Early Lease Trade with Negative Equity and Miles Overage

[Anonymous]

Hello,

I have a dilemma and a question about my current 36-month lease on a 2012 Honda Crosstour EX-L. I'm looking to trade the lease in. My payments are currently $600 a month (came with rolling over some negative equity from the previous finance) and the deal I worked out was for $609 for 15k miles a year on a 36-month lease of a 2015 Crosstour EX-L. I was told by the dealership that I had about $4,500 in negative equity that came with the new trade/lease, but with all of this included, it was a great deal.

Then I had a change of heart.  I really want to lower my payments to about $300/$400. I've been looking for ways to do this but there are roadblocks I'm hitting in three directions:

1) Do I ride out the lease (which is up in August of this year)and turn it back in after the lease is over? I am currently 5500 miles over my 36k miles limit and will probably be another 5-7k by August. I would have to pay between $1800-$2000 for miles overage for PLUS any wear and tear. I hear that's where they hit you for every little thing and I ould prefer to pay nothing.

2) Do I trade in the lease for a purchase? If I go for a lower price point and older vehicle, I would have to find financing that would cover the entire cost of the vehicle, up to its value. Most financiers only cover the value of the vehicle for a loan and won't cover any negative equity. So I would have to pay for most of the negative equity from the Crosstour, over the value of the future vehicle purchase.

3) Do I trade in the cureent lease for another lease? To lower my payments would mean I'd have to get a smaller/cheaper vehicle most likely, although I really like the crossover style and would prefer to stick with that. If I have to get another lease and can't lower my monthly payment price, I would at least like to get something that is a step up from the Honda, such as a BMW. I checked with the Honda dealership rep and they can have a BMW car at a sister location in their parent company, transferred to them and perform the purchase transaction. But does anyone know if Honda, or a sister dealership, can also perform LEASE trades and deals in addition to purchases, for a BMW or whatever their sister locations may have? I'm trying to get my ducks in a row or know what I'm facing before going back to the dealership. 

I would love to give the Honda dealership my business, but I also have to do what makes sense for me. They're not paying my monthly car note. Lol

Hope to get some good suggestions and advice as I'm a newbie and really need to get this figured out. Thanks!

[StartingOver10]

Do you have any cash to bring to the trade? I hope so - to mitigate some of your negative equity.

I am not a fan of leasing to start so remember that when reading the following advice:

1) Don't lease, especially since you are over your miles consistantly.

2) Buy your next vehicle.

Get your pre-approval from a CU first so you aren't taken to the cleaners when you trade. If you aren't careful, you will get a significate penalty when trading due to excess milage.

Can't you trade at another dealership than the one you went to that gave you this bad deal? I would look into that and not go back to the guy that put your back against the wall.

[sccredit]

You traded negative equity into your lease – that is not necessarily a bad thing in and of itself.  However, you leased a car with 15k miles a year AND THEN WENT OVER.  At this point your best bet is to pay the mileage charges and start your new purchase with a clean slate. 

You mention wanting cheaper and then you mention wanting a BMW, you need to figure out what you want there. 

[Anonymous]

some automakers are offering early lease termination and payment waiver of up to 6 months.   check which ones.   you have already taken the hit 

on neg  equity when you went with the lease.   if nothing else ride it out. in august you will be free of neg equity then you can decide what you want to do.  

another avenue is let the honda dealer know you want out soon but not at a major cost. if they want to sell you a car they will find a way to do it.  cross line buying within 

the same group is possible.  and let the dealer know that if you ride the lease out you will be doing some competive shopping before you repurchase.  right now you belong to 

them and they are the best option for change.  in Aug they loose you.