What's the best way out of a lease?

[BlueDubbinTDI]

Whats the best way out of a lease? I'm not in dire need to bail out of this car my any means, I just feel like I should be spending my money more wisely (I.e pay like 6k cash for something else instead of the 130 insurance and 324 payments I'm making now). I feel like buying out and trading in would instantly lose me like 3 grand minimum. I have all the stock parts but it's far from stock, would getting someone else to take my lease even be possible you think? Thank for any input.

[SloS14]

[soundman98]

and here we have a prime example of why leases are typically a win for the car company and a loss for the customer...

really, you just need to read through the lease agreement to see what options it allows for..

[BlueDubbinTDI]

Originally Posted by SloS14

Eh maybe. They gave me a trade in of about 2 grand more than they should have to get me out of that car free and clear, so I jumped on it. Maybe the dealer did me a favor maybe not. Either way, I just wish insurance and payments together were about $150 cheaper. Live and learn. It's really not the end of the world.

[BlaineWasHere]

Why does this car attract so many buyers that can't afford cheap new cars?

[BlueDubbinTDI]

Jesus I can afford it. That other thread just made me realize it's financially stupid, but so is buying a brand new car anyway

[Rayme]

yea. even if you had bought the car you would loose just as much. If you have to lose 3000$ once done, it ain't that bad.

I would buy out your lease and do a private sale if I were you. I remember reading my lease agreement and it says you can buy the car anytime.

[BlueDubbinTDI]

Originally Posted by Rayme

yea. even if you had bought the car you would loose just as much. If you have to lose 3000$ once done, it ain't that bad.

I would buy out your lease and do a private sale if I were you. I remember reading my lease agreement and it says you can buy the car anytime.

Yeah you can but I think I'm like 24k out the door still which BLOWS but hell, taxes are taxes. There are websites that help with lease takeovers. But since it's not stock that might be a challenge. I'll give it some more thought. Thanks guys.

[BlaineWasHere]

Just eat it. I was ready to toss $25k away forever when I bought this car. I love cars more than anything in the world but I understand it's expensive as hell.

[Darkrune]

Sell your lease to someone else plus cost of depreciated mods. See if your lease is transferable first, of course.

Sent from my SCH-I435 using Tapatalk

[BlueDubbinTDI]

Originally Posted by Darkrune

Sell your lease to someone else plus cost of depreciated mods. See if your lease is transferable first, of course.

Sent from my SCH-I435 using Tapatalk

Yep this was my next step. But really news got better. My fiancés student loans start 6 months later than I thought, nearly making it out of this lease before they start. I'll be more responsible with my next purchase. ..but the 2015 GTI will be out by then...ugh!

[ashtray]

That's the problem with leasing a car - you got payments. When the payments stop, you got no car. Last new car I bought (WRX) I paid off in 4 years, and then drove the next 7 without a car payment. Well, without a car payment on THAT car. Leasing is nice if you want a new car every few years and never want to get into the maintenance/repairs scene of higher mileage cars.

There's certainly ways out of your lease, but look at it this way: the car depreciates FAST in the first week you own it. Drive it off the lot, lose $1k. Then the rate of depreciation tapers off - though the first three years are higher than the next three. So within your lease period, you have a fixed monthly payment. That payment is "cheap" at the start of the lease as your car is depreciating faster than your lease payment, but then gets expensive towards the end - as your car isn't depreciating as much as your payment is.

With that in mind, why would someone take over a lease on a used car for a year at $350/mo, when they can lease a new car for $350/mo?

The economics of the lease transfer would dictate that the original owner would lose any down payment. If no down payment was made, then the person may have to pay someone to take over their lease. Also depends on the mileage and condition. If you're tracking to exceed the lease mileage, you have to pay the next guy for your overage; while if you're under on usage, then you can get a credit for that. Ie - if you have 10k miles on your car it's worth more than if you have 25k miles. If you have 30k miles on it and the lease was for 3 years/36k miles and there's 1 year left on your lease, then it's going to cost you to get out of that lease.

There's a lot to it - but you have options:
- Go through a 3rd party that handles lease buyouts.
- Buy your car out of the lease - get a 5yr loan from the bank and your payments might even go down, depending on the interest rate.
- Trade the car in on something else. Find out from your insurance company how much the new car will cost to insure so there's no surprises.

Lots of people lease cars - hindsight is 20/20. For some people leasing was the right financial choice, and for others buying would have been better. Best to think ahead when deciding either route, and not just focusing on the short term.

[LXXXV1]

Originally Posted by ashtray

Lots of people lease cars - hindsight is 20/20. For some people leasing was the right financial choice, and for others buying would have been better. Best to think ahead when deciding either route, and not just focusing on the short term.

This is what I try to tell people when they find out I lease...I went in to my lease with a lease to buy mentality. People keep telling me I'm wasting money and that's the dumbest option. I did extensive research before I signed my paperwork and made sure I got all my numbers from my dealer before I picked the most favorable option in terms of lease/finance/down payments for ME. I also made sure I spoke with my insurance agent to get me a quote and even made sure I had a binder (temporary coverage when buying a new car) ready before I even signed my paperwork. Number crunching is easy for me so I already knew what I was comfortable paying monthly AFTER calculating insurance.

Why did I lease my car when I could afford the finance? Because my daily commute is 10 miles round trip to work/gym/home and I have a bike. And the fact that I only put 6k on my previous car in the 1.5 years I owned her...I knew the I'd end up even(or even profit in terms of Toyota's residual value), after my lease to buy. $350/36 months felt better than $550/60 months. Leasing would also avoid a bigger down payment, which I had, but I notice this generation favors the cash in hand type. Lease to buy also kept me from extensively modding the car too soon as I tend to get out of control when it comes to mods. And another pro! If they ever do turbo the 86 anytime soon, I can swap easily. If they come out with a turbo next year, my lease also gives them 2 years to perfect the turbo'd version. Same reason I didn't want to buy the 2012 86...let the issues/solutions and aftermarket mods come out first.

Everyone has their reasons. GL with getting out of that lease though. Sub'd in case I ever feel the need to leave mine but I doubt it lol. I love my monogram, especially after reading about the RS 1.0!

[Celica00]

Originally Posted by BlaineWasHere

Why does this car attract so many buyers that can't afford cheap new cars?

probably because its a scion brand which is designed to attract college age kids and that age group has extreme inconsistencies w/ finances.