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CPO'd would get low rate....wiggle room lately... Posted by Mike Lynch [Email]  (#81) [Profile/Gallery]
(more from Mike Lynch) on Sat, 17 Sep 2005 11:06:59
In Reply to: Coming off lease. anyone have the buyback intrest rate?, RISaaber, Sat, 17 Sep 2005 05:32:35 Members do not see ads below this line. - Help Keep This Site Online - Signup |
Tiz a good time to be Saab Financial and selling Saabs for the residual. The lower residuals of 2002 and 2003 vs 2000 and 2001 are proving to be market correct. It's a cyclical kinda' thing. Residuals go up and up until the lease company starts getting really burned at the auction. This is when you can nego or maybe the lease company purchased residual insurance. And then residuals come down and the purchasing the car for the residual value becomes a steal, even for a dealer and it seems we might be going through that now. That is the residuals on the last two 2003 off lease Saabs I bought were under wholesale/auction market, I mighta' paid more in trade, nah.....So there wasn't any wiggle room. Saab financial has auction/market reports from the lastest auction to compare to at any time.
Strong auction values in relation to the residual means the lease company doesn't have to fade on the buyout, to the customer or the dealer. You still have to look at it case by case as there may be a varience for differing models and situations.
Meanwhile if your purchasing your car off lease will the dealer CPO if for you? That's the one loophole to get a private party car CPO'd when the dealer handles the "lease buyout" or "lease to retail" as they are in fact selling the car, collecting tax and license and so forth. The cost of CPO'ing is pretty low in comparison to the purchase of a similar warranty on the aftermarket and if CPO'd you car would qualify for the 0.9% 36 mos, 1.9% 48 mos, 2.9% 60 mos Saab financing.
That may be asking too much of your dealer. "Sell me the CPO for cost and don't make any money on the Saab financing" is what your asking them to do, so be kind and ask anyaway. We charge the cost of the CPO inspection, 3 hrs labor = $285ish in addition to the cost of the CPO from Saab on the theory that we'll make decent dough on the inspection and on the future potential warranty stuff the CPO will cover.
If you don't go the CPO and financing rate the market right now for conventional automobile rates, unsponsored by a manufaturer as it is now with Saab, is around 5.5%. Credit unions are some of the best sources still under 5%, 4.99% or so. GMAC and Saab financial don't compete for the "A" or "super tier" 740+ business and their best unsponsored rate is 7.49%.
, Sat, 17 Sep 2005 11:06:59 <-- Viewing This Message, Sat, 17 Sep 2005 17:35:02, Sun, 18 Sep 2005 12:30:26, Mon, 19 Sep 2005 10:56:55
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