I’ve leased my last 3 cars but this is the first time I’ve gone over in miles and I’m WAY over. (2 teenage drivers to blame). The penalty is .25 a mile so I’m looking at around $10K right now but my lease isn’t up until June so more miles will be added. Just received a quote to buy out the lease and it is around $6K over what the value of the car is. Looking for advice on my options to negotiate a new lease vehicle. Do I return to GMC or can I go anywhere to get in a new car? How do I avoid taking such a huge hit? Thanks in advance for your responses.
2015 GMC Acadia SLT
Term was 36 mos 45K miles
EOLP $25,569
Current mileage 85,811 and counting b/c I cannot park the car
NADA value at credit union was $23,000 (I had considered purchasing the car)
The dealer I leased from gave me an over the phone price to purchase today with tags, tax, fees for $28K. Lease is up in June.
Have you looked into purchasing additional miles? I know with my BMWFS lease I can purchase the miles before turn in and the rate is less than the .25 a mile.
Definitely don’t buy the car out early, no sense in going underwater on it to avoid the mileage hit. Worst case, you can weigh options at lease end in terms of the cost of the excess miles vs. a new buyout offer or how they can work with you to roll into something else. You should also look at how your teenages will contribute to the cost given their excess use
I wouldn’t even consider buying miles. I would just ride out the lease until the end of the term and buy it out. At the point you’re at I would seriously consider keeping the car long term. Leasing doesn’t really make sense when you’re putting so many miles on the thing.
If your lease rate is decent you could extend the lease. Typically GM gives you 2 months, but sometimes you can keep adding another 2 months until they say no. Just gotta keep calling when you get close to the time to turn it in.
If you want a new vehicle I’d suggest buying if the you’re going to keep putting on miles like that. Also, while negotiating I wouldn’t mention this car until you already have a deal in place. You’d still want to buy it and trade it in cuz you’ll save a lot on taxes. If it’s under water you’ll just have to pony up the difference, but they should be able to wrap that into your new loan though.
Sorry its not my thread but i just love reading about all the stuff, my question is if you extend the lease lets say 2 month do the mileage increase too, so for instance original term was 12k miles per year on 24 months, if lease gets extended two months will i get additional 2k miles?
Try taking it to Carmax and see what they’ll give you for it. I was pleasantly surprised at the offer they gave me on a '13 Nissan Rogue SL that my wife was driving.
There’s not a good reason to buy it out early if you’re under water on it. It’d be best to wait until the end of the term to buy it, as that would be less of a hit than paying out for excess mileage. You also never know what kind of pull ahead offers will be presented in the next couple of months.
Are you saying here that the trade in value is $6k LESS than what is owed, meaning you are $6k upside down when all things are considered?
IF SO, the BEST thing you can do is find a vehicle with HUGE discounts like RAM or CHEVY trucks for example or even Infiniti seems to go DEEP in discounting things-- Jeep too on outgoing models.
Then, if those discounts exist within a lease program put the neg equity into that and do a short as possible lease as you can afford. You’re not going to get a GREAT payment, but the money factor (int rate, of course) is usually so microscopic that floating the $6k in the new lease is not compounding the problem with paying interest–it’s like using a 0% credit card balance transfer. You pay the neg eq out, but over time.
24-39 mos later, you are freed of this quandary. aPatience and time is usually the only sane solution.
Also, you could just OPEN a credit card that has 0% intro offer and put the neg eq on the card when you get the new vehicle and trade in this albatross. Essentially you use the credit card for a $6k downpayment so it’s not rolled into the lease, even though it WILL be on the lease. The $6k DP erases or evens it out. Then on the trade in and pay it off in 12-24 mos, depending on what the card offers you.
In the meantime, try to influence a dealer to give you more REAL $ on the trade.
I would never have thought about asking for an extension by a couple of months. My lease rate is great. I got a smoking deal at time of the lease but have clearly blown it now. We are considering keeping it and NOT leasing again for a while until the teenagers have their own cars b/c there are 3 people driving this one.
I have never bought one of my leases though. I was surprised that GM Financial wouldn’t give me a pay off amount (I do have the one on my paperwork but is that the TOTAL price all in?). They told me I HAD to go to a local dealer to get pay off and paperwork while my credit union just said to get them the number so they could process the loan. I have until June so no decisions have to be made today. I appreciate your input. Thank you for taking time to respond.
