NY Times: Car Leases Can Be the Most Binding of Contracts

5105 Views 33 Replies 9 Participants Last post by Got volt?, Nov 22, 2016

kns

Discussion Starter · Nov 5, 2016

Must read for anyone planning to lease. NY Times has a tiered access policy. The first 10 articles each month are free: http://www.nytimes.com/2016/10/28/a...ses-can-be-the-most-binding-of-contracts.html

KNS

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bro1999

· #2 · Nov 5, 2016

Hmm..... I've flipped 4 leased vehicles the past 8 months, and I came out ahead several thousand. *Shrug*

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bro1999

· #7 · Nov 5, 2016

Bacardi said:
Oy, I'll just comment...So the gist of the story:

"After her doctor notified the California Department of Motor Vehicles last November that she should not be allowed to drive, and her license was subsequently suspended, leasing a Ford Edge at $347 a month became an unnecessary expense."

Girl lost her license and now FEELS their monthly payment is unnecessary...I could get a DUI, lose my license and feel the same! Mean old lender won't help poor license-less me...

Again, if you didn't lease, and financed the lender most likely wouldn't budge if you lost your license...If you truly develop a phobia of losing your license, do what lilninja would do, save up until you can afford it, buy it outright and deal with the depreciation in the event you sell due to losing your license...

Yeah, losing your license doesn't make a financed car payment go away either. Pretty poor article. IMO.

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bro1999

· #16 · Nov 6, 2016

Mister Dave said:
bro1999 said:

Hmm..... I've flipped 4 leased vehicles the past 8 months, and I came out ahead several thousand. *Shrug*

Click to expand...

bro1999 said:

Yeah, losing your license doesn't make a financed car payment go away either. Pretty poor article. IMO.

Click to expand...

Sometimes you game the system, sometimes the system games you, as brought out in the article. If you have the golden key for gaming the system that everyone can use, post a thread and get it stickied.

There's no secret voodoo magic sauce. Just negotiate your best deal, be aware of all the incentives, and that'll potentially put you in a position to flip a lease for positive money.....or at least break even on a future deal. I've posted my lease experiences in detail in several threads. www.leasehackr.com is a great source for lease details.

Also helps to build rapport with your local dealer. They will be willing to bend more if they know you can be a reliable source for future purchases. Using the CSI to your advantage is also another tool for negotiation.

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bro1999

· #19 · Nov 7, 2016

kns said:
Shush! They may read GM-Volt.com.

KNS

Toss in a proxy server for more free reading.

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bro1999

· #21 · Nov 14, 2016

Got volt? said:
Guess you guys and the author never heard of Swapalease.
Got rid of 2 leases in the past 8 months using Swapalease, first my 2014 volt so I could get a 2016 volt.
Then I got rid of my moms 2015 Prius for her last month, after she had a stroke last summer and can no longer drive.
Of course the caveat is you have to have a decent lease to begin with to make the payment attractive enough that someone would want to take it over. (No one is going to take over a $500/month payment on a volt)
You guys are lucky to have forward thinkers on here to show you there are other ways than what the doom and gloom naysayers are preaching.

I'm about to use the service (heard it is better than leasetrader) to swap my '17 Volt lease. I think I'll be able to find a MD'er (sorta sucks GMF only allows in-state lease transfers) willing to take over my '17 that has a $261 final monthly payment.

Just have to make sure my Bolt is delivered to be before I post my Volt!

EDIT: oh, if you can comment on your swapalease experiences, (interactions with interested parties, timeline from submitting the request for the transfer until it officially was processed, etc...) it'd be appreciated! Thanks!

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bro1999

· #23 · Nov 14, 2016 (Edited)

Got volt? said:
The volt was through us bank and they are kind of tough on the credit check for the interested party. My payment was $249/month and I had at least 8 people trying to take over the lease but ultimately only 1 was approved. Since Swapalease works directly with us bank the paperwork was very fast and all done online in less than 2 weeks.

The Prius on the other hand was through Toyota financial and they seem much more lenient on the credit check but everything had to be done by mail and took a total of five weeks.
The payment on the Prius was only $199/month and the first person that looked at it wanted it, was approved and took it.

Cool, thanks. Fortunately lease rates for the '17 Volt haven't really changed much since June, and I was able to cash in on a ton of incentives ($1k private offer, $500 farm bureau, $900 GM card bonus earnings). Even rolling $800 of negative equity into the lease, as well as full MD tax and fees, my MSRP $35k Siren Red Volt final monthly payment is still cheaper than even the pre-tax/fees national lease offer for a base Volt.

Sounds like I should go with the cheapest swapalease option, as I should have no problem finding a swapper.

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bro1999

· #25 · Nov 14, 2016

Got volt? said:
Yes at $261 per month you should have no problem, and it would be the top listing because they show the lowest price first!

How soon after your cars were listed did you get contacted by potential swappers? Did you have to chip any money in to sweeten the deal? Also, any of the swappers bring up the $395 termination fee as an issue? Sorry for peppering you with all these questions!

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bro1999

· #27 · Nov 15, 2016

Got volt? said:
I started getting responses almost immediately.
I did not have to chip in to sweeten the deal but I have seen other listings, with higher monthly payments, offer an incentive to effectively lower the remaining monthly payments.
It always comes down to how good of a deal you got when you initially signed your lease.
Low monthly payments with a decent amount of miles left will always make it easier

Whelp, my swapalease listing is now live! 2017 Siren Red LT for anyone interested that is in MD.
http://www.swapalease.com/lease/details/2017-Chevrolet-Volt.aspx?salid=999559

I will be out of my "ironclad binding lease contract" by next January.

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bro1999

· #29 · Nov 15, 2016 (Edited)

Bacardi said:
And you still have your license!!!

Yup!

I will have made 6 lease payments by the time the Volt is swapped. So 261 x 6 = $1,566.
I received a $2,300 check from Maryland as a EV rebate (no strings like the CA rebate has).
So I will have profited almost $800 when it's all said and done leasing a Volt for 7 months. Damn these horrible lease deals! Lol

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bro1999

· #32 · Nov 21, 2016

kns said:
Are you sure? It is my understanding is that if the person who takes over the lease fails to pay the monthly rental or for assessed damages at the end of the lease, then the leasing company will come knocking on your door pdq.

KNS

Nope, clean break for GM Financial leases transferred to another party. I hear some other leasing companies don't cut the string 100% on transfers though. I want to say Nissan comes to mind.

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