Residual value is too high but want to buy

[captainjp]

Yeah, but it's a question that is best answered by reaching out directly to Chase themselves. We have no answer for him that would officially hold water because we aren't party to the actual agreement signed with Chase. We can, at best make educated guesses based on what others have told about their agreements.

I was a bit harsh in my initial response, but this is one of those posts where the person's best move for accurate info isn't asking on a third-party forum, but by going to the source.

True, but he was asking if anyone had any experience with it.

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[eviceman]

Yeah, but it's a question that is best answered by reaching out directly to Chase themselves. We have no answer for him that would officially hold water because we aren't party to the actual agreement signed with Chase. We can, at best make educated guesses based on what others have told about their agreements.

I was a bit harsh in my initial response, but this is one of those posts where the person's best move for accurate info isn't asking on a third-party forum, but by going to the source.

But really the poor guy was asking if someone did this in the event they have the right words to chase rather than going to chase and approaching it from the wrong direction. It’s sad how people run a guy over with a truck for a simple question. If you don’t know don’t answer. Right wrong or indifferent I leased to get the 7500 and bought it out within 2 months because I had the ability to get a favorable loan rate as compared to the money factor Chase built into the lease so I may have paid too much but I am saving a lot of interest over 3 yrs plus the interest on a purchase is now tax deductible for American made cars over the next several uears

 

[derekmw]

For me, out of curiosity, with R2 reveal, I got a trade in quote for my R1 from Rivian, and it's actually $1k more than my current buyout of the lease. Based on that, I'm wondering if at the end of my lease in a year, if that will still be the case. If so, I'd buy it and just re-sell it.

 

[Hereforthesnacks]

That's great for financed loans or outright purchases, but OP is in a lease. The buyout amount is part of the legally-binding agreement.

Any agreement can be modified. I’ve had good luck in such situations. But haven’t tried with Chase/Rivian.

 

[Alan in Tempe]

Chase may have been giving the Leased Rivian's back to Rivan directly but that might not be the case anymore. There are many outlets to sell vehicles to get top dollar, they may just be doing that. Rivian may also take it as a service loaner since they already got great value out of it.

I have never been able to get the financing company on a lease to take less than the contracted amount but you never know.

My BMW lease residual was nearly $10K above blue book. I went directly to the dealer manager and asked if he could try to hold the car for me to buy (at a lower price than the residual) after I turned it in. He stepped away, and then came back about 20 minutes later with a small piece of paper with a dollar value written on it, and he said that came straight from BMW corp leasing. It was within $200 of what I had figured the resale value was (and hadn't mentioned any numbers to them prior). I walked out owning the car, out the door at the quoted price, effectively getting an additional $9800 discount over the original sales price, but three years after the initial lease/purchase. Note a small amount of that was lost to higher interest costs on the lease from a much too high residual. Most of the residual was miscalculated, in my opinion, because BMW did not figure the resale would be reduced by the tax credits that were only available to the original purchase, and the rest was only a small difference in getting the remaining depreciation slightly too low. Finally, had I turned it in, and then repurchased it off the resale lot, it might have been at even a slightly better price yet, and it would have included the certified pre-owned warranty that they include with all their used vehicle sales.

 

[Matchbox]

That's great for financed loans or outright purchases, but OP is in a lease. The buyout amount is part of the legally-binding agreement.

Legally-binding agreements are changed all the time - mutually agreed by the signatories. Happens all the time. It is called business.

 

[Hereforthesnacks]

My BMW lease residual was nearly $10K above blue book. I went directly to the dealer manager and asked if he could try to hold the car for me to buy (at a lower price than the residual) after I turned it in. He stepped away, and then came back about 20 minutes later with a small piece of paper with a dollar value written on it, and he said that came straight from BMW corp leasing. It was within $200 of what I had figured the resale value was (and hadn't mentioned any numbers to them prior). I walked out owning the car, out the door at the quoted price, effectively getting an additional $9800 discount over the original sales price, but three years after the initial lease/purchase. Note a small amount of that was lost to higher interest costs on the lease from a much too high residual. Most of the residual was miscalculated, in my opinion, because BMW did not figure the resale would be reduced by the tax credits that were only available to the original purchase, and the rest was only a small difference in getting the remaining depreciation slightly too low. Finally, had I turned it in, and then repurchased it off the resale lot, it might have been at even a slightly better price yet, and it would have included the certified pre-owned warranty that they include with all their used vehicle sales.

Bingo. It can be done if you and the dealer are reasonable. The most efficient and desired outcome is not always the one written down 39 months ago.

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