Would you extend Lease?

[Knightrofins]

The lease is up in my wife's car in a few months. I think we had a 39 month lease?

She isnt exactly sure what she wants and we heard that if we want something, we may have to wait weeks if not months for the car to arrive.

She was told that she is allowed to keep her existing car for another year and make the same payments for the next year. We would be allowed to return the car at any time within that year.

Currently, she wants to do that.

My question is, arent we losing money by renewing this lease for another year? Why make the same payments in months 40-51 than we did in months 1-39? If we wanted a 51 month lease, our monthly payments would have been lower.

What am I missing here? Am i not seeing something?

 

[bigbet1234]

You lost money the minute you leased a car. Lol

 

[PatsFan1283]

If it is a purely financial decision then yeah you should extend the lease and see what happens in a year.

Yes, it is not ideal. But no car/lease purchase situation is going to be ideal right now given supply/inflation stuff. Just kinda bite the bullet and kick the can.

 

[Knightrofins]

If it is a purely financial decision then yeah you should extend the lease and see what happens in a year.

Yes, it is not ideal. But no car/lease purchase situation is going to be ideal right now given supply/inflation stuff. Just kinda bite the bullet and kick the can.

yeah, its purely a financial decision here. I'm just stubborn and it bothers me that i didnt get the "best deal" as i could have been paying less for these past 3 years.

Also, i dont a have a clue how much cars are going for these days (that we are interested in) and i'll probably have sticker shock

 

[Michelangelo]

Do you have a purchase option?

Check that option against the car's value on the used car market. You may be surprised that you are sitting on a nice potential profit.

 

[Knightrofins]

Do you have a purchase option?

Check that option against the car's value on the used car market. You may be surprised that you are sitting on a nice potential profit.

I am certain that we do.

The problem is if we sell the car and do not have a car for her to drive (being on back order), then we are down to 1 car.

We also plan on taking a road trip this summer with that car before we give it up to burn off some miles. Due to "restrictions", we havent done as much driving in that car in the past 2 years as compared to previous years

 

[Bruins4Life]

Just bought out my wife's leased car.
3 years, and it only had 21,00 KMS. Thats 13,00 miles.

Guy at the dealership: "I can put you in a new car with the same payments".
Me: And sell this one for 10k more than the price of a buyout.

No brainer, given the low mileage.

 

[Willie99]

You lost money the minute you leased a car. Lol

Leasing and / or buying a car is not an investment, it's a personal preference

 

[Willie99]

Making a coupler of months of payments not a bad option, makes it easy as you wait for your new car in Biden's America

As Mikey said above, you might make money buying out your lease and then selling your vehicle, I did

 

[azbob]

Make sure the turn in fees are not impacted in a negative way by extending the lease. Many people do not figure that into the calculation when leasing which makes the deal even worse for the consumer. Just like you would with buying a car, make them an offer for the monthly payment going forward with the plan that you will walk away if they don't meet your price.
Unfortunately, not a lot of customer leverage right now for car trading/extending/buying. Not sure if the skyrocketing pricing is due to covid or Putin as Biden hasn't made that choice yet for cars and car rentals.

 

[JackStraw77]

I have a leased car that is due to return in June. If I buy the car I can sell it and turn a profit of $3000-$4000 because used cars are in such demand. New cars are going for above sticker because of the chip shortage. I'm in a quandary because even though I will pocket a profit I will get ripped off on my next lease. I could keep the car after I buy it but I prefer something new. One thing I can't do is return the car to the dealer. I am not giving up the profit. They are contractually obligated to sell me the car at the buy out price on the lease. It has always been a horrible deal to pay that price until now when the market is upside down. They do gouge you with document fees of $499 and license and fees of $433. Nothing you can do about it because the state permits them to rob you. You also have to $300 fee to buy the car and a brake and frame inspection for $300. Another scam but because the car belongs to them not you and they can charge you for it. It's simple. If you don't want to pay all those scam fees return the car. The profit is legitimate and that is what you can actually make selling the car to Carvanna or WeBuyAnyCar. They want your car. They will turn around and put it on lot for $4000 more than they give you and earn money the same way. With bullshit fees and financing.

 

[azbob]

I used Carvana to sell a car and it was a great experience. Everything on time and professional and a very good offer.

 

[Knightrofins]

Update. We went to the dealership today.

if we return the car and get the newer model (car still needs to be made and leave the factory in the next 3 weeks) then our payment will be $200/mo higher.

they are giving us $1,800 in which we’ll put toward down payment. They will sell us car at MSRP (gulp) and cannot do better

don’t want to get into details but we are NOT extending the lease (long story but makes sense)

now we are debating between a 36 month lease or a 72 month purchase at 2.99%

just sucks that my piggy bank is gonna take a dump

 

[MAGAking1]

Update. We went to the dealership today.

if we return the car and get the newer model (car still needs to be made and leave the factory in the next 3 weeks) then our payment will be $200/mo higher.

they are giving us $1,800 in which we’ll put toward down payment. They will sell us car at MSRP (gulp) and cannot do better

don’t want to get into details but we are NOT extending the lease (long story but makes sense)

now we are debating between a 36 month lease or a 72 month purchase at 2.99%

just sucks that my piggy bank is gonna take a dump

YOu could always trade in your other vehicle