Need advice on automotive lease buyout..automotive expert opinions welcome!!

[bobsackamano]

Here is the short story. My wifes Jeep Liberty lease ends the end of Feb 07.
We went to the orginal dealer that she leased the Jeep from to go over the details of the buyout and noticed the dealership has added a administration fee of $600 to the buyout.
My questions are:

1. Is administration fees on buyouts common?
2. Are they normally this high?
3. Can I go to another dealership and negotiate a lower admin fee?
4. What alternatives do we have?

Any advice to this regard would be helpful. She also gets dinged for the extra kms that she purchased up front but forfits if she buys the car ($3800 worth)...but that is a different story .

TIA;)

[Sprite_TM]

don't buyout the car, there's a redesign of the jeep liberty of 2008 from what ive heard

[Spud72]

Here is the short story. My wifes Jeep Liberty lease ends the end of Feb 07.
We went to the orginal dealer that she leased the Jeep from to go over the details of the buyout and noticed the dealership has added a administration fee of $600 to the buyout.
TIA;)

Sounds fishy. I'd call the finance company (Chrysler credit?) and ask them. If you buy out the lease, I don't even know why the dealer would have to be involved - you should just be paying the finance co out... unless for some reason they won't take money directly from you and it has to go through the dealer finance guy.

[bobsackamano]

Thanks for the reply Spud72. This is the first lease buyout that she/we have done and we were not sure if this is common pratice. I know in general administration fees are a "made up" gouge on customer.

If anyone else has experience with lease buyouts I would love to hear.

TIA

[bobsackamano]

:arrowu:

[gizmo8]

When my lease was completed they sent a inspector to view the car for wear and tear and that was it....there was no extra expenses since the car was under the max mileage and there was no extreme wear..I even got some money back.

[Spud72]

When my lease was completed they sent a inspector to view the car for wear and tear and that was it....there was no extra expenses since the car was under the max mileage and there was no extreme wear..I even got some money back.

True - but he's talking about buying it. There is no reason for it to even be inspected. I can't understand why a dealership even needs to be involved. If someone else who's bought out a lease and knows why, I'd appreciate to know too.

[Pete_Coach]

We bought the lease out for my Daughters' car.
There is an administration fee for changing the ownership from the leasing company to you. When we first leased the car we had the car in my name (along with the leasing company), it cost $250 at that time to change it over to my daughter when she graduated university and then again another $250 when the buyout came. Different leasing companies charge different amounts (there is no regulations for this). The dealer has no more control because even if it a Jeep and Chrysler has the lease, the leasing company is a completely different business unit.
You can ask the dealership for help claiming the loyalty you have had with them throughout the leasing period and the future business you may give them but, don't hold out for too much.

[Spud72]

We bought the lease out for my Daughters' car.

When you did this, did you pay the dealer or just send a cheque to the leasing co? Or, did the lease co make you go through the local dealer?

[Pete_Coach]

When we transferred from me to my daughter we did it through the dealer. When we did the buy out we did it directly with the leasing company. Saved us the admin fee the dealer was charging.
If there is any advice, it may be that if you lease, try and get a company that has affiliation with the OEM (GMAC, Ford Credit, BMW Lease etc) as opposed to an independent leasing company (Financialinx, Capital etc). The independants are just loan companies and could care less about you, your vehicle or any problems. You have even less leverage than if it was with an OEM related company, even though they are often a separate business unit they still carry the car manufacturers name and it helps a bit.

[bobsackamano]

Thank you for the replys, the Jeep was leased through the dealership and the lease is held by Chrysler Financial. The salesman who she bought the car from is the one who is working on the buyout. He claims the admin fee is $600 when he goes through all the costs on the buyout. I guess I should of asked him to breakdown what the $600 admin fee was covering.

I just thought that it might be possible to either negociate a lower admin fee (if even a admin fee is necessary) or go to another dealership and haggle with them. Does the salesman not gain anything (commision etc.) from her buying out the Jeep as opposed to giving it back??

And maybe it is possible to call and deal with Chrysler Financial??

[Whitedart]

Thank you for the replys, the Jeep was leased through the dealership and the lease is held by Chrysler Financial. The salesman who she bought the car from is the one who is working on the buyout. He claims the admin fee is $600 when he goes through all the costs on the buyout. I guess I should of asked him to breakdown what the $600 admin fee was covering.

I just thought that it might be possible to either negociate a lower admin fee (if even a admin fee is necessary) or go to another dealership and haggle with them. Does the salesman not gain anything (commision etc.) from her buying out the Jeep as opposed to giving it back??

And maybe it is possible to call and deal with Chrysler Financial??

I don't have experience with leasing as I have always purchased. But reading this thread raises several points as indicated above.

Is there not a buyout price determined at the time the lease is taken out?

On a buyout, why does the dealer need to be involved at all, as they would have been paid in full when the lease was taken out?

And again on a buyout, what difference should there be related to the vehicle condition or mileage?

[Spud72]

And maybe it is possible to call and deal with Chrysler Financial??

I'd do that first.

[bobsackamano]

I don't have experience with leasing as I have always purchased. But reading this thread raises several points as indicated above.

Is there not a buyout price determined at the time the lease is taken out?

On a buyout, why does the dealer need to be involved at all, as they would have been paid in full when the lease was taken out?

And again on a buyout, what difference should there be related to the vehicle condition or mileage?

Yes the buyout price is determined at the time the lease it taken out but dealers always have a way of sneaking things in to make more money.
I dont know if the dealer gets paid in full up front when the lease is taken out or not...that is why I thought there is some incentive for them to sell the car to her.
If you buying out milage and condition is not a factor at all.

Thanks for the replys

[SoNgMaN]

All Of This Information Is On The Lease Agreement You Should Have Read And Signed When You Picked Up The Car And Should Have A Copy Of@!!!

[Whitedart]

Yes the buyout price is determined at the time the lease it taken out but dealers always have a way of sneaking things in to make more money.
I dont know if the dealer gets paid in full up front when the lease is taken out or not...that is why I thought there is some incentive for them to sell the car to her.
If you buying out milage and condition is not a factor at all.


Ok, thanks for clarifying this.

In your original post, you indicated:
4. What alternatives do we have?
She also gets dinged for the extra kms that she purchased up front but forfits if she buys the car ($3800 worth)...


I think I would contact Chrysler directly about the buyout if you choose that option, bypassing the dealer.

Would you get this extra mileage cost back (or partial amount) if the vehicle is turned back in?

[bobsackamano]

Ok, thanks for clarifying this.

In your original post, you indicated:
4. What alternatives do we have?
She also gets dinged for the extra kms that she purchased up front but forfits if she buys the car ($3800 worth)...


I think I would contact Chrysler directly about the buyout if you choose that option, bypassing the dealer.

Would you get this extra mileage cost back (or partial amount) if the vehicle is turned back in?

Yes if she gives the Jeep back she will receive $3800 in extra kms that she pre-purchased but did not use. The Jeep was a personal lease but her work paid for most of the payment which were high therefore the buyout cost is about $4000-$4500 less than fair market value. Bottom line is that she still likes the Jeep but finds the $600 admin fee unfair. I doubt the $600 admin fee is listed in the orginal lease agreement...that I will review.

Thanks again

[Supershyguy]

don't buyout the car, there's a redesign of the jeep liberty of 2008 from what ive heard

so you are saying he shouldnt buy the 07 cause there is a redeisnged 08? lol

[DSTU]

Yes if she gives the Jeep back she will receive $3800 in extra kms that she pre-purchased but did not use. The Jeep was a personal lease but her work paid for most of the payment which were high therefore the buyout cost is about $4000-$4500 less than fair market value. Bottom line is that she still likes the Jeep but finds the $600 admin fee unfair. I doubt the $600 admin fee is listed in the orginal lease agreement...that I will review.

Thanks again

Like other people said, check the original lease agreement, call the lease company.

The dealer is scamming you saying that sits a $600 admin fee. Unless that fee is going tot he lease company, which is doubtful.

You can always go to another dealer to do the buyout.

[BartBandy]

I agree that some leasing companies will deal directly with the customer for the buyout. Try that first. You can also haggle the admin fee with your dealer.

[bobsackamano]

Thanks for the replys!! :cheesygri

[Spud72]

Yes if she gives the Jeep back she will receive $3800 in extra kms that she pre-purchased but did not use.
Is that standard practice? I paid for extra KMs on my Avalanche but won't use them... I'm waaaaay under. I read the contract and it doesn't say it'll refund any, just what happens if you go over.

[bobsackamano]

I am not sure if it is standard pratice, but for sure when we were reviewing her lease at the dealership it was spelled out that she would get a refund for the unused km's if she didnt buyout the vehicle or purchased a new one. If she did buyout the vehicle she didnt get any refund and forfits the extra unused km's refund...Weird but I read it twice. Maybe somebody with inside information with dealerships can clarify.

[bobsackamano]

:arrowu:

[BobW]

Sounds like you should just turn the vehicle in and buy it back on the dealer's used car lot. Why would you give up a hefty km refund AND get dinged a BS fee of $600? Just walk away and see what happens....