On another board, I had this exchange with a poster who was decrying the $329/mo. Jag X-Type lease deals, etc. ... I thought it might be instructive.

MarvBear, is this how it is at your dealership? I thought someone would have commented by now ...

I apologize, I did not think a comment from me was necessary, as It appeared to be an observation.

Anywho...........

Dont like those type of deals. Hard to do, and dealer makes zip on em.

On a leased vehicle, the residual value should be clearly stated plus any additional fees. That is what the dealer has to charge and only think dealer makes is his "document fee". Sometimes may try to mark rate up or push warranties or other products.

The original bank that funded the lease does not have to purchase the new retail deal, although sometimes they will if it appears there might be a substantial billing for excess mileage.

The residuals are insured, so if the bank is not gonna take a hit on a charge for damages or excessive mileage which they believe they may not collect from the ORIGINAL consumer, they are most times skittish about the refi.

I try to stay far away from those deals, because of the fact they tend to be cumbersome, and I can only finance vehicles that I OWN. I do not OWN the vehicle in question, so most all the paperwork on my end is trebled and if the consumer is credit challanged the rate IF APPROVED sure is not gonna be pretty.

To be perfectly honest, I make so very little on those lease buyouts, that is pretty cut n dried with me.

I dont know if I answered your question or not, but any additional comments are surely welcome.

And I apologize again, I believe I misread the quoted text. It appears the consumer wished to NOT purchase his currently leased auto, but rather lease another.

hmmmmmmmmmm........... not a good situation to be in either if credit challenged. The dealer is at the mercy of the captive finance source, They will Usually NOT allow an overadvance and usually stip for payment purposes, and again not a situation in which the dealer makes much money, so likewise to be rather disinterested.

If the dealer in question has mainfraime access to the bank or web access the decisioning of the deal does not take long unless after 8 pm during the week or unless after say 6 pm on saturdays. Sundays are hit and miss with captives, depending who is covering, and coverage is very limited.

I do find it strange that it should take 6 hours, and it most assuredly does not take me that long to finalize.

That consumer is not in an enviable position, and most would rather have the consumer PURCHASE than LEASE.

So you're saying that Nissan credit basically foists the bad-credit lease customers back on dealers with their loyalty-assurance program that gives them the next lease even though their credit went to hell during the last lease ... just not with Nissan. Everybody's happy but the dealer: Nissan's still making the good money financing it, the customer gets a vehicle, and the dealer gets squeezed.

NO! what I am saying is this.
#1 Customer originally had a lease with Nissan or whomever.
#2 Subsequesnt to the originaly lease consumer had credit issues
#3 Lease is ready to terminate.
#4 Consumer must requalify based on current lender quidelines
#5 Guidlines will be more stringent than before necessitating far more interaction with the lender that customary.
#6 Time equals money
#7 Not willing to invest time without proper return
#8 If it took six hours then somebody made a proper return and that someone is probably the dealer
#9 My observations is that a consumer got beat into submission, however that was probably more equitable than going with a sub prime bank.
#10 Dealer probably maked up acq fee and rate for proper return as I am sure the cap cost would have been curtailed by the lender.

Perhaps this clarifys, if not let me know.

I did forget to say, that some captive finance sources DO have retention programs, however if the credit situation gets kinda messy they can be problematic to implement.

I have seen people with "A" tier credit and have substantial problems but get issued preapprovals in "D" tier range.