HELP!!! Dont know what to do.

[josean4786]

Ok so I leased a 2013 VW Passat SE in 01/13 for $290 a month. The agreement is 36,000 miles for 36 months. I am in month 8 and the car currently has 12,000 miles. It looks like I will exceed the limit of 36,000 way before the 36 months. I have perfect credit (I think), 730-740 across all bureaus, never had a late payment, 6 credit cards with a total CL of $20,500, about 10% overall credit utilization, $25,000 in student loans that are currently in deferement and won't start paying until May 2014. I make about $35,000 to $40,000 a year depending the hours I put in. I rent, and do not have a mortgage.

I called VW Credit just to ask a payoff quote, and they said $23,500. I have paid 8 months already (8 x $290 = $2,320 so far).

Should I choose to re-do everything again and finance the car so at the end I will be the OWNER of the car? or just finish the lease and wait and see how much will be worth 28 months later? PLEASE HELP!!!!

[StartingOver10]

IMO check out financing it now rather than waiting. If you multiply the overage you project for the lease term and mulitply it by the overage charge, I think you will see that it is worth it to refinance sooner rather than later.

From what I can see if you continue to drive it as you have been for the past 8 months you will end up with 54,000 more or less at the end of your lease which is approximately 18,000 miles over your allowance. Plus they are bound to charge other fees for condition (they always find something).

What do they charge per mile for overage in your lease contract?

[Creditaddict]

The biggest question is CAN you afford to make the finance payments considering they will be about:

$23,500 at 60 months at a 3.5% (I would think if you are in the 720 range you should be able to achieve this or better if you belong to a credit union?) = $428.00

That's a big change from your $290!

[StartingOver10]

Well, Creditaddict brings up an excellent point. Big difference in monthly payments.

[Kratos-TM]

You have anyone who you can carpool with sometimes? Unless you stop driving your car, the only option is to buy it now. But 428 is a month is a nice difference from 290....

I know it's against forum belief to say this..... but going 72 months on the loan would put you closer to what you're paying.....(please forgive me forum gurus, lol). 

I would only lease a weekend/pleasure car. I would never lease a daily driver......you think because you're close to work, that'll you'll be ok, but you never will be...

[lajntx]

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@Creditaddict wrote:

The biggest question is CAN you afford to make the finance payments considering they will be about:

$23,500 at 60 months at a 3.5% (I would think if you are in the 720 range you should be able to achieve this or better if you belong to a credit union?) = $428.00

That's a big change from your $290!

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Thats one way to look at it.

Or you can look at it in such a way that $138 more per month leaves you with a car that you can at least get something for it later when you trade it in rather than pay thousands and thousands in addition to handing them the keys at lease termination

[maiden_girl]

If you can afford the BUY price, look for lease buyout financing options now if you know you are going to exceed your loan agreement miles. The last thing you want is to pay for mile overages when you turn it in. It would be better to refinance now while the miles are low. If that's not something you're interested in then I would consider an early lease turn in and look at another car that you will buy retail right out the door.

[josean4786]

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@StartingOver10 wrote:

IMO check out financing it now rather than waiting. If you multiply the overage you project for the lease term and mulitply it by the overage charge, I think you will see that it is worth it to refinance sooner rather than later.

From what I can see if you continue to drive it as you have been for the past 8 months you will end up with 54,000 more or less at the end of your lease which is approximately 18,000 miles over your allowance. Plus they are bound to charge other fees for condition (they always find something).

What do they charge per mile for overage in your lease contract?

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sorry i've been away from the pc all day... but they charge .20 cents per mile.

[josean4786]

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@Creditaddict wrote:

The biggest question is CAN you afford to make the finance payments considering they will be about:

$23,500 at 60 months at a 3.5% (I would think if you are in the 720 range you should be able to achieve this or better if you belong to a credit union?) = $428.00

That's a big change from your $290!

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in answer to the question if I can afford it, Yes. That I want to make that jump from $290 to $428, not really. It would be something I will have to consider with my wife, since the ultimate goal is to become home owners. I am preparing my credit to have a mortgage. That's why I am asking before I make any big moves credit wise.

[RefiGuy]

why is that against "forum rules" to say?