Question: Am I able to negotiate the buy-out price at the end of my car lease?

August 4, 2005

Hi Tony

With my lease coming to an end in a few months coming across your site has been a gold mine of information. I only wish I knew all this four years ago!

I would like to buy out my lease and sell the car privately. It is a 2002 Chevy Cavalier VLX with under 40,000 KM (approximately 25,000 miles). The buy-out price is $7,713 (Canadian).

Am I able to negotiate this price at the end of the lease or is it too late? If I can negotiate, what would be a reasonable offer?

Thank you,

Robert

Answer:

Hi Robert,

Robert, usually you can not negotiate the selling price at the end of a lease. If however, you can talk to the right person at the leasing company you should give it a try anyway.

If you don't buy the car they will send it to a dealer auction where they will only get wholesale value for the car.

I don't know for sure, but an educated guess is that the car is worth $3,500 to $4,500 wholesale at this time.

You could tell them that if they sell it to you they will come out better then if they take it to an auction. Offer them $5,000 to $6,000 for the car.

You'll be doing better and they will get more from you then they will from a dealer who has to resell it for a profit. You both win!

All my very best...

Tony Iorio