Not that you’d need it, but it may not hurt to compare the differences for lease transfer and early term between the two. And it also depends on how you value your time and how good you are at solving potential issues. USB appears to be a toss up, but in the event there’s an issue, if you don’t feel like you want to deal with potential problems then don’t choose them. Personally, I’d save the $800 and deal with USB at lease end. It’s not like a guaranteed thing that you’ll be given the run around with them.
Edit: Just realized the savings is more like $100 because of the wear and tear you mentioned. In that case, go with the captive.
This is what scares me. I have a Tesla Model S that will be going back in 5 months and it is with USBank. If they get that picky with us it could be north of a $5k bill. Our Model S air suspension lowered onto a parking divider and caused some damage to the plastic air dam. Because of how it was reattached by the body shop they may also say it needs a front bumper.
Of the 15-20 leases our extended family has had over the years, only one was with US Bank. And it was the only one we had any additional charges for wear and tear, outside of overage miles. Never again…
Well its either I go with:
(1) US Bank and no Wear and Tear Coverage
(2) Go with US Bank WITH Wear and Tear Coverage (Additional $500)
(3) Go with Captive for Additional $800 but no wear and tear coverage.
Those are my choices.
I’ve ruled out option 1 after reading this thread.
Its option 2 or 3 for me and I’m not sure which to choose. I mean I like the idea of being covered against all wear and tear, and ultimately its cheaper than captive with no excessive wear and tear coverage. So is it not more worth it in the end?
I’d go Captive without wear and tear based on additional reading. From what others have said, USB excess wear and tear is worthless, so it’s basically the same, if not worse, than opting for a captive lease without excess wear and tear.
@starbai
What area are you in and what make/model are you shopping? A credit union lease through a CULA credit union comes with a $1k wear and tear waiver at no extra cost and the RV/MF usually beats US Bank. I can check to see if there is another lender for you to choose.
I’m guessing it’s a Toyota or Honda since US Bank usually pays the dealers an $800 flat to use them. Very interesting that the dealer is using that to offer you a lower selling price through the 3rd party.
There are several recent posts in the Vroom thread indicating that US Bank will not allow lessees to sell (including to a dealer) before lease end.
If this is accurate information, it is a significant concern for a lot of members and should be highlighted due to potentially substantial financial impacts to members as a result.
They can be sold but depending on the timing the buy out is market value vs payoff. There are 2 different phone numbers to call depending on the months remaining
…if I’m reading this correctly, this could be a good thing, no? For example, if someone wants to get out of the lease early and the current buyout is, let’s say, 40,000, but the market/auction value is 38,000, are you saying US Bank might lower the payoff to the current market value? Obviously, the reverse could also be true: current paper buyout 40,000 but the market value is 42,000…
Add this to the numerous end of lease complaints of nickel and diming USB does, and it makes you wonder why anyone would want to lease with them to begin with.
I’ve returned 2 cars to usbank and did lease transfer on one. Never had an issue…treat the car like the bank owns it, bc they do, and you won’t have a problem. It’s like any other review process, the people that write reviews typically have a bad experience. The people that have a smooth return process do not.
And if you’re worried about damage. Buy a protection plan
Have you ever sold a USB lease to a third party dealer (CarMax, Carvanna, Vroom, Chevy/Honda of xxx, etc.)?
The concern is the ability to do this, and also whether they manipulate/change the payoff amount depending on…whatever factors.
Those that plan well should never have to turn in a lease, they should be able to sell it before lease end and get some money back.
The concern is the inability to do this strictly because of USB’s policies and practices and if that is the case, it is harmful to both consumers, as well as brokers/dealers that use them (in the long-term).
Thanks for this, I am about to take my Jag back to Autovin for the inspection, the front spoiler on these is really low so it takes a lot of wear so I will change these ahead of time. Should we do this before the AutoVin inspection?
Correct, which is part of why this forum is so valuable for consumers… Most of the general public makes terrible financial decisions when it comes to vehicles. Glossing over, ignoring, or trying to hide this issue and the related concerns is detrimental and seems counter to what Leasehackr is about.
Quite the contrary. You shouldn’t have to buy out and private sell your vehicle prior to lease end in order to make up for paying too much during lease term. Lease hacking is making sure you aren’t eating the full amount of depreciation — not overpaying and then private selling to try to compensate for a bad lease contract.
Inflated residuals make good hacks. Deflated residuals mean you’re stuck with a buyout because you paid too much and need to recoup dollars.
