masboy

I leased my TSX on Augst 2003. When I started to lease it, I never thought I would have a job 40 miles from my home, that means I spend at least 80 miles/day for going to work. Now my mileage is 18K already, which is not looking good based on the leasing agreement ( max 12K / yr ).

I lease this car for 3 yrs, so the max mileage I could spend is 36K. Now...if everything going alright in my work place, I might spend a lot more than 36K by the end of the leasing period. That means I will definitely exceed the max mileage, and I should pay around 15cent / mileage.

After calculating the mileage, I might end up paying another $5K

Please, I need some advices how to avoid paying $5K for nothing. Is it possible to 'BUY' this car now ? Which means change the agreement paper stuff. Any advice would be appreciated!!!


Thanks a bunch !

CGTSX2004

iTrader: (1)

Don't worry about it. Just trade it in at the end of the lease for another car. That way, you don't have to pay for the extra mileage. If you've already paid off your lease, then you owe nothing and the car will serve as neither positive nor negative equity (at least that's how I understand it works since we did that with an older Lexus ES300 on a 97 3.2TL).

gray_w_black

If you have no intention of purchasing the car or another Acura it could be an issue. If that's the case, you might try looking at http://www.leasetrader.com ...people basically sell their leases there. Its legit from what I can gather.

If you want to plan to purchase the car at the end of the lease or buy another Acura you have less to worry about (although I've never heard of them not charging for extra miles just because you're buying or leasing a new one). If you buy it...of course there's no problem cause its your car.

justinjsw

Do not listern to above reply^ Totally wrong answer.

justinjsw

Can you turn your lease into a buy right now? Yes you can. Call your leasing company, get your current payoff, go to your bank or credit union and apply for an auto loan amount based on what your payoff is right now. If you know you will be going way over in miles and you think you should finance your car don't wait till the end of the lease to do it, you will end up paying alot more when its all said and done.

What would happen if you did nothing? When your lease ends and its time for another car...the only way to avoid paying for the excess miles would be to buy/finance your TSX. Can you trade in the TSX? Yes you can. But remember your residual amount was based on 12K miles per yr for 3 yrs, which means the payoff will be alot higher then what your car will be worth because you have put alot more miles on the car over the 3 yr period bringing down the value.

Example: Payoff 16,000.00, value of car 13,000.00= -3,000.00 negative

Advice, do not wait till the end.

joerockt

Not even close to being correct...

If you give the car back to the dealer, the WILL charge you for the mileage. Most leases have a "buyout" price at the end of the lease (if it was a close-end lease, which most are). Look at the sales doc and you will find it on there somewhere. At the end of the lease, you can purchase the car for that price.

I did work a deal one time to lease another truck after I put 2000 over on my old one. They didnt charge me for the mileage. But it looks like your going to be WAY over, so I dont think that will happen.

joerockt

Better advice

Edit: Unless of course the car happens to be worth more then the buyout. Which happened to me with my Tacoma. I bought it for 10K after my lease, but it was still worth 13K according to kbb at the time.

JGLEX98

Agreed with, JOERCKT! A leased vehicle does have a buyout or payoff amnt. Don't wait until the end of your term. Make sure you check your lease contract for some other hidden fees and penalties. No matter how you look at it, you will be upside down with a lease, negative equity. Get out of the lease, you'll be better off.

CGTSX2004

iTrader: (1)

Well, I don't know, but my parents traded in an ES300 for a 3.2TL and Acura not only accepted the trade, but also offered to pay for the last two payments on the lease.

I was only giving my experience with the situation.

iamhomin

CGTSX2004,

Your avatar looks quite, bitten.

CGTSX2004

iTrader: (1)

I knew someone had it...couldn't remember who...

I'm still looking for another one to change it to, but I don't have photoshop here at work so I can't change an existing picture to fit the size requirement of the forum.

Got any suggestions?

DarkLava

I was in the same issue when I had my 2000 Honda Civic Si; I was about 4,000 miles over in miles near the end of the lease; so I just financed the car when the lease was up. Since I was buying the car, I didn't have to pay any over-mileage fees and I saved myself money in the long run. (Of course then it was stolen, but then I was paid more than what I think I could have sold it for, so all is well...)

samir786

1. you can sell your car at the end of the lease and give the bank the residual value and you will loose less than $5,000.

2. Leasetrader.com

3. Roll back the miles yes i know it's electronic...come to Miami, there are plenty that charge $300 to roll it back.

joerockt

Yea, but they may have only been over by a couple hundred miles or so. A dealer can accept that. Not several thousand though...

joerockt

1. Huh? Where are you getting 5K from?

3. Good way to go straight to jail.

DarkLava

Do not pass "GO", do not collect $200... Go directly to jail...

gfxdave99

Okay here is where you stand. (this coming from somebody who has leased 2 cars one of them being a tsx)

Start from the top. what is a lease?

The lease is you agreeing to pay the dealer for the depreciation of the car over the time you are in possesion of it. So the reason that they are strict on miles is more miles = less value of car when you give it back.

(of course if you trade it in with less they never give you shit )

So here are your options.

1. Use a service like Leasetrader.com or Swapalease.com to find someone in your area who is looking for a TSX lease and is okay with the milage restrictions. Keep in mind that you will have to pay a lease transfer fee which can be upwards of $500 with some leasing agencies. I do not know what it is with Honda Finance, but thats what it was with GMAC. If you find someone who is willing to take over the lease, you eat the transfer fee and your resposiblity to the car and the lease is absolved.

2. You buy the car now or later. If you buy the car now you will need to know what your current buyout is. Instead of having to sit on hold you can just go to https://www.ahm-ownerlink.com/login.asp?brand=acura and sign up for ownerslink and you can make your payments online as well as find out your current buyout. If you are going to buy the car your main decision is if you want higher payments now or to be able to pay off the agreed purchase price at the end of the lease. If you go over on your miles and you decide to buy the car from the finance company you will not be charged for going over. The only reason they will charge you over is because they cant sell the car for as much. But since you are buying it, no problem. The only negative to buying it now is that you will have a higher monthly payment.

3. You sell the car. Same thing with buying it now, you need to find out your lease buyout price. Being that you have made payments on the car for over a year, you are probably pretty close to what you can sell it for used for your buyout price. There are no extra charges if you sell the car, when they show you the 'buyout' price, that is the total amount of money you have to give them to walk away.

So what you need to do is to look at these three options, decide if you really want to keep this particular TSX, want a 2005 TSX, switch to a TL or get something else entirely.

masboy

thanks a lot everyone for the suggestions.

the buyout of this TSX after the end of the leasing is around $17K. Hmm...I think I might go w/ option #1, gfxdave99..

Thanks anyway...everyone. TIme to sleep -.-

mg7726

that is just SO wrong...

slo007

Not only they can't vote, but they won't obey the law either. Maybe Florida people shouldn't get to vote after all. I mean, they have another Bush in charge over there! What were they thinking??

dgkFL

Don't panic. You're not really paying $5k "for nothing." Your car will be worth less than you originally thought because you are putting more miles on it. It's going to cost you one way or another; the question is, can you do better than pay $.15/mile for going over. (You said "about $.15/mile." What does your lease say?)

Follow the different paths of advice from others here, and compare the total cost over three years, and also keep in mind at what point you will have to lay out the money.

1. Do nothing. At the end of the lease, see how many miles over you are, and calculate what that will cost you if you turn the car in. Compare the residual value to what you could sell the car for at that point. Whichever way costs you less you could do. Or, buy the car for the residual value, and sell it at some point in the future. (No way are you going to get a free ride just because you trade the car in on another Acura. Someone is going to pay for those extra miles, and it's likely to be you!)

2. Buy the car now, and finance it. Frankly, if you got a good lease deal (good implicit interest rate), I have trouble believing that this will be a good deal for you, but you need to actually do the math. The leasing company is going to want to have made their profit, so I'm sure the terms of the lease on an early buy out are not likely to be in your favor. Assuming you want to finance the car, you may actually be paying a higher interest rate, and your monthly payments will be higher. And don't forget, you are still putting those miles on the car, so it's going to drop in value over time as a result.

3. Sell the lease as suggested; but this still has a transaction cost, and you are going to suffer some kind of hit because you are asking someone to buy a lease that only has 18K and 2 years left on it. That won't be free. But again, do a calculation on what this is likely to cost you.

I think, the reality is, no matter what you do, this is going to cost you. Especially since you don't seem 100% confident that you are going to keep this job, why don't you consider doing this: Keep the lease as is, and put aside $60/week from your earnings (400 miles @ $.15/mile) in a separate bank account. Consider it a commuting cost for the job. (When you took the job, I hope you factored in the cost of the extra travel into your considerations....) At the end of the lease, you'll have the money to pay for the extra mileage, or to use as a down payment on buying the car.

David

P.S. Not everyone in Florida is a crook.
Not everyone in Florida doesn't know how to vote.

masboy

Thanks David for taking your time to explain everything.

Anyway, anybody know OR had an experience with "lease transfer" willing to explain to me how the procedure is ? Like, how much money you will spend & get from 'sell the lease' ? And how long the process gonna take ?

Thanks a lot everybody !