Leasing issue, major regrets.

Hijinx

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Never ever, lease a car. The normal interest rate, they don’t show you is around 14 percent. If your leasing you definitely can’t afford that car.
There are many reasons to lease a car, but beyond that your logic seems...flawed. You’re essentially saying that people must finance a car in order to afford it because lease interest rates are higher. While sort of true, it’s backwards...you have to be able to prove to the bank that you can afford a car before you finance or lease. One reason people lease is the same reason you’re probably paying a monthly payment on your smartphone...the short run is cheaper and more affordable.

I think what you’re trying to say is that one shouldn’t put a down payment on a lease because you’re basically renting a car for the next few years and if anything happens to it, that money is never coming back. You have zero equity in a lease, but you can incur more debt.
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kirkhilles

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I'd imagine your best bet is to focus on working it into a new deal. Carmax is always good to check but chances are they won't give you what you need. Salespeople are always DYING to get the sales, so I'd start now and negotiate slowly until you find the next car you want at the deal you want and make them take in your trade.
 

Mikemo

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Never ever, lease a car. The normal interest rate, they don’t show you is around 14 percent. If your leasing you definitely can’t afford that car.
That's nonsense. I just leased an SI and the money factor was 0.00105 which translates to about 2.5% interest.

Treat a leased car kindly. Don't spill your chocolate shake on the carpets. Don't curb the wheels. Don't smoke (or vape) in it. You won't owe them for any additional wear and tear at the end of the lease.

To the original poster, since you really don't like the car, I would bail on it now. Whatever negative equity you have in the lease can be rolled forward to your new loan payment. It will increase your payment, but only slightly since you are financing it over a long period of time. Search and find a good deal on your Subaru, and when you know you've got a killer deal, do it. Why pay for a car that you don't like?

Good luck.
Mike M.
 

himecraig

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I leased a 17 Civic Touring for $320/ month CDN for 4 years with a buyout of 13500. You're saying I could of got it cheaper if I had financed instead?
I’ve never leased a vehicle but those numbers make sense to me...you struck a fair deal with the option to buyout or better yet turn it in. Keep it or not you will have paid the same for the car and you’ll have a buyer at the end.
Anything wrong with the car tell the dealer to fix...it is their car after all. My buddy brings his in to the dealer occasionally for a free wash.
I’m convinced especially nowadays that I’d never again get stuck with old tech when in 4yrs you can get a fresh suite of technology, safety and fuel efficiency.

However all I hear are horror stories from family and friends that have leased and now this thread.
I’m sure I must be missing something.

The big hesitation to lease for me is the mileage overage but after reading all this it sure makes sense to do a workout before the term is up to forgive and strike a new deal with a car that is either more affordable or with more goodies as life situations do change. That is a win for all parties.
 
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Hijinx

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I’ve never leased a vehicle but those numbers make sense to me...you struck a fair deal with the option to buyout or better yet turn it in. Keep it or not you will have paid the same for the car and you’ll have a buyer at the end.
Anything wrong with the car tell the dealer to fix...it is their car after all. My buddy brings his in to the dealer occasionally for a free wash.
I’m convinced especially nowadays that I’d never again get stuck with old tech when in 4yrs you can get a fresh suite of technology, safety and fuel efficiency.

However all I hear are horror stories from family and friends that have leased and now this thread.
I’m sure I must be missing something.

The big hesitation to lease for me is the mileage overage but after reading all this it sure makes sense to do a workout before the term is up to forgive and strike a new deal with a car that is either more affordable or with more goodies as life situations do change. That is a win for all parties.
Horror stories occur when people don’t take care of the car. As an example, when a gentleman came to inspect my car for turning it in, he told me a story about a lady who’d more than doubled her mileage, had had several accidents which she didn’t take care of, smoked in the car, etc... She owed 15k when she went to turn in her car. Yes, $15,000.

In my situation, I was several thousand miles under my lease (even for a 2016 car in general), not a single scratch in the paint, no interior damage...the car was basically perfect. I paid my remaining balance on the lease and had the car inspected. The dealership I took it to purchased the car with zero hesitation.
 


kuroi

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Yo. A bit late to this. But, I agree with a few other that going with your option #1 would probably be the least financially painful. However, if it is going to be breaking down, it could easily turn out the opposite. Same for option #2.

I am thinking that, as suggested by, Xtelotatchl, you should look into what your pay off will be at the end of the lease if you purchase the car.

I see no option where you are not going to take any lumps. So, if they cannot penalize you for the extra miles if you buy the car, then keep it in really good shape and go ahead and buy it at the end. Your monthly payments will likely be about the same as your lease payments are now. So, do that and keep it as your commuter car for the next 15 years.

Save your money as you go and then buy the STI, or whatever you are into at that point, and drive that for fun.
 

himecraig

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So trash the car and go over mileage then that person had to pay $15,000 additional?
That’s not good...but that’s not the lease fault...(or was that the buyout).

Own or not to you’ll still lose money on an unkempt car or you’re upside down or don’t like the car or get in an accident...all that is still not the lease fault.
Id like to lease the next time and would rather have the option to turn the car in because of automotive advancements being implemented so quickly and trying to resell an old tech car of this generation will be difficult.

I think the op should do all the above options he listed...
Drive a pos car, get out from the lease, work a deal for a more affordable car and carpool with friends whenever possible
 
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Hijinx

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So trash the car and go over mileage then that person had to pay $15,000 additional?
That’s not good...but that’s not the lease fault...(or was that the buyout).

Own or not to you’ll still lose money on an unkempt car or you’re upside down or don’t like the car or get in an accident...all that is still not the lease fault.
Id like to lease the next time and would rather have the option to turn the car in because of automotive advancements being implemented so quickly and trying to resell an old tech car of this generation will be difficult.

I think the op should do all the above options he listed...
Drive a pos car, get out from the lease, work a deal for a more affordable car and carpool with friends whenever possible
The inspector said it was an Accord, so I’m sure she would have had to purchase the car or pay the money. He just does the inspection and let’s people know their damages.
 

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To anyone leasing is never a good option, that simply isn't true. If you're like me who switches cars out frequently for various reasons, or just personal preference, and you don't drive an extraordinary amount of mileage leasing works beautifully. I leased the Civic I have right now on 3 years/12,000 miles a year for somewhere in the low $100's a month because I put a sizeable down payment using the money I got off of my '13 focus. I use it for commuting into the city and small trips (small car good fuel), and the BMW for longer distances/business trips.

Right now I'm sitting at 2.8K miles after having the car since March so basically it all works out mileage wise. Fact is, you pretty much avoid the depreciation of the car when selling and you can switch it out for a nice new one once you're done. Win win for both the seller and the buyer. People don't understand that buying a car isn't really something where you get a ROI, because cars pretty much ALWAYS depreciate in value unless its an antique Ferrari or something. So you always end up losing money when you buy a car, simple as that. With a lease, you don't own the car but you get to let go of it without taking the hit on depreciation, and you could lease a brand new vehicle paying the same monthly fee rather than financing a purchased car and paying the monthly fee to pay it off as the car gets older and older. Everyone's financial situation is different but leasing makes more sense than buying for so many people.
 


Gruber

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With a lease, you don't own the car but you get to let go of it without taking the hit on depreciation,
Of course. Thank God the bank volunteers to take the hit on depreciation. :thumbsup:
 

shihabp79

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If I absolutely loved this car then I would never have made this post, and I didn't want to lease but purchasing new or certified pre-owned wasn't doable at the time and my parents didn't want me in something we didn't know the history of so a private sale car was out of the question.
I don't understand this mentality. What exactly do you think people do to their cars these days? Drag race over gravel? With a modern-day car, a comprehensive inspection by a certified mechanic and a vehicle history report would suffice and you could have gotten into an affordable used car. You and your parents put yourselves in this poor financial situation due to unnecessarily limiting your options.

Go buy out your lease and keep or sell off the car, as mentioned above. It's the only way to avoid the penalties without re-upping into another lease (which sounds like putting you right back in the same untenable situation.)
 

Hijinx

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I don't understand this mentality. What exactly do you think people do to their cars these days? Drag race over gravel? With a modern-day car, a comprehensive inspection by a certified mechanic and a vehicle history report would suffice and you could have gotten into an affordable used car. You and your parents put yourselves in this poor financial situation due to unnecessarily limiting your options.

Go buy out your lease and keep or sell off the car, as mentioned above. It's the only way to avoid the penalties without re-upping into another lease (which sounds like putting you right back in the same untenable situation.)
Do you need a new soapbox?
 
OP
OP
suckmyhatch

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Hey guys hopefully some of you come back to read this thread, I wanted to update everyone.
So I did some more research and actually sat down at a Subaru dealer, I am going back today 8/7 to talk more definitive numbers. Essentially Subaru (or any dealer) can buy my lease from Honda. As I mentioned it would be about $17k for me to buy it out, but for the dealer its less. They actually had a guy come in earlier that day with a similar situation and their buyout was slightly over $1,000 less than his so it helped him have less chance of negative equity/being upside down/in the red. So the appraisal guy kinda slipped and let out a little too much about how nice my car was, how well kept and that he wanted to buy it from me. With the light modifications he valued my car at $14,5xx, alluding to the fact I'd get around 2 grand more if it were stock which I assured him could be done (mostly just interior trim pieces and a few decals and my subwoofer really). So theoretically, and i'll be confirming today, if they get $1,000 less on my buy out ($16,1xx) and can add ~$2k to my trade value then I am set to leave my lease 20 months early with no penalty. So, if he really does want the car bad enough then hes going to have to give me what I want which is either no equity or positive equity. After that its just working out a deal on the STI they have that I've been looking at and I have decided that I'd be just as happy with a WRX if it doesn't work out well enough for me. But above all the equity situation has to be handled first, and my decision with that is that if they cannot get me to break even or go positive then Ill suck it up and eat the over mileage while mitigating some damage with my fathers spare car.

Side note: To all who keep saying "why dont you just buy the car out at the end" I have answered this many many times. This is not a car I want to keep for another 10+ years or pay more for once my lease ends.

Thank you ll for all your help/advice/opinions. I will be updating this thread tonight with the results of the buyout haggling. If it becomes definitive I will also create a new post to say goodbye to all and also to see if there is any interest in buying some of the parts I've added to the car (2017 Civic hatchback LX)

Husky Liner front and rear high wall floor mats
Black Mishimoto silicone intake tube (replaces corrugated part after airbox)
K&N Drop-in oiled filter (~19,000 miles on it cleaned recently)
Pre-cut red trim inserts for doors and dashboard (would have to be someone on Long Island, no sense mailing them)
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