What happens when you turn in your car on a lease with lower miles then 36k?

[fdub]

Got my car in July of last year and it only got 11k miles on it. More then likely, my car won't reach 36k miles on the lease in 2018(the time it's due). If I want to trade it in, would I get some type of compensation towards the next car when I trade it in?

 

[benzilla427]

http://www.edmunds.com/car-leasing/3-ways-to-turn-your-lease-into-cash.html

 

[fdub]

http://www.edmunds.com/car-leasing/3-ways-to-turn-your-lease-into-cash.html

This doesn't say much as far as the mileage being under the standard 36k miles, though.

 

[oh you mad]

Take a roadtrip

 

[rfx45]

http://www.edmunds.com/car-leasing/3-ways-to-turn-your-lease-into-cash.html

This doesn't say much as far as the mileage being under the standard 36k miles, though.

I think the link talks about the value of your car and the amount of mileage counts towards that.

Here's an exempt from that article that kind of summarizes it and residual value is somewhat tied to the mileage of the car, the lower the milaeage the higher the cars price would be. It might not be a huge difference in the end but who knows? If the difference is only going to be a couple of thousand miles then the difference might be minute but if it's 10k then there might be some extra value there?

Leasing companies are pretty good at predicting that residual value. But because of fluctuations in the marketplace, some cars might be worth more than the residual value. Since you have the right to buy the car at the end of the lease term, you can profit from the lease company's inaccurate lower estimate. If, on the other hand, the car is worth less than the residual amount, you can turn the car in without incurring an extra expense.

Brandon Park, general sales manager at Nissan of Downtown L.A., says that people who have leased through his dealership will usually return the car to it, even though they are free to go to any other dealership. Park's used-car manager appraises the returning vehicle to determine its current market value and lets the consumer know if it has any equity. Many customers use the equity as a down payment on their next car (either leased or purchased) and consequently find the monthly payments for that car are lower than they were paying for the leased car they just returned.

 

[dakid23]

My wife lease is up in 8 weeks. She signed up for 12K miles a year (2 year lease). She's about to turn that thing in with 9K miles overall

 

[2tonka]

Trading the car in will not give you any compensation if you are below the mileage.  By trading it in before your lease termination you are simply taking the market value of your car at the time of the trade in. 

Nor will you get compensation if you turned it in at the time the lease is up. 

 

[tay1]

Leased my car last november. Already at 14k miles

 

[wavy daddy]

Any of yall lease and then try to buy the car?

I dont know much about leasing, when im done wit my truck note i wana lease a escalade.

 

[tay1]

Any of yall lease and then try to buy the car?

I dont know much about leasing, when im done wit my truck note i wana lease a escalade.

Thats my plan. After the lease is up I'm just gonna buy and pay the rest

 

[wavy daddy]

Thats my plan. After the lease is up I'm just gonna buy and pay the rest

How does that work tho, and do you end up payin more going that route vs buying from the beginning?

 

[2tonka]

How does that work tho, and do you end up payin more going that route vs buying from the beginning?

You have to refinance with a bank or credit union if you decide to buy the car after the lease. 

As far as paying more it depends if you refinance the car for a short term.  I work at a dealership and sometimes people buy the car after a 3 yr lease and finance it for another 72 months.  So they committed to paying that note for 9 years.  So interest stacks up. 

When you lease there is something called an acquisition fee.  Its the fee to lease the car.  And then there is a money factor which is the interest rate.  This all goes into the amount of true cost of ownership.

 

[rfx45]

Usually when you lease there is a residual value assessed to the car when you return it.

If you decide to buy the car after your lease is up, it is based on that price.