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Old 28 January 2023, 12:38 AM   #1
scarlet knight
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Are people buying out their leased cars?

My 2021 Audi A4 cost $389 a month. The 2023 Audi A3 appears to lease for $600-700 per month. I may buy out my A4. What are other people doing?
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Old 28 January 2023, 12:44 AM   #2
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People are hanging onto their cars longer.
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Old 28 January 2023, 12:45 AM   #3
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Lease rates now are absolutely ridiculous, but this time last year, I bought out the lease for my 2019 BMW 540i for a different reason.

At that time, I really wanted the new C8 Corvette with the 3LT and Z51 packages. I couldn't get one with the features, colors and packages I wanted. They just weren't available.

I was then looking at other cars to lease or buy. Same thing. The cars I really wanted, I couldn't get. Lots of supply chain issues back then.

So I just decided to buy out my lease instead. Actually, I am pretty happy with that decision now.
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Old 28 January 2023, 12:52 AM   #4
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People are hanging onto their cars longer.
This

https://www.spglobal.com/mobility/en...122-years.html

The average age of a vehicle in America is 12.2 years.
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Old 28 January 2023, 12:54 AM   #5
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My 2021 Audi A4 cost $389 a month. The 2023 Audi A3 appears to lease for $600-700 per month. I may buy out my A4. What are other people doing?
Very similar story. Have a 2019 Audi A4 that came off lease this month. Sent in paperwork to buy it a couple of weeks ago. No way I was getting into a lease at the current payment rates.

It's worth more than the buyout with one year of warranty left. Will likely extend it and run it past 100K miles.
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Old 28 January 2023, 01:47 AM   #6
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Too many variables we don’t know as to why. You really need to do some math and comparisons. With leasing it’s not the rate alone, it’s the residual, length, cash or incentives at the time, mileage etc etc.

If buying it out is in your favor after factoring ALL costs and added warranties and maintenance and future value etc then it might make sense to buy it out.

You can even leverage it and tell the dealer I’ll surrender the car back to your dealer but I want $5k off a replacement and a better car etc.

It’s complicated but certainly not as simple as here’s what I paid. Here’s what it is now — the thieves!!!!

I lease most of my cars jets and yachts but it’s a complicated tax and LLC labyrinth hahaha!!!!!!!!!!
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Old 28 January 2023, 01:53 AM   #7
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I’m a GM at a large dealer group. People are definitely buying their leases out. In 29 years in this business I’ve never seen this before. The residual buyouts are far less than the cars are worth. Lease payments are so high no many people can’t afford to lease a new car.


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Old 28 January 2023, 01:55 AM   #8
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I lease most of my cars jets and yachts but it’s a complicated tax and LLC labyrinth hahaha!!!!!!!!!!
WHAT!!!!!!

You always said you owned all your stuff.!!!! And people.

I hope you're not heading into Poser-ville....... and I've been worshiping you all this time!!!

The Cult of Chewy could come crashing down.
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Old 28 January 2023, 01:59 AM   #9
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WHAT!!!!!!

You always said you owned all your stuff.!!!! And people.

I hope you're not heading into Poser-ville....... and I've been worshiping you all this time!!!

The Cult of Chewy could come crashing down.
I agree. Very disconcerting.
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Old 28 January 2023, 02:18 AM   #10
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I agree. Very disconcerting.
I am gutted by his fake flex.

The walls are crashing down.
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Old 28 January 2023, 02:19 AM   #11
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Quote:
Originally Posted by swils8610 View Post
I’m a GM at a large dealer group. People are definitely buying their leases out. In 29 years in this business I’ve never seen this before. The residual buyouts are far less than the cars are worth. Lease payments are so high no many people can’t afford to lease a new car.


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That helps to explain the aging fleet.
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Old 28 January 2023, 03:00 AM   #12
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WHAT!!!!!!

You always said you owned all your stuff.!!!! And people.

I hope you're not heading into Poser-ville....... and I've been worshiping you all this time!!!

The Cult of Chewy could come crashing down.
Plot twist, he's really Robert Kiyosaki


The car market is awful right now. Even if you don't intend on buying out the lease, I still wouldn't tell the dealer that. I'd see if I could get them to offer me a buyout first.
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Old 28 January 2023, 03:09 AM   #13
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i bought out a lease back in march 2021. financed it at 2.9%

there's no way i'd lease or finance anything in todays market. the numbers are ridiculous no matter what you do
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Old 28 January 2023, 03:21 AM   #14
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Quote:
Originally Posted by Blansky View Post
WHAT!!!!!!

You always said you owned all your stuff.!!!! And people.

I hope you're not heading into Poser-ville....... and I've been worshiping you all this time!!!

The Cult of Chewy could come crashing down.
I do. My LLCs are a part of me. People, too, if you will.
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Old 28 January 2023, 03:23 AM   #15
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I agree. Very disconcerting.
Quote:
Originally Posted by Maleg View Post
I am gutted by his fake flex.

The walls are crashing down.
Wat!!!!!!

How dare you question my bank!!!!!!!
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Old 28 January 2023, 03:36 AM   #16
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Wat!!!!!!

How dare you question my bank!!!!!!!
I’ll take care of this for you CJ…


REPORTED!!!!!



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Old 28 January 2023, 03:54 AM   #17
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We bought out my wife's leased Toyota last year for ~58% (3yr lease residual) of what comparable used cars were advertised for at the dealer. Prices were insane. I feel bad for anyone who paid new car prices for used cars.
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Old 28 January 2023, 03:59 AM   #18
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When our BMW lease ended, the residual value was about $10k less than they were selling for, so I bought it out, drove over to CarMax, and made $$$$$.
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Old 28 January 2023, 04:07 AM   #19
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When our BMW lease ended, the residual value was about $10k less than they were selling for, so I bought it out, drove over to CarMax, and made $$$$$.
that was the way to go if you don't need a car. if you do then you'd end up giving back that profit on the next lease
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Old 28 January 2023, 05:45 AM   #20
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Right now, market value vs. residual value makes it more attractive to buy out leases, especially when interest rates were >5%. Years ago, I leased a S4 Avant with a manual and naturally aspirated V8. They stopped bringing that car to the US, so I kept it. It's a unicorn car.
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Old 28 January 2023, 06:01 AM   #21
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3 people in my immediate family have exercised their lease buy out option in the past 6 months - Completely unprecedented.
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Old 28 January 2023, 06:15 AM   #22
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I’ll take care of this for you CJ…


REPORTED!!!!!



Buddies for life!
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Old 28 January 2023, 07:19 AM   #23
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Man I'm glad I gave up on leases when I bought our current 2 cars 6 years ago. Both are now paid off and hopefully don't have to worry about another car payment for 5-10 years.
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Old 28 January 2023, 08:45 AM   #24
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Years back, I and my wife had the same issue, she opted for a lease on a car we wanted. I’m glad we eventually didn’t go that route.
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Old 28 January 2023, 09:18 AM   #25
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They almost cant afford not to
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Old 28 January 2023, 02:28 PM   #26
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I haven't leased in decades but those who had leases end in 2021, 22 and even now are likely in a good position to buy it out if they like the vehicle. That was not often the case pre-covid and won't likely be the case for any lease started after 2021. The car companies clearly don't expect used prices to hold up for much longer and lease rates today reflect that plus higher interest rates and lighter initial prices.

See what the car is worth to carvana and others and it may even pay to buy it even if you don't keep it yourself. A the peak of this mess were in I knew people who bought at the end of the lease and had it already sold to carvana within days and pocketed several grand.

In May I sold my 2 year old truck with 16k miles for about what I paid new minus sales tax. It basically cost me $185/month for 24 months for a vehicle with a $65k sticker. I bought a similar one using my supplier discount a few weeks later.
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