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Anyone ever buy their Edge after lease end?


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#1 OFFLINE   WingNut

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Posted 16 May 2017 - 02:02 PM

I am about 1 year out from lease end.  This was an A-Plan lease so I got a pretty good deal.  Not sure if I'll qualify for A-Plan this time next year.  Miles aren't an issue since I don't put many on.  I really like my Edge but not sure it'll be worth what the pre-defined residual value is (~$27k.  '15 Sport AWD).

 

 









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#2 OFFLINE   chefduane

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Posted 16 May 2017 - 11:49 PM

I bought my previous Explorer after I had it on a Ford Red Carpet lease.  It really brought down the purchase payment (in effect, the lease was just long term down payment paid out over 36 mos) and you know the mechanical and service history of the vehicle.  You will save the most if you don't finance the remaining balance and pay it off with the money you saved by leasing it in the first place. 


Edited by chefduane, 17 May 2017 - 02:08 AM.

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#3 OFFLINE   akirby

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Posted 17 May 2017 - 07:48 AM

I considered doing the same thing when I had multiple vehicles just to keep payments lower.  You do typically pay more in finance charges depending on how long you finance for at the end of the lease unless you got a killer deal on the lease up front.   The other advantage to doing that is if you don't like the vehicle or just decide not to keep it you can walk away.  Or if the market drops and the buyout is too high you can walk away.


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#4 OFFLINE   enigma-2

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Posted 17 May 2017 - 02:44 PM

You do typically pay more in finance charges depending on how long you finance for at the end of the lease unless you got a killer deal on the lease up front. 


That's getting harder to get, for an Edge or MKX. When you lease, your are contracting for the full amount of the car and paying back only the deprecation. Finance companies used to base the payments on this estimated amount until gas prices caused SUV's to deprecate faster, leaving them to take the car back and sell at a loss. To offset this possibility, they usually charge an additional percent or so on SUV's and the like, for possible accelerated deprecation. Sometimes you can get a better deal near year end to clear the lot, but it's always prudent to run the numbers just to be sure.

The other advantage to doing that is if you don't like the vehicle or just decide not to keep it you can walk away.  Or if the market drops and the buyout is too high you can walk away

Actually, walk away after the settlement by all parties involved.

There's a hidden cost at the termination that most people never consider. All leases have a clause that reads that you will return the car in the same shape that you rented it, minus normal wear and tear.

Normal wear and tear does NOT include door dings, wheel rash, scratches, windshield chips, etc. You, as the lessor are responsible for repairing all of these; whatever wasn't there when it was new. If you don't the dealer or finance company will send the car to a body shop and have everything fixed, on YOUR dime. (And consider how much a new wheel costs). You could easily spend and extra $500 or more at turn-in time.

And the inspection by your dealer is not the last word. You rented from a finance company and they have the last word. After you turn it in and walked away, you can still get a bill from your finance company for something they found and was not fixed by the dealer. And you will pay because it is in tbe contract.

You must consider all the costs when you rent, usually you get by in laying out less money each month (renting advantage), but the cost interest of renting is much higher. Add the up front costs of contract creation and several other hidden costs (sometimes added in by the dealer to run the paper, etc.), and you may be laying out more than you think.

Keeping the car at the end of the lease is the same as buying it on the lot. However you do know all of its previous history and may be able to avoid having to lay out $$ for dings, etc. It all comes down on how long do you intend to keep the car.

Edited by enigma-2, 17 May 2017 - 02:48 PM.

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#5 OFFLINE   WingNut

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Posted 17 May 2017 - 02:54 PM

Thanks for the responses.

 

As for damages, there will be none.  I take very, very good care of my vehicles even if they are leased. So fees at turn in won't be an issue.  I've leased in the past and have never had them come back to me to recoup repair costs. 

 

Hopefully the value keeps so it makes sense.  I checked the paperwork and it would be $26,314 at lease end to purchase.  I'll shop around to see if there are better deals out there on used or what good lease deals they'll have going at the time.  If I could pick up another lease at the same price I'm paying now (A-Plan), I would jump in to another lease for sure since mileage is not an issue for me.


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#6 OFFLINE   akirby

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Posted 17 May 2017 - 02:55 PM

Agreed!



#7 OFFLINE   goatee

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Posted 17 May 2017 - 07:50 PM

I actually did this in 2011.  Let me explain.  I had a 2008 Edge AWD Ltd. with 38,000 miles.  I don't remember how much I put down at the time (been a long time). The 3 year lease was set to expire and I wanted the newer style 2011 Edge.  My end lease purchase price was $18,000 so I bought it.  The dealer then offered me $26K as a trade in for it.  I took the trade in deal and ordered my 2011 Ltd. AWD.  Otherwise I never would have done it.


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#8 OFFLINE   chefduane

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Posted 17 May 2017 - 07:56 PM

My wife had a lease on a Lexus LS430 for a while.  It held its value so well (and she didn't put a lot of miles on it) that at the end of the lease and after the wear/tear charges, blah, blah, the dealership cut us a check for $1200.  No Joke.  And, it was the dealership that I bought my Edge from.  Park Place Lexus of Plano, TX.  Really have no complaints about them.


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#9 OFFLINE   WingNut

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Posted 18 January 2018 - 10:47 AM

So lease end is April. I think by then I'll have 30k max on the clock.  2015 Sport AWD.  401A.  Like the I said before $26k buyout.

 

Been talking to some dealers and haven't seen any lease numbers that really get me excited.  So I may stick with my plan of buying this one.  I've been happy with it.


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#10 OFFLINE   Mikula

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Posted 18 January 2018 - 06:14 PM

I beat the hell out of the last lease i had. but i had no intentions on buying out a base model honda civic  :)

 

since you know exactly how well you've taken care of it, it may be worth the extra cost to buyout rather than pick up a used one/same miles/less money situation.


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#11 OFFLINE   enigma-2

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Posted 18 January 2018 - 07:13 PM

One other consideration to consider is the lease contract will require you to turn in the car in same condition (less normal wear) as when you received it.

This means you will be charged for every ding, scratch, road rash and anything else they find during the return inspection. And not just the dealer, the leasing company (who actualky owns the car) can also find problems and send a separate bill even after the dealer has signed off.

Had a business associate that got "dinged" over $700 when he turned in his Navigator. (And he was fanatical about taking care of his car).
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#12 OFFLINE   Mikula

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Posted 18 January 2018 - 08:14 PM

One other consideration to consider is the lease contract will require you to turn in the car in same condition (less normal wear) as when you received it.

This means you will be charged for every ding, scratch, road rash and anything else they find during the return inspection. And not just the dealer, the leasing company (who actualky owns the car) can also find problems and send a separate bill even after the dealer has signed off.

Had a business associate that got "dinged" over $700 when he turned in his Navigator. (And he was fanatical about taking care of his car).

that is awful. i'd never heard of that.

 

my lease had an allowance for dings/dents/scratches. it had been in a hailstorm and i thought i was screwed. before i turned it in, they sent out an appraiser to value any damages before turn in. i didn't get charged a penny.


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#13 OFFLINE   WingNut

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Posted 18 January 2018 - 09:42 PM

One other consideration to consider is the lease contract will require you to turn in the car in same condition (less normal wear) as when you received it.

This means you will be charged for every ding, scratch, road rash and anything else they find during the return inspection. And not just the dealer, the leasing company (who actualky owns the car) can also find problems and send a separate bill even after the dealer has signed off.

Had a business associate that got "dinged" over $700 when he turned in his Navigator. (And he was fanatical about taking care of his car).

 

Not concerned about that. I take real good care of my car and know of only one possible issue that I'd have fixed up before turning it in.


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#14 OFFLINE   WingNut

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Posted 18 January 2018 - 09:43 PM

that is awful. i'd never heard of that.

 

my lease had an allowance for dings/dents/scratches. it had been in a hailstorm and i thought i was screwed. before i turned it in, they sent out an appraiser to value any damages before turn in. i didn't get charged a penny.

 

I've never been dinged on a lease turn in.  Usually I'm dealing with the dealer on a new car so from their angle it isn't a good idea to start nickle and diming me on dumb stuff.  And if a 3rd party wanted to get super anal, I'd push back until a fair deal was reached.


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#15 OFFLINE   WingNut

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Posted 18 January 2018 - 09:44 PM

I beat the hell out of the last lease i had. but i had no intentions on buying out a base model honda civic  :)

 

since you know exactly how well you've taken care of it, it may be worth the extra cost to buyout rather than pick up a used one/same miles/less money situation.

 

I would have to find one significantly cheaper with a few less miles that was local before considering something like that.


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#16 OFFLINE   omar302

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Posted 19 January 2018 - 08:24 AM

Having a 2015, first year of a major design, I'd suggest not to buy it. Also, you'd be stuck with MFT. Then again, it is all about the value & how good of a value you feel it is.
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#17 OFFLINE   WingNut

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Posted 19 January 2018 - 08:43 AM

Having a 2015, first year of a major design, I'd suggest not to buy it. Also, you'd be stuck with MFT. Then again, it is all about the value & how good of a value you feel it is.

 

MFT is not an issue since I haven't used anything newer.  I have the same system in my other car too.

 

So far...knock on wood...I've haven't had any major issues with my 2015.  

 

But you are right...it all comes down to value.  Just waiting to hear back on some lease prices for a comparable Sport (2018) and then I'll decide the best route.


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#18 OFFLINE   Mikula

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Posted 19 January 2018 - 05:57 PM

Having a 2015, first year of a major design, I'd suggest not to buy it. Also, you'd be stuck with MFT. Then again, it is all about the value & how good of a value you feel it is.

well, you could look at it as the 2015 model year is the fastest model of them all so far. as tested by motortrend (and me at the dragstrip)


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#19 OFFLINE   WingNut

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Posted 24 January 2018 - 02:34 PM

So I've been talking with some dealers on getting in to another lease for a comparable car.  The prices are just ridiculous.  I got one quote for $780/mth LOL.  I have always had a thing for Grand Cherokees so I went in and test drove one.  Talked to a sales guy who wasn't pushy at all and made some decent offers for a lease.  More within acceptable pricing IMO.  Looks like I'll make a switch for a few years.

 

Buying the Edge sounded nice.  I love the car.  But when I started factoring in upcoming costs (Tires, hitch, etc) it just doesn't seem like the right move for me.

 

So for now the plan is to jump in a  Grand Cherokee Limited (Sterling).  


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#20 OFFLINE   Burrcold

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Posted 24 January 2018 - 02:46 PM

So I've been talking with some dealers on getting in to another lease for a comparable car.  The prices are just ridiculous.  I got one quote for $780/mth LOL.  I have always had a thing for Grand Cherokees so I went in and test drove one.  Talked to a sales guy who wasn't pushy at all and made some decent offers for a lease.  More within acceptable pricing IMO.  Looks like I'll make a switch for a few years.
 
Buying the Edge sounded nice.  I love the car.  But when I started factoring in upcoming costs (Tires, hitch, etc) it just doesn't seem like the right move for me.
 
So for now the plan is to jump in a  Grand Cherokee Limited (Sterling).  

Good choice! Nice to get into the current (and last) Grand Cherokee that's still built on the Mercedes ML chassis.
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