Vehicle leases

So apparently there’s a lot of people with purchase equity on leases pre pandemic. My mother in law leased a 2018 Ford Escape. 30k mileage allowance. Car has 4400 miles on it. Lease ends in October. Lease agreement clearly states purchase option at end of lease is $12,653. The guy who owns the GMC dealership locally told me to be careful with Ford. They’ve been fucking around with residual values on leases and he doesn’t know how they’re getting away with it. The local Ford dealer currently has a 2018 Escape with 44,000k on it listed for $21,999. Told her she must buy the car and trade it in or I’ll sell it for her to get something she wants. She can’t turn that vehicle in, she needs to buy it right?

Thoughts Swill used car salesmen?

I do not know Kingston but I have a lease coming up in august so please let me know what you find out

Sounds fishy, but I would be looking for loopholes in that lease agreement and making some phone calls to Ford Leasing.

Well I mean I agree that it would be stupid not to buy it at that cost but the real question is are they actually going to sell it to you at that cost? Once you have that answer, course of action will be pretty obvious.

The only lease I considered in the last 5 years was for Costco’s 2020 Chevrolet Bolt.

I dragged my feet and they were gone but my Silicon Valley sibling moved quickly. They got the “Premier” version with nicer trim and cameras for $120 down, $120 per month for 48 months.

They already have solar panels. Switched out an old electric dryer outlet, bought a charging cord at Costco (when they ordered the car).

The cost of additional mileage is sobering and many leases are for 7200 miles (600 miles per month) plus $0.25 per mile.

I don't have an answer for you, but my current vehicle is a Chevy Equinox that I purchased after leasing, and I have been very happy with it. But I obviously didn't deal with Ford at all, so that probably doesn't really help you.

My understanding is your lease payment is based on what they consider the residual value of the vehicle at lease end.

$20,000 MSRP and a residual value of 60% after lease end. Your payment is 40% of 20,000 ($8000) over three years. With car shortages and crap used cars are sky rocketing.

Seems pretty cut and dried?

You're locked in to that purchase price, just as they are. Of course they don't want you to buy it because they make more money on the re-sale of the lease vehicle.

Motown Spartan wrote:You're locked in to that purchase price, just as they are. Of course they don't want you to buy it because they make more money on the re-sale of the lease vehicle.

This is accurate. You can talk to the dealer about buying you out on the lease, though they'll probably be more interested if you were putting the balance against one of their vehicles.
Used car prices(and new car to some extent) have spiked almost like houses, so pay attention if you have a lease expiring. We're going to buy out the lease because we'll be paying $5-10k more for anything else we'd consider.

Mrs Miser's lease ended last year. Lexus dealer was calling & emailing her constantly wanting her to trade it in for a new lease. They were selling the same car but with more miles for $6k more than her buyout number. Obviously she bought it.

Heat Miser wrote:Mrs Miser's lease ended last year. Lexus dealer was calling & emailing her constantly wanting her to trade it in for a new lease. They were selling the same car but with more miles for $6k more than her buyout number. Obviously she bought it.

Leased an 87 Mustang GT for 4 years. Was 10-12 thousand miles under the limit so bought it. Had a fire under the hood about a month later. Sold it after getting it back from insurance repairs and made about $3500.

Lots of leases in our history, each with the idea we could buy the car once the lease was up for a set amount that was in every contract. That wasn’t Ford, though, and I have no idea how it operates with leases. I do know a lot of companies got into trouble with the state in earlier years because of shady leasing practices, which has led to plain language reforms. The MI SoS website has info, and I’m guessing there’s a department you can call if you have questions.

kingstonlake wrote:So apparently there’s a lot of people with purchase equity on leases pre pandemic. My mother in law leased a 2018 Ford Escape. 30k mileage allowance. Car has 4400 miles on it. Lease ends in October. Lease agreement clearly states purchase option at end of lease is $12,653. The guy who owns the GMC dealership locally told me to be careful with Ford. They’ve been fucking around with residual values on leases and he doesn’t know how they’re getting away with it. The local Ford dealer currently has a 2018 Escape with 44,000k on it listed for $21,999. Told her she must buy the car and trade it in or I’ll sell it for her to get something she wants. She can’t turn that vehicle in, she needs to buy it right?

Thoughts Swill used car salesmen?

So you/she hasn't actually talked to the Ford dealer, right? This is all just based on what a salesman at a competitor dealership said? I don't mean that as a criticism, because it's good to hear those type of viewpoints so that you're aware if what they MIGHT try. But just that hopefully they don't try anything shady.

If she wants a new car, though, buy it and then trade it in. If that dealer is bitter about having to sell it to her for too little and wont give a good deal on a trade in, someone else will. And, of course, you can compare any trade in offer with selling to Carmax or on your own.

MiamiSpartan wrote:

kingstonlake wrote:So apparently there’s a lot of people with purchase equity on leases pre pandemic. My mother in law leased a 2018 Ford Escape. 30k mileage allowance. Car has 4400 miles on it. Lease ends in October. Lease agreement clearly states purchase option at end of lease is $12,653. The guy who owns the GMC dealership locally told me to be careful with Ford. They’ve been fucking around with residual values on leases and he doesn’t know how they’re getting away with it. The local Ford dealer currently has a 2018 Escape with 44,000k on it listed for $21,999. Told her she must buy the car and trade it in or I’ll sell it for her to get something she wants. She can’t turn that vehicle in, she needs to buy it right?

Thoughts Swill used car salesmen?

So you/she hasn't actually talked to the Ford dealer, right?  This is all just based on what a salesman at a competitor dealership said?  I don't mean that as a criticism, because it's good to hear those type of viewpoints so that you're aware if what they MIGHT try.  But just that hopefully they don't try anything shady.

If she wants a new car, though, buy it and then trade it in.  If that dealer is bitter about having to sell it to her for too little and wont give a good deal on a trade in, someone else will.  And, of course, you can compare any trade in offer with selling to Carmax or on your own.

Exactly. And he can sell direct to another consumer and probably do very, very well—much better than to a third party, especially the dealer. The market is hot and cars aren’t easy to come by. TBH, though, if it were my lease and I liked the car, I’d definitely be buying it at that price. Can always sell it sooner or later.

No idea how they come up with the residual value.  Leased a fully loaded 97 Olds Bravada AWD for $230/month.  Great vehicle...never had to take it back to the shop.  But the residual was absurdly high so no way I was gonna buy that thing.

The Mustang was the only Ford I ever leased/bought.  Was in the shop about every 2 months for various items, some repetitive (radio, AC stench).  There were other items.  U-joint failure might have been my fault because I beat that thing pretty hard, but still....  Got in the thing one winter morning.  When I went to close the driver door there was a BANG and something whizzed past my head.  One of the nylon/whatever rollers in the door hinge had exploded...could have lost an eye.  Ford makes some nice vehicles now but doubt I can bring myself to buy/lease one.

MiamiSpartan wrote:

kingstonlake wrote:So apparently there’s a lot of people with purchase equity on leases pre pandemic. My mother in law leased a 2018 Ford Escape. 30k mileage allowance. Car has 4400 miles on it. Lease ends in October. Lease agreement clearly states purchase option at end of lease is $12,653. The guy who owns the GMC dealership locally told me to be careful with Ford. They’ve been fucking around with residual values on leases and he doesn’t know how they’re getting away with it. The local Ford dealer currently has a 2018 Escape with 44,000k on it listed for $21,999. Told her she must buy the car and trade it in or I’ll sell it for her to get something she wants. She can’t turn that vehicle in, she needs to buy it right?

Thoughts Swill used car salesmen?

So you/she hasn't actually talked to the Ford dealer, right? This is all just based on what a salesman at a competitor dealership said? I don't mean that as a criticism, because it's good to hear those type of viewpoints so that you're aware if what they MIGHT try. But just that hopefully they don't try anything shady.

If she wants a new car, though, buy it and then trade it in. If that dealer is bitter about having to sell it to her for too little and wont give a good deal on a trade in, someone else will. And, of course, you can compare any trade in offer with selling to Carmax or on your own.

The local GMC owner is a personal friend. I was actually surprised by his statement. Bought cars from him. I trust the guy. I was kinda wondering if anyone has maybe heard anything about Ford playing games with residual values at lease end. Seems almost impossible. But I know the market is real bad for dealers right now on soon expiring leases. I was stunned what 3 year old cars are selling for. Obviously residual was set in 2018 without knowledge of what the next three years would hold. I might give him a call to elaborate on what he “heard”. My MIL brought up the lease and I looked it over. Big surprise. Basically $8,000 equity at lease end? That’s crazy.

kingstonlake wrote:

MiamiSpartan wrote:

So you/she hasn't actually talked to the Ford dealer, right? This is all just based on what a salesman at a competitor dealership said? I don't mean that as a criticism, because it's good to hear those type of viewpoints so that you're aware if what they MIGHT try. But just that hopefully they don't try anything shady.

If she wants a new car, though, buy it and then trade it in. If that dealer is bitter about having to sell it to her for too little and wont give a good deal on a trade in, someone else will. And, of course, you can compare any trade in offer with selling to Carmax or on your own.

The local GMC owner is a personal friend. I was actually surprised by his statement. Bought cars from him. I trust the guy. I was kinda wondering if anyone has maybe heard anything about Ford playing games with residual values at lease end. Seems almost impossible. But I know the market is real bad for dealers right now on soon expiring leases. I was stunned what 3 year old cars are selling for. Obviously residual was set in 2018 without knowledge of what the next three years would hold. I might give him a call to elaborate on what he “heard”. My MIL brought up the lease and I looked it over. Big surprise. Basically $8,000 equity at lease end? That’s crazy.

I’m not quite sure what you mean by equity. It’s a lease, so there really isn’t going to be any equity for the lessee when the vehicle is still owned by the manufacturer or lender.

tGreenWay wrote:

kingstonlake wrote:

The local GMC owner is a personal friend. I was actually surprised by his statement. Bought cars from him. I trust the guy. I was kinda wondering if anyone has maybe heard anything about Ford playing games with residual values at lease end. Seems almost impossible. But I know the market is real bad for dealers right now on soon expiring leases. I was stunned what 3 year old cars are selling for. Obviously residual was set in 2018 without knowledge of what the next three years would hold. I might give him a call to elaborate on what he “heard”. My MIL brought up the lease and I looked it over. Big surprise. Basically $8,000 equity at lease end? That’s crazy.

I’m not quite sure what you mean by equity. It’s a lease, so there really isn’t going to be any equity for the lessee when the vehicle is still owned by the manufacturer or lender.

I meant Equity at purchase on lease end. $12,xxx to buy and they’re retailing for $20k +

kingstonlake wrote:

tGreenWay wrote:



I’m not quite sure what you mean by equity. It’s a lease, so there really isn’t going to be any equity for the lessee when the vehicle is still owned by the manufacturer or lender.

I meant Equity at purchase on lease end. $12,xxx to buy and they’re retailing for $20k +

Okay, got it. Thanks. Keep us posted. I’ll be curious what you do with this car.

The Pantry wrote:No idea how they come up with the residual value.  Leased a fully loaded 97 Olds Bravada AWD for $230/month.  Great vehicle...never had to take it back to the shop.  But the residual was absurdly high so no way I was gonna buy that thing.

The Mustang was the only Ford I ever leased/bought.  Was in the shop about every 2 months for various items, some repetitive (radio, AC stench).  There were other items.  U-joint failure might have been my fault because I beat that thing pretty hard, but still....  Got in the thing one winter morning.  When I went to close the driver door there was a BANG and something whizzed past my head.  One of the nylon/whatever rollers in the door hinge had exploded...could have lost an eye.  Ford makes some nice vehicles now but doubt I can bring myself to buy/lease one.

Residual value is original purchase price minus depreciation over the life of the lease. Some models depreciate quicker than others based on multiple factors & there's plenty of historical resale data to base the number on.

When you lease a car, you're paying for the depreciation + interest. That $1k down is usually the interest up front & the payments cover the depreciation.

Heat Miser wrote:

The Pantry wrote:No idea how they come up with the residual value.  Leased a fully loaded 97 Olds Bravada AWD for $230/month.  Great vehicle...never had to take it back to the shop.  But the residual was absurdly high so no way I was gonna buy that thing.

The Mustang was the only Ford I ever leased/bought.  Was in the shop about every 2 months for various items, some repetitive (radio, AC stench).  There were other items.  U-joint failure might have been my fault because I beat that thing pretty hard, but still....  Got in the thing one winter morning.  When I went to close the driver door there was a BANG and something whizzed past my head.  One of the nylon/whatever rollers in the door hinge had exploded...could have lost an eye.  Ford makes some nice vehicles now but doubt I can bring myself to buy/lease one.

Residual value is original purchase price minus depreciation over the life of the lease. Some models depreciate quicker than others based on multiple factors & there's plenty of historical resale data to base the number on.

When you lease a car, you're paying for the depreciation + interest. That $1k down is usually the interest up front & the payments cover the depreciation.

Yeah, I get that. Still speculative. Probably why most lease terms don't go more than 24 months anymore.

What was the end of the story here Kingston? My lease is due next month.

The residual value is 17k, comparable used cars are going for like 25k. So I’m pretty sure I should have a solid amount toward a new lease/purchase or I’ll just buy the car and call it a day.

Not sure how any of this works it’s the first time I’ve leased a car

The Pantry wrote:

Heat Miser wrote:

Residual value is original purchase price minus depreciation over the life of the lease. Some models depreciate quicker than others based on multiple factors & there's plenty of historical resale data to base the number on.

When you lease a car, you're paying for the depreciation + interest. That $1k down is usually the interest up front & the payments cover the depreciation.

Yeah, I get that. Still speculative. Probably why most lease terms don't go more than 24 months anymore.

Not pointing out your comment to be disagreeable, but in my experience, 36 month leases are still very popular. I think a couple of places still offer 39 month leases, but not sure. We’ve only ever done one 24 month lease and Mrs. GW and I decided the three year contract was preferable.

Travis of the Cosmos wrote:What was the end of the story here Kingston? My lease is due next month.

The residual value is 17k, comparable used cars are going for like 25k. So I’m pretty sure I should have a solid amount toward a new lease/purchase or I’ll just buy the car and call it a day.

Not sure how any of this works it’s the first time I’ve leased a car

If you’re looking to make a profit on the car, but it at the $17k price you agreed to, then sell it yourself. But if you like the car, see what dollar amount dealers are selling similar versions. This isn’t a good time to be car shopping any more than house shopping because both are overpriced. Best thing about buying your lease outright is knowing who the owner is and how well or poorly the car was treated.

Travis of the Cosmos wrote:What was the end of the story here Kingston? My lease is due next month.

The residual value is 17k, comparable used cars are going for like 25k. So I’m pretty sure I should have a solid amount toward a new lease/purchase or I’ll just buy the car and call it a day.

Not sure how any of this works it’s the first time I’ve leased a car

You have to buy it out at the end of the lease and then sell it or trade it in to get that 8k difference. Simply turning it in at the end of the lease will not net you that 8k. Now, the dealer might be able to do all of this for you but they would be happy to just take it in off the lease when you are done and not count it as anything down on the next vehicle purchase/lease.

What if I went to a different dealer or company all together? It’s a jeep, makes sense to me that a GM dealer would be happy to buy that for 17k, give me some credit for it, then sell it for 26. Like I said though, I have no idea how this works

Her lease is up in October. We called and yes, it's hers for $12,600 if she wants it. Good thing is she doesn't want it so selling it or trading it in will net the profit towards another new car she likes. I'm not sure how long this "buyer friendly" window stays open though.

Travis and Kingston,
I’m not sure if I’m following your comments correctly, and I’ve never purchased my lease, so I have zero experience with the process, but you’ve both made comments that seemed off to me. Again, apologies if I’ve misunderstood.
The dealer isn’t buying back your lease because you don’t own the car. You might be able to work out a deal to get more money in credit for another lease/purchase, but it’s unlikely to be what you’re hoping to get. They know you’re already under contract at a previously-agreed-to price to turn in that car. You might get something extra, I don’t know, but the dealer might also tell you to take a hike because they know there are a number of other buyers waiting for/willing to buy that same model.

In short, you guys don’t really have any hand, and the only way to get it is by purchasing the lease. That doesn’t mean I’m advocating buying the lease, but it gives you some bargaining power, IMO. But again, I’ve never taken a lease deal this far. I’ve always jumped off at the ‘turn in the car’ phase, then started over with something new, even when working with the same sales associate.
Another reason your position isn’t as strong as it could be is because it’s the middle of July, not the end of the month, and it’s only the first month in Q3. Salespeople aren’t worried about not hitting their quotas.

I admit, I’ve gotten a lazier at negotiating as I’ve aged, but it’s really more about do I really want to spend time going from dealer to dealer just to save what won’t amount to that much more. My answer a few years ago changed to hell, no. You guys might feel differently, which is cool.

Apologies for the long spiel. Best of luck to both of you.

tGreenWay wrote:

The Pantry wrote:
Yeah, I get that.  Still speculative.  Probably why most lease terms don't go more than 24 months anymore.

Not pointing out your comment to be disagreeable, but in my experience, 36 month leases are still very popular. I think a couple of places still offer 39 month leases, but not sure. We’ve only ever done one 24 month lease and Mrs. GW and I decided the three year contract was preferable.

48 month leases were common years ago.  Pretty sure they don't exist anymore.  

The shitty thing about 48 months from the lessee side was they generally got into a mileage range where the vehicle needed maintenance like brakes and tires shortly before the lease was up.  

Kinda funny now.  Had leased a '91 Pontiac Grand Prix STE for 4 years.  Nice car...sorta peppy for the time and was the first vehicle I'd driven with a HUD, which I really liked.  Was on the way to the dealer to turn it in for a new GMC Safari AWD.  Car died a couple miles from the dealership.  Called my sales guy explaining the situation and he arranged to get it towed there the following day.  Had to pay the dealership to fix the problem before they would accept the vehicle as a lease turn-in.  Forget what the issue was...cost like $150 to fix.  Remember giving the sales guy a bit of humorous grief for not throwing it in on the new vehicle deal.  He drew the line at the free tow

The Pantry wrote:

tGreenWay wrote:



Not pointing out your comment to be disagreeable, but in my experience, 36 month leases are still very popular. I think a couple of places still offer 39 month leases, but not sure. We’ve only ever done one 24 month lease and Mrs. GW and I decided the three year contract was preferable.

48 month leases were common years ago.  Pretty sure they don't exist anymore.  

The shitty thing about 48 months from the lessee side was they generally got into a mileage range where the vehicle needed maintenance like brakes and tires shortly before the lease was up.  

Kinda funny now.  Had leased a '91 Pontiac Grand Prix STE for 4 years.  Nice car...sorta peppy for the time and was the first vehicle I'd driven with a HUD, which I really liked.  Was on the way to the dealer to turn it in for a new GMC Safari AWD.  Car died a couple miles from the dealership.  Called my sales guy explaining the situation and he arranged to get it towed there the following day.  Had to pay the dealership to fix the problem before they would accept the vehicle as a lease turn-in.  Forget what the issue was...cost like $150 to fix.  Remember giving the sales guy a bit of humorous grief for not throwing it in on the new vehicle deal.  He drew the line at the free tow

Those Pontiacs back then had such a beautiful dark green exterior paint—the best on the market, IMO. I remember when you told me your car had HUD. It’s hard for me to believe that feature didn’t get picked up by other car makers back then. It’s a great help on the road.

tGreenWay wrote:Travis and Kingston,
I’m not sure if I’m following your comments correctly, and I’ve never purchased my lease, so I have zero experience with the process, but you’ve both made comments that seemed off to me. Again, apologies if I’ve misunderstood.
The dealer isn’t buying back your lease because you don’t own the car. You might be able to work out a deal to get more money in credit for another lease/purchase, but it’s unlikely to be what you’re hoping to get. They know you’re already under contract at a previously-agreed-to price to turn in that car. You might get something extra, I don’t know, but the dealer might also tell you to take a hike because they know there are a number of other buyers waiting for/willing to buy that same model.

In short, you guys don’t really have any hand, and the only way to get it is by purchasing the lease. That doesn’t mean I’m advocating buying the lease, but it gives you some bargaining power, IMO. But again, I’ve never taken a lease deal this far. I’ve always jumped off at the ‘turn in the car’ phase, then started over with something new, even when working with the same sales associate.
Another reason your position isn’t as strong as it could be is because it’s the middle of July, not the end of the month, and it’s only the first month in Q3. Salespeople aren’t worried about not hitting their quotas.

I admit, I’ve gotten a lazier at negotiating as I’ve aged, but it’s really more about do I really want to spend time going from dealer to dealer just to save what won’t amount to that much more. My answer a few years ago changed to hell, no. You guys might feel differently, which is cool.

Apologies for the long spiel. Best of luck to both of you.

So, and again I probably know way less than you about cars- but that number that I can buy the car for, 17k, is absurdly low only because of the circumstances. In normal times I would have just turned the car in and gotten a new one for a comparable price and never really given a second thought to enforcing that part of the contract. What’s throwing it off is that the contract says I can buy it at a price that is way less than what it’s worth. So yeah, the idea is that I buy it then trade it in (or just find a dealer that would make that process less cumbersome than having to do two separate transactions but if that’s what I gotta do that’s okay too)

Or I just buy it and go on my very merry way knowing that I could trade it in later if I want to. That’s probably going to be what I do tbh

Travis of the Cosmos wrote:

tGreenWay wrote:Travis and Kingston,
I’m not sure if I’m following your comments correctly, and I’ve never purchased my lease, so I have zero experience with the process, but you’ve both made comments that seemed off to me. Again, apologies if I’ve misunderstood.
The dealer isn’t buying back your lease because you don’t own the car. You might be able to work out a deal to get more money in credit for another lease/purchase, but it’s unlikely to be what you’re hoping to get. They know you’re already under contract at a previously-agreed-to price to turn in that car. You might get something extra, I don’t know, but the dealer might also tell you to take a hike because they know there are a number of other buyers waiting for/willing to buy that same model.

In short, you guys don’t really have any hand, and the only way to get it is by purchasing the lease. That doesn’t mean I’m advocating buying the lease, but it gives you some bargaining power, IMO. But again, I’ve never taken a lease deal this far. I’ve always jumped off at the ‘turn in the car’ phase, then started over with something new, even when working with the same sales associate.
Another reason your position isn’t as strong as it could be is because it’s the middle of July, not the end of the month, and it’s only the first month in Q3. Salespeople aren’t worried about not hitting their quotas.

I admit, I’ve gotten a lazier at negotiating as I’ve aged, but it’s really more about do I really want to spend time going from dealer to dealer just to save what won’t amount to that much more. My answer a few years ago changed to hell, no. You guys might feel differently, which is cool.  

Apologies for the long spiel. Best of luck to both of you.

So, and again I probably know way less than you about cars- but that number that I can buy the car for, 17k, is absurdly low only because of the circumstances. In normal times I would have just turned the car in and gotten a new one for a comparable price and never really given a second thought to enforcing that part of the contract. What’s throwing it off is that the contract says I can buy it at a price that is way less than what it’s worth. So yeah, the idea is that I buy it then trade it in (or just find a dealer that would make that process less cumbersome than having to do two separate transactions but if that’s what I gotta do that’s okay too)

Or I just buy it and go on my very merry way knowing that I could trade it in later if I want to. That’s probably going to be what I do tbh

If the contract residual is low compared to current retail value, buy it.  Hang on to it to sell later if you want.  Simple.

Greenway the way I understand it neither neither Travis nor the dealership own the car. But Travis is first in line to exercise that option at the contract price , and the dealership is second. If neither want it, it goes to auction. The dealership probably wants it with the current market and supply shortages. I bet they're going to attempt a sweet "deal" to get him into another lease so they can exercise the purchase option and turn a good profit on his Jeep because their lot is dry. But Travis has that first option. He can sell it on his own or trade it in for some juice on a down payment for something else as long as they are straight with him on trade in value. (I hate car dealerships)

I do think the window of opportunity will close eventually though once the shortage rights itself

Travis & KL, Right—I agree with both of you. The lessee has the right of first refusal. You’re in a good position if you intend to buy the car. Whether or not you turn around and sell it to the dealer is your call, obvs, but remember the dealer will lowball you on a price whether or not you’re a returning customer. Do some homework in finding out what your car would sell for before making any deal. You won’t get what you want from the dealer, but there’s the ease in making everything happen in one place. Or you could advertise in any of those online car magazines and get more going in your pocket. Just remember to make the price somewhat more attractive than anything on a dealer’s lot.
Despite some hassles, a private sale is worth it if you have the time and inclination. And remember, this is the perfect time when parents of college students are looking to buy something for their kid heading to school.

This thread is relevant for me as well.
Husband's 2019 GMC Terrain AWD SLT lease is up in April. I know used cars are selling for more. The purchase price after the lease is listed at $21,437. He barely drove it, but will be putting some miles on it until April. I think right now he has 6500 miles on it.

I'm planning on buying it, and reselling it. I have no idea what to do if I sell it to some other person. But we definitely need a 3rd row seat vehicle. So would hope for a quick turn around. Assuming I can find what we want then.

Thoughts/suggestions?

Edit: We plan on buying the next vehicle not leasing. We rarely ever leased before. Ideally, it'd be a first time lease trade in vehicle with as low miles as possible. Not really interested in paying for brand new.

Dendrobates wrote:This thread is relevant for me as well.
Husband's 2019 GMC Terrain AWD SLT lease is up in April. I know used cars are selling for more. The purchase price after the lease is listed at $21,437. He barely drove it, but will be putting some miles on it until April. I think right now he has 6500 miles on it.

I'm planning on buying it, and reselling it. I have no idea what to do if I sell it to some other person. But we definitely need a 3rd row seat vehicle. So would hope for a quick turn around. Assuming I can find what we want then.

Thoughts/suggestions?

Edit: We plan on buying the next vehicle not leasing. We rarely ever leased before. Ideally, it'd be a first time lease trade in vehicle with as low miles as possible. Not really interested in paying for brand new.

Go back to the dealership (and go to multiple dealerships) and ask what they'll give you for the GMC (if you leased/financed at the dealership). It most likely won't be what you'd get on the open market, but you wouldn't have to deal with selling it on your own.

And I'd look into leasing again (unless he's going to be putting tons of miles on it and going over the mileage limit), as opposed to buying a used car. Seems like any money you'd make on your GMC would be eaten up by overpaying for a used car.

That's pretty low miles Dendro. I'm a rank amateur at this stuff but I'd look into buying it now and selling it now. I'm guessing the $21,000 purchase price was factoring in that there'd be about 30-36,000 miles on it.

Jeep came out with that grand Cherokee L, Dendro. Third row...

NigelUno wrote:

Dendrobates wrote:This thread is relevant for me as well.
Husband's 2019 GMC Terrain AWD SLT lease is up in April. I know used cars are selling for more. The purchase price after the lease is listed at $21,437. He barely drove it, but will be putting some miles on it until April. I think right now he has 6500 miles on it.

I'm planning on buying it, and reselling it. I have no idea what to do if I sell it to some other person. But we definitely need a 3rd row seat vehicle. So would hope for a quick turn around. Assuming I can find what we want then.

Thoughts/suggestions?

Edit: We plan on buying the next vehicle not leasing. We rarely ever leased before. Ideally, it'd be a first time lease trade in vehicle with as low miles as possible. Not really interested in paying for brand new.

Go back to the dealership (and go to multiple dealerships) and ask what they'll give you for the GMC (if you leased/financed at the dealership).  It most likely won't be what you'd get on the open market, but you wouldn't have to deal with selling it on your own.

And I'd look into leasing again (unless he's going to be putting tons of miles on it and going over the mileage limit), as opposed to buying a used car.  Seems like any money you'd make on your GMC would be eaten up by overpaying for a used car.  

I know I would be overpaying for any new/used vehicle,  but there's just something about a lease that bugs me. Mostly that we don't own it. And I would feel better if it gets trashed (2 little kids). Although,  we've done a great job not trashing my husband's car this time around. We try to use my company car as much as we can.

Good idea on reaching out to other dealerships to see what they would offer me. Thanks

kingstonlake wrote:That's pretty low miles Dendro. I'm a rank amateur at this stuff but I'd look into buying it now and selling it now. I'm guessing the $21,000 purchase price was factoring in that there'd be about 30-36,000 miles on it.

You are correct. It was a 3 year lease, at 12k miles/year. Pandemic and job stuff made the miles so low. But job status has changed, so it is getting used more.

kingstonlake wrote:Jeep came out with that grand Cherokee L, Dendro. Third row...

Good to know! Before,  the regular Cherokee still wasn't as big inside as the terrain/equinox back when we looked last time. I don't really care on brands, just fairly upgraded with 3rd row, low miles, and AWD.