End of Lease, what to do?
10-02-2008, 11:23 AM
#1
Senior Member
Thread Starter
Join Date: Jun 2003
Posts: 256
End of Lease, what to do?
What would you do?
I have a 2005 Max SE. Black w/ gray leather interior. 6-speed. Stock suspension, Bose radio/CD, etc. My lease is up in five months. I am within the mileage limits for the lease. (41k miles now. Lease was set up for 15k miles per year.) Sunroof. Just put new tires on the car (the cheapest I could find... Falkens).
Good things: the car drives pretty well, handles pretty well, is very roomy. I know the history of the car. Never had any maintenance issues. Car was in a tiny fender bender the first year that got it new bumpers and a new hood. Car looks good. Leather and carpets are clean, though I need a new floor mat for the driver's side. (Heel on the clutch foot wears a hole in the mat fast.) It's a great road car for long trips with four adults.
Bad things: not in love with the 6 speed. I don't like the close-ratio shifting, and it's clunky -- nowhere near as smooth as the five speed in my old Infiniti I-30t (4th gen.). Hate the weak-*** paint. Tiny chips and scratches everywhere. (Was told that lead-free paint is not as strong as the old leaded paints.)
I've never modded the car nor upgraded the stereo because it's a lease. Would love to de-badge the trunk, improve the head unit, maybe drop her an inch or two. ($$$$).
I think the purchase option next March is around $18k, but I'm already seeing 2005 Maximas on Craigslist for less than that, with similar features and mileage. But I don't know those cars or their histories.
Options:
1. Drop the car off in March. Lease a new car. (And at end of lease, have nothing to show for it, but I did drive a nice new Infiniti or Max for 42 months. No mods.)
2. Buy this car, because I know it and think it's reliable. At end of three or four years, I will own it outright, which gives me some value. Monthly payments would be about the same as my lease payment now. Could put some money into the suspension and stereo because now I own the car.
3. Turn in the Max, buy a different used car for about the same as my current lease payments. Get a car I don't know, but still have equity value once the payments are done.
Disadvantages to turning in the car are whatever the dealer might try to stick me with. Who has experience turning in a lease car and walking away? I've heard they try to charge you for every ding and scratch on the car. Is it a huge hassle?
That gives another option:
4. Trade the car in early on a new lease. That means the dealer would agree to buy my car and payoff the lease (with no future hassles about door dings). I'm in a new ride, but I'm still leasing. I would prefer an Infiniti. The new Maximas look great, but the interior is smaller than my '05, so why not get a G?
I have a 2005 Max SE. Black w/ gray leather interior. 6-speed. Stock suspension, Bose radio/CD, etc. My lease is up in five months. I am within the mileage limits for the lease. (41k miles now. Lease was set up for 15k miles per year.) Sunroof. Just put new tires on the car (the cheapest I could find... Falkens).
Good things: the car drives pretty well, handles pretty well, is very roomy. I know the history of the car. Never had any maintenance issues. Car was in a tiny fender bender the first year that got it new bumpers and a new hood. Car looks good. Leather and carpets are clean, though I need a new floor mat for the driver's side. (Heel on the clutch foot wears a hole in the mat fast.) It's a great road car for long trips with four adults.
Bad things: not in love with the 6 speed. I don't like the close-ratio shifting, and it's clunky -- nowhere near as smooth as the five speed in my old Infiniti I-30t (4th gen.). Hate the weak-*** paint. Tiny chips and scratches everywhere. (Was told that lead-free paint is not as strong as the old leaded paints.)
I've never modded the car nor upgraded the stereo because it's a lease. Would love to de-badge the trunk, improve the head unit, maybe drop her an inch or two. ($$$$).
I think the purchase option next March is around $18k, but I'm already seeing 2005 Maximas on Craigslist for less than that, with similar features and mileage. But I don't know those cars or their histories.
Options:
1. Drop the car off in March. Lease a new car. (And at end of lease, have nothing to show for it, but I did drive a nice new Infiniti or Max for 42 months. No mods.)
2. Buy this car, because I know it and think it's reliable. At end of three or four years, I will own it outright, which gives me some value. Monthly payments would be about the same as my lease payment now. Could put some money into the suspension and stereo because now I own the car.
3. Turn in the Max, buy a different used car for about the same as my current lease payments. Get a car I don't know, but still have equity value once the payments are done.
Disadvantages to turning in the car are whatever the dealer might try to stick me with. Who has experience turning in a lease car and walking away? I've heard they try to charge you for every ding and scratch on the car. Is it a huge hassle?
That gives another option:
4. Trade the car in early on a new lease. That means the dealer would agree to buy my car and payoff the lease (with no future hassles about door dings). I'm in a new ride, but I'm still leasing. I would prefer an Infiniti. The new Maximas look great, but the interior is smaller than my '05, so why not get a G?
10-02-2008, 12:15 PM
#2
Member who somehow became The President of The SE-L Club
iTrader: (19)
Join Date: Jun 2001
Posts: 16,033
Turn it in and walk away. Sounds like it's in excellent shape, you should have no problems at all.
It's never, I repeat NEVER a good idea, financially to buy your lease out, unless your way over the mileage. You can turn it in and pick up the same exact car used, cheaper then your buy out is. You already said you see them up on craigs list, so there's your answer.
It's never, I repeat NEVER a good idea, financially to buy your lease out, unless your way over the mileage. You can turn it in and pick up the same exact car used, cheaper then your buy out is. You already said you see them up on craigs list, so there's your answer.
10-03-2008, 01:05 PM
#6
Never hand your car in and buy a used one for slightly less, you know everything about your car, giving it back for a used car with an unknown history is not a smart move, I have had several friends who traded cars only to have to fix the problems of the previous owner, and the money they thought they where gonna save was spent, plus some
I bought my lease
here is what I would do, stop leasing, it's nothing but renting a car that your fully responsible for, only to then hand it back and be without a car so now your at step one again trying to find a car with all the same options and features for that same monthly payment, leasing is good for those who have secure careers and more then enough disposable income
Simple put most cars are not worth the money after 6 months, usually after 6 months you at the point where the cool factor is gone and now your stuck with your monthly payments.
Come up with an extra 10-15k, buy the car over 48-60 months, and enjoy it and don't worry, you have more equity in owning then leasing
I bought my lease
here is what I would do, stop leasing, it's nothing but renting a car that your fully responsible for, only to then hand it back and be without a car so now your at step one again trying to find a car with all the same options and features for that same monthly payment, leasing is good for those who have secure careers and more then enough disposable income Simple put most cars are not worth the money after 6 months, usually after 6 months you at the point where the cool factor is gone and now your stuck with your monthly payments.
Come up with an extra 10-15k, buy the car over 48-60 months, and enjoy it and don't worry, you have more equity in owning then leasing
10-04-2008, 04:47 AM
#7
Newbie
Join Date: Oct 2007
Location: Philadelphia, PA
Posts: 66
I would say hand it in. Do not buy it out because the car is not worth that much. When I leased my car the sales person even told me that when I return the car not to buy it out Because the car is not worth it. Ifyou really love the car just wait it out. What I mean is hand the car in and then in 2-3 days go back up to the dealer and see if they put the car back on the lot as a used car. Thats is what they always do. Especially now a days when used cars are selling more then newer cars. (blame it on the economy). When you go back up there you will see that the car is not even advertised for that 18,000 that they wanted you to pay. Then you can outright buy it.
10-04-2008, 06:11 PM
#8
Member
Join Date: May 2007
Location: ATL from BOS
Posts: 214
If you decide to buy it out, be careful of potential dealer service fees for handling the sale paperwork.
A lease is just a bank loan in disguise. The sooner you start owning cars, the better off you will be in the long run.
A lease is just a bank loan in disguise. The sooner you start owning cars, the better off you will be in the long run.
10-04-2008, 07:55 PM
#10
This Space for Rent
Join Date: Oct 2007
Location: Phila., PA
Posts: 339
back in 03, i lease an Acura TL Type-S. the car stickered for about $33K and i leased it for $400/mo for 4 years. i kept the car as if it was 'mine'. maintenance, constant detailing and in perfect shape with the exception of a ding on the right front fender and 2 small scuffs on the rear bumper from some azzclown tapping the car while parked.
either way- at the end of the lease, Acura sent an independent 'inspector' to my house to check the car out. the factory gave me a $1500 'wear and tear' allowance which basically covered any cosmetic repairs (and tires) up to $1500. the only stipulation was that the allowance couldnt be used on one thing (ie- a door being smashed in and costing $1500 to fix). the inspector wrote the 'damages' at $600 on my car, recorded the mileage and gave me a receipt.
i inquired about buying the car at the end of the term. however, Acura's price was set- they refused to negotiate. so i simply drove it to the closest Acura dealer, handed the receipt and keys to a salesman and left. that was it.
having said that, i dont think that i would ever lease another car again (or buy a brand new car for that matter). while i really enjoyed having a brand new car, the new-ness wears off, the novelty wears off but the payment (rental fee, basically) remains the same.
also, i was way UNDER the mileage allowance. the limit was 48K miles and i returned it with about 34K. reason being was that for almost during the entire term of the lease, i had a motorcycle issued to me for work.
either way- at the end of the lease, Acura sent an independent 'inspector' to my house to check the car out. the factory gave me a $1500 'wear and tear' allowance which basically covered any cosmetic repairs (and tires) up to $1500. the only stipulation was that the allowance couldnt be used on one thing (ie- a door being smashed in and costing $1500 to fix). the inspector wrote the 'damages' at $600 on my car, recorded the mileage and gave me a receipt.
i inquired about buying the car at the end of the term. however, Acura's price was set- they refused to negotiate. so i simply drove it to the closest Acura dealer, handed the receipt and keys to a salesman and left. that was it.
having said that, i dont think that i would ever lease another car again (or buy a brand new car for that matter). while i really enjoyed having a brand new car, the new-ness wears off, the novelty wears off but the payment (rental fee, basically) remains the same.
also, i was way UNDER the mileage allowance. the limit was 48K miles and i returned it with about 34K. reason being was that for almost during the entire term of the lease, i had a motorcycle issued to me for work.
10-04-2008, 08:58 PM
#12
Member
Join Date: Apr 2007
Location: Bklyn NY
Posts: 119
i would only buy the car if i was way over mileage and had to pay a high price for this and secondly if you go back to the dealer you will not see your car on there used car lot because nissan or which ever finance company would sell the car back to the dealer for way too much and they would never buy it except if someone is willing to purchase the car at the high price. I work for a caddy dealer so i know, at work only very few times we would buy a car from the bank to resell it because the dealer can go to the dealer auction and pay a lot less for the same car. Ex, if the banks wants 18k for your car the dealer can go to the auction and buy your car for atleast 14 to 15k. So do your research well.
10-06-2008, 06:27 AM
#13
Senior Member
Thread Starter
Join Date: Jun 2003
Posts: 256
This is all good information, thank you.
No, I'm not tired of the car. I listed almost all of my complaints in the first post. I, too, have used synthetic oil since the first change at 1k miles on the assumption I would own the car at some point. If I know I'm going to own the car, there are other things I would do to make the car even better. (Love that blue LED interior mod from the other thread, for example.)
No, I'm not tired of the car. I listed almost all of my complaints in the first post. I, too, have used synthetic oil since the first change at 1k miles on the assumption I would own the car at some point. If I know I'm going to own the car, there are other things I would do to make the car even better. (Love that blue LED interior mod from the other thread, for example.)
10-06-2008, 10:14 AM
#14
NINE-time Maxima Owner
Join Date: Jan 2003
Location: Charlotte
Posts: 680
i would only buy the car if i was way over mileage and had to pay a high price for this and secondly if you go back to the dealer you will not see your car on there used car lot because nissan or which ever finance company would sell the car back to the dealer for way too much and they would never buy it except if someone is willing to purchase the car at the high price. I work for a caddy dealer so i know, at work only very few times we would buy a car from the bank to resell it because the dealer can go to the dealer auction and pay a lot less for the same car. Ex, if the banks wants 18k for your car the dealer can go to the auction and buy your car for atleast 14 to 15k. So do your research well.
10-06-2008, 02:24 PM
#15
Senior Member
Thread Starter
Join Date: Jun 2003
Posts: 256
If you didn't want it, you could have tried to sell it yourself right before the end of the lease, then paid off the $13,400, keeping the balance for yourself. I was hoping to sell my Max for around $20k before the end of the lease, pay off the $18k balance, then keep the difference. Prices on used Maximas around here are less than the payoff, though.
10-06-2008, 05:58 PM
#16
Senior Member
Join Date: Sep 2008
Location: 757 VA
Posts: 207
back in 03, i lease an Acura TL Type-S. the car stickered for about $33K and i leased it for $400/mo for 4 years. i kept the car as if it was 'mine'. maintenance, constant detailing and in perfect shape with the exception of a ding on the right front fender and 2 small scuffs on the rear bumper from some azzclown tapping the car while parked.
either way- at the end of the lease, Acura sent an independent 'inspector' to my house to check the car out. the factory gave me a $1500 'wear and tear' allowance which basically covered any cosmetic repairs (and tires) up to $1500. the only stipulation was that the allowance couldnt be used on one thing (ie- a door being smashed in and costing $1500 to fix). the inspector wrote the 'damages' at $600 on my car, recorded the mileage and gave me a receipt.
i inquired about buying the car at the end of the term. however, Acura's price was set- they refused to negotiate. so i simply drove it to the closest Acura dealer, handed the receipt and keys to a salesman and left. that was it.
having said that, i dont think that i would ever lease another car again (or buy a brand new car for that matter). while i really enjoyed having a brand new car, the new-ness wears off, the novelty wears off but the payment (rental fee, basically) remains the same.
also, i was way UNDER the mileage allowance. the limit was 48K miles and i returned it with about 34K. reason being was that for almost during the entire term of the lease, i had a motorcycle issued to me for work.
either way- at the end of the lease, Acura sent an independent 'inspector' to my house to check the car out. the factory gave me a $1500 'wear and tear' allowance which basically covered any cosmetic repairs (and tires) up to $1500. the only stipulation was that the allowance couldnt be used on one thing (ie- a door being smashed in and costing $1500 to fix). the inspector wrote the 'damages' at $600 on my car, recorded the mileage and gave me a receipt.
i inquired about buying the car at the end of the term. however, Acura's price was set- they refused to negotiate. so i simply drove it to the closest Acura dealer, handed the receipt and keys to a salesman and left. that was it.
having said that, i dont think that i would ever lease another car again (or buy a brand new car for that matter). while i really enjoyed having a brand new car, the new-ness wears off, the novelty wears off but the payment (rental fee, basically) remains the same.
also, i was way UNDER the mileage allowance. the limit was 48K miles and i returned it with about 34K. reason being was that for almost during the entire term of the lease, i had a motorcycle issued to me for work.
10-08-2008, 11:31 AM
#17
Supporting Maxima.org Member
Join Date: Aug 2007
Posts: 106
Like domestic violence said if you decide to turn the car in have an independent inspector come to you and inspect the vehicle. Every lease company works with independent inspection companies and they pay for them to do it. This way you'll know exactly where you stand when you turn the lease in. If you just drop it off at the dealer and walk away without having this inspection you'll likely get a letter in the mail that'll shock you with the price for repairs. Again have an independent come to you and I believe those inspections are good for 30 days.
IMO, turn the thing in and purchase/lease new. Most lease companies will not negotiate the residual with you!
IMO, turn the thing in and purchase/lease new. Most lease companies will not negotiate the residual with you!
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