Buying Leased Car--Tips?

HImom · 07-31-2009, 02:43 PM

Long story short, hubby wants to buy friend's wife's 2006 leased car that has only 9000 miles on it. The lease expires in a week or two. Any tips on how to do this & get the best possible deal? Do we work with the dealer? The friend? We won't need financing but if the price is the same to use the credit card, we would use it for the perks.

She's going to lease another new car and we're going to use this newer car to replace a 1992 car we have been driving & send that older car to our college kids in CA.

NewHope33 · 07-31-2009, 05:11 PM

HImom - I don't see any issues with buying the 2006. You'll probably want to acquire the car directly from the friend's wife. If she returns the car the dealer will probably want some mark up ... possibly disguised as "refurbishment costs." And many manufacturers require that lease returns be shipped back, as they are the legal owners ... you might not see the car again if this occurs.

There may be a problem with registering that 1992 in CA ... as CA has very stringent emissions requirements. If I recall, there was a thread on this subject three or four months ago.

toblin · 07-31-2009, 05:30 PM

Quote:

I don't see any issues with buying the 2006. You'll probably want to acquire the car directly from the friend's wife.

Your friend's wife does not own the car, the leasing company does. Ask them to contact their leasing company and ask if they will sell it to you at the "buy out" price stated in the lease agreement. If she buys the car and sells it to you she will have to pay the sales tax and registration costs and then you will too. Wasteful.

tom1944 · 07-31-2009, 05:41 PM

Be careful the "buy out" may be higher than the cars actual value. Copy the vin # and track the car on AutoTrader. You may get a better price went it hits the retail market.

rrah · 07-31-2009, 05:55 PM

When we've leased cars in the past, it seems there was a notation in the contract of how much it would cost to purchase at the end of the lease. Ask your friend if that might be in her contract. If the price is reasonable based upon research perhaps your friend can "buy it" and immediately sell it to you since you aren't financing it.

hmom5 · 07-31-2009, 07:08 PM

Quote:

If she returns the car the dealer will probably want some mark up

Not a chance! The buyout price is fixed and was fixed when she leased the car if it's a typical deal. That happened before the prices of cars tanked with everything else.

Dealers are stuck with returned cars they can't get anything for. No one is buying them at anywhere near the buyout price. Deal with the dealer having done your research on very current pricing and bring your best negotiator. They are giving away cars now.

NewHope33 · 07-31-2009, 07:52 PM

^^^ toblin is correct, the car belongs to the manufacturer ... NOT the dealer. (My post was complicated enough as it was.) In our area, manufacturers' reclaim lease returns, refurbish them and then sell them at auction. YMMV.

NJres · 07-31-2009, 09:42 PM

what tom said:

Quote:

Be careful the "buy out" may be higher than the cars actual value. Copy the vin # and track the car on AutoTrader. You may get a better price went it hits the retail market.

First I would find out what the residual value is in their lease. That is the price the owner (leasing company) will sell it for. Then I would research the car (using Edmunds, ebay, and maybe even looking at local ads and dealers) and find out what the market value is. Leasing companies can be a real pain about selling it for less than the residual value, even if the market price is less. For some reason they would rather send the car to an auction than give a private party a good deal.

HImom · 08-01-2009, 01:12 AM

Yea, I talked to the dealer & they want to add LOTS of fees--a $400 disposal fee, documentation fee, purchase option fee & a whole host of addiontal fees. YUCK! If it gets too high, we may just walk. They suggested we talk to the lender & see what they want and will do/offer. The dealer claimed there is no possibility of waiving ANYTHING.