Lease buy out good deal or not? Regular gas concern.

Discussion in 'General Motoring' started by jc, Jan 26, 2009.

  1. jc

    jc Guest

    3 years ago we leased an XC90 with the convience package - leather,
    rear assist and wood steering wheel. The car is and was beatiful.

    It was $499/month + tax, 0 down lease. Ends up being $545 every month
    or so.

    We loved the car and have babied it. It only has 24,0000 miles.

    We've calculted we've paid about $20,000 in payments at the lease end.
    The original Sticker on the car was $42k (I think) but the sale price
    was around $37k on the lease papers. Next month is our last payment
    (of $545) + a termination fee of ($400).

    The buy out on the car is around $24k + tax which is kinda crazy.

    This morning, in what was likely really bad negiotation move, we
    called the bank inquiring about making a deal to buy the car. Not
    expecting to be asked to make a verbal offer on the spot, we hastly
    offered $17k + tax. They came right back with little hesitation and
    countered for $17500. They will however waive the last payment and the
    termination fee bringing the price down to roughly $16,500.

    If we go to carsdirect.com, this same car (now v6 not inline 5) prices
    out to roughly $42k + tax (likely negotiate down to ($38k)

    Compare all this to the car we were going to buy (2009 Honda Pilot EX-
    L) for roughly $30k + tax.

    We have 24 hours to confirm we want it.

    Again the car is perfect condition and even has new tires and breaks.

    I think made a mistake in not offering them $13k and then expecting
    them to meet us half way, but anyways, the buy out takes us to the
    original price roughly and we do like the car. But no way to go back
    now.

    Our only concern about the car is that we have been puting regular gas
    in it , but it's been running great. Any expected damage? The car has
    one more year of warranty. Mainly, we just love the way the car looks
    and feels, the engine could be more powerful and we really were
    looking forward to an Aux jack for the radio and a hitch.

    Any thoughts? Good deal? concerns about Gas type we've been using?
     
    jc, Jan 26, 2009
    #1
  2. jc

    James Sweet Guest


    You won't damage anything using regular gas, it will run just fine. If
    the computer detects the onset of knock it will retard the ignition
    timing. The result is slightly less power and worse fuel economy but no
    damage.
     
    James Sweet, Jan 26, 2009
    #2
  3. You lucky people over here, in Holland (THE NETHERLANDS), a XC90 in good
    trim cost 100k EURO !! a 3 year old one around 45k EURO that is about 60d US
    Dollars, so for us it is a bargain.
    I have driven a 2003 modell 2.5T AWD, but the fuel bill became to high, 1
    litre was 1.60 euro or about 2.10 US dollar, yes for one litre !!!
     
    Volvo-480-V70, Jan 27, 2009
    #3
  4. jc

    betsey Guest

    my sister just bought a new 2009 volvo xc90 for 35000- out the door...

    betsey
     
    betsey, Jan 27, 2009
    #4
  5. i would guess your a bit high in your offer...however, knowing the
    car 100% is of "peace of mind" value...i would say a few thousand
    dollars.....there are great deals on used volvos right now...the used
    market is soft, as well as the new car market...at least from what i
    see......
     
    ~^ beancounter ~^, Jan 27, 2009
    #5
  6. jc

    johngdole Guest

    Check www.edmunds.com. It lists trade-in value (of 2005 XC90 2.5T, I
    don't know your specific package) as ~$12K and dealer retail as ~
    $16K.

    Since nobody pays full retail, especially in this economy, you should
    be able to buy the car off the dealer's hands for less than or about
    trade-in. Otherwise let the dealer try to sell that SUV for $16K. Tell
    them good luck.

    Check also Kelly blue book (kbb.com) and maybe others. Print out the
    trade-in value because that's typically what the dealer is willing to
    pay YOU to take a car off your hands.
     
    johngdole, Jan 28, 2009
    #6
  7. jc

    johngdole Guest

    Check your manual. Most of today's car computers will automatically
    adjust to the lower octane gas.

    For engines that accept regular through premium, most people won't
    notice the difference. It would be more important that you regularly
    change the engine oil and ATF among other maintenance items.

    Now, lifetime ATF means the ATF will last until the transmission
    breaks early. "Lifetime" means different things to the dealer and the
    owner. You may have a GM Hydramatic transmission that use Dexron fluid
    or Aisin-Warner that uses Mobil 3309.

    See the article: "Why use premium gas when regular will do?"
    http://www.usatoday.com/money/autos/2003-07-30-premiumgas_x.htm
     
    johngdole, Jan 28, 2009
    #7
  8. jc

    Roadie Guest

    Check the value of the car within your area using Edmunds or a similar
    site to see if you are getting a good price or not. The amount that
    you paid in lease payments is irrelevant at this point. You are
    buying transportation from this point forward so cash out of pocket
    and the current value of the car are what will determine whether you
    are getting a good deal or not..
     
    Roadie, Jan 30, 2009
    #8
  9. Roadie is entirely correct. Prior payments have no bearing on the
    present worth. If you can get it for a total of less than the original
    cash price, then that is good since during the lease, they were making a
    profit. Also, the used car market is warm now, but the big SUV market
    is ice cold. My Volvo dealer tries to deal mostly in used Volvos since
    they have a much bigger profit than new Volvos. You got a better deal
    than you wanted, why wouldn't you take it????
     
    Stephen Henning, Jan 30, 2009
    #9
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