End Of Lease Options
03-10-2005, 02:25 AM
#1
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End Of Lease Options
What's the best route if your car's lease end is coming up with the following conditions:
1) Market price for the car is $25k.
2) Your residual is $34k.
There is no sentimental attachment to the vehicle, but I was wondering if the bank will be willing to sell the car if I offer a purchase at the market value as opposed to the contract residual.
What will the bank do on the premise:
1) The bank will never sell the car at the residual at the current market (if I walk away from the lease).
2) The bank will probably have to spend a few thousand to get the car to pre-sale condition.
3) They will have to wait for a buyer that can qualify.
Lastly, selling the car to the lessee seems to be a more practical choice since the lessee is already proven to be financially capable.
1) Market price for the car is $25k.
2) Your residual is $34k.
There is no sentimental attachment to the vehicle, but I was wondering if the bank will be willing to sell the car if I offer a purchase at the market value as opposed to the contract residual.
What will the bank do on the premise:
1) The bank will never sell the car at the residual at the current market (if I walk away from the lease).
2) The bank will probably have to spend a few thousand to get the car to pre-sale condition.
3) They will have to wait for a buyer that can qualify.
Lastly, selling the car to the lessee seems to be a more practical choice since the lessee is already proven to be financially capable.
03-10-2005, 11:20 AM
#2
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Location: Cincinnati, OH
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The lender would love to sell you the car instead of having you return it. A few things to consider:
1) Let them contact you first. Show very little interest in buying the car. The next time they call you have your wholesale numbers ready and let them know based on these numbers what you think a fair price would be.
2) They probably have residual value insurance that will pay them a certain amount up to the residual value. It normally does not make them whole so there is usually some room to negotiate.
3) Reconditioning for the auction is usally a few hundred $$$. If there is extra wear and tear they will bill you for that. Just make sure they do the inspection prior to turning the vehicle in so you have time to fix any problems they want to charge you for.
Let me know if you have further questions.
1) Let them contact you first. Show very little interest in buying the car. The next time they call you have your wholesale numbers ready and let them know based on these numbers what you think a fair price would be.
2) They probably have residual value insurance that will pay them a certain amount up to the residual value. It normally does not make them whole so there is usually some room to negotiate.
3) Reconditioning for the auction is usally a few hundred $$$. If there is extra wear and tear they will bill you for that. Just make sure they do the inspection prior to turning the vehicle in so you have time to fix any problems they want to charge you for.
Let me know if you have further questions.
03-10-2005, 11:29 AM
#3
MBWorld Fanatic!
I've been through a lease return and the "inspector" used a file card...she stated anything defect larger than file card would be considered more than the usual wear and tear. Also, they really were *****ly about tire wear, so make sure you have decent tread on car or get tires for it...don't let them get the tires or you will pay a premium.
