I can't do this right? Or at least shouldn't.

[Klesko]

I guess I am making this as more of a confirmation of my own conclusion this would make no sense to do. 

 

My wifes lease has 11 months left on it at $490 but she is already over by 8k miles. Extra miles are .25 per mile and she drives about 1500 miles a month now. Payoff of the car is 51k and trade in is about 43k residual value is 47k. So trading it in is not an option. 

 

Option 1

Keep the leased car and pay the mileage overage at the end. Estimated to be 24.5k miles for $6,125.

We then will buy a new car (she wants a minivan). Our credit should be better a little bit by then. 

 

Option 2 (One the wife wants)

Get a new car and turn in the leased car and pay the 11 months payment of $5,390.

New car would be 42k or 45k with tax tag title (10k down) finance 35k at 12% (guessing here our credit is about 580 atm)

 

It makes the most sense to ride the lease out until the end right? I complicates things a little because my cars lease ends in 7 months we well. 

[hegemony]

is she using it for business and expensing the lease depreciation? if not, it sounds like she is driving more car than she can afford.

 

exactly what are you hoping to accomplish?

[Klesko]

31 minutes ago, hegemony said:

is she using it for business and expensing the lease depreciation? if not, it sounds like she is driving more car than she can afford.

 

exactly what are you hoping to accomplish?

Its not for business, yes I agree shes driving more car than we can afford anymore. She changed jobs at the time and went from driving 30 miles each way to work and now only drives 3 miles each way to work. Before she was putting 20k miles a year on her car and I thought she would drop to 10k miles a year so thats what the lease is for. But shes driving closer to 18k miles still somehow. 

 

Her lease is up in 11 months, mine is up in 7 months, we wont be able to lease again due to credit change. I might buy my lease, not super expensive. I was just trying to avoid dealing two car issues at the same time with poor credit and being able to get off her back about how much she drives. 

 

We are looking at going from a QX80 to a Honda Odyssey which is more in line with that we can afford. 

[Zanshiro]

My out the box solution:  Buy a cheap beater, absorb some of the miles from her lease, lower the lease's payments and get away from that method.  Buy a cheap used car later.

[cten07]

You save 735 by paying lease off early and turning it in now. Does the leased vehicle need tires soon? Or did you purchase tires already for it? My dad leases and I did in my 800 FICO score days a decade ago and we each had to put tires on a leased vehicle once at around 30k. Another potential cost for a car you won't be keeping. 

If you turn the lease car in early,  you can purchase a new Chrysler Pacifica for less than Odyssey,no need to get a beater. Or look for a 2 to 3 year old lease turn in Odyssey if you can save $. If you go Chrysler, just make sure you buy extended  warranty, but do it directly from Mopar at 35k and not at purchase time.

Beater route and too cheap of a vehicle may get you beat by her!!

[centex]

1 hour ago, cten07 said:

If you turn the lease car in early,  you can purchase a new Chrysler Pacifica for less than Odyssey,no need to get a beater. Or look for a 2 to 3 year old lease turn in Odyssey if you can save $. If you go Chrysler, just make sure you buy extended  warranty, but do it directly from Mopar at 35k and not at purchase time.

Beater route and too cheap of a vehicle may get you beat by her!!

But then they are stuck with a Pacifica and having to unwind an FCA POS down the road. 

 

[mk_378]

If you turn in now you still have to pay the $2000 for the 8000 miles it is over, as well as the remaining payments, then you lose 11 months of usage.  So you can look at it as keeping until the end is only costing the additional 25 cents per mile, or at her current rate $375 per month-- which could be reduced by driving less.

 

Trading down isn't going to be possible without a lot of cash, which it seems you may be able to swing, and that's definitely the direction you should be heading.

[Klesko]

17 hours ago, Zanshiro said:

My out the box solution:  Buy a cheap beater, absorb some of the miles from her lease, lower the lease's payments and get away from that method.  Buy a cheap used car later.

If it were my car I would but its the wifes car so thats not gonna happen. 

 

16 hours ago, cten07 said:

You save 735 by paying lease off early and turning it in now. Does the leased vehicle need tires soon? Or did you purchase tires already for it? My dad leases and I did in my 800 FICO score days a decade ago and we each had to put tires on a leased vehicle once at around 30k. Another potential cost for a car you won't be keeping. 

If you turn the lease car in early,  you can purchase a new Chrysler Pacifica for less than Odyssey,no need to get a beater. Or look for a 2 to 3 year old lease turn in Odyssey if you can save $. If you go Chrysler, just make sure you buy extended  warranty, but do it directly from Mopar at 35k and not at purchase time.

Beater route and too cheap of a vehicle may get you beat by her!!

 

We got tires about 6k miles ago. The Pacifica is cheaper, 40k loaded vs 48k for the Odyssey, however we were looking at 2019 Odyssey (still new) for 42k which would be a better deal. They hold their value alot more. 

 

15 hours ago, centex said:

But then they are stuck with a Pacifica and having to unwind an FCA POS down the road. 

 

 

Since the 80s my dad only ever owned Chrysler minivans. Mixed results for sure. 

 

13 hours ago, mk_378 said:

If you turn in now you still have to pay the $2000 for the 8000 miles it is over, as well as the remaining payments, then you lose 11 months of usage.  So you can look at it as keeping until the end is only costing the additional 25 cents per mile, or at her current rate $375 per month-- which could be reduced by driving less.

 

Trading down isn't going to be possible without a lot of cash, which it seems you may be able to swing, and that's definitely the direction you should be heading.

 

Thats the way I am looking at it., The $490 a month for 11 months is already owed money I cant get out of. She has a QX80 (84k car) why downgrade to a minivan and pay more per month right now. It makes sense when the lease it up though. 

[unleashedfury]

Your leasing 2 vehicles? 

 

Any possible way, to maybe drop to one lease and buy a cheaper used car even if its for yourself? I was in you boat before I had 2 car payments one for me one for the Mrs. I was paying almost 800 month just for cars, I managed to have enough cash set aside to do a sale on my car and pony up the difference in value, vs actual payoff. Went to a cash car, 

 

My DW did a lease up until last year, it made sense because she works primarily from home and maybe does 20 miles a week. now I commute about 5 miles to work, So I let her have my car, if she needs it, and I take my SUV to work, I have one car payment, and not worried about mileage. 

[Klesko]

15 minutes ago, unleashedfury said:

Your leasing 2 vehicles? 

 

Any possible way, to maybe drop to one lease and buy a cheaper used car even if its for yourself? I was in you boat before I had 2 car payments one for me one for the Mrs. I was paying almost 800 month just for cars, I managed to have enough cash set aside to do a sale on my car and pony up the difference in value, vs actual payoff. Went to a cash car, 

 

My DW did a lease up until last year, it made sense because she works primarily from home and maybe does 20 miles a week. now I commute about 5 miles to work, So I let her have my car, if she needs it, and I take my SUV to work, I have one car payment, and not worried about mileage. 

 

I do have some large bonuses and a enormous amount of bills coming off the books in early 2021. My plan is to buy my lease out with a loan and then pay it off in early 2021 and just have my wifes auto loan. 

[unleashedfury]

15 minutes ago, Klesko said:

 

I do have some large bonuses and a enormous amount of bills coming off the books in early 2021. My plan is to buy my lease out with a loan and then pay it off in early 2021 and just have my wifes auto loan. 

2021 is still a year and a half away, 2 years depending on when you are getting the bonuses, and getting bills off the books. Can you keep yourself afloat till then without causing any damage? 

[Klesko]

13 minutes ago, unleashedfury said:

2021 is still a year and a half away, 2 years depending on when you are getting the bonuses, and getting bills off the books. Can you keep yourself afloat till then without causing any damage? 

Budget is doing ok right now, 10k in a month, 8k out a month in total. So in 2021 a ton of the medical stuff I agreed to pay for when my dad got sick will be done and will reduce my out per month to 5.5k. My goal is to get to 4k out a month eventually.