Automotive

Buying out car lease

  • Last Updated:
  • Apr 3rd, 2019 7:52 pm
[OP]
Newbie
Apr 2, 2019
0 posts

Buying out car lease

HI,

Does anyone have advice on buying out car lease?
I am wellover my kms for my car, i dont intent on leaving the car and walking away because of the penalties and the fact that i need and like my car. it is 130,000km at the moment.
I want to buy out the car, but my dealer is trying to make us buy a new car with a new lease for 5 years. He said it would be 450/month payment for 5 years. if anything return the car in 3 years if we wanted. I dont care for new cars anymore. The main goal for me is to be of monthly payments. Is it worth it for me to pay $18000 for my buyout for my car? Im dreading the fact that if i get a new car i;ll be in the same ycle again and not liking themonthly payments. i want to be payment free.
9 replies
Member
Aug 4, 2004
484 posts
260 upvotes
when will be your lease end? depends on the brand of the car... you can call them up to the headquarter directly and buy out with them.
Deal Fanatic
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Jan 27, 2014
5262 posts
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Unless it's a luxury car I would not pay $18,000 to buy a car with 130,000 KM lol. That is NOT worth it.
Deal Addict
Apr 6, 2008
1807 posts
1152 upvotes
Unless you've got the money saved up, you're going to either be paying a lease or a loan. I would keep the car, but 18,000 is a lot of money. How much is the penalty and how much is a similar car/kms going for?
Deal Addict
Feb 17, 2012
1419 posts
315 upvotes
ORLEANS
fusion2k2k wrote: Unless you've got the money saved up, you're going to either be paying a lease or a loan. I would keep the car, but 18,000 is a lot of money. How much is the penalty and how much is a similar car/kms going for?
Usually popular leases are 36/48 months @24,000km. So he might be at least 30,000km over? Just guessing. Seems like the dealer is trying to get them to sign a new lease so maybe the current lease is 5 years as well. So maybe his current lease is 120,000km for 5 years. Wonder what car is it for $18,000 buy out after a 5 year lease. Entry luxury car?
Deal Fanatic
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Mar 17, 2006
6869 posts
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Burlington
$450/m for 5 years. That's $27,000
If you return in 3 years, that's $16,200

You keeping/buying out the current car, $18,000.

Unless your current car will last you at least another 3 years, it's better to lease a new one. You pay $16k instead of $18k, get to drive a new car.
Deal Fanatic
Sep 1, 2004
6314 posts
4931 upvotes
1) Go to CBB and Autorader/Kijiji to see what your car is worth to sell privately.

If it's worth more than the buy-out, buy it out regardless. Because you can always flip it for a bit of profit.

2) Now if it's worth less than buy out, you are basically paying a premium to get off monthly payments.

So the question is the premium is more or less than penalty? If the premium is less than return mileage penalty, buy it out, if not, return it. There is no point putting cash into an asset that worth a lot less.

3) The only other factor that would not be wise for a buy out is what kind of car it is and how much would be the upcoming maintenance costs. If it's a premium car, ditch it. If it's a Honda Accord or Toyota Camry, it may be worth it to buy it out.
Last edited by Xtrema on Apr 3rd, 2019 6:09 pm, edited 1 time in total.
Banned
Aug 3, 2005
1235 posts
1166 upvotes
giny123 wrote: HI,

Does anyone have advice on buying out car lease?
I am wellover my kms for my car, i dont intent on leaving the car and walking away because of the penalties and the fact that i need and like my car. it is 130,000km at the moment.
I want to buy out the car, but my dealer is trying to make us buy a new car with a new lease for 5 years. He said it would be 450/month payment for 5 years. if anything return the car in 3 years if we wanted. I dont care for new cars anymore. The main goal for me is to be of monthly payments. Is it worth it for me to pay $18000 for my buyout for my car? Im dreading the fact that if i get a new car i;ll be in the same ycle again and not liking themonthly payments. i want to be payment free.
How are you going to ask this and not tell us the exact model of the car?

How is anyone supposed to answer your question if you car is worth $18,000 if we know no details??
Deal Addict
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Sep 9, 2012
4295 posts
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Oakville, ON
giny123 wrote: HI,

Does anyone have advice on buying out car lease?
I am wellover my kms for my car, i dont intent on leaving the car and walking away because of the penalties and the fact that i need and like my car. it is 130,000km at the moment.
I want to buy out the car, but my dealer is trying to make us buy a new car with a new lease for 5 years. He said it would be 450/month payment for 5 years. if anything return the car in 3 years if we wanted. I dont care for new cars anymore. The main goal for me is to be of monthly payments. Is it worth it for me to pay $18000 for my buyout for my car? Im dreading the fact that if i get a new car i;ll be in the same ycle again and not liking themonthly payments. i want to be payment free.
Nobody can help you without knowing the make/brand of vehicle you’re talking about + what year is it + what model is it?
Deal Expert
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Jul 30, 2007
28907 posts
14475 upvotes
Toronto
I am guessing the orig msrp of this vehicle is in the $46,000 range.

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