View Full Version : Car Lease,,,I want out!
How do I getout of my lease? A 2001 Celica with 24k. Loan value is 10,600. Buy out is 15k. Then you have tax, title , liscense. Do I take the hit on a trade in? If I buy it I can`t sell for what my investment is. Seems that once you lease you keep leasing or take the hit sooner or later.
totenhosen
12-23-2003, 04:36 PM
Originally posted by titties and beer
try and get someone to take over your lease
Bad idea. You are still responsible for the payments. So if do taht and the other guy decides he doesn't want to make the payments any more they'll come to you to make the rest.
Leases are good as long as you don't go over the alotted mileage allowed. if you don't you'll never have to worry about negative equity.
Sell it for 12,500 take the loss and do not lease again. Lease is a poor way to spend your money.
Keithb87
12-23-2003, 05:00 PM
If it gets stolen and burned............ :D :D
nodigg
12-23-2003, 05:04 PM
I sympathize with you. You have just learned about the down side of leasing. Low or no down to get you sucked in to a car you should not get becasue you did not have the down payment saved up. Then you try to sell it or get out of the lease and BAM! It gets ugly. Leases can be great for business but like it says above, suck it up, take the loss and learn not to do it again. If you don't drive much they can work but if you like to drive...forget it!
nodigg
12-23-2003, 05:12 PM
I leased my Tahoe(for work) wnet 198,000 mile in four years. Had to buy it for more than it was worth of course! Ouch! Last one for me. I drive too much!
Havasu Hangin'
12-23-2003, 05:48 PM
Leasing is all about the capitalized cost (the amount you lease) and residual value (the value at the end of the lease). If you lease a car that depreciates faster than the payments, you more likely will turn it in to lease it again.
If you take the capitalized cost and add the residual value...I'll bet it's more than the dealer invoice when the car was new.
Capitalized cost and residual value are variables in a lease- sometimes negotiable.
I think BMW stills subsidizes it's leases...it creates "owner loyalty" (AKA- a vicious cycle)
The only way to win on a lease is to see the lease to the end, and hope the leasing company will negotiate the buyout price against the residual value...then you may be able to buy the car for less than market value.
As for being upside down in a car...that happens on both leasing and buying- the difference is at the end of the contract, you have some equity at the end of a buy- a lease you got nothing.
Daytona19
12-23-2003, 05:53 PM
Dont ever lease a ford, they really doink you when you try to get out. Espically if you want another make of vehicle, you wont get dirt for your lease trade. Ford leaseing has you by the balls when it comes to that, so 1st rule is dont lease if you drive very much then 2nd rule is no ford leases if you ever want out its IMPOSSIBLE.
anxious
12-23-2003, 05:57 PM
never lease a car
Starloans
12-23-2003, 06:20 PM
Well here in San Diego, 17 miles from the Mexican border, we...........well do I need to tell you what we would do with it? :D
Never lease a car.
10 years ago before I became a mortgage broker I contemplated working for for a local Cadillac dealer selling cars. They also sell Hummers and GMCs. I went in for a couple of days to check it out and I'll never forget what the sales manager told me. He said "If I can get em to lease it I'll get every penny they have to spend on a car". :yuk: I didn't go back.
v-drive
12-23-2003, 06:32 PM
Ditto on the never!....v-drive
Hey HOSS.. you ever hear of "GAP"insurance?
take a careful look at your policy, if you find that you do....you're in the money!
LASERRAY
12-23-2003, 08:14 PM
Clean the VOMIT/URINE stains off the seats, run over a Skunk, and they may knock a couple hundred off the price!:D :D :D
THATJEFFGUY
12-23-2003, 10:35 PM
Hey..
toddnjuzz is right..GAP insurance is the only way to go !! Not hard to figure out !! Good luck !
hislittleho
12-23-2003, 11:50 PM
I say don't ever take on to a lease. Buy the car/truck/van/Whatever. Just don't lease.
Hi Hoss :D How are ya!:D
TOBTEK
12-24-2003, 02:48 AM
you all have only touched on the EXTREME downsides to leasing. There are also huge downsides to std financing as well! Say you BUY a new car either on a retail loan or even pay cash...you sell it for any reason down the road, two months or two years...how much of your sales tax you paid gets returned? That would be zero! You do know that you only pay tax on your monthly payment on a lease right. That can be a very large sum of money thrown away. Say your buy out is $20,000.00 at the end of your 36mo lease, when you trade that back to your dealer you havent ever paid that tax (different in some other states im sure) ALSO, Have you ever known anybody that has been in a accident in there car???? Whenyou sell that car you have a legal obligation to state the damage that occured. Now, even though your insurance Co has repaired this car its worth far less now after the damage, and that money is coming right out of your pocket. Or how about IF its stolen on a retail loan:( EVERYBODY knows someone where there payoff was higher than what the insurance company would payoff...real bad deal! OR three years into a retail loan, Your sick of the high monthly payment (with a few more years left) your warranty has expired at either 36K or 50K depending on what you bought three years back. and now your transmission fails, motor breaks, Ect...you get the joy of making that same high payment and paying to repair your three year old vehicle. BOTH have positives and neg's! I really like that fact that on the leases I write, that the bank flat out tells you what your selected car is worth down the road...when you lease it. now IF anything has happend to it, its been a P.O.S, I just want something different because my needs and wants have changed....Great, throw me the keys and off you go. BUT, the bank told me years ago it was worth "X", if you still like it and your buy out is lower than current market value...THEN buy the balance and pay the tax on the portion you never did to start with. How about the cost of money??? I have money factors every month on really nice C.P.O cars down around the 1.3-1.6 range...SUPER CHEAP MONEY!Can you think of ANY investment (other than the stock market in recent years:( ) Where you can buy something for say 50K and in two years it goes down 40%...cars are the WORST investment out there, why would you want to wrap up a bunch of your own money in one? Id rather invest in something solid...like a new boat:rolleyes: There is good and bad on both sides of the old lease/retail debate. Oh and I ALLWAYS love it when people say NEVER to lease a car "I would ONLY buy a car and never lease one" as they are signing RETAIL LOAN DOC'S. Hmmmmmm sir, you dont own it the bank does, hehehehe. SO hows that for a 2.45am ramble?
Flying Tiger
12-24-2003, 04:08 AM
Originally posted by TCHB
Sell it for 12,500 take the loss and do not lease again. Lease is a poor way to spend your money.
I've never seen anyone lease and not come out of it upside down and unhappy.
Jrocket
12-24-2003, 07:53 AM
:D Not bad for 2:45.
totenhosen
12-24-2003, 07:54 AM
Originally posted by Flying Tiger
I've never seen anyone lease and not come out of it upside down and unhappy.
Thats most likely because they don't adhere to the rules of leasing. If you read the docs going in and know your limitations (ie mileage etc) it is a good deal. I have never been upside down on my three leases because in the end I just turned it in at the dealer and drove away with a brand new car every three years without a single cent coming out of my pocket for repairs.
TOBTEK
12-24-2003, 08:15 AM
Originally posted by totenhosen
Thats most likely because they don't adhere to the rules of leasing. If you read the docs going in and know your limitations (ie mileage etc) it is a good deal. I have never been upside down on my three leases because in the end I just turned it in at the dealer and drove away with a brand new car every three years without a single cent coming out of my pocket for repairs.
We also turned back our two year old X5 with a year left on the lease....BMW bank charged me $84.00 to walk away.....those bastereds:D ....."anything purchased correctly, is already half sold" A wise man once told me.
Havasu Cig
12-24-2003, 08:29 AM
When we first met we leased a car for my other 1/2. I will never lease again!!
At the end of the lease the car was worth more than what we owed on the lease so we decided to sell it. The problem is that you can't transfer title to a third party. We would have to pay off the car, get the title transfered to our name, and then sell the vehicle. Big F@#king hassle, and when we leased the car I asked the dealer about doing this and they said it would not be a problem. F@#king liar.
Well it all worked out in the end, but I prefer not to lease now.
BTW: unless you just drive around town you will almost certainly go over the mielage allowed.
Originally posted by totenhosen
Thats most likely because they don't adhere to the rules of leasing. If you read the docs going in and know your limitations (ie mileage etc) it is a good deal. I have never been upside down on my three leases because in the end I just turned it in at the dealer and drove away with a brand new car every three years without a single cent coming out of my pocket for repairs.
That was the plan. I still stick by that if you plan to drive a new car every 2 or 3 years leasing is the way to go.
My wife has scraped a pole with the front bumper (not bad), dings galore from work. This will affect my trade in I`m sure. We are WAY under mileage so thats not a concern. What if I go trade it in on another lease at a different dealership/manufacturer? pros and cons of that? I want the Q35 or the 330i. What are the draw backs? I really would like to have a new car every 3!
And its true. I never had to pay for any service/repairs. I like that idea most. Plus towing is free if needed. I`d rather the new car every 3. What to do now? Toyota has nothing I want.
Remember: mileage is of no concern.
mbrown2
12-24-2003, 08:43 AM
I would try to sell it for the going rate on the market and take the loss...I have had good and bad experiences leasing, but it always due to the program at the time or the cost of money...have leased an Acura and at the end we turned it in for nothing and the payments and the money factor was low...same with a ford 4x4 about 6 years ago...On the ford I was able to turn it in a year earlier to a BMW dealer since its retail value with the milage and condition was much higher than the lease still owed value...Now on the Bimmer, the factor was higher and I was never in a position to get out by selling and taking a loss...
Like Cig said, the selling of a lease vehicle is a little more hassle, but we have done it with a Tundra and were able to get it completed...both vehicles are purchased now since finance rates at the time were lower than the lease programs at the same time....I think their pros/cons to either....However, if you are going to drive a ton of miles (tow vehicle), factor that into the lease up front or buy so you don't need to worry about it later
I have had a few leases. The wife likes to ahve a newer car every few years so it works out for her, although we baught the last one. I lease once for myself. It was a Ford Mustang and was actually used. it had 7000 miles on it. the lease gave me lower payments for 2 years and the residual value ended about 4 k below low blue book, so i financed the rest for another 3 years, but I was not upside down in at least.
The next was a situation like HOSS has. I had sold the Mustang after 9 years and purchased a BMW for the wifey. Now I drove the car she had, an Explorer, hated it. Anyway that was a 4 year lease and I found a great deal on a Ford Supercrew. The truck was at a chevy dealer used with 6800 miles on it. The lease still had about a year left. Long story short They gave me check for just over 3000.00 and told me to add 1,000 to it, told me to pay off the lease and turn in the car and they financed my new truck with nothing down.
I was lucky because it was a used truck, if you call 6800 miles used, but it was 10k less than a new on, so the payments were close to the lease I was paying. I just don't lease because I drive a lot, so I go over the milage easy.
Just a note I believe you can up the milage on the lease if needed.
HOSS, I would say go to a few dealers, at the end of the month and see if you can find a desperate dealer in need to meet a sales quota.
totenhosen
12-24-2003, 09:00 AM
Originally posted by Havasu Cig
When we first met we leased a car for my other 1/2. I will never lease again!!
At the end of the lease the car was worth more than what we owed on the lease so we decided to sell it. The problem is that you can't transfer title to a third party. We would have to pay off the car, get the title transfered to our name, and then sell the vehicle. Big F@#king hassle, and when we leased the car I asked the dealer about doing this and they said it would not be a problem. F@#king liar.
Well it all worked out in the end, but I prefer not to lease now.
BTW: unless you just drive around town you will almost certainly go over the mielage allowed.
It's not any different than if you buy a car and sell it to someone else when you still owe money on it.
my only question is...... what are you doing driving a "celica":D
ratso
12-24-2003, 09:07 AM
Yeah Hoss, with a "tool" like the one you posted...you should at least be in an F350. I'd go back and punch the salesman out that sold you a Celica.:D
Relax boys. It`s the wife`s car. I like cruising in it sometimes though. get to look cool like the young guys. Got a good stereo and I crank up DIO, Accept, Keel, Danzig`s Mother `93, AC/DC, and of course Fastway. Only people my age get it though.:D
01 Celica: 10g loan, Buyout is 15k. what the hell am I going to do? Guess I gotta go see the Infinity and BMW dealers. I am thinking of financing the 15k. But then I have tax, title and liscense. I may try to sell it. That is a thought.
Want the F-350 dually. But I need to start working again to get it.:D And the thought of that just sucks. I need to open a business. Talking to a few people interested in partnership on Lawn Equipment Sales and Service, Finsh shop(powder, chrome, anodize, nickle), Marine Equipoment Sales and Service, and of course ye ol mechanic shop.
The biggest problem with leasing is lack of knowledge. The interest rate you pay and other important factors are hidden away unless you know what you are looking at.
My ex-partner leased two F-150s and had no fng clue what he was doing. But, he had a "friend" in the business. Of course at end of term the trucks were over mileage and used up, so the stupidly low mileage and idiotic residual he agreed just cost more money at the end. Those $22K trucks cost us $34K each. ****in' dumbass.
I leased two more four years ago, the lease is up in February. I got a smokin' lease factor and a 20% residual with no mileage limit. In other words, unless the truck is worth less that $4,400 I just walk away. It's not hard to figure out a 2000 year model pickup is gonna be worth more than that. So the total of payments for 48 months is $23,380, just a bit over the cash purchase price. With the tax benefits it's a good deal for me.
I can spend $4,400 and keep 'em, or get new ones and start over.
Interestly enough, I bought a new F-150 earlier this year through Ford Credit. With the rebate and interest rate, plus the more favorable tax writeoffs passed with the tax cut bill, it made more sense to buy the truck than lease it.
Bottom line, you need to know what you are getting into, and do your homework. Leasing is OK for certain reasons, but it has some big downside if you have to get out of it.
You should be able to roll your negative equity into the new car loan. Bad thing about that is you are paying interest on it and your payment is higher.
By the way, when you buy a car ALWAYS look at the cost per thousand financed. Zero percent financing is $16.67 per thousand for a four year note. Internet calculators can provide the cost with various rates. BEFORE you go to the dealer, calculate the cost of the car, TT&L, and interest rate. Arrive at the cost per thousand you should see when the paper is signed. If the figure at the bottom of the contract doesn't match your estimate, something is wrong.
It keeps 'em honest. :D :D
Havasu Cig
12-24-2003, 10:19 AM
Originally posted by totenhosen
It's not any different than if you buy a car and sell it to someone else when you still owe money on it.
The difference is that if it is not a lease you can go to the bank with the buyer, exchange the money, and give him the title.
The lease we had was through Acura, and it was going to take 30 days to get title from Acura after we payed it off. So you either payoff the car and then put it for sale after you get the title, or you are going to have to find a buyer that is either very trusting or very stupid.
We ended up giving a car to a family member so it did not matter in the end.
totenhosen
12-24-2003, 10:32 AM
Originally posted by Havasu Cig
The difference is that if it is not a lease you can go to the bank with the buyer, exchange the money, and give him the title.
The lease we had was through Acura, and it was going to take 30 days to get title from Acura after we payed it off. So you either payoff the car and then put it for sale after you get the title, or you are going to have to find a buyer that is either very trusting or very stupid.
We ended up giving a car to a family member so it did not matter in the end.
I see. I never went that route with my leases.
nodigg
12-24-2003, 11:20 AM
Okay, we all admit that a car is an expense, not an asset.
At the end of a 3 year rental, I mean lease, you have nothing and you start over again with a new rental or buy the car again for too much money and start a whole new 3-4 year pmt plan. So you buy it twice. Purchase/Buy the same car and in three years you own it. I can't figure out where a lease has ANY advantage. Guess I am too old, stuborn and stupid to get modern concepts!:confused:
nodigg your last statement was right on cue. You have obviously never checked into leasing. Here`s the great dibango. Your monthly note is considerrably lower on a lease. And most vehicles can be leased for 0 (zero) down. Again,,,,,if you plan on buying a NEW car every 3 years then you actually pay less. Get it? I don`t care what anyone tells you. It works if you plan to have something NEW at least every 3 years.
Draw backs that I can see are:
you attain nothing after lease
you can not modify at all (even rims or stereo)
watch mileage
Good points:
lower monthly note
always warranted(if leased within warranty)
free towing/roadside assistance
new is the way to go(if you can afford it)
technology is cool
you only live once
So you see, if you plan to buy new(and wife doesn`t **** it up) then you pay less. But it does boil down to a #`s game. At any rate I might just lease again. Don`t know yet. I need to hear more.
Anyone want to buy an `01 Celica with leather(black on black) and only 26k? For 15k?
Havasu Hangin'
12-24-2003, 03:58 PM
Originally posted by HOSS
But it does boil down to a #`s game.
Hoss...you're smarter than you look.
With a lease, you are basically just paying the depreciation portion of the value. When you buy, you have to pay for the whole thing, including the equity (which is what you have left at the end).
Lease = lower payments and no worries
Buy = higher payments, but own the equity at the end
Some people have mentioned mileage. If you want to put more miles on the car than the "base" figure, then do it up front. Tell the lease guy what you want. It makes the payments higher because you are "using" more of the car, but it's almost always cheaper to roll it into the lease than pay the penalty for excess at the end.
I leased a new truck in '94, '96, and '98. I leased an Excursion V-10 in 2000. All were pretty good deals. When I got a new Ex this year, I bought it because the rebate and interest rate made the payment cheaper than a lease.
With the current deals available, purchase monthly payments can be the same or lower than leases. Just check it out, find a reputable leasing company, and make the decision.
HH do you meen residual.:D
lease...buy.....lease.....buy..... screw it, just rent the damn thing. Might cost more but you can drive a different car or truck everday :D
Badboat1
12-24-2003, 09:07 PM
BUY, lease is for peps that put big miles on them but do a spedo job on them.They turn them in and get new ones every 2 years.Spedo shows under 24k and might have 100k plus.
And if you buy and they give you a payment allways ask term and take a year off of it and see how much more it cost.
IE... less interst paid.I do 3 years and you are never upside down and the usde car market is flooded
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