when lease ends...is the residual price set in stone? how do u go about bring price down?
07-21-2002, 08:31 PM
#4
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Your residual is likely cut into stone...
on mass produced cars that are not nearly as desirable, the leasing company will come back to the original lessor with a lower buyout in hopes they will purchase the vehicle. For instance, if you leased an Isuzu Rodeo and the buyout was 15k, you could turn that down and the financing co. will likely come back with a counteroffer of perhaps 11k (i know this has happened for a fact with this model.) The used market is soft, there are many copies.
With highly desirable cars, the financing co knows the car is quite valuable, so if the car is clean and low mileage, an A4 can sell easily, thus they have no incentive.
Now your dealership can buy the car for a price lower than your buyout, you may want to talk to them and see if you can perhaps split the difference; they buy the car, you buy from them. The problem here is the dealer will have to pay sales tax on the purchase, which can negate a significant portion of that difference. If the spread is 1500 and the dealer has to pay 1k sales tax...not much worth going through the hassle.
Cheers,
Sameer
With highly desirable cars, the financing co knows the car is quite valuable, so if the car is clean and low mileage, an A4 can sell easily, thus they have no incentive.
Now your dealership can buy the car for a price lower than your buyout, you may want to talk to them and see if you can perhaps split the difference; they buy the car, you buy from them. The problem here is the dealer will have to pay sales tax on the purchase, which can negate a significant portion of that difference. If the spread is 1500 and the dealer has to pay 1k sales tax...not much worth going through the hassle.
Cheers,
Sameer
07-21-2002, 10:47 PM
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Yes, residual is set, however it can be negotiated
There is a glut of lease returns in the market, so a lot of makers (I don't know about Audi) will "deal" in order to get you to buy it out.
There was an article in the WSJ about just that a while back - I'd recommend looking it up.
Anything can be negotiated, but it's just a matter of whether they'll play along.
Good luck.
There was an article in the WSJ about just that a while back - I'd recommend looking it up.
Anything can be negotiated, but it's just a matter of whether they'll play along.
Good luck.
07-22-2002, 04:02 AM
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Word here has been that AoA has been holding the line on residuals.
It can't hurt to ask though. I've heard that sometimes they will waive the last few lease payments.
If you've leased through another leasing company, they may negotiate on the residual. It's been done before. Once again, it can't hurt to ask.
If you've leased through another leasing company, they may negotiate on the residual. It's been done before. Once again, it can't hurt to ask.
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