Slickdeals Saves U! Congratulations to the Spring 2018 winners! Apply for our $2,500 Fall scholarships today Learn More
Forum Thread

Offered to end car lease early -- take the offer or ride out to the end?

SnowBob 133 45 December 26, 2016 at 02:21 PM in Autos (2)
Deal
Score
+1
2,897 Views

Thread Details

+1 Deal Score
2,897 Views
Hello all, looking for some advice on a car lease. I leased my first car at the end of August 2014 on a 36 month lease, no money down. The dealer that I purchased from reached out about trading in my lease early.

My question, leasing vs purchasing aside (I like the convince of lease terms and that I get a new car after three years), should I ignore the temptation of trading in early or depending on the terms this could be a good deal? If so, what should I look for?

I'm at 20000K miles right now with 8 months left in the lease so I imagine I will finish the lease terms at 25000/36000K. The car is very well taken care of and in nearly perfect condition (very clean, no body damage apart from a couple door dings). Im paying $380/month in Texas on a 2014 Passat Wolfsberg Edition. My dad cosigned on the car at the time but we both have good credit (high 700's). When trading in, I wouldn't have any money to put as a new down payment.

Advice appreciated, would consider selling the car myself at the end of the lease term if there is an easy way to do it without too much hassle.

Thanks a lot

30 Comments

1 2 3

Sign up for a Slickdeals account to remove this ad.

This comment has been rated as unhelpful by Slickdeals users
Joined Jan 2004
L10: Grand Master
15,656 Posts
1,202 Reputation
#2
Wow, that is a hell of a lot of miles!!

Why do you think you will be able to sell the car yourself at the end of the lease term? You don't have down payment $ for a different car yet you seem to have some & to buy the lease car to sell at the end of the lease? You do know that when the lease is up the car isn't yours for free right??
Reply Helpful Comment? 1 1
This comment has been rated as unhelpful by Slickdeals users
Joined Jun 2005
Let Sleeping Dogs Lie
6,213 Posts
2,455 Reputation
#3
You are looking at it wrong you would buy your current car at whatever payout rate is decided then trade the car in. If the car is worth less than the payoff you are in essence upside down. You can get an auto loan for 100% but your payments can be pretty high so you could be stuck doing a lease, just for the lower payout.
Reply Helpful Comment? 0 0
This comment has been rated as unhelpful by Slickdeals users
#4
I'll be in a similar situation as you in a few months. I'm not sure what to do yet either, but if you do go to the table to make a deal for a new lease try and negotiate to get rid of the "disposition fee" you have on your current lease.
Reply Helpful Comment? 0 0
i hate every ape i see.. from chimpan-A to chimpan-Z. no you'll never make a monkey out of me. oh my god i was wrong..it was earth, all along.
This comment has been rated as unhelpful by Slickdeals users
Joined Dec 2012
L3: Novice
133 Posts
45 Reputation
Original Poster
#5
Quote from TR0N View Post :
I'll be in a similar situation as you in a few months. I'm not sure what to do yet either, but if you do go to the table to make a deal for a new lease try and negotiate to get rid of the "disposition fee" you have on your current lease.
From what the sales people told is that the disposition fee is usually waived when staying with the same auto brand. I guess its a fee in there to keep you buying from the same company.
Reply Helpful Comment? 0 0
This comment has been rated as unhelpful by Slickdeals users
Joined Dec 2012
L3: Novice
133 Posts
45 Reputation
Original Poster
#6
Quote from komondor View Post :
You are looking at it wrong you would buy your current car at whatever payout rate is decided then trade the car in. If the car is worth less than the payoff you are in essence upside down. You can get an auto loan for 100% but your payments can be pretty high so you could be stuck doing a lease, just for the lower payout.
This would be the case if the car is valued lower than the residual as far as I understand. This is part of my question. How do I figure out what would be the value besides KBB and if there are services to transfer the lease buyout option to someone else. If I trade in to the dealer they will give me the dealer prices on the car which is always lower than private sale.
Reply Helpful Comment? 0 0
This comment has been rated as unhelpful by Slickdeals users
#7
Quote from SnowBob View Post :
This would be the case if the car is valued lower than the residual as far as I understand. This is part of my question. How do I figure out what would be the value besides KBB and if there are services to transfer the lease buyout option to someone else. If I trade in to the dealer they will give me the dealer prices on the car which is always lower than private sale.
So you are going to buy back the car at the end of the lease and then turn around and sell it? It is unlikely that the buy back price will be significantly lower than KBB/Edmunds/Carmax
Reply Helpful Comment? 0 0
This comment has been rated as unhelpful by Slickdeals users
Joined Dec 2012
L3: Novice
133 Posts
45 Reputation
Original Poster
#8
Quote from flatlight View Post :
So you are going to buy back the car at the end of the lease and then turn around and sell it? It is unlikely that the buy back price will be significantly lower than KBB/Edmunds/Carmax
The I imagine it would work is that I arranged for someone else to take the buyout option in my lease and they purchase the car through the option and keep it. Since I have the first opportunity to buyout the car as the lessee I thought it would be straight forward to do through a lease purchasing website or something like that.
Reply Helpful Comment? 0 0

Sign up for a Slickdeals account to remove this ad.

This comment has been rated as unhelpful by Slickdeals users
#9
when you 'Buy' the car at the end of the lease you will end up paying sales tax . so your 'cost' will go up by at least that much. Consider that.
Reply Helpful Comment? 0 0
This comment has been rated as unhelpful by Slickdeals users
Joined Jan 2004
L10: Grand Master
15,656 Posts
1,202 Reputation
#10
Quote from SnowBob View Post :
The I imagine it would work is that I arranged for someone else to take the buyout option in my lease and they purchase the car through the option and keep it. Since I have the first opportunity to buyout the car as the lessee I thought it would be straight forward to do through a lease purchasing website or something like that.
Why in the hell would anyone buyout your lease on a lease swap website.

In a nutshell the buyout price of your lease is going to be more than someone would be able to get the car for if they bought it on their own. In other words, why would I pay $15k to buy your car via the buyout option vs $12k if I were to just go buy it on my own...
Reply Helpful Comment? 0 0
This comment has been rated as unhelpful by Slickdeals users
#11
Buyout price is generally inflated to lower lease payment. So, no one will pay buyout price. You can compare your car bluebook value to buyout price, and add tax.
Reply Helpful Comment? 0 0
This comment has been rated as unhelpful by Slickdeals users
#12
Quote from LivninSC View Post :
Why in the hell would anyone buyout your lease on a lease swap website.

In a nutshell the buyout price of your lease is going to be more than someone would be able to get the car for if they bought it on their own. In other words, why would I pay $15k to buy your car via the buyout option vs $12k if I were to just go buy it on my own...
When I was in the market for a Honda Odyssey last year I would have been interested in buying out someone's lease. When I was shopping I could either buy a brand new Odyssey for $32000-33000, or lease one for 36 months with a buyout price of something like $20,000 at the end of the lease (I can't remember what the cost per month was, but the overall 36 month lease + $20,000 buyout was slightly more than just buying it outright). The cheapest I could find a comparable used 3-year old Odyssey with less than 36000 miles was in the $24000-25000 range.

So I would have definitely been interested in finishing out 8 months of someone else's lease and buying the vehicle at the end. I searched lease takeover sites for awhile but never found anyone nearby wanting to get rid of one.
Reply Helpful Comment? 1 0
Last edited by billyjoejimbob January 3, 2017 at 09:58 AM.
This comment has been rated as unhelpful by Slickdeals users
Joined Dec 2012
L3: Novice
133 Posts
45 Reputation
Original Poster
#13
Quote from billyjoejimbob View Post :
When I was in the market for a Honda Odyssey last year I would have been interested in buying out someone's lease. When I was shopping I could either buy a brand new Odyssey for $32000-33000, or lease one for 36 months with a buyout price of something like $20,000 at the end of the lease (I can't remember what the cost per month was, but the overall 36 month lease + $20,000 buyout was slightly more than just buying it outright). The cheapest I could find a comparable used 3-year old Odyssey with less than 36000 miles was in the $24000-25000 range.

So I would have definitely been interested in finishing out 8 months of someone else's lease and buying the vehicle at the end. I searched lease takeover sites for awhile but never found anyone nearby wanting to get rid of one.
This is the kinda scenario I had in mind that could potentially be to my benefit compared to simply returning the lease as it is. Some of the earlier comments come off as from people without any lease experience.

The residual on my car is 12,9000. KBB in my zip code values my car at 14,100 retail or 11,840 private party. But mind you, at this point I still have $3040 in payment remaining until the end of the lease term so selling it myself right now would no get anyone a deal.

I am wondering if anyone has experience with the lease trading sites and how the transaction works. Or if anyone has turned in a car early to a dealer and whether that is ever a good deal and what to look for in the offer.
Reply Helpful Comment? 0 0
This comment has been rated as unhelpful by Slickdeals users
#14
Quote from SnowBob View Post :
I am wondering if anyone has experience with the lease trading sites and how the transaction works. Or if anyone has turned in a car early to a dealer and whether that is ever a good deal and what to look for in the offer.
I can't help you with that, but maybe someone else can. Whether it's a good deal or not though, I assume if you can provide specific numbers you'll probably get opinions on the pros and cons and whether it's a decent deal or not.
Reply Helpful Comment? 0 0
This comment has been rated as unhelpful by Slickdeals users
#15
I would just ride it to the end of the lease and return the car... look up depreciation on VW Passats .. they are worth almost nothing after 5-6 years. If it was a Toyota or Honda I would consider it, but all VW's depreciate like a rock
Reply Helpful Comment? 0 0
Page 1 of 3
1 2 3
Join the Conversation
Add a Comment
 
Copyright 1999 - 2017. Slickdeals, LLC. All Rights Reserved. Copyright / Infringement Policy  •  Privacy Policy  •  Terms of Service  •  Acceptable Use Policy (Rules)  •  Interest-Based Ads
Link Copied to Clipboard