topic Re: END OF AUTO LEASE in Auto Loans

END OF AUTO LEASE

Anonymous — Tue, 26 May 2009 16:50:14 GMT

HI, all,

I need some advise in terms of my auto lease. I leased Toyota in 2005 for 48 mths, and my lease is going to be over at the end of this July.My FICOs are in the mid 600, but I have a lot of late car payments showing up on my report. Also my mileage is over the limit and I'm paying off some late fees and miscellaneous charges, like taxes, etc., which amount to $800. What do you recommend to do? Finance another loan with Toyota, so maybe they will be more understanding, since I already has a loan with them? How can I finish this lease if not for a profit, but to be even and not owe anything? Thank you.

Re: END OF AUTO LEASE

Anonymous — Tue, 26 May 2009 22:56:09 GMT

The following is not a personal attack but is based on the information you have given.

1- You need to call Toyota finance and find if they would lease you another car or finance you on a new/used one.

2- You need to find out exactly how much end of lease you are going to owe, ie: over-mileage, wear and tear, turn in fees, late fees settlement.

3- You need to start saving UP a down payment.

Things have changed since 2005 and you may find yourself in the position of not having a vehicle at the end of this lease as you are not eligible for financing or leasing a car.

You need to save mad cash. You need to find exactly what you owe.

Since your mileage is over you are not driving a car but driving a taxi. At 20 cents a miles you are wracking up quite a lot of additional costs.

You need to pull your credit report and see what it says.

You need to consider getting out of your lease right now and into a new car/lease (maybe not Toyota maybe Ford or something). Getting out of your lease now may stop the bleeding of money on overmileage.

Re: END OF AUTO LEASE

aquatic1 — Wed, 27 May 2009 18:05:35 GMT

I agree 100%. I am receiving a eye opener as my lease end next month. Went to the dealership and tried to get financing for another....NOPE!!!! So at the end of my lease and after I pay the remaining amount due as far as over-limits and wear and tear....I will be busing it as I try to repair my decimated credit files. If at all possible PLEASE prepare yourself. My credit reapir isn't going as fast as I needed it to go!

Good luck

Re: END OF AUTO LEASE

Anonymous — Mon, 06 Aug 2012 03:00:01 GMT

How did your situation work out? I am in a similar situation. I have a 2010 Lexus RX 350 that I leased through Toyota Financial Credit--my credit situation has changed dramtically since then--credits scores now in the 520s--my lease is due soon. I am severely over on miles--basically doubled them. I also bought my Lexus ES from the dealership--so the dealer knows me. I have been prettty steady on my car payments but mortgage has fallen behind as I have been supporting multiple households as other members of my family have fallen on hard times. I make more than enough money to support my home and lifestyle and will be back on track by the end of the year. I reached out to the dealer let them know that I had basically doubled my lease miles--they gave me three options

1. put down 5500 finance the car--no warranty

2. put down 12k walk away from the car and also pay for damages

3. put down 5500 got into another 3 year 15k miles a year lease--a 710 a month payment

I need a car, and can come up with the 5500. The dealer doesn't know of my changed credit score when they made this offer--but do know why I went so over on the miles was because of two deaths in the family in Atlanta, GA--I leave in NJ.

Any advice?

Re: END OF AUTO LEASE

MarineVietVet — Mon, 06 Aug 2012 06:11:37 GMT

@Anonymous wrote:
How did your situation work out? I am in a similar situation. I have a 2010 Lexus RX 350 that I leased through Toyota Financial Credit--my credit situation has changed dramtically since then--credits scores now in the 520s--my lease is due soon. I am severely over on miles--basically doubled them. I also bought my Lexus ES from the dealership--so the dealer knows me. I have been prettty steady on my car payments but mortgage has fallen behind as I have been supporting multiple households as other members of my family have fallen on hard times. I make more than enough money to support my home and lifestyle and will be back on track by the end of the year. I reached out to the dealer let them know that I had basically doubled my lease miles--they gave me three options

1. put down 5500 finance the car--no warranty
2. put down 12k walk away from the car and also pay for damages
3. put down 5500 got into another 3 year 15k miles a year lease--a 710 a month payment

I need a car, and can come up with the 5500. The dealer doesn't know of my changed credit score when they made this offer--but do know why I went so over on the miles was because of two deaths in the family in Atlanta, GA--I leave in NJ.

Any advice?

Hello and welcome.

Just to let you know that the original poster has not been back online since 5/2009.

Re: END OF AUTO LEASE

Cellice — Mon, 06 Aug 2012 20:02:49 GMT

@Anonymous wrote:
How did your situation work out? I am in a similar situation. I have a 2010 Lexus RX 350 that I leased through Toyota Financial Credit--my credit situation has changed dramtically since then--credits scores now in the 520s--my lease is due soon. I am severely over on miles--basically doubled them. I also bought my Lexus ES from the dealership--so the dealer knows me. I have been prettty steady on my car payments but mortgage has fallen behind as I have been supporting multiple households as other members of my family have fallen on hard times. I make more than enough money to support my home and lifestyle and will be back on track by the end of the year. I reached out to the dealer let them know that I had basically doubled my lease miles--they gave me three options

1. put down 5500 finance the car--no warranty
2. put down 12k walk away from the car and also pay for damages
3. put down 5500 got into another 3 year 15k miles a year lease--a 710 a month payment

I need a car, and can come up with the 5500. The dealer doesn't know of my changed credit score when they made this offer--but do know why I went so over on the miles was because of two deaths in the family in Atlanta, GA--I leave in NJ.

Any advice?

Heidi, you will not likely qualify for another lease with your current score. This is not a bad thing because you obviously do not do well with theI mileage limit. How long do you have left on the lease? Have you checked in the trade in value compared to the payoff? If you don't have a huge negative then trade it in and buy a new car with 5000 down. Your interest will be high but you can refinance once you have fixed your credit.

You can also buy the car at the end of the lease for whatever the residual is. That is likely your best option

Re: END OF AUTO LEASE

Anonymous — Tue, 07 Aug 2012 01:36:02 GMT

Thanks great advice. My lease expires Aug. 15th. I am turning the car on the Sat. Aug 18th. The payoff amount is 26k. I would prefer to get into a new car, but know that might not be feasible. Those three options were the ones the dealer gave me when I called to let him know that I was severely over on the lease. I am going to call tmrw to see if can work something out for purchase not for lease. I know that they are focused on putting me in a new lease so that I will have to walk back through their doors in three years and financing a car does not do that--so hoping that the warm and fuzzies that they are feeling toward me and working with might go away -- or does that even matter?? I am not used to being in such a horrible financial situation. Will a solid income help make up for my poor credits score (120k per year) I am hoping that by learning more I can really get back on track.

Thanks again and I'll keep u posted.

Re: END OF AUTO LEASE

Cellice — Tue, 07 Aug 2012 02:22:40 GMT

@Anonymous wrote:
Thanks great advice. My lease expires Aug. 15th. I am turning the car on the Sat. Aug 18th. The payoff amount is 26k. I would prefer to get into a new car, but know that might not be feasible. Those three options were the ones the dealer gave me when I called to let him know that I was severely over on the lease. I am going to call tmrw to see if can work something out for purchase not for lease. I know that they are focused on putting me in a new lease so that I will have to walk back through their doors in three years and financing a car does not do that--so hoping that the warm and fuzzies that they are feeling toward me and working with might go away -- or does that even matter?? I am not used to being in such a horrible financial situation. Will a solid income help make up for my poor credits score (120k per year) I am hoping that by learning more I can really get back on track.

Thanks again and I'll keep u posted.

Hold On!

I understand you are feeling down because of your financial situation. However, do NOT put your financial future in the hands of the dealership. They will only rip you off.

The payoff amount you listed. Is that what it lists when you log into your Lexus Finance account?

Also, give me some information on your car. I just looked and a BASE Lexus Rx350 FWD with no options and 60k miles has a trade in value of 25k.

Is the car FWD or AWD?

Does it have MP3 Multi Disc?

Does it have a navigation?

Does it have read seat entertainment?

Does it have Mark Levinson Sound?

Does it have heated seats?

Does it have a sunroof?

Does it have Bi-HID headlights?

Does it have keyless start?

Does it have Luxury Package?

Does it have Preferred Package?

Does it have Premium Package?

Does it have Sport Package?

How many miles?

The car might be worth more than payoff so you might be better of trading in the car instead of just turning it in. Lexus also provide $1000 if you buy another Lexus. 2012 models are being cleared out so you might be able to find them at a good price right now too. You will not get approved for leasing and financing will be at a high rate. Your income will help especially if you have a nice downpayment.

If at all possible try and improve your score some by the time you try and finance. Clean up some negatives! Hopefully you have no auto negatives so your auto enhance score more not be as low.

Re: END OF AUTO LEASE

Anonymous — Wed, 08 Aug 2012 01:47:09 GMT

Glad I read your post before I spoke to the dealership. I actually ended up not being able to call because I was too busy-- worked out. What is an auto enhance score? I have been pretty consistent with lease payments-- 2 30+ days late in the three years I have had the car and 2 30+ days past due on my other car loan from JP Morgan in the 4 years that I have had it. That car is nearly paid off and I bought it from the same Lexus dealership where I got the lease for the RX that I will be turning in 8/18.

My RX is AwD premium package w/ nav in fair condition -- it has 95k miles on it on a 45k mile 3 year lease -- checked the Kelley blue book-- excellent condition is 26k, fair is 21k, and poor is 16k. My monthly lease payment is $696.

The 26k I noted in my earlier post is what
shows as the payoff amount. I am not even considering a lease any more. My credit score took a nose dive over the past year and a half because I felt obligated to help my family financially and as a result I am 6 months behind on my mortgage-- I spoke with my lender JP Morgan and they were willing to work with me-- but that will not be reflected in my credit report-- I set up a payment plan where I pay little more each month-- I will not be square with them until May of 2013 on this
Plan but they told me it will continue to report as late until that time.

Re: END OF AUTO LEASE

Anonymous — Wed, 08 Aug 2012 01:52:38 GMT

Btw I plan to put 4k down on the new ride as opposed to 5500 suggested by the dealer. I am now debating whether I just want to keep my current car spread the payments over 5 years or walk away from it entirely and get into something new.

Re: END OF AUTO LEASE

Cellice — Wed, 08 Aug 2012 02:10:50 GMT

Check out THIS link for information on the Fico Auto Enhanced Score.

So, If you are paying 20 cents for every mile over it is going to cost you like $8000 when you turn in the car. Ouch

If the trade in for your car is 26K for excellent then if you are buying the car at that price it is actually a decent deal. That is well below retail. I would recommend securing financing with your bank or credit union ahead of time. Your income should be able to get you approval. Do not even go through the dealership. They will try to get more money out of you! You should be able to do everything over the phone with Lexus Financial if you intend to just buy the car. I bought out a lease before and I never set foot inside of the dealership.

You dont need a downpayment to finance the car unless the bank wants it for credit approval. Try to put $0 down and put that money towards fixing your morgage situation. Ideally, you'll want to fix your credit and then refinance or buy a new car next year when your credit is better.

Re: END OF AUTO LEASE

Anonymous — Wed, 08 Aug 2012 23:42:11 GMT

Great link--good info. I am not a member of a credit union, though I am looking into joining one soon. I am going to check with my bank about securing the payoff amount. I have been with them for 12 years and my checks are direct deposited there so hopefully that will help.

You have been very helpful. Many thanks, I will follow-up and let you know how things turn out. Any tips for getting a good rate or for securing financing in my situation? Either way I will follow-up.

Re: END OF AUTO LEASE

Cellice — Thu, 09 Aug 2012 04:38:36 GMT

@Anonymous wrote:
Great link--good info. I am not a member of a credit union, though I am looking into joining one soon. I am going to check with my bank about securing the payoff amount. I have been with them for 12 years and my checks are direct deposited there so hopefully that will help.

You have been very helpful. Many thanks, I will follow-up and let you know how things turn out. Any tips for getting a good rate or for securing financing in my situation? Either way I will follow-up.

You are not going to get a good rate and you dont have much time to do repairing if you are buying in the next few weeks. Your biggest hurdle will be getting approved. You might need a co-signer. Suck it up for a year, visit the credit rebuilding subforum, and then refinance in a year.