SageBrush
Forum Supporter
Posts: 6266
Joined: Sun Mar 06, 2011 2:28 am
Delivery Date: 13 Feb 2017
Location: NM

Re: Leased Car, selling to CarMax

Fri Mar 26, 2021 10:30 am

Baltneu wrote:
Fri Mar 26, 2021 10:23 am
SageBrush wrote:
Fri Mar 26, 2021 9:58 am
Baltneu wrote:
Fri Mar 26, 2021 7:42 am
You can always buyout lease on the Nissan.

Buyout price is $15,568
Carmax offering $17,400 (22,500 miles on 2018 SL)
Interesting, thanks.

How much is your residual, and your monthly payment ?

I'm presuming these numbers add up, but perhaps not ?
6 payments left on lease
I pay $447 per month.
That includes $8 per month for the extended warranty on the tires.
The residual is what ever it is at a particular time, payment in full by 4/14 is as stated above, $15,568
Huh. I thought 'residual' (as stated at lease inception) is the value of the car at lease end, and the cost to buy the car at lease end.
2013 LEAF 'S' Model with QC & rear-view camera
Bought Jan 2017 from N. California
Two years in Colorado, now in NM
03/18: 58 Ahr, 28k miles
11/18: 56.16 Ahr, 30k miles
09/20: 54.3 Ahr; 38k miles
-----
2018 Tesla Model 3 LR, Delivered 6/2018

Baltneu
Posts: 296
Joined: Sun Oct 07, 2018 8:54 pm
Delivery Date: 06 Oct 2018
Leaf Number: 313633

Re: Leased Car, selling to CarMax

Fri Mar 26, 2021 10:37 am

SageBrush wrote:
Fri Mar 26, 2021 10:30 am
Baltneu wrote:
Fri Mar 26, 2021 10:23 am
SageBrush wrote:
Fri Mar 26, 2021 9:58 am

Interesting, thanks.

How much is your residual, and your monthly payment ?

I'm presuming these numbers add up, but perhaps not ?
6 payments left on lease
I pay $447 per month.
That includes $8 per month for the extended warranty on the tires.
The residual is what ever it is at a particular time, payment in full by 4/14 is as stated above, $15,568
Huh. I thought 'residual' (as stated at lease inception) is the value of the car at lease end, and the cost to buy the car at lease end.
The residual at lease end is $13,190.30
2018 Gun Metallic Gray, SL, Technology Package, etc.

voltamps
Posts: 132
Joined: Thu Dec 17, 2020 6:13 pm
Delivery Date: 14 Dec 2020

Re: Leased Car, selling to CarMax

Sun Mar 28, 2021 9:32 am

Good facts. CarMax does need about $1800 margin between what they buy a car for and what they sell it for on their lot. Smart to check to see if the residual is lower or higher, as it was just a guess years earlier about what the used car would be worth on lease-return.

On this Leaf in this thread, the driver makes out great: Sell it to CarMax and pocket the diff.

I never even questioned it with an '18 Equinox I lease-returned a few months ago, although in my case I think the KBB value matched up well to residual.
2020 Leaf SV
2016 Ford Focus Electric (traded in at 34k miles, 5 years)

alozzy
Posts: 1937
Joined: Fri Jan 20, 2017 4:25 pm
Delivery Date: 18 Jan 2017
Location: Vancouver, BC
Contact: Website

Re: Leased Car, selling to CarMax

Sun Mar 28, 2021 11:39 am

So you are in it for $447 x 36 payments = $16,092 and CarMax is offering you $17,400 ...

How much did you put down originally? I'm curious what the original "sale" price was on this lease...

It would seem that your total cost on the lease is pretty minimal, you seem to have done very well out of it. We definitely don't get deals like this where I live.
Vancouver, CA owner of a 2013 Ocean Blue SV + QC, purchased 01/2017 in WA
Zencar 12/20/24/30A L1/L2 portable EVSE
1-1/4" Curt #11396 hitch
After market, DIY LED DRLs
LeafSpy Pro + Konnwei KW902 ELM327 BT OBDII dongle
Loving my first BEV :D

Baltneu
Posts: 296
Joined: Sun Oct 07, 2018 8:54 pm
Delivery Date: 06 Oct 2018
Leaf Number: 313633

Re: Leased Car, selling to CarMax

Sun Mar 28, 2021 1:26 pm

alozzy wrote:
Sun Mar 28, 2021 11:39 am
So you are in it for $447 x 36 payments = $16,092 and CarMax is offering you $17,400 ...

How much did you put down originally? I'm curious what the original "sale" price was on this lease...

It would seem that your total cost on the lease is pretty minimal, you seem to have done very well out of it. We definitely don't get deals like this where I live.
I would have to look at the lease agreement to see what I paid. It was a loaded SL.
I put $0 down. Payoff is $15,568.63

I looked at CarMax selling my car, realizing they need to make about $1800+ on the deal (the difference between what they paid me and what they sell it for). My offer is $17,400, their website shows my car, comparable model and mileage selling for about $19,5K to $20K. Their asking prices are higher than their competition (Carvana, etc). They must get it if they are paying me that money.

As I stated earlier in this thread, the part I am nervous about is their ability to actually do this deal, that is to pay off my Leaf to Nissan Finance. Carvana says they don’t deal with leases with Nissan. I spoke to the people at this CarMax I am going to (twice) and they said they pay off Nissan leases every day! One dealer told me it could only be done thru a Nissan dealer, but we tend not to believe a lot of their lies. If I went thru the dealer, and he sent me an invoice to do it, it is padded with all sorts of stuff, plus I have to pay state sales tax to get the title, then turn around to sell it, and to boot, he said the Title and Registration in my state is done now all thru the mail so it would take 60-90 days to get the Title. In that case, I wont do it.

My appt with CarMax is Thursday, April 1. I will report back. Hope it is not an April Fools joke.
2018 Gun Metallic Gray, SL, Technology Package, etc.

SageBrush
Forum Supporter
Posts: 6266
Joined: Sun Mar 06, 2011 2:28 am
Delivery Date: 13 Feb 2017
Location: NM

Re: Leased Car, selling to CarMax

Mon Mar 29, 2021 7:18 am

alozzy wrote:
Sun Mar 28, 2021 11:39 am
So you are in it for $447 x 36 payments = $16,092 and CarMax is offering you $17,400 ...

How much did you put down originally? I'm curious what the original "sale" price was on this lease...

It would seem that your total cost on the lease is pretty minimal, you seem to have done very well out of it. We definitely don't get deals like this where I live.
The way you are adding things up does not make sense to me.

$16,092 (plus any day #1 costs) is for use of vehicle for 36 months
$17,400 is to buy the car from Nissan + some money to OP
2013 LEAF 'S' Model with QC & rear-view camera
Bought Jan 2017 from N. California
Two years in Colorado, now in NM
03/18: 58 Ahr, 28k miles
11/18: 56.16 Ahr, 30k miles
09/20: 54.3 Ahr; 38k miles
-----
2018 Tesla Model 3 LR, Delivered 6/2018

Flyct
Posts: 429
Joined: Tue Nov 03, 2015 12:04 am
Delivery Date: 05 Dec 2019
Leaf Number: 310009
Location: Bradenton, Florida, US

Re: Leased Car, selling to CarMax

Mon Mar 29, 2021 8:14 am

Sometimes the stars align and you can make out getting rid of a newer car.

I just got an offer from Carvana to buy my 2019 F-150 for almost $10,000 more than I paid for it new in December 2019.

After dealer discount, factory holiday discount, rebates and a $3,000 PCO I paid $23.8k for a $44.5k truck. Carvana offered $33.3k today.
2020 Leaf SL Plus (replaced totaled 2019:SL+)
2015 Lexus RX450h Hybrid SUV
2019 F-150 XLT Extended cab
2020 Ford F-350 Lariat Ultimate Crew Cab Short Bed Diesel- Tow vehicle
2017 Grand Design Reflection 337RLS 5th Wheel RV

alozzy
Posts: 1937
Joined: Fri Jan 20, 2017 4:25 pm
Delivery Date: 18 Jan 2017
Location: Vancouver, BC
Contact: Website

Re: Leased Car, selling to CarMax

Mon Mar 29, 2021 9:33 am

SageBrush wrote:
Mon Mar 29, 2021 7:18 am
alozzy wrote:
Sun Mar 28, 2021 11:39 am
So you are in it for $447 x 36 payments = $16,092 and CarMax is offering you $17,400 ...

How much did you put down originally? I'm curious what the original "sale" price was on this lease...

It would seem that your total cost on the lease is pretty minimal, you seem to have done very well out of it. We definitely don't get deals like this where I live.
The way you are adding things up does not make sense to me.

$16,092 (plus any day #1 costs) is for use of vehicle for 36 months
$17,400 is to buy the car from Nissan + some money to OP
I absolutely agree, it doesn't make sense to me either. The OP is saying that, to date, he's paid a grand total of $16,092. He claims that CarMax is giving him a check for $17,400. He doesn't even own the car, so it makes no sense to me at all why he gets that check - it should never go through his hands.

Obviously, this can't be right, but I honestly don't really care as there's no way he essentially pays nothing to use a new car for three years.

No need to post back though, this doesn't pass the common sense test. I don't need to understand the minutiae to know that for all but a few edge cases, leases are a rip-off
Vancouver, CA owner of a 2013 Ocean Blue SV + QC, purchased 01/2017 in WA
Zencar 12/20/24/30A L1/L2 portable EVSE
1-1/4" Curt #11396 hitch
After market, DIY LED DRLs
LeafSpy Pro + Konnwei KW902 ELM327 BT OBDII dongle
Loving my first BEV :D

Baltneu
Posts: 296
Joined: Sun Oct 07, 2018 8:54 pm
Delivery Date: 06 Oct 2018
Leaf Number: 313633

Re: Leased Car, selling to CarMax

Mon Mar 29, 2021 9:45 am

Let me explain it again:

I have a 36 month lease, paying $447 per month, 6 months left on lease, so for 30 months have paid $13,410.
In October when lease is up I can walk away.
However, Nissan Finance gives me buy price now for $15, 568.
CarMax has given me written offer for buying the car now for $17,400.
I walk away with a check for $1,832.
That is all there is to it, no more.
I can get out early and have some equity.

The only issue here is will CarMax who said on 2 phone calls say they can buy the lease out, will they really be able to do it? That is all I posted about. Other people have muddied this post with their own stuff.

I have appt on 4/1 with CarMax, will report back. How is that? OK
2018 Gun Metallic Gray, SL, Technology Package, etc.

SageBrush
Forum Supporter
Posts: 6266
Joined: Sun Mar 06, 2011 2:28 am
Delivery Date: 13 Feb 2017
Location: NM

Re: Leased Car, selling to CarMax

Mon Mar 29, 2021 10:06 am

alozzy wrote:
Mon Mar 29, 2021 9:33 am

I absolutely agree, it doesn't make sense to me either. The OP is saying that, to date, he's paid a grand total of $16,092. He claims that CarMax is giving him a check for $17,400. He doesn't even own the car, so it makes no sense to me at all why he gets that check - it should never go through his hands.

Obviously, this can't be right, but I honestly don't really care as there's no way he essentially pays nothing to use a new car for three years.
Now I understand your issue. Ignore the bureaucracy and jump to the bottom line: CarMax gets for car for ~ 15.5k to Nissan and ~ 1.5k to OP.

The best part of this deal from OP's POV is getting out of his lease early at Carmax's expense

--
I remember calculating back in the day when the 40 kWh LEAFs were new and fresh that people were paying ~ $450 a month inclusive. That lead to current low residual values. Certainly better for Nissan, and maybe better for the CarMax's of the world if they do not overpay. My *opinion* is that Carmax overpaid on this deal because they agreed to swallow the rest of the lease and because they gave OP cash. If they had paid $13k at lease end they would be in a position to profit nicely.

Think about this arithmetic: The revenue that went to Nissan included
1. 7,500 federal tax credit
2. 450*36 lease payments
3. 13,100 end of lease car purchase

That is almost $37k, so darn close to MSRP with free financing thrown in.

OP enabled this 'happy ending' by paying $450 for 30 months, so yeah, I'm in your camp when it comes to leases. Contrary examples exist but this thread I think reflects what is common.
2013 LEAF 'S' Model with QC & rear-view camera
Bought Jan 2017 from N. California
Two years in Colorado, now in NM
03/18: 58 Ahr, 28k miles
11/18: 56.16 Ahr, 30k miles
09/20: 54.3 Ahr; 38k miles
-----
2018 Tesla Model 3 LR, Delivered 6/2018

Return to “General / Main Owners Forum”