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Date: 8 Feb 2003 07:45:50 -0800
From: (Al Hearn)
Subject: Re: Purchasing car at end of lease from Saab

The reason some lease companies (Ford Credit, GMAC, and apparently Saab) are hard to deal with on lease-end buyout prices is that they carry "residual insurance" which protects them from losses when they have to sell returned cars at wholesale auction. The insurance may protect them all the way up to the residual value, or something less. But the point is that these companies have no reason to negotiate with the customer if they get more money from their residual insurance. But one way to look at it is that you've been making lower than normal payments on your lease and the residual buyout price is simply the amount that you haven't already paid of the cars original value. So, even if the buyout price is more than the car is worth on the market, it could still be considered fair. Of course, if you can get the lower price, it's even better. Al "Sandstones" <> wrote in message news:<26%%9.25041$>... > I have a 2000 Saab convertible that has its lease up in four months. > > Saab USA gave me a purchase price that is below what the lease contract > said, but is still more than today's retail Kelly Blue Value, and I'm sure 4 > months from now the value is less. Saab claims the price is set by an > insurance policy they deal with, and there is no negotiation at all. > However, I am not going to pay more than the car is worth - presumably I > could wander into a dealer and buy it used for less than they want. > > Saab also said when they get it back the car is going to be sold at auction. > Since I assume the auction price is more like the wholesale price, that's at > least a $5000 difference. I would think that someone in that chain involving > the insurance company would like to get more than the wholesale value for > the car, but don't have a clue on how to find out who that party is. > > Anyone have any thoughts?

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