Buyout at end of Lease..

[Nufy]

Can you negotiate on a lease buyout ?

I have a vehicle coming to the end of its lease and I am interested in buying it out.

Can you negotiate based on the residual valve in the lease agreement or is it typically cast in stone ???

[Mitsu3000gt]

Yes they can pay you some of the difference if there is a big gap between residual & market and the dealer wants the car for used stock. I was offered this in advance before I even leased my car. If you're the one buying it out though you can't negotiate lower.

[Xtrema]

If your buyout costs significantly over retail and it's a common model, you may want to try.

But the owner (whoever finance the lease) has 0 obligation to do anything beyond what's agreed upon on the contract when you signed the lease.

Most lease buyout are set up at or below retail, usually people buy out and flip to get the downpayment for next car.

[Aleks]

Originally posted by Xtrema
If your buyout costs significantly over retail and it's a common model, you may want to try.

But the owner (whoever finance the lease) has 0 obligation to do anything beyond what's agreed upon on the contract when you signed the lease.

Most lease buyout are set up at or below retail, usually people buy out and flip to get the downpayment for next car.

If the buyout is significantly over, give the car back and walk away.

It all depends on type of vehicle it is really. I just sold a lease 30 months into it for $7,400 over buyout. :burnout:

[Nufy]

2013 Honda CRV EX.

Buyout is certainly less than retail. At least according to Autotrader / Kijiji searches etc...

Just wondering if I can save a few more dollars.

thanks

[Xtrema]

Originally posted by Nufy
2013 Honda CRV EX.

Buyout is certainly less than retail. At least according to Autotrader / Kijiji searches etc...

Just wondering if I can save a few more dollars.

thanks

Other than the leases return set at around 2007/08 when the $cdn were on a tear against $usd and ruin the used car prices, I have yet to see any buyout that is set at higher than retail.

[Mitsu3000gt]

Originally posted by Nufy
2013 Honda CRV EX.

Buyout is certainly less than retail. At least according to Autotrader / Kijiji searches etc...

Just wondering if I can save a few more dollars.

thanks

Your options are:

1) Buy it out for the contract residual and keep it (you won't pay any less than the contract residual)

2) Buy it out and sell it privately to improve your overall cost of ownership

3) Give it back to Honda and walk away / lease another one

4) Sell it to the dealer for somewhere between contract residual buyout and private market price. This may or may not be possible depending on the price delta.

The only way to realize a gain or benefit on the transaction is to sell the vehicle. There is no way you get to keep the vehicle, AND pay less than the contract residual, especially when the vehicle has a market value higher than the residual.

Honda over-depreciated the car, and you paid for that over the term of your lease - your best bet financially is to sell it and claw back a few grand or whatever it is to help even it out, or buy it out and keep it until it dies.

[ExtraSlow]

If Honda Over-depreciated the car, would you be willing to pay them MORE than the buyout amount you negotiated at the beginning?

[Mixalot27]

You can save a few hundred in admin fees if you do the buyout directly with Honda Canada Finance instead of going through a dealer, or at least you used to be able to a few years ago when I bought out my Honda.