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Discussion Starter · #1 ·
We're looking to buy out our 2019 Ascent lease (ends Jan '22) but we don't want t be taken advantage of since we're new at this. I've looked over our Lease Agreement and can see what our Residual Value is. Are there going to be any other 'fees' that the dealership will try to tack on. We know there will be taxes but what else? We carefully read through the agreement, front and back, but nothing stands out.

Any help is greatly appreciated!!
 

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I wouldn't comment on your specific lease, but when we bought my wife's Legacy at lease-end, the only thing was the residual value and a $300(?) purchase fee. Of course, you wouldn't have to deal with any wear and tear since you aren't returning the vehicle. And in our case, it was leased through Subaru, so we actually paid Chase who handled the lease agreement etc.
 

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^ Same with us, when I purchased my Legacy at the end of its lease back in 2008. Our lease was with Chase, so it was directly through them, no dealership visit whatsoever.

You can negotiate - at least at the time, that was still possible....not sure about this, given today's market. Currently, it is very, very likely that your vehicle is worth much more than what you'll be buying it for! :)
 

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You should be able to get the information you need from the leasing company.

That said, with the huge elevation of used vehicle values/prices at the present time, buying out a lease is a lot more attractive than it might be under more "normal" (whatever that is...) circumstances because the residuals are most often well below the trade/sale value of the vehicle. If you really like it, keeping it can make sense over trying to buy something different in a market with constrained supply and less opportunity to "deal". And even if you do want something new, compare the value of a trade with any sales tax advantages available in your state vs buy-out and sell privately...both can provide a bigger pile of money toward buying a new vehicle. But do not do a new lease and put money "down" on it...you are not saving anything that way on the actual cost of the lease. Do a buy with an increased down payment from the proceeds of the previous vehicle for best financial benefit.
 
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Currently, it is very, very likely that your vehicle is worth much more than what you'll be buying it for! :)
This is the way. I'm not sure what your long term goal is here, but smart money on leases right now is to buy out the undervalued cars at the low residual and resell them immediately, parlaying the earnings into a new vehicle or your pocket if you don't need a new vehicle.
 

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Discussion Starter · #7 ·
This is the way. I'm not sure what your long term goal is here, but smart money on leases right now is to buy out the undervalued cars at the low residual and resell them immediately, parlaying the earnings into a new vehicle or your pocket if you don't need a new vehicle.
We’d love to do that but still need something to drive
 

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^ Bridging off of that, it's also possible to do some other things....

Buy out the vehicle and re-sell for-profit (significant profit, at that), and roll that either into a new lease or purchase.

This option would also allow you to receive the benefit of another full-term bumper-to-bumper warranty.

Certainly, it's harder driving deals at many dealerships and in many regions - often we're seeing vehicles marked-up above MSRP, with plenty of folks who willingly pay that premium (thus negating/minimizing dealer propensity to "wheel a deal"). That said, the math can still be favorable.

I took the easy way out and rolled into a new 3-year lease for a '21 Touring, coming off a '19 Touring. For what's literally the same money, I'm up 3K miles a year to 15K/per, and re-started the clock on that bumper-to-bumper.

This, and I know I left money on the table because I decided I didn't want to deal with the hassle of selling the vehicle, myself. Time = Money, right? 😅:p
 

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Slightly off topic, buy anyone that is within one year of their lease end (sometimes 18 mos) can frequently hand it over at no cost to a dealer and buy/lease a new car. We've done that frequently. Used cars are money in the bank for car dealerships and a two-year-old car (assuming a 3-year lease) is worth nice money in the current climate of limited car availability. Do not agree to roll your remaining payment into the next loan or lease--that will cost you. The dealer should be willing to buy out the remaining lease with no cost to you, as long as the car is in good resale-able condition, and the buyout still offers a profit to the dealership. The more desirable your particular model, the better for you too.
 

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Do not agree to roll your remaining payment into the next loan or lease--that will cost you. The dealer should be willing to buy out the remaining lease with no cost to you, as long as the car is in good resale-able condition, and the buyout still offers a profit to the dealership. The more desirable your particular model, the better for you too.
^ *emphasis added.

Great point.

I should have not used the word "roll" so liberally in my post above, my apologies for anyone who read it as such.
 

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This, and I know I left money on the table because I decided I didn't want to deal with the hassle of selling the vehicle, myself. Time = Money, right? 😅:p
I think so many people forget this. I mean, if you love dealing with CL and FB Marketplace weridos, allowing randos to drive your car around and wasting time on people who don't show up, in order to make a couple hundred more on the deal, then private party sale is a great option for you.

The last time I private sold a car I spent 15-20 hours of my time on the listing, answering emails/calls/texts, showing the car, answering more questions, etc. At the rate I get paid to do my regular job, that works out to ~20% of what I sold the car for. Not a chance it was even close to worth the trouble. At this point, I'm willing to spend the 30 minutes it takes to get a quote from CarMax, drive to the dealer, show them the quote and then either leave the car there if they meet the price, or take another 30 minutes to drive back to CarMax. 1h...tops.
 

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I think so many people forget this. I mean, if you love dealing with CL and FB Marketplace weridos, allowing randos to drive your car around and wasting time on people who don't show up, in order to make a couple hundred more on the deal, then private party sale is a great option for you.

The last time I private sold a car I spent 15-20 hours of my time on the listing, answering emails/calls/texts, showing the car, answering more questions, etc. At the rate I get paid to do my regular job, that works out to ~20% of what I sold the car for. Not a chance it was even close to worth the trouble. At this point, I'm willing to spend the 30 minutes it takes to get a quote from CarMax, drive to the dealer, show them the quote and then either leave the car there if they meet the price, or take another 30 minutes to drive back to CarMax. 1h...tops.
I agree 100%. There's got to be a pretty good benefit in it for me to go to all the trouble.

I got a better quote by ~$1000 from Carvana. Even less time spent since they'll come to you for pickup. :)
 
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