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Smart Shopper Lease Termination Fees and other costs
1039 messages, Last post on Dec 03, 2009 at 10:15 AM
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So as you can see I still have time to decide what I want to do with my car, but I'm about to take this job that will require a lot more driving. My question is that if I decide that I'm going to buy out the car anyway, does it really matter on how much overage I'll have in the milage?
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Replying to: azngrl18 (Jul 27, 2009 10:35 am) Nope. |
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Replying to: azngrl18 (Jul 27, 2009 10:35 am) |
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I have one month left on the 2006 Lincoln Zephyr. Residual is $16,240 and my mileage today is 30,200. Allowed mileage is 33,000 so I should should be well within the limit as I generally drive 1000 or less miles in a month. The car was rear-ended by a truck and the trunk lid was replaced, side panels refinished etc. for about $8K (paid by other driver's insurance). I just had my inspection and the guy has found several scratches, bumps, gouges, dings on the front bumper, hood/cowl, left front door, left rear door etc. I can't really see them and the body shop that did the repairs just did a detail on the car for me. The inspector (from Data Scan) said they would have a report and estimate available online this evening. This is my first lease ever, what are the next steps? I'm also wondering whether I should buy the car out, or what the options are. I like the idea of leasing but want to keep the payment under $300/month. (The Zephyr was $292, which included CA tax, with $0 down). However, leases currently look terrible, low residuals and not so great money factors.
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Replying to: rj123456 (Jul 28, 2009 12:27 pm) Wholesale on your car is in the $15-16k range so your buyout price is on the mark. With tax and fees you should end up in the mid $300's for 60 months. Not surprised you can't find a new lease that is comparable. A $30,000+ never leases for under $300/mo unless there is a TON of incentive somewhere. Leasing is just getting back to being realistic is all. |
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I've got a 2008 GMC Acadia whose lease expires in November 2010. 36,000 mile lease and as of mid September I'm already up to around 27,000 so it's a good bet that we're going to go over the allotted miles. The charge for going over is 0.20/mile. I don't necessarily mind paying that, but I'm a little more concerned about what'll happen when I return the car. The warranty on the car is good thru 36,000 miles so I'd be in a situation where I'd be returning the car and it'll be out of warranty. Having never leased a car before, I have no idea what to expect when I turn the car in, but I'm concerned that if the car's out of warranty the dealer could hit me for charges to fix things that aren't broken but are items that are normally covered by warranty. For example, we've had an ongoing problem with the thermometer on the car - it'll be 75 degrees out but will read 111 until I start driving way, slowly going down. If I return the car and it's out of warranty and the thermometer issue arises again, wouldn't they charge me? The other option is to let the car sit for a few months or turn it in early, but then I'd be double paying since I would still need a vehicle and would either have to rent one or buy another vehicle early. Obviously, paying the mileage overage is a lot cheaper than paying for two cars for say three months, but the potential warranty problem concerns me. Suggestions? Thanks!!!!
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Replying to: goodmaj1 (Sep 20, 2009 12:58 pm) Second, if something is clearly broken when you return the car you will be billed. However, I doubt that anyone will even notice the thermometer. Mostly, they are looking for obvious things, check engine light, broken cup holder, etc. |
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So I leased a new car.. but I still have my old lease.. I did a 3 year/45,000 mile lease on a MINI Cooper S 2007. It ends in February 2010. When I leased my new car they ended up cutting me a check for the remaining payments on my MINI Lease through the end of the contract.. So I could technically turn it back in now. I'm trying to see if I can actually profit off of it though since the residual they state on the lease contract (What I would have to finance if I wanted to outright buy it) is $18,200. I priced out my MINI though through KBB and Edmunds and it says I could probably sell it or even trade it in for more then that.. I'm only at 37,500 miles on my Lease too with 4 months to go so I have a lot of breathing room on my miles.. What do you think I should do ? Is it possible to sell to someone like a Carmax my lease for more then the buyout? Thx
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Replying to: pezradar (Sep 26, 2009 3:26 pm) Your Mini will continue to depreciate as time marches on, so if you're going to do this deal, you need to do it immediately. Before you take on the risk of buying a car, i.e., paying the residual cost, I'd go to Carmax and see what they'd give you for your car. That'd be your worst case scenario from a pricing perspective. Then I'd check eBay and Autotrader to see how much you think your car could sell for. At the end of the day, the key is how much risk you're willing to take on - are you willing to risk that your car might not sell above the residual price? Under no circumstances should you rely on KBB or any other valuation site to determine if you should do this arbitrage. Ultimately, the car is worth what someone else will pay for it so you need the Carmax (or even auction) data point. Some dealers looking for good used cars will also give you an offer, I actually sold one of my cars, a BMW, straight to a Lexus dealer. |
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Replying to: pezradar (Sep 26, 2009 3:26 pm) If you sell it to a dealer, there is no tax. At best, you will probably break even at a dealer, dunno if it's worth it. |
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