End of Lease Experience

[manitou202]

I have about 6 months remaining on my Air Touring lease. I'll potentially be leasing/buying a Gravity, however without all of the Gravity details out yet, I'm considering keeping my Air Touring instead. I absolutely love this car and it will be really hard to let it go.

I'm curious if Lucid will offer a lower purchase price at the end of my lease. My original touring MSRP was around $118k but can now be purchased for around $90k. Obviously the original lease buyout price will be well above the market, so I'm wondering if Lucid will offer something much more competitive.

Has anyone had experience with buying their Lucid at the end of the lease? Not sure if many people have gotten to that point with their lease yet.

Thanks!

 

[segbrk]

I don't think anyone has turned in a lease yet. The tempting 18 month lease offers didn't start until summer 2023, so I think the first lease turn ins will be this winter.

 

[Batteryman]

I have about 6 months remaining on my Air Touring lease. I'll potentially be leasing/buying a Gravity, however without all of the Gravity details out yet, I'm considering keeping my Air Touring instead. I absolutely love this car and it will be really hard to let it go.

I'm curious if Lucid will offer a lower purchase price at the end of my lease. My original touring MSRP was around $118k but can now be purchased for around $90k. Obviously the original lease buyout price will be well above the market, so I'm wondering if Lucid will offer something much more competitive.

Has anyone had experience with buying their Lucid at the end of the lease? Not sure if many people have gotten to that point with their lease yet.

Thanks!

I don't think you can negotiate that.

 

[manitou202]

I don't think you can negotiate that.

I've had leases in the past where I was offered an end of lease buyout lower than the original buyout price. It makes sense for them to offer something reasonable to the current lease owner.

If not, clearly I won't be buying the car as I could purchase a new Touring for less money.

 

[translux]

I have about 6 months remaining on my Air Touring lease. I'll potentially be leasing/buying a Gravity, however without all of the Gravity details out yet, I'm considering keeping my Air Touring instead. I absolutely love this car and it will be really hard to let it go.

I'm curious if Lucid will offer a lower purchase price at the end of my lease. My original touring MSRP was around $118k but can now be purchased for around $90k. Obviously the original lease buyout price will be well above the market, so I'm wondering if Lucid will offer something much more competitive.

Has anyone had experience with buying their Lucid at the end of the lease? Not sure if many people have gotten to that point with their lease yet.

Thanks!

Every lease I’ve had an I’ve had many the purchase price was negotiable. It’s going to be interesting to see what they do with the lease returns. Given that they’re not currently focused on selling used I bet they’ll send them to the auction.

 

[manitou202]

Every lease I’ve had an I’ve had many the purchase price was negotiable. It’s going to be interesting to see what they do with the lease returns. Given that they’re not currently focused on selling used I bet they’ll send them to the auction.

It seems like they could make more money by offering a reasonable buyout, and it could be an easier process.

Let's say my touring is worth $55k at auction. If they offered $60k-$65k I would seriously consider buying it at the end of lease. At the moment my buyout is closer to $85k.

 

[translux]

It seems like they could make more money by offering a reasonable buyout, and it could be an easier process.

Let's say my touring is worth $55k at auction. If they offered $60k-$65k I would seriously consider buying it at the end of lease. At the moment my buyout is closer to $85k.

I know that seems logical but given the cash burn any loses on these lease returns will be insignificant. But who knows. I’m hopeful that they allow me to extend my lease. This would be the easiest way to avoid dealing with what to do with the car with the least amount of effort.

 

[rome138]

I've had leases in the past where I was offered an end of lease buyout lower than the original buyout price. It makes sense for them to offer something reasonable to the current lease owner.

If not, clearly I won't be buying the car as I could purchase a new Touring for less money.

What auto company was that and timeframe?

 

[rome138]

Every lease I’ve had an I’ve had many the purchase price was negotiable. It’s going to be interesting to see what they do with the lease returns. Given that they’re not currently focused on selling used I bet they’ll send them to the auction.

Wow every? Which auto companies??!? My other car lease ending & it’s upside down. Wondering the same

 

[Andretex]

I have the 36 month lease with 23 months left. They started the 18 month lease literally a couple weeks after I signed my lease. I wish I could get into the Gravity sooner.

 

[manitou202]

What auto company was that and timeframe?

The best deal I got was leasing a 2013 Nissan Leaf. The residual was around $18k and Nissan offered to let me buy it at the end of the lease for $8500.

I've also had leases with Audi and VW where I negotiated at the end of the lease for a better buy out. Not all will do it clearly, but with something this lopsided like my Touring lease, it seems like they would be willing.

 

[rome138]

The best deal I got was leasing a 2013 Nissan Leaf. The residual was around $18k and Nissan offered to let me buy it at the end of the lease for $8500.

I've also had leases with Audi and VW where I negotiated at the end of the lease for a better buy out. Not all will do it clearly, but with something this lopsided like my Touring lease, it seems like they would be willing.

you were really able to negotiate with audi financial ? thats the one i'm upside down in on a lease right now too. They let you buy it out cheaper than your residual from AFS or a dealer did it cheaper for you?

 

[manitou202]

you were really able to negotiate with audi financial ? thats the one i'm upside down in on a lease right now too. They let you buy it out cheaper than your residual from AFS or a dealer did it cheaper for you?

With the Nissan Leaf, I actually received a letter from Nissan Financial prior to turning in my Leaf with the offer.

For my Audi and VW I contacted the dealership several weeks before turning in my lease and asked if there was any room to negotiate the buyout. I basically told them I was going to lease/buy another brand of vehicle. They came back with an offer.

My guess is the dealers are able to buy the cars from Audi/VW financial for less than the residual to resell as used cars. So depending on the amount of margin they have to deal with, they might take it as an opportunity to quickly flip the car and make a profit.

 

[rfc805]

The way it normally works (to my understanding) is that you aren't actually changing the lease terms. Instead, you're ending the lease, and paying the end of lease fee. At that point they end up with the vehicle back which they need to sell, which they'll put a price on. They can wrap this entire process up into one where you return your lease and purchase it as a sale after the return for the price they'd sell it at and all one transaction.

Lucid Financial (aka BofA) I don't think would have any real part in this (beyond getting their lease end fee), so it'd be on Lucid sales afterwards to do this. I'm not sure they have the process/capacity to do such things, but you could certainly try!

The other option of course is you can just end the lease and wait for it to go up for sale as a used vehicle and buy it then, same thing, just not 1 transaction.

 

[Batteryman]

The way it normally works (to my understanding) is that you aren't actually changing the lease terms. Instead, you're ending the lease, and paying the end of lease fee. At that point they end up with the vehicle back which they need to sell, which they'll put a price on. They can wrap this entire process up into one where you return your lease and purchase it as a sale after the return for the price they'd sell it at and all one transaction.

Lucid Financial (aka BofA) I don't think would have any real part in this (beyond getting their lease end fee), so it'd be on Lucid sales afterwards to do this. I'm not sure they have the process/capacity to do such things, but you could certainly try!

The other option of course is you can just end the lease and wait for it to go up for sale as a used vehicle and buy it then, same thing, just not 1 transaction.

Wouldn’t it be more worthwhile to use these cars as loaner Instead giving the service customer a newer car?

 

[rfc805]

Wouldn’t it be more worthwhile to use these cars as loaner Instead giving the service customer a newer car?

Probably not? Depends on your definition of worthwhile I suppose. Certainly unlikely to be a financial benefit to Lucid vs selling them.

 

[kpbhat]

you were really able to negotiate with audi financial ? thats the one i'm upside down in on a lease right now too. They let you buy it out cheaper than your residual from AFS or a dealer did it cheaper for you?

Remember to negotiate like you are buying a second hand car once the car is ready for return. The financing company will take a deal that is better for them like any dealership. Point to remember is one has to show the intent to walk away from the car if it’s not a good deal. At the end of the day financing company has to still sell the car returned and mostly they won’t get anything better than market value minus shipping and prepping costs. all the best

 

[coma24]

This would be a win-win as they would be selling the car at the retail market price rather than wholesale, probably a $10k difference. Given that they DO have a flow which involves the lease holder purchasing the car at the end of the term, all that's really changing is the price. I can't imagine why they wouldn't do it in cases where the residual is not reflective of market conditions.