I have to either buy the car I’m leasing, or turn it in.
I’m considering buying the Cruze, so I called GM Financial. They claimed the buyout price is 13,500.
Before the call, I did some reading about the process of buying the car at the end of the lease. I read the price can be negotiated down, and that the bank (in this case, Wells Fargo) truly owns the car, not the dealership.
I explained this to the person with GM, and she really didn’t understand what I was saying.
My questions are:
How much can I expect to get the purchase price down? I plan on getting the money through a credit union, or I just might take the money out of my savings and buy it without taking out a loan.
If I lease a car again, do local dealers tend to honor prices/ad from out of state dealers? If I lease from the same dealer, or another Chevy dealer, how likely is it that they will cut me a break on excess miles (I went approximately 3,000 over, that times 25 a mile adds up to 750 dollars)
Anything else I should know? I think i got hosed on the lease (details in the original thread), so I really hate this process.
The only way that the dealer can offer you a lower price is if they purchase the car at the GM Financial dealer rate, and then sell it to you. Otherwise, you cannot negotiate the residual. I’ve heard of people doing this with BMW, but not with other makes. You do not negotiate with GM Financial. Ally and US Bank negotiated on Gen 1 Volts, but that’s about it.
You won’t know if a dealer will match a quote until you ask. GM Financial will waive up to $500 in excess mileage fees if you lease again with them. You would only be on the hook for the extra $250.
You didn’t get hosed on your lease. If you calculated in the down payment, it will be a bit over the 1% rule. You signed almost two years ago so you should move on. Life is too short to dwell on things like that.
With the buyout option, does Wells Fargo own the car? If so, can I get them to bring the purchase price down? I read that banks are eager to do this, to avoid having to sale the car to someone else. (I know you explained this, but I’m still a little confused)
Thanks for the news about my original deal. I thought the monthly payment ($155.00) was good, but putting down 1900.00 seemed a bit much.
If you leased it through Wells Fargo, then they are the owner of the car. It will say on your initial lease paperwork. It is more likely that it is GM Financial though. They will not negotiate the buyout price with you. The only two instances of banks negotiating are US Bank and Ally with Gen 1 Volt as I noted above.
The bank does not care about selling it because it will go to an internal dealer auction where GM dealers can bid on it, and if it doesn’t sell there, it will go to a standard dealer auction.
This is true regarding bmws. I was turning one it after my 27 month lease was up and they offered to sell it to me for 10k less than the buyout. I passed, which in hindsight was a poor decision.
This is correct. GMF will NOT negotiate the car with you. The dealer has the option to buy at a discounted price when you ground it. The dealer would be the only one to know what this price is. If the dealer doesn’t buy it, it’s auctioned off to all GM dealers as indicated. The only chance you have is to negotiate with the dealer in regard to their “discounted” price upon grounding the car. I’m not sure what the discount is, but, from what I remember when I turned in my last lease, it wasn’t much.
(Sorry, didn’t mean to tag you on this @BoardWalkNJ)
Why do you think Wells Fargo owns your car, I’m not positive, but I do not think they really do leasing? However, if you are communicating with GM Financial, GM Financial is the bank that owns your car, and as others have said, they will not negotiate the buyout price.
My guess is a couple year old cruz isn’t worth 13,500, so I’d just turn in your car, and find something else to buy, or lease.
There’s some sort of reason Wells Fargo is involved. It was explained to me when I leased with them, and I can’t remember what the reasoning is. GMF owns the car though.
They partner together, so maybe wellsfargo offering competitive rate to GM customers in return they get more business…
About the lease buy out. The way that BMW is offering incentives for customers to buy out lease return is because they flooded the market with lease and marked up residual. So by the time people turn in their cars the real value is much lower than the quoted residual —- cars cant sell, dealers dont want to buy so BMW have to help.
Regarding to OP situation. Dealer and GM is holding uper hand because either way they will get your over milage fee, exessive wear if applicable and disposition fee if you dont buy from them. They wont budge. They still can turn around and sell your car to make profit, why discount to you? Have you try to sell the car private or at carmax? You might break even and dont have to worry about the fees.
Have you seen GM residuals? They are horrible. If you believe they are making money on the majority of them, especially a Cruze, I have a bridge to sell you.
Unless he put a ton down at inception, he’s not breaking even at Carmax.
