Topic: Advice on what to do with end of lease, please...

[siwash]

Hi folks,

My 4 year lease is coming up at the end of May. I've gone over by about 20k+ and  either buy it back and keep it or pay the .08/km penalty and walk away...the dealership has suggested paying out the penalty as being the 'cheapest' route...but this isn't the cheapest as I would still have to buy something new after paying $2000+

I'm leaning toward the $7,500 (+tax) buyout today, including paying for the remaining months on the lease, and keeping it for now...then sell it sooner or later...

what would u do in my shoes? I am getting pretty bored with what I have but it's incredibly practical and economical...then there's the smartest money aspect..

thanks

[rrocket]

What kind of car is it?

[articsteve]

Without knowing what your currently leasing and mileage it's hard to give you advice.  However, I'd probably buy back the car and sell it privately later rather than pay $2K plus tax for the mileage penalty.  

[Leviathan]

What kind of car is it?

04 Corolla?

[tortoise]

A quick search on autotrader revealed this:



Granted these are asking prices, but it looks like buying it out then selling it is the way to go.

[2latecrew]

Tortise beat me to it. Buy it out and put it back up for sale ASAP. Between the new Corolla model coming out and some manufaturers droping new car MSP and US imports I don't think used car price will rise. It is a Corolla which tends to be a highly valued used car so its not a panic that its value will tank I guess.

[Guy]

At least try to negociate the buy out price.

[siwash]

At least try to negociate the buy out price.

Yes, it's an 04 Corolla. It currently has 113,000KM. The max allowance is 96k.

It's in great shape...I have every single receipt. No accidents, syn oil...about an honest 75% of the mileage is hiway as I was commuting heavily b/w Mtl and T.O.

I did not now you can negotiate a buyout price!!! Is this possible? I thought once I signed that agreement, it was an agreement to pay the residual if I bought it..

[Cord]

Negotiating is only going to work when you have some leverage. If this Corolla is indeed actually worth considerably more than the buyout then Toyota is going to be compelled to sell it to you for even less? Why would they do that? If you don't buy it out then you are looking at owing Toyota money for mileage charges. It sounds to me like you don't have a leg to stand on in convincing Toyota to sell the car for less than the contracted buyout.

[siwash]

Negotiating is only going to work when you have some leverage. If this Corolla is indeed actually worth considerably more than the buyout then Toyota is going to be compelled to sell it to you for even less? Why would they do that? If you don't buy it out then you are looking at owing Toyota money for mileage charges. It sounds to me like you don't have a leg to stand on in convincing Toyota to sell the car for less than the contracted buyout.

That's what I figured!

However, my brother has leased two cars from the same dealership (Solara and Camary) and my dad is seriously considering buying a Toyota from them (family loyalty discount??). In addition to this, I have spent a fair amount a money on all my servicing at  the same dealership...just dropped $220 on a scheduled service.. I suppose they could at least waive the admin fee!

[EV Dan]

Care to post a picture?

[2latecrew]

He has nothing to lose by asking though. If they say no no big deal no harm done. you don't ask you can't possibly get. I agree he probably won't et. Its not in their interest for him to buy it out. If he turns it in not only do they get a car that they can sell for a nice profit but a nice mileage overage check to bank.

[siwash]

He has nothing to lose by asking though. If they say no no big deal no harm done. you don't ask you can't possibly get. I agree he probably won't et. Its not in their interest for him to buy it out. If he turns it in not only do they get a car that they can sell for a nice profit but a nice mileage overage check to bank.

True...plus I've taken care of their car by regularly servicing it...

Post a pic? I guess I could...it's a corolla! (ZZZZZZZ!!) I don't have one so I'll have to take one.. Are you interested in buying it?!


Anyhow, I figure I could get 12 G's

BTW, it's a pretty base model; 5spd manual, A/C, CD, keyless...crank windows...that's all, folks!

[Cord]

Negotiating is only going to work when you have some leverage. If this Corolla is indeed actually worth considerably more than the buyout then Toyota is going to be compelled to sell it to you for even less? Why would they do that? If you don't buy it out then you are looking at owing Toyota money for mileage charges. It sounds to me like you don't have a leg to stand on in convincing Toyota to sell the car for less than the contracted buyout.

That's what I figured!

However, my brother has leased two cars from the same dealership (Solara and Camary) and my dad is seriously considering buying a Toyota from them (family loyalty discount??). In addition to this, I have spent a fair amount a money on all my servicing at  the same dealership...just dropped $220 on a scheduled service.. I suppose they could at least waive the admin fee!

Don't confuse the dealership with the leasing company. You will be buying the new car from the dealership. You will be buying out your leased car from the leasing company.

[Johnny Quest]

First, read the fine print on the lease.

I suspect that you have the right to buy out the vehicle at the residual.  If so, then find out what the vehicle is worth (if it's worth 12, great).  If the fmv is greater than the buyout, then the dealer should be willing to take it as trade on a newer with your equity (the 12 less the buyout).  Keep in mind that if you buy it out or trade it, you should not have to pay any mileage penalty (as it is implicit in the fmv).  Keep in mind, as well, the dealer will only give you wholesale value on the vehicle as a trade.

[Cord]

He has nothing to lose by asking though. If they say no no big deal no harm done. you don't ask you can't possibly get. I agree he probably won't et. Its not in their interest for him to buy it out. If he turns it in not only do they get a car that they can sell for a nice profit but a nice mileage overage check to bank.

That's fine. But there's no sense going in and making a fool of yourself.

[2latecrew]

He has nothing to lose by asking though. If they say no no big deal no harm done. you don't ask you can't possibly get. I agree he probably won't et. Its not in their interest for him to buy it out. If he turns it in not only do they get a car that they can sell for a nice profit but a nice mileage overage check to bank.

That's fine. But there's no sense going in and making a fool of yourself.

Fools are people who are so concerned about looking "bad" in the eyes of someone they really could care less about that they won't ask a simple question to possibly get a great deal.

Its amazing what can happen sometimes if you just ask. If you don't ask you don't get.

[tortoise]

A fool is also someone who asks a question when they already know the answer.

[siwash]

A fool is also someone who asks a question when they already know the answer.

 

you're not referring to me, are you??!!