Turning in a lease

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So almost three years ago we leased a car (never again). I wasn't familiar enough with the process but the wife wanted a car that day so we got it. Happy wife, happy life, right?

Anyway, we are due to turn it in within two or three months. As I understand it there are some options for turning it in:

1) Turn it in to a dealer of the manufacturer and that is it. Pay for any mileage overages or dents, etc.

2) Trade it in at a dealer of a different make for a different car. We would owe the difference between the residual on the lease and what it is worth on trade. I'm not sure how the paperwork would go down in this situation.

3) Buy it for the residual (or a lower negotiated price with the manufacturer's credit arm). We aren't going to buy it.

Am I missing anything? Or misunderstanding anything?

The vehicle we would like to buy to replace the 2013 Elantra is a 2011ish Ford Edge SEL. If anyone has any comments on that car those are welcome.
 
Are you over mileage and and do you have a lot of damage?

I would just turn it in and go somewhere else unlkess your current residual is WAY WAY above actuary.
 
I'm just looking to make sure I'm understanding the process correctly and what my options are. So comments on the things 1-3 I listed above would be great.

Over mileage about 10,000 at 20 cents per mile. No damage really, it is in great shape.
 
I really don't think #2 is possible. You can't trade in a car that you don't own and I don't think the new/different car dealer is going to do your lease return processing.
 
You can usually buy the same car, used, right off the dealer lot for less than buying the car you leased from the leasing company. Leasing companies ask higher prices to take advantage of those turning in a car with excess miles or damage. You'll pay for it either way. They also, I suspect, think if you want to buy it the car must not be a dog.
 
You can usually buy the same car, used, right off the dealer lot for less than buying the car you leased from the leasing company. Leasing companies ask higher prices to take advantage of those turning in a car with excess miles or damage. You'll pay for it either way. They also, I suspect, think if you want to buy it the car must not be a dog.
 
You could have negotiated your residual value when the car was brand new before the contract was signed. Now, it's unlikely. If you do trade it at a 3rd party dealer, the dealer will pay off your residual and roll that into your new loan, and they'll have paperwork for you to assign them that "right" under your lease contract. They would basically have to love your car and not want to bother getting it or one like it at auction. I've never heard of it, but with money all things are possible.

If you had some SUV and gas jumped, the actual value would be thousands less than your residual, so you'd be a fool to take it. The leasing company knows this and might send you a letter saying, hey, here's a "special", take $500 off your contracted price if you love your truck so much and want to buy it.
 
I went through this with my jeep. I ended up buying it. They want no chips or cracks in the glass. 4 new matching tires and they get exorbitant pricing on and dents and scratches.

Seemed stupid to pay them $6000 to turn in my jeep vs buying it for $7500.
 
Originally Posted By: wallyuwl
I'm just looking to make sure I'm understanding the process correctly and what my options are. So comments on the things 1-3 I listed above would be great.

Over mileage about 10,000 at 20 cents per mile. No damage really, it is in great shape.


Some leasing companies let you pay for excess mileage in advance instead of at the end of the lease and it's cheaper than paying at the end of the lease. Not sure if you have that option.

Never really heard of them negotiating the residual value at the end of the lease. Normally if the residual is higher than the book value, you buy it and sell it on your own and pocket the difference. If it's less than book value, you just turn it into the dealer.

Leasing can make sense on more expensive vehicles where there's a high residual value and you don't end up tying up that much money which could yield higher returns elsewhere.
 
For my Toyota, I can walk away and pay 400 dollars.

Or I can buy the truck out for 17,500. This was a predetermined amount at start of lease.

I will pay the 400 bucks and buy a car for under 10 grand.

I pay 199 per month and 999 down, plus tax and tag.

24 month lease 12k miles per year.

I probably would not do it again unless I ran into more disposable income.
 
If you hated the car, turn that thing in, pay the extras and wash your hands of it. Then you can start all over with the car of your choice (at least your wife's choice)
smile.gif
 
Originally Posted By: barkingspider
If you hated the car, turn that thing in, pay the extras and wash your hands of it. Then you can start all over with the car of your choice (at least your wife's choice)
smile.gif



This is what I'm thinking we'll do. I have heard of option 2 occurring, but have no idea of the logistics of it. I have also heard of negotiating the buy out price at the end of the lease (if the value was less than the residual), with Toyota anyway.

The car has some brake problems that the dealer won't even look at (major grinding noises since new, especially in wet weather). There is also a tire noise they wouldn't even rotate the tires to see if that would fix it. Both Hyundai dealers in town had this attitude. Plus the car just has a general cheap feeling to it. Engine started becoming loud (valves I think) at around 20,000 miles.
 
I've actually heard of #2, especially if the value of the car at the moment it is turned in is higher than the residual value.. THe new dealer simply buys the car out. Also yes, some companies will negotiate the buyout price. You can easily make a phone call and ask.
 
Last edited:
Originally Posted By: wallyuwl

The car has some brake problems that the dealer won't even look at (major grinding noises since new, especially in wet weather). There is also a tire noise they wouldn't even rotate the tires to see if that would fix it.


forgive me for being coy, but that sounds like your abs going off from driving too fast in wet weather.
 
Originally Posted By: cptbarkey
Originally Posted By: wallyuwl

The car has some brake problems that the dealer won't even look at (major grinding noises since new, especially in wet weather). There is also a tire noise they wouldn't even rotate the tires to see if that would fix it.


forgive me for being coy, but that sounds like your abs going off from driving too fast in wet weather.


That isn't it. It happened regardless of speed before in wet weather. Now it happens in dry conditions as well. It is a problem with the pads or rotors and neither local Hyundai dealer will look into it.
 
My last leased vehicle was a 2012 Subaru Legacy. It was a 3yr/45Kmi lease. I turned it in 9mo early with 39K miles on it, with used snow tires. I liked the vehicle very much, I just didn't want to buy it outright and I didn't want to keep it 'till the end, which would have required new tires, most likely some brake work and potentially having to pay for the mileage overage, which would have been a bit.

I did some research, knew they had a vehicle on the lot that I wanted, so I got a sales person and said 'If you take my lease, I'll buy the vehicle over here'. Transaction complete in a couple of hours.

My point is, use your lease to your advantage. Any dealer/make/model will grab it up from you for the right deal.
 
Rust on rotors? Does this have alloys with big openings, parked near a road? My VW makes lots of noise until the rust is worn away, if I don't drive it a lot. Not that it matters much, not since you are getting rid of it.
 
Originally Posted By: JTK
My last leased vehicle was a 2012 Subaru Legacy. It was a 3yr/45Kmi lease. I turned it in 9mo early with 39K miles on it, with used snow tires. I liked the vehicle very much, I just didn't want to buy it outright and I didn't want to keep it 'till the end, which would have required new tires, most likely some brake work and potentially having to pay for the mileage overage, which would have been a bit.

I did some research, knew they had a vehicle on the lot that I wanted, so I got a sales person and said 'If you take my lease, I'll buy the vehicle over here'. Transaction complete in a couple of hours.

My point is, use your lease to your advantage. Any dealer/make/model will grab it up from you for the right deal.


Hmmm... interesting. Can you PM me the details of the transaction, mostly I'm interested in the process and what was involved paperwork wise.
 
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