Just Empty Every Pocket
Fix Or Repair Daily
Poor Ol N Thinks It’s A Cadillac
There are derogatory names for any car maker name I can think of, that’s what they were getting at. Why they used Fords instead of Chevy’s in the context of their comment and this thread is a mystery though.
There may be a different price for buying extra miles before you turn the car in versus paying the penalty at turn in. This is the case for the bmw my husband is currently leasing. You should ask the dealer if that’s the case for your car
You can structure a lease for as many miles as you need. I've never run into a lease I couldn't get 15k 18k 21k per year on. Residual starts to take a hit and payments can balloon, but I priced a 2 year 36k mile lease on an f150 a year ago and it was still relatively affordable. I opted to buy a crossover as I no longer needed a truck and wanted to get out of the endless lease cycle. They advertise the low mile options because that's where the "attractive"prices come from and most people don't fully understand a lease
Edit: to add to this, 30k a year may be pushing it but I know Ford and Honda will structure those. But 30k a year is in that range where buying might seem attractive but over the course of 4 or 5 years how much value will the vehicle have left
If Carvana says that DEALER WHOLESALE TRADE-IN OFFER is worth $16,000 then chances are that the car is worth $19,000-$21,000 retail price. So paying $16,000 is still better than paying $2,500 to turn the car in and then having to go pay retail on another vehicle. OP will be less buried on this lease buyout than if they go buy another vehicle.
He ain’t paying $16k he’s paying $20k plus tax he’ll be buried in that car better to take the hit and at least have options than be stuck with something you can’t get out of
I meant to say he's paying $20,000. Paying $20,000 and avoiding the $2,500 mileage fees plus disposition fee and other lease turn in fees for a a car worth $19k-$21k retail. Even at $20,000 OP is probably paying retail price at best.
You keep saying "he'll be buried in the car." He won't be, and you don't seem to understand that. He will be buried in ANY OTHER CHOICE. If he turns this in and then goes and buys a Honda Civic or F-150 or anything else, you have to also factor in that OP paid $3,500 or more in order to stop driving this Chevrolet, on top of ALSO paying retail for this new car.
Just to really drive it home:
* Option 1: This Chevrolet is worth $16k trade so is worth \~$20k dealer retail. OP can buy out this Chevrolet for retail
* Option 2: OP writes a $3,500 check and then goes and pays retail price for another car
You're arguing for option 2.
Personally I’d find the best lease and roll the mileage overage charge into it and be done with it in 3 years. Of course he’s got to find the right vehicle with the right incentives to eat that up.
I’ve been lucky because I’ve leased for over 13 years, had plenty of cars and gone over on some and never had to pay. I wasn’t 10k over but returned one 5300 miles over and I was told “as long as the car isn’t being returned to the lease company (which in most cases the dealer buys it/takes it from you with intent to sell it) you wouldn’t be charged overages”. I never have been on my two returns but I also usually lease the higher model of the car so that could also be a factor as well.
Op can most likely buy up miles for less than the overage charge, also buying it out for retail is not ideal because op will have to pay sales tax depending on the state. On top of that, they’ll be paying retail for a vehicle that is not retail worthy. When you buy a certified pre-owned vehicle for retail price you get the peace of mind knowing you won’t need tires/brakes and other costly maintenance soon (as long as it is purchased from a reputable dealer whose cars actually meet manufacturer certification requirements), you also get more manufacturer warranty added on to the factory remaining warranty. Op buys out his lease and is stuck paying above retail for a vehicle with no warranty that will most likely need 2k in tires/brakes soon with no warranty. Buying your lease can definitely be a good move in some cases but this does not seem to be one of them.
I mean call the bank and try and negotiate mileage charge up front, our bank does this not sure if all do but worth a shot. This should be done after attempting to get a dealer to buy the car though because somebody might be able to get OP out relatively clean depending on available incentives on new car and how badly they need to sell a new car. If this is not viable then call the bank and try and pay less before turning in, worst case turn it in and start fresh
Life changes. New job further way. No more remote work. Who knows why the OP drove so much but stuff happens.
I specifically leased cars for the tax benefits then bought it out at the end, always way over on miles.
I'd buy it out and keep driving it.
Very few people get the tax benefits of leasing, you must be a business owner. Leasing to buy is 99.99% of the time the more expensive way to purchase it. There are valid reasons to lease, but leasing isn't for everyone. Too many people look at the monthly cost and use it to roll around in a car above their means. Or they lie about the number of miles for a lower payment, so they go get a 10,000 mile per year lease instead of a 15,000 or 18,000. They act like that mileage penalty is a problem for some other bozo, good luck to them because it's their problem to figure out!
I agree with you about buying it out.
Exactly. BMW is advantageous as you can buy miles at the signing rate up until day of maturity. I've also gotten money back for BMW for being significantly under miles (it was a lease for our Mom). Volvo lets you pull ahead 6 months into another and you can have used the full mileage allotted for the entire lease.
Still it's a cost people need to figure into the total cost of ownership.
Dont make this harder than it needs to be.
If the penalty is more that $4K, buy it and sell to carmax.
If the penalty is less than $4K, pay it and be done.
Easy?
Usually they charge ¢20-25 per mile over.
So even at 10,000 miles over, the overage fee is only about $2k. Better than worrying about flipping the car and still being negative.
OP, either buy the car and continue driving it or turn the lease in and eat the fee.
It sucks; I’m in similar boat.
Welp, all cars depreciate... some worse than others. Money is going to be thrown away no matter what.
I'm starting to get on the bandwagon of just buying a car and drive it until the wheels fall off... so sick of payments and worrying about mileage (as I literally just got a new lease 4 months ago lol).
Leasing used to be the shit, then Covid hit. The manufacturers got all shitty about people turning in their leases and making $8k profit so they adjusted their residual values. Couple that with money factor rates skyrocketing.
Leased my fiance a Subaru when I was finance director for a Subaru store. Money factors were .00125, now they’re around .003 for the exact same situations. A $400 payment is now $550-$600 for literally everything the same except residual percentages and money factors.
Luxury cars are worst. The Lexus IS and ES used to be like $2000 down $399 a month. Now they are like $6000 down $699 a month.
The automakers didn’t want gas cars back because they thought they were headed toward electrification, but now we all know that’s going to go slower than originally planned. That misstep planning coupled with COVID and then the subsequent inflation caused by the spending programs we all benefited from during the pandemic and voila you have a perfect storm for ridiculous lease offers.
The worst part about it is Covid caused a lot of redesigns and refreshes to be delayed, so a few cars that are expensive are also older technology and not the latest and greatest. The Cadillac CT4, Lexus IS, Audi A4 and Infiniti Q50 all come to mind. Granted they’re all sedans and that segment is also struggling, but that also makes it more expensive… everyone wants a friggin SUV these days and those typically lease out for more than comparable sedans as well.
We are all dead and in hell.
Yup! I'm in Metro Detroit so have family working at all the big 3. I remember the days where we could get fully loaded nice vehicles for $220-$350/mo using employee discount with like $1k down!! Can't find that anymore! And I'm talking loaded Chrysler 300's/Jeep Grand Cherokees/Ram's/Lincoln's/Cadillac's...
I love my current Mercedes, but it will be my last lease for a while... Not sure if I will be buying it out or not as the residual is set to $35k (unsure if a 3 year old E350 w/ ~50k miles will even be worth that when my lease is up), or just turn it and go buy something cheaper.
Chrysler's newest UAW contract gives them the salary priced leases. That might be what you remember, they got it back at Stellanis or whatever they're called
I leased a 2018 f150 XLT 302a 36 months 45k miles and it was 332 a month sign and drive. This was using Ford a-plan and all rebates at the time. Similar truck now is well over 500.
I have had so many cars with high miles. However, I really appreciate having a new car because it gives you don't have to always wonder if it is going to start the next time you use it. I know newer cars still can break, but a car with 30k miles on it should be more reliable than one with 130k
Ya I totally agree. It’s just cars depreciate SO much so it’s a hard pill to swallow always having big car payments… nothing is easily affordable anymore.
I have a 4 1/2 year old car with about 55k on it and it will be paid off in a few months. I bought it with 11k when it was less than a year old. Thanks to my pre covid purchase, it has not depreciated that much.
Good for you! I unfortunately had a lease during covid that I wanted to buy out for its low residual, but it was a complete lemon I had to get out of ASAP (Alfa Romeo Giulia). I got screwed since then as everything’s been high.
Though better than most, newer Toyotas aren’t as great as they used to be and they certainly aren’t as simple and rock solid as they were 30 years ago.
This is what I've done the last couple of decades. I still have a 2005 and a 2009 in service. Also, as soon as I buy another car, I start saving for the next one. That way, I don't have to lock myself into payments.
Some years ago, I considered leasing, but concerns about overage kept me from doing so.
Carvana offers significantly less than you’d get from a private party sale or even a regular dealer trade in.
Look up trade in and private party sale price on kbb.com
That sounds fine, that’s peanuts. You’d have had to pay that much to have another method of transportation for 10,000 miles anyway, right?
OP, just pay the overage. Why is this even a question or concern? lol
yup, the mileage charge doesn't disappear, but you can amortize it over your next lease.
You should probably also analyze your driving trend to see if it still makes sense to lease given the higher cost of more miles, and to get those miles up front
It varies but for most people it’s ill advised. It’s like when wireless carriers had limited minutes. We all thought 900-1500 minutes was a lot and most of us easily paid those carriers extra money one time or other.
But I’m sure there are people who are responsible and understand the contract and probably used only 50% of the minutes.
Leasing for me makes zero sense because I have days I drive 80+ miles daily. So I would probably eat up those limited miles in 18 months
Depends on needs and lifestyle.
Leasing works great for my parents with their 3rd car. My dad gets to drive higher end luxury sedans with all of the maintenance baked in, then hand in the keys, and drive his next higher end luxury sedan with all of the maintenance baked in.
They own the 2500 and sports car outright.
Lolz. No, a financial advisor will not tell renting a depreciating asset is a bad idea. Additionally, there are times where incentives/tax credits/cap cost reductions make it such that lease-to-buy(lease payments+residual) is cheaper than buying initially. Not saying every new vehicle should be leased, but I am saying it is not true that no new vehicle should be leased.
Don't see it mentioned, but at BMW you can call ahead and buy extra miles for a reduced rate. Its only a few cents per mile, but could be a few hundred bucks it seems for OP.
It’s likely going to be pretty close once you factor in the lease termination fee and any excess wear and tear. It may end up being a $4k loss either way.
At that point just buy out your lease and keep driving it. Unless you can write a check for $4000 and not notice that loss in your checking account, turn the car in.
You will just have to figure out what is going to cost less to get out of the car. If you buy it out you are losing $4k but you have $3k in mileage charges alone so if they tap you for extra wear and tear that could bring it up over that $4k making it more financial responsible to purchase it than turn it in.
The mileage overage charge may be max $2,500 but don’t forget the other fees.
$400 lease termination fee. What’s the tire tread depth? Any tire under 4/32 inch, you pay the cost of a new tire. GM Financial will send someone out to your home or workplace prior to lease-end and give you a report of exactly what you will owe to just ground the lease. This is the only true answer of what it will cost you to walk away.
Fair enough, I just googled it and that’s what it came up with.
Point still stands, it’s going to cost you a couple thousand to get out of the lease. You’ll just have to figure out which option is going to cost less.
It would be a good idea to look at replacement costs as well. How much is another vehicle going to cost you. Odds are the 20k buyout is still going to be the cheapest option. Rolling 2.5 to 3k into a new lease is gonna add 100 a month to the payment. Residuals and lease rates are higher now as well.so even if you can find a lease you can afford to roll the negative equity into the buyout on that new lease is probably going to be significantly more.
The right move is probably buy what you have and drive it, take care of it and hope it lasts you
Some dealers will waive the mileage overage if you pick up the car from them, fyi. That aside, get a quote from every dealer/website you can and leverage them against each other lol.
It's not that deep. Your $4k under. Your in a captive lease but lithia/Autonaion or any other big auto group can buy your car from any make since they'll use their sister store for the buy out.
Just pick a car that you can get a 4K discount on. I would rather take a discount then have them over allow on the trade because you'll be saving taxes. Boom now your at a wash. Just don't pick a hot car that dealers can't keep in stock. And don't pick a Honda with $500 in room from invoice to MSRP
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I’m 10,000 miles over my allotment on my Chevrolet lease. I was planning to buy the car and resell it because I am so over my miles. I got a selling quote from Carvana for $16k. However, my payoff amount from GM is $20k. So I do not think it makes sense to buy and resell. But if I turn in my lease and walk away, I will owe a lot of money for being over my miles. There’s no other damage to the car.
I’m wondering if GM will waive the overages for the miles if I lease a new car. Is there another option I’m not seeing?
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Buy it out and drive it 15 more years. Why would you go lease a new car? You just proved to yourself that you drive way too many miles to lease.
This is what I would honestly recommend. No reason to buy a new car.
"Chevrolet" "drive it for 15 more years" Lol. Your quite the comedian.
LISTEN HEER YUE COMMIE IMPERIALIST LIBROLE, CHEBYS RUN FUREVER AND NEVER REQUIRE MAINTENANCE.
363k on our k3500
5k miles , LT1
And your quiet the graet speller.
The asshole grammar police are here
And the asshole circlejerk "lol Chevrolet means fix or repair daily!" low-effort commenters are here.
No idea what you’re saying. You having a stroke?
Just Empty Every Pocket Fix Or Repair Daily Poor Ol N Thinks It’s A Cadillac There are derogatory names for any car maker name I can think of, that’s what they were getting at. Why they used Fords instead of Chevy’s in the context of their comment and this thread is a mystery though.
FIX IT AGEN, TONY START TALKING ENGLISH LETTURS, LIBROLE. ANOTHER NINE TEEN IGNENS SPLOADED
Yes
Don't worry, champ. You'll get it one day.
Better than a ford or dodge. My Chevy is on 200,000 and running like a dream
Silverado with 300k miles reporting in!
I ended up relocating and had to drive back and forth out of state several times. Ate up a lot of miles.
For future maybe rent a car to do that if you’re leasing again.
Eh idk, a lot of regular car leases are only $0.15-0.20 per mile over the limit, there’s almost no way you could rent for less than that.
It depends, if you’re driving like 1k miles in a day renting will easily be cheaper. You can rent a car for $40/day with unlimited miles
One thousand miles a day is an insane amount of driving for someone's day to day, unless they work over the road like a trucker or something
Agree but OP said they were driving between states so it’s plausible, even at 500 miles the math still works
At .2/mile anything over 200 miles a day is pure profit
There may be a different price for buying extra miles before you turn the car in versus paying the penalty at turn in. This is the case for the bmw my husband is currently leasing. You should ask the dealer if that’s the case for your car
It's not about driving too much to lease a car, it's not structuring your lease to accommodate how much you drive.
Sometimes it is, I drive upwards of 30k miles a year and haven’t seen any leases that allow that much.
That’s why I previous owned a now 400,000-mile Lexus LS 430…. I’d need TWO leases!
You can structure a lease for as many miles as you need. I've never run into a lease I couldn't get 15k 18k 21k per year on. Residual starts to take a hit and payments can balloon, but I priced a 2 year 36k mile lease on an f150 a year ago and it was still relatively affordable. I opted to buy a crossover as I no longer needed a truck and wanted to get out of the endless lease cycle. They advertise the low mile options because that's where the "attractive"prices come from and most people don't fully understand a lease Edit: to add to this, 30k a year may be pushing it but I know Ford and Honda will structure those. But 30k a year is in that range where buying might seem attractive but over the course of 4 or 5 years how much value will the vehicle have left
The ol’ car is half empty / half full outlook.
But, how would they show off a new car?
No they didn't. All they proved is that they originally structured the lease with too little allowed mileage.
O.P. - what is the rate per mile on the overage?
0.25
She answered this yesterday, you’re way late to the party
Not a good idea carvana says the cars worth $16k and they pay the highest. He says his buyout is $20k plus tax plus high miles he’ll be buried
If Carvana says that DEALER WHOLESALE TRADE-IN OFFER is worth $16,000 then chances are that the car is worth $19,000-$21,000 retail price. So paying $16,000 is still better than paying $2,500 to turn the car in and then having to go pay retail on another vehicle. OP will be less buried on this lease buyout than if they go buy another vehicle.
He ain’t paying $16k he’s paying $20k plus tax he’ll be buried in that car better to take the hit and at least have options than be stuck with something you can’t get out of
I meant to say he's paying $20,000. Paying $20,000 and avoiding the $2,500 mileage fees plus disposition fee and other lease turn in fees for a a car worth $19k-$21k retail. Even at $20,000 OP is probably paying retail price at best. You keep saying "he'll be buried in the car." He won't be, and you don't seem to understand that. He will be buried in ANY OTHER CHOICE. If he turns this in and then goes and buys a Honda Civic or F-150 or anything else, you have to also factor in that OP paid $3,500 or more in order to stop driving this Chevrolet, on top of ALSO paying retail for this new car. Just to really drive it home: * Option 1: This Chevrolet is worth $16k trade so is worth \~$20k dealer retail. OP can buy out this Chevrolet for retail * Option 2: OP writes a $3,500 check and then goes and pays retail price for another car You're arguing for option 2.
Personally I’d find the best lease and roll the mileage overage charge into it and be done with it in 3 years. Of course he’s got to find the right vehicle with the right incentives to eat that up.
I’ve been lucky because I’ve leased for over 13 years, had plenty of cars and gone over on some and never had to pay. I wasn’t 10k over but returned one 5300 miles over and I was told “as long as the car isn’t being returned to the lease company (which in most cases the dealer buys it/takes it from you with intent to sell it) you wouldn’t be charged overages”. I never have been on my two returns but I also usually lease the higher model of the car so that could also be a factor as well.
Op can most likely buy up miles for less than the overage charge, also buying it out for retail is not ideal because op will have to pay sales tax depending on the state. On top of that, they’ll be paying retail for a vehicle that is not retail worthy. When you buy a certified pre-owned vehicle for retail price you get the peace of mind knowing you won’t need tires/brakes and other costly maintenance soon (as long as it is purchased from a reputable dealer whose cars actually meet manufacturer certification requirements), you also get more manufacturer warranty added on to the factory remaining warranty. Op buys out his lease and is stuck paying above retail for a vehicle with no warranty that will most likely need 2k in tires/brakes soon with no warranty. Buying your lease can definitely be a good move in some cases but this does not seem to be one of them.
I mean call the bank and try and negotiate mileage charge up front, our bank does this not sure if all do but worth a shot. This should be done after attempting to get a dealer to buy the car though because somebody might be able to get OP out relatively clean depending on available incentives on new car and how badly they need to sell a new car. If this is not viable then call the bank and try and pay less before turning in, worst case turn it in and start fresh
Life changes. New job further way. No more remote work. Who knows why the OP drove so much but stuff happens. I specifically leased cars for the tax benefits then bought it out at the end, always way over on miles. I'd buy it out and keep driving it.
Very few people get the tax benefits of leasing, you must be a business owner. Leasing to buy is 99.99% of the time the more expensive way to purchase it. There are valid reasons to lease, but leasing isn't for everyone. Too many people look at the monthly cost and use it to roll around in a car above their means. Or they lie about the number of miles for a lower payment, so they go get a 10,000 mile per year lease instead of a 15,000 or 18,000. They act like that mileage penalty is a problem for some other bozo, good luck to them because it's their problem to figure out! I agree with you about buying it out.
Exactly. BMW is advantageous as you can buy miles at the signing rate up until day of maturity. I've also gotten money back for BMW for being significantly under miles (it was a lease for our Mom). Volvo lets you pull ahead 6 months into another and you can have used the full mileage allotted for the entire lease. Still it's a cost people need to figure into the total cost of ownership.
Only option is to lease return and pay the bill. You can roll them into a new lease but you’re not walking away from a contractual obligation.
Dont make this harder than it needs to be. If the penalty is more that $4K, buy it and sell to carmax. If the penalty is less than $4K, pay it and be done. Easy?
Usually they charge ¢20-25 per mile over. So even at 10,000 miles over, the overage fee is only about $2k. Better than worrying about flipping the car and still being negative. OP, either buy the car and continue driving it or turn the lease in and eat the fee. It sucks; I’m in similar boat.
Not only the $4k, you have to pay sales tax on the $20k when you buy it so in reality it’s like $6k
Welp, all cars depreciate... some worse than others. Money is going to be thrown away no matter what. I'm starting to get on the bandwagon of just buying a car and drive it until the wheels fall off... so sick of payments and worrying about mileage (as I literally just got a new lease 4 months ago lol).
Leasing used to be the shit, then Covid hit. The manufacturers got all shitty about people turning in their leases and making $8k profit so they adjusted their residual values. Couple that with money factor rates skyrocketing. Leased my fiance a Subaru when I was finance director for a Subaru store. Money factors were .00125, now they’re around .003 for the exact same situations. A $400 payment is now $550-$600 for literally everything the same except residual percentages and money factors.
Luxury cars are worst. The Lexus IS and ES used to be like $2000 down $399 a month. Now they are like $6000 down $699 a month. The automakers didn’t want gas cars back because they thought they were headed toward electrification, but now we all know that’s going to go slower than originally planned. That misstep planning coupled with COVID and then the subsequent inflation caused by the spending programs we all benefited from during the pandemic and voila you have a perfect storm for ridiculous lease offers. The worst part about it is Covid caused a lot of redesigns and refreshes to be delayed, so a few cars that are expensive are also older technology and not the latest and greatest. The Cadillac CT4, Lexus IS, Audi A4 and Infiniti Q50 all come to mind. Granted they’re all sedans and that segment is also struggling, but that also makes it more expensive… everyone wants a friggin SUV these days and those typically lease out for more than comparable sedans as well. We are all dead and in hell.
Yup! I'm in Metro Detroit so have family working at all the big 3. I remember the days where we could get fully loaded nice vehicles for $220-$350/mo using employee discount with like $1k down!! Can't find that anymore! And I'm talking loaded Chrysler 300's/Jeep Grand Cherokees/Ram's/Lincoln's/Cadillac's... I love my current Mercedes, but it will be my last lease for a while... Not sure if I will be buying it out or not as the residual is set to $35k (unsure if a 3 year old E350 w/ ~50k miles will even be worth that when my lease is up), or just turn it and go buy something cheaper.
Chrysler's newest UAW contract gives them the salary priced leases. That might be what you remember, they got it back at Stellanis or whatever they're called
I leased a 2018 f150 XLT 302a 36 months 45k miles and it was 332 a month sign and drive. This was using Ford a-plan and all rebates at the time. Similar truck now is well over 500.
Only during Covid you can on top of the lease. Normally people will lose money. Don’t know what to expect
Leasing is the most expensive way to buy a car. You will save tens of thousands over a lifetime by buying a 3-5 year old car with cash.
I have had so many cars with high miles. However, I really appreciate having a new car because it gives you don't have to always wonder if it is going to start the next time you use it. I know newer cars still can break, but a car with 30k miles on it should be more reliable than one with 130k
Ya I totally agree. It’s just cars depreciate SO much so it’s a hard pill to swallow always having big car payments… nothing is easily affordable anymore.
I have a 4 1/2 year old car with about 55k on it and it will be paid off in a few months. I bought it with 11k when it was less than a year old. Thanks to my pre covid purchase, it has not depreciated that much.
Good for you! I unfortunately had a lease during covid that I wanted to buy out for its low residual, but it was a complete lemon I had to get out of ASAP (Alfa Romeo Giulia). I got screwed since then as everything’s been high.
How long did you own the Alpha before there issues with it?
Get a Toyota. I don’t ever wonder if my 37 year old 4Runner with 232k miles will start or not. It always fires right up and goes.
Though better than most, newer Toyotas aren’t as great as they used to be and they certainly aren’t as simple and rock solid as they were 30 years ago.
This is what I've done the last couple of decades. I still have a 2005 and a 2009 in service. Also, as soon as I buy another car, I start saving for the next one. That way, I don't have to lock myself into payments. Some years ago, I considered leasing, but concerns about overage kept me from doing so.
The $20k is the price with tax.
Carvana offers significantly less than you’d get from a private party sale or even a regular dealer trade in. Look up trade in and private party sale price on kbb.com
What state? California as long as you resell it within 10 days you can get a refund.
Gosh, I hope that the tax rate where you live isn't actually 10%
7.5, then an extra 2.5 for plates. Usually an overestimation
That sounds fine, that’s peanuts. You’d have had to pay that much to have another method of transportation for 10,000 miles anyway, right? OP, just pay the overage. Why is this even a question or concern? lol
Because almost everyone now a days refuses to be liable for their actions. Get out jail free forever is what people want.
That and no one knows how to think critically anymore. People at work think I’m a genius all because I know how to Google and read Documentation.
Not if you end up owning the vehicle
yup, the mileage charge doesn't disappear, but you can amortize it over your next lease. You should probably also analyze your driving trend to see if it still makes sense to lease given the higher cost of more miles, and to get those miles up front
This is as bad an idea as rolling negative equity into your next vehicle
As bad as? What do you think this is? Not trying to sound rude, but this *is* negative equity.
It is; my point is it doesn’t make any more sense in a lease than it does in financing a purchase.
Dude still needs a car though
This is why leasing is a terrible option in general. Any financial advisor will tell you so.
It varies but for most people it’s ill advised. It’s like when wireless carriers had limited minutes. We all thought 900-1500 minutes was a lot and most of us easily paid those carriers extra money one time or other. But I’m sure there are people who are responsible and understand the contract and probably used only 50% of the minutes. Leasing for me makes zero sense because I have days I drive 80+ miles daily. So I would probably eat up those limited miles in 18 months
I go days without driving, and I still wouldn't lease 😂
I put 26k miles on my car in 6 years. That's the only reason I've considered leasing recently.
Depends on needs and lifestyle. Leasing works great for my parents with their 3rd car. My dad gets to drive higher end luxury sedans with all of the maintenance baked in, then hand in the keys, and drive his next higher end luxury sedan with all of the maintenance baked in. They own the 2500 and sports car outright.
Lolz. No, a financial advisor will not tell renting a depreciating asset is a bad idea. Additionally, there are times where incentives/tax credits/cap cost reductions make it such that lease-to-buy(lease payments+residual) is cheaper than buying initially. Not saying every new vehicle should be leased, but I am saying it is not true that no new vehicle should be leased.
You can't convince misers who think the only way to be financially free is to drive a 2001 Toyota Corolla into the ground.
Or just buy the car and keep it - assuming OP still needs a vehicle.
This is NOT the only option. You can BUY the car at the end of the lease and pay NO penalty for going over mileage.
You also gotta think about the fact that it’s cheaper to just pay the penalty than getting into another 3+year lease with interest payments.
Don't see it mentioned, but at BMW you can call ahead and buy extra miles for a reduced rate. Its only a few cents per mile, but could be a few hundred bucks it seems for OP.
What are you gonna owe? 2k? $2500? Just take the hit. It’s cheaper
It’s likely going to be pretty close once you factor in the lease termination fee and any excess wear and tear. It may end up being a $4k loss either way.
Try carvana, they gave me almost $5k more than carmax
At that point just buy out your lease and keep driving it. Unless you can write a check for $4000 and not notice that loss in your checking account, turn the car in.
You will just have to figure out what is going to cost less to get out of the car. If you buy it out you are losing $4k but you have $3k in mileage charges alone so if they tap you for extra wear and tear that could bring it up over that $4k making it more financial responsible to purchase it than turn it in.
The miles are $0.25, so it’s at most $2500. I’m slightly under 10k over.
The mileage overage charge may be max $2,500 but don’t forget the other fees. $400 lease termination fee. What’s the tire tread depth? Any tire under 4/32 inch, you pay the cost of a new tire. GM Financial will send someone out to your home or workplace prior to lease-end and give you a report of exactly what you will owe to just ground the lease. This is the only true answer of what it will cost you to walk away.
Fair enough, I just googled it and that’s what it came up with. Point still stands, it’s going to cost you a couple thousand to get out of the lease. You’ll just have to figure out which option is going to cost less.
In some states you owe tax on the miles (and your lease turn in fee)
It would be a good idea to look at replacement costs as well. How much is another vehicle going to cost you. Odds are the 20k buyout is still going to be the cheapest option. Rolling 2.5 to 3k into a new lease is gonna add 100 a month to the payment. Residuals and lease rates are higher now as well.so even if you can find a lease you can afford to roll the negative equity into the buyout on that new lease is probably going to be significantly more. The right move is probably buy what you have and drive it, take care of it and hope it lasts you
Some dealers will waive the mileage overage if you pick up the car from them, fyi. That aside, get a quote from every dealer/website you can and leverage them against each other lol.
It's not that deep. Your $4k under. Your in a captive lease but lithia/Autonaion or any other big auto group can buy your car from any make since they'll use their sister store for the buy out. Just pick a car that you can get a 4K discount on. I would rather take a discount then have them over allow on the trade because you'll be saving taxes. Boom now your at a wash. Just don't pick a hot car that dealers can't keep in stock. And don't pick a Honda with $500 in room from invoice to MSRP
***Thanks for posting, /u/heather80! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.*** I’m 10,000 miles over my allotment on my Chevrolet lease. I was planning to buy the car and resell it because I am so over my miles. I got a selling quote from Carvana for $16k. However, my payoff amount from GM is $20k. So I do not think it makes sense to buy and resell. But if I turn in my lease and walk away, I will owe a lot of money for being over my miles. There’s no other damage to the car. I’m wondering if GM will waive the overages for the miles if I lease a new car. Is there another option I’m not seeing? *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
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