Automotive

Should I buy out my lease?

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  • Oct 29th, 2019 3:05 pm
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[OP]
Member
Dec 26, 2011
348 posts
105 upvotes
Ottawa

Should I buy out my lease?

Hi -
My lease is coming to an end for my 2017 Nissan Rogue SL. It’s loaded with new tires and has 61,000km.

I see online they’re selling for 27-29k (albeit from a dealer).

My lease buyout is $19,520.

Am I missing something here or do I have the opportunity to make some money if I buy it and immediately sell it on the market?

Cheers
20 replies
Deal Expert
User avatar
Apr 21, 2004
54640 posts
19440 upvotes
$27k sounds steep. Even 4th gen RAV4H (2016/17) can be had for $26-28k and those are more in demand I think.

Maybe you will get $24k for it but then you have to pay HST on it.

Probably find a buyer for it first before committing to buying it out.
Deal Addict
Jun 26, 2009
3996 posts
3017 upvotes
GTA
With all the recent incentives on the Rouge, no way you will get over 25K for car with that mileage. Is 19520 all in or plus taxes and buyout fees? If the later, return the car.
[OP]
Member
Dec 26, 2011
348 posts
105 upvotes
Ottawa
Thanks for the input.

On my agreement it shows $19520 buyout price. I assume I have to pay HST on top of that.

What are the “buyout fees”?
[OP]
Member
Dec 26, 2011
348 posts
105 upvotes
Ottawa
Ha!

Seriously - what are we talking here on average?
Deal Fanatic
User avatar
Jul 26, 2007
5474 posts
2998 upvotes
Toronto
Usually $500 to $1000 doc fee from the dealer. Few times free if you can diy directly with the financing office and bypass the stealership
Deal Guru
User avatar
Jul 12, 2003
11652 posts
3955 upvotes
Toronto
Lease buy out fee is bascially an admin fee that dealer will charge you for process the paper and admin work for you.
I have seen from $300 to $1000

Your lease buyout is 19250+HST = $21752.5
+ Average $500 admin fee
+ Safety Test at dealership, Average $200

Your cost is approx 22k to buy it out.

Personally a 2 yrs old Rogue SL with 61k sell for 27-29k? I doubt people get buy one at this cost.
Remember dealership always sell for more and private sell is usually less.
Realistically your Rogue SL's target price to sell is low 20k.

I wouldn't bother buy it to resell. Too much trouble for that little profit even if there is any.

Btw, 61k for a 2 years car is a lot, did you went over the Km allowance?
Not sure why you put new tires on it neither knowing your will not keep the car.
Retired Forum Moderator February 2009 - June 2015
[OP]
Member
Dec 26, 2011
348 posts
105 upvotes
Ottawa
I leased it in November 2016. It will be three years old this November. My km allowance is 72,000.

My OEM crap tires were completely worn and I got an exceptional deal on tires to avoid the inevitable wear and tear charge when I return the lease anyways.

Thanks for all the input.
Deal Addict
Jun 26, 2009
3996 posts
3017 upvotes
GTA
According to Mohammad on CP24 Auto Shop Rouge had up to $6500 cash incentives. People were buying base model for under 30K on the road.
Deal Guru
User avatar
Jul 12, 2003
11652 posts
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Toronto
Tommy74 wrote: According to Mohammad on CP24 Auto Shop Rouge had up to $6500 cash incentives. People were buying base model for under 30K on the road.
Yes, I have a doubt when i heard a 2 years old used Rogue can sell for 27k....isn't it those starting at 27k-28k anyway. SL is probably top of the line and say it cost another 10k on top. After 2 yrs and depreciation, I highly doubt anyone will buy a used Rogue between 27-29k.
Retired Forum Moderator February 2009 - June 2015
Deal Addict
Jan 15, 2017
4009 posts
3478 upvotes
alanbrenton wrote: $27k sounds steep. Even 4th gen RAV4H (2016/17) can be had for $26-28k and those are more in demand I think.

Maybe you will get $24k for it but then you have to pay HST on it.

Probably find a buyer for it first before committing to buying it out.
I also think that if the OP is patient enough and able to find the right buyer, may get around $24k for it. Whether the potential for $2k is worth it will depend on how much work he wants to put into it.

A quick check of autotrader.ca for the Ottawa region does show asking prices of $25 - $27 from dealers, but those are asking prices, not selling prices.
Jr. Member
Aug 17, 2011
167 posts
126 upvotes
TORONTO
Are you planning on replacing the Rogue with another car from the dealer? Ask them what the trade in value would be for your rogue..if it’s more than your buy out then it might make sense to buy it out and apply it as the trade in (I guess this could be true with any dealership you go to, not just the place you got your Rogue from).
Deal Guru
User avatar
Jul 12, 2003
11652 posts
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Toronto
willdaman wrote: Are you planning on replacing the Rogue with another car from the dealer? Ask them what the trade in value would be for your rogue..if it’s more than your buy out then it might make sense to buy it out and apply it as the trade in (I guess this could be true with any dealership you go to, not just the place you got your Rogue from).
Nice try.

Not a chance any dealer with take OP's car for 22k+ as trade in value. Not even close
Retired Forum Moderator February 2009 - June 2015
Deal Addict
Oct 3, 2012
1974 posts
798 upvotes
Hamilton, Ontario
I have done the math. If you buy a vehicle it will normally cost the same as leasing and buying out the lease...

The biggest difference is when you go in to buy out the lease again you get to negotiate interested and extended warranty again...

If the car is worth significantly more than the buy out, then it is a no brainer, buy it. If you don’t want to keep it, resell it. If it is worth significantly less than the buyout, then don’t keep it.

Usually though the buyout is about the same as trade in value. In which case the question simply becomes, do you want to hold onto it?

In this particular case you want to keep in mind when you buy it, you’ll have to pay sales tax. In Ontario that will be about $2600. Private sellers usually get less than a dealer. So maybe you’ll get $25K. You profit then will about $2400. Is that worth your time and risk? Or would you just prefer to walk away and lease or buy another vehicle?

I just noticed the high milage... walk away dude.
Deal Expert
Mar 23, 2004
28916 posts
9411 upvotes
You should buyout the vehicle if you want to keep it. It will likely be more cost-effective than buying another same or similar model with similar age, mileage, condition.

However typically speaking it's not going to be a money-making operation to buy it out and resell it because...
1. You have the taxes and fees to pay on top of the buyout #.
2. You are not a dealer and won't be able to sell at stealership prices.
3. Even the stealership prices are subject to negotiation by the buyer (i.e. it's probably not worth as much as you're seeing advertisements for).
4. You will have a lot of scammers and "tyre kickers" messaging you when you post for sale and you will have to weed through them all.
5. Could be a lot of time and effort even after #4, arranging test drives, etc. for interested parties.
6. Presumably, during this time you will also have to be looking for a new vehicle yourself, to replace this one.
7. In the end, it sounds like it may be possible to make $1-2k but you will have to decide on your own whether all of the above is worth it.
Newbie
Apr 13, 2009
68 posts
53 upvotes
I wouldn't bother unless you actually want to keep the car. You won't profit and if you do it's not worth the hassle.
Deal Addict
User avatar
Jul 5, 2011
1740 posts
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Toronto
PM me the VIN#, mileage, claims history and equipment if you want OP.

I can tell you if it's worth buying or not fairly easily.
2013 Wins - $1320 - Woohoo!
Banned
Mar 11, 2016
2081 posts
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chuxydoodle wrote: I wouldn't bother unless you actually want to keep the car. You won't profit and if you do it's not worth the hassle.
+1
not worth buying out unless you plan to keep it
[OP]
Member
Dec 26, 2011
348 posts
105 upvotes
Ottawa
Wow - thanks for the replies everyone.

I don't plan on buying anything from the dealer upon the lease return - I've been hounded by Nissan the past few months with decent offers. But I decided on and got a new Forester Sport. (I've had two Rogues in a row, and the redesign is slated for 2021).

My only hangup is that the car has been flawless and is in mint condition. Not a scratch.

But the headache of the tire kickers is something I'm not looking forward to dealing with. I'll probably end up returning it and walking away.

Cheers

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