What do I do?
If I’m only 1 year in on paying a lease for a car that I no longer want?
36-40, F
samueltyler2 · 80-89, M
@1490wayb for me it has been a good route. If you get a lease that includes the full cost for time the car is fully covered by the warantee, and the interest rate at the time is good, you can better budget and not worry about unexpected car expense. If you drive a lot though, the extra mileage charges must be factored in.
whowasthatmaskedman · 70-79, M
Maybe you can find someone to take over the lease. But you will have to pay them to do it. Or, you are screwed.. If you return the car it will be auctioned into a depressed market and then you will be hit with a bill for any money the finance company didnt recover. Which will be massive..😷
swirlie · 31-35, F
You can take the car back and exchange it for another vehicle that the Dealership sells and continue your lease for the remainder of the lease term.
When you lease a car, your lease is based on you purchasing only the 'depreciating' part of the car, but not the asset value itself which is the whole car.
In other words, if you lease a car for 4 years, your car will depreciate by approximately 50% during those 4 years which is standard for all cars.
Rather than actually owning the entire depreciating asset 100%, you only own the first 4 years of depreciation that your vehicle incurs. That 50% depreciation value is then divided by 48 payments where nominal interest is added to that payment such as 3% APR or less (or more).
When you lease a car, you are no further disadvantaged than someone who owns the car outright except at the end of your lease term, you must return the car and drop the keys off. If you own the car, you have the choice of continued driving... or trading it in on a new vehicle and starting over while using it's un-depreciated asset value to lower the cost of the new vehicle purchase during the trade-in.
The advantage of leasing is that you don't have to go through the hassle of selling your car in the end nor searching around for a good deal on a trade-in. All you do is pay the depreciation plus interest and you're done.
When you own the car, you still incur exactly the same depreciation cost, but you also own a depreciating asset which will eventually become unsalable to even a wholesaler if your mileage gets too high or the car gets too old.
If you can't afford to buy a new car outright, then lease one PROVIDED you don't drive more than about 8 to 10 thousand miles per year. If you drive way more than than, then you will be charged about 20 cents per mile at the end of your lease for exceeding the maximum mileage agreement that your lease was first based on. In that case, if you drive high mileage annually, then you are further ahead owning the vehicle and not leasing it.
When you lease a car, your lease is based on you purchasing only the 'depreciating' part of the car, but not the asset value itself which is the whole car.
In other words, if you lease a car for 4 years, your car will depreciate by approximately 50% during those 4 years which is standard for all cars.
Rather than actually owning the entire depreciating asset 100%, you only own the first 4 years of depreciation that your vehicle incurs. That 50% depreciation value is then divided by 48 payments where nominal interest is added to that payment such as 3% APR or less (or more).
When you lease a car, you are no further disadvantaged than someone who owns the car outright except at the end of your lease term, you must return the car and drop the keys off. If you own the car, you have the choice of continued driving... or trading it in on a new vehicle and starting over while using it's un-depreciated asset value to lower the cost of the new vehicle purchase during the trade-in.
The advantage of leasing is that you don't have to go through the hassle of selling your car in the end nor searching around for a good deal on a trade-in. All you do is pay the depreciation plus interest and you're done.
When you own the car, you still incur exactly the same depreciation cost, but you also own a depreciating asset which will eventually become unsalable to even a wholesaler if your mileage gets too high or the car gets too old.
If you can't afford to buy a new car outright, then lease one PROVIDED you don't drive more than about 8 to 10 thousand miles per year. If you drive way more than than, then you will be charged about 20 cents per mile at the end of your lease for exceeding the maximum mileage agreement that your lease was first based on. In that case, if you drive high mileage annually, then you are further ahead owning the vehicle and not leasing it.
samueltyler2 · 80-89, M
Musicman · 61-69, M
Leasing is a terrible way to go. How much longer do you have left on the lease? You could check on a buyout, but do you really want to pay that much to get out of your lease. My best advice is finish out your lease and never lease again.
