ROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEX
28 January 2023, 12:38 AM | #1 |
"TRF" Member
Join Date: Jul 2010
Location: USA
Watch: Good ones
Posts: 8,108
|
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?
|
28 January 2023, 12:44 AM | #2 |
TRF Moderator & 2024 Patron
Join Date: May 2007
Real Name: Larry
Location: Mojave Desert
Watch: GMT's
Posts: 42,989
|
People are hanging onto their cars longer.
__________________
(Chill ... It's just a watch Forum.....) NAWCC Member |
28 January 2023, 12:45 AM | #3 |
2024 Pledge Member
Join Date: Jan 2018
Location: Florida
Watch: Sub, DJ41, GMT
Posts: 6,869
|
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. |
28 January 2023, 12:52 AM | #4 |
2024 Pledge Member
Join Date: Jul 2013
Real Name: Brian (TBone)
Location: canada
Watch: es make me smile
Posts: 73,091
|
This
https://www.spglobal.com/mobility/en...122-years.html The average age of a vehicle in America is 12.2 years. |
28 January 2023, 12:54 AM | #5 | |
2024 Pledge Member
Join Date: May 2011
Real Name: Daniel
Location: Minneapolis, MN
Watch: Wilsdorf(s)
Posts: 10,174
|
Quote:
It's worth more than the buyout with one year of warranty left. Will likely extend it and run it past 100K miles.
__________________
Explorer 214270 MK I/Datejust II Black 116300/Tudor Heritage Black Bay Black 79220N |
|
28 January 2023, 01:47 AM | #6 |
Banned
Join Date: May 2012
Real Name: CJ
Location: Kashyyyk
Watch: Kessel Run Chrono
Posts: 21,113
|
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!!!!!!!!!! |
28 January 2023, 01:53 AM | #7 |
2024 Pledge Member
Join Date: Sep 2012
Real Name: shannon
Location: usa
Posts: 8,987
|
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.
Sent from my iPhone using Tapatalk Pro |
28 January 2023, 01:55 AM | #8 | |
2024 Pledge Member
Join Date: Feb 2013
Location: swmnpoolsmovie*
Posts: 9,031
|
Quote:
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.
__________________
OlllllllO |
|
28 January 2023, 01:59 AM | #9 |
"TRF" Member
Join Date: Nov 2018
Location: Europe
Posts: 3,199
|
|
28 January 2023, 02:18 AM | #10 |
"TRF" Member
Join Date: Dec 2022
Real Name: G
Location: Illinois
Watch: 5513
Posts: 1,055
|
|
28 January 2023, 02:19 AM | #11 | |
2024 Pledge Member
Join Date: Jul 2013
Real Name: Brian (TBone)
Location: canada
Watch: es make me smile
Posts: 73,091
|
Quote:
|
|
28 January 2023, 03:00 AM | #12 | |
"TRF" Member
Join Date: Jun 2020
Location: michigan
Posts: 2,280
|
Quote:
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. |
|
28 January 2023, 03:09 AM | #13 |
2024 Pledge Member
Join Date: Oct 2017
Location: nyc
Posts: 6,285
|
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 |
28 January 2023, 03:21 AM | #14 |
Banned
Join Date: May 2012
Real Name: CJ
Location: Kashyyyk
Watch: Kessel Run Chrono
Posts: 21,113
|
I do. My LLCs are a part of me. People, too, if you will.
|
28 January 2023, 03:23 AM | #15 |
Banned
Join Date: May 2012
Real Name: CJ
Location: Kashyyyk
Watch: Kessel Run Chrono
Posts: 21,113
|
|
28 January 2023, 03:36 AM | #16 |
Banned
Join Date: Jul 2008
Real Name: Paul
Location: San Diego
Watch: 126619LB
Posts: 21,541
|
|
28 January 2023, 03:54 AM | #17 |
"TRF" Member
Join Date: Oct 2007
Real Name: Bill
Location: East Bay RI
Watch: GMT-II 16710LN
Posts: 11,878
|
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.
__________________
I bought a cheap watch from the crazy man Floating down canal It doesn't use numbers or moving hands It always just says "now" Now you may be thinking that I was had But this watch is never wrong And if I have trouble the warranty said Breathe In, Breathe Out, Move On J. Buffett Instagram: eastbayrider46 |
28 January 2023, 03:59 AM | #18 |
"TRF" Member
Join Date: Feb 2012
Location: Rocky Mountains
Posts: 216
|
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 $$$$$.
|
28 January 2023, 04:07 AM | #19 |
2024 Pledge Member
Join Date: Oct 2017
Location: nyc
Posts: 6,285
|
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
|
28 January 2023, 05:45 AM | #20 |
"TRF" Member
Join Date: Dec 2021
Location: US
Posts: 68
|
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.
|
28 January 2023, 06:01 AM | #21 |
2024 Pledge Member
Join Date: Jun 2015
Real Name: Carlos
Location: NNJ - MDE
Watch: Rolex & Omega
Posts: 3,321
|
3 people in my immediate family have exercised their lease buy out option in the past 6 months - Completely unprecedented.
__________________
16570, 224270, 126610, 126334 |
28 January 2023, 06:15 AM | #22 |
Banned
Join Date: May 2012
Real Name: CJ
Location: Kashyyyk
Watch: Kessel Run Chrono
Posts: 21,113
|
|
28 January 2023, 07:19 AM | #23 |
2024 Pledge Member
Join Date: May 2013
Real Name: Matt
Location: Tampa, FL
Watch: Hulk/SD4K/SeaQ/P39
Posts: 3,166
|
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.
__________________
Why is it, "A penny for your thoughts," but, "you have to put your two cents in?" Somebody's making a penny. |
28 January 2023, 08:45 AM | #24 |
Banned
Join Date: Aug 2021
Location: USA
Posts: 72
|
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.
|
28 January 2023, 09:18 AM | #25 |
2024 Pledge Member
Join Date: Sep 2013
Real Name: Danny
Location: Bay Area CA
Watch: Yellow Gold
Posts: 20,138
|
They almost cant afford not to
|
28 January 2023, 02:28 PM | #26 |
"TRF" Member
Join Date: Jul 2016
Location: Michigan
Posts: 4,527
|
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. |
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests) | |
Thread Tools | |
Display Modes | |
|
|
*Banners
Of The Month*
This space is provided to horological resources.