I helped a friend out of her Atlas and into a loaner Volvo lease as per above saving her $250/mo. Got her 15k per year but she drove more than planned. Has only made 14 of 24 pmts and will hit contracted miles in just 2k miles. Payoff is $56k and Carvana is $41k with retail maybe $45-46k. Buyout at lease end is $53k. Overage is 25 cents per.
Seems kinda stuck but any creative ideas here? She asked me if she should park it and I said that might be best option vs a huge overage bill. I know Volvo has 6 mos pull ahead but the values stink here. Any help appreciated.
that’s not true. you should always lease a car for high mileage use. you just have to account for it correctly. the cost to drive 24k/year in terms of paying for the mileage will be far less than the depreciation hit the car takes for those miles.
Yeah thx - I was aware of the Volvo restrictions just wanted to hear of anything I had maybe not considered. On my daughters xc40 I got her out early by buying it paying tax and retitling in my name and selling to Carvana but the delta was only 800 bucks. That doesn’t work here obviously. She didn’t plan on driving 24k and she had not on the former atlas - it just sort of happened like that.
VCFS offers pull ahead to get into another volvo 6 month before maturity. It might be a good idea for you to drop it in 4 months and pay for whatever overage will be. Pull ahead does not prorate the miles, which is good news for you.
Can someone help me with Volvo pull ahead? Let’s assume we are at same spot with 6 pmts left. Payoff is 56k Carvana value is 41k. Car is at miles but not over. Last 6 pmts are 400 each. Do they roll the neg equity of 14k onto new lease and then waive the 2400 in pmts and return fee? So I save 3k but have the pain of 14k added to new lease pmt?
It’s def closed end. So the Captive eats the neg equity and 6 pmts are waived along with dispo? Just trying to figure out how much the dealer vs captive is putting into the pull ahead and how it might affect the terms of the new lease such as dealer discount %.
if you’re saying it’s closed-end, but then asking the follow-up question about negative equity, i’m not sure you understand how a closed end lease works.
Well, her husband isn’t very fond of the situation and paying an overage so I guess he told her that she needs to park it and drive his truck which is not optimal for her
I just figured the captive set the residual above what the value of the car is at turn in so it would have to be written down on their end. Could certainly be wrong.
No on the NE. You don’t owe either the NE or the remaining payments. They’re willing to end the lease agreement by mutual consent—they need to retain the customer and the customer needs to make sure they’re getting a good deal
Yeah, that’s what I figured. Maybe it’s semantics. The captive is the finance company they’re gonna have a car that’s worth 41,000 but it’s on the books for much higher rv so it has to be written down. You can call it a residual adjustment or maybe negative equity is a bad term to use. But the walk-through of the pull head was what I was trying to get at. Is the finance company funding the 2400 in payments waived and disposal fee on top of the residual write down?
OK that sounds like a better situation if it’s essentially just walking away six months early - if there’s no mile overage, nothing is due as long as you commit to another lease term.
I’ve never personally seen it but apparently Volvo does 20K mile terms so that might be a better option for her next lease if she wants to get into another Volvo. Just compare the cost of the 20K mile term plus overage versus just paying the overage on a 15K mile term. Assuming same amount of miles she’s driving now.
Thanks everyone I understand now - I thought maybe the program was really just disguised as a trade-in deal and the dealer still had to pay off the finance company and there still would be a shortage that had to get rolled into the new lease which obviously is not the case it’s just walking away early Moving up the termination date as long as you sign a lease.
Currently in a 2025 T8 Plus. I can exit my lease early at no cost and move into a 2026 B6 Ultra for the same monthly payment.
Looking for the community’s take on downgrading from the T8 powertrain/charging capability in exchange for the new body style and upgraded equipment on the 2026.
Also wondering — should I hold off a bit longer and see if T8 incentives start to drop, similar to what happened with the EX90? Or is that just wishful thinking?
