Author Topic: Buying out car lease  (Read 1049 times)

sixkids

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Buying out car lease
« on: January 17, 2017, 08:15:13 AM »
Cliffs notes version--  I am trying to reduce outgoing monthly expenses. I've got a 2008 impala I drive and I leased a 2017 chevy traverse for my wife about two months ago. My car will be paid off this month and exchanged for a mistachian car for my daily 40 mile commute and I'll get cash back from the exchange. I was advised to try to get out of the wife's traverse, and I have that option, but I need to know if it's worth the cost. It won't be cheap.
I can trade the traverse in for about $20,000.  Lease buyout is $26,235 so I'd have to pay $6,235 to get out from under this $360 lease payment. If I do this, I would be getting a 2013 or 2014 Nissan NV or chevy express passenger van for about $15,000.  With that, paying the $6235 negative equity and just financing the balance, I would be able to lower my payment from the leased $360 to a purchase payment of $250 for 72 months at 3%.
It's cheaper per month and I could theoretically pay the $250 plus my old impala payment at it and pay it off in 2 years if I also put bonuses and stuff toward it.
My concern is paying this $6235 to get out of the lease two months into it. That makes this traverse a BERY expensive short term lease. Is it worth doing that for the greater savings, or is that just stupid?

GreatNateVIII

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Re: Buying out car lease
« Reply #1 on: January 17, 2017, 08:27:32 AM »
For a 100 dollar savings you won't recoup the benefit for 60 months. Even owning the cheaper vehicle still doesn't make this a good deal.

What I would do is two things (I speak from experience having made the lease mistake in my past):
1) Eat the $6K and purchase a cheap cash car, no monthly payments!
2) Wait a year. I don't prefer this option but every lease payment reduces the payoff. After a year you might get out for only 2-3 thousand and go for a cheap mustachian ride. 

Either way getting out of the lease for 6K to get in another car loan makes little sense to me.

meghan88

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Re: Buying out car lease
« Reply #2 on: January 17, 2017, 09:25:37 AM »
Have you looked into Leasebusters or other sites that could maybe match you with someone who wants to take over the lease?

sixkids

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Re: Buying out car lease
« Reply #3 on: January 17, 2017, 10:22:08 AM »
I briefly looked at swapalease. I'm not sure it would work since the lease is so new. Someone could lease a 2017 traverse brand new for the same $360 payment I have and only be on the hook two additional months. I think I'd have to offer a heck of an incentive and even then, I'm not sure.