Anyone ever buy a leased car when the lease expired?

  • rnch

    Posts: 11524

    Aug 15, 2012 12:12 PM GMT
    I'm 19 months into a 36 month lease on my Daily Driver; like it more now than when I brought it home.

    The previously agreed on purchase price is looking like a darn good buy to me; seriously considering buying it when the lease is over?

    Who has "been there......done that" icon_question.gif
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    Aug 15, 2012 12:33 PM GMT
    Its a good idea if you like it...

    I've done that with a fleet vehicle - you may also want to consider asking if you can purchase early - its unlikely you'll get a better interest rate unless the economy slides further down the toilet..
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    Aug 15, 2012 12:49 PM GMT
    I did this. My current car is a Honda Civic. I leased it for 3 years, and liked it so much I purchased it.

    I know this is probably the most expensive way to buy a car, but I really liked the car, and I knew that it had been taken care of. I would probably have purchased a used car anyway--why not get one that I know I liked, and that I knew how it would perform?

    My only advice is to negotiate on the purchase price. It's easier for the dealer to sell it to you, rather than have to refurbish/detail it, and then market it to someone else. In your position, you have some leverage to get the price down.
  • HndsmKansan

    Posts: 16311

    Aug 15, 2012 12:54 PM GMT
    I haven't.. but I heard that you really need to consider that possibility when you consider signing a lease and accepting the points the lease provides.
    And you are wise to ask these questions.... probably knowing the "hoops" in advance is a prudent idea. I'd like to know whats up before I have to jump through them!
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    Aug 15, 2012 1:20 PM GMT
    rnch saidWho has "been there......done that" icon_question.gif

    Not myself, but 3 people close to me, including my partner and his sister (she calls me "brother" -- awwwww).

    Before I met him my partner way overpaid on the purchase, and he'll never get another lease. His sister paid a little higher than I would have, but she likes the car (still has it), so I just shrug.

    A fellow Army officer with whom I worked also paid too much at the end of the lease, but she had gotten herself into a penalty issue with having put excess miles on the car.

    All I can say is do the math. What are your total lease payments, plus the pay-off amount, versus the original value of the car? Also factor how much interest you would have paid, had you originally bought the car on a loan.

    How's your mileage doing? Are you within your annual allowance, so you can walk away from the lease clean? If you're gonna hafta pay a hefty penalty at the end of the lease then purchase can look more attractive.
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    Aug 15, 2012 1:28 PM GMT
    9 times out of 10 its a bad idea. You can usually find the same car cheaper. But it all depends.It also means you have financed a car far longer than you should and you end up paying a lot more in the long run.
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    Aug 15, 2012 1:54 PM GMT
    My office leased a Jag for three years and then my partner wound up buying it at the end of the lease...but he shopped the hell out of the car and was able to negotiate a much better price than what was specified in the lease itself.
  • 1man

    Posts: 140

    Aug 15, 2012 1:58 PM GMT
    You can buy it now, there's no need to wait until the lease end. You'll be paying almost double the value if you wait until the lease ends.
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    Aug 15, 2012 1:59 PM GMT
    rigsby saidMy office leased a Jag for three years and then my partner wound up buying it at the end of the lease...but he shopped the hell out of the car and was able to negotiate a much better price than what was specified in the lease itself.

    He bought a Jag? yikes.
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    Aug 15, 2012 2:04 PM GMT
    Having bought all our vehicles for way less then blue book at actions, I can't imagine over paying for a car.
    However, I wonder what led you to lease in the first place, considering one on a Volt.
    I thought the biggest reason to lease was to always drive a new vehicle, no worry of repair or maintenance. Won't buying it negate the reasons for leasing in the first place?
  • rnch

    Posts: 11524

    Aug 15, 2012 2:27 PM GMT
    dustin_K_tx said....However, I wonder what led you to lease in the first place.....



    At the time (December 2010), Toyota was reeling downhill from the negative pubilicity they had received. You cudda shot a cannon thru the local Toyota dealership and nobody wudda had known it!

    Their $199 down/$199 a month for a new 2011 Camry LE was considered one of, if not the, best leasing deals avaialable at the time (or so said the internet research that I did). A brand new car for only two hundred outta-pocket! And no charge maintainence for the term of the 36 month lease.

    I was "cash challenged" after the bywater money pit's extended renovation, injured at work, living off a reduced disability income, with no funds for a big down payment to bring down a new car purchase to the monthly payment level that I needed to have.


    A + B + C........





  • rnch

    Posts: 11524

    Aug 15, 2012 2:36 PM GMT
    [quote][cite]Dallasfan824 said.....He bought a Jag? yikes.[/quote]





    icon_lol.gif
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    Aug 15, 2012 2:41 PM GMT
    I just did it. There was no new roomy four door, rear wheel drive, big V8 new cars available from GM so I bought out the Pontiac G8 GT. CTS-V didn't have nearly enough rear seat room so I'll keep this until the Chevy SS comes out next year.

    I've also done this with Corvettes in the past because the real world resale value was way higher than the lease residual.
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    Aug 15, 2012 2:50 PM GMT
    Qboy3 saidI did this. My current car is a Honda Civic. I leased it for 3 years, and liked it so much I purchased it.

    I know this is probably the most expensive way to buy a car, but I really liked the car, and I knew that it had been taken care of. I would probably have purchased a used car anyway--why not get one that I know I liked, and that I knew how it would perform?

    My only advice is to negotiate on the purchase price. It's easier for the dealer to sell it to you, rather than have to refurbish/detail it, and then market it to someone else. In your position, you have some leverage to get the price down.


    +1
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    Aug 15, 2012 2:54 PM GMT
    Dallasfan824 said
    He bought a Jag? yikes.


    Why yikes?
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    Aug 15, 2012 3:02 PM GMT
    Ex_Mil8 said
    Dallasfan824 said
    He bought a Jag? yikes.


    Why yikes?


    they are notoriously poorly made. It didnt matter if they were owned by Ford or whomever. They have always been very unreliable and have had a recent history of not retaining any residual value. A 2005 Honda Civic sedan is worth over $1000 more than a 2005 Jag S-type. Jags are like Range Rovers and Audi S types. Great to lease. Never own one. Unless you have dddeeeeeeppppp pockets.
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    Aug 15, 2012 3:14 PM GMT
    Dallasfan824 said
    Ex_Mil8 said
    Dallasfan824 said
    He bought a Jag? yikes.


    Why yikes?


    they are notoriously poorly made. It didnt matter if they were owned by Ford or whomever. They have always been very unreliable and have had a recent history of not retaining any residual value. A 2005 Honda Civic sedan is worth over $1000 more than a 2005 Jag S-type. Jags are like Range Rovers and Audi S types. Great to lease. Never own one. Unless you have dddeeeeeeppppp pockets.


    I think you will find that is all in the past now.

    Buick, Jaguar dethrone Lexus in J.D. Power reliability study
    http://www.usatoday.com/money/autos/2009-03-19-reliability_N.htm

    Jaguar tops JD Power satisfaction survey
    http://www.autocar.co.uk/car-news/motoring/jaguar-tops-jd-power-satisfaction-survey
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    Aug 15, 2012 3:32 PM GMT
    Ex_Mil8 said
    Dallasfan824 said
    Ex_Mil8 said
    Dallasfan824 said
    He bought a Jag? yikes.


    Why yikes?


    they are notoriously poorly made. It didnt matter if they were owned by Ford or whomever. They have always been very unreliable and have had a recent history of not retaining any residual value. A 2005 Honda Civic sedan is worth over $1000 more than a 2005 Jag S-type. Jags are like Range Rovers and Audi S types. Great to lease. Never own one. Unless you have dddeeeeeeppppp pockets.


    I think you will find that is all in the past now.

    Buick, Jaguar dethrone Lexus in J.D. Power reliability study
    http://www.usatoday.com/money/autos/2009-03-19-reliability_N.htm

    Jaguar tops JD Power satisfaction survey
    http://www.autocar.co.uk/car-news/motoring/jaguar-tops-jd-power-satisfaction-survey


    Im not sold just yet. I still wouldnt buy one until I see what they are like in 5 years.

    Notably, Jaguar recorded the largest improvement in the study reducing problems by 39 PP100 and jumping from the 20th rank position in 2011 to second place this year. Cadillac (80 PP100) and Honda (83 PP100) complete the top five.
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    Aug 15, 2012 3:36 PM GMT
    Dallasfan824 said
    Ex_Mil8 said
    Dallasfan824 said
    He bought a Jag? yikes.


    Why yikes?


    they are notoriously poorly made. It didnt matter if they were owned by Ford or whomever. They have always been very unreliable and have had a recent history of not retaining any residual value. A 2005 Honda Civic sedan is worth over $1000 more than a 2005 Jag S-type. Jags are like Range Rovers and Audi S types. Great to lease. Never own one. Unless you have dddeeeeeeppppp pockets.


    After the warranty is over, get another. It’s actually much cheaper over the long run. In my case, the pontiac has been very reliable, has huge aftermarket support due to the percent of owners who race theirs and there was nothing from GM to replace it with it. One big repair can eat up a year's worth of lease payments.
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    Aug 15, 2012 3:37 PM GMT
    Dallasfan824 said

    Im not sold just yet. I still wouldnt buy one until I see what they are like in 5 years.

    Notably, Jaguar recorded the largest improvement in the study reducing problems by 39 PP100 and jumping from the 20th rank position in 2011 to second place this year. Cadillac (80 PP100) and Honda (83 PP100) complete the top five.


    I would not buy one, because they are luxury cars, with all the costs that entails. I certainly would not have any reservations about reliability though.
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    Aug 15, 2012 3:54 PM GMT
    I had a really odd case. I was leasing a '98 volvo S70. When the time came, the new ones had electronic throttle controls. Oh, hell no. 98 was the last year of the throttle cable. Best decision ever.


    Leasing isn't the cheapest way to drive. But, with people keeping their cars much longer, used cars aren't the guaranteed bargain anymore. There might be a reason they had to get rid of it.
  • masculumpedes

    Posts: 5549

    Aug 15, 2012 3:58 PM GMT
    I've never thought they were worth it. icon_wink.gif
  • BlackBeltGuy

    Posts: 2609

    Aug 15, 2012 4:04 PM GMT
    Dallasfan824 said
    Ex_Mil8 said
    Dallasfan824 said
    He bought a Jag? yikes.


    Why yikes?


    they are notoriously poorly made. It didnt matter if they were owned by Ford or whomever. They have always been very unreliable and have had a recent history of not retaining any residual value. A 2005 Honda Civic sedan is worth over $1000 more than a 2005 Jag S-type. Jags are like Range Rovers and Audi S types. Great to lease. Never own one. Unless you have dddeeeeeeppppp pockets.


    agree Dallas, the audi was electrical pieces of garbage!
    the new jag however has made an amazing comeback.


    I'd stick with acura for accurate. never a let down ...ever
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    Aug 15, 2012 4:29 PM GMT
    Sort of a car fan here, and I've had some good ones. I can offer some observations - learned over time, personal experience:

    * Leased cars are not usually a bargain at the end of a lease.

    * Jaguars after 1996 are not the lemons they often were in earlier years.

    * In my profile is a photo of my '97 Jag - NO ISSUES all these years - just regular service / oil changes are your best friend - - - kindest thing you can do for your cars.

    * Jags don't hold their value as well as Mercedes. For instance, my '97 was originally priced at more than $65,000. I bought it used at three years old - with 11,000 miles - for about $32,000. I saved a bundle, and got a great, trouble free car. It has a six, and is decent on gas - with plenty of power.

    * A good friend loves Acuras & has had a bunch of them. His word of warning: "I never keep one past 80,000 miles, because they'll fuck ya."

    * My suggestion: Buy a good, 2 or 3 year old car with low mileage, one owner, no dents or dings, a good service record, from a no-rust state - - and keep it for a long time. This is what has made good sense financially for me. I have great cars, but don't spend a lot of money for (or on) them.

    * To have more confidence in a used car I'm serious about, I get permission from the owner to have the car diagnostically tested by a reputable dealer (at my cost - well worth the $). Any issues can be corrected, or if they're huge, you can stop negotiations on the car. You're buying peace of mind.
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    Aug 15, 2012 4:46 PM GMT
    I did twice. Both cars are in my top 3 of all time cars I've owned.

    Not sure if I'm going to do the same with my current car.