Buying out lease..need advice!

[afx604]

Hey guys,
so when I originally bought out the 4runner it was $41,000 CAD before tax...after 3 years of a lease its down to $23,000 buyout value. My question is because it's my first time doing a buyout, is it possible to "haggle" on the buyout value even though i've already signed an initial contract for $41,000. Sorry if this seems like a stupid question...but im new to all of this

 

[snhrph]

The "buy-out" price (otherwise known as a"residual value") is pre-determined and you agreed to it when you signed the lease agreement.

On the other hand, the banks may be more "sensitive" today as the resale value of SUVs went down.

Bottom line - it does not hurt to ask. Research the value of your T4R on Edmunds, KBB, or a Canadian equivalent, and present it to the bank if the numbers work in your favor.

Good luck.

 

[Falls]

I will be in the same boat in Feb 09 . My situation is I dont have much of my own money into it and I love it. I will be abouy 25k under my lease miles and my buyout is $17K.

I will see where the NADA value is at the time and do from their.

My other thing is that if the trail team addition comes out by then I may consider dumping it off and buying one of them , even though I'm a v8 guy and it only comes in a v6 I can get buy that with the other goodies it has .

In limbo myself.

 

[TechWrench]

When I leased my '03, the buyout after 51 months was $17,800. at 48 months, they sent me a letter asking if I wanted to buyout the lease early. They offered to waive the last three lease payments, and lowered the buyout to $16,200, a savings to me of over $2900.00, and they financed the buyout at a good interest rate.

The bottom line is, they are taking a beating on the returned vehicles, and it is in their best interest to not have to take it back at the end of the lease. Give them a call and see if they will deal.

 

[afx604]

thx for the replies guys...Yeah it never hurts to ask..I was reading an article on edmunds about what I should do in my situation as the SUV market is not too forgiving for stealerships right now..I'm sure I can get some sort of discount..if not..well..i dont want to go there for now lol!

 

[Falls]

Even though the buy out is predetermined , if my value is under I'll dump it back on them , since the market is so soft I'll be in the drivers seat (to an extent) . The last thing I'm sure they want back on the lot is a full time 4x4 V8.

 

[BROOKLYN]

with toyota and LEXUS they dont neg lease buyout i've ask plenty of times im going through this right know and finding it hard to keep the runner and interest is a killer cause at the monment there is no incentives on preowned runners either from what i understand is that toyota takes back these trucks puts it through the auction and what ever loss they take is covered through a insurance company so they still get paid

please correct me if im miss informed so i can try another time to keep my truck

 

[Muskie Junkie]

If you want my advice, do not buy out that truck for that price. The SUV market has gone WAY down since you signed on that one (ie they are going to take a hit on the deal).

I just turned a Tundra in on lease (my residual was about $3k more than what they had 5 trucks just like mine for on the lot) and bought a '07 SR5 4runner for $21,750, and I just looked on that dealerships website and they had a brand new 4runner for just over $25k ($8k off MSRP).

 

[Falls]

If I dump mine off I'll buy another one , hopefully a new one if the incentives are right.

Buying a used one is not out of the question for me at all , BUT I also look at things like if I am close to buyout price I will but it out.

1. Because I know my truck and how its been maintained ect.... where normally on leases people don't take care of the stuff so buying a used one off lease I would not personally do. If its a private owner and I can speak with them I possibly might. Also as far as auction vehicles , I will not buy them either.

2. If I decide to buy something used for $2000.00 cheaper than my buyout which is $17k , who knows how it was maintained and getting something totally strange .

3. My buyout is $17K with 83,000 miles on it. At the time of turn in I will have maybe 58,000 miles on it so that may save me .

4. My the first 2/3 rd's of my lease was picked up by a company I consulted for for a year and a half , so the money I have into it is actually pretty low to where if the value of the truck is $15k it might be worth it to me to buy it out.

5. I usually hit the dealerships pretty regularly if I'm in the area and look at used 4R's to watch values , so far by my calculations I should be fine as of right now. I know the SUV market has taken a hit across the board , but most of the hardest major hits have been with the 3 domestic mfg's . Granted nothing , big trucks , small trucks , SUV's , crossovers , cars , ect.... are all taking a hit , it's not just the SUV market that is down , they all are. I feel that if gas prices were not where they are the cross over market would be hit . It's economy driven and media driven IMO.

 

[Falls]

with toyota and LEXUS they dont neg lease buyout i've ask plenty of times im going through this right know and finding it hard to keep the runner and interest is a killer cause at the monment there is no incentives on preowned runners either from what i understand is that toyota takes back these trucks puts it through the auction and what ever loss they take is covered through a insurance company so they still get paid

please correct me if im miss informed so i can try another time to keep my truck

I don't know why they won't neg. a lease is beyond me , but that may change very soon. They can only take so much of a hit time after time , before Toyota/Lexus who has already made a good profit on the lease , may not want to follow it with a hit / loss that will offset the profit of the vehicle as a whole.