Bushwack

Please...I need advice on possibly purchasing a 2010 GS RWD...with a twist.

The lease on my 2007 GS comes up next month. Car is/looks as good as new with only 21,000+ miles (little desire to buy out the lease and don't want to wait for revised 2011 GS). The difference between my buy-out price and what this car would ask for (as a CPO) is about $8,000. If it was to sell to a private party, difference would be $4,500 (per KBB).

My question is, in good conscious (and using fair business practices), can I use any part of the dollar amount difference between my buy-out price and the CPO price to my advantage in negotiating the cost of a new GS?

Here’s a scenario to better explain myself: New car MSRP is $54,164.00, Dealer cost is $47,750. My negotiated purchase price would be $48,600. Now..would it be fair to negotiate the purchase of a new car for a lower amount (say…$1,500 lower) taking into account the dealer will get a lease expiration car of which their profit margin would be much greater then if there was 36,000 miles on the odometer?

I’m not looking to bludgeon the negotiating process. I’m a firm believer that every transaction must be a win/win for both parties. Just wondering if anyone has either been in a similar circumstance or if my expectations of taking into account a low mileage lease expiration on a purchase is reasonable.

Thank you.

Kcook700

iTrader: (2)

I was facing a similar scenario recently when I turned in my wife's 06 SLK. We wanted to either A, buy the car, or B, purchase a new Mercedes. Well, since we recently had a kid, a two-seater wasn't an option for us. So we decided to buy a new Mercedes. Well, when we were in the sales office finalizing the lease return, the sales rep offered to sell us the SLK (the one that we were turning in) for LESS than what our "buy out" price would have been. So technically we would be turning in the car, and then turning around and buying it back. Are these car salesman so hard up for sales, they would take a cut on their commission.... YES!

Long story short, we ended up buying a new/used AWD GS 350, which brings me to this forum. And boy, am I glad I got the GS!

IMO, I would try and negotiate with them. The worst that could happen is they say no. IF you can hold off, I'd wait for the 4G GS. Previous posts here on CL say its coming in 2011...

rominl

iTrader: (4)

of course it's negotiable, i think that's reasonable

question, with your car being 15k miles under the limit (assume 12k/yr), have you tried to get quotes from dealers or say carmax and see what they offer you? would they be able to give you more money for the car than the buyout price?

passnu2

iTrader: (33)

would you consider extending your lease? I know a few people that have done that. it may buy you more time until the new model comes out as an option. then your getting a new car rather then a newer model year of what you currently drive.

my other suggestion would be to purchase and not lease with the miles you drive the car. even if your using the car as a tax credit for business the mileage doesn't seem to warrant any benefit.

the only positive I see you have trading the car in if you lease again is you can apply the tax credit to the new lease. if this is the direction you want to go today then I would use this and negotiate more on the value of your trade and the purchase price if it hasn't already.

Bushwack

The Carmax scenario doesn't work. I'd have to first purchase the car (and pay sales tax) before they would buy. And my past experience with Carmax was awful. Don't want to go that route.

Bushwack

I don't want to extend the lease. By doing so, I'd have to change the brake fluid (needs to be done at 36 months) and as the car has 40 series tires, they will need to be replaced in about 3-4,000 miles (not much tread left now as much of my driving is on twisty canyon roads). When that time would come, Lexus would require I replace the tires. Also, I'd only get 1/2 of my car registration 'investment' on a six month extension.

Of the few that have replied, it sounds like I have a little wiggle room to use the leased car to negotiate a better price for a new car (whether purchase or a new lease). Would like to hear a couple more opinions. Thanks for your input.

rld14

It all depends on your residual value I suppose. However new and used car transactions are generally treated, a least where I work, as separate deals. Honestly we're not likely to give you a further discount on a new car because you're dropping off a nice lease return, I am not familiar with RWD GS350 residuals because RWDs simply don't exist in this part of the country, but right now we're able to buy off lease GSs for less than the residual values, usually $1-1500 back of residual last I paid attention.

If your car has paintwork on it, the dealer may not even want it at any price. I have an otherwise gorgeous 06 GS300 AWD in my lease return lot right now, Nav/Lev/18s, 51k... but it's got a painted door and fender so LFS can have it as far as I'm concerned.

I'd guess that simply because of the low miles your car is worth, at best, residual.. it's probably no great special deal to the dealer other than it possibly being a nice retail piece.