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Discussion Starter #1
FYI
I was researching when and if you should buy your leased car and according to Matt Jones, a senior consumer advice editor at Edmunds.com, a "leased electric vehicle often have reduced buyout prices because of low resale values". It might be worth looking into if anyone is near the end of their lease. The whole article can be seen here:
 

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FYI
I was researching when and if you should buy your leased car and according to Matt Jones, a senior consumer advice editor at Edmunds.com, a "leased electric vehicle often have reduced buyout prices because of low resale values". It might be worth looking into if anyone is near the end of their lease. The whole article can be seen here:
Yes, No, Maybe. Whatever the "resale value" is at the end of the lease has a random and unpredictable effect on what the customer will have to pay to buy back his leased car. Buying a vehicle at the end of the lease is a very murky proposition. Sometimes, the residual stated in the lease contract is considerably higher than the current book price and the leasing company won't negotiate at all; whatever was in the contract is what has to be paid. Then, when the customer declines, usually the car goes through auction, sells for considerably less than what they were holding the customer to, then goes on the internet resale market again for less than the residual.

Part of the problem is sometimes it's impossible to actually speak with the company holding the lease. Leases have become commodities and are bundled and resold on the secondary market. Sometimes, even though the lessee thought he got it through his local dealer, the paper ended up being held by a Chinese investment company. It's just too much hassle to unbundle and renegotiate a single residual. Easier for them to just process line items as they mature.

Occasionally, when the customer wants the car, the leasing company still is carrying the paper and will negotiate down to book price, but that's not common.. I know of one BMW i3 lessee who was able to buy his car for book value, several thousand less than the residual.

jack vines
 

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This has come up before here and I'm very skeptical of anyone negotiating a lease price down, and yes it's happened before. I also read on the forum of the BMW i3. The 'industry' enjoys huge tax shelters in the process which on the back end helps make the whole process quite lucrative. It's all part of the 'machine' at work and it's very complex.
 

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This has come up before here and I'm very skeptical of anyone negotiating a lease price down, and yes it's happened before. I also read on the forum of the BMW i3. The 'industry' enjoys huge tax shelters in the process which on the back end helps make the whole process quite lucrative. It's all part of the 'machine' at work and it's very complex.
My point exactly. The "industry expert" should know resale value/blue blook value at the time the lease is over often has little-to-nothing to do with the lessees ability to pay that amount at that time.

jack vims
 
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