negoiateing lease buyout down??

[Cummins Cowboy]

I have a chrysler financial lease on my current truck that will be up in less than 2 mos. my buyout is 16k, the salesmen when my dad bought his new truck a couple years ago said it should be no problem to get that negoiated down to about 14k. My plan is to buy the truck, I am way over on miles and I believe I can make a substaintial amount selling the truck privately in my area. My question is what is the best way to do this???

 

[MMeier]

Just call Chrysler and see what your payoff currently is. I wouldn't divulge how many miles are on it otherwise they will look for their overage fees.

 

[JHardwick]

My question is what is the best way to do this???

Don't ever lease :-laf

 

[Cummins Cowboy]

Don't ever lease :-laf

you are right for the most part, it works ok with my business, If I can get the buyout down 2k will pretty much be a wash, but I will not lease again, because you are stuck with the vehicle for 4 years.

 

[fkovalski]

For those who say "don't ever lease" ... I say that you are not being open minded. For some, a lease is one way of getting into a vehicle without thowing good money after bad (so long as said vehicle keeps its value- such as a CTD. )



That being said, here is my experience:



I leased my 2001. 5- I did my home work and at the time the monthy payments were all I could afford as opposed to a purchase agreement. A lease allows one to get more vehicle upfront with the advantage of not paying full sales tax (the latter is pay- as- you- go. ) I knew my buyout at the end ($12,700) ... but also knew the relative sale value at the end... which was around $20,000 (with 65K miles. ) The relative comparison is only valid when milage is taken into account. If one plans to drive MANY miles and one can make momthly PURCHASE payment, then this is the way to go.



If yearly average miles driven are reasonable (i. e 12-15K) AND you plan to trade up (or sell) than a lease is a viable option (again... only if the vehicle KEEPS its percieved value. )



I was not able to negotiate down a lease (the terms are spelled out so why would a lending institution take less than agreed terms- especially if the end value is more than the buy- out?)



With a value kept vehicle such as my 2001, I actually built up equity via the lease but it would only be realised by either buying it out or trading. 20K- 12. 7 = $7,300 (approx. ) I could have always turned it in (and paid milage penalty) or at the least buy it for the AGREED purche end lease term and sell it and walk away with cash... or... use the equity towards a new truck.



I did the latter... my payments are only $20 more per month for a new 2005 over what a buy- out loan would cost. And the new one IS a purchase. When I tallied up a lease vs. loan it cost about $1500 more. But, for my budget at the time it was all I could afford and was not chasing shadows with my money... . And I was driving the truck I wanted. Any other vehicle BOUGHT with the same money would not have returned me the money I vested. (imagine a purchase of a gasser with the same monthly payment as a lease! imagine it after 5 years and think of what I would have as far as trade value for a new one!... not as much as with a CTD!)



Bottom line... I have never heard of 'negotiating down' a buy- out agreement. Use the end terms to you advantage, do your homework, know what you want to do and work it to your advantage.



JMO

-frank.

 

[JRMora]

Bottom line... I have never heard of 'negotiating down' a buy- out agreement. Use the end terms to you advantage, do your homework, know what you want to do and work it to your advantage.

Not so grasshopper.



I buy my trucks but we have leased several vehicles for the wife. Usually, when you are within the last month or two of the end of the lease, your lessor will contact you about final arrangements. Oftentimes, an offer to buy will be made, and that number is negotiable. If the manufacturer or dealer takes a vehicle back in they'll have to recondition and sell or auction the vehicle out. Selling the vehicle to the lessee can save them money, and that can give you some bargaining room. Be forewarned, though, that most leasing companies won't offer you naything but a full price buyout until you are almost at the end of the lease (last month on two). If you stilll have three or more months left to go, all you'll get from them is the contracted buyout price (the residual plus any remaing payments).



You'll be dealing directly with CFC (Chrysler Financial Corp), not your dealer.



Juan

 

[RankRam]

JRMora I had this happen in 2000, we had a little over a month left on our lease of a 1996 Grand Cherokee. We were contacted just as you said and they dropped the payoff price by $4,000! They also gave us a very good finance rate and sent us the paperwork to sign. This was a deal that we could not pass up. We then put the Jeep in the paper and sold it for the original payoff, this gave us a $4,000 profit.