On Being a Responsible Cosigner

[GFer]

This is a timely and relevant post for me.

I leased a car for daughter. She makes the payments. (Not always have they been on time, but I planned for this. Mostly they are, though.)

The lease is ending in May 2018. She assumes I am going to buy the vehicle and she will continue to make payments. Recently, she moved back in with me and she says now she can save to put between $5-7,000 down on the car. I don't see her saving this much. The miles are way over on the car because her boyfriend doesn't have a license and she carts him everywhere. I've never leased a car before, and so I just jumped in trying to help her. I set the insurance up under the umbrella of mine so it would be discounted and because the lease is in my name. However, she has her 'own' policy so that my responsibility is limited. I seriously do not want to be tied to this deal anymore. She had two minor accidents and two dui's since she has had the vehicle. This scares me to death. I also found out that she has let the boyfriend drive on several occasions. I just recently took a loan to replace my car (I bought an older car and there is no lien on it). I am selling my older car to my granddaughter. I'm afraid that I would owe a fortune if I didn't buy the car! If I knew what would be owed, I could plan for this better. I'm thinking we can get her an older car (somewhat of a beater) and I'll pay the dealer what I owe and she can pay me back.  I would rather do that than be tied to a loan for several years. Anyone have any input on the lease, the mileage, and previous damage?  The car was repaired both times she was in accidents and she's kept up the maintenance.

[iced]

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@GFer wrote:

This is a timely and relevant post for me.

I leased a car for daughter. She makes the payments. (Not always have they been on time, but I planned for this. Mostly they are, though.)

The lease is ending in May 2018. She assumes I am going to buy the vehicle and she will continue to make payments. Recently, she moved back in with me and she says now she can save to put between $5-7,000 down on the car. I don't see her saving this much. The miles are way over on the car because her boyfriend doesn't have a license and she carts him everywhere. I've never leased a car before, and so I just jumped in trying to help her. I set the insurance up under the umbrella of mine so it would be discounted and because the lease is in my name. However, she has her 'own' policy so that my responsibility is limited. I seriously do not want to be tied to this deal anymore. She had two minor accidents and two dui's since she has had the vehicle. This scares me to death. I also found out that she has let the boyfriend drive on several occasions. I just recently took a loan to replace my car (I bought an older car and there is no lien on it). I am selling my older car to my granddaughter. I'm afraid that I would owe a fortune if I didn't buy the car! If I knew what would be owed, I could plan for this better. I'm thinking we can get her an older car (somewhat of a beater) and I'll pay the dealer what I owe and she can pay me back.  I would rather do that than be tied to a loan for several years. Anyone have any input on the lease, the mileage, and previous damage?  The car was repaired both times she was in accidents and she's kept up the maintenance.

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This will depend on the manufacturer you got the lease with, but they can be pretty meticulous, especially if you do not plan on taking out another lease/finance. Expect a lease termination fee (usually in the hundreds of dollars), a penalty per mile over the agreed upon amount (though some will let you "buy" more miles at a discount up to 6 months prior to lease-end), and charges for wear and tear. If the tread is below a certain amount, you'll be paying for new tires, and any scratches or scuffs usually incur additional fees.

With my last lease at turn-in, I had to pay for 2 tires and a small scratch on the rear quarter panel - $2,100 total. I got the termination fee waived since I bought another car at the same time and I was about 10,000 under on miles so I got a $300 credit there, so my total lease turn-in cost was $1,800.

[Kree]

You can get the car inspected by the leasing company for free. They will give an estimate of cost for wear/tear stuff.  You do not need to have these things fixed by the dealer. Take their list and get it done cheaper elsewhere. Previous accidents do not matter if the've been repaired. Tires do not have to be original equipment, you can buy 40 dollar walmart specials (for most leases double check the wording usually just talks about thread and don't mention brands)

[iced]

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@Kree wrote:

You can get the car inspected by the leasing company for free. They will give an estimate of cost for wear/tear stuff.  You do not need to have these things fixed by the dealer. Take their list and get it done cheaper elsewhere. Previous accidents do not matter if the've been repaired. Tires do not have to be original equipment, you can buy 40 dollar walmart specials (for most leases double check the wording usually just talks about thread and don't mention brands)

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Be sure to check your lease regarding tires - some manufacturers will state a minimum rating of tire, but others will specify exactly what must be brought back (or better), and some will specify OEM. For example, don't turn in a leased BMW without runflats. Unless the guy inspecting it phoned it in that day, they'll catch it and you'll be billed for a new runflat (though, sometimes, the dealership will charge you less for a new tire than the local tire store).

[GFer]

Very helpful tips Iced & Kree!

Thank you very much!  I will look into this, as the car needs to be checked for tires. They won't do that for general maint. will they?

I wouldn't think so.

[Kree]

Oil changes and such?  Might if the check engine light or low oil light is on.