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View Full Version : Purchasing a Lease Turn in from a Auction...?



HammerDown
03-21-2007, 12:37 PM
Just wondering what kind of savings I could expect purchasing a Lease-Return directly from a (Dealer-Only Auction) vs the same Vehicle sitting on a Dealers Lot?
And yes, I would be able to get into one of those Dealer (only) Auctions. ;)
Vehicle in question...lets say an 06 F150 XLT 4X4 Super-Crew low miles.

ekbearly
03-21-2007, 12:43 PM
You can expect a big savings... Check kbb for the wholesale value. That is what you can expect to pay. You may be limited on color choices and most lease returns are boring fleet cars. There are some exceptions.

HammerDown
03-21-2007, 01:01 PM
You can expect a big savings... Check kbb for the wholesale value. .
Hmmm, I'm only seeing >Dealer Trade In, Private Party, Retail values :confused:

2Driver
03-21-2007, 01:06 PM
DOnt use KBB. Use NADA. They are real numbers from auctions. You can expect to pay NADA wholesale as that is what drives the auctions.
I can also look up exact auction results for you if you like. I have the pre-auction and post sales software tools.

2Driver
03-21-2007, 01:23 PM
Last week 55 went through Manhiem wholesale dealer auction (nationally)
Above avg cond brought $25,700, Average Cond brought $23,800

Outnumbered
03-21-2007, 02:32 PM
The only real problem I have is that I would say those leased cars do not get the same love that a purchased vehicle did. I sure do not maintain my lease vehicle like I did the purchased one before it. That is also why I like to buy used from a private party. Dealer trades and auction cars can have some issues you would never know about. I would try to keep the miles low and under factory warranty.

LAND_LOVER69
03-21-2007, 03:19 PM
The leasing company needs to get close to the buy out figure that was put on the truck when leased. Due to a high residual value you're gonna most likely pay above wholesale. By the way wholesale figures are typically gotten from what they call the "Black Book", not KBB or NADA.

MBlaster
03-21-2007, 03:21 PM
How does a 06 end up as a lease return?
Default?

LAND_LOVER69
03-21-2007, 03:23 PM
Last week 55 went through Manhiem wholesale dealer auction (nationally)
Above avg cond brought $25,700, Average Cond brought $23,800
Check the Northeast region. That's where he's from!

INSman
03-21-2007, 03:25 PM
thecardudes here on the boards does this for a living and I accompany him to these auctions a few times a year. Send him a PM and I am sure he will answer your questions.

Ziggy
03-21-2007, 04:10 PM
Generally you will get a unit below KBB wholesale....KBB is the preferred valuation book used in the western states.
Value over a car lot?...should still be better even after you perform any reconditioning since you are bypassing the dealers profit margin.
Certain types of vehicle that are high in demand you may not get a super deal. Trucks are usually on the high end of the prices at auction, although the bigger gas engine ones are a little flat for obvious reasons.

ChumpChange
03-21-2007, 04:13 PM
How does a 06 end up as a lease return?
Default?
1yr lease. My 1yr lease is coming up next month. That's how. :D

JB in so cal
03-21-2007, 04:17 PM
How does a 06 end up as a lease return?
Default?
Most almost-current-year cars sold at auction are from rental fleets.

Ziggy
03-21-2007, 04:25 PM
Most almost-current-year cars sold at auction are from rental fleets.
Caveat :D:D:D:D:D:D:D
.
.
.
.
..
some could be early release model 06's leased in 2005 with 2 yr leases.
We already have 2008 model 5 series due here next month ;)

Outnumbered
03-21-2007, 04:28 PM
Most almost-current-year cars sold at auction are from rental fleets.
No thanks. I'll pay a few more $$ and get one from a private party that took care of his stuff.

Xlration Marine
03-21-2007, 04:34 PM
Ah yes the "Leased Vehicle". I think I changed the oil twice a year, slammed on new pads, I hear they have a belt that has to be changed some time. Trany service, never. Lubed, trying to think, oh yea it was lubed at every water puddle. Which was not to often out here. Blown speakers and a stuck CD. Made an OK off road vehicle. Oh yea SHOCKS- Never. Air filter, new when it came home. Rad fluid, why change it? It's running cool. And to think I would treat a rental worse than that. Tires, well thay were taken care of. I would smoke a set off each year, so they were new when I returned it.
Hey can I borrow your car some time???:D :D :D :D

2Driver
03-21-2007, 06:06 PM
Check the Northeast region. That's where he's from!
In the northeast last week 11 sold. You can knock off $800 on the sale price from the national figures I stated earlier in the thread.

socalmofo
03-21-2007, 08:19 PM
DOnt use KBB. Use NADA. They are real numbers from auctions. You can expect to pay NADA wholesale as that is what drives the auctions.
I can also look up exact auction results for you if you like. I have the pre-auction and post sales software tools.
How do you get the auction results? I am becoming an auto dealer and am curious....
Thanks

2Driver
03-22-2007, 06:44 AM
Once you have your dealer license you can get access to Manheim auctions, which is the nations largest wholesale auctioneer.
www.Manheim.com
Good luck

HammerDown
03-22-2007, 08:31 AM
Yep Manheim's just over 1-hour away and that's where I would be shoping.
Thanks for all the feedback, I've seen several Lease returns sitting on Dealers lots in the upper 20's for 05-06's.
Looks like I could save a few thousand on a low mileage like-new 06 at the auction...and still have some factory warrantee;)
Most local private owners want too much for their 06's, almost what a 07 would cost!
What I'm after > F150 XLT or Lariat light color, silver or white Super-Crew 4 door 4x4 (6.5 Bed-kinda rare).

HammerDown
03-23-2007, 11:20 AM
WOW, I had no idea the Manheim Auction was soooo Big!:sqeyes: