Curious how this works—I have a lease ending in January. Residual on the car is $130k. But it’s had damage (hood was replaced, nothing structural).
What do banks do with cars when they get them turned in? I’ve heard some say the banks will sell the car “wholesale” and you can intervene and buy it directly from them at the “wholesale” price instead of the residual end-of-term contract price.
What’s the real story?
They go to auction, inhouse/online or auction’s like Manheim etc. It maybe offered to the dealer where it’s grounded too. Dealer might offer it to you at their price, but doubtful.
Is there an opportunity to see if the bank will just sell it to me instead of the dealer, at whatever price they would offer the dealer?
You’ll have to ask
What make/model are we talking about, and who’s the lessor?
Highly unlikely lessors will offer lessees a buyout price lower than RV. Even during the peak of Covid, lessors only made lower-than-RV offers to very small numbers of lessees with specific makes/models. Don’t think we’ve heard of any successful unsolicited offers to buyout leases at less than RV.
You could try asking a dealer to facilitate such a transaction for you, for a fee. But also depends on make. Some lessors prohibit such actions and impose strict penalties on dealers that try to skirt their restrictions.
YMMV, can’t hurt to ask. GLWT
Where did you hear this? It may be better to go to that source and find out.
It isn’t something we’ve ever seen on here. The one exception I recall was BMW a couple of years ago had something show up in your BMW portal offering for lessess to buy it out under the rv, it was only a few models IIRC. Systems are designed to process 10,000 returns, not negotiate. What is the RV and how much lower are you hoping to get out of curiousity?
In my opinion it is unlikely you will find a lessor be willing to negotiate the rv. The fact it is above $100,000 vehicle perhaps gives a small possibility.
Talking about a 2020 Aston Martin Vantage. Lessor is A.M. Financial/Chase
Only reason I suspect lower-than-RV might be available is because of the damage history.
RV is $130,000. If it were true that banks sold the cars at “wholesale”, and this car with damage history were worth instead something like $90k, and I could get that kind of discount, I’d consider it.
Find someone with dealer license and pay them to buy the car for you from the auction.
Or call Chase and ask them if their buyout price is negotiable due to damage. Find out what the MMR is. If the MMR is close to your buyout your $40k accident DV does sound very aggressive and unrealistic.
MMR is around 85k-88k with 15k miles (we don’t know the miles or condition I don’t think or the carfax history).
The average car for sale in the country is at 104k with 17k miles retail but that includes a lot of examples with branded titles/theft recovery/moderate accidents etc.
To the OP: $130k is not even close to worth buying it out! You can find a nice clean example around $95-100k retail I think. I don’t know that brand well but they are not moving fast. They have about a 99 day market supply which might be ok for that car (I don’t know) but that is awful for normal cars.
Mileage is 12,800, perfect condition (according to my turn-in inspection report). Somehow, the damage that required replacing the hood does not show up in the Carfax (which I just pulled last week; damage occurred two years ago).
Sounds like leasing it (and turning it in) was a smart financial decision if its ~$35k underwater right now.
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