I leased my 2005 S2000 back in Sept. 2005, so I still have another 2 1/2 years before my lease is up. The residual value as stated on the lease agreement is $18.5k.

I was wondering is it possible to negotiate the residual value down if I am going to purchase the car after the lease?

 

You can negotiate anything. All that can happen is they say "no".

 

The way I understand it is that you can negotiate the residual at the beginning, but once the contract is in, you can't. However, the way Mike above stated it makes total sense. They can say no, or you can hand the car back. So sure, why not?

 

Well the lease contract says "Estimated Residual Value". The reason why I ask is, if I go to the salesman and say I want to buy the car but at X price. If they say no you can't negotiate the price, I want to be sure that they are not bullshitting me b.c I might have offered to buy the car at too low of a price.

 

im 99% sure u can negotiate the price. Contract means nothing.

basic contract law: if both parties agree to change the terms of the contract, the previous contract is voided and a new contract is formed.

 

Like I said, all that can happen is they say no.

You set a price you are prepared to walk away from. If they say they no, then walk away. It's simple.

The complicated part is if your "walk away" price is actually the residual value already agreed to. In that case, you have to try and bluff them. Make them think you will walk away, and see if they deal or if they call your bluff.

 

I have not done this myself but according to my insurance agent, this has been done by someone he knows. I guess Honda Finance would rather give you a break on the car rather than take it back and deal with the cost of re-selling the car.

 

if you talk to the right person you can negotiate. The right person isn't the person who answers the phone, though. they have no power.

 

That completely depends on how close the estimated residual value is to the real market-based residual value, and in which direction it is off.

 

it has nothing to do with any salesperson; its the finance company. Supply and demand determines if the real market price is below or above the buyout figure. You can guess what happens from there, yeah.




edited: no need for swearing here