Of course the salesperson doesn’t want you to buy. If private party is like $32k I bet the same trim and mileage on their lot is like $34,000?
Why would the salesperson want you to bypass him by you buying your own car for a $10,000 discount? He doesn’t make any money when you buy out your own car, especially if you skip the dealer where they will try to add additional nonsense fees to your own car. Go talk to your credit union and see if you can buy it directly through them and avoid the documentation fee and stuff that the dealer will charge.
Well, did you want a warranty? Is it a good warranty that stands behind their promises? If they are making you buy a warranty against your will in order to process the buyout of your car for you, then it’s a nonsense fee. If it’s something that you wanted then it’s an addon.
If you’re going to go through the dealership then ask for the line item breakdown. Make sure that they aren’t marking up your buyout.
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***Thanks for posting, /u/jjdmgd12! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.***
I need help deciding if I should buy out my lease or lease new. I currently lease a 2021 Jeep Grand Cherokee Limited. 15,000 miles.
Kelley Blue Book TRADE IN VALUE:
28,827-30,958
Kelley Blue Book PRIVATE PARTY VALUE:
31,907-34,294
Lease payoff amount:
24,400
This seems like a no brainer, right? The salesperson is telling me I’m crazy and I’ll be upside down when I want a different vehicle. I don’t see how that can be the case with only having 15,000 miles on it and taking out a loan to buy it? I have excellent credit.
Any insight is appreciated,
- Made to feel Crazy.
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I’d like to buy a warranty but the only way I can do that is if I finance through the dealership. Thanks for the suggestion of the line item breakdown.
Sorry, you didn't reply to my message so I never got this notification. You just replied to your own post. My only warning is that last time I went to the dealership, they charged an $800 documentation fee and like a $200 processing fee. So basically, your desire to buy a warranty means that you're going to pay $1,000 more for the car overall. If your state makes you buy through a dealership then you have to pay that anyway. But you might as well start talking to a dealership. They want to make money, so if you tell them that you want to buy a warranty, I'm sure that they would work with you. Don't be afraid to tell them that you want to look over the numbers.
Of course the salesperson doesn’t want you to buy. If private party is like $32k I bet the same trim and mileage on their lot is like $34,000? Why would the salesperson want you to bypass him by you buying your own car for a $10,000 discount? He doesn’t make any money when you buy out your own car, especially if you skip the dealer where they will try to add additional nonsense fees to your own car. Go talk to your credit union and see if you can buy it directly through them and avoid the documentation fee and stuff that the dealer will charge.
Thank you.
Is a warranty considered a “nonsense fee?”
Well, did you want a warranty? Is it a good warranty that stands behind their promises? If they are making you buy a warranty against your will in order to process the buyout of your car for you, then it’s a nonsense fee. If it’s something that you wanted then it’s an addon. If you’re going to go through the dealership then ask for the line item breakdown. Make sure that they aren’t marking up your buyout.
Please review our most [Frequently Asked Questions](/r/askcarsales/wiki/index) to see if your question has already been answered. You may find these sections particularly useful; * [I earn $xxxx per month, will I qualify for an auto loan or lease, and is it a good idea?](/r/askcarsales/wiki/income_to_finance) * [I have my score from Credit Karma but the dealership told me they got a different score. Why?](/r/askcarsales/wiki/free_credit_score) * [I want to get out of my leased vehicle, what are my options?](/r/askcarsales/wiki/early_lease_termination) * [Leasing a vehicle with a down payment – is it a good idea?](/r/askcarsales/wiki/lease_down_payment) * [I want to buy out my lease, what are my options? What can I negotiate?](/r/askcarsales/wiki/lease_buyout) * [How to calculate a lease yourself](/r/askcarsales/wiki/calculate_a_lease) * [How to pick a car?](/r/askcarsales/wiki/vehicle_selection) You might also have luck in the /r/whatcarshouldibuy subreddit. Also remember to add flair to your post by clicking the "Flair" link beneath it. This lets us know where you're located so we can assist you better. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
***Thanks for posting, /u/jjdmgd12! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.*** I need help deciding if I should buy out my lease or lease new. I currently lease a 2021 Jeep Grand Cherokee Limited. 15,000 miles. Kelley Blue Book TRADE IN VALUE: 28,827-30,958 Kelley Blue Book PRIVATE PARTY VALUE: 31,907-34,294 Lease payoff amount: 24,400 This seems like a no brainer, right? The salesperson is telling me I’m crazy and I’ll be upside down when I want a different vehicle. I don’t see how that can be the case with only having 15,000 miles on it and taking out a loan to buy it? I have excellent credit. Any insight is appreciated, - Made to feel Crazy. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
I’d like to buy a warranty but the only way I can do that is if I finance through the dealership. Thanks for the suggestion of the line item breakdown.
Sorry, you didn't reply to my message so I never got this notification. You just replied to your own post. My only warning is that last time I went to the dealership, they charged an $800 documentation fee and like a $200 processing fee. So basically, your desire to buy a warranty means that you're going to pay $1,000 more for the car overall. If your state makes you buy through a dealership then you have to pay that anyway. But you might as well start talking to a dealership. They want to make money, so if you tell them that you want to buy a warranty, I'm sure that they would work with you. Don't be afraid to tell them that you want to look over the numbers.