Has anyone been able to negotiate the residual value on a lease? Is this even possible with IFS?

Cause sometimes the residual value is higher than the market value of the car... and if someone wants to buy the car .... is there any room for negotiation, in that situation?

I have over two years on my lease left... but just wanted to know if, I, down the line fall under this scenario.

 

Yes you can negotiate the residual, but it would not be any significant amount. I was able to negotiate 2 of my cars before, one I got a $1200 discount and the other was about $950 if I remember correctly. The second one was not so big because the residual was not that high. In fact I still have that car in my garage. So the answer to your question is yes.

 

IFS sets the residual values so basically there is no negotiating the residual with the dealer.

The only way to adjust the residual is by changing your mileage allowance.

 

When would you ideally start this process? 2-3 months prior to lease end?

 

Correct. The leasing company or your bank will offer the car to you 2 months before the lease is up. If you don't want it trade the car in before the 2 months is over because the bank will pay for the last 2 months of the lease. If you want to keep it then make them an offer for the car. I usually go 2k less than residual they will make a counter offer then it's up to you to go from there. Not a lot of flexibility in price so get what you can.

Now if you're over mileage don't wait for the 2 months by then the dealer will just tell you to surrender the car. Then you have no choice but pay over mileage unless you plan of keeping the car. In which case the above situation is ideal.

If you don't have plans on keeping the car then I suggest you trade it in 6-8 months before the lease is up. This way the dealer will have no choice but to pay the car off from the bank and put you in a new one.

I have done this twice before like I said so don't believe for one minute that it is not possible. I have never done this with IFS, but I have with American Honda and Bank of America. Goodluck.