What is the best way to handle....I have 3 weeks left on the lease?
2006-12-19 11:07:45 · 5 answers · asked by scottw2100 2 in Cars & Transportation ➔ Buying & Selling
You need to contact the lender and work out the residual value buyout with them unless it is a Ford Red Carpet Lease. Don't go to the dealer because the dealer can make money on it. If they won't budge, turn it in and get something else. Usually the lender really dosen't want the vehicle back. Hope this helps, Good Luck
Bostonianinmo is not correct.Somelenders may stick to their guns but I have had several customers lower their residual value and the lender writes off the lost. I know this is true because I have seen it with my own eyes
2006-12-19 11:29:34 · answer #1 · answered by typhon1991 3 · 0⤊ 1⤋
The residual value is set at the beginning of the lease term. Neither of you get to change it. They will make adjustments for excess wear and tear and mileage, but the residual value CANNOT be changed.
Your lease payments were based on the residual value that was set at the beginning of the lease. This is known as a closed-end lease. Open-end leases, where the residual value is set at lease expiration, are illegal in the US.
If they re-calculated the residual value, you'd have to cut them a check for the difference where the book is less than the contract residual value! (If the residual value of the car had been set at $9k when you signed the lease, the payments would have been higher.)
If you want to buy the car, you'll have to pay the residual value. When you do that, they waive any charges for excess wear and tear and excess mileage. If you offered less than residual, they'd hit you with the charges; the end result would be the same.
The ONLY time you can win on this game is if the residual value was set way too high at the beginning of the lease AND the car is in immaculate condition AND under the max miles. You MIGHT be able to negotiate a lower buy-out price in that situation.
2006-12-19 12:55:01 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 1⤋
Best is to negotiate this before you lease and get it in writting. That's what I did and it worked. It was option to buy at the end of lease for 10k. I'm glad I did because they tried to squeeze me for 12 and they couldn't do it. They had to honor the contract.
2006-12-19 11:18:51 · answer #3 · answered by normy in garden city 6 · 0⤊ 0⤋
Leasing grants flexibility in terms of the concepts available. in case you opt to alter your automobile each and every few years or if your existence-style demands a clean automobile each and every few years, then leasing is an beautiful option. So hire is greater useful whilst in comparison with a private loan.
2016-10-15 06:41:42 · answer #4 · answered by ? 4 · 0⤊ 0⤋
Play hardball. The very last thing they want is that car back. Stick to 9...trust me on this!
2006-12-19 11:44:27 · answer #5 · answered by Mrs. Strain 5 · 0⤊ 1⤋