]

Patience is what you need in this situation. You may or may not find exactly the package you want. You may find one that has more options or less like me, the price was so that you could not pass it up. I too Recommend the CPO option.

 

I purchased a CPO 2014 SE Model with 24k miles because the price was lower than what I was looking for. Figured in the end the cost saving was worth the few extra bells and whistles I could live without. It was low enough also that I was able to purchase the extended B2B warranty up to 100K and still be within my budget.

 

Very Happy with my purchase.

[mjonis]

Yes, I like the used route if I can save that much, however, it seems that in my area (upstate NY - 12205), nobody has the Titanium Edge with 302a and Drivers Assist - not even NEW.

 

So I am concerned that if it's that difficult to get that package NEW, imagine what it'll be like trying to find one used that's within a 4-hour drive (I would never buy one without being able to physically look at it and drive it, etc.)

 

Vs. the others I'm looking at, everyone has new ones in stock (lots of them) with the options I want, so I think used would be easier to find in that case (if I don't go with the Edge).

 

Fortunately looks like I'll be waiting for all of them for the next year's model anyway to address some issues and things.

 

Our local Ford (we have lots) has all CPO with 7-year /70k powertrain warranty, so that's pretty good. Not b-to-b, but that can be added on.

 

I'm also wondering about leasing (essentially no money down and 0%?) and then buying at the end of the lease.

 

We'll see how much cash I can save up between now and then, too.