View Full Version : Car Leasing Question...
Has anyone ever heard of a dealership refinancing a car for purchase once the lease term ends?
I have always known that when leasing a vehicle, you have 3 options at the end which is 1) to buy it outright, 2) purchase a new car, 3) or just return it and pay whatever fees have incurred.
Eel's father has been saying that he could refinance, but i thought that odd. I really wasn't in the position to question my future father-in-law at the time and wish i had.
Looks like we may be searching for a $12K car loan to pay off this lease. Fuck!!!
refinancing??
how do you mean? re-lease it?
yeah, I'm stuck on that term. Refinancing.
It sounds as if you're looking to buy out the lease? Why?
bigNINERdaddy
09-03-03, 08:53 PM
From what I understand about the process, you shouldn't HAVE to "refinance" the residual value of the vehicle unless you decide to purchase it when the lease term is up. If you don't want to keep the vehicle, you should just be able to pay the dealership any fees due (excess mileage, disposition fees, etc...) and walk away. All of those fees should be spelled out in the lease agreement.
Originally posted by LarryD
refinancing??
how do you mean? re-lease it?
obviously, i'm not familiar with all the aspects of leasing. About 12K is owed and i'm curious if the dealership will allow him to finance the car.
Originally posted by magnus
yeah, I'm stuck on that term. Refinancing.
It sounds as if you're looking to buy out the lease? Why?
the lease ends on the 27th.
Originally posted by bigNINERdaddy
From what I understand about the process, you shouldn't HAVE to "refinance" the residual value of the vehicle unless you decide to purchase it when the lease term is up. If you don't want to keep the vehicle, you should just be able to pay the dealership any fees due (excess mileage, disposition fees, etc...) and walk away. All of those fees should be spelled out in the lease agreement.
that is what we want to do...purchase the car. I just want to be able to finance it through the dealership. Not exactly the best way to go, but we don't have 12K just sitting around. Had i been in his life when he leased the car, stashing cash away would have begun on day one. Hell, leasing wouldn't have been an option.
Hell, leasing wouldn't have been an option
At least you guys have learned that lesson!!
bigNINERdaddy
09-03-03, 09:18 PM
Originally posted by kakia
that is what we want to do...purchase the car. I just want to be able to finance it through the dealership.
I guess it really depends on who the vehicle is leased through if the dealership can/will refinance (GMAC, Ford Motor Credit, Chrysler Financial, World Omni, etc...) We just refinanced a vehicle last year after leasing it but we got financing through the credit union. You'll just have to talk with the finance people at the dealership and see what they can do for you. Good luck, it's been my experience that most are fairly slimey.....
HighPoint49er
09-03-03, 09:19 PM
The credit union is the way to go if either of you are members of one.
it sounds like he wants to buy the car, then, right?
builder
09-03-03, 09:35 PM
State laws regulate leases. Yours might be different than NC's, but when I finished the lease on my VW a few years ago, I went to VW Credit and asked for a loan to buy the car. They approved me in under 10 minutes over the phone without having to even visited the dealership other than to sign the papers. It was really easy. So I guess it depends on who you had your lease through as to whether or not they will refinance on the spot.
Originally posted by magnus
it sounds like he wants to buy the car, then, right?
yes
Originally posted by bigNINERdaddy
I guess it really depends on who the vehicle is leased through if the dealership can/will refinance (GMAC, Ford Motor Credit, Chrysler Financial, World Omni, etc...)
American Honda
Originally posted by builder
State laws regulate leases. Yours might be different than NC's, but when I finished the lease on my VW a few years ago, I went to VW Credit and asked for a loan to buy the car. They approved me in under 10 minutes over the phone without having to even visited the dealership other than to sign the papers. It was really easy. So I guess it depends on who you had your lease through as to whether or not they will refinance on the spot.
well, it looks like i will be calling the folks up tomorrow. should i just call the finance company directly? or should i talk to someone at the dealership.
builder
09-03-03, 09:48 PM
Originally posted by kakia
American Honda
Get on the phone with them tomorrow. Hopefully you haven't been more than 30 days late with any payments and his credit is up to par for purchasing a vehicle. The lease specifies how much the car is now worth so there won't even be a need to negotiate.
builder
09-03-03, 09:48 PM
Originally posted by kakia
well, it looks like i will be calling the folks up tomorrow. should i just call the finance company directly? or should i talk to someone at the dealership.
Call the finance company. Screw the dealership. You don't need the extra fees.
Originally posted by kakia
yes
allright. That's where the confusion was.
So for $12k, could you get more car somewhere else? With a different car, even a similar car? My father had a buyout after a lease for $12k, got a similar truck for basically the same money with half the miles.
builder
09-03-03, 09:59 PM
Originally posted by magnus
allright. That's where the confusion was.
So for $12k, could you get more car somewhere else? With a different car, even a similar car? My father had a buyout after a lease for $12k, got a similar truck for basically the same money with half the miles.
Only thing to consider, they've had this car since it was new. They know it's history, service record, and problems. Another used vehicle might be a dangerous thing.
Originally posted by magnus
allright. That's where the confusion was.
So for $12k, could you get more car somewhere else? With a different car, even a similar car? My father had a buyout after a lease for $12k, got a similar truck for basically the same money with half the miles.
it's a 2000 Honda Prelude. looking for another vehicle is not an option since they don't make Preludes anymore.
SemperFi
09-03-03, 10:20 PM
Since you're telling all ELL's business, how much does he make? What's his SSN? Credit card numbers? etc....
Originally posted by SemperFi
Since you're telling all ELL's business, how much does he make? What's his SSN? Credit card numbers? etc....
well, since you asked....
Be sure and look up the blue book value on the car, wholesale and retail. 12k sounds kinda high
Remember, the lease end value IS negotiable. You can buy it for less
it just sounds like the wording on the refi is a little mixed up, refi, buy out, I'm sure he meant just to buy it. I bought a car after I leased it 2 years. Dealership handles it like any other car sale
Are you a credit union member? Know anyone who can get you into one?
Originally posted by kakia
it's a 2000 Honda Prelude. looking for another vehicle is not an option since they don't make Preludes anymore.
A similar car. That's the only late model Honda Prelude out there? I wasn't talking about going and buying a brand new one. I was talking about comparison shopping that used car versus other used cars like it (or not at all like it, or whatever is wanted) to see if you can do better than the current option. There's no harm in trying to see if you can save yourself a bit of money, is there? I mean, you're buying a car. $12,000 is a lot of money, don't spend it without considering options.
looks like a decent price from edmunds.com -- how many miles do you have?
damn, carmax has a '00 with 41k, they want $16k
they got a '97 with 77k, they want $12,500
for $230/month on 5 years or like $370 for 3 years, it doesn't look like a bad deal, plus you know what your getting by keeping that car, you never know what other peoples problem you might get with another car
Originally posted by LarryD
looks like a decent price from edmunds.com -- how many miles do you have?
51,100
leasing is worse than buying than buying brand new.
Originally posted by DaveW
leasing is worse than buying than buying brand new.
totally agree with you on that point. why would anyone want to have car payments for the rest of their life?
Originally posted by DaveW
leasing is worse than buying than buying brand new.
Agree. Even though I went against my better judgement and bought my jeep new. But I still think the Liberty is very good value for the money.
Originally posted by Patti
Agree. Even though I went against my better judgement and bought my jeep new. But I still think the Liberty is very good value for the money.
Buying new is ok if you plan to drive the car forever or until the wheels fall off - whichever comes first.
Originally posted by kshead
Buying new is ok if you plan to drive the car forever or until the wheels fall off - whichever comes first.
I do that. My honda accord had over 200K miles on it when I traded it in. I plan to do that with this jeep as well.
Originally posted by DaveW
leasing is worse than buying than buying brand new.
:stupid:
Another thing that will take you a long way....
"Never finance a depreciating asset."
Originally posted by Savio
:stupid:
Another thing that will take you a long way....
"Never finance a depreciating asset."
that's an even better point.
the finance office won't handle it over the phone, much less deal with me. Said that we need to head up to the dealership. Blech!!! Now, I know what i'm doing Saturday afternoon. Would rather be home watching football.
Originally posted by Savio
"Never finance a depreciating asset."
but 90% of the country doesn't have enough cash to buy cars outright.
SandMan
09-05-03, 04:12 PM
Leasing has been a great option for the wife and I for her car. She gets a brand new ride every 4 years and our monthly payment is a few hundred dollars less a month than financing the thing outright.
We are on our 3rd leased vehicle. In December, will take our old Sienna in pay the $250 fee and get into a brand new (Like Larry D's) one for not much more than we are paying now and a hell of a lot less than what a car payment would be say with only a thousand or so down.
Moral of the story? If you know, you don't have the will power to keep a car after its paid off and your getting a new car every 3-4 years anyway, leasing is the most cost effective way to do it. As far as the mileage concern, we have always negotiated 15,000 a year for no additional cost vs the 12,000.
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