Lease Buyout - was: (Who pays for $7500 when leasing?)

[trentr]

Conclusion:

I went to Boardwalk and talked to Wahid and after a bit of discussion, he finally gave in and let me buyout the lease. Wahid tells something on the phone and something else in person. I don't trust this guy. Typical salesman that will get your money if you are not careful. I guess that's how they make money, but I also find him very rude in my opinion. I was still doing the math and he was already insisting that I write the check already. He was very impatient, always seems to be in a hurry. I think this is typical tactic so that you hurry up and write the check or agree on the price and not think about the details. It is not like I write a ~$30K check everyday. This Wahid guy left a bad taste with my dealings with Boardwalk. Anyway, the other people there were very nice. Here are the details of the lease buyout:

(buyout price + 300 + 55) * 9.25% + 15

300 = purchase option fee
55 = doc fee
15 = transfer fee

All in all, cash purchase is $1,260 lower.

 

[TEG]

So, what about the $7500? Did you have to pay that back too since you bought out the lease so soon?

If not this sure seems like a quick way around the tax credit thing if you can just do a $7500 discounted lease then but out the least right away.

 

[Coffee_Slurry]

Here are the details of the lease buyout:

(buyout price + 300 + 55) * 9.25% + 15

300 = purchase option fee
55 = doc fee
15 = transfer fee

All in all, cash purchase is $1,260 lower.

trentr, can you flesh this out a bit? I'm not following your math.

Did you have to pay the 35 remaining monthly payments in one lump sum?
Was the (4.9%?) interest removed from the lease payments?
The lease buyout you outlined above is exactly the one we will face in three years. No surprise there.

I'm more interested in the lump sum that paid off your lease. (Since I'm looking to do the same)

 

[trentr]

If you call NMAC, they will tell you the buyout price. my buyout is $27,884.15 for this month only. It will be lower next month and so forth. The lease buyout in three years will be significantly lower, but then you pay more interest. So, lump sum to purchase the car(title in hand) is ($27,884.15 + 300 + 55) * 9.25% + 15 = $30,866.15

The longer you wait to buyout your lease, the more interest you will have to pay. Just like in a loan. By the way, my interest was like 7%. If you are thinking of buying out your lease, I suggest that you buy it now. I didn't get the whole $7500. It was $1260 lower due ACQ, purchase option fee, transfer title fee, interest, etc. I feel bad about this because I can get the whole amount at tax time. Oh well...