Somebody tell me what to do!

Yes, it's me again...and I am a bit confused.
Let me explain.
I've crunched some numbers and something still does NOT make sense to me.
I have been leasing (yes, leasing) a 2000 Maroon VX since the summer of 2001.
My payments are $329 a month thru PNC bank.
I filed for bankruptcy but I kept paying the car payment because I did not wish to include the VX in my bankruptcy, (Now that's dedication)
I owe about $7896 til my lease runs out in July '06.
Then PNC tells me if I wish to purchase the VX I owe an additional $7,000 something.
I checked the Blue book value of my VX and it's about $9105 @ roughly 47,000 miles in Fair condition. Is that what the residual value of the car is? I checked my lease agreement and the residual is listed at $9287.
My question is this...how can I owe an additional $7000 if the VX is only worth about $9000 as a potential trade-in? Maybe PNC gave me a wrong estimate.

So far I paid about $11,800 since I drove it off the lot at 20,000 miles.
I hope I was clear explaining this.
What do ya think VXers, am I better off doing a lease-transfer and saying goodbye or should I suck it up til the end of my lease and then walk away?
One last question: If I go to a dealership to buy a new or used car, can the dealer get me out of the lease? Do I pay penalty fees or does the dealer absorb these costs? I heard that they will add whatever I owe on the car to the new car, thus increasing my monthly car payment anyway.

(THUNK!)
Head hitting desk.

Can you tell I've never leased before?

Funny thing yesterday, I was washing my car when some guy started talking to me about the VX. He had a trooper which he has leased. When all was said and done, at the end of his lease, he owed more thousands more than the car was worth. He did his research and he went to the loan company. He told then that the trade in value was less than the car was worth. He then told then that if they took control over the car that they would to have to sell it at an auction for X amount (almost 4000.00 less than what he would have to pay to buy it), so he offered them almost 3000.00 less than what he originaly owed the loan company. The loan company knew he was right and drop the hugh amount of his lease/buy option and sold it to him for 3000.00 less than what his contract said.

Or something like that.

I read something simillar once, this guy had a trooper and was offered a buy out price at the end of the lease, way above the book value, this was a few years ago when troopers had a bum rap for rollovers, he said no, the lease Co called him 2 weeks later and offered it $2,000 less, he offered something like $4,000 less and got it.

Definitely worth a call to the lease Co and make 'em an offer, I'd even call them now and make a buy out offer, ...everythings negotiable.

The important question here is how are you going to finance the purchase? If you filed bankruptcy recently, you will have a very difficult time finding a source to finance the VX for you. You may be able to go to a lot specializing in 2nd chance financing, but I don't think they can refi the VX for you.

... The bank knows it will loose if you give them back the car at lease end, so gather your facts and try negotiating a better deal. Helpful hint, do not let on that you are crazy about the vehicle, keep it strictly business, and if the bank refuses to budge on price let the bank eat the difference then keep your eyes peeled for the next VX to change hands :luck:

The way my lease works, and I believe most leases, is the end value that you will owe is set at the time the vehicle is leased based on market research for depreciation of your particular vehicle. The reason it's way off in this case is research was not available on this vehicle because of it not having a lengthy history. Therefore they under estimated the decrease in value and you owe more than it's worth. This is the BAD part of a lease. If you are going to lease a vehicle, make sure you research the depreciation of the vehicle and make sure it has a pretty good history for holding it's value. Lease companies have been around long enough they usually get pretty close on this now days. They still keep it so they will make a little money in the end also though. Make an offer and if they don't take it wal-away, cause they are going to lose money on this thing also because of the sharp decrease in value, odds are they come back quite a bit lower than what they are at now. They may even take it for the lease buy out if you have the $6000 or so. If you decide to trade it, find a vehicle that has HIGH dealer incentives. Now is a good time to do so as the new model years are coming out soon and they want to reduce last years numbers on their lots. I know Ford currently has HIGH dealer incentives. If you do this the trading dealer will pay all yur costs for the lease buy out, and yes your monthly payment will be larger than if you jsut walked on the lot and bought the same vehicle, but the dealer incentives will help the payment a bit too. Good luck!!!!

Thanks everyone. I do love the VX, but there's no way I will let a car strap me from doing other things in life. I feel like I'm married to it.
Anyway, I may look into the website listed below. There's also Swapalease.com
I will print out a copy of everyone's replies and consider my options.
There's so many new models coming out. I love that new Nissan Murano.
My VX has new tires, new rear brakes and new car seat covers so maybe that will add a little incentive.








http://www.takemypayments.com/http://www.takemypayments.com/

All good things must come to an end.

Well, it appears that this will be my last month driving the Vx.
I called my bank and did some more number crunching.
I decided doing a lease-transfer is probably not such a good idea due to the fact that would leave me with nothing to trade in on a new car.
Basically I was told that the dealership will buy my VX from the bank and then whatever the difference is I will have added to my new car under a new payment plan. The trick is to look for some really good deals and incentives out there to make up the lost money.

I want to thank everyone on this board and site. You have quite a family here, I only wish I could have participated more in the events held out west. Northeast living sucks!

I had a blast driving a VX. I still feel guilty getting rid of it, but with the price of gas skyrocketing and me having a crummy job, I just can't do it anymore.


Well, they say change is good.

See ya!

E.

E:
Sorry to see you go. You may be back in the saddle some day - maybe some day down the road you will find another VX.
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You did just recently miss an 'event' in the Northeast - a meet at a show in Kuhanaville ....... is that a real place ? Not an off road event - but a get together.
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As or Northeast living - don't give up on it. I like it. It is especially attractive if you are a motorcycle, snowmobile, bicycle rider .... hiker, .......etc. etc. Lots of mountains, 'tight' wooded areas, hilly terrain, etc. which is both challenging and pleasing to the eye.
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If you have seat covers (for a VX or that fit the VX seats well), I might be interested in them. Let me know.
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t2p