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Hi, bit new with leasing and not sure of options to do at end of the lease. My lease with Toyota ends May 2016 with a cap of 32,000 miles. I really wasn't worried about miles, but lost my job now working farther from home. Was only traveling 6 miles to and from work a day. Now traveling 60 miles to and from work a day. Racking up about 280 miles a month with work alone. I am at 24,000 miles right now. I also have to get new tires after 32,000 miles was told be charged $100 to $400 by Toyota if no new tires on after 32,000 miles when turning the car in. Then over mileage charge was expensive think 50 cents first 1,000 miles and 1.00 for every mile after that.
I am in the process of fixing the rear bumper of the car, replacing it. Cost about $2,500. Also new windshield on the car driving down the highway rock cracked the windshield to a point the windshield needed to be replaced. The buy out price of the car is $14,200.
I am thinking be better to buy it out do a 36 month loan to buy the car and continue to save money to buy a new car after three year's. Right now paying $325 a month for the lease. Hoping if I do a loan can do $250 a month think that be doable?
Appreciate the feedback. I figure can save up $5,000 for repairs or any cost owed on the car. For down payment if need to lease again.
a) Buy it at the end of your lease. Buyout price is generally negotiable as banks do not want the car returned as they are shipped off to auction and sold at rock bottom prices. Some banks will also send you a buyout offer for thousands less near the end of your lease.
b) You can purchase it right now. Call the bank and ask for its payoff amount. This will be very expensive as the car will be very much under water as you will owe more than it is worth. This is generally non-negotiable.
c) Trade it in for another car. Also expensive as you will owe more than what the dealer is willing to pay for the car. You can often roll the negative equity into the new car or write them a check for the difference.
d) Sell your lease at popular lease swap sites such as Swapalease and Leasetrader.
I did that with a 2008 Hummer H3. GMAC (no longer around), would not haggle, the stated price in the contract was the only price they would recognize. Dumb, yea! But they said it was policy and they know they will lose if sent to auction or sold directly to the dealer.
I called my selling dealer in MI, and since they were going out of business (due to Hummer brand being discontinued) they did an end around GMAC.
Without even traveling back to MI, they received all needed info from the local GM dealer in Moab, did a direct purchase of the vehicle from GMAC, and then turned around and sold it to me.
GMAC's price for a purchase was 28K, my price from the dealer was 21K (plus UT taxes).
I guess this is not supposed to be done due to a contract with GMAC, but like the dealer said; I'll get my hands slapped the day before I close the doors....big deal.
Only vehicle I ever leased. From that day on, I just pay cash.
04-12-2015, 11:12 AM
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n/a posts
Quote:
Originally Posted by RunD1987
I am in the process of fixing the rear bumper of the car, replacing it. Cost about $2,500. Also new windshield on the car driving down the highway rock cracked the windshield to a point the windshield needed to be replaced. The buy out price of the car is $14,200.
I am thinking be better to buy it out do a 36 month loan to buy the car and continue to save money to buy a new car after three year's. Right now paying $325 a month for the lease. Hoping if I do a loan can do $250 a month think that be doable?
Is $14200 the current buy out price or the residual?
At your current (?) buy out price, no you can't get a 36 month loan for $250. You'd have to pay $394/month even if you managed to get a 0% loan, which will not happen. Take a more realistic 3% and you're looking at $412/month.
If the residual is only $10k or so (assuming the 14k is current buyout price), then you'd be looking at around $300/month for a 36 month loan.
At your current (?) buy out price, no you can't get a 36 month loan for $250. You'd have to pay $394/month even if you managed to get a 0% loan, which will not happen. Take a more realistic 3% and you're looking at $412/month.
OP might put a hefty down payment into the mix and get it down to $250/mo.
a) Buy it at the end of your lease. Buyout price is generally negotiable as banks do not want the car returned as they are shipped off to auction and sold at rock bottom prices. Some banks will also send you a buyout offer for thousands less near the end of your lease.
b) You can purchase it right now. Call the bank and ask for its payoff amount. This will be very expensive as the car will be very much under water as you will owe more than it is worth. This is generally non-negotiable.
c) Trade it in for another car. Also expensive as you will owe more than what the dealer is willing to pay for the car. You can often roll the negative equity into the new car or write them a check for the difference.
d) Sell your lease at popular lease swap sites such as Swapalease and Leasetrader.
I see people saying this, then I also hear how the residual is the residual and its not negotiable.
Hi, bit new with leasing and not sure of options to do at end of the lease. My lease with Toyota ends May 2016 with a cap of 32,000 miles. I really wasn't worried about miles, but lost my job now working farther from home. Was only traveling 6 miles to and from work a day. Now traveling 60 miles to and from work a day. Racking up about 280 miles a month with work alone. I am at 24,000 miles right now. I also have to get new tires after 32,000 miles was told be charged $100 to $400 by Toyota if no new tires on after 32,000 miles when turning the car in. Then over mileage charge was expensive think 50 cents first 1,000 miles and 1.00 for every mile after that.
I am in the process of fixing the rear bumper of the car, replacing it. Cost about $2,500. Also new windshield on the car driving down the highway rock cracked the windshield to a point the windshield needed to be replaced. The buy out price of the car is $14,200.
I am thinking be better to buy it out do a 36 month loan to buy the car and continue to save money to buy a new car after three year's. Right now paying $325 a month for the lease. Hoping if I do a loan can do $250 a month think that be doable?
Appreciate the feedback. I figure can save up $5,000 for repairs or any cost owed on the car. For down payment if need to lease again.
This happened to my uncle. Leased a Toyota that he was just using primarily on wknds until he had a job change and needed to use it daily and racked up miles on it. In that case its probably best to just finance the balance of the vehicle once the lease term is up to avoid paying any overages and just keep the car as a commuter.
May I ask which Toyota you leased? .50 cents for the first 1k miles and 1.00 for every mile after that is insane! My wife's Nissan rogue lease is .15 cents per mile for every mile over 36k.
I know BMW and Audi do not negotiate buyout numbers. It is what it says it is. In fact, I've never heard anyone I know actually negotiating a buyout successfully.
Quote:
Originally Posted by louie0406
I see people saying this, then I also hear how the residual is the residual and its not negotiable.
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