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Discussion Starter · #1 ·
My wife wants to keep her '06 Armada when our 2 year lease runs out. The truck only has 10,000 miles on it, and its a completely loaded LE.

This is the first thing we have ever leased, so is there any tips or tricks anyone can suggest when buying at end of lease?

Thanks.
 

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We did that on my wifes truck. Is it always the best deal? Depends on the residual value the lease was based on, the buyout price, and the amount of money you put down at the time of lease, if any.

Look at the buyout price as if you were buying a used vehicle. Compare it to other used vehicles. Also look at new vehicles with the high rebates and crunch the numbers for all scenarios.
 

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My wife has an 05 Jeep Liberty and we are buying it out at the end of the lease. It will only have 20,000 miles on it at the end of 3 years. It is only going to be about 13000 to buy it out it is way better for us because it is valued much higher.

Look at the resale, mileage, etc. At the end of two years it might not look as appealing. If you have the cash it would probably end up being cheaper than financing a new one. If you like it why not!
 

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You need to look at both options, either buying out at the end of the lease or just purchasing a new vehicle that is similar. Depending on what your buyout is, you may be better off just letting it go and purchasing a new Armarda. If you are going to consider purchasing at lease end, keep in mind that you can negotiate the buyout just as if you were purchasing it new off the lot.

There is one other option where the vehicle has such low mileage, check and see what a dealer will give you for a trade in...don't tell them you are leasing it, just tell them you want to see what they will give you. If it exceeds your buyout of the lease, use that towards a brand new vehicle. Chances are you'll at least make out the same payment wise as if you were just going to buy the lease out...and you get a brand new one.
 

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Discussion Starter · #5 ·
Thanks for the replies guys.

Here's some numbers after digging up my paperwork.

Residual Value - $29319.00

Gross Capitalized Cost - $46163.16

Kelly Blue Book Values;

Trade in value - $28,460.00
Private party value - $31,330.00

Does this mean there is a way to "Buy Out" for less then the Residual Value shows??

As of now my wife would like to keep it, as there really isn't anything else out that she likes better then the Armada.

Any additional feedback or advice is welcome!

Thanks again.
 

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Not sure how that all works, but when i bought my truck it was a leased truck. Just called Nissan and got the pay off.
 

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Yes, when you bring it to the dealer at lease end, all they do is turn around and clean it and try and resell it. You can negotiate to essentially "buy it back" for less than the residual. It's going to depend on the demand for the car and how quickly the dealer thinks they can turn it around.
 

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You can negotiate a lower-than-residual price for the truck. The leasing companies don't want the cars back. Just like you, the dealer has has to buy the car from the leasing company if they want it. If they don't buy it, the leasing company has to make arrangements to pick it up and sell it at auction. It's a hassle for them. I bought my '99 Maxima after the lease for less than residual, and I'm in the process of doing the same for my '04 Grand Cherokee.

I look at leasing as a 3 year test drive. If I like it, I buy it. if not, i give it back. If you buy it "right" up front, and negotiate a decent buyout price, it's not a bad deal. By doing this, I'm buying a used car I know inside & out.
 

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Discussion Starter · #9 ·
450xDaD said:
You can negotiate a lower-than-residual price for the truck. The leasing companies don't want the cars back. Just like you, the dealer has has to buy the car from the leasing company if they want it. If they don't buy it, the leasing company has to make arrangements to pick it up and sell it at auction. It's a hassle for them. I bought my '99 Maxima after the lease for less than residual, and I'm in the process of doing the same for my '04 Grand Cherokee.

I look at leasing as a 3 year test drive. If I like it, I buy it. if not, i give it back. If you buy it "right" up front, and negotiate a decent buyout price, it's not a bad deal. By doing this, I'm buying a used car I know inside & out.
The dealership is already starting to leave me messages, saying its close to my lease end (Feb. 20th '08) date.

Give me an example on how to "negotiate" a lower then residual price.. can I just say Ill buy it at the end for 25k? Will they try and say I signed my paperwork knowing it would be an option to buy for $29319.00, and they have to hold me to it?

Thanks in advance!
 

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Oh yes...the phone calls. They started calling my wife 6 months out from her maturity wanting to "inspect" her Pacifica. The phones will start burning up from here on out for you.

You'll have the most leverage as you approach the maturity date of 2/20/08. I would start working on it after you make your last payment in January. Do your research by searching local ads, Kelly Blue Book, and don't forget Edmunds. If you can get your hands on a blackbook, or blackbook figures, (very accurate and timely values from regional auctions), even better.

Call the leasing company and be up front, and honest with them. Tell them you like the truck and you're entertaining the idea of buying it. "If I were to buy it, what would the purchase price be?". They will, more than likely, quote you the stated residual or slightly below. Make a realistic counter offer, keeping it in alignment with the values and facts from your research. This is exactly what I did whe I bought out my '99 Maxima. I ended up around $1,000 less than residual.

And remember, you don't have to decide the same day. Take your time. Sleep on it, crunch numbers, shop and make sure it's what you really want to do. Once you've convinced yourself it's he best (or not) deal for you, and your financial situation, do it and don't look back. :cheers:
 

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Discussion Starter · #12 ·
Well time is ticking down, and Ive gotten calls from Nissan direct, as well as the dealer, but when I spoke to Nissan, they made it clear there is no "talking room" on the buy out price at lease end. WTF? If the truck's value is LESS then the buy out, do I have a better chance on naming a price??
 

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The "no talking room" on the buyout price is BS, there is always talking room. Last time I was at my Jeep dealership (my wife will be turning her Liberty off lease...but we will be buying it out) one of the salesmen even said offer to buy it out for a thousand or two less, you can negotiate the pay off just like buying a new car!
 
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