Getting out of lease options

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Topic Author
Rifampin
Posts: 104
Joined: Sat Jan 16, 2016 9:13 am

Getting out of lease options

Post by Rifampin »

I already know this is a losing proposition. I am 1.5 yrs into a 3 year 36k mile lease on a 16' Volkswagen GTI. I severely underestimated my annual mileage and thus only have 13k miles. Monthly payment is $390 and buyout is currently around $20,200. Trade in value is anywhere from $17.5k-17.8. While private party is around $19-19.5 k

I am looking to purchase a CPO 16' 370z for around 26k. Does it make more sense to buy my lease out and deal with the hassle of selling it privately? Or take the 2k loss but recoup some of that on taxes when I trade it in. This was my first time leasing and I anticipate that we will pay cash for our vehicles from here on out. On a side note we have already met our yearly savings goals and live below our means. However, my one vice would be the the desire to have a sports car.
killjoy2012
Posts: 1329
Joined: Wed Sep 26, 2012 5:30 pm

Re: Getting out of lease options

Post by killjoy2012 »

Another option would be swapalease.com, but given you're so far over on the term-to-mileage ratio, odds are anyone interested in taking over your lease would want it at a significant discount. Not sure if that discount would be more or less than your other stated alternatives.

Or just park/turn in the car as it approaches the mileage cap, and then rent (monthly) or purchase another vehicle to cover your needs.
delamer
Posts: 17348
Joined: Tue Feb 08, 2011 5:13 pm

Re: Getting out of lease options

Post by delamer »

If you ended up going 10,000 miles over the lease mileage (which it sounds like you are on track to do), how much would that cost you if you held onto the vehicle until the lease is over?
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
Topic Author
Rifampin
Posts: 104
Joined: Sat Jan 16, 2016 9:13 am

Re: Getting out of lease options

Post by Rifampin »

delamer wrote:If you ended up going 10,000 miles over the lease mileage (which it sounds like you are on track to do), how much would that cost you if you held onto the vehicle until the lease is over?
Actually I am on track to do the opposite. I only drive about 6.5k miles a year it is a 2016 model year but I began the lease in Nov 2015. I considered swapalease but the fine print states that I will still be held liable as the primary lessee if the person taking over happens to miss a payment. I hate the idea of turning in a 36k mile lease with only 20k on the odometer.
delamer
Posts: 17348
Joined: Tue Feb 08, 2011 5:13 pm

Re: Getting out of lease options

Post by delamer »

Rifampin wrote:
delamer wrote:If you ended up going 10,000 miles over the lease mileage (which it sounds like you are on track to do), how much would that cost you if you held onto the vehicle until the lease is over?
Actually I am on track to do the opposite. I only drive about 6.5k miles a year it is a 2016 model year but I began the lease in Nov 2015. I considered swapalease but the fine print states that I will still be held liable as the primary lessee if the person taking over happens to miss a payment. I hate the idea of turning in a 36k mile lease with only 20k on the odometer.
So why not just keep the car? You are increasing the cost of buying the other car by whatever you lose on the lease.
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
Topic Author
Rifampin
Posts: 104
Joined: Sat Jan 16, 2016 9:13 am

Re: Getting out of lease options

Post by Rifampin »

delamer wrote:
Rifampin wrote:
delamer wrote:If you ended up going 10,000 miles over the lease mileage (which it sounds like you are on track to do), how much would that cost you if you held onto the vehicle until the lease is over?
Actually I am on track to do the opposite. I only drive about 6.5k miles a year it is a 2016 model year but I began the lease in Nov 2015. I considered swapalease but the fine print states that I will still be held liable as the primary lessee if the person taking over happens to miss a payment. I hate the idea of turning in a 36k mile lease with only 20k on the odometer.
So why not just keep the car? You are increasing the cost of buying the other car by whatever you lose on the lease.
Well for one I would like to get back into a 2-seater rwd sports car. I would prefer to not sink any more money into leasing this car(approx 6k + $300 return fee and any possible future wear and tear)
and use that towards the purchase of the 370z. I understand either way I will be losing on the lease, just trying to figure out the best way to go about doing it.
bluebolt
Posts: 2136
Joined: Sat Jan 14, 2017 8:01 am

Re: Getting out of lease options

Post by bluebolt »

Rifampin wrote:I already know this is a losing proposition. I am 1.5 yrs into a 3 year 36k mile lease on a 16' Volkswagen GTI. I severely underestimated my annual mileage and thus only have 13k miles. Monthly payment is $390 and buyout is currently around $20,200. Trade in value is anywhere from $17.5k-17.8. While private party is around $19-19.5 k

I am looking to purchase a CPO 16' 370z for around 26k. Does it make more sense to buy my lease out and deal with the hassle of selling it privately? Or take the 2k loss but recoup some of that on taxes when I trade it in. This was my first time leasing and I anticipate that we will pay cash for our vehicles from here on out. On a side note we have already met our yearly savings goals and live below our means. However, my one vice would be the the desire to have a sports car.
OP - Looks like you severely *overestimated* your annual mileage, not underestimated. You may want to fix your post so it's more clear to future readers.
delamer
Posts: 17348
Joined: Tue Feb 08, 2011 5:13 pm

Re: Getting out of lease options

Post by delamer »

bluebolt wrote:
Rifampin wrote:I already know this is a losing proposition. I am 1.5 yrs into a 3 year 36k mile lease on a 16' Volkswagen GTI. I severely underestimated my annual mileage and thus only have 13k miles. Monthly payment is $390 and buyout is currently around $20,200. Trade in value is anywhere from $17.5k-17.8. While private party is around $19-19.5 k

I am looking to purchase a CPO 16' 370z for around 26k. Does it make more sense to buy my lease out and deal with the hassle of selling it privately? Or take the 2k loss but recoup some of that on taxes when I trade it in. This was my first time leasing and I anticipate that we will pay cash for our vehicles from here on out. On a side note we have already met our yearly savings goals and live below our means. However, my one vice would be the the desire to have a sports car.
OP - Looks like you severely *overestimated* your annual mileage, not underestimated. You may want to fix your post so it's more clear to future readers.
Yep - I thought you had 13K left, not that used only 13K.
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
sweeden22
Posts: 29
Joined: Fri Nov 18, 2016 5:11 am

Re: Getting out of lease options

Post by sweeden22 »

GTI is massively fun to drive. I realize Z is RWD, but I assure you the enjoyment level is not going to be enough difference to end lease early. I would probably prefer the GTI anyway. Enjoy the rest of your lease.

I have RWD small car and I respect GTI.
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