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Old 01-21-2019, 01:01 PM
 
1,710 posts, read 1,623,910 times
Reputation: 934

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I have a leased Cadillac. It has another year or so left on it till expiration. Last week I was forwarded a random email chain from the sales department of my dealership asking me to call them asap because they have low pre-owned inventory of my vehicle. Basically, what I understood from their email was that my make and model was in demand in pre-owned dept and they have a shortage of it at the dealership It had a link which asked for my phone number. I didnt enter my phone number but since I have leased the vehicle from the dealership, they followed up next day with phone calls and left a voicemail.

I have leased several vehicles in the past and after 2 yrs or so I start getting offers to return or sell the vehicle or upgrade or something similar. I wanted to know if someone knew what happens if they followed through on this process. I have no exceeded the allocated miles and up to date on the service.

1) Can someone sell/return their car before the lease term ends. I am not sure if a vehicle could be sold when its on lease but why would a dealership ask me to stop by when they know I have another year or so left on the vehicle?

2) If they buy the vehicle do they just pay off the remaining balance of my vehicle (lease payment X # of months left)? Am I free to walk away or do I have an obligation to lease another vehicle from them.

I am not good in working with sales and I wanted to know if anyone had any experience with such transaction. I didn't want to call them without doing my due diligence.

Thanks in advance.
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Old 01-21-2019, 01:08 PM
 
Location: Aurora Denveralis
8,193 posts, read 2,869,843 times
Reputation: 12262
It's a scam.

They will make less from the remainder of your lease than they will from even the most lavish and giving new lease they sign you to... and then, yes, they get an even newer CPO car to resell at a higher profit.
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Old 01-21-2019, 02:08 PM
 
78,203 posts, read 33,331,609 times
Reputation: 15638
If you have leased as often as you say, you know how this works.
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Old 01-21-2019, 02:10 PM
 
Location: Aurora Denveralis
8,193 posts, read 2,869,843 times
Reputation: 12262
Quote:
Originally Posted by pknopp View Post
If you have leased as often as you say, you know how this works.
Not necessarily. A 'happy customer' understanding of leasing is nowhere near a nuts-and-bolts understanding, and it's easy to take these blue-eyed pitches at face value.
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Old 01-21-2019, 02:11 PM
 
476 posts, read 360,577 times
Reputation: 493
Quote:
Originally Posted by TexasTony View Post
I have a leased Cadillac. It has another year or so left on it till expiration. Last week I was forwarded a random email chain from the sales department of my dealership asking me to call them asap because they have low pre-owned inventory of my vehicle. Basically, what I understood from their email was that my make and model was in demand in pre-owned dept and they have a shortage of it at the dealership It had a link which asked for my phone number. I didnt enter my phone number but since I have leased the vehicle from the dealership, they followed up next day with phone calls and left a voicemail.

I have leased several vehicles in the past and after 2 yrs or so I start getting offers to return or sell the vehicle or upgrade or something similar. I wanted to know if someone knew what happens if they followed through on this process. I have no exceeded the allocated miles and up to date on the service.

1) Can someone sell/return their car before the lease term ends. I am not sure if a vehicle could be sold when its on lease but why would a dealership ask me to stop by when they know I have another year or so left on the vehicle?

2) If they buy the vehicle do they just pay off the remaining balance of my vehicle (lease payment X # of months left)? Am I free to walk away or do I have an obligation to lease another vehicle from them.

I am not good in working with sales and I wanted to know if anyone had any experience with such transaction. I didn't want to call them without doing my due diligence.

Thanks in advance.
The only car I ever leased I traded in a year early in a purchase for a used auto. I didnít care what they did with that car as long as I didnít have negative equity. Call the finance company your car is leased with and ask them what your balance is and the residual value of the car. Once you know that you can understand exactly what the dealer is offering you vs what you owe just like If you had a standard trade in.
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Old 01-21-2019, 02:12 PM
 
78,203 posts, read 33,331,609 times
Reputation: 15638
Quote:
Originally Posted by Quietude View Post
Not necessarily. A 'happy customer' understanding of leasing is nowhere near a nuts-and-bolts understanding, and it's easy to take these blue-eyed pitches at face value.
Once, twice maybe. Several? No.

Besides this is simply the same post, posted here every week or so.
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Old 01-21-2019, 02:17 PM
 
Location: Aurora Denveralis
8,193 posts, read 2,869,843 times
Reputation: 12262
Quote:
Originally Posted by pknopp View Post
Once, twice maybe. Several? No.
You'd be surprised.

Quote:
Besides this is simply the same post, posted here every week or so.
Well, there's generally less repetition here than on "social media," where the posts have the lifespan of a mayfly but the topics live forever.

And not everyone has gotten the message about dealerships.
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Old 01-21-2019, 02:30 PM
 
Location: Raleigh
8,212 posts, read 6,095,709 times
Reputation: 11419
Quote:
Originally Posted by TexasTony View Post
I have a leased Cadillac. It has another year or so left on it till expiration. Last week I was forwarded a random email chain from the sales department of my dealership asking me to call them asap because they have low pre-owned inventory of my vehicle. Basically, what I understood from their email was that my make and model was in demand in pre-owned dept and they have a shortage of it at the dealership It had a link which asked for my phone number. I didnt enter my phone number but since I have leased the vehicle from the dealership, they followed up next day with phone calls and left a voicemail.

I have leased several vehicles in the past and after 2 yrs or so I start getting offers to return or sell the vehicle or upgrade or something similar. I wanted to know if someone knew what happens if they followed through on this process. I have no exceeded the allocated miles and up to date on the service.

1) Can someone sell/return their car before the lease term ends. I am not sure if a vehicle could be sold when its on lease but why would a dealership ask me to stop by when they know I have another year or so left on the vehicle?Its a loan on the car same as any other. There is a payoff amount. That has to be satisfied

2) If they buy the vehicle do they just pay off the remaining balance of my vehicle (lease payment X # of months left)? Am I free to walk away or do I have an obligation to lease another vehicle from them.That depends on the deal you negotiate. If there truly is a shortage of your car, they will cut you a check for it.

I am not good in working with sales and I wanted to know if anyone had any experience with such transaction. I didn't want to call them without doing my due diligence.

Thanks in advance.
Not a scam, but probably an attempt to get oyu to lease/buy another car from them.

A lease is no different than an outstanding note on a car. The car is worth $X. The payoff amount is $Y. If X is greater, you have equity the same as you would if you bought it.
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Old 01-21-2019, 02:47 PM
 
Location: Raleigh
8,212 posts, read 6,095,709 times
Reputation: 11419
Quote:
Originally Posted by Quietude View Post
It's a scam.

They will make less from the remainder of your lease than they will from even the most lavish and giving new lease they sign you to... and then, yes, they get an even newer CPO car to resell at a higher profit.
"They" the dealer doesn't make anything really from the lease itself vs a financed purchase. It generally isn't inherently better for them to sell it on lease vs to sell it financed through Capital One or Toyota Financial. To them, its the same; They own the car for $28,000, They sell it for $29,000, the put through the paperwork and the bank sends them a check.

Dealers "like" leases when the manufacturer puts through aggressive lease incentives to sell new cars because it helps sell new cars and hit their targets so the owner and the GM get their bonus $$$. They generally could care less if you lease it or finance it.

Quote:
Originally Posted by Quietude View Post
Not necessarily. A 'happy customer' understanding of leasing is nowhere near a nuts-and-bolts understanding, and it's easy to take these blue-eyed pitches at face value.
I think a lot of people actually do have a decent understanding of it. They lie to themselves more than the dealer lies to them. A lease is payment for the depreciation + "Interest" (called the money factor.) At the end of it, you give the bank their car back.
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Old 01-21-2019, 03:31 PM
 
2,082 posts, read 3,571,026 times
Reputation: 2059
Ask them how much more are they willing to pay you if you return it before term and with no commitment for you to lease another one from them.
Based on that, decide what you want to do.
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