What are you doing after the SHO?

[jontyrees]

My lease is up in May, so I have to make a decision on what to do next. I have the usual options of buying the car at the residual, turning it in and getting something else, or a third option of just turning it in and driving my kid's car while he's away at college. Thought I'd see what you guys think, have done, would do...

Option 1 - my 2012 will have about 49k miles on it when the lease is up, about 4.5k under the amount allowed under the lease. The Residual is $22.4k. I love this car - it's been completely trouble free, drives great, easily fast enough for my liking, it's completely loaded except for the Performance Package, which I didn't want given my driving needs and the crappy roads here in central Texas. I love the stereo. Every time I drive it I think I'd be dumb to turn it in. I know it has a totally clean history. But.....do I want to be still paying off a car in 4 yrs time that has 100k miles on it? My head says "you've used up the best part of this vehicle, return it and get something new(er)" Is there any way I can leverage the buy option to get a sweetener from the dealership? Get them to throw in a tint, a new set of tires, whatever, if I buy it from them?

Option 2 - get something else. Jeez, the field is wide open here. Infiniti's look pretty good, and I think deals are available on Q40s, the old G37. Crazy deals to be had on Maximas - $10k off retail of $39k on SV with Sport and Tech packages, lots to choose from here in Austin. Any deals to be had on new SHO's? My payment is too high on the existing SHO - $597/mth (I had to have it, what can I say?). Although I could continue with a $600 pmt, I'd really prefer not to. Less than $400 would be preferable! Which brings me to.....

Option 3 - turn it in and use my kid's car. It's a VERY good condition 2001 Crown Vic LX with HPP. It has 183k miles on it, but has new shocks, brakes, tires, NO rust, clean interior, etc, and drives like a champ. Does need a new heater core, and some A/c work, but I'll be getting that fixed anyway. This obviously gives me a $0.0 monthly payment, and it's kind of a fun car to drive. At least people get out of your way.

Decisions, decisions......

 

[markathome]

Just my 2¢:
Sometimes they put money on the hood of lease turn in cars. But, only your dealer would know about it. Nissan had $5k on the hood of our LEAF lease at turn in, we let them have it and walked away. Point being, they can sell it for a little less than residual.
You know the car, you like it, and trust it. That means a lot in my book. Finance for three years and your payment would probably be under $575 as the rates are low. That would get you out far enough to be ready for the next gen SHO.
I would personally be afraid of the cars with the CVT transmissions. Nissan has no AWD cars.

 

[jontyrees]

Today, I'm leaning toward picking up the purchase option on the SHO, tomorrow, who knows? I'm not too down on the CVT in the Maxima - although I've yet to drive one either. I figure they must have overcome the reliability problems by now, and conceptually it's as good as it's possible to get - an infinite speed transmission. Would be nice if I can get a grand or two off the residual form Ford. Surely they can't really want niche lease cars back?

I did see another possible contender in a brand new SHO at a Houston dealer - $46k msrp, loaded except for PP, under $36k. Hmmm....

 

[rubydist]

right now on the Lincoln lease turn ins, we are often able to terminate the lease and then buy the car on Accelerate for $4k less than the residual. That means we can split the savings with the client and he/she can buy back the car certified for what the lease buyout would have been, and the CPO finance rates are better - everybody wins. Check with the leasing dealer to see if Fords are like that now or not.

The brand N cars are heavily discounted because they are not selling well - that tells you something. The brand I cars have a bunch of happy owners but a bunch of other unhappy ones - we get a lot in on trades on Lincolns.

just some food for thought...

 

[jontyrees]

right now on the Lincoln lease turn ins, we are often able to terminate the lease and then buy the car on Accelerate for $4k less than the residual. That means we can split the savings with the client and he/she can buy back the car certified for what the lease buyout would have been, and the CPO finance rates are better - everybody wins. Check with the leasing dealer to see if Fords are like that now or not.

The brand N cars are heavily discounted because they are not selling well - that tells you something. The brand I cars have a bunch of happy owners but a bunch of other unhappy ones - we get a lot in on trades on Lincolns.

just some food for thought...

Interesting - I figured there would be some wiggle on the purchase option. So you're saying that the benefit to the customer is that the car comes under the Certified program, but at the same price as the residual? Benefits being some warranty and lower finance rates? Have you ever seen someone just get a price below the residual, instead of taking the Certified route?

In another development, I'm also seeing a couple of basically brand new 2013s in the Ford CPO program website at around the $30k mark. One has 73 miles, another 158 miles. Why would an essentially new car fall under the CPO program? I assume there must be some time limit on how long they can be at a dealer before being registered, at which point they become a "used" car? This route has serious potential. Brand new 2013 for $30k, 12mo full warranty, 100k/7yr powertrain, maybe buy an extended warranty gap filler, come out WAAAY ahead on the price.

 

[Off Road SHO]

So if you buy (finance) your old lease SHO and add in what you paid on the original lease, what does that car end up costing you? Just curious. I've run the numbers a few times and could never see where I would come out ahead.

I would jump on purchasing a 2013 for 30,000.00 with those low miles. I would still dicker with cash in hand though, I like to watch sales managers drool and hover.

Tom

 

[jontyrees]

So if you buy (finance) your old lease SHO and add in what you paid on the original lease, what does that car end up costing you? Just curious. I've run the numbers a few times and could never see where I would come out ahead.

I would jump on purchasing a 2013 for 30,000.00 with those low miles. I would still dicker with cash in hand though, I like to watch sales managers drool and hover.

Tom

I'd be at $597 x 39, plus the residual of $22,400 = 45683, including the finance charge portion of the lease payments. The actual cap cost when I took the lease was $41k and change. At this point though, it's about whether I would buy the car I have now for $22,400 with probably 47k-49k and a clean service history, or a "brand new" 2013 with a reduced warranty for $30k. I agree that the extremely low mile 2013 looks like the better option. I think in general, if you lease a car, you should plan on turning it in at lease end, unless there is a good reason not to - eg, the car is worth more than your residual, or the dealer is prepared to come down off the residual price. It's an interesting financial exercise.

I'm going to look at the 158 mile car this week - the 73 mile car is sold. Since my lease return will have somewhere around 4k-6k miles left vs the limit, and it's in great condition, I'm hoping I can get a credit to use toward the $30k purchase (actually $29,995), but maybe this whole thing is moot, since my lease runs through May anyway, 4 payments left. The 2013 has 402a, Nav, PP and moonroof, black. No massaging seats, (never use mine), what else is missing? It seems to have disappeared from the dealer website though, so maybe it's gone.

 

[PokerMunkee]

Yeah, that's a loaded up 2013 sans the multi-contour seats.

Check out lease deals on a new '15 Acura TLX? Those look sweet.

For $30K, you got a lot of options. A '13/'14 SHO is one of the best value.

The new '15 Charger R/T's are out and look sweet as well. You can get a base R/T new for low $30Ks or $40K loaded up.

 

[PokerMunkee]

'15 Charger R/T Plus (no sunroof) $33.5:

http://www.ebay.com/itm/Dodge-Charg...1c9de5203&item=351279141379&pt=US_Cars_Trucks

'15 Charger R/T base for $31K:
http://www.ebay.com/itm/Dodge-Charg...348f95215&item=151548154389&pt=US_Cars_Trucks


Loaded up one for $38K:
http://www.ebay.com/itm/Dodge-Charg...348e3a180&item=151546732928&pt=US_Cars_Trucks

^^^ What a beautiful car!

 

[jontyrees]

'15 Charger R/T Plus (no sunroof) $33.5:

http://www.ebay.com/itm/Dodge-Charg...1c9de5203&item=351279141379&pt=US_Cars_Trucks

'15 Charger R/T base for $31K:
http://www.ebay.com/itm/Dodge-Charg...348f95215&item=151548154389&pt=US_Cars_Trucks


Loaded up one for $38K:
http://www.ebay.com/itm/Dodge-Charg...348e3a180&item=151546732928&pt=US_Cars_Trucks

^^^ What a beautiful car!

I like Chargers, but I really want something loaded. I like my creature comforts - gotta have a good stereo, bluetooth streaming, and preferably Nav, leather, etc. $38k is higher than I would prefer to pay right now. TLX looks good, I'm monitoring for lease deals. I think the 2.4l would be too tepid after the SHO tho, and the V6 is quite a bit pricier

 

[jontyrees]

I like Chargers, but I really want something loaded. I like my creature comforts - gotta have a good stereo, bluetooth streaming, and preferably Nav, leather, etc. $38k is higher than I would prefer to pay right now. TLX looks good, I'm monitoring for lease deals. I think the 2.4l would be too tepid after the SHO tho, and the V6 is quite a bit pricier

That R/T Plus for $33.5k is nice - leather, Alpine stereo, (how that is vs the Beats they had - prob the exact same thing with a different badge). Wonder how well they lease.

 

[rubydist]

The Chargers have big incentives because they are not moving well... The Acuras drive nice, but are much more stiff and noisy than the SHO, and iirc the TLX is only front wheel drive.

I am sorry I was not clear on the alternative purchase approach - here is more detail. If you go to the Ford or Lincoln dealer and tell them you want to buy out your lease, the amount you pay is the amount on the lease contract. There is no wiggle room - they are closed ended leases, which means the buyout is a set number. However, if you turn it in, then Ford Motor Credit or Lincoln Automotive Financial will put it on their dealer auction site (Accelerate) for a number that FMC/LAF sets. There is some mystery as to how they determine that number, but they are somewhat consistent from week to week. What I was trying to say is that right now, on the MKZ and MKS, the number that is coming up on Accelerate is $3-4k less than the buyout price. The dealer that terminates the lease has first dibs (three days to decide) on the vehicle for whatever price FMC/LAF has set, after that the vehicle is available to all Ford or all Lincoln dealers. If that number is roughly $3k less, and if the dealer is willing to spit that with you, then you can have them certify the car and pay for the certification, and end up with the car for about the same as your lease buyout would be, but would have the extended warranty included. Or, you could potentially save $1500 if you don't get the warranty. And since the lease-terminating dealer has first dibs on the car, you know they can buy it back for you unless they just screw up. So, what you would need to do about 3-4 weeks prior to the lease end is to call the dealer and tell them you want to buy out the lease and ask them how their purchase cost on lease turn-ins is comparing to the buyout numbers. If you get a saleperson who wants to help you, you can learn if that would actually work out for you at that point in time (the fact that it is that way now does not mean in 4 months it will be that way). Most larger dealers have a salesperson who specializes in the re-lease client base, that person is generally quite knowledgeable and helpful.

If the vehicle has been registered, then it is a used car (rather than a new car) and then it makes sense for the dealer to certify it, for the advantage in rates and warranty. Different states have different rules, but in CO if it has more than 5000 miles then it is considered a used vehicle even if it has never been registered. Some states have much lower mile limits on what can be considered a new vehicle.

Hope that helps!

 

[jontyrees]

Really useful info - thanks! I got a call from the dealer of the 73 mile car that fell off their website. He says the dealership manager's wife has bought it, and it now has closer to 2k miles. She would possibly be interested in selling it, although it would no longer be a CPO car, and thus would lose the CPO warranty. Interesting - he's coming back to me with a possible price. That one was actually listed at $32k with 73 miles, and doesn't have Nav. It's 401A and PP, red. What would be a good deal on a 2k mile 2013 with 401A and PP? maybe $28k? $30k? I really haven't had to use the warranty at all on my 2012, but I hear MyFord Touch can require some visits.

 

[Spoilt22]

'15 F-150 with a 5.0 all day after the SHO.

 

[jontyrees]

'15 F-150 with a 5.0 all day after the SHO.

Nice truck. 4 of my good friends have the exact same F150 Platinum, black, crew cab (? is that right? the 4-door).

 

[jontyrees]

That R/T Plus for $33.5k is nice - leather, Alpine stereo, (how that is vs the Beats they had - prob the exact same thing with a different badge). Wonder how well they lease.

Hah - just looked at the Dodge site for Charger Technology, and the Alpine stereo is EXACTLY the same as the old Boston Acoustics stereo they always used - 6 speakers, 276W. I guess Dodge now pays Alpine to use their name as an upsell, vs paying Boston, even though the sound system is the same. I haven't heard them, but I'm guessing that system would need a sub added somewhere - maybe a Basslink. I'm finding the Sony in the SHO only lacking in the very low end - it could maybe use a sub, but overall I really like that Sony system. I found it's WAAY better sounding in Stereo mode rather than Surround.

 

[rubydist]

Really useful info - thanks! I got a call from the dealer of the 73 mile car that fell off their website. He says the dealership manager's wife has bought it, and it now has closer to 2k miles. She would possibly be interested in selling it, although it would no longer be a CPO car, and thus would lose the CPO warranty. Interesting - he's coming back to me with a possible price. That one was actually listed at $32k with 73 miles, and doesn't have Nav. It's 401A and PP, red. What would be a good deal on a 2k mile 2013 with 401A and PP? maybe $28k? $30k? I really haven't had to use the warranty at all on my 2012, but I hear MyFord Touch can require some visits.

That's not quite true - the Ford / Lincoln Extended Warranty (CPO Warranty) stays with the vehicle and should transfer as part of the sale process - all the dealer has to do is update the owner in OASIS. So, it will retain the balance of the CPO Warranty, but will not be eligible for the special CPO financing rates that may exist. And, Ford / Lincoln just announced a new program starting Jan 1st, where the dealer can now re-certify a vehicle so that it again becomes eligible for the special financing rates - on the Lincolns that costs the dealer $500, I don't know on the Fords exactly what the cost is. And, you can add time and/or miles to the CPO warranty as long as it is still in force when you want to add to it.

$30k would be a great deal on a 2k mile 2013 as you described, even if not CPO.

 

[jontyrees]

That's not quite true - the Ford / Lincoln Extended Warranty (CPO Warranty) stays with the vehicle and should transfer as part of the sale process - all the dealer has to do is update the owner in OASIS. So, it will retain the balance of the CPO Warranty, but will not be eligible for the special CPO financing rates that may exist. And, Ford / Lincoln just announced a new program starting Jan 1st, where the dealer can now re-certify a vehicle so that it again becomes eligible for the special financing rates - on the Lincolns that costs the dealer $500, I don't know on the Fords exactly what the cost is. And, you can add time and/or miles to the CPO warranty as long as it is still in force when you want to add to it.

$30k would be a great deal on a 2k mile 2013 as you described, even if not CPO.

awesome info - thanks! It's so helpful to hear from someone who knows what he's talking about!

I'm going to look at the 158 mile, fully loaded $29,995 car on fri if it's still there. The dealership is 40miles away, so not too bad. They have interesting deals - 2 2011 MKSs with 43k and 48k miles, CPO cars, both at $18,495. Not turbo though. Still - could be worth a look. The interior on the MKS is nice, and I understand the THX stereo is killer. I'm basically all over the map here, lol! Maybe I should just shelf this search until I'm closer to the end of my lease - still 4 months to go.

 

[pjw315]

Just my 2¢:
Sometimes they put money on the hood of lease turn in cars. But, only your dealer would know about it. Nissan had $5k on the hood of our LEAF lease at turn in, we let them have it and walked away. Point being, they can sell it for a little less than residual.
You know the car, you like it, and trust it. That means a lot in my book. Finance for three years and your payment would probably be under $575 as the rates are low. That would get you out far enough to be ready for the next gen SHO.
I would personally be afraid of the cars with the CVT transmissions. Nissan has no AWD cars.

Nissan has an AWD car.

 

[PokerMunkee]

I'd hold out for a 2013 MKS EcoBoost. Lot of updats that are worth it 2013+ for SHO and MKS.

A EB MKS is a rare beast, would be a fun car!