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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Gbologna7 on August 20, 2018, 03:20:48 PM

Title: Thinking about ending my Lease. Advice please!
Post by: Gbologna7 on August 20, 2018, 03:20:48 PM
Hello everyone. Unfortunately, in late 2016, i felt it would be a good idea to lease a 2017 Ford explorer. Since then i have found this and other finance blogs and have finally seen the light. Im thinking about trying to get out of my lease early. Was wondering if anyone reading this has any knowledge on car leases or could give me any advice on how to go about it or if i should just wait it out until the lease is up and chalk it up to a learning experience.  From what i read the best two ways to get out of a lease early without paying huge fee's is to use a site like lease swap or to just buy it outright and then sell it. 

about the lease.

start date: Nov 2016
end date:  Nov 2019
Progress: 61% finished paying on lease
Sticker price: $41,000ish
Current buy out price: $29,989
buy out at lease end: $23,352
monthly payment : $456 (14 payment left @ 456/month = $6,384)
Miles on car: 11,500
Condition= Excellent

I believe this is all the pertinent information. Any advice from people who found themselves in similar situations or with leasing knowledge would be greatly appreciated.  Thanks
 
Title: Re: Thinking about ending my Lease. Advice please!
Post by: red_pill on August 20, 2018, 08:42:50 PM
What is the estimated value that you could sell it for?
Title: Re: Thinking about ending my Lease. Advice please!
Post by: lbmustache on August 21, 2018, 01:09:08 PM
What is the estimated value that you could sell it for?

I would guess based on the sticker price this is a Limited trim model... looks like KBB puts the value of that trim level almost right at the buy out price OP listed. Meaning OP might gain a little money, break even, or lose a little bit, but nothing catastrophic (I would guess <$1k, and then add the early termination fee to that).

I would try to sell the car to a dealership, Carmax, etc. They will deal with all of the paperwork for you and it's much less hassle vs private party.
Title: Re: Thinking about ending my Lease. Advice please!
Post by: Linea_Norway on August 22, 2018, 06:18:27 AM
What is the estimated value that you could sell it for?

I would guess based on the sticker price this is a Limited trim model... looks like KBB puts the value of that trim level almost right at the buy out price OP listed. Meaning OP might gain a little money, break even, or lose a little bit, but nothing catastrophic (I would guess <$1k, and then add the early termination fee to that).

I would try to sell the car to a dealership, Carmax, etc. They will deal with all of the paperwork for you and it's much less hassle vs private party.

When selling a car as a private person, you often get much less for it than the sales price in a shop. Have you seen ads for similar cars, sold by private people?

Do you need this type of car (size and fuel consumption)? If so, then maybe it is a good chance to buy your own car. Then you have a second hand that you know the exact condition of. And you can continue to drive it for many years.