Lease End for 2015 Toyota Corolla / Options

Ask the Hackrs
1

Hi Guys, looking for suggestions and ideas on what to do next…

EDIT : 36mo/12k

2015 Corolla LE, lease will be completed in Nov 2017, 6 payments remaining as of today.
Residual is $16,xxx
Value based on NADA and KBB is right about 10,500.
Car has 43,000 miles. So around $6k in negative equity.
Current payment is $410/mo incl tax

My plan was to find an amazing deal on another Corolla or Civic so payment will be less than $200/mo, and roll the negative equity onto the lease? The MF for Honda and Toyota I’m hoping will be so minimal to kinda make sense to roll the negative equity onto a new plan.

*FYI this is not my lease, trying to dig my sister-in-law out of this. The deal is A LOT worse than the notes mentioned above, but I’ll save those details…for now…

3

What was her mileage allowance?

Also, KBB is garbage.

Go on cars.com - find a comparable vehicle and subtract 3k from that price.

4

She does not have 6k in negative equity. The whole point of a lease is that at turn-in time, you can just return the car back and not worry about being upside down. She is responsible for mile overage and dents/damage though.

3 Likes
5

@Benedetto 36 months/12k year

@Jon : You’re absolutely correct, I may have used the wrong terminology.

Here’s my thoughts on it :
Mileage allowed is 36k at the end of the lease. There’s 6 payments remaining.
6 x $410 = $2460.

Assuming another 1000miles a month for 6 months, an additional 6000 miles on top of the current 43k.
So end of the lease she should have about 50k miles, minus 36k allowed. Overage of 14k miles x $0.15/mile for an additional fee of $2100.

Maybe I’m going about this wrong…would a dealer take the remaining 6 payments and roll that onto a new 36mo lease? New Lease payment + $68 [$2460 of remaining payments divided by new 36mo lease]

6

Call Toyota Financial and see if you can buy extra miles first.

If no - early term that bad boy. 15,000 miles over will be a major bill.

7

The ultimate question to be answered now for me; would a dealer take the remaining 6 payments and roll that onto a new 36mo lease? New Lease payment + $68 [$2460 of remaining payments divided by new 36mo lease].

Would only Toyota be able to do this, or can any dealer [Honda] do the same?

Here’s why I’m a bit confused is if Honda would be able to roll my remaining payments onto a new lease, technically they would need to purchase the the car, right?
If the residual is 16,xxx + 2460 for the remaining 6 months of payments, but the car at this point is only worth about 10k, I can’t seem to wrap my around it