Buying your Air at lease-end

[JGard18]

A few months ago I saw a few posts on Reddit where owners were successfully able to negotiate a buy-out price at the end of their lease to be more in line with market value of the vehicle, rather than the residual amount. The gap was usually significant, around $10-12k, from what was reported. Have there been any recent instances where folks have had similar success? My job just threw me a curveball where I'm going to be required to commute in office full time, and it's 37 miles each way, so I'm going to absolutely blow by my lease mileage allowance. If I can buy the car out for market value at the end of the lease, then great, no harm no foul. But there's still a part of me concerned that they won't negotiate. Just looking for confirmation to help ease my fears. Otherwise I may find myself buying a secondary used vehicle to be used as a commuter-only.

 

[skomarla]

Yes I know of one that got savings in that range on a 2024 Pure AWD. I believe he called Bank of America and negotiated directly.

 

[translux]

Yes I was able to buy my car at the end of my lease in early April for a negotiated price. All I had to do was ask. I was in the same position with mileage.
Couple points-
1. You either need to pay cash or have 3rd party financing lined up.
2. The negotiated price included sales tax. This was not initially disclosed and was never able to be documented and could only be itemized verbally. This may be unique to my state of IL idk.
3. I had a 30 day grace period from my end of lease date to work all this out. Tell them in advance if this is your plan.
4. 1 week into the grace period I was contacted and interrogated by 3rd party collections looking for the original balance in full. Tell them you were given 30 days grace period to purchase the car. Contact Lucid financial directly and let them know your plans again and that you were contacted by collections. I found that the only way you’re not rerouted to the collection company is by not entering any personal info when asked by the automated system.
4. Make sure you cancel future payments or they will continue to charge you.

 

[JGard18]

Yes I was able to buy my car at the end of my lease in early April for a negotiated price. All I had to do was ask. I was in the same position with mileage.
Couple points-
1. You either need to pay cash or have 3rd party financing lined up.
2. The negotiated price included sales tax. This was not initially disclosed and was never able to be documented and could only be itemized verbally. This may be unique to my state of IL idk.
3. I had a 30 day grace period from my end of lease date to work all this out. Tell them in advance if this is your plan.
4. 1 week into the grace period I was contacted and interrogated by 3rd party collections looking for the original balance in full. Tell them you were given 30 days grace period to purchase the car. Contact Lucid financial directly and let them know your plans again and that you were contacted by collections. I found that the only way you’re not rerouted to the collection company is by not entering any personal info when asked by the automated system.
4. Make sure you cancel future payments or they will continue to charge you.

Thanks! So did you contact them before or just at your end of lease date? I was thinking I'd reach out a month or so before the lease actually expired to try to get the buy-out price set and get those wheels in motion.

 

[joec]

Another thing to consider, if you can't get a good price for the buyout, is searching Lucid's pre-owned cars. I've found some pretty decent deals on cars that were better than what my residual would be at the end of my lease.

 

[joec]

Of course, that doesn't help you if you have mileage overages.

 

[JGard18]

At the pace I'm going, I could have about 60k miles on this bad-boy by next October. ...carry the 0 and we're looking at close to $8k in mileage penalties. So if I could get a decent offer to just buy it out (around $38k for a Touring) in Oct, I'd take that in a heartbeat.

 

[Macrocosmcwh]

So... I am in the car biz. Specifically in the finance department in a car dealership. 30 years in fact. So I will gladly be the expert in the room on this.

Consider this... I purchased my GT for 53000.00. Its original MSRP was approximately 160,000.00 so in four years it went down 67%. Keep in mind my GT was HARD LOADED AND HAD 6000 MILES WHEN I PURCHASED IT. If I purchased it for 53000.00 I am pretty safe to say that the trade-in (wholesale value=ACTUAL CASH VALUE) would be around 48-49000.00. I later confirmed this with Carvana. So that makes the ACV 30%. The Air has dropped in value 70% with 6000 miles on the car no accidents. So that puts a per year depreciation at 17.5%. So consider your value carefully. BEFORE you buy out your own lease, find out what Carvana or the like would give you to PURCHASE IT FROM YOU DIRECTLY. DO NOT TELL CARVANA THAT YOU OWE ANYTHING ON THE CAR... Just the vin description and miles. THEN determine what your buyout INCLUDING FEES AND TAXES WOULD BE.

In MOST cases it is better to purchase another one than purchasing the lease out. Leasing companies use ALG (automotive lease guide) to determine the residual then the manufacture will subsidize that dollar amount to control the payment. I am happy to talk with you further about it if you want. Send me a message I will gladly give you my cell phone number.

 

[JGard18]

So... I am in the car biz. Specifically in the finance department in a car dealership. 30 years in fact. So I will gladly be the expert in the room on this.

Consider this... I purchased my GT for 53000.00. Its original MSRP was approximately 160,000.00 so in four years it went down 67%. Keep in mind my GT was HARD LOADED AND HAD 6000 MILES WHEN I PURCHASED IT. If I purchased it for 53000.00 I am pretty safe to say that the trade-in (wholesale value=ACTUAL CASH VALUE) would be around 48-49000.00. I later confirmed this with Carvana. So that makes the ACV 30%. The Air has dropped in value 70% with 6000 miles on the car no accidents. So that puts a per year depreciation at 17.5%. So consider your value carefully. BEFORE you buy out your own lease, find out what Carvana or the like would give you to PURCHASE IT FROM YOU DIRECTLY. DO NOT TELL CARVANA THAT YOU OWE ANYTHING ON THE CAR... Just the vin description and miles. THEN determine what your buyout INCLUDING FEES AND TAXES WOULD BE.

In MOST cases it is better to purchase another one than purchasing the lease out. Leasing companies use ALG (automotive lease guide) to determine the residual then the manufacture will subsidize that dollar amount to control the payment. I am happy to talk with you further about it if you want. Send me a message I will gladly give you my cell phone number.

Thanks for your feedback, I appreciate it from another perspective. My thought is this, my Air's MSRP was $92k. After all the discounts, the "sale" price was about $75k, so I'm paying $820/mo for 36 months, and the residual is $49k. Based on my mileage and some of the wear & tear, I fully expect a bill of nearly $10k if/when I turn in the car at lease-end. My thought was more like, if they offer me $38k, but the car is "worth" only like $35k, I'm still kind of ahead, because I don't have to pay the mile overage fees. I could drive the car for another 2 years or so and likely at least break even when I trade it for something new.

Alternatively, I go buy like a 5 year old Miata, rack up 20k miles per year on it, and then sell it for like $10k less than I paid after 5 years.

 

[Macrocosmcwh]

Thanks for your feedback, I appreciate it from another perspective. My thought is this, my Air's MSRP was $92k. After all the discounts, the "sale" price was about $75k, so I'm paying $820/mo for 36 months, and the residual is $49k. Based on my mileage and some of the wear & tear, I fully expect a bill of nearly $10k if/when I turn in the car at lease-end. My thought was more like, if they offer me $38k, but the car is "worth" only like $35k, I'm still kind of ahead, because I don't have to pay the mile overage fees. I could drive the car for another 2 years or so and likely at least break even when I trade it for something new.

Alternatively, I go buy like a 5 year old Miata, rack up 20k miles per year on it, and then sell it for like $10k less than I paid after 5 years.

May I ask... how much total cash did you put down when you did your deal? Calculate 820X35 payment +cash + 38,000.00+ your TAX on the 38000.00 to give you what you are paying in full for this car. Now in my experience if your residual is 49000 or 53% THE MOST they would discount to convince you to purchase is mid to lower 40's. AT BEST. Remember, BofA has insurance to cover any losses taken by wholesale and they can still come for their 10K (legally however usually they will forgive 5000 of damage) miles are another thing and dispo fee will be collected...

Just do your own math... Determine the total you are paying for the car. Ask yourself IF YOU WERE BUYING THIS NEW FROM THE BEGINING FOR THIS AMOUNT.... WOULD YOU DO IT?"

Lastly, remember... NONE OF THIS WILL EVER MAKE SENSE.... I mean buying a car is DUMB for us all. If we were all SMART we would ALL BE DRIVING 1986 HONDA CIVICS. That we put 250 a year into keeping it running. THAT is the only SMART car purchase.

I am just saying be mindful of OWNING a depreciating asset.

 

[JGard18]

I put $0 down, which helps. But yes, I'm trying to make logic of something totally illogical here I feel like the answer is Miata. It's always the answer. Although I really don't want to go back to a gas car, either.

 

[Macrocosmcwh]

I put $0 down, which helps. But yes, I'm trying to make logic of something totally illogical here I feel like the answer is Miata. It's always the answer. Although I really don't want to go back to a gas car, either.

something does not add up.... 0 down? no trade no fees nothing? no 7500 tax rebate??? nothing?

 

[JGard18]

something does not add up.... 0 down? no trade no fees nothing? no 7500 tax rebate??? nothing?

I may have paid $1000 in fees or whatever, but yeah, the discounts were all stacked things, $7500 air credit, $5000 on-site credit, etc. They were throwing tons of discounts at these things at the time

 

[Macrocosmcwh]

I may have paid $1000 in fees or whatever, but yeah, the discounts were all stacked things, $7500 air credit, $5000 on-site credit, etc. They were throwing tons of discounts at these things at the time

If you PRIVATELY want to send me a copy of your lease contract I will gladly help you any way I can.

 

[socktucker]

So... I am in the car biz. Specifically in the finance department in a car dealership. 30 years in fact. So I will gladly be the expert in the room on this.

Consider this... I purchased my GT for 53000.00. Its original MSRP was approximately 160,000.00 so in four years it went down 67%. Keep in mind my GT was HARD LOADED AND HAD 6000 MILES WHEN I PURCHASED IT. If I purchased it for 53000.00 I am pretty safe to say that the trade-in (wholesale value=ACTUAL CASH VALUE) would be around 48-49000.00. I later confirmed this with Carvana. So that makes the ACV 30%. The Air has dropped in value 70% with 6000 miles on the car no accidents. So that puts a per year depreciation at 17.5%. So consider your value carefully. BEFORE you buy out your own lease, find out what Carvana or the like would give you to PURCHASE IT FROM YOU DIRECTLY. DO NOT TELL CARVANA THAT YOU OWE ANYTHING ON THE CAR... Just the vin description and miles. THEN determine what your buyout INCLUDING FEES AND TAXES WOULD BE.

In MOST cases it is better to purchase another one than purchasing the lease out. Leasing companies use ALG (automotive lease guide) to determine the residual then the manufacture will subsidize that dollar amount to control the payment. I am happy to talk with you further about it if you want. Send me a message I will gladly give you my cell phone number.

Listen to this guy!

Finance guys wouldn’t make 6 figures if it was easy. Lots of tricks.

 

[Macrocosmcwh]

Listen to this guy!

Finance guys wouldn’t make 6 figures if it was easy. Lots of tricks.

hahahaha.... I was a cello performance major in college with a minor in composition. HAHAHA.... I am first a nerd... secondly a car guy.... =) I did buy a warranty for mine so I am not stupid! haha But thank you for the upvote!

 

[Lycra]

May I ask... how much total cash did you put down when you did your deal? Calculate 820X35 payment +cash + 38,000.00+ your TAX on the 38000.00 to give you what you are paying in full for this car. Now in my experience if your residual is 49000 or 53% THE MOST they would discount to convince you to purchase is mid to lower 40's. AT BEST. Remember, BofA has insurance to cover any losses taken by wholesale and they can still come for their 10K (legally however usually they will forgive 5000 of damage) miles are another thing and dispo fee will be collected...

Just do your own math... Determine the total you are paying for the car. Ask yourself IF YOU WERE BUYING THIS NEW FROM THE BEGINING FOR THIS AMOUNT.... WOULD YOU DO IT?"

Lastly, remember... NONE OF THIS WILL EVER MAKE SENSE.... I mean buying a car is DUMB for us all. If we were all SMART we would ALL BE DRIVING 1986 HONDA CIVICS. That we put 250 a year into keeping it running. THAT is the only SMART car purchase.

I am just saying be mindful of OWNING a depreciating asset.

So you always lease your cars?

 

[Macrocosmcwh]

So you always lease your cars?

Almost always.... Now... recently due to my commute (I drive an hour each way) and also due to my wife and I getting on a path to pay everything in our lives off... My wife and I own our cars now.

But normally always recommend that people lease.

 

[Lycra]

OK. We unfortunately bought our current evs..
2 x id4
2x eqa 250+
2x Audi etron 55 sportback..

But next should be leased because I lost 70k in four years on my etron which I planned to get rid of and buy the gravity gt. Leasing with lucid is crazy expensive in Germany

 

[translux]

Thanks! So did you contact them before or just at your end of lease date? I was thinking I'd reach out a month or so before the lease actually expired to try to get the buy-out price set and get those wheels in motion.

Yes roughly a month in advance. Given the rate of depreciation for the AIR I think you’ll easily buy below your target price.