Considering the one-pay option for a car I’m about to lease this week. (Waiting on the numbers to determine whether it’s worthwhile.)
In the past, I’ve had dealers ask for cars back early offering to continue terms or provide deals on new models. Obviously there is also the concept of another car brand buying out your active lease if you go into one of their vehicles.
I’m wondering how those situations would work in a one-pay scenario – or how you would handle them? Or are those among the reasons that doing one-pay might not be all its cracked up to be?
You still have a buyout price for the lease. If it’s a brand that allows leases to be bought by third parties then you can still trade/sell your car and get some of your money back. Those scenarios were dealer “wants” your usually don’t end up well so make sure to come back here before you sign that second deal.
And don’t sign this first deal if you are unsure that you will want to keep it for the full term.
It’s only a 24-month lease, so I don’t anticipate handing it back early unless it was a month or two because a deal is available I need to jump on.
So if I was getting it bought out by a third party (or handing it back early to the dealer), basically it would be up to me to negotiate putting money back in my pocket as the equivalent of the months I pre-paid. For example, if my one-pay equated to $500 a month, I’d basically just need to say “you can take over my lease or take my lease back, but I need $1,000 for the two months remaining that I prepaid?”
What would you say is the % off value that makes a one-pay lease worthwhile vs. a waste?
Yes, you can tell them pay me $1,000 for the remaining two months and I can walk away. But usually they move the numbers from the new car you are leasing so make sure the second deal is good too.
I think the highest yield savings account is around 4.6% nowadays before taxes. So do the math yourself and see if it’s worth it.
It may be easier if you become a super supporter on here with access to rate finder! I say that because you can run the numbers with base mf and see how much the one-pay reduces the mf and see the dollar amount of savings.
Keep in mind that a dealer can mark up a one pay money factor just as easily as a monthly payment.
On most vehicles a 36 month lease will yield an effective lower per month cost due to rv, however every once in a while we see a vehicle where the 24 month makes sense. Since you didn’t mention what vehicle or lessor you are looking at we have no idea. Some lessors also do not offer a one-pay.
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It’s the Cadillac Lyriq Sport 2. While the lease rates were generally lower from most dealers on 36 months, the deal I’m working now is fantastic on a 24 month.
I’ll look into the money factor differentials once I get the one-pay terms (if they are even offered). I was going to inquire before heading over to close.
Smart way to look at it comparing keeping the money invested vs. discount on the lease. I’d guess it’s marginally different.
