Car Leasing Center – My Car Lease Is Up … Do I Have Options?


buying-vs-leasing Ah, the $64,000 question and of course the question that I hear a number of times throughout the day!

The short answer is … of course you have options!

Your Options Are …

1. Give the vehicle back. Your car lease is a “walk away” meaning you can give it back and walk away from it. You are free to get into another vehicle within the same brand or you can choose a different brand altogether, the choice is yours. There are a couple of things to consider and I will certainly give you the low down on those in just a second.

2. Give the vehicle back and get into a new one. If your car lease is about to expire you “may” be offered some form of Lease Loyalty Program as an enticement to keep you in the family and back into another new vehicle from the manufacturer.

I say “may” because it isn’t a given and of course not all manufacturer’s offer it. It just so happens that Chrysler, Dodge and Jeep do offer Lease Loyalty Programs from time to time. If you are leasing something other than Chrysler, Dodge or Jeep check with the dealership you purchased your vehicle from. If you are in a Dodge, Chrysler or Jeep Contact Me, with your lease details, I’ll be more than happy to work with you!

3. Buyout your current leased vehicle.You have driven this car since new so you know how it has been driven. The one thing you MUST understand is that the residual (buyout) is NOT negotiable. The buyout is what it is, plus there is an admin fee, gst/pst plus you also have to get a safety and e-test done and finally the registration transfer. (Note: safety and e-test is a requirement for Ontario, check and see what the requirement is for your province).

Before you consider this route however, take the 20 minutes go into your dealership and have the car appraised. You already know that the buyout is what it is … but do you know what the car is worth in today’s market dollars … typically no. Having the vehicle appraised will help you make an informed buying decision. If the car isn’t worth the buyout then my question to you is …

Why are you paying more for this car than what it is worth?

It doesn’t make sense! In that case give the car back. That’s the beauty of leasing, you have the choice of giving it back or keeping it, if it held value of course!

In a nutshell those are your three options. Now, typically what comes across my desk are people who don’t want to buy their lease out but are way over on their kms and/or have damages and they can’t afford to pay for them. They feel the best way to avoid it is to just grin and bear it and buy the car out.

When people come to me that are usually over kms (sometimes by a lot) and they may have damages. If you find you are over on your kms, then you will be charged .12 – .15 cents/km overage plus tax. It’s pretty straight forward.

For damages, if you purchased the Worry Free XS (applicable to Dodge, Chrysler and Jeep) then you know you are covered for up to $3500.00 in damages. Anything over and above you are of course liable for. If you didn’t get the Worry Free Coverage then you are liable for the damages.
Hey … relax yourself, there are ways you can be helped here, so just breathe in … hold … and let it out, read further and we’ll get to helping you ;o)
 

 

If you want to give back your lease and get into a new brand altogether, then here is my suggestion to you …

 

Book a lease pre-inspection appointment where the Lease Manager will inspect your vehicle and let you know what you are responsible for in terms of repairing damages and/or km overage. They will provide you with an estimate for the damages and the actual for the kms. With that information in hand, when you shop for the next new car, use this as a bargining tool. What I mean is, tell them that you have a lease car, let them know the details in terms of how many payments you have remaining, how much you are going to owe in km overage and/or damages. You’re on the hook for the kms and overage so see what the new Dealership is prepared to do for you to earn your business.

If you decide to stick with the same brand, AGAIN, it is in the dealerships best interest to help you with the km overage and/or any damages you might have. They want to keep you in the family and will certainly work at helping you out to do so!

KEEP IN MIND … I said help, not assume all. Depending on your situation there is a possibility that they will cover it for you. However, if your situation is extensive, don’t expect them to foot the whole bill.

So do you have options?

You betcha!

If after reading this you still have questions, not to worry. You can either call your dealership, who I am sure is standing by to help you. Or, put it in a form of a comment below and I will certainly respond. If that isn’t working for you Contact Me, explain your situation and I will be more than happy to help you!!
 

If your lease is up and you think you might want a quality used car this time around instead … skip over to Used Cars for Sale Canada

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11 Comments »

 
  • Salma01 says:

    Hi,

    We have just added your latest post “My Car Lease Is Up … Do I Have Options?”to our Directory of Auto Loan . You can check the inclusion of the post here . We are delighted to invite you to submit all your future posts to the directory and get a huge base of visitors to your website.

    Warm Regards

    Au-toloan.info Team

    http://www.au-toloan.info

  • How soon will you update your blog? I’m interested in reading some more information on this issue.

  • cars canada for sale says:

    Hi There …

    Received your post and thank you for taking time out of your day to leave a note, I appreciate it!!

    I update on a regular basis so check back often and in a little bit of time you can follow me on twitter and on facebook as well so you won’t miss a post!

    Thank you again!

    Dennise Ryder

  • I want to donate my car to a charity. I do want to recieve a tax deduction, but I don’t want it to go to just any charity I would very much like my car to go to a needy family. I am in the Houton area. Can anybody help me or have any sugestions.

  • Hi …

    Try these places.

    You can contact The Houston chapter of Habitat For Humanity as well as The Boy Scouts, Girl Scouts, the Houston Chapter of The Sierra Club among others for direct car donation.

  • Steve says:

    Hi There …

    Received your post and thank you for taking time out of your day to leave a note, I appreciate it!!

    I update on a regular basis so check back often and in a little bit of time you can follow me on twitter and on facebook as well so you won’t miss a post!

    Thank you again!

    Dennise Ryder

  • Edward Young says:

    Auto loans these days are a bit expensive, this is also a side-effect of the economic recession'”`

  • If you are referring to used cars, then yes. They are based on the current bank rates, unless you find a dealership that offers in-house financing. There is ALWAYS a trade off, so make sure you know what you are getting into before you sign anything.

  • Hand Winch  says:

    sometimes it is hard to find a good company that offers auto loans*~;

  • Windows says:

    They are based on the current bank rates, unless you find a dealership that offers in-house financing. There is ALWAYS a trade off, so make sure you know what you are getting into before you sign anything.

  • Anonymous says:

    the auto loan that i got this year have a higher interest rate “

 

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