SW17LS

I like those CHRs, great cars for a kid. Fun, safe, economical. One of the staff members in my office got one a while back same color.

bitkahuna

iTrader: (20)

have you not heard the term "bait and switch"?

and how magically the "deal" vehicles were sold "just" before you contacted them, but they do still have this MUCH more expensive one they'd love to sell you?

Kira X

iTrader: (24)

My dealership barely even has any new cars to sell. According to one of my friends in preowned sales, the cars are already sold before they even arrive at the dealership. There was ten cars on the lot when I was there last week.

Fizzboy7

Yes, same situation here in northern L.A. Nearly all the dealers are sold out of new cars. I've never seen it this bad. I wonder what the volume of new cars coming into the dealership is now compared to a few months ago or earlier in the year. It has to have dwindled even more, as sales are up, but not up to the point of wiping out a major city's inventory. Truly nuts. My lease ends in about one year and I am starting to loose sleep over what may be.

mmarshall

Does your lease-contract stipulate that you can buy it out at the end of the lease for a set/pre-determined price? If so, that will make it a lot easier for you....simply buy it out at whoever the pre-agreed price was when you leased it, and you won't have to worry about what a new vehicle costs (or even that one, if it has appreciated in value).

Fizzboy7

Yes, it is set up for that, as most leases are. I can also sell it privately for a nice price, but that points to having to get a new one.
The practical side of me is saying, just buy it out. The car-nut side of me is saying, "special order the exact car you want."

bitkahuna

iTrader: (20)

left brain, right brain.

bitkahuna

iTrader: (20)

it will certainly be a 'december to remember' - msrp and higher, little to choose from...

SW17LS

FYI, 99% of vehicle leases have a residual buyout in the contract. Thats how leasing works. The only ones that don't are what are called "open ended leases" and those aren't used by consumers, only in corporate and fleet leasing. ALL consumer leases are "closed ended leases" which have a residual and a buyout. Exception is Tesla and some other EVs which have a residual but don't have a buyout option.

mmarshall

Yes, that part I'm aware of, but what you will actually pay at the buyout could either be the usual KBB/NADA-residual value (which cannot necessarily be predicted in advance, as it will vary with market-factors), or a fixed, specific X-number of $$$$). IF the latter, as I see it, it will probably make Fizzboy's choice at the end of the lease a little easier, not having to worry about having to pay today's highly-inflated new-car (or used-car) values.

SW17LS

That is not correct. In a closed ended lease the residual is never a fluctuating number, it is always a fixed number that is agreed to upfront. The residual is used in the calculation of the payment, so it has to be agreed upon upfront.

What you describe where the residual fluctuates due to market factors is an open ended lease, and like I told you no consumer leases are open ended. No car manufacturer for instance offers open ended leases.

bitkahuna

iTrader: (20)

Yup, my leased santa fe 'price' is about $43K and at (3yr) lease end i can buy it for $26K i think. That's in writing. I doubt i will, but i could.

mmarshall

Well, that was the point I was trying to make with my last several posts....and the conversation wth Steve. If you can actually buy it for 26K, in writing, at the end of the lease, you will probably make out like a bandit, given that it will probably (but not certainly) be worth substantially more than that, unless the current classic Seller's Market changes drastically between now and then. My guess is, though, you will probably want to try something else (like maybe the new G70)?, or an all-electric vehicle, assuming you have access to recharging.

SW17LS

Mike, admit that you didn't understand how residuals and buyouts work with leases. The point you were trying to make was incorrect.

There is no IF he can buy it. He CAN buy it. Its already spelled out and agreed to in the lease.

JDR76

If you get to the end of the lease and have good equity in value versus the buyout and don't want to keep it, just sell it or trade it and pocket the difference.