Why you SHOULDN'T Buyout your Auto Lease in 2023

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  • เผยแพร่เมื่อ 20 ธ.ค. 2024

ความคิดเห็น • 60

  • @consumerdebtchitchat
    @consumerdebtchitchat 9 หลายเดือนก่อน +6

    It's March 2024. My lease runs out in October for my Toyota Corolla LE. The residual buyout is 13,500. The market value on my 2022 vehicle with 18K miles, in above average condition (I'm single, no passengers), is 20,500 😀😀😀.
    I would be completely nuts to walk away from it. I think my dealership is a bit pissed that I turned down another leasing opportunity ,😅.
    When the lease ends, I will pay the remaining 11k balance in cash as I already have the money reserved.

  • @jonathanberube5056
    @jonathanberube5056 2 ปีที่แล้ว +34

    I just bought out in late Oct my Audi RS5. It only had 25k out of the 45k miles allowed in the lease. Book value close to 70k. Buyout was on 41k. It was a no brainer for me.

    • @j5547
      @j5547 ปีที่แล้ว

      So you bought out for 41k and it became fully yours like under your ownership? Bc I wanna do that with my vehicle but people tell me that I will need to pay my lease then on top of that pay what it will be worth this year if that makes sense

    • @phantpwr
      @phantpwr ปีที่แล้ว

      Did you do it with Audi financial? How did you do it?

    • @j5547
      @j5547 ปีที่แล้ว +1

      @@phantpwrI did it thru ally bank

    • @ZOUPPERMAN28
      @ZOUPPERMAN28 ปีที่แล้ว

      What to you think about mg family member Lexus IS350 end of leased buy out amount is $27k plus tax and dealers add fees. right now the car have 25 k miles it's a 2021 IS 350

  • @gracefulfish
    @gracefulfish ปีที่แล้ว +5

    Going to check back with you in early 2024 to get your thoughts on a lease ending that April. I love how you let us in, on how are minds should be working for this.

  • @TheZagreb1983
    @TheZagreb1983 ปีที่แล้ว +4

    I was lucky(which i didn't realize immediately),bought my car(not new) in march 2020(just before covid hit) on financial leasing, with no buyout. As the market is now,my car is valued the same as i bought it 3 years ago,which is crazy.

  • @brianwinters5434
    @brianwinters5434 2 ปีที่แล้ว +6

    I sold autos for 10 years. The only time I seriously recommended it was if the person was way over mileage. If you purchased, it that did not matter I had several customers who were 50 or 50 k over mileage that would cost serious money. Even if you then sold the car you were still ahead.

  • @bernardkupilikjr512
    @bernardkupilikjr512 2 ปีที่แล้ว +7

    I brought out my 2019 Civic Touring Coupe 27K miles for 16K. Avoided the dealer and went through Honda Finance was easy as heck. When I went to value my car online it was approx 23K!

    • @letd1995
      @letd1995 ปีที่แล้ว

      Oh wow I didn’t know you could buy it directly from Honda finance. I thought you had to go back to the dealership. I’m definitely find out my 2020 civic SI the buyout is 18 K and it’s worth around 24K. Thank you for that

    • @65armadillo
      @65armadillo ปีที่แล้ว

      Were you able to contact Honda finance directly to convert the lease to a loan? I’m wanting to do this with my Lincoln nautilus which has ten more months on the lease.

    • @viper1213
      @viper1213 ปีที่แล้ว

      Where did you check the values?

  • @aramisberrios9114
    @aramisberrios9114 ปีที่แล้ว +3

    I have a 2020 Tacoma TRD Off Road and my lease maturity ends in September. Of course the dealer continues to call me wanting to give me a good deal as a lease end option. I’m considering a lease extension and go from there

  • @heatherlovesclay
    @heatherlovesclay 2 ปีที่แล้ว +11

    I’ve been thinking about this a lot and I don’t see any way that it wouldn’t be worth keeping my vehicle. Considering the lack of inventory, the increase in prices and interest rates. I don’t think it’s worth it to pay for a new vehicle.

    • @negotiationguides
      @negotiationguides  2 ปีที่แล้ว +1

      Definitely makes sense to do it in a lot of circumstances Heather! Go for it if it feels right.

  • @lukylex
    @lukylex ปีที่แล้ว +3

    Getting a dealer to appraise a car is a little comical to me considering that they cannot be trusted at all they're always going to lowball you like crazy

  • @fredfeldman9206
    @fredfeldman9206 2 ปีที่แล้ว +5

    Another option is to apply the equity over the lease buy-out price to a new lease (or purchase). I had 20% equity with two months to go on my 3-year lease of 2020 Mazda CX5 Signature Trim. I really liked the Mazda but wanted the newer infotainment and the peace-of-mind of a full warranty. I was able to get a Mazda dealer to apply my 2020's equity to a new lease, putting me into a 2023 Signature Trim CX5 with 0 down except for first month's payment, for $60 less per month than my 2020 lease. (CarMax, which was offering the 20% equity, confirmed with me that Mazda would not allow them or any 3rd-party to buy-out the 2020 at my buy-out price.)

    • @barbarastockler1
      @barbarastockler1 ปีที่แล้ว

      This is very interesting - how hard was it to negotiate?

    • @jakerivera5408
      @jakerivera5408 ปีที่แล้ว

      @@barbarastockler1I just did this same thing with a 2021 Audi A5 and got into a fully loaded 2023 A5 for a lower monthly pmt. Not hard to negotiate just know the numbers and exactly what you want.

  • @paulstein9258
    @paulstein9258 ปีที่แล้ว

    My 2021 Toyota Venza Hybrid Limited with Panoramic sunroof on a 3 year lease expires May 2024. It will have about 12,000 on it. The used 2021 limited models are currently selling over $ 40,000 with higher mileage. I plan to buy then trade it in. I will pay sales tax on the $ 26,000 residual. If the trade in is $ 35,000, I will make money on the tax alone ($ 9,000 difference by the 8% sales tax). Though I like the car, new is always nice. I’d like to take advantage of the current environment and get top trade in, and pay MSRP on a new Venza or Highlander. The dealer will sell it as a certified car for a high price.

  • @devontorres6449
    @devontorres6449 ปีที่แล้ว +1

    I had a Kia stinger lease base model. Buyout was 17.5k but a dealer offered 29.5k for trade vs the actual value which was 28k. At that point what can you do with the positive equity? I wanted the same car but loaded so I did just that traded it in to the dealer for the 29k had absolute $0 down 327 a month lease fully loaded Kia stinger out the door. I would say I was lucky but part of it is shopping your lease out to different dealers and mention what your are trying to do until a motivated dealer bites.

  • @xFearGodx
    @xFearGodx ปีที่แล้ว +14

    just based off that title its either clickbait or this guy doesnt know. the car market is absolutely screwed in the best way right now, most used cars are worth so much more than ever right now. if you have a lease ending right now, pretty high chance youre in a good position to buy it out for a really good deal

    • @massesbulet
      @massesbulet 9 หลายเดือนก่อน

      I want to sell my lease and flip it and make money. But carmax won't buy it. They give me a good appraisal price the highest basically in the market. But they won't buy a lease from Hyundai financial. Any idea who else can buy them

    • @consumerdebtchitchat
      @consumerdebtchitchat 9 หลายเดือนก่อน +1

      The residual balance on my vehicle is 13,000. Kelley Blue book and on the dealer lot they have it selling for more than 20K!!!
      The dealership was pissed when I said I'll keep the car 😂😂. When they offered to finance it I said I'll be paying the balance in cash 😀. And I'll be going through the financing company not the dealership.

    • @matthewmatzner4930
      @matthewmatzner4930 9 หลายเดือนก่อน

      Oh boy has this comment not aged well at all. The reality is vehicle prices are absolutely tanking right now, even vehicles that have the highest residual value. Almost any vehicle is going to have a substantially higher buy out number than what that vehicle is worth on the open market. Walk away and go buy the same vehicle with less miles and save a few grand.

  • @nanettespatafore1017
    @nanettespatafore1017 3 หลายเดือนก่อน

    Hi Ari, I have a Honda crv ex 2022, the sticker was $31, 655.00 , I only have 5400 miles, my lease end in march 2025, my buy out is $23,000, my monthly pymts are $326.00 a month. I don’t drive a lot as you can see. So I’m guess I should buy it out. What are you thoughts, I do love my car. WDYT! Thanks, Nanette

  • @TOURMANBOB
    @TOURMANBOB ปีที่แล้ว

    Just bought out my 2018 Kia Niro Hybrid with 20K mileage on it. Buyout was $9400 and the current retail value is $17.5K . Its a no brainer for me..

    • @tyler-blink
      @tyler-blink ปีที่แล้ว +1

      Just curious - how did you lease a 2018 Kia Niro? Did you just keep extending it? It’s 2023 so I figured your lease would be up by now.

  • @scottminer8948
    @scottminer8948 7 หลายเดือนก่อน

    My lease ends May 2024 on a 21 Nissan Frontier SV 4x4 Midnight Edition with 13k miles. Residual 25k and see model with about 10k more miles selling around 27-28k. This is last year of this model. On the fence to buyout or return. Would like to get a new Tacoma but with interest rates so high thinking better to wait. Any thoughts?

  • @johnscerbo130
    @johnscerbo130 ปีที่แล้ว +1

    Iam leaning towards buying out my lease 2021 Tacoma sr5 v6 2 wheel drive double cab. 19k miles very clean. Buyout 28k . I have 2 more months to decide. Your thoughts????

  • @iamgoregeous3952
    @iamgoregeous3952 ปีที่แล้ว +1

    How do you figure out these numbers???

  • @albertobenelli
    @albertobenelli ปีที่แล้ว +2

    I leased a GLB 200d from BENZ in 2021 . Leased value was total 50k euro . Today same car, same year, same mileage is selling for 44k .
    I will have the buyout in summer 2024 set at 21k euro .
    It's BENZ latest model, will not be radically changed at least for another 4 years .
    It seems to me quite logical that it's a DEAL to buyout this car .

  • @Holeecowholander
    @Holeecowholander ปีที่แล้ว

    Excellent video, explains things well.

  • @dalenevins6934
    @dalenevins6934 ปีที่แล้ว

    Have will be buying my lease car should i finance or pay cash?

  • @williamsanchez9729
    @williamsanchez9729 ปีที่แล้ว +1

    my lease will be over June 2-2023-is a Nissan Murano SV.3 YRS LEASE 36,000 MILES.UP TO DATE I ONLY HAVE 26.500 MILES.Residual price 20.000 $.market value is 28.000.what do you recommend.

    • @greglopez8206
      @greglopez8206 ปีที่แล้ว

      Buy it out. But not through a dealership. Go directly through Nissan Finance.

    • @mrdeathclaw66
      @mrdeathclaw66 ปีที่แล้ว

      definite buy out!

  • @Arlene_witha_y
    @Arlene_witha_y ปีที่แล้ว

    What camp is a Mazda cx 5 in?

  • @ProdigalBeard
    @ProdigalBeard ปีที่แล้ว

    I have a lease due in april, but lots of deals locally right now. Is it worth trading in early? Waiting to get trade in values in person but the residual is 17k and *estimated* online in the 21-24 range.

  • @APOSTLESDOCTRINEPHOENIX
    @APOSTLESDOCTRINEPHOENIX ปีที่แล้ว

    Hi ty for this video, im asking for advice, im looking to lease to buy out at the end of the lease a 2023 Tacoma or Frontier or Ridgeline , to make it more affordable initially then buy out at end? , I did that with my 2015 Acura and it worked out well.

  • @devinflocke5651
    @devinflocke5651 ปีที่แล้ว

    I currently drive a 2021 Ford f150 xlt 302a package and my lease is up in sept of 2024. I know there’s equity in the truck bc I only have 18k miles on it. So my question is, if my buyout is 36k.. so I just turn it in 6 months early and get 5k equitytowards a new lease or do I try to go buy it out early and see if th equity can be my down payment and try to get the dealer to lower the buyout price? I love the truck and would have no problem keeping it but the current market prices for the same truck are just insane so I’m not sure if leasing another is the best move either.

  • @MarkSmithhhh
    @MarkSmithhhh ปีที่แล้ว

    What if my residual value is 3000 dollars less than the market value

  • @alarias5230
    @alarias5230 2 หลายเดือนก่อน

    Dealer wants extra $4,000 over the buyout price on the contract is this legal?

  • @sunnydayincali
    @sunnydayincali ปีที่แล้ว

    Hello Ari I leased a 2019 Jeep Wrangler in 2019 it currently has 25k miles. On the lease contract my purchase option buyout fee is $26k I want to keep it. Will I be able to purchase my Jeep for the amount listed on my contract? ( it is on the contract can they change price? Who do I pay dealer or bank that I financed lease with?

  • @MattMcGrathOfficial
    @MattMcGrathOfficial ปีที่แล้ว

    I am currently leasing a 2022 Ford Maverick for $399 a month. I am a year into my lease and already over the miles per year by 5k. The buyout price for my vehicle in two years is $20k and change plus fees. Right now I have 9k worth of payments remaining and the value of my truck currently on the private market is 35k. I do like the truck, but may want to move into an SUV for future kids.I also currently own a 2013 Honda Accord that has 75k miles only that my wife drives mostly, which I may have to start using more to keep my miles down on the Maverick. Curious to see if it would be wise to look into an early buyout with prices of this truck on private market being high and in demand? Or waiting until the lease is close to ending in 2025?

  • @michaelmarcantonio9718
    @michaelmarcantonio9718 ปีที่แล้ว

    I have 2019 Q5 Premium, my buyout is 22K with tax. They are selling for 28-32K. The thing is I have 40k on it so brakes are coming soon, as well as that $1400 40k tune up. The dealer is paying me 3100 for the equity in the car, and then there is a bonus 2k if I get another lease. I am having a hard time figuring out if it is worth buying. The Q5 is at the end of its life cycle so the new model will be out soon, the lease is comparable to what I am currently paying so I am not sure if it is worth not cashing out of it. Or I can even just drop down to the A4 bc I don't need the SUV, with a lower payment. Any thoughts?

  • @joegaspari8153
    @joegaspari8153 ปีที่แล้ว

    How can you expect a market price to be the determinant? You state the Market Price minus my lease buy out price = my equity I get to pocket? The dealer needs to make money on your car when they eventually sell it. I don't understand.

    • @joegaspari8153
      @joegaspari8153 ปีที่แล้ว

      I currently lease a 2020 Nisan Maxima SL, 20,800 miles on it, buyout right now is 22700 plus 300 purchase option fee. Lease end is Dec 2023.

  • @rpmbxdj
    @rpmbxdj 2 ปีที่แล้ว +1

    Ari. I have a 2019 Dodge Durango R/T with 35K Miles. initially i had a 39 month lease which ended in April 2022. Because of the car shortages back then I decided to extend my lease through the finance company for one year for $240 less off my monthly payment. My buyout in April 2023 is approximately $25K. I like the vehicle but I'm not sure that I want to keep it because it definitely is a gas guzzler and I dont want to finance it as a used car for a high rate for another 4 years. Any thoughts on what to do?

    • @negotiationguides
      @negotiationguides  2 ปีที่แล้ว +1

      Hey! I would see in April what people are selling for on Cars.com and see if it would be worth buying off lease with the intention of selling immediately. The other idea is to put a large chunk down to offset the loan amount, and purchase a MaxCare warranty through Dodge to cover you for another few years.

    • @rpmbxdj
      @rpmbxdj ปีที่แล้ว

      @@negotiationguides Thanks for your feedback Ari!

  • @bobbyvette
    @bobbyvette 2 ปีที่แล้ว +1

    Ari why the new channel with the same content?

  • @miguelmontiel3864
    @miguelmontiel3864 2 ปีที่แล้ว

    So the residual value on the lease agreement doesn’t matter?

    • @negotiationguides
      @negotiationguides  2 ปีที่แล้ว

      The residual value isn’t a fact just a prediction… it’s a value you and the bank agreed to

    • @miguelmontiel3864
      @miguelmontiel3864 2 ปีที่แล้ว

      @@pnw3856 I ask because I totaled my lease with a 14k residual value, long story short Hyundai kept the 8k I was supposedly going to get from the insurance pay out.

    • @SittingBearProd
      @SittingBearProd ปีที่แล้ว

      @@miguelmontiel3864 is not your car that’s why

  • @Chande707
    @Chande707 ปีที่แล้ว +1

    We will need to pay taxes twice that is my biggest pet peeve😅😅

    • @dwreus81
      @dwreus81 ปีที่แล้ว

      Yeah I felt the same but there’s no way around it. The government makes money every single time the same car is sold.
      If you make a profit of at least over 2k maybe it’s worth it.