Turning in a leased car

[Brad]

First time we’ve leased a car. Have a 2017 Highlander. It’s up in July. I seem to remember the sales guy telling us we could go to any other dealer and see if they wanted to buy it, not telling them it’s a lease(I would think they could look up the VIN.) is this true or should I just turn it in and pay the overage mile amount(gonna be close if not over) and whatever other fees and be done with it? I like the car but I can’t afford to buy it outright or even Finance the amount.

 

[DozerDan82]

You leased, you lost $- turn it in and never lease again. Unless you want to perpetually lease you will always loose when it is time to turn it in.

 

[jeeptj19992001]

i turned my lease xterra in for buying an frontier, they forgave all the stuff because i bought a vehicle.

 

[SLOWPOKE693]

You leased, you lost $- turn it in and never lease again. Unless you want to perpetually lease you will always loose when it is time to turn it in.

My father did this for years with 3/4 ton trucks that he used to pull the camper & boat they own. When he retired last year they turned in the leased 3/4 ton truck and ended up buying some kind of turd Nissan mini pickup that can neither pull the boat nor camper because that's all they can afford now.

I told him from the start that it was a fucking horrible idea. You would have thought my advise would be taken into consideration seeing as how I was a dealer tech for 1/2 my life and had a good understanding of the "scam". But nope, he loved that he got to drive the latest greatest every three years and that he never had maintenance or repair bills. In the end he spent an ass load of money on vehicle payments and has zero to show for it.

 

[Brad]

Not my smartest moment. Didn’t know much about leasing at the time. Oh well.

 

[Aggie06]

You leased, you lost $- turn it in and never lease again. Unless you want to perpetually lease you will always loose when it is time to turn it in.

It’s shocking how many people do this.

 

[Crankylove]

In laws are trying to get out of their lease by purchasing a vehicle. Lease is up end of this month, they owe $4,500ish for overage on the miles, which the dealer will forgive if they buy a vehicle, or sign another lease. They went down to the lot, didn’t see anything they liked, so looks like they are gonna have to shit out $4,500, be out a vehicle, and have nothing to show for the last 3 years of car payments.

 

[Action Fab]

Had a nice conversation with one of the mothers of a girl we have feeding. It's absolutely insane how bad people are with money. Her husband just got the letter yesterday informing him his 8 week furlough is now over and he will not be coming back.

Apparently, car payment are the only way anyone can afford a car?

I feel pretty bad for them. Two kids in college, twocar payments she still works, he was bread winner. No way they can afford to keep the house and the rest of their debt if things like groceries, taxes and insurance keep going up. They're talking about selling their house and moving in with her dad to take care of him. I couldn't imagine being in my late 50's and have nothing but IOU's to show for a life of work.

 

[TRINDU]

First time we’ve leased a car. Have a 2017 Highlander. It’s up in July. I seem to remember the sales guy telling us we could go to any other dealer and see if they wanted to buy it, not telling them it’s a lease(I would think they could look up the VIN.) is this true or should I just turn it in and pay the overage mile amount(gonna be close if not over) and whatever other fees and be done with it? I like the car but I can’t afford to buy it outright or even Finance the amount.

I dont get how you can afford lease payments, but not a note on a used car. We'll look past that for now.

Everything is laid out on your paperwork. Most of the time its however many cents per mile for overage. And typically $1000 grace to cover normal wear and tear such as dings.

The whole buy it back thing can be done anywhere. At signing you were given an amount (residual value) you can buy the car for. That value has fuck all to do with current vehicle condition. If that figure is below trade/private party value you've magically created equity in a lease.

If the residual is higher than what you can unload it for, youve rivaled jmnumbersjeepdadwoods guy in vehicle finance decisions.

 

[SLOWPOKE693]

Had a nice conversation with one of the mothers of a girl we have feeding. It's absolutely insane how bad people are with money. Her husband just got the letter yesterday informing him his 8 week furlough is now over and he will not be coming back.

Apparently, car payment are the only way anyone can afford a car?

I feel pretty bad for them. Two kids in college, twocar payments she still works, he was bread winner. No way they can afford to keep the house and the rest of their debt if things like groceries, taxes and insurance keep going up. They're talking about selling their house and moving in with her dad to take care of him. I couldn't imagine being in my late 50's and have nothing but IOU's to show for a life of work.

I bet horse boarding is one of the first unnessasary expenses they get rid of.....

 

[gunracer1]

i love how people say leases save them money! im like a right, someone buys a car and rents it to you and you save money? hell i still have friends that go to the dealership and tell them what they want for a payment. sometimes you just can't fix stupid.

 

[Johann]

I bet horse boarding is one of the first unnessasary expenses they get rid of.....

Only if they get rid of the horse too. People usually board because they do not have the property or facilities to take care of the horse at their own place. Since they are bad with money they will probably keep both.

 

[Poriggity]

Turn it in, go buy a used vehicle that you can afford once you pay overages and damages on the lease. Leasing is strictly a way for people to drive vehicles they cant REALLY afford.

 

[Action Fab]

I bet horse boarding is one of the first unnessasary expenses they get rid of.....

They can't afford to own a horse. Her daughter just works for us.

Our boarders all seem to be benefiting from the current situation.

 

[Action Fab]

Only if they get rid of the horse too. People usually board because they do not have the property or facilities to take care of the horse at their own place. Since they are bad with money they will probably keep both.

We aren't like most boarding facilities. Boarders are required to be in our training program and compete. Our board includes 2 rides by my wife and two lessons with the student every week. Plus they have their show schedule. So it's quite a bit different from most hobbyists situations.

Anyway. Enough with the derailment. I was more just sharing my conversation to say people are crazy with their payment plans and living above their means.

 

[Poriggity]

We aren't like most boarding facilities. Boarders are required to be in our training program and compete. Our board includes 2 rides by my wife and two lessons with the student every week. Plus they have their show schedule. So it's quite a bit different from most hobbyists situations.

Anyway. Enough with the derailment. I was more just sharing my conversation to say people are crazy with their payment plans and living above their means.

Most of America lives above their means. Thankfully I'm in the small percentage that doesnt. We have no car payments, have a mortgage that is $700 a month less than our last house, and only have a payment on our $7000 zero turn mower because its 0% interest, and a payment on our travel trailer that is 2% interest. We have enough in savings and stocks to survive probably 2 years if I lost my job
. We could pay off the mower and trailer but our money makes more money sitting than the interest costs us. We also pay for everything on credit cards and pay them off every month. It amazes me how many people walk into a car dealership and say I can afford $Xxx per month, how can you get me in this car?

 

[FJC11]

Turn it in, go buy a used vehicle that you can afford once you pay overages and damages on the lease. Leasing is strictly a way for people to drive vehicles they cant REALLY afford.

Spot on.

 

[Gtrplyr78]

OP,

Consider this a life lesson and learn from it.
Dream is being sold to naive all of the time, debtor is a slave to the creditor (let that sink in).

As for our household all of the cars (3) and my motorcycle are paid for, we have a small mortgage which amounts to a cost of a moderate one bedroom apartment in my area. And we are ok with that, as it allows us to do home renovations, travel and such out of pocket. Just like Poriggity, credit cards are paid off in full when used.

 

[SanDiegoCJ]

It’s shocking how many people do this.

They do it because the monthly payments are lower than the payments on a purchase.
They only look at the monthly cost, nothing else.

 

[Brad]

Live and learn. Turning it in when it’s time and wifey is going to driving the truck and I’m getting my EB road ready for my commute(14 miles round trip)