A friend of mine leased a car and want to purchase. They like car and are over on miles anyway so this is their best option. The dealer is saying the dealer wants to charge them buyout price + doc fee + markup fee? Doc fee sounds legit right not sure of what this markup fee is. could it be an aquisition fee? I dont have docs in front of me but will in a couple of days. Shouldnt all these fees be on their original docs. Leased through Ford motor credit. They called Ford and Ford said the markup fee is at dealers discretion. Please advise
Purchasing a car after lease
- Thread starter raaizin
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Consider it additional dealer profit. I would try to negotiate it downwards or reconsider whether I should buy out the lease. We don't have enough info to help determine if the additional miles accumulated penalty would be offset by the markup fee.
Well, I haven't heard about additional markup.
Check the contract... Everything is negotiable.
Sounds like a bunch of baloney to me.
What is the car and dealership?
Check the contract... Everything is negotiable.
Sounds like a bunch of baloney to me.
What is the car and dealership?
Unless this is a non-standard lease, they should just have to pay the residual value in the lease contract plus any applicable fees from the leasing company. I've not heard of any other arrangement when buying out a leased car.
I could be off base, but the original lease agreement lays out the terms for end of lease purchase or early purchase. I would be surprised if a dealer could legitimately charge a documentation fee and a dealer markup fee. It sounds like baloney to me.
Originally Posted by raaizin
Car is a Ford Fusion. I will wait till I see all documents and see how to proceed
Recommend seeing what paying overage mileage is and buying car at standard market rate vs the offer. Once you know this you can negotiate buyout. They hope you accept whatever they offer.
Fusions are not a hot commodity used whatsoever like a compact SUV and they may end up auctioning it off. So you may have more negotiating wiggle room..
Car is a Ford Fusion. I will wait till I see all documents and see how to proceed
Recommend seeing what paying overage mileage is and buying car at standard market rate vs the offer. Once you know this you can negotiate buyout. They hope you accept whatever they offer.
Fusions are not a hot commodity used whatsoever like a compact SUV and they may end up auctioning it off. So you may have more negotiating wiggle room..
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Originally Posted by madRiver
Originally Posted by raaizin
Car is a Ford Fusion. I will wait till I see all documents and see how to proceed
Recommend seeing what paying overage mileage is and buying car at standard market rate vs the offer. Once you know this you can negotiate buyout. They hope you accept whatever they offer.
Fusions are not a hot commodity used whatsoever like a compact SUV and they may end up auctioning it off. So you may have more negotiating wiggle room..
Yeah, it's only a Fusion. There's about 300k of them made every year. Dealer can have it if that's how they're going to play it.
Originally Posted by raaizin
Car is a Ford Fusion. I will wait till I see all documents and see how to proceed
Recommend seeing what paying overage mileage is and buying car at standard market rate vs the offer. Once you know this you can negotiate buyout. They hope you accept whatever they offer.
Fusions are not a hot commodity used whatsoever like a compact SUV and they may end up auctioning it off. So you may have more negotiating wiggle room..
Yeah, it's only a Fusion. There's about 300k of them made every year. Dealer can have it if that's how they're going to play it.
Originally Posted by raaizin
A friend of mine leased a car and want to purchase.
I guess I don't understand. They rented (leased) a car for what? Three years? Now they want to buy it? Guessing they'll finance it for another 4 years?
Ya'lls friend needs a gift certificate to summer school home economics class at the local middle school.
A friend of mine leased a car and want to purchase.
I guess I don't understand. They rented (leased) a car for what? Three years? Now they want to buy it? Guessing they'll finance it for another 4 years?
Ya'lls friend needs a gift certificate to summer school home economics class at the local middle school.
The buyout price is probably a little high. With the plethora of used cars for sale I suggest you let your buddy turn it in to the dealer and then buy it when the dealer lists the car at a lower price.
Originally Posted by Fawteen
Originally Posted by raaizin
A friend of mine leased a car and want to purchase.
I guess I don't understand. They rented (leased) a car for what? Three years? Now they want to buy it? Guessing they'll finance it for another 4 years?
Ya'lls friend needs a gift certificate to summer school home economics class at the local middle school.
I have leased a car(BMW 323ic) and company paid that. At the end I went out and bought it. Point is you don't know situation or terms.
Originally Posted by raaizin
A friend of mine leased a car and want to purchase.
I guess I don't understand. They rented (leased) a car for what? Three years? Now they want to buy it? Guessing they'll finance it for another 4 years?
Ya'lls friend needs a gift certificate to summer school home economics class at the local middle school.
I have leased a car(BMW 323ic) and company paid that. At the end I went out and bought it. Point is you don't know situation or terms.
Originally Posted by mk378
Ownership of a leased car does return to the original dealer. They call the shots.
Not in any of the leases I've ever done. You can do the buyout yourself or through any dealer's finance department,
In regards to the OP's question, that "markup fee" sounds like a load of BS. A doc fee is legit if you are using a dealer to do the legwork, setting up financing for you. Regardless, all the buyout terms are spelled out in the contract that was signed the day the vehicle was leased.
Ownership of a leased car does return to the original dealer. They call the shots.
Not in any of the leases I've ever done. You can do the buyout yourself or through any dealer's finance department,
In regards to the OP's question, that "markup fee" sounds like a load of BS. A doc fee is legit if you are using a dealer to do the legwork, setting up financing for you. Regardless, all the buyout terms are spelled out in the contract that was signed the day the vehicle was leased.
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Originally Posted by Fawteen
Originally Posted by raaizin
A friend of mine leased a car and want to purchase.
I guess I don't understand. They rented (leased) a car for what? Three years? Now they want to buy it? Guessing they'll finance it for another 4 years?
Ya'lls friend needs a gift certificate to summer school home economics class at the local middle school.
I think you need to attend because you're making a lot of assumptions. When was the last time you looked at a lease? Try this site: leasehackr.com.
Basically the manufacturer tends to subsidize the cost of the lease these days. It's pretty apparent at lease turn in when the residual is higher than the market value. A high residual means that the leasee didn't pay for all the depreciation that took place.
Originally Posted by raaizin
A friend of mine leased a car and want to purchase.
I guess I don't understand. They rented (leased) a car for what? Three years? Now they want to buy it? Guessing they'll finance it for another 4 years?
Ya'lls friend needs a gift certificate to summer school home economics class at the local middle school.
I think you need to attend because you're making a lot of assumptions. When was the last time you looked at a lease? Try this site: leasehackr.com.
Basically the manufacturer tends to subsidize the cost of the lease these days. It's pretty apparent at lease turn in when the residual is higher than the market value. A high residual means that the leasee didn't pay for all the depreciation that took place.
Originally Posted by Fawteen
Originally Posted by raaizin
A friend of mine leased a car and want to purchase.
I guess I don't understand. They rented (leased) a car for what? Three years? Now they want to buy it? Guessing they'll finance it for another 4 years?
Ya'lls friend needs a gift certificate to summer school home economics class at the local middle school.
I always wonder why someone would post a comment like this. Instead of giving some useful input they act like they have never made a bad move. If you do not have something constructive to add dont reply to the thread.
Originally Posted by raaizin
A friend of mine leased a car and want to purchase.
I guess I don't understand. They rented (leased) a car for what? Three years? Now they want to buy it? Guessing they'll finance it for another 4 years?
Ya'lls friend needs a gift certificate to summer school home economics class at the local middle school.
I always wonder why someone would post a comment like this. Instead of giving some useful input they act like they have never made a bad move. If you do not have something constructive to add dont reply to the thread.
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