End of Lease info/experience, please

[Mike Poore]

The lease on Barb's '05 Aviator is up, next month. Everything is fine, no dings, scrapes, all maintenance requirements fulfilled, and tyres have plenty of tread. We can simply turn it back in and walk away feeling great about having had a wonderful experience with a terrific vehicle, OR what?

Choices:

buy the Aviator with the lease end, at a very high, above average retail tariff.
wait until Ford inspects it & offers it to other dealers, then buy it off the lot as a used car, at considerable savings. (could take weeks/months) ..but she needs a replacement, right away.
find another Aviator on a used car lot
buy a used or new Navigator
Lease a new Navigator
She's always liked the Navigators, although it's not one of my favorites; but when it's all said and done, Barb gets to say.
The dealer has already called us, and wants to make any offers we might want to consider, only we don't have enough information to make the best decision. Should we:

buy it back now
wait and buy it back at a better price
look for another vehicle
Anyone know about this stuff, 'y'know, dealer's secrets? (I won't tell) ;)

Tell it here and educate everyone, or by PM.

Thanks for your help in advance.:)

[RoyLPita]

Have you found out what the selling dealer is going to do to possibly help you here? There is a possibility that you can buy the Aviator for a little less than payoff but the dealer has to buy the vehicle from Ford and then send it through the used department prep first.

Since Sport utilities in the present economy are sitting on the lot, see what your dealer can do for you.

[Mike Poore]

Since Sport utilities in the present economy are sitting on the lot, see what your dealer can do for you.

Thanks, Brian, yeah, we're gonna see him next week, but over the phone, I got the impression that Ford's guy will evaluate it first, then go through a process where they offer it to other dealers, and my dealer buys it, then sells it back to us. I was hoping to learn exactly what is gonna happen aand how it works, before we go to see him, because it all seems very fuzzy.

It would be a shame to let it get away, though.

Thing is, vehicles like this are languishing on dealer's lots and the buy-back is well above lot price, according to the Lincoln guy I talked to. Ford get's stuck eating the difference, because of the attractive lease deal they offered us, and now the vehicle is worth far less, at lease end, than they anticipated.

There's a smart way to do this, only I don't know what it is.

[Aren Jay]

First look to see what else is available now.

Then you can use that as leverage to get this vehicle for that price or less.

Try out a Navigator, new or used.

Play the economy and truck sales price reduction game with the sales guy. He wants as much money as your lease says on buy back but doesn't want to get stuck with another non selling truck on the lot. Make a deal, unless there is something better out there.

Don't forget to look at the new stuff, the Flex is pretty nice.

http://www.autotrader.com/fyc/searchresults.jsp?model=NAVIGA&num_records=25&systime=&make3=LEXUS&make2=LINC&start_year=2005&keywordsfyc=&keywordsfyc=&keywordsrep=&keywordsrep=&engine=&certified=&body_code=0&fuel=&search_type=both&distance=50&marketZipError=false&model3=RX400H&model2=AVIATOR&search_lang=en&make=LINC&keywords_display=&color=&page_location=findacar%3A%3Ais psearchform&min_price=&drive=&default_sort=distance&max_mileage=&style_flag=1&sort_type=distance&address=17320&advanced=y&end_year=2009&doors=&transmission=&max_price=&pager.offset=25&first_record=26

yes yes I included a Lexus RX400h, now might be the time to up your MPG levels.

[O's Fan Rich]

I'm really liking the 08 MKX I leased for work, Mike.
AWD and just shy of 20mpg around town with only 8500 miles on it.

[HiHo]

We once leased an Oldsmobile Aurora on a 2 year lease. About 3 months to lease end, I found out who locally actually had financial responsibilty for the lease vehicle once turned in. It was the local GMAC office. I wrote the local GMAC office a letter discussing the residual (buy back) price and the current market. I offered them what they could expect to get at auction plus a litlle. They took the offer without further discussion. Ended up buying it several thousand below the "buy back" price that would have been experienced with dealer turn in.
If that is possible with your SUV, I would think this would be a perfect time to present a low ball offer. They can take it or let it sit on the lot.
Just a thought...

[Mike Poore]

Good advice, thanks. We're gonna go talk to them on Monday. He mentioned something about waver of the last two payments, which is not a trivial sum.

[magindat]

This is simple.

Find out through research what the car is worth at retail. KBB it at wholesale, private owner and dealer and average them. Decide how much you like it compared to what else you can afford to buy. Then look at your buyout. If you are in a positive equity position or are satisfied with the comparison then call the lease company DIRECTLY and buy it from them. They'll probly finance your purchase and you simply continue to make payments on a car you like.

The buyout was determined at lease inception and has nothing to do with market prices (closed end lease). Open ended leases are another story. Find out which yours is.

I have done this. In FL, they can legally only have closed end leases. I bought the car which had held it's value nicely and the buyout was about even with market prices. I bought it directly from the leasing company. No one looked at it or nothing. Just a phone call. My payment was cut roughly in half and was for 3 more years. I continued to pay the lease payment amount I was comfortable with and owned the car outright in 15 more months. It was totally worth it.

Just do your homework and see if it's worth it to you... especially if she likes it.

[Mike Poore]

This is simple.
Just do your homework and see if it's worth it to you... especially if she likes it.

Thanks everyone.

Your PM's and posts have given us all the info we need to negotiate a deal. The buyout (Residual Value) is $19,398, which is about list price at local dealers for a similar vehicle, and trade in value is ~14,000.
The Lease holder is an outfit called CAB East LLC and I'll call their 800 # this morning and try to negotiate a price somewhere in between the 14 & 20 thousand figure for a buyout, because they'll just have to wholesale it to another dealer, and I've read online to them it's all about the bottom line.
Once we have that information in hand, we can contact the dealer and see what sort of lease he'll arrange on the new Navigator he has on the lot (read, stuck with), and if it's as good as the one we had on the Aviator, she may choose to go with the Navigator.

I'll keep you posted, and thanks, everyone, once again...:)

[Richy04]

SUV's are not worth the residual these days, offer them the 14k or slightly less and let them make a counter offer. I am sure they will work with you for slightly over the figure you were quoted and you will walk away with it for its cost to a dealer..

Nobody wants an SUV these days on their lot, they take up space and the current state of the economy makes them hard to sell. If everyone can walk away happy, thats the best they can hope for plus they get rid of the car for good and not have the headache of trying to sell it off.

[magindat]

Thanks everyone.

Your PM's and posts have given us all the info we need to negotiate a deal. The buyout (Residual Value) is $19,398, which is about list price at local dealers for a similar vehicle, and trade in value is ~14,000.
The Lease holder is an outfit called CAB East LLC and I'll call their 800 # this morning and try to negotiate a price somewhere in between the 14 & 20 thousand figure for a buyout, because they'll just have to wholesale it to another dealer, and I've read online to them it's all about the bottom line.
Once we have that information in hand, we can contact the dealer and see what sort of lease he'll arrange on the new Navigator he has on the lot (read, stuck with), and if it's as good as the one we had on the Aviator, she may choose to go with the Navigator.

I'll keep you posted, and thanks, everyone, once again...:)

Sounds like you got it. Perfect. Good Luck!!!

[Mike Poore]

Update:
Everything went just the way you guys said it would, and so, Barb got to take a look at other vehicles, while there. First, we got a list of available alternatives of interest, and I sent some VIN's to Brian to run OASIS reports for me, and he came up with a very good returned lease: an '03 Navigator that Barb likes. It's perfect inside and out, and was far less money than the residual value of the Aviator, so we used the difference and added 3yr 36,000 mile bumper to bumper warranty on it, with the difference being -0-. I didn't know it until Jim asked in a PM and Dan called, that it has the 5.4 DOHC truck engine with cast iron block and aluminum heads. I guess it's much the same motor that Dan has in his Blackwood, and they used in the Lightnings. The sticker says premium fuel, but from what I'm reading on line, the 9.5 ratio motor has a fairly mild tune, and many folks use mid-grade fuel in 'em ....lots of it.
In any case we pick it up this afternoon. I've been looking for a tow vehicle for the garage queen(s) and camping trailer, and Barb has liked these from day one, ......so there y'go. :D

Doing our part to solve the oil crisis .....we'll keep an eye on the tyre pressure. ;)

[magindat]

Update:
Everything went just the way you guys said it would, and so, Barb got to take a look at other vehicles, while there. First, we got a list of available alternatives of interest, and I sent some VIN's to Brian to run OASIS reports for me, and he came up with a very good returned lease: an '03 Navigator that Barb likes. It's perfect inside and out, and was far less money than the residual value of the Aviator, so we used the difference and added 3yr 36,000 mile bumper to bumper warranty on it, with the difference being -0-. I didn't know it until John asked and Dan called, that it has the 5.4 DOHC truck engine with cast iron block and aluminum heads. I guess it's much the same motor that Dan has in his Blackwood, and they used in the Lightnings. The sticker says premium fuel, but from what I'm reading on line, the 9.5 ratio motor has a fairly mild tune, and many folks use mid-grade fuel in 'em ....lots of it.
In any case we pick it up this afternoon. I've been looking for a tow vehicle for the garage queen(s) and camping trailer, and Barb has liked these from day one, ......so there y'go. :D

Doing our part to solve the oil crisis .....we'll keep an eye on the tyre pressure. ;)

Congrats, Mike and Barbara. Glad we could help! :D

[Mike Poore]

We picked the Navigator up, yesterday afternoon. It a very nice vehicle and was cared for the same way we take care of ours.

Forrester's is is a family owned dealership in Chambersburg, PA: Forrester's Lincoln Mercury, and we've been buying cars from them for years. The first, as I recall, a pair of '67 Mercury Cougars. Barb's was white with black interior & 289 auto. Her brother's was white with a blue interior, and bench seats....very rare, although we thought it was ugly at the time. :D

In any case, dealing with these folks has always been a pleasure and we always give the sales folks and shop the highest ratings when the surveys come in the mail.

BTW, those two Aviators, the '03 & '05 were sensational vehicles. I bet they won't let the one we just turned in, get away. :)