No NOT offering me $28K…SELLING it to me for $28K now all in. My paperwork states $25K if I wait until June when lease is up…I’m sure that total doesn’t include taxes though.
I can guarantee you, there will be no pull aheads that will eat 10k in mileage. GMF will eat 500 at disposition if you lease another car.
Ho Lee Cow!! Carry on.
I would seel at 6k loss and wash my hands with it.
I’d argue that the BEST thing to do would be to buy it and drive it till the wheels fall off at this point. What you’re suggesting is not the most prudent financial move.
Well maybe we can go back and say that the BEST thing would be to not overmile it!
He’s not asking what the best financial move is, Suzy Orman. He’s asking what to expect when going into a dealer.
HA! Obviously, if we could go back on not go over the miles, we wouldn’t be in this situation…but since I’m a look forward kind of girl, I’m weighing all of our options and praying that we make the best decision given the circumstances. I just don’t want to buy the car and realize months later that there was an option out there that I didn’t consider b/c I didn’t know it existed.
New guy with the snark…fantastic.
So, at this point, your master plan is to open a credit card to pay off her negative equity, or bury it into a new car, and pay interest/taxes on it, (even suggesting a NEW lease, knowing she already blew this lease out of the water and will likely do it again), when she could just own the car outright. Makes sense.
This isn’t making any sense to me. If you can get a vehicle with “HUGE discounts”, trading in a car with negative equity isn’t going to change that. You’re still paying for that negative equity any way you slice it.
Holy smokes thats alot of miles, that thing must be going constantly.
With tax and interest as well
3 options exist no matter how you cut it.
#1 turn it in and pay the penalty
#2 buy it out at the residual value when the lease it up (don’t buy early because if it is stolen or totaled before that your gap insurance will kick in and save you… You have teen drivers so anything can happen).
#3 sell to a 3rd party and pay the difference between what you get and the residual (also works like this on a trade). On a trade you may get a sales tax credit that will help cut some of the losses if your purchasing a new car.
There is no magic pill. You went over your allotted miles in the contract so your going to pay for it.
Exactly, even if GM sells the mileage at 15 cents, it is still $6000. If you are only 6K negative on a GM lease, I would run to the dealer now before they take it back…
What it does is allow the deal to HAPPEN. The banks have limits on what they will lend in both regular finance and lease deals. It’s called loan to value ratio. Usually it’s about 120% (MAX may be 140%…maybe) of the invoice. When you roll in negative equity on say a vehicle bought at or close to invoice you are going to easily exceed the loan to vale (LTV).
The bank won’t approve it–too much risk if the loan/lease goes bad (non payment, etc).
SO, the rebates help defray the cost and offset the negative equity.
That’s for starters. Now as far as payment, when you have big rebates and you roll in neg eq, the payments skyrocket. Some people care about payment. The big rebate keeps payments reasonable.
Do this:
- Call GM financial and get the payoff quote on the car right now.
- Go to Carmax and get he price of car. Check the delta. Payoff - selling price (I think it should be around $3K)
- Since you are so over the mileage you should not even think of paying for miles. Also you will be hit by excessive use charges etc.
- Either sell the car to Carmax or find a deal on a new car (lease or purchase). Trade the car and assume some negative equity towards loan or lease.
- You need to get into a new car ASAP.I recommend not buying this car, it has been abused. You will be paying so much for repairs in a year or two. If you drive so much think of leasing or getting a Japanese next time.
GMF won’t give out payoff quotes this close to term. She tried, and was told to go to the dealer, as noted above.
If her kids will be putting 30k/year on it again, she should not lease.
Why would she need to get into a car ASAP? She knows the history of her car, and provided she’s kept up with maintenance, there’s no reason to believe the car will suddenly blow up tomorrow. There’s a huge stigma regarding Japanese cars lasting longer than American cars. That’s not the case anymore. Japanese cars still break down, and can arguably cost more to repair than the American counterpart.
Predicting what Carmax will give her, and what she’ll ultimately owe is futile. Market, condition of the car, etc…play too much into this to assume. Agree she should try, but she may be horrified at the outcome.
She would not be hit with excessive use charges if she is only over on mileage. With that said, that’s a hefty bill in and of itself. If she had 4 bald tires, a cracked windsheld, and a key down the passenger side, yes, she would. She would not, however, if mileage were the only thing.
see how much carmax offers as trade in right now and sell to them. you should loose less than the 10k.
Not possible if it is closed end lease, Call the automated line all cars have payoff quotes available at all times.
That depends upon her situation that’s why I said loan or lease. Well with that much usage, she should lease two cars, if she can find cheap leases instead of gettin one.
Logic: she is driving 2500 miles a month based on her usage, she will be paying $625 over her monthly payment every month. I never said it will blow up, She will be paying more in maintenance. 80k miles in 32-33 months is a way too much for any brand.
It cannot be any worse than $10k in over-mileage costs.
All of the above you mentioned should be fixed before even going to dealer.
OP, I would look at this differently. Yes, you are over miles to the tune of quite a bit depending upon whether you buy it or pay a mileage penalty, but in essence all you did was put the mileage demand of your family on a single vehicle as opposed to having your other 2 drivers get their own vehicle and the costs associated with that. Say your delta is $5k between tradein value vs. buyout value. Then, yes, its painful for this transaction, but in essence that amount paid for the extra 40k miles you put on it. Not sure if you have 1 or 2 teen drivers using this vehicle, but could you have covered their driving needs for $5k over the last 32-33 months if you purchased them 1 car to use - maybe, maybe not, but probably not with having them drive around a newer vehicle with safety features, etc.
Also, depending how your state treats insurance, you may have saved a bunch of money in insurance by not having them be assigned to their own vehicle. We pay more to insure my 17 yr old on the 2003 Accord he drives (without collision) than we do combined for the 2017 Expedition and 2005 Expedition that my wife and I drive.