[Bc2005]

My friend is shopping for BMWs, but currently has an Acura RDX where the 3 year lease ends in a few months. The dealer already contacted her about ending the lease early and moving into a new Acura.

Since new car prices seem to be at an all time high now, I suggested she might want to buy the RDX for the residual value, and wait to see if prices on new cars come down. When she asked the dealer what it would cost to buy the car, the sales rep told her it would depend on condition, they would have to inspect the vehicle, etc. This seems crazy for a leased vehicle. Due to market conditions, I suspect they want to get it back into the dealership because the residual is lower than current market prices.

Can't you usually just buy a leased vehicle at the end of its lease for the residual value that was documented in the lease paperwork? My understanding is that some BMW owners try to negotiate to buy for less than residual, so buying at the original price seems to be a very reasonable choice.

[DenverSteve]

Originally Posted by Bc2005

...Can't you usually just buy a leased vehicle at the end of its lease for the residual value that was documented in the lease paperwork? My understanding is that some BMW owners try to negotiate to buy for less than residual, so buying at the original price seems to be a very reasonable choice.

No one can say for sure. Your friend has the terms & conditions in her/his contract.

[claykin]

Originally Posted by Bc2005

My friend is shopping for BMWs, but currently has an Acura RDX where the 3 year lease ends in a few months. The dealer already contacted her about ending the lease early and moving into a new Acura.

Since new car prices seem to be at an all time high now, I suggested she might want to buy the RDX for the residual value, and wait to see if prices on new cars come down. When she asked the dealer what it would cost to buy the car, the sales rep told her it would depend on condition, they would have to inspect the vehicle, etc. This seems crazy for a leased vehicle. Due to market conditions, I suspect they want to get it back into the dealership because the residual is lower than current market prices.

Can't you usually just buy a leased vehicle at the end of its lease for the residual value that was documented in the lease paperwork? My understanding is that some BMW owners try to negotiate to buy for less than residual, so buying at the original price seems to be a very reasonable choice.

Commonly, closed end leases have a residual value purchase option. Ask your friend to read the lease Agreement. Also, call the lease servicer and get a "payoff" at lease end.

The salesman is being a salesman. He doesn't want to educate you on how to make money flipping the RDX to a dealer, where your friend keeps the profit.

[DocL]

She can log onto the Acura Financial website and see exactly how much the buyout will be at the end of lease. Unfortunately there is no negotiating because the used car market is hot right now. It's a simple process also. You just get a check made payable to the car manufacturer and send it in, or you do it through a dealer. Just make sure the dealer doesn't charge any bullshit fees.

[TAZ007]

Originally Posted by Bc2005

My friend is shopping for BMWs, but currently has an Acura RDX where the 3 year lease ends in a few months. The dealer already contacted her about ending the lease early and moving into a new Acura.

Since new car prices seem to be at an all time high now, I suggested she might want to buy the RDX for the residual value, and wait to see if prices on new cars come down. When she asked the dealer what it would cost to buy the car, the sales rep told her it would depend on condition, they would have to inspect the vehicle, etc. This seems crazy for a leased vehicle. Due to market conditions, I suspect they want to get it back into the dealership because the residual is lower than current market prices.

Can't you usually just buy a leased vehicle at the end of its lease for the residual value that was documented in the lease paperwork? My understanding is that some BMW owners try to negotiate to buy for less than residual, so buying at the original price seems to be a very reasonable choice.

Agree with the other comments and will add that a lease is a valid contract. Review the terms of purchase and that will be all they are obligated for. Should the dealer/OEM try to tack on "other" fees or terms and refuse to honor the agreement; then it would be breach of contract on their part and something you could sue for. It will not go that far though.

[E46ZHP2]

The condition of the car has nothing to do with the buyout number (residual). It has already been defined in the lease agreement. Additionally, the dealer plays no role in the buyout. You deal directly with the finance company (Acura Financial or whomever).

[Bc2005]

Thanks for all the replies. They agree with what I assumed about the residual.

She recently moved and can’t find the lease paperwork right now, but logging on to the Acura financial site should work fine. I told her that the dealer who wants to accept the car off lease is being a jerk when he wouldn’t answer a simple question about the residual. I wouldn’t trust him for any future purchase.

[RigaTony1982]

My wife actually did this. She had an RDX lease and got out of it a few months early to get her BMW. The BMW dealer called Acura and got the payoff. The current value of the car was appraised higher than the payoff, so she applied the equity she had as her money out the door on the BMW. You don't have to do anything through the Acura dealer. Even if you buy it outright, you just talk to Acura financial.

[strohw]

Originally Posted by Bc2005

When she asked the dealer what it would cost to buy the car, the sales rep told her it would depend on condition, they would have to inspect the vehicle, etc. This seems crazy for a leased vehicle. Due to market conditions, I suspect they want to get it back into the dealership because the residual is lower than current market prices.

I'm going to make an assumption here and just assume the sales man was actually referring to the dealership buying out the car from her. Not her buying out the lease herself. Doing so would require them to inspect the car as they are now going to buy it and sell it as a used or certified used car.

Until she finds out what her pay off is, no one even knows where she stands. But as already mentioned, she can just call Acura Financial Services or use the website to see what that amount is.

[Pork Rind]

Originally Posted by RigaTony1982

My wife actually did this. She had an RDX lease and got out of it a few months early to get her BMW. The BMW dealer called Acura and got the payoff. The current value of the car was appraised higher than the payoff, so she applied the equity she had as her money out the door on the BMW. You don't have to do anything through the Acura dealer. Even if you buy it outright, you just talk to Acura financial.

Funny. I checked to see if I wrote this post as my wife just sold her leased RDX about 7 months before the end of lease. In this case, she called the Acura dealership first to see if they wanted it and they made a generous offer on the spot. She got a pile of cash up and above her payoff amount. The Acura dealer said they were desperate to have anything on the lot to sell, and since it was an Acura, they were all the more interested.

[jko415]

Originally Posted by Bc2005

My friend is shopping for BMWs, but currently has an Acura RDX where the 3 year lease ends in a few months. The dealer already contacted her about ending the lease early and moving into a new Acura.

Since new car prices seem to be at an all time high now, I suggested she might want to buy the RDX for the residual value, and wait to see if prices on new cars come down. When she asked the dealer what it would cost to buy the car, the sales rep told her it would depend on condition, they would have to inspect the vehicle, etc. This seems crazy for a leased vehicle. Due to market conditions, I suspect they want to get it back into the dealership because the residual is lower than current market prices.

Can't you usually just buy a leased vehicle at the end of its lease for the residual value that was documented in the lease paperwork? My understanding is that some BMW owners try to negotiate to buy for less than residual, so buying at the original price seems to be a very reasonable choice.

For sure you can buyout the lease. Call Acura Financial and they can give you the buyout price on that date. You don't have to wait until the end of the lease. Condition doesn't matter, that is only a factor when you return the lease to the financial company at the end of the lease term.

The sales rep is either new and doesn't know what he is talking about or he is just playing games with her. The RDX most likely has positive equity and they want to use that to move her into a new model.