Lease Turn In Info

[208RAMMER]

Hey guys,

Bought a 2015 Big Horn quad V6 1500 on a lease and the time has come to either trade in or buy it out. When I originally purchased it, the plan was to keep it forever so I didn't worry about going over the 30K mileage cap.

Fast forward to today and I am sitting at just under 53,000 miles. One dealer told me that if I roll into a new truck via lease or purchase, then I do not get dinged for the mileage overage. Well after wasting three hours of Saturday at another dealer, they told me that I have to pay the overage fee regardless unless I just purchase the truck outright.

Do any of you have experience with this? Just trying to make sure I make the best decision and don't let any of the local dealers try and run me around in circles.

Thanks!

 

[MADDOG]

I suggest you get your lease paperwork out and read it.

The terms of the lease will prevail, as it is a written contract, and if it says you are required to pay the overage then that's what will happen.

 

[mtofell]

I think some dealers advertise letting you out of the overage as a gimmick to get you into a new truck but I think you are too far over for them to take that hit. You're unlikely to find any relief in the paperwork. Every lease contract I've ever seen has hard rules about going over mileage.

I always buy my own trucks but have leased a few small/cheap delivery type vehicles for my company. If/when running over on the mileage from year to year you're basically working yourself into a negative equity situation. My old partner did that with out first lease and it was no fun. We ended up 3K in the hole after 3 years.

The dealer doesn't want the vehicle back. The only thing that might entice them is the opportunity to sell you another one. With the amount over on the miles you are your best bet is likely to just buy the vehicle from them and sell private party (or trade it, etc.). The per mile charge from the leasing dealer is usually far more than real world depreciation.

Leasing can be an ok option, especially for a business, but you have to be careful.

 

[quietpeen]

You are always liable for that overage on the mileage. Only way to not owe that money is to buy the lease outright, then trade the truck in. That is probably what they were referring to when they originally told you that you wouldn't get dinged for the mileage overage. How well that works in your favor depends on the real world value of your truck vs. your residual. My guess is the value of the truck is less than your residual and on paper paying the overage was less than rolling the negative equity.

 

[208RAMMER]

Thanks for your inputs. On the private market I can probably still sell it for a small two thousand dollar gain over what I owe. I will probably buy it out and run it until they are really trying to blow out the 18 models to make room for the next gen Rams.

 

[SHOOT2KILL]

The over miles issue you have is only a drop in the bucket if the dealer/fca inspector really wants to hammer you...Like...Tire thread wear ?/32's of wear...Yep even that is buried deep in the lease/contract wording...If they want they can tag you for all kinds of defects, stains, dings, even scratches in the bed can be used against you...Although most states have changed their lease buyout laws, but some would actually charge you sales tax twice...Once at the lease inseption, and then again on the residual if you decide to buy it...Leasing ANY vehicle that is not considered a BUSINESS vehicle is financial stupidity...When you jump into the "SHARK TANK" (dealership front door) and are not well versed on the antics they will use to SCREW you, you should never buy/sign anything immediately that same day...

 

[clay282]

I have yet to hear about 1 person who's leased anything, not getting screwed. SHOOT2KILL is correct... the will ding you for everything and anything. I've known a couple people over the years who leased and had I NOT known their car and rode in it and knew the condition, I would have thought they were lying about the bogus charges.

The law is the lease. read it with a magnifying glass and make sure the fine print is covered.

 

[208RAMMER]

I have leased a couple of other vehicles in the past with zero issues. The issue is the lease paperwork not covering a situation where you roll from one to another. All they talk about in the paperwork is the typical stuff such as wear and tear, overage on miles at point of turning in, etc. I guess I will find out exactly what the dealer will/won't do. I have no issue buying out my truck and avoiding those overage fees. Really the only reason I am considering getting rid of it is the want to move to a diesel.

 

[quietpeen]

I have yet to hear about 1 person who's leased anything, not getting screwed. SHOOT2KILL is correct... the will ding you for everything and anything. I've known a couple people over the years who leased and had I NOT known their car and rode in it and knew the condition, I would have thought they were lying about the bogus charges.

The law is the lease. read it with a magnifying glass and make sure the fine print is covered.

I have leased multiple times, never had any issues with turning in the vehicle.

 

[huntergreen]

The dealer that told you won't have to pay any excess mileage fees will most likely hide the fee in the purchase price. Won't hurt to see what kind of deal they come up with.

 

[stimpy433]

We've leased 3 different vehicles for my wife, (1) Ford, and (2) Chevys and never had a bit of problem when turning them in at the dealership.

 

[Docpaulo]

Buy the truck... keep It then sell it...

Trucks hold a lot of value on private party sale.. factor in sales tax though... that's where you'll lose money

 

[mjf6175]

Whether you have a problem when turning in a leased vehicle all depends on WHO is holding the lease paper. Did you lease through a bank? Manufacturer? Credit Union? In case of leasing through a manufacturer you usually have smooth sailing. Why? Because they want you to lease (or buy) a new vehicle from them again, a rough experience at lease turn in is sure not going to win repeat customers. Same sort of logic applies with a credit union. They usually try to take care of their clientele. It is usually when a bank holds the paper where you will get a hard time. Banks are big, care less about if you are getting another loan from them, and most importantly it is all about making more money. So every ding they can hit you with upon lease end they see as profit with no concern for anything else.

As to one dealer saying there would be no hit on the over miles if he bought or leased a new vehicle from them was whistling out of you know where. With the amount of miles the OP is over the best move, as others have posted, is for the OP to buy off lease and then sell it when he needs to or wants to.

 

[amm24dmb]

You’re going to “pay” for the miles unless you purchase the car. Whether you lease again or give it back you’re paying. If you lease again they may forgive some of the miles, but you’ll have to pay for mileage used and roll that into your next lease which drives the lease price up. I would buy it out.

 

[Ram Night]

A few years ago my wife took out a 3 year lease on a charger when they first came out. And 6 months later she wanted a durango because the charger was to small to haul anything. Well chrysler finance told me we will have to pay them 36,000 to pay off the least, then return the car back to the dealer. And it will show up as a repo on her credit report. That is BS.

 

[wutech]

So current lease things that I’m hearing around the Chicago area have over mileage at 0.25 per mile. If that was the terms for the OP, that’s $5750 for mileage, ouch in my opinion. I’ve never leased a vehicle and the wife wants to to get out of her 2014 Cherokee. Now she drives round trip of 2 miles for work each day so we don’t think we would be worried about miles on a 3 year lease.

 

[Ravjay12]

So current lease things that I’m hearing around the Chicago area have over mileage at 0.25 per mile. If that was the terms for the OP, that’s $5750 for mileage, ouch in my opinion. I’ve never leased a vehicle and the wife wants to to get out of her 2014 Cherokee. Now she drives round trip of 2 miles for work each day so we don’t think we would be worried about miles on a 3 year lease.

Just to warn you once you lease you are pretty much stuck with it until the end or you pay big bucks to get out of the lease. At the end of the lease you have nothing to show for it. Better to pay off the Cherokee and use that to buy another vehicle your wife wants. You have so many more options and more control buying a vehicle rather than leasing. With such low miles your wife is now driving, you’ll get a better deal on your Cherokee.

 

[zogg]

I leased a 1984 Ford Tempo (yep, sure did)….I had no problem with the lease, but if I wanted to buy the car at the end of the lease, the residual cost was higher than the same car on the used car lot by almost $2,000. So, I just gave it back. THe other issue was that I did not have a ride home. I asked the dealer and he called me a cab!!! A$$hole could have drove me home 3 miles!!!!!

 

[BTD07]

Everyones opinion is different when it comes to leasing, but the basis is, if you even THINK you might go over the mileage, DONT lease. When I bought my Charger they offered a lease as a 'lower monthly payment' option, but the condition was 11k miles per year. I traded that in after less than 2.5 years, and had over 39k miles on the clock. So by that, I would have already been 12k over the mileage, not to mention I couldnt get out of the lease for another 6 months. Good luck with whatever you choose.

 

[Ramnewbie]

Everyones opinion is different when it comes to leasing, but the basis is, if you even THINK you might go over the mileage, DONT lease. When I bought my Charger they offered a lease as a 'lower monthly payment' option, but the condition was 11k miles per year. I traded that in after less than 2.5 years, and had over 39k miles on the clock. So by that, I would have already been 12k over the mileage, not to mention I couldnt get out of the lease for another 6 months. Good luck with whatever you choose.

That's just it, life situations change. You may lease today thinking no way I'm going to put alot of miles on this vehicle then 6 months later find yourself driving a ton of miles.

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