Leasing, or the dealer screwing with us?
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Joined: Jul 2006
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From: MIA-> LA
Originally Posted by ruexp67' date='Mar 26 2007, 09:59 AM
Do you know how a lease works?
Yes, he can sign the car over, or pay the residual. Since the residual is LESS than the value of the car, he can take advantage of that equity if he trades it in (assuming he deals with a deslership that will give him what the car is worth.)
Yes, he can sign the car over, or pay the residual. Since the residual is LESS than the value of the car, he can take advantage of that equity if he trades it in (assuming he deals with a deslership that will give him what the car is worth.)
All banks are different, but GENERALLY speaking residual values set at the time when a car is new are in fact HIGHER than the market value of the car at the end of the term. In other words, a bank speculates the future value of a vehicle after X amount of months and X amount of miles, yet the car is usually worth LESS than what they expected. With regards to the S I could be wrong because they hold value fairly well, and my experience is with highline cars.After a quick search the market value for your car is about $21k, NADA says its worth about $20k for trade, and $23,500 for clean retail.
FYI, you could sell your car at any time to anyone if you'd like. The bank will give you a pay-off amount that will be your residual plus whatever payments you have left, and you'll save yourself the disposition fee.
Sorry if that was confusing I'm a little tired and burnt out.
Andres
Joined: Mar 2003
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From: Home
Originally Posted by DRE.' date='Mar 28 2007, 08:11 AM
I am very much aware of how a lease works, I lease/sell cars for a living All banks are different, but GENERALLY speaking residual values set at the time when a car is new are in fact HIGHER than the market value of the car at the end of the term.
All banks are different, but GENERALLY speaking residual values set at the time when a car is new are in fact HIGHER than the market value of the car at the end of the term. In this case, not so much.They assume normal usage, but these cars get far from normal usage. Even on a lease, they tend to be exceptionally well maintained, and tend to not have as many miles on them as a typical car.
The residual on my car is about $16,500 (due next year in March.) I expect my car to be worth FAR more than that at that time.
Joined: Dec 2004
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From: Land of Cincinnati Chili
And as far as the tire ratings go, all W (and for that matter Y) rated tires are Z rated but not all Z rated tires are W or Y rated. Get it? The only issue I might have with the Fusions if I were the dealer is that you got the sizing right. The S-02's are not typical of their indicated size.
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From: Burlington, NC
Not that I think tires should matter when turning a car in, but as long as they are the same size as stock (205/55 and 225/50) the dealer wouldnt have ground to stand on as the tires are the "stock sizes", whether or not the stock S-02 225 is really closer to a 245 or not.
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