oneboy2c

I am new to this i was just wondering if i can get some help in going about doing this. Some people have told me that you can actually Negociate the buying price. My lease is through Honda finaciial. Thanks for all you help in the future.

S2KenC

I'm leasing my car as well through Honda Financial. Expect a package in the mail 6 months prior to your lease maturity date. In this package, it'll tell you what your options are. Since you're interested in purchasing your vehicle, follow the steps below::

-Obtain a payoff quote by calling (800)708-6555.
-Notify Honda Financial that you intend to purchase
-Provide payment and odometer disclosure statement (form is included in the package)
-Reregister vehicle with DMV

As far as your question about negotiating residual value. This is Honda's response on the FAQ on the envelope that you'll be receiving:

Q: What is "residual value," and is it negotiable?

A: This is the projected value of the vehicle at the end of lease, also known as "end of lease term vehicle value." The residual value is set at the beginning of the lease and is non-negotiable. This value will vary according to the lease terms, mileage allowance, and the vehicle's make and model. Cars that tend to have a high resale value will also have higher residual values, which typically lead to lower lease payments.


Hope that helps.


edit - The FAQ I posted above is Honda's response. As far as actually going through and returning a lease and negotiating with the actual dealer, I have no clue. Check back with me in April

GeorgeP

The residual value can often be negotiated depending on the actual resale value of the vehicle. If the actual value is way below the residual in the lease contract you may get them to reduce the amount since they will lose the money anyway if they take the vehicle back. It depends on the company. Honda finance has in the past refused to change lease residuals. This is probably because Honda's have always been near there residual value targets. I have purchased a lot of cars over the last 20 years. I always run the lease verses purchase numbers and in the end I have never found a lease that was a better deal or even close to a purchase. The average dealer makes 3 times the profit on a lease verses sale contract. I would suggests buying your next car. You will come out better in the end game.

Ubetit

It depends on the vehicle. I negotiated a buyout on a Jeep Grand Cherokee for friend that was $4000 below the residual on the lease contract. They way over estimated the residual on that dog and probably lost money overall.

DERF

GeorgeP Lets compare our two cars. (Lease vs Buy) My S2K is a 2002 same as yours. Leased mine for 48 months/48,000 miles. The car had 8200 miles on her when I leased her. However we fudged the miles a little and said that she had 11,900 because it didn't change the lease end value and I picked up 3,700 free miles.

My purchase price was $24,000 including 48month 48k Bumper to bumper 0 Deductable Warranty.
$400 Total out of pocket at sign up and my payment is $317 month including sales tax.

My buyout at the end of lease is $14,100

AustinS2k2003

Avoid Leasing if you can buy - like george says its a better value to buy. On the numbers you've run above DERF the payoff may be below KBB (you didn't provide your current miles), however you've been paying for the car for 4 years already at $317/mo.

Now 48*317 = 15,216+400+14,100=29,716

Now bad right? Except your car wasn't new when you leased it. I don't know what year you leased your 02, however currently an 02 with 11,900 or 8600 miles retails for 25,150.

For comparo an 04 with 11,900 miles on it retails for $29,050
For comparo an 04 with 11,900 miles on it retails for $29,650

Your lease is about what it should be; you overpaid a few hundred dollars lets say (going with the 04 numbers because I'm assuming you purchased your 02 when it was about a year or so old. Not a bad deal but proof that even your lease seems to have overcharged a bit...not to mention you'll be making payments for say 7 years versus the standard 5 assuming your 'd finance the residual for 3 years.

To answer the original post, in my experiance residuals are rarely negotiable and because the S2000 holds it value rather well there won't be any room to negotiate with because most likely the residual is at what the value of the car is when your lease is up

mosesbotbol

The whole point of the lease is the turn the car in at the end and not deal with buying it back. You're off the hook, and for the same lease price you were paying, you could get a brand new S2000 instead of financing a 3-4 year old used one at a premium price.

My friend leased a SAAB 95 Aero that was totally loaded coming out to around 50K new. He leased it for 3 years for under $500.00 a month and at the end of lease SAAB wanted 23K for the car and value was 18K. If he had re-financed the car (car was so totally mint, most fancy top of the line SAAB in the USA) he would've been so upside down on the car.

He ended up paying less money a month for the car than if he took a loan out for 50K and didn't have to carry a car that was worth much less than its actual value.

You should only lease with the intent to turn the car in. If I was in your position (I will be at some point of my lease), I'd try to turn it in sooner if possible and get into a new car. I heard Honda is tight and doesn't negotiate on the buy back. Unless the residual is below KBB wholesale, it doesn't make sense to refianance the car.

robs04s2k

I leased my 04 with about 6k down for 3 years and 15k miles a year. I am actually in the process right now of selling it and it is blue booking for more than what my current pay off is. I know this doesnt happen often but I should be able to actually make some money on the car after it is paid off. Guess I just got lucky.

mosesbotbol

Basically, you're getting back some of the 6K you put down. The best way to lease is with zero money down. Better to keep the dollars in your pocket than give them to a leasing company on a car you don't even own.

robs04s2k

Yes this is true but I had the money and was looking to get a very low monthly payment which was accomplished.