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I'm leasing my VX right now and I have about 3 years left. I have a full warranty on it but $329 a month is killing me. I'm getting the window regulator fixed next week, but I'm really thinking about getting rid of it by next summer. I thought about Swapalease.com, but it would cost me about $400 to transfer the lease. Do most car dealerships help you get out of a lease if you buy a new or used car from them?
HELP!:(
I think it depends on the type of lease you have. If it is a type of lease-to-buy, where at the end of the lease you have the option of purchasing the vehicle, turning it in and leasing/buying another with no penalties, or selling it, then you shouldn't have a problem trading it in to any dealer. They will just purchase the car from the finance company, and add take the amount they had to pay over the amount they would give you for the auto and roll it into your next purchase.
If you paid anywhere near full price for the VX then you will almost certainly be upside down on your lease and you will find that it is almost impossible to get reduced payments unless spread things out over a very long time period. The VX has had some serioues depreceation. On the other hand, if you bought in at the ~$20K closeout deals a while back, you'll probably be ok.
Very hard to get out of a lease unless you put a lot down in the begining or have a lot to get out of it. To find out, go to your nearest dealer (which ever other vehicle you want to get) and find out what they can do for you.
You think $329 is bad, i pay about $200 more a month on a lease. Long story, but i bought 2000 Jeep and traded in 7 months later for the VX and became waaaaaaaaaaay upside down. I need some serious help.
Can you give some details on your lease? What is the residual value? How many miles are allowed? How many miles do you currently have on the odometer?
At one point, we had to break a lease with Isuzu and we ended up getting a bill for $10,000 - so I would strongly suggest you find alternate means.
On the flip side, I might be interested in assuming your lease - I pay $555 a month right now for mine and my payment will be ending in November. I love the foxfire red...
Brent
:freek:Quote:
Originally posted by tiggergreen
I pay $555 a month right now for mine
Brent
Breaking a lease (returning it early) will always involve some hefty fees, check your contract for details. You can also break a lease by buying the vehicle from the leasing company, which I've dealt with, but beware that you're then responsibly for the tax!
Sometimes the dealer will allow you to turn it in early but they might forget to tell you that it will look like a voluntary surrender on your credit. So, check it out first. Spending the $400 on the leaseswap site would probably be the best thing...
I leased a vehicle once and it was a very good deal for me, even when I traded it in. I'm sure there's different kinds of leases, but here's how the whole thing went down.
I leased a gorgeous, flame red, '97 Dodge Ram in 9/96, that I still miss today. It was a $25K truck and with about $6K in cash and trade, the payment was only $279 a month for 48 months. I knew I was not building up any equity in the vehicle, so to ensure a downpayment for my next vehicle, I invested over $100 every month. That way I always had a very low payment, but I could vary the amount invested each month based on various unexpected factors. I took fantastic care of that truck and after 42 months and 60K miles, it still looked new.
In 3/00 I wanted the '99 Astral VX at my local dealer. I checked with the lease company to get my lease payoff figure on the Ram of $13.2K. The trade-in value of the truck was $13.8K, so I was happy about that. My savings grew to over $6K, so that VX was gonna be mine for sure. No lease this time. My truck looked so nice, they gave me $16K for it! Yes, I traded a leased vehicle and came out with almost $3K!
I payed $28K for the VX. With $9K in cash and trade, and 1.9% Isuzu financing of just under $20K for 60 months, my payment is only $372 a month. I have 1.5 years left and only owe $7K on my VX. I could have easily gotten out of my VX at any time during the loan.
The moral of the story is, you can sell or trade a leased vehicle at any time and come out smellin' like a rose. But you must put down as much as you can in cash and trade so you can get out quick if you have to. That goes for financing to buy also. Ya never know what life is gonna throw your way. Always think way ahead into your next vehicle when buying or leasing. Always take great care of your vehicle. It makes a huge $$$ difference at trade-in time.
If you can't afford the loan payment and think a no-money-down lease is the way to go, think again. It's a very, very risky deal. And never let the lease run out and give the vehicle back to the lease company. They will go over it and send you a huge bill for every little thing that's wrong.
Mark
The purpose of a lease is to not put ANY money down. If you are putting money down - you need to buy! I used to be in the rental and leasing business - all those things they tell you about how you should lease - all BS......UNLESS the car has a residual that is not realistic. This will happen SOMETIMES (but VERY infrequently) when the mfg wants to move the vehicle (Mitsubisihi did this with some of its cars), or it is a new and hot vehicle that the NADA book thinks is going to be a hot resell number (some new and hot vehicles fall into this category - but fewer and fewer these days). Basically, the rule of thumb is - if you aren't a car person, have plenty of money, and just want to drive a new car every 3 years - lease. If you somewhat know what you are doing and can sell the vehicle yourself - BUY. I'm assuming that ALL VX owners fall in the later category - NEVER lease a car unless it is a mfg subsidized deal where the monthly rate is too good to be true!! It happens VERY infrequently anymore. You build ZERO equity, and most often (as in the case of the guy who posted this) NEGATIVE equity. There is NOTHING worse than paying for something you don't have!! The dealers and finance companies have made a new business model out of financing negative equity - DON'T fall into this trap!!!!!!
Yes, $555 a month seems high - but it is a four-year 0% loan, so I think it was the smart thing to do. The payment has been difficult at times, but right now I am paying $1100 a month to pay it off in November... I am looking forward to having a vehicle without a payment...
I have to heartily endorse what everyone else is saying about buying new cars. Never finance negative equity - I did on several occasions and it hurt my pocketbook something fierce...
Brent
My personal opinion - don't lease. There are only two reasons to lease:
1) You plan to sell inside of 2-3 years anyway, so this is a convenient way to get rid of the vehicle in a few years instead of going through the hassle of selling the vehicle.
Problem with that: The mfr's aren't stupid. They know what the vehicle will sell for, and you almost always get screwed on residual value. They charge you lots of fees for this "convenience" as well, and the interest rates are always artifically high compared to purcashes. PLUS - you still pay a portion of the sales tax to the state/county. Plus the fact that you are paying all that money and really don't own a thing. Might as well rent a car for a year, might be cheaper.
2) The payments are cheaper, but you still get a brand new vehicle.
Problem with that: If you can't afford something, wait until you can. You're left with nothing but an empty wallet at the end of a lease. Renting anything (electronics, cars, homes) is not an investment, it's throwing money out because you can't afford to buy it.
There is another reason to lease - it is a total business write-off. You can only write-off the depreciation of a vehicle if you buy. Plus, you have to keep track of miles and be able to prove business use.
If you lease, the entire lease payment is a write-off. I have owned my own business since I was out of college and I have used this write-off to "hide" some income...
Brent
www.xanderstudios.com
Many businesses do lease, but I was directing my comments towards individuals. BTW: the lease payment essentially is depreciation of the vehicle, and I believe other fees such as the taxes are also deductible on purchases, so it may not be much of a difference, after you consider that you could have saved money by buying a 1-2 year old vehicle and saving 10-30% off the top ;)Quote:
Originally posted by tiggergreen
There is another reason to lease - it is a total business write-off. You can only write-off the depreciation of a vehicle if you buy. Plus, you have to keep track of miles and be able to prove business use.
Not sure if you've been introduced to this site's owner, a policeman? ;) ;eekb;Quote:
If you lease, the entire lease payment is a write-off. I have owned my own business since I was out of college and I have used this write-off to "hide" some income...
...If your lease has a backout clause chances are good it will cost you. For me, leasing was a once in a lifetime experience. Although, financially, I came out ahead, I did not like the idea of monitoring my mileage, and the overall feeling of driving someone else vehicle. The costs to leave early were prohibitive.