The bank is buying the car and renting it to you. Even though you may be paying 40% of the purchase price, you still owe the other 60% - it's just that you're paying it back by giving the car back. If you can find someone to buy the car before the lease term expires- you're simply paying that 100% now.
The only thing you can't do, is stop making the payments /try to turn the car in (terminate) early. As expected in any contract, would have some cost associated to it, as it should.
That only applies at lease turn in. Even then, a lot of times if you're leasing a car from the same manufacturer they will waive over mileage fees.
Additionally the only time mileage matters in a lease buy out or trade in is in the case of a bank not financing you because the car has over 100k miles, or you might have a higher APR in an event such as that.
the fee only applies if you turn it in with overage. if you keep the car or buy it out, sell it to another dealer (tradein) then you don't have to worry about being over on the mileage. same goes for if you have positive equity in the vehicle, lets take my odyssey for example, end of lease purchase price is about $18,000.00 if the Van is worth $27,000 i can go over in miles if I "trade-in" the vehicle 2-3 months before lease end. most of the time a dealership will "buy" the vehicle and relist it for more than what they paid for it, you are happy b/c the mile overage is forgiven, they are happy b/c they bought a car at wholesale and can easily sell it for $18,500-$27,000 (just making up numbers)
however if you turn it in with 60,000 miles (with a 45,000 allowance) then everyone loses out.
i didn't say 100% i was going to, if i have a family member (cousin with a baby) who wants it i will, if not i'll probably give it back, negotiate my monthly down to $366 again and walk away with a 2015 odyssey.
however in 3 years if the van is worth 28k, and wholesale it goes for $22+ i'd buy it and flip it (with 5k in my pocket) or trade it in to a dealership (let them make the payoff and use the positive equity to subsidize another lease)
sigh, so we have a hiccup with the paperwork, they screwed up the NYS tax rate (used 8.6% instead of 8.875%) and didn't include a fee for the plating company (3rd party) to get paid. can i have them keep the existing contract and just pay $300.00 (total cost) out of pocket, or will they need to redraft the leasing agreement to include those charges?
everything is legit, but the hiccup is on their end, they screwed up the tax rate which means they will underpay the state the tax and risk having an accounting issue. the plating company i guess needs to be paid (on paper)
i don't know its really baffling. dealing with an out of state dealer is difficult as they have only sold 1 car out of state before and I am the second round guinea pig. for the potential savings and the great customer service im willing to accept these issues.
Last edited by dieselraver; 10-11-2012 at 02:57 PM.
.... and now my car sales guy quit!!! the plot thickens. a guy he trusts and has been there a while has all my info and will be helping me with the same deal...... waiting for his phone call sigh
and this gets better!!
so my new sales guy is no longer helping me, the original guy that helped me was the internet sales guy, he basically got paid for bringing leads into the dealership, well he finally got bumped up to sales guy and now he took over my deal!! Thank God i have someone who is finally competent! I may actually get this van! i've never had so much trouble trying to buy a vehicle. usually dealerships throw the keys at me
Seriously!!! I called the finance guy today b/c i had a feeling he was stopping this from going forward, he was like, "are you going to bring your car in for service here?" (they are 180 miles away) I said of course (not lying) my sister and close family live near by so it would give me an excuse to come visit them.
I am a firm believer in supporting the dealership that gives you a deal on the car even if it means traveling great distances (my Subaru was purchased out in riverhead Long Island about 80 miles each way and i religiously go to them)
So I also tack on that I need a Civic or Accord for cheap, my mother is going to need a car come march and yada yada (all truths)
All said and done, he says I will have this car plated by the end of the month 100%
I really am not in a rush to buy the van but in all honesty not knowing what was going on sort of drove me a bit nuts. I even said to them, usually its the dealership pushing me to buy the car, not the buyer pushing the dealership to sell it.
I'll let TCL know in 2 weeks whether I have this van or not.
Someone in NJ got a deal on a EX-L with navi almost at the same capcost as mine.... except he traded in a leased 2009 MDX and got the taxes and fees paid in full with the 3k equity.... (not really a good deal if you ask me!)