Have you bought your car at the end of your lease period?
11-10-2010, 12:19 PM
#1
Rennlist Member
Thread Starter
Have you bought your car at the end of your lease period?
For a few reasons that seemed like a good idea at the time,
She is seriously considering buying the car at lease end, but we are both woefully ignorant in what we need to consider in making the decision.
I would think prime determinant is residual value and if it compares favorably with used car market? i realize that we probably paid more in the 1st 3 years to lease the car vs buy and make payments, but that money is gone anyway so is that a factor?
I still have PDK reliability questions, so would not do this without some type of CPO-like warranty.
Please comment on what else we should consider.
Thanks
Craig
- PDK reliability questions
- Tendency to buy another car every few years
She is seriously considering buying the car at lease end, but we are both woefully ignorant in what we need to consider in making the decision.
I would think prime determinant is residual value and if it compares favorably with used car market? i realize that we probably paid more in the 1st 3 years to lease the car vs buy and make payments, but that money is gone anyway so is that a factor?
I still have PDK reliability questions, so would not do this without some type of CPO-like warranty.
Please comment on what else we should consider.
Thanks
Craig
11-10-2010, 12:59 PM
#2
Three Wheelin'
What color is that car? - looks great. Are there more pics of your car somewhere?
I think you forget about the past - it is gone. Just look at the deal - is the buy price a good price for that car now; that's really what matters...that and do you want to keep it or get something else?
I think you forget about the past - it is gone. Just look at the deal - is the buy price a good price for that car now; that's really what matters...that and do you want to keep it or get something else?
11-10-2010, 01:29 PM
#4
Rennlist Member
Thread Starter
11-10-2010, 02:19 PM
#6
Three Wheelin'
That Nordic Gold looks great - esp on the cab with the black top.
11-10-2010, 03:50 PM
#7
Rennlist Member
As I understand the lease set-up, at the beginning they guesstimate what the car will be worth at the end of the lease period. That's the residual value. Sometimes it's high = lower lease payments; sometimes the residual value is low = higher lease payments.
If the residual is about what your car is worth in today's market (look at what cars are going for used, less 10-15% to guess actual sales prices), then buying might make sense. If the residual is above what the car would bring on the market, then say buh-bye, and get something else.
As you've already alluded to this in your OP, buying a car at the end of a lease, is not the most cost efficient way to acquire a car.
If the residual is about what your car is worth in today's market (look at what cars are going for used, less 10-15% to guess actual sales prices), then buying might make sense. If the residual is above what the car would bring on the market, then say buh-bye, and get something else.
As you've already alluded to this in your OP, buying a car at the end of a lease, is not the most cost efficient way to acquire a car.
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11-10-2010, 04:36 PM
#8
Addict
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Our dealer in Ohio had a Nordic gold TT pdk,had to sell to a Canadian would not move.I love it!
11-10-2010, 07:10 PM
#10
Residual was my undoing on the early Boxster I leased (2000); Porsche seemingly set the residuals falsely high (equating to low monthly payments for me...too good to be true...) I had leased/purchased other vehicles to my advantage in the past. I took great care of the cars and was able to sell for 10-20% more than it took to buy at lease end. I had the same plan for the Boxster, but the public buzz had waned about the car and I took about an $8000 bath. It took 10 months to sell the car and I lost the bucks. Do some research on current values to assess whether it makes sense to buy the car to keep or sell based on the market. I still lease cars regularly, but my decision to buy at lease end is only made after some time on the horn!
11-11-2010, 01:27 AM
#11
Nordschleife Master
i would say look at price versus the rest of whats out there, add in the fact you know the history of your vehicle and could probably negotiate the CPO for free if you buy the car back,
11-11-2010, 03:05 AM
#12
Good points. The fact that I knew the history of my car since day 1 as opposed to the mysteries of all the other used cars out there was a big factor.
11-11-2010, 01:27 PM
#14
Addict
Rennlist Member
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Can you elaborate on how to accomplish this? Lease buyout is through PFS, so are you saying you can negotiate with PFS to have it certified, or does it have to be bought out by a dealership and then certified? Just curious, as my lease is ending in March and I'm at a point where I could flip a coin to decide whether to keep it or move on.
11-11-2010, 01:47 PM
#15
Rennlist Member
Also, when comparing to used prices.... keep in mind that you know the history of the car and that is worth something as well. Only you can put a $ value on it.