Hi everyone, I had a successful experience with my previous lease, so I decided to take out a new lease at the local NYC Hyundai dealership last year (2024). Unfortunately, I drove significantly more than I had planned, and I’ve already exceeded my 30k mileage limit 17 months before the lease ends. When I visited the dealership, they suggested returning the car (they’ll buy out the lease) and getting a new one. However, I’m concerned about the possibility of being scammed if I sell the car back and obtain a new lease. Could you please advise me on my options? Additionally, I’d like to know about any potential costs that I should be aware of in the near future.
$100 says they’re not doing you any favors. Any negative equity or remaining payments will be rolled into the new car whether it’s a lease or a purchase.
Do you like the car enough to consider a buyout?
What’s the per-mile overage rate? Is it $0.20? $0.25?
If your driving trend continues, this may not make sense. If you can get your overage to be only like 20k miles by lease end, it won’t be so bad. Paying $5,000 over miles (I don’t know if this penalty is subject to sales tax) is much cheaper than the negative equity you’re probably finding yourself in now if you try to terminate the lease early.
This question can’t be answered without numbers
What’s the equity situation on the car?
What’s the mileage penalty in the lease agreement?
Ok I just did some digging… so I have 15 payments left officially @ $390/month.
The residual value of the car is $19,300.
The capitalized cost when I signed the contract was $32,325, and the adjusted cap. cost was $29,450
I will be considering a buyout. How should I shop for financing options?
Do you have a credit union? Start there.
The per-mile overage rate is $.20… if my driving trend continues I’ll be paying about $6k when I turn this one in. Not sure it’s worth to keep driving. Today the dealer called me back to say they have a “great option” for me so I have to go see them in person next week. I just want to be prepared for their shenanigans …
No, but I’ll look into it.
If you want to avoid the shenanigans, don’t bother going into the dealership. Have them send you the options by email in writing.
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The milage penalty is $.20/mile and I’m estimating I’ll be over about 25-30k because I drive a lot for work.
I have 15 payments left officially @ $390/month.
The residual value of the car is $19,300.
The capitalized cost when I signed the contract was $32,325, and the adjusted cap. cost was $29,450… The bumper was cracked on the left side when I left the car parked on the street overnight, I’m sure that’ll affect the value too…
What is your current buyout price? Have you gotten quotes for selling the car?
Really just keep it. Until you know the current value and payoff, the only other option is to roll the remaining payments into a new car. If you can find another $390 a month base payment you will basicily be paying both payments when getting a new car (wrapping in the negitave on top of a new car payment). You will also find yourself in the same situation on another lease and wanting to get out 15 months early with hitting miles again.
If you take the $6k you are expecting to pay on the turn in - it is really $167 a month over the 36 month lease. Next time (after you turn in this car and walk away paying the fees) you can set it up for the acutal miles you are now driving and just make the correct payment up front.
Agree, don’t go into dealer, weight you options at home. There is nothing magical he will offer. Don’t rush.
You should be able to buy the car for about $25K is my guess so you are looking at a car payment close to $500 a month for 60 months. You are better off driving it for the remaining 15 months then decide whether to buy it. You will be in a negative equity position if you buy it now given the damage. See if you can get the bumper fixed cheaply somewhere before returning to avoid a large charge.