End-of-lease buyout

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NyackRob79

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Just wondering if anyone here has experience with end-of-lease buyout. Our 2018 Expy lease ends next month. It's a 2018 Platinum MAX 4x4. Buyout price is $40,818. Kelley Blue Book values for private party sale are in mid $50k. Sounds like a no-brainer.

I'm assuming that since Ford Financial technically owns the vehicle and sets the price, dealer can't legally add any ADM to this transaction?

Thanks for your help guys. First time doing a lease buyout, and want to make sure I've got all the details beforehand.
 

rs4-380

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The buyout is stated in your lease contract. Dealer doesn't set that (although they will add in a doc and any title fees).

I just did this in September. My buyout was similar to yours and I ended up flipping the car to vroom for 52k.
 

Going_Going_Gone

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Fortunately for you, that figure is a part of the lease contract; and it was written thinking the market would be "normal" at lease end. Lucky you
 
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NyackRob79

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I may very well just end up keeping it. It’s our family hauler. I could flip it and make an easy $13k but I’d be without a car. Getting a new/used one to replace it would have me lose whatever profit I made by paying a markup.

Just ordered a JMS module. Now that it’s out of warranty, I might as well turn 400hp into 460hp to make my highway passes safer :)
 

rs4-380

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I heard Vroom does not buy lease vehicle anymore.
No 3rd parties buy out Ford leases because ford doesn't permit 3rd party buyouts. That's why you have to buy it out yourself then flip it if you want to take advantage of any equity. Paying taxes does impact the profit but values are so high right now if you started a lease before the pandemic you probably still have equity after factoring in taxes and fees.
 

Anerbe

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normally on the domestics in the past, the residual is more than the market / auction price, as they use this to improve the lease terms, combined with the fact that the domestics historically dropped in value quite dramatically used. i remember thinking about buying my Grand Cherokee off lease, to find out I can buy in market 5K cheaper. I asked if they could send to auction, and I buy from there, but unfortunately, its only available to dealers.

use this market to your advantage - buy and flip.
 

Viper10000

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With the dealer I use, if it’s more than 90 days from the last day of lease, then the dealer can buy it back from you. If you have 13k in equity in that truck, and are more than 90 days away from lease end, you could trade it in and use the equity on a new vehicle. Just another option.
 

Goofy173

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I would buyout any lease truck right now. You can easily trade-in for bunches more. My 2011 expy has increased almost double since a year ago
 

3rd Expyowner123

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The determination of your lease payment factors initial purchase cost less residual value at lease end plus interest. You paid for your depreciation to the buyout amount. No windfall there. However since the actual value is significantly higher than the lease estimated, that difference is a windfall as long as you do not just turn the truck back in!
 

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