I have a cheap Buick lease that’s at its 24 month mileage limit. I plan to lease another. Worst case I’ll have to just pay the 9 months and turn it in? That’d be $1800, which isn’t awful, but I figured I could do better, as GM dealers are always advertising 3-4 month lease pull-aheads. Anyone know what’s a best-case scenario here?
Find out what trade in value is or go to car max. You could conceivably break even and be able to start a new lease after they buy you out.
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So best-case involves a buy-out purchase and trade-in to the dealer I lease the new 2018 from? Sounds sort of complicated.
How do GM lease pull-aheads work? Who eats those 3 payments when they advertise those – GM, the dealer, or the bank (GM Financial)?
I’m just wondering what best-case, worst-case, and mid-case are. To be honest, I’m fine with paying the full $1,800 but I think I can get that knocked down, at least a few months ($200/month).
If a local dealer is currently advertising 3 month pull-ahead but I need 9, can I deduct their 3 months ($200 * 3) from my total due? So, I’ll just pay $1,200 to end the lease early and sign another?
It might be cheaper to just pay the mile overage than getting out early. How many miles do you estimate to be over and how much does GMF charge per mile?
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I think GMF is 25 cents a mile, which will be a larger sum over 6 or so months than just spending $1800 in payments.
And the new 2018s seem to be leasing at about $200, so same as current payment. Ideally, would prefer to just zero everything out and get into a new one. Just hoping to come off total $1800 due, if possible. And if not possible, that’s OK too.
GM and GMF are the same…if it’s their program they’re the ones eating the payments. Theoretically the car is worth more now than in X months so the entirety of the waived payments may not be a loss.
If it’s a dealer “program” they may just try to hide the remaining payments somehow. They don’t have the power to waive payments to the bank unless the bank says so.
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It depends. I’m trying to remember which captive/bank it was, maybe Volvo, their program was X months waived or nothing at all. Even if you were one month out, you couldn’t pay that one month and get the rest waived.
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Yes, it is Volvo. 202020200220
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So from the math perspective, you drove 24k miles in 15 months on a 24mth lease (assuming 1000 miles a month). 1600 miles per month. At that rate you will drive 14.4k miles in the rest of the lease. At 0.25/mile, that is a 3600 overage charge plus the remaining payments of 1800.
So the question is can you find another vehicle you can lease (on an 18k per year lease) for less than 400/mth (3600/9). Also to consider, if you are driving that many miles, maybe a purchase is the way to go.
It was a fluke travel year that burned up the miles. Moving forward will remain within allotment. Just trying to strategize getting out of current car for less than remaining balance of $1,800. And if I can’t, then I’m not worried about paying the $1,800.
GMF didn’t charge me on my 2500 over mileage when I turned my lease in back in Feb. Maybe they would be willing to work with you?
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GM Financial will waive up to $500 in mileage overage if you buy or lease again through them. So you would be fine for 2,000 miles over.
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Unless you received a letter from GMF on a pull ahead, it’s a dealer gimmick, which will roll your remaining payments into a new lease.
I’ve never heard GMF doing more than 4 months either. And you would have to have 4 months remaining (if you have 5 months, you wouldn’t qualify).
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Thanks! So just mentally prepare to write a $1,800 check this week?
Did you lease another car?
Well, you won’t write it this week. Here’s what will happen if you return/ground your car early:
Whatever GM dealer you drop the car off at will have first crack at buying it. If they do, you’d owe your remaining $1,800 in payments.
If they decide not to buy it, dealers will have the opportunity to buy your car at a predetermined price GMF sets. If a dealer buys it, you owe the remaining $1,800 in payments. They give them like a week (and this is all dealers across the country). The idea is that they’re trying to avoid sending the car to auction.
If no dealer buys the car, they’ll send it to auction. Depending on what they get for the car at auction, you could owe less, but no more than the 1800 you still owe. Ex: Say they sell the car at 15,000 and you owe 16,000 on the residual. You’d only owe 1,000. However, if they sell the car at 15,000 and you owe 18,000 on the residual, despite the fact there is a 3,000 gap there, you’d still only owe the max 1,800 in remaining payments.
You’ll receive a final bill somewhere between 30-60 days after you ground the car. That’s when you’d pay (providing any of the above items don’t happen).
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I didn’t, but the car was in mint condition besides a small dent on the deck lid and a dent on the bumper I accidentally put into the night before I turned it in. Maybe the dealer bought it that’s why their was no charge, but I have no idea. I just had to pay the turn in fee and that was it.
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I am, kind of in the same boat at the moment.
I chatted with 3 reps re pull ahead, etc. and the following is what I was told.
- GM does not offer pull ahead, only participating dealers in my/your area. (I read somewhere GM offers pull ahead)
- Will waive up to $500 in mileage overage and $500 in wear and tear.
- Disposition fee is waived if you’re leasing/purchasing another GM products.
- You only have to pay the remaining lease payments on your contract.
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Mileage buffer is comforting as it doesn’t make the new lease quite so urgent. But I’m eager to get away from this, so I’ll still probably try to get in something this week.
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