joako

I have an '04 330, almost 40k miles. I leased it late 2004 and it was $480/mo+tax x 36 months. The dealer is now offering to sell me the car for a little less than $23,000, I believe that's without tax. The car is just the basic with leather, cd changer, power trunk, etc, but no navi, ML, heated seats, etc.

Is that a good deal? What has everyone else gotten for their lease buy outs? Has anyone done this before? Any hidden fees to look for? I assume I'll have to pay for a new registration under my name? The insurance I shouldn't even have to call the insurer?

coolhand

no lease out buy here but I just purchased 04 with 38K for $25900. Pretty much std package and in excellent condition.

Lil4X

Compare your buyout with the price of similar RX's on the lot. I bought out mine for about $12K under a similar car with more miles. Thanks to an overestimate of my use of the car, I paid too much over the life of the lease. I saved my investment by purchasing the car - and still have the ability to sell it at a small profit. YMMV

With the tax advantages of leasing changing (and fading) every year in Texas, I probably won't lease again. but pay this one out in a year or so and trade it.

rxdriver

That's how they "get you" on a lease. The residual value, or what it's worth at the end of the lease, is much lower than the value truly will be at that time. But you've been making lease payments all this time assuming the car would be worth $23,000. You've paid for the "extra" depreciation already, so that's just money in the dealer's pocket if you give the car back at the end of the lease.

If the residual value were more realistic, your lease payments would have been lower. So what seems like a good deal at the end of a lease really isn't a deal; you've already paid for it over the last 3 years!

To answer your other questions, there shouldn't be any hidden fees. You just have to pay or finance the residual value, which transfers ownership to you. You will have to notify your insurance company as a technicality, because you'll be the owner rather than the finance company. You could have a similar issue with license plates. In Illinois, the license plates are issued to the owner of the car, so on a lease the plates are always in the name of the finance company. (Most finance companies will put "care of" or something like that to get your name on the registration.) So in Illinois you'd also have to get new plates issued in your name.

joako

Yes.. same thing in Florida I had to switch plates between leases because the dealer moved from Toyota Credit to USBank.

Also, does anyone know how I can find what these cars are selling for at auction? I am going to try to negotiate for that price

joako

Oh and can I get the dealer to CPO the car for me? What are the limits for the CPO program?

jjbodean

yes, that is a good deal, and yes, the dealer should be willing to cpo the car for you as well

jjbodean

and normally it doesnt happen that way. normally the car is worth less than the residual and you turn it in and walk away and the leasing company eats the loss. most of the time there isnt any equity at the end. sometimes, but not usually.

joako

So for that price i should get CPO as well or is there an additional cost for it? Does anyone know what the dealer pays for CPO?