Results 1 to 34 of 34

Thread: Question about car leases

  1. #1
    Join Date
    Apr 1999
    Location
    West Boothbay Harbor, Maine
    Posts
    23,954

    Default Question about car leases

    I've never leased a vehicle but there's one for sale that the owners bought at the end of their lease. I'm wondering what they may have paid for it at that time. This lease payment website seems to indicate what the 'residual payment' at the end of the lease may have been. Is that the amount that the lessee would have paid to own the car at that point?

    https://www.calculator.net/auto-lease-calculator.html

  2. #2
    Join Date
    Sep 2004
    Location
    Michigan
    Posts
    12,622

    Default Re: Question about car leases

    It depends if they bought it from a dealer or the former lease holder directly.
    Pet photography, the degree you get when you fail aromatherapy - Duck D.

  3. #3
    Join Date
    Apr 1999
    Location
    West Boothbay Harbor, Maine
    Posts
    23,954

    Default Re: Question about car leases

    Dealer.

  4. #4
    Join Date
    Nov 2004
    Location
    Sharon, MA
    Posts
    22,532

    Default Re: Question about car leases

    My wife drives lease cars, and we've done it a number of times.

    The residual value in the lease is basically an estimate of the retail value of the car at the end of the lease, with the estimate made at the beginning of the lease... it's the price the lease holder would have to pay if they wanted to buy the car at the end of the lease. Dealers have so much experience in leasing, that their predictions are pretty accurate, I think. We don't buy the cars at the end of our leases, but from looking at the residual values, when compared to Kelly Blue Book prices, they are pretty close. .

    Finding an 'off lease' car might be hard, though... because dealers routinely send off-lease cars to auction, so it becomes hard to identify what cars are actually off-lease, versus just cars that have low mileage that are sold as ordinary cars.

    I've never done it, but buying a vehicle that has just gone 'off lease' might be a worthwhile deal. Lease holders don't necessarily baby the cars while they lease them, but they do try to avoid being clipped by 'excess damage' clauses, so usually, the exterior and interior condition of the car is quite good. We work pretty hard to keep my wife's lease car in good shape, that way.
    "Reason and facts are sacrificed to opinion and myth. Demonstrable falsehoods are circulated and recycled as fact. Narrow minded opinion refuses to be subjected to thought and analysis. Too many now subject events to a prefabricated set of interpretations, usually provided by a biased media source. The myth is more comfortable than the often difficult search for truth."







  5. #5
    Join Date
    Dec 2001
    Location
    Too far inland.
    Posts
    9,953

    Default Re: Question about car leases

    Quote Originally Posted by rbgarr View Post
    ... This lease payment website seems to indicate what the 'residual payment' at the end of the lease may have been....
    https://www.calculator.net/auto-lease-calculator.html
    Yes the residual is the buyout amount, but the number you get from that lease calculator may not have a direct relationship to how that particular lease was written. The residual is one of those factors (like mileage allowance, overmileage charge, cash up front) that can be flexed to make the numbers work to make a deal.
    No adversary is worse than bad advice.

  6. #6
    Join Date
    Feb 2002
    Location
    Southern California
    Posts
    32,388

    Default Re: Question about car leases

    How do I get out of my current least without loosing my shirt so I can buy a Tesla TODAY ?
    This post is temporary and my disappear at the discretion of the managment

  7. #7
    Join Date
    Jul 2017
    Location
    huntsville, al, usa
    Posts
    4,300

    Default Re: Question about car leases

    Quote Originally Posted by Joe (SoCal) View Post
    How do I get out of my current least without loosing my shirt so I can buy a Tesla TODAY ?

    ramp it into the bay?

  8. #8
    Join Date
    Dec 2001
    Location
    Too far inland.
    Posts
    9,953

    Default Re: Question about car leases

    Quote Originally Posted by Joe (SoCal) View Post
    How do I get out of my current least without loosing my shirt so I can buy a Tesla TODAY ?
    How does the buyout number on your lease (residual plus remaining payments) compare with the KBB private-sale number?
    No adversary is worse than bad advice.

  9. #9
    Join Date
    Nov 2004
    Location
    Sharon, MA
    Posts
    22,532

    Default Re: Question about car leases

    Quote Originally Posted by Joe (SoCal) View Post
    How do I get out of my current least without loosing my shirt so I can buy a Tesla TODAY ?
    Clear evidence that the hype is working
    "Reason and facts are sacrificed to opinion and myth. Demonstrable falsehoods are circulated and recycled as fact. Narrow minded opinion refuses to be subjected to thought and analysis. Too many now subject events to a prefabricated set of interpretations, usually provided by a biased media source. The myth is more comfortable than the often difficult search for truth."







  10. #10
    Join Date
    Jan 2004
    Location
    Nebraska
    Posts
    22,015

    Default Re: Question about car leases

    I’ve bought several off lease cars- and with low miles/warranty, unlikely to go sour.
    There's a lot of things they didn't tell me when I signed on with this outfit....

  11. #11
    Join Date
    Feb 2000
    Location
    San Francisco Bay
    Posts
    11,836

    Default Re: Question about car leases

    Quote Originally Posted by Joe (SoCal) View Post
    How do I get out of my current least without loosing my shirt so I can buy a Tesla TODAY ?
    I expect that would be pretty easy. Just bring your leased car to the Tesla dealer and see if they'll take it in trade. They buy out the lease and sell the car. You might take a bath, but I think it can be done that way. We lease cars all the time for business vehicles because it's a business deduction. I'm always getting offers from the leasing dealers to "trade up" to a new lease on a new model.

  12. #12
    Join Date
    Mar 2001
    Location
    Grosse Pointe, Michigan, USA
    Posts
    14,336

    Default Re: Question about car leases

    Quote Originally Posted by Joe (SoCal) View Post
    How do I get out of my current least without loosing my shirt so I can buy a Tesla TODAY ?
    If you are rich enough to buy a Tesla, you should have cash.

  13. #13
    Join Date
    Feb 2000
    Location
    San Francisco Bay
    Posts
    11,836

    Default Re: Question about car leases

    Quote Originally Posted by George Jung View Post
    I’ve bought several off lease cars- and with low miles/warranty, unlikely to go sour.
    We've bought a couple of vehicles we've leased and it was a good deal, actually. 1) They were dealer-maintained on warranty and all the kinks were worked out of them while we were leasing. 2) We knew what we were buying wasn't a turkey somebody else wanted to unload. 3)... and this is pretty much dependent upon the value of the car to begin with and how demand for it on the used market holds up... more so for expensive vehicles... it was a better price to buy off the lease that it would have been to try to buy one used with similar low mileage.

    The other way to go which works for the more expensive models, like BMW's and Mercedes', is to buy one of their "formerly leased" low-mileage vehicles with the manufacturer's used car warranty on it. Outfits like Mercedes take the best of their own lease returns (and they lease a lot of them due to the sticker prices,) the really cherry ones, and they go over them making everything "like new" and then sell them on their own lots with a new-car warranty. The beat up ones they send out to the auctions. That's probably the best way to get into a good luxury car without getting raped on the initial depreciation.

  14. #14
    Join Date
    Feb 2002
    Location
    Southern California
    Posts
    32,388

    Default Re: Question about car leases

    Quote Originally Posted by Dan McCosh View Post
    If you are rich enough to buy a Tesla, you should have cash.
    I actually am but I'm also smart enough to not waste it.

    BTW Cleek. I love your idea and I will let you know how it turns out, thank you .
    This post is temporary and my disappear at the discretion of the managment

  15. #15
    Join Date
    Sep 2005
    Location
    new zealand
    Posts
    3,720

    Default Re: Question about car leases

    Quote Originally Posted by Norman Bernstein View Post
    Clear evidence that the hype is working
    But his current ride is a Jeep, isn't it? He'd be swapping rugged outdoor urban guy hype and, ahem, legendary Jeep reliability, for techno cool hype, and infinitely better handling. I'm on Joe's side for this one.

    Pete
    Don't underestimate the power of stupid people in large numbers!

  16. #16
    Join Date
    Apr 2005
    Location
    Hills of Vermont, USA
    Posts
    29,488

    Default Re: Question about car leases

    Jeep reliability? Oh - you mean about this vintage?

    "If it ain't broke, you're not trying." - Red Green

  17. #17
    Join Date
    Oct 2003
    Location
    Hell
    Posts
    95,509

    Default Re: Question about car leases

    flat fenders forever!
    Simpler is better, except when complicated looks really cool.

  18. #18
    Join Date
    Apr 1999
    Location
    West Boothbay Harbor, Maine
    Posts
    23,954

    Default Re: Question about car leases

    So the vehicle I refer to in the OP is off-lease and owned by the lessee. They are asking full retail per KBB yet paid off the lease for maybe six to eight thousand less (as far as i can determine). Room to negotiate hard, yes? It's a clean, low mile, private sale, sitting in their driveway, barely advertised in a rural area. I may wait for a while (end of summer) and try for it for a family member.

  19. #19
    Join Date
    Dec 2001
    Location
    Too far inland.
    Posts
    9,953

    Default Re: Question about car leases

    The price they paid for it is irrelevant. That car, like everything else in this world, is worth what someone is willing to pay for it today.

    but yeah I think the fact that they've priced it at full KBB retail indicates that they're fishing and wishing. Wait a week or three and throw a lowball.
    No adversary is worse than bad advice.

  20. #20
    Join Date
    Mar 2007
    Location
    East Quogue,NY
    Posts
    17,774

    Default Re: Question about car leases

    The price they paid for it is irrelevant
    Exactly. All that matters is the price your willing to pay.

    Kevin
    There are two kinds of boaters: those who have run aground, and those who lie about it.

  21. #21
    Join Date
    Feb 2002
    Location
    Southern California
    Posts
    32,388

    Default Re: Question about car leases

    Quote Originally Posted by Bob Cleek View Post
    I expect that would be pretty easy. Just bring your leased car to the Tesla dealer and see if they'll take it in trade. They buy out the lease and sell the car. You might take a bath, but I think it can be done that way. We lease cars all the time for business vehicles because it's a business deduction. I'm always getting offers from the leasing dealers to "trade up" to a new lease on a new model.
    So I went to my local Tesla and unfortunately they don't do lease buy backs. The recomendation would be to take it to CarMax and have them buy out the lease and then just buy a new Tesla.

    Thats what I'm gonna do as soon as I get a chance.
    Getting excited
    This post is temporary and my disappear at the discretion of the managment

  22. #22
    Join Date
    Apr 1999
    Location
    West Boothbay Harbor, Maine
    Posts
    23,954

    Default Re: Question about car leases

    Been having a pretty strange back and forth with Carmax. They advertise a very low mileage 10 year old car that the KBB and NAD show as $18K. Carmax says it's worth $25K because it's "an outlier due to the very low mileage not taken into account by the reference books". Not sure I follow that logic, if it is any at all.

  23. #23
    Join Date
    Dec 2001
    Location
    Too far inland.
    Posts
    9,953

    Default Re: Question about car leases

    The number seems looneytunes but the logic is solid. That's kinda been carmax's model, aiming at the higher-end of the used market, they probably have more than a few data points to support their logic.
    No adversary is worse than bad advice.

  24. #24
    Join Date
    Apr 2005
    Location
    Hills of Vermont, USA
    Posts
    29,488

    Default Re: Question about car leases

    Quote Originally Posted by Figment View Post
    The number seems looneytunes but the logic is solid. That's kinda been carmax's model, aiming at the higher-end of the used market, they probably have more than a few data points to support their logic.
    True - but KBB & NADA take mileage into account.

    And - mileage isn't everything. I'll take a 70K mostly highway car over a 35K mostly city driving car every day.
    "If it ain't broke, you're not trying." - Red Green

  25. #25
    Join Date
    Jul 2017
    Location
    huntsville, al, usa
    Posts
    4,300

    Default Re: Question about car leases

    i've always thought carmax was charging more than they should.

  26. #26
    Join Date
    Mar 2007
    Location
    East Quogue,NY
    Posts
    17,774

    Default

    Quote Originally Posted by rbgarr View Post
    Been having a pretty strange back and forth with Carmax. They advertise a very low mileage 10 year old car that the KBB and NAD show as $18K. Carmax says it's worth $25K because it's "an outlier due to the very low mileage not taken into account by the reference books". Not sure I follow that logic, if it is any at all.


    I wouldn't buy into that. The car has still seen x winters. All the hoses, belts and other parts have biodegraded for x years. When you go to sell or trade it, few ( if anybody) will offer or accept 30-40 percent more than book for low miles, unless its some kind of special car. Ask your insurer what he'd cover it for all in.

    My two cents

    Kevin


    Sent from my iPhone using Tapatalk Pro
    There are two kinds of boaters: those who have run aground, and those who lie about it.

  27. #27
    Join Date
    Feb 2002
    Location
    Southern California
    Posts
    32,388

    Default Re: Question about car leases

    Sitting in CarMax at the moment waiting on the appraisal of my 2018 Jeep Compass limited in mint condition with just under 20K
    This post is temporary and my disappear at the discretion of the managment

  28. #28
    Join Date
    Feb 2002
    Location
    Southern California
    Posts
    32,388

    Default Re: Question about car leases

    Well I guess I'm not trading in my lease and buying a Tesla today

    fullsizeoutput_2ddb.jpg

    fullsizeoutput_2ddd.jpg
    This post is temporary and my disappear at the discretion of the managment

  29. #29
    Join Date
    Apr 2005
    Location
    Hills of Vermont, USA
    Posts
    29,488

    Default Re: Question about car leases

    Quote Originally Posted by Joe (SoCal) View Post
    Well I guess I'm not trading in my lease and buying a Tesla today
    I'm shocked!

    OK - in reality, not even a little bit surprised.

    Has the door been repainted?
    "If it ain't broke, you're not trying." - Red Green

  30. #30
    Join Date
    Feb 2002
    Location
    Southern California
    Posts
    32,388

    Default Re: Question about car leases

    Quote Originally Posted by Garret View Post
    I'm shocked!

    OK - in reality, not even a little bit surprised.

    Has the door been repainted?
    NO !!!
    Nothing been done to the car it has less than 20K
    The only thing it probably needs is it's next oil change.
    This post is temporary and my disappear at the discretion of the managment

  31. #31
    Join Date
    Feb 2002
    Location
    Southern California
    Posts
    32,388

    Default Re: Question about car leases

    This post is temporary and my disappear at the discretion of the managment

  32. #32
    Join Date
    Mar 2007
    Location
    East Quogue,NY
    Posts
    17,774

    Default

    Thats the trade in range, which are wholesale numbers. The car probably retails fir 15-20 percent more... but you have to sell it, which can be a PIA.

    Kevin


    Sent from my iPhone using Tapatalk Pro
    There are two kinds of boaters: those who have run aground, and those who lie about it.

  33. #33
    Join Date
    Apr 2005
    Location
    Hills of Vermont, USA
    Posts
    29,488

    Default Re: Question about car leases

    Quote Originally Posted by Joe (SoCal) View Post
    NO !!!
    Nothing been done to the car it has less than 20K
    The only thing it probably needs is it's next oil change.
    Didja notice their report said it had been?

    Trade-in is all they'll give you. The difference between trade-in & retail can hurt.
    "If it ain't broke, you're not trying." - Red Green

  34. #34
    Join Date
    Feb 2002
    Location
    Southern California
    Posts
    32,388

    Default Re: Question about car leases

    Quote Originally Posted by Garret View Post
    Didja notice their report said it had been?

    Trade-in is all they'll give you. The difference between trade-in & retail can hurt.
    Yea I read the report and asked the tech, he said it could have been done at the factory but it made no difference for the trade in as the KBB report indicates.

    Kinda bummed so I guess we wait to turn in the lease and then buy the Tesla
    This post is temporary and my disappear at the discretion of the managment

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •