Ohio. About $4000-5000 in excess mileage/wear on old lease. Is there a best company to roll this into with low money factor? Open to different car/suv brands and models. 2 month left on lease and not sure what to get next. Thank you
As your financial advisor, maybe not get another lease?
I wouldn’t say there is a best company but wouldn’t it be easier with the current lender you have since the overage/wear tear is owed to them? What is the current car?
I don’t think the excess mileage is negative equity. It is owed as part of the lease agreement, would be my guess. I think you would need to get the value of your car vs. what the buyout to tell if there is equity or not. Perhaps I am misinterpreting this, but that is where I would start.
There are also many threads on negative equity with suggestions that may help, but unfortunately there is no magical formula.
I currently lease a Grand Cherokee. Leasing was definitely not my best choice 3 years ago, but I should be driving significantly less miles now. It’s through FourLeaf. I went to a dealership and they said they could roll my amount into a new lease and basically cut me a check for the amount owed. That could very well be an awful idea.
Thank you. I think the best option would be to pay the amount owed if I turn it in. The negative equity is about $14,000 if I were to buy it. I am sure I explained the above incorrectly.
Pay the $5k and start fresh with a better lease.
If you do not have money open a credit card with balance transfer and have 0% apr for 12 or so months. Transfer will cost around 5%.
This is what i did in the past doing the renovation.
Can you explain how you calculated the excess and wear/mileage penalty to be $4K and negative equity to be $14K?
Right but it’s still debt that the poster is trying to roll into another lease. What I was trying to get at is I don’t think you can roll in wear tear/mileage penalty into a different lender. I mean there are always creative ways to move monies.
For sure. That is why I suggested seeing how much actual negative equity he did or did not have. If he did have equity, some or all of that excess mileage could disappear. Unfortunately, it sounds like he is way underwater.
Jeep has an equity ???
Even if it would have, credit union will not allow to use it by providing market value payoff to the 3rd party dealer. It is common practice for any Credit union lease.
I think that’s what the dealership was suggesting. The value is around 20k and I still owe close to 35. I am already at 50,0000 miles on a 36k lease at $.25. I can pay the owed amount separately if that’s the better option. Any car/suv suggestions so I don’t get in this situation again? I failed on the car, negotiated price and staying even close to my mileage allowance. All around fail! Hoping to do better next time!!
I wouldn’t look like you failed…imagine if you bought the car and it’s worth 15k less than what’s it owe. Paying for the excess miles is a steal just to turn in the keys.
You cannot lease the cars unfortunately if you will be driving over 15k miles a year.
This doesn’t make sense financially.
You should buy(finance) Toyota or Honda, they hold the value over the time.
Definitely wasn’t expecting this about of driving. Expecting to be back around 36,000 for the next one, but would still likely get 15,000 to be safe
If you can afford to pay mileage penalty, then just turn the car in at the end of the lease.
I took a quick look at your post history. It seemed like you got a fair amount of harsh answers (or no responses), but you had posted what seemed to be good deal for a Santa Fe (although you didn’t include lease duration or mileage limit), and a broker actually suggested that you get a cheap used car when you mentioned in a previous post that you are going to go over mileage.
Post your proposed deal, and include something like a calculator, a lease worksheet, and/or what your own research has indicated about a target deal. Those things might help you to get more of a response or more helpful responses.
I agree with the comment above regarding either a 0% balance transfer or maybe a Wells Fargo 21 month / 0% card if you can to cover the charges. It will be better than rolling it into a loan with the current lease rates (or ones you can get).
Two months left you have some time to get better at putting yourself in a better situation whether that is a lease or a used car.
We got the Santa Fe. This forum has been very helpful. I’m happy to do the work, just overwhelmed with where to begin, but I have some great starting points. Slowly, but surely learning as I go. Very appreciative of the help I received. I didn’t end up following some of the advice when I last posted about this Jeep, but I’m prepared to pay the overage. Just wanted to see if anyone has been in a similar situation to help.