Lease-end terms?

[BMWdude]

At the end of your lease, if you are unable to pay out the remaining cost all at once, but do not want to give back the car, can you start a new lease on the remaining cost? So say the vehicle cost $20,000, you lease for 48month and 6.4% with $4000 down, it comes out to about $228/month. After the 48month, you are left to pay about $10,000. Can you negotiate a new lease on that price?

 

[MyHarley]

You just refinance the balance due..........a bank, credit union or the financial services of the dealership will set up a regular car loan with the car as collateral. At the end of the lease, it just becomes like purchasing a used car. If you are in a lease, it already has a predetermined buy out price and that is the price you refinance........

 

[BMWdude]

Oh ok, I knew that

thanks

 

[MyHarley]

What were you thinking??

 

[wileycoyote]

As always, having the facts will help. Read the front and back of your lease agreement. Call you leasing company and ask them any questions you have. With that in mind, here's my 2 cents.

Very few financial institutions will lease used cars. If you just want to keep your car, do as MyHarley suggested and buy it yourself. Here's something to keep in mind though. You either owe the leasing company the amount of the buy out (residual + a purchase fee) or the car, in the condition according to the terms of the lease (mileage, damage, etc.). If you've taken good care of the car and are interested in keeping it, buy it. If you you don't want to keep it, you may sell it, but be sure you get enough for it to pay the purchase option. Selling it is often a good choice if either the car is in really good condition and has a high resale value, or you've gone way over on mileage. In the case of going over on mileage, it may cost you less to sell the car, even at a loss, than to pay the milage penalty. If you are really upside down (purchase option exceeds the value of the car) and you don't have enought money, you may choose to go back to the dealer and trade it in. They can roll the amount you owe into your new vehicle payment. I do not recommend this as it perputates a bad debt situation. Eventually it will catch up to you and you will have much bigger problem.