: Purchasing after lease ends



TSS
04-20-08, 10:17 AM
I know this is not a Lade specific question, so I appoligize if it should be posted elsewhere.

I am really leaning towards purchasing my Lade at the end of its lease - I love it that much. In any event, does anybody know if I do buy it from GM at the end of the 39 month lease, can I get it CERTIFIED when I purchase it? Or, can only a vehicle actually in dealer stock get certified? My 01 SLS was CPO and it was the awesome to have the bumper to bumper warrantee for 6 years.

If my question gets answered in the affirmative, then I will know for sure that I am buying it and can start wasting some $$ on wheels and other potential mods.


Thanks for any guidance.

scottlma
04-20-08, 10:33 PM
You may want to do some research on the buyout price vs. the actual value. GM is really good at over-valuing the residual in order to make the lease pricing actractive when they are high on inventory and need to unload cars now and then. It makes for a better lease payment, at the expense of a high buyout. There is somethimes also room for bargaining with leasing companies at lease end - if you know the wholesale value of the vehicle, offer them something just over that and see if they'll bite (never tried it with GMAC though)

thatcoder
04-20-08, 10:52 PM
I spoke with my sales guy about this extensively on friday, and he was totally against buying it out, the cost at that point isn't really worth it, but that's just me.

dciliberti
04-21-08, 09:22 AM
Like scottlma said compare you buyout price to other Escalades. You most likely will find that your buyout is higher. They figure the residual value of the truck at lease time as what they THINK it will be worth at the end of the term (2 or 3 years) Most of the time it's higher then the actual value but that's good because you got a lower lease pmt

hcvone
04-21-08, 09:56 AM
Usually you would not want to purchase after the lease because the buyout is too high, as said that helps keep your lease payment lower

TSS
04-21-08, 11:24 AM
I know the buyout will be high. But I also know I will not be able to find an 07 Lade at the time in my color choice, in pristine conditon, meticulously cared for and maintained, with low miles (should have about 30K miles on it at the time after 39 months). So, I know I will pay more than book. My idea is to have it replace my wife's car, and I will get into a new lease for myself, as I need to lease for business purposes. She will need a new car certainly by then and she enjoys the Lade. It just seems to make more sense than looking to buy somebody else's used vehicle. Leasing makes no sense for her, as she only puts on about 4K miles per year and the minimum lease is 10K per year.

In any event, I know you are all correct about the buyout being high. With that said, any ideas or experience getting a lease buyout Certified? That will the the deal maker/breaker.

scroitoru
04-21-08, 11:30 AM
for example, i just returned my Odyssey. At the lease end, the residual values was at $ 15 K.
In a trade, I would have got around $ 11 K. With the repairs and all, I paid at the lease end $ 1,500. So I lost only $ 1,500 rather than $ 4 K. And if you have your vehicle in a very good shape, you do not have to pay anything at lease end.

I guess what I am saying is DO NOT buy at lease end, like everybody else said.

Dif
04-21-08, 12:46 PM
I know the buyout will be high. But I also know I will not be able to find an 07 Lade at the time in my color choice, in pristine conditon, meticulously cared for and maintained, with low miles (should have about 30K miles on it at the time after 39 months). So, I know I will pay more than book. My idea is to have it replace my wife's car, and I will get into a new lease for myself, as I need to lease for business purposes. She will need a new car certainly by then and she enjoys the Lade. It just seems to make more sense than looking to buy somebody else's used vehicle. Leasing makes no sense for her, as she only puts on about 4K miles per year and the minimum lease is 10K per year.

In any event, I know you are all correct about the buyout being high. With that said, any ideas or experience getting a lease buyout Certified? That will the the deal maker/breaker.

Sorry, I don't know if you can get it Certified like you're asking.
I would talk to GM or someone at a Dealer and see if you can get that answer.
I understand what you're saying since you know how good your vehicle will be having low mileage etc.
It's piece of mind if you were to buy it out knowing what you have.

Also realize, you can bargain with them when the time comes.
The buy out price is not set in stone.
I know people who bargained at Lease end and bought their vehicle for thousand$ below buy out price.

I have 20 months left on my lease before I have to decide whether to buy out or not.
But the more I think about it I'll most likely go for a new lease and a new vehicle.
No sales Tax, no excise tax and..
no worry my warranty is running out in in another year or so... which is just more money.... either for extended warranty or repair bills if something goes wrong without the warranty.

Piece of mind with the vehicle seems to be what your looking for and Certification as you said would be your deal maker/breaker.
Post if you find out about the Certification.

TSS
04-21-08, 04:26 PM
I have to bring my SLS to the dealer tomorrow, so I will get an answer and post it.

I understand all posts, and appreciate them. I understand it is dollar foolish to do what I am thinking. Point taken and understood. But, it is peace of mind for me and before leasing, it was not uncommon for me to keep a car for 8 or 9 years IF I REALLY LIKED IT. I REALLY LIKE MY LADE, not just any LADE, but my pampered, babied, Lade. If my wife needs a new car and likes it too, the time saved looking for a cheaper one will eat up the cost savings for me. Of course, I will try to negotiate it down, but I have heard this no longer happens. My buyout will be 36,000. I figure, with 30K on the odometer, it will be about 4K too high when the time comes and it is three years old.

scottlma
04-22-08, 12:28 AM
...

I have 20 months left on my lease before I have to decide whether to buy out or not.
But the more I think about it I'll most likely go for a new lease and a new vehicle.
No sales Tax, no excise tax and..
no worry my warranty is running out in in another year or so... which is just more money.... either for extended warranty or repair bills if something goes wrong without the warranty.




Hey Dif,

I am also in Taxachusettes (A.K.A. MA) and am curious about your comment on no sales or excise tax - my lease payments include use (sales) tax, and my town billed GM $1073 in excise tax (which GM quickly sent me a bill for). Is there a secret that i dont know about to avoid the sales and/or excise tax ?

i'd owe you a HUGE one if you can save me one or both of these :worship:

Dif
04-22-08, 01:42 AM
Hey Dif,

I am also in Taxachusettes (A.K.A. MA) and am curious about your comment on no sales or excise tax - my lease payments include use (sales) tax, and my town billed GM $1073 in excise tax (which GM quickly sent me a bill for). Is there a secret that i dont know about to avoid the sales and/or excise tax ?

i'd owe you a HUGE one if you can save me one or both of these :worship:
Hi Scottlma, not sure what happened to you but, . you've got me thinking now.
Maybe I made a mistake about that but here's my situation.

I just looked at my paper work:
My lease is 36 Months @ 10,000 miles a year at $427.93 a month plus Tax added.
Now I'm wondering if it's Sales tax added, I actually pay $439.06 a month. :bigroll:
$427.93 x 36 = $15,405.48 and 5% Sales tax = $770.00
But I'm stumped .. $439.06 minus $427.93 = $11.13 and that times 36 only = $400.68
Maybe I'm paying sales tax but it doesn't figure out right. :banghead:

Now, I haven't received an Excise tax bill, and it's been 16 months.

Maybe I'm all wrong and someone on the board can straighten me out.

I don't think you pay Sales Tax or Excise on something you didn't Buy.
It's a Lease and did not Buy it.
I say that because this was my first ever Lease and after I got the new EXT I kept waiting for the Sales tax and Excise bill.
When it never came I realized ( what I thought anyway ) you don't pay Tax on something you didn't buy.

Also:
I was talking with someone I know that always does a Lease:
We were talking how Mass is strapped for cash and he said in part, it's because more people are leasing now and the State doesn't get to collect all that Sales and Excise Tax.

Anyway if I'm wrong,.. someone fill me in :suspense: