Newbie tried doing his research

Ask the Hackrs
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Hi Everyone,

I have tried to look through threads, and come up with an answer on my own.
However, it does not seem to be happening without your help.

Current situation:
I currently am in my first lease. I did not research as much as I should have prior to signing; and have only recently found your library of knowledge.
After reading some of the topics/discussions in here, I have learned the US Bank may be a pain to deal with in the next 5 months as I wait to end my lease.

My wife and I are now expecting our 2nd child, so I just can’t justify the car payment (We have a 3rd car, beater, that I will drive for now).

36 months lease / 10k miles per year
I am currently sitting just over 30k miles with 4 payments left (March - June).
I have a few minor cosmetic issues with the car, however, the front bumper is cracked from pulling into a parking block. (I am worried about this charge)

I keep my car fairly clean, and have paint corrected it at least once a year since ownership, as well as fully detail it every chance I get to wash it thoroughly.

I have attached my calculator below, as I was originally contemplating buying my car out.
The current monthly payment that I am getting with the calculator is almost 100$ less than what I am actually paying.

I guess my main questions are:

Question 1 - Would it be best to
1. Purchase this car outright and try to sell it in the secondary market or to Vroom/Carvana/CarMax (As I have read that USBank will not entertain these as dealers for buyout).

2. Suck it up, pay the mileage overage and wear and tear.

Question 2 - is the lease deal I got as good as I originally thought without knowing much about leases, and if I see discrepancies in #'s between the lease agreement and the dealership order contract, is there anything I can do about it now? (I know that’s kind of a crazy question)

Really appreciate any help you all provide.

Thanks,

2

There is absolutely something you can do about it now… Figure out what you screwed up inputting into the calculator. If you’re off by $100, you’re doing something wrong. If you post your contract, we can help you figure out what. Even without knowing what your contract says, your calculator looks all kinda of screwed up. Did you really pay almost $12000 out of pocket to get a charger?

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@mllcb42 So the 4500 dollars were “dealer incentive” at the time - I traded in a car and they gave me 5000 and I put 1000 cash (again, all this was before I knew anything on leases) now I know not to put any money down. I’ll scan the contract tomorrow and post it. but if the above information helps for now, let me know.

4

Your calculator shows almost $12000 das, so obviously that’s a big part of the discrepancy. Now it sounds like you actually did $6000 das, but that would make your monthly almost $200 too low in the calculator, not $100, so there is definitely other stuff in need of correction.

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4 months left? You do know you can jump into a new lease now and have them swallow the remaining payments. I did with mine, they bought back 3months worth of lease payments… and going over on the mileage say by 3000-5000 miles isnt the end of the world. My friend brought their car back with many miles over and dealer and my friend split the overage cost on the miles. She did go from one brand to another. Also when my lease was ending I received multiple vouchers in the mail from competitors for $1500-$2000 to pay for any overage on miles or use towards the payments of a new competitor brand car which I never did since I stayed with the original brand I originally leased from.

6

Nobody is swallowing payments. They’re just rolling the cost into the next lease, where you get to pay interest and taxes on it a 2nd time.

(Since this is a us bank lease, an fca pull ahead wouldn’t even help).

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Trust me on my lease they didnt. I know because the deal I got was so good that I’m paying as much as people are paying per month for a car that’s 3 or 4 tiers down from my top trim

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It doesn’t work that way. The dealer doesn’t have a magic wand that just makes payments disappear.

They either rolled the remaining payments in or they bought out the car and hid the equity (positive or negative). The only exception being if you utilized a factory pull ahead program.

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They probably hid the equity. They bought back about $800 worth of payments. I dont recall if it was a factory pull ahead program but what I do know is that my payments for this lease are extremely low compared to others who have had trim levels lower than mine paying alot more.

10

It doesn’t matter what your payment was. You rolled negative equity in unless there was a pull ahead. Not necessarily a bad thing if you like your payment, but it’s not appropriate to tell people that dealers will eat remaining payments.

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Don’t need the 3rd car - having a 2nd child and just don’t want the payment - our other cars are paid off in full.

@mllcb42
The only thing I can think that would adjust this is the MF. Again, being completely ignorant when I signed this lease, I didn’t ask or know about MF. I don’t see that number anywhere in the paperwork.

I backed into the calculation for the one I’m using.

12

Where the heck did you come up with $1900 in dealer fees? Are you adding in service and warranty contracts there? And I’m assuming you are incorrectly adding tax to the gov fees line.

What is this? A scat pack?

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You have a couple options here. You have to crunch some numbers to see what’s the worst of the 2 evils.

#1
Figure out this total.
Remaining payments+disposition fee+mileage over fee+damage fees.

#2
Get quotes now from Carvana, Vroom, Shift, etc… see how much they offer. If the difference between
Sale offer - (buyout+sales tax) = less than above number from option #1 than this amount would be better to eat. If not have to ride it to the end and return.

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3rd times a charm

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@Qbrozen

Yes, adding in service contracts.
I did add tax, but in NJ don’t I pay it up front?
Yes, Scat Pack.

18

What service contract did you add and for how much?
Once you add back tire and wheel, “lease waiver”, and service contract back to sales price you essentially got no dealer discount on the deal. Also what’s your zip and sales tax rate?

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@Jflores14 Zip was 07747 - 7%

I have since moved to VA - I’m assuming this will effect the buyout as well? From what I was reading in another thread, NJ is an upfront Tax State, and VA is not, so I’ll still have to pay sales tax on the buyout? Potentially go through NJ to try and get a prorated amount back?

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You don’t HAVE to pay it up front. In either case, you have added it twice to your calculator by adding it as a gov fee and putting the percentage at the bottom.