Car update, advice being sought

[1stTimeCaller]

I leased a car last February. Things were fine until I switched jobs, twice. I'm now driving 100 miles/day to work and back. The lease allows me 1000 miles per month. I should have 15k miles on it, I currently have 24,600 miles.

My 'buyout' is $17,454 to trade it in and the wholesale at the place in FW I'm talking to is approx $14,000 meaning that it I trade it in I'll be upside down $3,454.

I cannot buy any more miles for the lease. What do I do?

[BlondeSoonerGirl]

Light it on fire and then call jk...

I'm serious.

[Mjcpr]

Rule #1 - Never lease a vehicle

[etouffee]

It doesn't really sound like you have a lot of options.

[1stTimeCaller]

there's always the ole odometer felony trick thingy...

[colleyvillesooner]

Sounds like you should have looked for a new car when you switched jobs ;)

[etouffee]

ditch it somewhere and report it stolen. then blame the theives for the extra 10,000 miles.

[1stTimeCaller]

I like the car, I wonder if I could trade it in and then buy it right back, if that makes sense. It probably doesn't.

[OUDoc]

I like the car, I wonder if I could trade it in and then buy it right back, if that makes sense. It probably doesn't.
Sure, if you've got $17,454.

Sounds like you're screwed (stewed), buttwad.

http://adorocinema.cidadeinternet.com.br/filmes/mulher-nota-1000/mulher-nota-1000-02.jpg

[Beef]

Tricycle tricycle tricycle
I want to ride my tricycle tricycle tricycle
I want to ride my tricycle
I want to ride my trike
I want to ride my tricycle
I want to ride it where I like

[OU4LIFE]

It's obvious you should have bought a Camry

[1stTimeCaller]

Sure, if you've got $17,454.

Sounds like you're screwed, buttwad.

lemme look in the couch. After thinking about it I would be making payments on a $14k vehicle that I paid $17k for plus interest. I could end up paying 22k for a car that's worth $14k. hmmmmm

[OUDoc]

lemme look in the couch. After thinking about it I would be making payments on a $14k vehicle that I paid $17k for plus interest. I could end up paying 22k for a car that's worth $14k. hmmmmm
So, you save $8,000.:eddie:

[BeetDigger]

Rule #1 - Never lease a vehicle


Exactamundo.


And Rule #2 - don't change jobs if you ignore Rule #1.

[critical_phil]

I leased a car last February. Things were fine until I switched jobs, twice. I'm now driving 100 miles/day to work and back. The lease allows me 1000 miles per month. I should have 15k miles on it, I currently have 24,600 miles.

My 'buyout' is $17,454 to trade it in and the wholesale at the place in FW I'm talking to is approx $14,000 meaning that it I trade it in I'll be upside down $3,454.

I cannot buy any more miles for the lease. What do I do?


this happened to me a long time ago. i'll tell you what worked for me (not calling it smart, but it worked).

upon the realization that i was screwed, i started going to different dealerships and telling them my situation. i said i knew they were gonna **** me, but i was looking for the dealership that was gonna **** me then at least make an attempt to cuddle up after......

they are more than willing to roll in the overages and residual into a new deal. i bought another car (that i thought was fairly priced) then started paying on it like mad until i was rightside up.

then vow to never, never, evernever step foot in a new car dealership for the rest of your life.

[1stTimeCaller]

Exactamundo.


And Rule #2 - don't change jobs if you ignore Rule #1.

I make $8k more in FW than I did in Denver when I leased it. It's all gonna work out better for me in the long run, I just gotta figure out what the best way to go about that is.

[BlondeSoonerGirl]

Well, if all else fails you still have your Big Wheel!

[BeetDigger]

I make $8k more in FW than I did in Denver when I leased it. It's all gonna work out better for me in the long run, I just gotta figure out what the best way to go about that is.


Sounds like you break even for the year: $22K for a car worth $14K. Next year, you should be ahead. That is unless you lease another car. :D

[1stTimeCaller]

this happened to me a long time ago. i'll tell you what worked for me (not calling it smart, but it worked).

upon the realization that i was screwed, i started going to different dealerships and telling them my situation. i said i knew they were gonna **** me, but i was looking for the dealership that was gonna **** me then at least make an attempt to cuddle up after......

they are more than willing to roll in the overages and residual into a new deal. i bought another car (that i thought was fairly priced) then started paying on it like mad until i was rightside up.

then vow to never, never, evernever step foot in a new car dealership for the rest of your life.

sweet, I'm looking for a dealer that will use lube and not one that will tie a rock around his junk before he rams it home. That's more or less what I'm after, no?

[Mjcpr]

one that will tie a rock around his junk before he rams it home. That's more or less what I'm after, no?

Most likely.

[Boarder]

It's obvious you should have bought a Camry

HA!

[toast]

Drive backwards until you're even with your miles.

[slickdawg]

How about you drive it down to the beach for the next landfalling hurricane.

That will solve the problem for you, "naturally"

[yermom]

can't you just buy the car at the end of the lease?

the penalties are only if you give them back the car, right?

you can probably finance the car for 17k...

[Mjcpr]

can't you just buy the car at the end of the lease?

I think he's saying the cost is more than its value, so he'd be upside down on the loan.

[slickdawg]

Before Katrina, he could have locked it up in New Orleans East and still had it stolen within 40 minutes.

[yermom]

I think he's saying the cost is more than its value, so he'd be upside down on the loan.

depending on if he trades it in or not

sure he's going to lose money either way, but if he likes the car it shouldn't really matter if he's upside down

i would think the earlier you bought it out, the less money he is going to lose

what is the car?

[Mjcpr]

what is the car?

It's a small, usually enclosed motorized area used for transport but that's not important right now.

[BlondeSoonerGirl]

'Motorized area'?

WTF?

[yermom]

Roger.

you could probably sell it for more than you could trade it in for too...

[mdklatt]

I think he's saying the cost is more than its value, so he'd be upside down on the loan.

This is only a problem if he's going to trade it in, not buy it. Leases are a bad idea unless you plan on buying the car (and can afford it) when the lease is over.

[Mjcpr]

I'm just telling you what he said, people, I didn't say he was the smartest knife in the deck.

[1stTimeCaller]

I think I can buy the car for $10,000 when the lease is over. I need to check the paperwork at the house. Still not a good deal being as the car will probably be worth about $8k or less at that point.

[JohnnyMack]

You realize that this is karma paying you back for the $43 don't you?

[mdklatt]

I think I can buy the car for $10,000 when the lease is over. I need to check the paperwork at the house. Still not a good deal being as the car will probably be worth about $8k or less at that point.

Well of course it's going to be worth less then what you can buy it for--you put all those extra miles on it. That's why they put mileage penalties into leases; you're paying for the depreciation. You're going to pay the mileage penalty one way or another: straight up if you turn it in at the end of the lease, as a $3000 loss if you trade it in, or by being upside down if you buy out the lease. Being upside down is meaningless until you sell the car, and you can always get right side up if your monthly payments are big enough.

[OUDoc]

Park it by a river for the remainder of the lease. Dump your house/apartment and live in the parked car. Buy a new car now and start driving that one. Return the other car at the end of it's lease. You're welcome.

[BlondeSoonerGirl]

Park it by a river for the remainder of the lease. Dump your house/apartment and live in the parked car. Buy a new car now and start driving that one. Return the other car at the end of it's lease. You're welcome.

And THEN call jk...

[OUDoc]

Buy an IDENTICAL car. Switch all VIN numbers. Return it as the leased car. You're welcome again.

[yermom]

This is only a problem if he's going to trade it in, not buy it. Leases are a bad idea unless you plan on buying the car (and can afford it) when the lease is over.

that's even worse... you end up paying interest and rent, it succs. the only reason to do this is if you can't afford the payments on the car if you buy it

i'm not that sure on the reason to lease a car unless you plan on like always having a new car and don't mind always having a car payment

[mdklatt]

the only reason to do this is if you can't afford the payments on the car if you buy it


Exactly. You're not paying extra money in the end if you lease and then buy; all you're doing is stretching out the payment period. If you plan on keeping the car until after it's paid off if anyway this doesn't matter.

[OUDoc]

Go back into the dealership, explain the situation, then cry and show them your boobs.

[1stTimeCaller]

OK, I just talked to a buddy at the Dodge place in Chickasha. He's gonna work something up for me. He said he has enough rebates on some new stuff to cover me being upside down. Then I'll get a new something and be upside down the next day but I can drive it till the wheels fall off.

[JohnnyMack]

I have a Honda Accord I'll sell you.

[1stTimeCaller]

tree fiddy

[BeetDigger]

Exactly. You're not paying extra money in the end if you lease and then buy; all you're doing is stretching out the payment period. If you plan on keeping the car until after it's paid off if anyway this doesn't matter.


Good advice but clearly, you can lead a horse to water, but you can't force him to sleep in the barn.

To summarize, an on paper loss of a few thousand dollars is better than a realized loss of a few thousand dollars and one should not go through the pain of the realized loss if one likes the car. Why is this good sense one asks? Because, not taking your lumps on this car just to buy a new car will result in the same upside down on paper situation because the minute you drive off the lot with the new car, it is worth much less than you paid for it.

Moral of the story people: don't car hop. If you buy a new car (with cash, via a loan or via leasing the first three years of ownership) KEEP THE CAR AND DRIVE IT. The lowest depreciation occurs AFTER the fourth year and gets less each year.

[slickdawg]

Good advice but clearly, you can lead a horse to water, but you can't force him to sleep in the barn.

To summarize, an on paper loss of a few thousand dollars is better than a realized loss of a few thousand dollars and one should not go through the pain of the realized loss if one likes the car. Why is this good sense one asks? Because, not taking your lumps on this car just to buy a new car will result in the same upside down on paper situation because the minute you drive off the lot with the new car, it is worth much less than you paid for it.

Moral of the story people: don't car hop. If you buy a new car (with cash, via a loan or via leasing the first three years of ownership) KEEP THE CAR AND DRIVE IT. The lowest depreciation occurs AFTER the fourth year and gets less each year.

get the **** out of here with all of that logic and s**t.

[mdklatt]

you can lead a horse to water, but you can't force him to sleep in the barn.



If this horse is in Stillwater no wonder he's afraid to go to sleep.

[mdklatt]

OK, I just talked to a buddy at the Dodge place in Chickasha. He's gonna work something up for me. He said he has enough rebates on some new stuff to cover me being upside down. Then I'll get a new something and be upside down the next day but I can drive it till the wheels fall off.

Do you or do you not like the car you currently have?

[OUDoc]

get the **** out of here with all of that logic and s**t.
Re-Jected!

http://ww2.pstripes.osd.mil/01/nov01/ebb1114d.jpg

[OUDoc]

OK, I just talked to a buddy at the Dodge place in Chickasha. He's gonna work something up for me. He said he has enough rebates on some new stuff to cover me being upside down. Then I'll get a new something and be upside down the next day but I can drive it till the wheels fall off.
The crying boob-thing actually worked?

[yermom]

i think this is 1TC's way of saying he wants a new car ;)

[1stTimeCaller]

No, I don't want a new car but if I told you what I really pay each month for this lease and then what I can buy it for at the end of the lease I'd be embarrassed and you'd see why I want to get out of it. I'd be happy to drive a 97 model, or hell an 80 Cutlass Supreme would be fine with me. He said he'd try to work it so I could get into a used car instead of a new one.

[Mjcpr]

What kind of car is it?

[OUDoc]

What kind of car is it?
A black one.

[BeetDigger]

get the **** out of here with all of that logic and s**t.


I need to get used to it. My kids don't listen to me either.

[mdklatt]

No, I don't want a new car but if I told you what I really pay each month for this lease and then what I can buy it for at the end of the lease I'd be embarrassed and you'd see why I want to get out of it. I'd be happy to drive a 97 model, or hell an 80 Cutlass Supreme would be fine with me. He said he'd try to work it so I could get into a used car instead of a new one.

If you get out of it now you're going to get hosed one way or another. Spending more money on another car isn't going to make up for overpaying for this one. Assume that you can get $3000 worth of rebates from your buddy to make up for difference between what you owe and what the trade-in will be. That's not going to do you any good. The only reason you'll get $3000 worth of rebates is if the car you buy isn't worth what they're asking for it by a difference of $3000 (or more). Even if you did magically get a $20000 car for $17000, you wouldn't even be able to sell it for $17000 the minute you left the dealership with it. You can't get something for nothing no matter how you try to work this.

If some guy off the street offered you trade his used car for your car even steven would you do it? That's basically what you're doing.

[1stTimeCaller]

What kind of car is it?

2005 Pontiac G6

if I end up buying the car after it's all said and done I will have spent over $33k. That's if I pay cash to buy it after the lease is up.

I'm very smrt.

[Mjcpr]

I bet that's what all the construction dudes are driving.

[1stTimeCaller]

The dude at the dealership in Denver is still spending his commision check from me.

[1stTimeCaller]

I bet that's what all the construction dudes are driving.

just the really, really, really smrt ones are.

[1stTimeCaller]

If you get out of it now you're going to get hosed one way or another. Spending more money on another car isn't going to make up for overpaying for this one. Assume that you can get $3000 worth of rebates from your buddy to make up for difference between what you owe and what the trade-in will be. That's not going to do you any good. The only reason you'll get $3000 worth of rebates is if the car you buy isn't worth what they're asking for it by a difference of $3000 (or more). Even if you did magically get a $20000 car for $17000, you wouldn't even be able to sell it for $17000 the minute you left the dealership with it. You can't get something for nothing no matter how you try to work this.

If some guy off the street offered you trade his used car for your car even steven would you do it? That's basically what you're doing.

I'm not trying to get something for nothing. I read critical_phil's response and I know that is exactly what is going to happen. Either you and I are looking at this differently or you're just being argumentative, I don't know. Would it make you feel better to know that when he told me about the rebates on trucks I told him that it was probably because nobody wanted a 15 mpg truck to drive with gas being $3/gal?

[colleyvillesooner]

http://www.phog.tv/images/emoticons/popcorn.gif

[1stTimeCaller]

http://www.phog.tv/images/emoticons/popcorn.gif

I'm not falling for the ole popcorn bucket trick again. You got me good the first time and the second time I was sleepy. I'm not reaching in there again.

[mdklatt]

2005 Pontiac G6

if I end up buying the car after it's all said and done I will have spent over $33k. That's if I pay cash to buy it after the lease is up.



You're not including the mileage penalties are you? If you buy the car you shouldn't have to pay the penalties.

Right now you have $33,000 car, regardless of what is was really worth when you bought it. You're going to end up paying at least that amount to some combination of people when all is said and done unless you pay the penalties and walk away when the lease is over. But then you've got to get another car somehow.

Let's say the mileage penalties if you drop the lease will be $2000, but if you buy the car it will be $17,000--can you get a get a better car than what you have now for $15,000?

[1stTimeCaller]

well, right now at the pace I'm going follow me here, 24500 miles divided by 15 months = 1633.33 miles/month average. 1633.33 times 48 months(life of lease) = 78400. 78400 minus 48000(miles allowed) = 30400 miles I have to pay for. 30400 times $0.40/mile equals $12,160 owed to GMAC when the lease is up if I walk away.

I could either do that
- continue with the lease and when it's up finance $10k or $12k, I can't remember the exact number
- pay $9469.34 right now and walk away
- buy the car now for $17,454(I'm not sure how to go about that)
- trade it in and let some rebates eat up the upside down portion and finance a newer vehicle
- whatever else the Dodge guy(or any dealer) can come up with.

These are the options I have right now.

[yermom]

i don't see why you couldn't just refinance for $17,454 right now.

[1stTimeCaller]

because I'd have to pay $9469.34 to get out of the lease. I think. The salesman said the best option was to trade it in. Best option for him or me, I'm not sure.

*edit* I guess I could go to the bank and borrow the money to buy out the lease but not many banks will let you borrow $17k for a $12k car.

[colleyvillesooner]

*edit* I guess I could go to the bank and borrow the money to buy out the lease but not many banks will let you borrow $17k for a $12k car.

Just tell em the car cost $17k.

YWIA

[yermom]

actually, it looks like 17k is about retail for the base model G6

[BeetDigger]

well, right now at the pace I'm going follow me here, 24500 miles divided by 15 months = 1633.33 miles/month average. 1633.33 times 48 months(life of lease) = 78400. 78400 minus 48000(miles allowed) = 30400 miles I have to pay for. 30400 times $0.40/mile equals $12,160 owed to GMAC when the lease is up if I walk away.

I could either do that
- continue with the lease and when it's up finance $10k or $12k, I can't remember the exact number
- pay $9469.34 right now and walk away
- buy the car now for $17,454(I'm not sure how to go about that)
- trade it in and let some rebates eat up the upside down portion and finance a newer vehicle
- whatever else the Dodge guy(or any dealer) can come up with.

These are the options I have right now.



Or, option J - buy a car for around $3K and drive that. Sure, you have two vehicles and the expenses associated with that, but on the beater you don't have to have anything more than liability insurance. I've seen $3K cars that were amazingly good cars. Drive the beater for the majority of your work travel and then then the nice car on weekends and evenings.

[1stTimeCaller]

thanks, you have been most helpful.

I don't have to do this right away and I really don't want to trade it in and then pay tax and tags and crap on a new one.

Just looking for the best way out of a bad situation I got myself into.

Thanks for the different viewpoints and ideas.