Question about a car lease?

Question

SO, my friends parents leased a car and they have about 3 years left on the lease. The problem is is that they are way over the mileage on the lease contract. They are supposed to be at about 26,000 miles right now, but instead they are at 30,000! For every 100 miles they are over they have to pay an extra $100 dollars, and by the time the lease is up they will probably owe about 10 grand! My question is, is there a way that you can stop the lease and just buy the car so they won't end up paying an extra $10,000 or more just to give it back to the dealer in 3 years?

Sorry I meant to type $20 per extra 100 miles. They drive a lot though they have a lakehouse about 200+ miles away from where they live and drive there two or more times a month.

Answer 1

The correct answer is YES, they can pay off the lease anytime they choose. Assumming they intend to keep the car, and that they don't have wads of cash laying around they must get the payoff figure. Usually the dealer must be in this loop. The leasing company usually tells you that only the dealer can give you the payoff. This step is by design. It gives the leasing dealler a shot at selling you another car. Also, the dealer can add an amount to the payoff to compensate him for funds lost when the lease is ended prematurely. This figure is negotiable. Once the payoff figure is established they need only to go to their bank and arrange a car loan to pay off the lease. $100 for 100 miles is nuts. The norm is 15 cents per mile over the allowed.

Answer 2

Something is wrong here. The numbers don't add up. How long of a lease was it? If they have three years left and they;ve already driven 26,000 miles, was this a four or five year lease with a 100,000 total mileage? Sounds like to high to be profitable for the bank. Also, $100 for every 100 miles over? Sounds wrong to me. That's $1.00 per mile over. It should be between 10 and 20 cents. Sure it's not $100 for every 1000 miles?

Answer 3

i doubt it, since contract is contract....and agreement has been made along with the terms of the lease, penalty of going over the milage allowance etc...otherwise whats the point of contract right? if you stop the lease then you could be breaching the contract and there might be a stiff penalty for that also, not 100% sure, don't take my word for it but I'm just saying in general rule of thumb when someone signs and agrees to a contract, then one must fulfill the agreed contract...anything less before honoring the contract there is penalty that follows. Now, you might want to go back to the dealership where the vehicle is purchased from and maybe you might be able to work something out...consumer can purchase "extended milage" at the time of purchase with additional rate...lease never works for me because I put too many miles, and plus, i like the feeling of taking the full ownership of my car...customize it to my taste etc...good luck

Answer 4

I Dont Think Its Gonna Be That Easy... UNLESS They Have The Whole Money To Pay Off The Car Right There And Then... But I Doubt It Huh? That Really Suck!

Answer 5

This is why leasing doesn't work for everybody. They usually figure 10k-15k miles per year. I drive 15k-20k per year. Needless to say, I buy rather than lease. $1/mile for excessive mileage seems excessively expensive to me.

Sorry, I probably am not qualified to give you the answer you're looking for.

Answer 6

In some cases you can but it depends on the terms of his contract. That issue should have been discussed at the signing or in the paperwork. If he doesn't remember or doesn't have the paperwork he needs to contact the dealer who he has the lease through.

Answer 7

They probably can't stop the lease, but they can buy the car once the lease is up.