Looking for some advice/strategies, I have 2023 Kia Sportage PHEV; it’s my dog shuttle car. I want to return it earlier than the date on the lease contract. The lease is for 30K/36 months. I am close to using up the 30K miles; currently at 26K miles with an almost a year to go.
I reached out to Carvana and they gave the value at $27,500. I know that I cant sell to a 3rd party but wanted to see anyway. The current residual value is $37187.43 (probably a bit lower now).
Options:
I called a dealership and they said if I’m going to return it now, I owe the rest of the payments left. If I want to get another car from them, then the situation is different. Off-course I’m sure they’ll find a way to roll that into the new payments.
Drive the car very sparingly until next year. Seems difficult for a year; possible for 4/5 months though (till the end of the year). And then pay the rest off or drive with the extra charges until the lease is up in July 2026.
What are good strategies to return the car early without negligible amount of penalties; if thats even possible?
The main purpose of this car was to take my dog around but I ended up taking it to Toronto a bunch of times and ended up eating the miles way earlier than I thought I would. I want to get another car (pay cash) and not have to worry about the mileage. I want a fun DD with not too much maintenance required. I was thinking a used AMG EQE or a Taycan CT since the prices on these are dropping.
I love that most people are allergic to the EQE. I plan on not looking at the car when I get out of it as well but thankfully; they are really good cars from the reviews and owner feedback. The Taycan CT would be great but I want the 2nd gen (2025+) so I’ll wait for that depreciation to happen. The EQE will have to do in the meantime unless I find a really good Taycan CT deal.
I believe mine $ .25cents/mile (have to verify from the lease contract). I think I can last the 4K miles till Nov/Dec (maybe Jan). I think in total, I’ll drive another 10K miles till next July.
Is the main reason you want to end the lease early the mileage penalty? If so, and if you like the car otherwise, I would personally just deal w/ the $2.5K overage at the end, rather than getting another car right now (where you’d have to deal w/ nearly $10K neg equity).
You also might want to check on the difference in insurance premiums for your current car vs. the AMG EQE or Taycan CT.
Yes, and I want a more comfortable/fun car. The Kia is great btw. An amazing city car. Has all the tech. (heated/ventilated seats, surround view cameras, safety suite, etc).
You may be correct, I may just have to eat the extra cost of the miles. It’s more of an impulsive move rather than practical one; so I’m trying to balance. So what I’m thinking is to really drive the car sparingly (no long distance at all), and see how long I can make it last; most likely till the end of the year.
