end of lease

[dredhaus]

The end of my lease is June 05. I have a 2001 SR5 and I am thinking about getting the 2005 Sport edition. I do love my 2001 A LOT but sometimes I need new toys! So my question is: I am about 20,000 miles over on mileage. Someone told me that if I buy another toyota the dealer might overlook the mileage. Does anyone know if this is true? Obviously I am screwed from the start with the amount I owe in mileage but it seems like a hassle to sell it on my own.

 

[peter78]

I don't know about Toyota forgetting about the mileage. I mean it could be 40,000 miles instead of 20,000 right. I would think they would work with you when you deal, but what they will really do is put the cost in your new loan or lease and not give you as good a deal.

I would look at the numbers. Such as, how much can you buy the 2001 4Runner off the loan and how much are they going to charge for your miles. Lets say it is 30 cents a mile, or 6,000 dollars. Then you can buy the car for 17,000 dollars. (These are just guesses???) Then I would figure what your car is worth, then figure out if the hassle is worth the difference in cost. I know leases can be good, but I am personally afraid of those suckers. Good luck.

 

[EDGE]

Who's the lease company, all depends on them ask them if they will cut you a break on the mileage if you lease another vehicle through them.

Maybe you should buy the next 1 so when your 20k over it will not matter

 

[GraphicGirl]

These are basically your options:

1. Turn the car back in and walk away. You'd have to pay for the extra mileage.

2. Turn the car back and get another vehicle. They will roll what you owe in mileage into your new vehicle contract (whether lease or purchase) Usually, they can absorb the excess mileage cost by bringing down the cost of the vehicle to even it out. Though it looks like they "forgave the mileage", they just do some funny math to make it seem that way.

3. Buy the car you current have. The residual value is already established and should be on your contract. Look up the blue book to see if this value is lower that the blue book value.

Good luck!

 

[dredhaus]

Next time I will definitely BUY it I had just graduated from college and couldn't "afford" a finance so leasing was my only option. I love my SR5 so it won't kill me at all to have to keep it!
What do you guys think about the price... $16,000 end of lease purchase option. It will be 4 years old and have roughly 75,000-80,000 miles on it and I took excellent care of it.. I'll look into kelley blue book..

 

[bulldog-yota]

What is the expected mileage you will have on Jun 05? How many will it be over then? ALso your lease should give you a penalty per mile figure on it.

SO this will quickly give you an idea whatthe enalty is. SO lets say in total you will be 30000 miles over what it should be, they charge you 10c a mile over. That is $3000.

So if you buy it out of the lease you need to keep this figure in mind. Basically look at it as a "discount on your vechile" when buying it out. If you try to end the lease or trade it in they will penalize you some way or another with that amount.

How much will it cost you to buy it out of lease now? I bought my BMW out of it's lease early and sold it. I was lucky as I was able to make some $$ on the transaction, however different rules apply as it was commonly availible at the time. You dont have that advantage.

I say just buy it out of lease now, if you can't afford it now. You wont be able to afford a new Runner. Buy it out now and pay off some, and then trade it in after a year or so. It allows you to get out of the mileage fee and then you can trade it in/sell it lsightly later and have some capitol on it. Make sure you pay a bit extra on the buy out monthly payments. If you take god care of it, you will loose less for the miles on it.

 

[peter78]

SO this will quickly give you an idea whatthe enalty is. SO lets say in total you will be 30000 miles over what it should be, they charge you 10c a mile over. That is $3000.

I think that is a little low, I have seen leases where you can buy miles up front for 10 to 15 cents a miles. When you pay at the end, it will be much higher.


dredhaus should figure out how much penalty he will get and then figure out what is best. If the penalty is say $6,000, that means he is buying the SUV for $10,000 plus the penalty. If that is the case, buying the used vehicle is the way to go and then sell it or keep it for awhile.

 

[dredhaus]

$0.15/mile. Let's say I will be 30,000 over. I think the best bet is just to buy it at the end with cash and then either sell it myself or keep it for the life of it... (which of course will be FOREVER!!)
See what happened was I was young and wanted 4R forever so when I went to look at it I ended up driving it home.. without a care in the world as to what would happen in 4 years. I hate haggling and I know it can get really confusing once I go in there...
Oh and by the way guys I am not a he!!!!!

 

[peter78]

$0.15/mile. Let's say I will be 30,000 over. I think the best bet is just to buy it at the end with cash and then either sell it myself or keep it for the life of it... (which of course will be FOREVER!!)
See what happened was I was young and wanted 4R forever so when I went to look at it I ended up driving it home.. without a care in the world as to what would happen in 4 years. I hate haggling and I know it can get really confusing once I go in there...
Oh and by the way guys I am not a he!!!!!

Sorry about using "he", I generally use "he" without thinking. We do have a few female members, so welcome aboard.

I think 15 cents a mile is pretty good for a penalty. As far as $16,000 for the vehicle being good, it is hard to say, does it have sunroof, 4WD etc. Of course when you put in $4,500 in penalty it is a no brainer. I would be tempted to buy it and keep it for awhile and get into a good finacial situation, be it 1 month or 1 year and sell it for a new one. By the way I plan on keeping my 2001 forever, but I think my 13 year old Son has other plans as he has told me repeatedly that he wants it when he gets a license. :awais:

 

[bulldog-yota]

With the current low interest rates, you might want to look at buying it out right now and puttin git on a lower rate. Just check that there is no early termination fee for the lease.

I'm willing to bet you that you will probably get it at half the interest rate you got on the lease 4 years ago. Also check into whether you will pay sales tax when you buy it out of the lease.

I say buy it now, get a far lower interest rate on a loan. Keep it a year or so and see what you want to do then. But before you do anything again make sure you will get more for your 4R than you owe.