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Returning a leased car back to the dealer

Discussion in 'Off Topic Threads' started by senior smoke, Mar 12, 2013.

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  1. senior smoke

    senior smoke Well-Known Member

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    Hello:
    I have to return my mother's leased vehicle on Friday back at the dealership. I made an appointment with the salesman that she originally dealt with.

    He asked me the year of the car, it's a 2010, and mileage is 17,300 miles. He said he will try to get some money for my mom. He said he will have the vehicle appraised Friday and if it is worth more than the buy out, he can have the dealership cut a check for the difference to my mother.

    He said with low mileage like that, and if it's in very good condition, the dealership will most likely pay off the lease, and keep her car and sell her vehicle themselves.

    Is this standard practice? Never heard a salesman or dealership offering this?
    Steve Balistreri
     
  2. slayer

    slayer Well-Known Member

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    Sounds like he's doing you a favor. Bill
     
  3. yakimaman

    yakimaman Well-Known Member

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    You mom has been making lease payments based on the difference between the purchase price and the residual price at the end of the lease. If the car is worth more than the residual agreed upon at the start of the lease then someone is going to make some money on it. Nice that the dealer is bringing it to your attention.
     
  4. senior smoke

    senior smoke Well-Known Member

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    The salesman seems to be a good guy. I never heard of any salesman offering this before.
    Steve
     
  5. Carl Chadwell

    Carl Chadwell TS Member

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    Standard practice at Honda Dealers in my area.

    peace.
     
  6. Hooked

    Hooked Member

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    My experience is the same as Carl's regarding Honda/Acura.

    I've leased two Acuras in the past for work. Each time, the market value of the car was worth more than my residual. The dealer applied the difference towards the money down on my next lease. Good way to retain customers.

    Brian
     
  7. PULL PULL

    PULL PULL Member

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    In the contract of your moms lease. You have a buy option at the end. First find out what that number is. Take your car to other dealers to get a buy offer, both new car and used car stores. You can sell it to anyone. Take the money left over from them buying your car. And put it in your pocket. Don't forget sales tax that you will have to pay. Sales tax was figured into your lease payment. Ask around to other dealers what there buy offer is.You have nothing to loose.
     
  8. senior smoke

    senior smoke Well-Known Member

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    Pull:
    Great idea.
    Thanks,
    Steve
     
  9. Auctioneer

    Auctioneer Well-Known Member

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    What I have learned from a lease is never to lease a car.
     
  10. Frank C

    Frank C Well-Known Member

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    Several years ago I leased a Toyota sequoia and at three years I got the letter in the mail asking if I was interested in a buyout, I wasn't, and the day came to turn in the vehicle! I brought it in, they did the once over, finished up the paperwork as I sat with the lease agent, when all papers were signed I sat looking at her, she snidely said, that's it, with a look of what are you waiting for? And next!? I sat and stared at her, but she never got it. Not once had any salesman asked if I might be interested in oh, what maybe ANOTHER TOYOTA??? I finally got up walked across the showroom floor, totally ignored and looked for my ride home.
    A few weeks later I got a letter from the general manager of the dealership wanting me to trade in my already returned Toyota??? Nice timing buddy, I sent a letter back about this whole story and added that I had immediately gone out and bought a new Honda! A few weeks later I got the same letter again??? The place is stillin business too????
     
  11. LUGNUTZ426

    LUGNUTZ426 TS Member

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    My sister turned in her very clean Jeep and the mileage was below the limit.
    They offered her money back which she applied to new lease. Her new lease wound up 20 bucks a month less then the old one and the new Jeep was a more expensive model.
     
  12. Leo

    Leo Well-Known Member

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    I have been buying clean 3 year old cars cash outright since I made my last car payment in '96, So I maybe out of the loop. I see leases advertised all the time. I do not understand. You put money down that could be a down payment, you make payments on the car for say 3 years, and in the end you give it back. If you kept it nice and didn't use it much, you may get a little back. If you over used it, they charge you very heavily. You still have to maintain, put gas in it and insurance just like if you own the car, right? If you have a down payment and can make monthly payments, why wouldn't a person just buy it from the start and use it however much you want. If you like to trade every 3 years you will own all the equity in the car.

    I understand why a business leases because of tax laws. Why does an individual lease? I am not picking on anyone, I just am trying to figure what benefit an individual gets from leasing.
     
  13. thunder

    thunder Active Member

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    I have never leased a car personal use or business lease. If I still am able to drive when in my 70's I will lease, why not. Get a new car every three years.
     
  14. bcnu

    bcnu Active Member

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    Leases are attractive because as long as you take care of it and don't go over your miles, you are NEVER upside down on the car. Financing one it takes about 3 years to be at the break even point and even then you could still be upside down on it. John
     
  15. bossbasl

    bossbasl Active Member

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    Auctioneer is very close to the mark. Financially, very, very few personal vehicle leases can be justified strictly in cost to own terms as compared to e.g., buying a late model very high condition used vehicle. It only makes sense, the biggest cost of vehicle ownership is depreciation. Guess where the depreciation curve is at it's highest. If you answered: when you drive a new vehicle off the lot, you have figured out this simple financial lesson. If not, then it bolsters the reason most working class folks never acquire any wealth.

    Lyle
     
  16. Bvr Tail

    Bvr Tail Well-Known Member

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    My brother-in-law has leased for himself, his wife, and daughter for years, and I don't think he has ever had a "real good" lease return.

    Most recently, he went to return a 2010 Pont. that was immaculately kept, as all his cars are.

    He told them he had backed over a parking stop, and slightly bent the tail pipe. He had it straightened at a local, very reputable, body shop ( not a exhaust shop ) and it looked fine, and did not leak. It was only bent at the very end.

    When the dealer did the inspection, he was told the tires on front were worn below lease limits, and needed replaced. He went to a tire shop, and replaced the two front tires with 80,000 mile tires.( About $450.00 )

    When he returned, they said they were different from the rear tires, and they would not accept them, but they wanted the original make of tires on the vehicle. This was not previously mentioned.

    Now, he had to replace them again, with original tires, and this tire shop would not make a deal on the tires with only 8 miles on them.

    Plus this dealer had the service department look at the exhaust, and they charged him for a new exhaust system on one side.

    He is a very nice man, and paid what they wanted, just to lease another vehicle from them!
     
  17. bossbasl

    bossbasl Active Member

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    Bvr Tail: Thanks for sharing the car leasing tale. It proves the point that those that lease leave their chance to gain some financial freedom in the hands of a car salesman. As this story illustrates, the results are always predictable. Lyle
     
  18. Auctioneer

    Auctioneer Well-Known Member

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    I knew one person who leased a car. They were dragged across hot coals when they turned the car in. That is why I made the first post.

    The dealer looked the car over. Every inch of the car. Anything and everything was looked at and they were charged for each mark. Mileage is also a factor. You can only drive the car as far as they want you to. If you go over you have to pay. You pay for all service on the car. Oil change, tune ups and so on.

    After you turn in the car you will write a check. You as far as I'm concerned are just throwing away your money on a lease car.

    All my cars have been used. My first car I drove till it had 160,000 miles, the second car 170,000 miles. Rust took that car out. A Jetta that had alot of problems just died after 18 months. The next WV car I know I had well over 200,000 miles on it. It was a good car but started to nickel and dime me. The best car is my 740 Volvo. Its still running and I have 258,000 miles on it and its doing well still. I will buy a car and do as I please with it.
     
  19. bossbasl

    bossbasl Active Member

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    Auctioneer: Good advise. Your VW experience somewhat mirrored my experience. As for the Volvo's (have owned approx. 8 in various models) the experience has been extremely good; the exception being a new 1976 264 which was the worst car I have ever owned and the last new car I have purchased. The 850 and V70 series have all been driven well over 200K miles with only routine maintenance. I used to keep very detailed records of every dollar spent on a vehicle and then would get my cost per mile figure when I sold. The CPM always exceeded buying/leasing new by a huge margin. Today, I can easily prove that this difference has improved my net worth over $200K versus buying/leasing new. This may not be significant to some but the cash flow on $200K certainly creates more than enough to do all the shooting/gun stuff I can muster. Lyle
     
  20. Auctioneer

    Auctioneer Well-Known Member

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    Bossbasl, with the Volvo 1976 264 I will take a shot in the dark and say it was the 6 cylinder engine that gave you all the problem. Not a good engine as I have been told. It wasn't balanced very well and it shock itself apart. Volvo at that time made a great 4 cylender.

    I would like to buy another Volvo but now they are owned by China. I have a problem with buying a car that is made by China.
     
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