End of Lease - buyout problems

Discussion in 'Community Discussion' started by Sdashiki, Mar 17, 2006.

  1. Sdashiki macrumors 68040

    Sdashiki

    Joined:
    Aug 11, 2005
    Location:
    Behind the lens
    #1
    Well let me set this up right quick:

    had a 1994 Mazda 626, P.O.S. I found out towards the end of the financing, with $3000 left on the car to pay, the tranny went. $1200 later the car runs but I vow not to keep it any longer or buy another used car.

    so I eventually end up at the toyota dealer here in town, of which there is only one, making competition nonexistent and the dealers NOT wanting to give you a deal because you cant get a toyota from a dealer within 50 miles.

    anyway they only want to give me $2500 for my car, I owe $3000, but in the end they basically tell me Im screwed. I would have taken it to a larger city with 5+ Toyota dealers and had them each bidding for my money and trade-in, but on the way down south to the cities, the tranny started to go again, so I turned around and went home.

    only way I could afford a new car, was to lease with the option to buy at the end.

    So i leased my Toyota Matrix for 4 years, ~$250/mo payments.

    I had to get a dealer trade, meaning the dealer trades one car for another from some dealer far away, because of course they dont carry Manual transmissions.

    So i say "look, I drive around and everywhere I turn I see license plate holders, and stickers and laminates on cars advertising the dealership where they came from. Now those people might be alright with free advertising for you, but I am not. DO NOT PUT ANY DEALER STICKERS ON MY CAR!

    When the car arrives a week later, from Michigan where there is no GatorLand Toyota, and once I get all the papers signed and hop it, BAM on the back is a black sticker of the dealer.

    I walk back inside and say "Look, you said you wouldnt (and he did promise me) put the stickers on it, and you did. Take them off." He said he would. I waited for about 30 minutes or so, I forget, and I go out to look, stickers still there. So I scratched them off with my finger (it was freshly stuck on) and balled it up for the dealer to see.

    he apologized and said when I come back in 4yrs he will give me a deal on my car.

    So I figured I would be able to negotiate the end of lease cost.

    Apparently, according to the Lease Company who is NOT the dealer NOR Toyota, that if any written amount was in the "residual value" box on the contact, thats what you pay, no negotiating.

    So not that the amount is HUGE or anything, in fact its about $3k LESS than what the car is worth, a rarity in leasing, but I mean they did NOTHING I asked for and (laughing all the way to the bank I am sure) forced me to pay $500 for them to take my trade-in, I feel I am entitled to a little compensation.

    Namely, knock off $500 or so from the residual price I am going to pay.

    Or waive the acquisition fee ($350 extra to buy the car) which is basically their way of making sure that, since you are buying the car and not returning it (wear n tear costs, over mileage etc, which I have neither), you give them some sort of bonus cash as you take the car away.

    I hate car dealers.

    I am going into the same dealer I got it from soon, and ask to speak the Leasing Manager, I am good with getting people thinking that if they dont help me I will make it so no one goes there anymore.
     
  2. stonyc macrumors 65816

    stonyc

    Joined:
    Feb 15, 2005
    Location:
    Michigan
    #2
    Me too.

    If you can, all the more power to you... but as you said, there's not another Toyota dealer in 50+ miles. Somehow I don't think they'll feel as threatened as you might want them to be. Good luck, though.
     
  3. 3rdpath macrumors 68000

    3rdpath

    Joined:
    Jan 7, 2002
    Location:
    2nd star on the right and straight till morning
    #3
    i certainly understand your frustration...

    however, i assume you read the lease contract before you signed it. The residual amount must be plainly stated ( and it was, per your post) so really the sole person responsible for your position is you. the dealer doesn't owe you anything. and your deal with the trade in of your old car was by your choice also...despite what your post says, no one forced you to do it.

    i'm not trying to be harsh and i'm no fan of car dealers, but you made the deal, you signed it and now you have to live with it. I hope you can negotiate something with the dealer, but don't blame them for the deal you willingly took.
     
  4. jelloshotsrule macrumors G3

    jelloshotsrule

    Joined:
    Feb 7, 2002
    Location:
    serendipity
    #4
    don't mind him. the nurse didn't give him his meds on time and nap time was interrupted by his next door neighbor's melancholy cries for his "dear old nanna."

    i love grumpy old men
     
  5. notjustjay macrumors 603

    notjustjay

    Joined:
    Sep 19, 2003
    Location:
    Canada, eh?
    #5
    I would drive the 50 miles next time and deal with someone who knows there is competition.

    I am in fact looking at a 2004 RAV4, and am willing to drive from Ottawa to Toronto (350 miles?) to get it.
     
  6. iSaint macrumors 603

    iSaint

    Joined:
    May 26, 2004
    Location:
    South Mississippi y'all, near the water!
    #6
    I've never had a good deal with a car dealer. And from what I've read and seen, leasing is never a good deal, either. I don't trust big car dealerships.

    I will say I bought a used SUV for about $5,000 a couple years ago. No hassle price, no surprises. He was genuine all the way!
     
  7. 3rdpath macrumors 68000

    3rdpath

    Joined:
    Jan 7, 2002
    Location:
    2nd star on the right and straight till morning
    #7
    I signed a pretty bad lease years ago and from that point on decided to get as educated as i could about the whole car dealer situation. since then I've bought 3 cars using an online bid service ( after doing a lot of pricing research) and have gotten very good deals. ntm, i only had to be in the dealership for about 45 minutes to sign the papers...no dickering, no scams, no add-ons....just sign and drive.

    i highly advise using www.edmonds.com and consumer reports to start the process.
     
  8. D0ct0rteeth macrumors 65816

    D0ct0rteeth

    Joined:
    Mar 11, 2002
    Location:
    Franklin, TN
    #8
    Between financing, doc fees and just the fact that a new car loses 48% - 80% of its value in 5 years (edmunds.com). I dont know why anyone would buy a new car.

    The average car payment in North America is $378 over 55 months. If you were to invest this from age 25 to age 65 you’d have $4.4 million!

    Hope you like the car :)

    Save up. Pay cash for a used car. Dont play with snakes and wonder why you were bit :)
     
  9. Sdashiki thread starter macrumors 68040

    Sdashiki

    Joined:
    Aug 11, 2005
    Location:
    Behind the lens
    #9
    Mine was $250 over 48 months

    but i still owe like $8k now, like i said it was the tradein that did me in...

    in total until i finally own this car i will have paid over $3k i think in interest, but since i will drive this till it explodes, its well spent i think, just crappy.
     
  10. dornoforpyros macrumors 68040

    dornoforpyros

    Joined:
    Oct 19, 2004
    Location:
    Calgary, AB
    #10
    truthfully I've never owned a car of my own, but I just plain don't understand leases.
    I mean your making payments on the car anyways right? Why not pay towards ownership of the car?
     
  11. robbieduncan Moderator emeritus

    robbieduncan

    Joined:
    Jul 24, 2002
    Location:
    London
    #11
    If leasing is anything like Hire-Purchase agreements in the UK then it's a mugs game. You end up paying a fortune for the car and at the end need to find a reasonably large lump sum. You are far better off in many cases to get an unsecured loan from a bank. The payments tend to be about the same or less and at the end there is no lump sum to pay.
     
  12. notjustjay macrumors 603

    notjustjay

    Joined:
    Sep 19, 2003
    Location:
    Canada, eh?
    #12
    They're probably better suited for business vehicles, where the expenses are controlled, and you keep getting newer cars when the leases expire so you don't pay for maintenance or off-warranty work.

    They could be an option for someone who can't afford the higher monthly payment on financing a vehicle and/or has no intention of exercising the buyout option. Conversely, you can enjoy a much nicer car for the same money, though of course this is a short-sighted perspective.

    I'm taking over a vehicle lease from someone else, and I will pay relatively small monthly payments for the remaining 20 months of the lease, and then buy out the car for another $13,000. I will save up the $13K over the lease period, letting my money earn interest for me during that time.

    Were it not for this arrangement, I'd have used purchase financing. But I crunched the numbers on this one and I think I'm saving a few thousand this way...
     
  13. dornoforpyros macrumors 68040

    dornoforpyros

    Joined:
    Oct 19, 2004
    Location:
    Calgary, AB
    #13
    Eh I guess that makes sence, but for me when I do end up getting a car I'd rather buy something outright and drive it untill it dies or my needs change. Having the nicest car on the block doesn't really concern me. But I do understand it for businesses.
     
  14. D0ct0rteeth macrumors 65816

    D0ct0rteeth

    Joined:
    Mar 11, 2002
    Location:
    Franklin, TN
    #14
    Sorta, but Honestly if you just look at what happened. You spend 20k for a car worth only about 8500 today (KBB.com). Your 250/month payment has only been paying the depreciation for this car. (Plus your insurance was higher since their was a lean on the car etc..) If the money was well spent you would have made money on your investment or at least have lost less. You just flushed 11,500 (plus prob about 3-4k in insurance) down the toilet, thats anot a good deal, man!

    Im not trying to sound like a dick - its hard to get the emotion across when its just text on a screen, but my brother, don't make Toyota richer - keep your hard earned money! Always buy a used car and let someone else pay the upfront depeciation. Cars are a horrible waste of money.

    You can steal used cars with 30,000 miles for 6k (prob worth 9-10) all day long from church bulletins, garage sales, and old ladies. (I just saw 7 2003 Toyota Matrix on cars.com for example), obviously a used Matrix wasnt out then, but you get the idea. Payments are never a good way of life - and leases are especially a bad idea - the worst way to ever buy a car.

    Sorry you got fleeced man, Better luck from now on.
     

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