Your not negotiating the lease buyout price. At the end of your lease/Fulfilling your lease the leasing company usually calls you to see if you are going to turn in the keys (then tell you to schedule an inspection) or if you would like to buy the car from them. If you choose to buy the car from them, they give you the residual value price. This price is typically negotiable and has been with other leasing companies, but theres no guarentee MMCA will negotiate with you on the price. Once you agree to buy the car at the agreed price you will then need to find another bank/institution to do a loan to buy it from MMCA. Of course the Lease buyout price is not negotiable because its contracted and you already agreed on it when you signed the lease.

 

So to the consumer wanting to purchase the car at the end of the lease, what's the difference between the "residual" and the "lease buyout price"?

 

Lease buyout price is the remaining balance on your lease to pay off in order to complete your lease agreement. Residual value/price is the value that the leasing company estimates for the vehicle after the lease is over (what they think the car will be worth). Once you complete the lease and you tell them you want to buy the car if the price is right, they will give you the residual value price (or value they think the car is worth). This is the point where you can typically negotiate with the leasing company just like you can negotiate the price of a used car with a dealership. Again, there is NO guarantee MMCA will negotiate with you, but many leasing companies do and you can certainly try.

 

got it, thanks. good to know

 

Don't you agree on the residual in the lease terms. Your lease payments are based on the agreed on residual to some extent. Is the lease company allowed to change the residual value?

 

good info, thanks.

 

larger, national banks may have lease purchase rates that are very good as well

after leases became regulated in the 2000's after the Jeep lease disasters, they have become really popular. On cars like Evos, Hondas, other things that retain value well, your buyout is frequently LOWER than the car's used value

I've leased lots of Honda's over the years, and it always works out to buy at the end then just turn around and sell it a week later, make $$

 

Anybody know if I want to get out of my lease early and sell my leased Evo in a private sale, if Mitsu slaps you with a fee or penalty?

Looking to get out of this thing and weighing my options.

 

FWIW, I attempted to do that and they denied me. I had a buyer meet at his credit union and he had the money ready to go, all we had to do was contact MMCA. They didn't allow it. I should have called ahead of time and made sure before finding a buyer. Live and learn I guess.

My next step was to get a loan, pay the car off, receive title, then finally sell it. Ended up just giving it to my brother and had him pay the monthly on it. Lease ends in May 2015. It was a lot easier for me.

 

I called and talked to them about this when asking about getting out early. If you're leased through MMC, they have the payoff price on your monthly invoice. If you want to sell, trade, or secure your own financing and purchase it at any time, there is no fee through MMC selling it to YOU (because you have to pay that leftover tax, you can't sell it to someone else). Of course at that point, you can turn around and sell it to someone else. The lady just said to call in advance and let them know what you're planning on doing.

 

This may be the reason why they didn't allow me to sell it. I waited last minute and I guess it really depends on who you talk to maybe.

 

Noize, I'm surprised you didn't reach out to me, but here is the easiest way to go about this. It seems there is no point in waiting until the end to buy it. Since you have the payoff, walk into your local Chase (or equivalent in TN) and see what they're used auto rates are. If they are acceptable, have them pay off your car and get the loan. Car is yours. (when you pay it off)

 

Hey Danny! I didn't even think of hitting you up on this. I am going to do something like that with a credit union, but probably wait till the end of the summer as childcare will be brutal till August. Thanks man.

 

Ah ok, so basically I would have to get a car loan to finance the outstanding payoff balance + the leftover tax? Then I can turn around and sell the car private party?

However, as long as MMC owns it on the lease, I *cannot* private party sell it?

Ugh, silly me for not looking into this more before I leased the gorilla.

 

Seth,I'm in the same boat... The babysitter for my son is $1600 per month and that includes no food or anything.....