My lease is up on March 27th. I cannot afford to lease a new one. The last year has completely wrecked my credit score (580)… so just about can’t get a car loan from anywhere else… it seems my best option is to do a lease-end buy.
Now, my question is - are end of lease purchases negotiable at all?? If so, which costs are negotiable?? I have never bought a car from a dealer in my life, so nothing about haggling the price.
They ran the numbers and came up with: 72 months
And 7.49% interest rate.
I have to make a decision by the end of this month. Are any of these costs on the list negotiable?? If so - how do I go about asking to negotiate??
Thanks for any info!
(Numbers below are rounded to nearest 100 for simplicity)
-sale price $24,000
-service agreement $4000
-gap insurance $1000
-documentary fee $700
-state and local taxes $1900
-Total license and fees. $700
That seems high for GAP insurance, here on a new car for 3 years through TFS it is $6 a month or $200 give or take.
Where did you get the Sales price? Is that the actual price in your lease contract, known as the residual or is the dealer giving you the price? Also, any lease termination fees should be in your leasing contract, go there and read it.
If you are buying out the car that currently has your plates on it, why are you paying $700 in license fees in addition to taxes for a car that already has plates on it? Since you did not mention a state, no idea what the rules are but you can check with DMV as to what dealers are allowed to charge.
Depending on the lender, many do not charge bank or documentary fees anyway (or so I was told when I commented on this about financing a new car a month ago) although some banks do I am told. You may have a stronger case if the financing is through the same bank as before.
Did you contact the bank or leasing company directly? the 800 number on your payment coupon or lease contract, ask them what your options and costs are if you want to buy the car
What car is it, is it a very unreliable brand? Does your car insurance company provide mechanical breakdown coverage?
Thanks for all the responses. I am in AZ, the car is a 2019 Mercedes CLA 250, and lender is Mercedes Benz Financial Services. I tried getting financing from other sources, but not approved. The price is what is in the contract, so I guess that is set. As far as the warranty, it extends it from 4 years to 7 years/75.000 miles. I am going to decline the GAP insurance - but debating on the extended warranty.
Any other advice based on these extra details much appreciated! I have to make a decision this week…