Should I Buy Out My Car Lease?
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- Опубліковано 27 тра 2022
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I disagree; when my 3 year lease was up, the automobile market had gone through the roof, and the blue book value was nearly the same as 3 years ago. The balance was less than half the blue book value. I bought the vehicle with less than half the balance left, and it is nearly paid off 1 1/2 years later. The low monthly payments gave me the space to pay off my home 8 1/2 years early and avoid $52,000 in interest. Who won here? I did.
That’s a lot of confidence in a job you just got
Used 2020 RAV4's are averaging around $35k right now. Dave's baby steps certainly work but I wish he would take sometime to update his mental numbers, it's not 2005 anymore
What numbers?
@@krecikowi he said "it's probably worth about 15k" lol
@@MotownModels He did not say the rav4 was worth 15k. He said that the buyout on his lease would probably be around 15k (since he is halfway through the lease).
@@xander6051 more like probably 25k payoff...he only paid 5k or so...new they are 30k+
@@markg999 he bought it a year and a half ago, before prices were so inflated
2020 Rav4 now used are going for $30k+ he probably owes near $25k to buy it outright from them. ($300 @ month at 18 months is only $5400). Could payoff sell for $30k+ private seller and keep Camry for the wife. Now have $30k+ for student loan debt. I wouldn't depend on just one car for house..especially if wife has to travel for work.
Lol Dave's reaction when the guy said "I have a company car" and when he said "thats the thing" when Dave asked about other debt.
I would wait a few months on selling the car. If the new job does not work out, and you have to return the company car, it would be nice to have that Camry available.
Me too
It can be the case that once half of the lease period has passed, the vehicle can be returned with no penalty. But it depends on the provider and contract terms.
This is highly unusual and I’ve leased many cars and never seen such a thing. Nor have I heard about it on the lease forum i visit.
@@patty109109 My misunderstanding of the rules but a car can be returned early. There is a penalty but it can be done with some companies. Extract from UK leasing info...."In instances where you wish to end the term early (known as “early termination”), you will normally have to pay a minimum of 50% (half) of the remaining rentals. With some finance companies you will have to pay all of the remaining rentals in order to early terminate the vehicle."
Since the lease is a lower, previously set price from before the supply chain problems, they may let him out of it just so they can resell it at a markup.
But, if he had the ability to buy the car, he could make the profit instead of the dealer
Used car dealer here...
Why bother buying out the lease if you're not gonna sell it? It's pointless. Things could change in a year.
Hi I have a question if it costs 13k to buy out my lease 2020 Kia… should I give the car back or finance a used 10 year old Lexus instead?
@@chocolatewheelchairif you like the Kia, I would buy out the lease and keep it.
Why not sell the Rav4 and keep the Camry? Those model year Camry's are bulletproof.
You don't NEED a new Crossover SUV to haul kids around... unless you just want to keep up with the Joneses
They could also sell the Camry & Rav4 and buy an older Rav4 and pay off all their debts.
We have an 08' Rav4 and it's been bulletproof w/ 150k miles.
How is he gonna sell the Rav if he's leasing it? He doesn't own it yet. He's halfway through the payments. He has to pay the remainder on the Rav to own it then he can do whatever he wants after. Otherwise, he's losing whatever money he put into the lease.
@@front331 nah you can just go turn it in I lease all the time
@@FATmenDRIVEtrucks but if he turns it in, doesn't he lose all the money he put into the lease? He's a year and half into this mess, he should just pay the remainder today like Dave said to avoid interest or just pay the monthly until it's over.
The boss is always right George keep shaking your head lol 😂
Buying out the lease may be a decent deal considering he leased it before the prices went crazy. Watch out for sneaky dealership fees though. Dealers know that equity is built into leases like his, so some are tacking on extra fees onto the buyout 🤦🏾♂️.
I had something similar happen ten years ago with a Honda Ridgeline. They paused making them for a couple of years, so the value of the existing ones dramatically increased. I sold it outright, paid off the lease, and ended up driving it for four years for only a few thousand total. I got one of the rare good deals with a lease.
@@wtk6069 awesome when it works out that way 👍🏾
You’re making things up, cj. Buyout is locked in already by manufacturer based on RV when it was signed.
The lease contract should be specific for buyout fees.
Such as?
2011 Camry a hooptie? Gaawwllllieee that's a dream car for me(commuter)
Dealers will probably not allow them to buy the RAV4 because they can get more money selling it on their lot.
Wouldn’t it be breach of contract if they don’t allow it
@@craigcarter400 I thought the same thing but I heard on the radio here over in Detroit that dealers were buying them back from the people in order to sell them. Maybe certain Lisa’s have been written in such away in the past and it did not allow for that but maybe the new ones do.
No way $15k buys out the RAV4!
They have student loans, so technically by Dave terms, you should sell it the RAV4. But in reality, that is a nice car. I'd keep the RAV for the wife and sell the Camry Especially if the buyout on the lease is way below its value.
I would keep that Camry and run it into the ground. It is barely broken in at this point. I would wait a few months to see if the new job works out and to see if there is any student loan forgiveness coming before the midterms. Meanwhile save more money and check out the car lease conditions carefully before doing anything with that.
I’m pretty sure he owes $30k on the rav4
More like 20k
Yup, dead on! 28-30K + sales tax of around $2,000K
Can you terminate a lease early? Yes. The details are in your contract. The leasing company can give you the buyout. Notice, you leased from the leasing company NOT the dealer. The dealer was only the sales agent. However, the dealer can buy out the lease. If you buy it from the Leasing Company. You will pay an early termination fee, plus state sales tax. You normally get a bill of sale and get a title from your state. You can then sell to anybody.
Most leases now allow only you or an authorized dealer for thar make of car tp buyout a lease, ie, a Nissan dealer cannot buy out a Honda lease. Why this ruke? Because dealers need used acrs.
Ask local dealers that sell your make of car for a buyout offer. The don't pay termination fees or tax. You get a check and maybe a ride home.
You most likely have equity, I do on my leased Acuras.
Seems like as well the rav is worth more. Maybe consider how much the rav would sell for, and think about keeping the Camry. Might be you keep more of your savings that way.
They make enough to keep the Rav4,
@@jimmymcgill6778 They definitely could. Just another idea. If you sell it for top dollar now you might be able to purchase a new one for cash. My parents recently traded in a Ford Escape I think it was an 18 or 19 with 60k on it. They still owed a good amount on it, but the dealer gave them enough to pay it off completely and put them in a new Ford Bronco for the same payment. Thankfully that’s the only car payment they have. But as they get older I think they want to be sure they have a reliable car.
Since when is a 2011 toyota camry a hooptie?!! Im in a 2005 chrysler sedan!
5:24 The right way to get out of a car fleece is to not get fleeced in the first place.
Dave is on a very good humour in this call
George it will be entertaining to hear you argue with Dave hahahha.
Question, how can I sell a leased car? I can pay it off but what about sales taxes? If the buyer needs to finance my car, how can he get a loan since I don't have the title under my name interm? Thanks!
Instead of buying the the lease car, sell it to a dealership, if there is equity they will cut you a check.
Yes they will! The current trend is NEW car dealerships opening USED car dealerships. That's all you need to know about this current vehicle market.
I was waiting to hear fleeced 😂
2:03 George waking up from a nap
It's crazy to hear someone call a 2011 a hoopty- meanwhile in driving a 2003 with no plans of an upgrade.
Do you want a cookie?
@@musicessexx are you offering or being a condescending mouthpiece?
WALK IN THE DEALER AND ASK WHAT'S MY EQUITY IF YOU HAVE A LEASE
Why not just call them?
It's easy. You can find you own equity. Current retail - Residual value = Equity.
If a 2011 camry is a hooptie, then what is my 2002 crown vic with 250k miles?
You can argue with your boss, and if you win the argument, you will lose your job.
What if your making 100k plus annually and use your lease as a tax write and want the luxury of changing vehicles every few years
Is leasing still bad In that car?
Why not flip the rav? Buyout could be less then resell. That Toyota will run for another 100k miles
He should know the lease buy out number...
its crazy that a 2011 camry is now a hooptie
If that 2011 is a hoopty then wonder what he would say about my 2000 Toyota Avalon
Yes. I think he’s slipping. It is only a hoopdie if it looks horrible. Keep your paid for car. There has never been a worse time in history to buy a car. You have to pay for it before you even see it.
That Camry will outlast the rav.
That would be a Beater.
Yea his going on vacation less than a year in his job 😂
Dave hasn’t looked at those cost of capital calculations in decades probably. His numbers are wrong. He is right that in a lease they can hide them 100 times more easily. But it’s not 14% interest
Yes he’s completely wrong but Keeps parroting the same silliness.
I would pay off the Rav and sell it. I would keep the car and drive it another thousand miles.
Don't sell the camry!
If that’s a hoopty, then I’d shudder to think what my 2007 4Runner with 237k miles is.
That would be a "Beater".
Keep the camry
I got a boy base rav 4 20 18k
Just keep the lease, sell the camry, put that 25k in tesla / google / amazon etc should flip quite decently by the time the lease is up
I die inside a little each time when I hear that someone is in a car lease. Worst idea ever. People don't seem to ever do the long term math.
My father makes me lease
@@chocolatewheelchair Whose money is it, yours or his? If it's yours, you do whatever you want. If you don't want to lease, you say to your Dad, "Dad, it's my money and here's how I choose to spend it." Then you explain how leasing is a waste of your money.
@@rubyfirefly2582 he thinks it’s a bad idea to buy used luxury car. We just lease them
You have to realize one thing. Cars are NOT an investment (unless you are buying high-value or vintage luxury vehicles) Leasing AND buying a "standard" vehicle are BOTH a lose, lose situation. I have done both. Depreciation is the key and tells you everything you want to know.
A 2011 Camry is a hooptie?!?!
Haha 15k for the buyout…. Try 25k and 5k for the Camry… try 12k. Dave is great but those are dumb assessments.
People always say Dave's out of touch. I never believed it until I heard him call a 2010 Camry with 120k on it a "hoopty" lol
Dave is out of touch a lot.
Lease a car if you own a business then its a write off!
purchase can be written off as well but lease is easy. end of the day lease depends on the specific vehicle if its good or not
Or you can Section 179 deduct the entire purchase price in one tax year. I did that when my W-2 wages were high.
I'm with George this time
Folks...never EVER lease a car. It's just not worth it.
Why not
@@rodolfoaguilar9195 Because mathematically it's the most expensive way to drive a car. But if you enjoy setting cash on fire, then go right ahead.
@@jb111082 Yeah finance a loan is better if strapped for money.
I'd disagree. I leased my car in 2018 for 39 months/12.5k miles. Paid $300/month and after the lease was up I only had 23k miles on it, so I just bought the car and paid 12k in cash so I don't have a car payment.
I probably would've paid double that if I bought a used '18 with 23k miles at a dealership
@@Ronmexico211 You still paid 24k for it doing it that way. That was still probably more than it cost to just buy it in the first place,
Outdated advice
There is NO WAY to know if he’s getting fleeced on the lease with what he shared and as usual, your assumptions are WAY off.
As usual dave has no idea what he is talking about regarding leasing.
Lease a car if you have HIGH income 100k plus or you're a millionaire!
Why?
Huh? I would argue that's even LESS of a reason to lease a car. If you're well-off, just BUY whatever car you want so it's YOURS. No payments, no fees, no contracts...
@@MichaelAnderson-wk1no If you're well off and a car person like myself I would lease so I can switch cars every 2-3 years, if you're not a car person just buy a Toyota or Honda and drive for 10 years....
@@superblump87 Not not you can actually afford it....if driving the latest car isn't your thing just go buy a used one.
@@p.capes1 why not just buy and re-sell?