I have a quote from a dealer to buy my leased car, just wondered if that is a fixed thing. My lease is up in three months.
As long as you aren’t “grounding” the lease, then yes. It’s up for negotiation. Your payoff or residual value are not.
Grounding? Sorry, I don’t know what that means.
I guess in layman’s terms it would be turning in your leased vehicle. Not trading it in, not selling it, but turning it in just like you would at the end of your lease except you are not at the end of your lease.
Sometimes dealers will ground the lease then just roll the remaining payments, fees, and penalties into your new lease. You think you “sold/traded-in” your vehicle to the dealer but you did not. They “grounded” your lease and returned the car back to the captive.
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I see. Thanks for your help.
Check how much is your payoff amount? How much is the dealer offer? Check if your lease allow 3rd party buyout.
+1 to this.
The price to buyout your own lease is fixed and defined by the contract.
The bank may or may not allow a 3rd party to buyout your lease, and a 3rd party buyout price may differ from what you would pay to buyout the lease.
The dealer’s offer for your car is negotiable.
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The dealer quoted 32k and change. Residual value is $30295. I think there’s tax (4.15%) and other nickel and dime stuff that gets added on to bring it up to $32k. I put down $5k or so in MSDs so that should get deducted from the quote.
I’ll just buy it outright, I won’t finance it. Not sure if that’s what you’re getting at with the third party thing.
3rd party means someone else buy your car directly from the leasing company. Ex: you are selling your car to carmax. Instead of you payoff the car from your leasing company then sell it to carmax - carmax pay off the car and pay you the difference between the payoff amount and what they offer to buy.
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