I have a black '01 convertible and my lease is up in October. I am under the miles, but my tires (especially rear) are in poor shape (I used them for two days of time trial racing). In addition, someone backed into the front of hit so there are some scratches in the front.

Economically, turning this in for a 2004 C5 or even one of the new C6's just isn't going to happen so I am thinking of going with a truck.

Can anyone post their experiences turning in their vette's at the end of a lease. Are the dealers usually used to just taking it back and fixing it up as long as you buy a new car from them or do I have to spend the money to fix everything? I am in the San Diego area and all comments and advice would be greatly appreciated.

In hindsight I wish I would have just bought the car, but you live and learn.

Thanks

 

My background is a former automobile dealership sales and finance manager, and I am also a consumer who has previously leased vehicles. With that said:

You normally don't return a leased vehicle to the dealer. At least, I never have. I usually arrange a drop off or pick up with the bank directly. In fact, for my last two leases the banks contacted me to arrange the return somewhere around 60 days before the end of the lease term.

As far as tires are concerned, that shouldn't matter, because normal wear and tear is part of the deal. They can NOT charge for tires. Regarding the front, same thing, unless the damage is noticeable. Like is the bumper tweaked? If it's just some small scratches, no big deal, but any more is up to the discretion of the bank. You're also better off dealing with the bank directly if the damage is questionable. Many times an auction or towing company will be the ones picking it up, and will only do a quick walk around of the car. As long as the damage doesn't jump out at them, they'll ignore it. Remember, these guys usually pick up with a car carrier and they have plenty of cars to pick up, so they're not going to nickel and dime the car.

Remember that the bank owns the vehicle NOT the dealership. The bank will auction the car off to the highest bidder or run it through an auction. With som many used C5s around, your car will invariably go through an auction. Even if you were to return it to the dealership, the bank will ask the dealer if they want to buy it, otherwise the bank will pick it up from the dealer and auction it off.

Depending upon your lease terms, the lessor will contact you prior to the end of the lease. If you're within your mileage allowance, you're in a good position, especially if you wouldn't mind buying the car. Note that you are NOT responsibile for the lease's "residual". You can actually bargain with the bank for the buying price. For example, my residual on my 2000 Suburban was just under $25k. After negotitating with the bank, I bought it from them for $19.5k. That was a HUGE difference.

Note that if you're within your mileage limits you're in a much stronger position to negotiate, because they know if you're over your limit, and don't buy the car, they're going to make money on the over-mileage penalty.

Also given the current state of the economy, AND the fact that C5's are a dime a dozen, AND that many people lease cars of a certain price point, Corvettes being on of them, there are many, many lease returns lying around. If you were a bank that had to auction an '01 convertible and there are 50 of them being auctioned, you won't know if you're going to get what you need out of the car at auction. But, if you have someone wanting to buy it, and will give you close to what you need, you'd take it. Why? Because as long as they can break even they're happy. Of course, they will also typically offer to finance the amount at a very good rate, because the finance charge on top of the agreed price is gravy.

So, if you like the car, it wouldn't hurt for you to find out what you can buy it for. And, if it's a killer deal, you may be able to sell it after you buy it, and pick up a nickel or two.

Hope this helps.

 

What a great info.

 

Also, you can probably use the 'vette as trade material for the truck you want, depending on where you are with the residual. Basically, the dealer would be buying the car from the bank, and some banks have a "dealer buy out" figure they'll let the car go for, so you may have an opportunity to get some cash out of the 'vette for a trade.

I have a Z06 coming off lease with US Bank soon, and the bank sent an inspector out to look at the car last week. I was told the baseline for tires was 4/32, no scratches longer than 2", no dents more than 1/4" and glass must be uncompromised - he also looked the car over for evidence of paint work, checked running condition, brakes, etc. The car has a few minor blemishes that he said nothing about.

Also, be aware that if you buy the car from the bank yourself, you are obligated to pay the balance of the sales tax to the state of CA, whereas if you were to use it for a trade, you'll escape that obligation.

Keep in mind - the last thing the bank wants is to get your car back! The bank rep I talked to hinted very broadly that the price was negotiable....

 

thanks for the information guys, it is very helpful.

 

http://www.gmacfs.com/ click on Excess wear Square on left side, this is the guide to all leases for GM.

 

Who is your lessor? Mine was GMAC and they have you drop it off at any dealer. I did so, they gave me a form to sign with the mileage, and I was on my way. GMAC then has a third-party company inspect the vehicle for excess wear. The wear-square on their website is also mailed to you before the lease is up.

It was a no-hassle deal. I liked it so much I leased again from GMAC.

 

ditto