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Buying out a car lease

Angler

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I leased a car for my Son when he was in HS. He is headed to the Air Force now, but he wants to keep the car. The car is worth more than the buyout price (including the extra miles), but it has 10k miles over the lease. I don't have to pay for the extra miles if I buy out the lease, correct? I haven't leased a car before. Any thoughts?
 

Universal Elements

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I leased a car for my Son when he was in HS. He is headed to the Air Force now, but he wants to keep the car. The car is worth more than the buyout price (including the extra miles), but it has 10k miles over the lease. I don't have to pay for the extra miles if I buy out the lease, correct? I haven't leased a car before. Any thoughts?
Yes, if you purchase it, you don’t have to pay for the extra miles, If you can, buy the car in cash. If you turn the car in On the lease, they will get you for the 10k miles and wear and tear on the car.
 

CobraDave

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Carmax will buy those if you decided not to keep it. You could trade it in on another also. You have options.


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Cuse Alum

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Buy it out and sell it for more then the buyout. Most leases right now are worth more then the buyout.


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nameisbond

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No penalties if you buy it out. I always lease a truck or car for tax write offs. The bonus is since I'm in Canada, selling into the USA market usually nets me more then the buy out. Its almost like driving a vehicle for free!
 

parker guy

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Congratulations to your son, what is going into the air force for ? My son is a Junior in HS and is debating it. Any inFo you could provide would be helpful.
 

FreeBird236

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I know the market is a little upside down right now, but you may still be able to negotiate a better buy out price.
 

LuauLounge

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One thing to watch is the sales tax. You will pay sales tax on the residual price. Hyundai Finance charged sales tax and then the State of California tried again. The state backed down.
 

throttle

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I used to lease vehicles years ago. It never seemed to balance out for me to do the buy out after paying for the lease. It seemed easy, convenient and affordable however, an accountant once told me that I was buying the same vehicle twice (lease taxes and interest fees).
The market is definitely different today. I would look at selling the vehicle to get your money out of it.
Doing the buy out could be considered affordable and sounds like a convincing option to keep a vehicle that you know the history on vs another one in used market with same value. And obviously a new one will come with a steep price all over again. It’s only money and sometimes we just do what we feel is right for us and sometimes just get stuck paying more.

Good luck to your son in his new adventure!


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badgas

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You don't have to pay those miles if you buy it out.

Just make sure you get and accurate value of the car with the extra 10K miles. Take your buyout price plus tax and compare to your walk away with the milage hit.

For kicks say the car is worth $14,000.00 and your buyout is $12,000.00 + $1,000 sales tax so you are paying $13,000.00 OTD

That $13,000 could be great deal but paying a $1,500 milage hit and walking away might also be wise if you find a nice $8,000 or $9,000 to buy.

So ask yourself would you buy the car if you walked on the lot and it was setting there ? Or would you look at a different car ? I always like unwind the situation and see if I there is better option.

Congrats on your Son, Thanks for serving
 
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