Advice getting out of current into new lease

Ask the Hackrs
1

I’m in a very tough spot on my lease and was hoping for some advice/opinions.

I’m coming to the end of my current 4 year lease (ends in the beginning of April). It’s a VW Passat SE and I’m about 25,000 miles over (at 20 cents a mile), have a few little dings and one dent.
My dilemma is (in addition to continually putting more miles on it), it may need new brake pads and I’m also due for an oil change. I’m debating if I should just trade it in early and roll up the expenses of the miles and possible body damage into a new lease or if I should pay for the brakes and oil now and wait out the remainder of the lease. I’d hate to put more money into this car, I just got new tires (never doing a 4 year lease again!).
I’m paying ~320 a month for this lease and really want something less expensive next time around. Unfortunately, I’m thinking that may be impossible with the cost of the extra miles, etc being rolled up into my next car. My credit isn’t great, I’m at about 650 and can’t put a lot of money down either.

Like I said, I’m in a bad spot and need advice!! What do you all think??

2

Call VW or whoever your lease is through and get a payoff quote. Take it to Carmax and get an offer and see how much you would lose.

You could buy this car and keep it long term.

Go to your VW dealer and see if they will take it on trade for a new lease. They could help “eat” some of the cost you have in it.

3

Sorry about the spot you in. However, can you please include more details on the car and terms?

  1. Terms of the lease and when it ends.
  2. How many miles will you be over at lease end estimate?
  3. What was original msrp and what is payoff amount
  4. Go to cars.com and see what cars in your condition are selling for to get an idea.
  5. What kind of payment can you afford?
  6. How many miles you drive a year, because if you drive a lot leasing is not for you.

Most likely best outcome would be to buy it and drive it to the ground. Your credit score does not help with leases.

4

My advice is to start drinking heavily!

You are pretty much screwed. If you turn in the lease at lease end, you’ll owe a minimum of $5000 in excess mileage, probably another $6000 unless you stop driving today. Plus any wear and tear and maintenance.

The buyout vs current value has to be less than $6K, right?

Also, if you’re going over mileage by 6000+ miles per year, you probably shouldn’t be leasing cars. Even if a dealer gave you a new car with no penalty, wouldn’t you be in the same mileage situation in 3 years again?

I’d either buy the car outright, or talk to the dealer…just don’t sign anything without thinking it through THOROUGHLY!!!

Good luck!

5

Good advice except for this. The dealer just sees you as a transaction. They will steer you away from buying the car directly from the LeaseCo even if that’s in your best interest. They want you to transact with them

6

take it immediately to the dealer and to carmax. now is the time to do something with this, not when the lease expires. once the lease expires, you lose the trade in option.
these options may/may not make sense

  1. trade it in now or by feb/march. roll into next lease.
  2. walk away and suffer the credit dent
  3. buy the car
  4. return it and pay $5-7k.

i would personally choose option 3.