# End of truck lease, buy or not?



## chandler48 (Jun 5, 2017)

I'd just have the lease holder stipulate in writing how much the "hidden" costs are and how much you will have to pony up to buy the truck. Seems like modest mileage and if you like it, then buying it may be a good move.


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## ZZZZZ (Oct 1, 2014)

You need to run the numbers.

How much is the truck currently worth (such as Blue Book).

How much are they asking to buy it after the lease, or how much would your payments be if you were to finance it?

How much would new lease payments be? 

Could you buy a brand new vehicle for the same payments?

How long do you plan to keep it?

On and on.

Search around the internet for calculators to help you make the comparisons.
.
.


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## de-nagorg (Feb 23, 2014)

It will come down to numbers.

You know the history of this one, so look at it as you were buying it used, which you are.

I bought a leased one 40 years ago , and there were no hidden costs. or extras added on. 

I also had the Cash in hand at that time. And I knew everything that had been done to it by me the only driver it ever had, and the maintenance, the mileage. 

It went on to serve me the next ten years faithfully, before it was used up. :crying:

As I said if the numbers are good, you can't beat the deal on one that is still young, but experienced, and you are happy with. 

That sounds like a significant other, but it's just a truck. :vs_smirk:

I would not hesitate at all, if you get the total cost in writing, and can afford it.


ED


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## MTN REMODEL LLC (Sep 11, 2010)

As everyone says above....and remember, you have a big advantage over other car buyers as you know its history and its use.


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## Nealtw (Jun 22, 2017)

Like anything else, be prepared to walk away from the deal and offer them less. If you turn it in it still costs them money to sell it, Moving it, safety check, auction, salesman, what ever, you want part of their savings. Go talk to one of their competitors and ask how you might understand how the deal should work.


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## de-nagorg (Feb 23, 2014)

I had another thought, if at all possible, do a TRUECAR, or CARFAX, search to see what a very similar truck is selling for in your area.

Then you have a better idea as to how much you can "deal" with the lease agent, on price. 

They should be willing to just hand it over, than add it back to their fleet for sale.


ED


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## Bud9051 (Nov 11, 2015)

When we took the lease I didn't have time to learn more about the process. Recent reading agrees with what you are telling me except about any negotiations. Apparently the price at end of lease is determined when signed, called the residual price and I have that number from the lease papers. If turned in they would try to hit me with extras, repairs, excess mileage and unknown, but I don't think any apply as it is in perfect shape. Just looking for any hidden extras they may add on.

I've tried some KBB but still a bit early to get final numbers. Lease signed July 8 2017 so half a year old. By July 2020 there could be some leftover inventory they (or another dealer) is interested in moving. If they are in high demand then the one I have would be a good deal.

I did find out that there is a major rebuild coming out on the Frontier and i'll have to dig more to see how that will affect older models.

I'll get all of the details together and post them, but buying a vehicle that I'm familiar with feels comfortable and at 6,000 miles per year this one could outlast me.

Bud


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## Nealtw (Jun 22, 2017)

You get hit with all the extras if you turn it in. There should be non of that if you are buying. There is usually some third party that owns the truck, sometimes you can deal directly with them. A friend did that, still turned in his car but had paper work to take delivery right from where he had parked it.


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## Bud9051 (Nov 11, 2015)

Nealtw said:


> You get hit with all the extras if you turn it in. There should be non of that if you are buying. There is usually some third party that owns the truck, sometimes you can deal directly with them. A friend did that, still turned in his car but had paper work to take delivery right from where he had parked it.


That is one of the things I'm looking for and wondering which approach is best for continuing the dealer warranty. From what I've seen they are saying the buy out is set in stone and no negotiations. Of course when you buy a vehicle they come back with the absolute final price several times. They do have a credibility issue and I'll remind them.

Bud


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## Nealtw (Jun 22, 2017)

Bud9051 said:


> That is one of the things I'm looking for and wondering which approach is best for continuing the dealer warranty. From what I've seen they are saying the buy out is set in stone and no negotiations. Of course when you buy a vehicle they come back with the absolute final price several times. They do have a credibility issue and I'll remind them.
> 
> Bud


 In 77 my BIL was selling cars at a dealership, the lease returns went on their lot as a commissioned sale and when the used lot was full, they would tell the owner to remove it and some times they would just say to sell it at cost.
I bought a 75 chevy wagon for $1300, the blue book on it was over $3000.
I had it for 2 years and sold it for $2000. 

Do a search on the truck and find out who owns it and try to cut the dealer out of the deal.


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## Nealtw (Jun 22, 2017)

Bud9051 said:


> That is one of the things I'm looking for and wondering which approach is best for continuing the dealer warranty. From what I've seen they are saying the buy out is set in stone and no negotiations. Of course when you buy a vehicle they come back with the absolute final price several times. They do have a credibility issue and I'll remind them.
> 
> Bud


https://www.ifsautoloans.com/blog/4-steps-to-buy-your-leased-car/


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## lenaitch (Feb 10, 2014)

I have never leased but heard from many folks that dealers can often try to nickle and dime you on 'turn in condition', so they won't take the position that it is in "perfect condition".


I had a 2008 Frontier until this summer and it was a great truck. I was willing to buy another but they are essentially unchanged since 2005 and I felt they were getting pretty dated. They do okay but aren't huge sellers for Nissan. The 'refresh' has been pushed back a couple of time and I think now it is 2021 but not sure. The refresh is essentially a North Americanized version of their Navara which has been available outside of North America for years, similar to the new Ford Ranger.
They're solid trucks. In 11 years I had to replace a rad and, strangely, a rear end.


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## de-nagorg (Feb 23, 2014)

Bud9051 said:


> That is one of the things I'm looking for and wondering which approach is best for continuing the dealer warranty. From what I've seen they are saying the buy out is set in stone and no negotiations. Of course when you buy a vehicle they come back with the absolute final price several times. They do have a credibility issue and I'll remind them.
> 
> Bud


You are correct, they state that they have a final price.

But they really have 3 prices, their asking price, their final price, and their " we gotta sell this" price. 

You want the " we gotta sell it" price. 

It's a shell game with car sales, they don't want one sitting for too long, because eventually it sits too long and they lose everything on it. 

I forgot, there is also an Employee price, I know a guy that worked in the service department, and his family bought a dozen or more on his Employee price. His brother, His Mother, His kids, etc.


ED


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## Old Thomas (Nov 28, 2019)

The only reliable information is in your contract. My advice is to read it, then you will probably know more than the people you are dealing with.


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## DoomsDave (Dec 6, 2018)

Generally, when confronted with leases, I have run screaming, full throated lungtop. The reason is that the deal is a financing arrangement set up to favor the sellers. 

A while back, in the throes of pomposity, I considered leasing one of those cool cars for a cheap monthly payment. The HUGE problem right off the bat was the low yearly limit on miles combined with a high "penalty" for excess miles. 

Another huge problem is that you'll be required to keep "comprehensive" insurance, designed to protect the party of the first part, not you. 

Didn't even get to the dealers, just ran screaming around the house. 

BUT there are good reasons to lease.

They greatly simplify tax and other bookkeeping. And, if you can stay in the limits mileage wise, they can be cheap, though the insurance can still get costly. 

And, if someone else is paying the bill . . . great! A friend in the palm society is an executive, and leased cars, paid for by the boss are part of his comp package. Such a deal! 

Feeling a thread coming on . . . .


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## DoomsDave (Dec 6, 2018)

Old Thomas said:


> The only reliable information is in your contract. My advice is to read it, then you will probably know more than the people you are dealing with.


Get yourself a pair of those off-the-shelf reading glasses or a big magnifier if you need one! :biggrin2:


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## Bud9051 (Nov 11, 2015)

Here are some of the numbers I had promised.
Current question is, how much does the "agreed upon value of the vehicle" play into the monthly lease payment and residual value?
In short, there were no negotiations involving the selling price of the vehicle as we were not buying so how did they come up with an "agreed upon value" and how did that play into the final monthly cost as well as the residual value?

I happen to have the dealer window sticker: $31,870.
I'm working on the lease numbers as it is difficult to see what adds up to what.
Note, as in purchasing a vehicle one should (and we didn't) review and negotiate all of those numbers. Coming.

Bud


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## DoomsDave (Dec 6, 2018)

Bud9051 said:


> Here are some of the numbers I had promised.
> Current question is, how much does the "agreed upon value of the vehicle" play into the monthly lease payment and residual value?
> In short, there were no negotiations involving the selling price of the vehicle as we were not buying so how did they come up with an "agreed upon value" and how did that play into the final monthly cost as well as the residual value?
> 
> ...


Let us know what you decide and why.

Every second is a teaching moment.


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## Bud9051 (Nov 11, 2015)

Agreed upon value: $30,030.00
Up front sales tax: $783.01
Title, License, and Registration: $35.00
Acquisition fee: $595.00
Doc Fee: $399.00
Total Gross Capitalized Cost: $31,842.01
It adds up correctly

Then the gross capitalized cost is reduced by cash up front: $2,500
For an adjusted capitalized cost of: $29,342.01

Then they list the residual value of the vehicle at end of lease: $21,671.60
Subtract that from the adjusted capitalized cost =: $7670.41
Add to that a rent charge =: $4929.23
Gives me the total of my 36 month lease =: $12,599.64
Or $349.99 per month.

I'll post these for comments and I'm still trying to digest them.

Bud

PS, lease ends end of June next year so no decision will be made soon.


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## ZTMAN (Feb 19, 2015)

Your residual value is $21,671.60, so that is what you can purchase the truck for in June. Your lease contract will stipulate any additional fees you have to pay.

What is the truck worth today? You could buy it today for the residual value plus the total of the remaining payments, (6x $349.99= $2,099.94) My guess is the current Blue Book would be way below $23,771.54 .


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## ZTMAN (Feb 19, 2015)

Your residual value is $21,671.60, so that is what you can purchase the truck for in June. Your lease contract will stipulate any additional fees you have to pay.

What is the truck worth today? You could buy it today for the residual value plus the total of the remaining payments, (6x $349.99= $2,099.94) My guess is the current Blue Book would be way below $23,771.54 .


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## Bud9051 (Nov 11, 2015)

One of the issues of using the blue book is, what price do you use?

I found a good web *site* that explains some of the language. One thing they emphasize is to negotiate the selling price BEFORE you get into a lease discussion. We didn't know and we never got into discussing a purchase price and from what I'm seeing they charged us close to MSRP or at least closer than I would ever agree to pay. 

My position with the dealership where I leased it will be, they did not treat this old couple fairly, especially since we are established sales and service customers for over 30 years. Our history with that dealership was right there on the screen for her to see and she (I believe) took advantage of us. If I can clearly make that point I will expect them to compensate if we choose to buy at end of lease. 

Current social media can be tough on any business that takes advantage of older customers and I hope I don't have to remind them of that.

Bud


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## ZTMAN (Feb 19, 2015)

I did not want to point out that you paid almost MSRP for a Nissan. IMO the dealer did bend you over unless you told them what you were looking to pay monthly, and they backed you into a lease.
In any event look at the KBB retail and private party values. I would also look at Auto Trader and limit the search to you year and model and see what is on dealer lots and for what price.. That will give you a good idea of price.
If you buy a new vehicle, do your research and see what others are paying .Car forums for the model you are looking at are a good resource.


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## Bud9051 (Nov 11, 2015)

The part that I (we) missed was the need to negotiate the sale price. I'm well aware of how to shop and deal for a new car purchase but here we got an expensive lesson on how to lease.

But car dealerships have a real problem as they are well known for lying to their customers, part of the sales dance. In our age of social media those lies can go public and ultimately cost them a bundle.

In my case I'm old, hearing impaired, and I have an established history of being a good customer so would hope they would treat me fairly, as they should all seniors, heck all customers. Once I unravel the numbers to know just how badly they treated me I will see if they are interested in correcting their mistake.

If I end up buying something else I will be sure to let the owners know why.

Bud


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## Nealtw (Jun 22, 2017)

Bud9051 said:


> The part that I (we) missed was the need to negotiate the sale price. I'm well aware of how to shop and deal for a new car purchase but here we got an expensive lesson on how to lease.
> 
> But car dealerships have a real problem as they are well known for lying to their customers, part of the sales dance. In our age of social media those lies can go public and ultimately cost them a bundle.
> 
> ...


Just consider the price on the contract as the *as advertised price*, negotiate from their.


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## de-nagorg (Feb 23, 2014)

There are at least two websites that specialize in telling you what a vehicle is selling for in your area. 

You will probably pay a fee for this, but I think that it is worth it. 

I did just that and scored a deal on one 250 miles away.

I saved $ 5,000.00 , just driving the 250 miles, and a day trip. 


Tru-car, and Auto trader? Seem to "ring a bell", in my brain as the names, but a web search might give you the right ones. 

After you get to the sight just enter the make / model / year / mileage.

To get told what you should pay for a comparable one.

Print the report, and use it as a lever to get your truck at a reasonable cost, if they want to sell it to you.

Be prepared to walk, and tell them where to go.:devil3:

ED


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## CPAMAN (Dec 10, 2011)

So many factors come into play. I have never leased but lease payments are less than car payments. At three years old you may be coming up to some maintenance and new tires on your present truck. A new truck could have substantial improvements over the old model. If you keep your present truck and have to make payments on it how many months will you have to make payments? If more than 3 years, you could have had a brand new truck and no repair costs. How old are you? Some folks lease because they may not be driving in the next few years so they want something that can be turned in easily. 
By the time your truck is six years old, you may have spent a couple thousand on repairs. You would not have that in a leased truck.


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