: should I buy out my lease? (04)



beekay
03-15-07, 04:04 PM
hey everyone. owned this srx v8 loaded (xcept xm and tow) since Aug 2004. aside from some issues early on, I have been fairly lucky (knock on wood). i just hit 46k miles and the lease is due up this summer.

I am looking to negotiate the buy out price from 31k to about 20-23k based on what I am seeing these things go for (like items) lately.

Has anyone successfully negotiated with GMAC to get the price of the buy out to be LESS than the agreed upon buy out in the contract? When I call the cust svc folks, they say it cannot be done, but I have heard that if you speak with an area manager, they can approve and negotiate leases.

Should I buy the extended warranty? I am looking at a few options and they are not cheap, but neither are the fixes if this thing breaks.

Any advice here? Am I crazy to consider buying this (even at 20k)

thanks
bk

inline6
03-15-07, 05:05 PM
You know the car and have the bugs worked out. If you can buy for what it is worth, you really have little to loose. The problem is, the leasing company hires bankers and not car guys; they just know the numbers and not the real value of the SRX. Many times they will not sell it at a discount to the leasee, but will sell it for way less at an auction. Good luck with your decision.

GMJim
03-16-07, 11:59 AM
I loved my 04 till I drove a 06. The thinner rocker panel & power liftgate were enough to make me forget about my old vehicle. At 31K you could get a low milage 06. Worth a thought....................

nick1bum
03-16-07, 12:33 PM
If you were able to buy your car for $25,000.00 which is possible but doubtful. Think of this. In August, take a 24 month lease on a 2008 at about $550/Month. You can earn at least 5-1/4% interest on your 25,000.00 in a CD, which is about $2,600.00 over two years. In August of 2010, your CD will be worth $27,600.00, you can prepay a 2 year lease on a 2010 for about $13,000.00, and your CD balance will continue to earn interst, about $1,500 over the next two years. In 2012 you can prepay another two year lease for about $14,000.00. After figuring a little for inflation and your CD continuing to earn, by August of 2014, you will have only driven cars that were new, never put on tires, brakes, or anything else, always would have been driving with a warranty, and you still will have $2,000.00 left. Figure out what your 04 would be worth in 2014 and deduct the cost of all the tires, brakes, exhaust sytems, and other repairs that you would have been paying for the last 6 years. It would most likely be close to matching dollar for dollar. The questions is driving three new cars for 6 years or driving the same one for 6 more years. My figures can be off a few dollars either way, but they are close to reality.

The Bum

robhersch
03-16-07, 12:49 PM
hey everyone. owned this srx v8 loaded (xcept xm and tow) since Aug 2004. i just hit 46k miles and the lease is due up this summer.......but I have heard that if you speak with an area manager, they can approve and negotiate leases.
Should I buy the extended warranty? I am looking at a few options and they are not cheap, but neither are the fixes if this thing breaks.
Any advice here? Am I crazy to consider buying this (even at 20k) thanks
bk

Another thought - try first negotiating with your dealer to: 1) let the dealer work with the lessor to take it back, 2) dealer to "do his thing to qualify it for the GM 100k mi resale warranty", 3) agree in writing that you will buy it back for $XXX including the 100k GM warranty. I must think this would be a better all around deal for lessor, GM and dealer; and you get the known vehicle...with the best extended GM warranty.....hopefully at a fair price!!
Wish you success and Good Luck!!

itwonder
03-16-07, 04:04 PM
I think it's time to get rid of it unless you are in love with the car.

urbanski
03-16-07, 06:37 PM
If you were able to buy your car for $25,000.00 which is possible but doubtful. Think of this. In August, take a 24 month lease on a 2008 at about $550/Month. You can earn at least 5-1/4% interest on your 25,000.00 in a CD, which is about $2,600.00 over two years. In August of 2010, your CD will be worth $27,600.00, you can prepay a 2 year lease on a 2010 for about $13,000.00, and your CD balance will continue to earn interst, about $1,500 over the next two years. In 2012 you can prepay another two year lease for about $14,000.00. After figuring a little for inflation and your CD continuing to earn, by August of 2014, you will have only driven cars that were new, never put on tires, brakes, or anything else, always would have been driving with a warranty, and you still will have $2,000.00 left. Figure out what your 04 would be worth in 2014 and deduct the cost of all the tires, brakes, exhaust sytems, and other repairs that you would have been paying for the last 6 years. It would most likely be close to matching dollar for dollar. The questions is driving three new cars for 6 years or driving the same one for 6 more years. My figures can be off a few dollars either way, but they are close to reality.

The Bum
here's how i'd modify your argument....
a lease is basically financing depreciation at upwards of 15% APR. You pay for the value loss of a new car at a high APR. The 5% you may earn on that CD is way overshadowed by fee-loaded "fleeces".
Why not just buy a used car with cash? Put the difference in what you would have spent on new car depreciation into that CD and in 4 years buy another used car with the money from the CD....the money you would have spent on financing new car depreciation.
You can see one problem with a lease with the OP...the car is just not worth what the residual is. So he got screwed financing depreciation for the last 3 years, now he's screwed trying to buy it for way more than its worth.
Never fleece. Never finance. Buy used with cash. To the OP...buy your car, but only with cash. Consider this cash loss as "stupid tax" and dont do it again :)

c5 rv
03-16-07, 08:41 PM
There's nothing inherently wrong with paying cash, financing, or leasing. It's all in how the numbers add up. It's a given we are inclined to drive luxury cars that depreciate like mad and tend to require expensive repairs. (Rather than old Hondas and Toyotas that Consumer Reports tells us will run forever with no repairs and fuel measured by the eyedropper-full.)

Let's say you find a great certified pre-owned with 30K miles for $25K, plan to drive it for 4 years, and sell it before the 6/100 warranty expires. When Cadillac dealers have 2.9% or 3.9% GMAC financing, it's cheaper to invest your $25K (if you have it) and finance the car for about $450 a month for 5 years or $550 a month for 4 years. I think there's a higher risk of problems with any used car (even CPO), that will make me want to sell it early, so you may want to play it be safe and go with the 4 year note. You could mod the car to your heart's content and little dents, dings, and scrapes will have only moderate impact on the eventual sale price of a 6 year old Caddy with about 90K miles on it.

Then again, as stated earlier, you could lease a new car for the same $550 and get a new car more frequently. However, you couldn't add any permanent mods and would have to make sure any damage is repaired when turning the car in.

Tom Wheeler
03-17-07, 11:05 AM
I loved my 04 till I drove a 06. The thinner rocker panel & power liftgate were enough to make me forget about my old vehicle. At 31K you could get a low milage 06. Worth a thought....................

I agree with Jim on this one for sure....Think about this, with an 04 you have the first generation of this vehicle. And I don't care what make you talking about the gen one versions have the most problems over time. To me if you have the 31K, buy a very low milage 06 and get the model improvements and a much newer vehicle.

Tom

beekay
03-28-07, 11:15 AM
thanks for the tips guys! Now I have to put on my thinking cap! I will keep this thread up to date with my progress,

cheers
bk

b4z
03-28-07, 06:36 PM
I wouldn't even consider buying it.
I would turn that thing in before the mileage/warranty is exceeded and not look back.
You can lease a V6 Ultraview for $399 mo. right now.
With more options you could easily get it for $550 mo. like the others have said.
The '06s and especially the '07s are so much nicer and have so many more usable features than our '04s that if somebody offered me a '04 for 20K,
I would walk.
And we are starting to find out some not so nice things about '04 SRXs.
Like the mufflers on my '04 that blew the insulation out of the pipes.
Cost GM $1400 for that repair. How would like to see that bill on an out of warranty car?
I would lease again if you use the car for business, if is personal use only I would think a certified used '06.

louisn
03-29-07, 08:08 AM
I wouldn't even consider buying it.
I would turn that thing in before the mileage/warranty is exceeded and not look back.
You can lease a V6 Ultraview for $399 mo. right now.
With more options you could easily get it for $550 mo. like the others have said.
The '06s and especially the '07s are so much nicer and have so many more usable features than our '04s that if somebody offered me a '04 for 20K,
I would walk.
And we are starting to find out some not so nice things about '04 SRXs.
Like the mufflers on my '04 that blew the insulation out of the pipes.
Cost GM $1400 for that repair. How would like to see that bill on an out of warranty car?
I would lease again if you use the car for business, if is personal use only I would think a certified used '06.
What are the more "usable features" besides the apparent increased reliablity and the more upscale interior?

TSS
03-29-07, 08:25 AM
Biggies for 2006+ are: Power open/close liftgate, narrower door sills, improved interior color scheme for the light colored interior (light dash versus black dash, light door inserts versus black, etc). These things seem minor, but they are not (at least to me).

2007+ lots of information system, monitering system, Navigation and audio system differences. IMO, some better, some not.

.

ckrichards
03-30-07, 07:16 AM
On the other hand I consider a light dash a negative. The lighter color(not black) dash increases the glare on the dash.

mjk
03-30-07, 07:35 AM
On the other hand I consider a light dash a negative. The lighter color(not black) dash increases the glare on the dash.

AMEN TO THAT!

TSS
03-30-07, 07:52 AM
I agree with you guys about glare. However, I prefer to wear sunglasses versus continually cleaning the black dash where dust collects in the texture. The lighter color looks better IMO and shows dust SO MUCH less.

GMJim
03-30-07, 08:52 AM
Move to Michigan. You don't have to worry about sunshine or glare. : - (

TSS
03-30-07, 11:19 AM
I am in Michigan Jim - East Lansing. Maybe that is why it does not bother me as much as them!

King3244
03-30-07, 09:19 PM
We are a little off topic here but..........buy the small California duster and run it over the dash every day or every other or what ever.

As to the original question.........if GMAC doesn't do a deal with you they will end up wholesaling it at a dealer auction and getting waaaaaaayyyyy less than 22 or 23 thousand for it.........so deal hard with them and see if they will break.

c5 rv
03-31-07, 06:59 AM
Move to Michigan. You don't have to worry about sunshine or glare. : - (

Hey, we had some sun this week! Just don't expect it on the weekends. I think our state motto "Si Quaeris Peninsulam Amoenam Circumspice" translates into "Endure the Gloomy Peninsula" or something like that. (Never did take Latin.)

TSS
03-31-07, 10:08 AM
[QUOTE]We are a little off topic here but..........buy the small California duster and run it over the dash every day or every other or what ever.[QUOTE]

The armor all cleaner wipes work great too. Just don't use the protectant wipes, they will just make things worse. I use a cleaner wipes 1-2 times per week and usually see zero dust accumulate.

pagpc
03-31-07, 11:19 AM
i decided not to. car did not age well. decided i could do better with another lease on a better car.

pagpc

Dinger77
04-11-07, 11:56 AM
You can't negotiate the buy out price because you negotiated it when you bought it. All a smart buy or a lease consists of is the finance company saying, "OK we think this car is going to be worth this amount of money in 2009 so pay us the difference from sticker price." The smart buy or lease has that balloon payment on it, and you signed it. Negotiations are over. Let them take the loss at auction, get you a new srx, and do it to them again in 3 years. I am a Cadillac dealer, and a smart buy or lease is the only way to buy a Cadillac. They take way to big of a hit when they leave the lot. Your 04 with 46k will go for about 16 to 18K at auction. Get a new one. www.serviceautomall.com My Cadillac area of the web sight dosen't have all of my inventory on it for some reason. Same with Buick and Pontiac